vmworld 2013: vmware customer journey - where are we with itaas and ops transformation in the cloud...
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VMware Customer Journey - Where Are We with
ITaaS and Ops Transformation in the Cloud Era
Mike Hulme, VMware
Kurt Milne, VMware
OPT5656
#OPT5656
2 2
Agenda
Significant Industry Movement in 2013
IT as a Service profile
Operations Transformation – Key Success Factors
Journey Recommendations
3 3
VMware’s Customers are on a Journey
Abstract. Pool. Automate. Empower.
CapEx Savings
thru
Consolidation
OpEx Savings
thru
Automation
Game Change
thru
IT as a Service
IT Production Business Production IT as a Service
Phase III
Phase II
Phase I
Infrastructure Focus Application Focus Agility Focus
4 4
Driving a Path to IT as a Service
IT Production Business Production IT as a Service
Phase III
Phase II
Phase I Initiatives
• On-Demand, self-service
• Automated provisioning
• Service profile scaling
Benefits
• CapEx and OpEx
• Agility
• Increased innovation
• Impact Business outcome
Initiatives
• Server consolidation
• Test and development
Benefits
• CapEx
Initiatives
• Business critical applications
• Automated management
• Security and compliance
• Availability
Benefits
• CapEx and OpEx
• Performance
• Service quality
5 5
Continued Progression of Server Virtualization
Abstract. Pool. Automate. Empower.
CapEx Savings
thru
Consolidation
OpEx Saving
thru
Automation
Game Change
thru
IT as a Service
IT Production Business Production IT as a Service
Phase III
Phase II
Phase I
Consistent
Target
80% 2013:
68%*
Source: IDC Research
6 6
Where is the Growth Coming From?
79% Today In 2 Years
30% Decrease
40% Decrease
Virtualized X86
Hybrid Cloud
Legacy Environments
Physical X86
7 7
Continued Progression of Server Virtualization
Abstract. Pool.
CapEx Savings
thru
Consolidation
IT Production
Phase I
Automate. Empower.
OpEx Savings
thru
Automation
Game Change
thru
IT as a Service
Business Production IT as a Service
Phase III
Phase II
75% of the market
8 8
Momentum to IT as a Service
Emerging Value Drivers Traditional Value Drivers
Business Critical App
Virtualization – Now 65% Cloud model for
self-service, on-demand
ROI tied to Journey Stage
181% 192%
229%
Cost savings
and consolidation
Innovation and
revenue growth
Impact on budget
and financial model
9 9
Major Areas for ROI
Major Areas for ROI
55%
54%
51%
44%
41%
33%
27%
27%
23%
Consolidation driven savings
Less time provisioning resources and services
Fewer service outages (better uptime)
Less time managing and maintaining
More standardization
Faster response to service outages
Able to “say yes” to more biz requests
Less time supporting
More use of automation
N = 802
10 10
What are ITaaS Organizations Doing Differently?
11 11
Unique qualities of IT as a Service Orgs
Where have they invested?
• Highly virtualized
• Self-service, on-demand, automation
• Combined technology change with process change
Leveraged the virtual environment for a new, service-oriented IT model
How have they benefitted?
• Universal improvement in IT and business metrics
• Improved relationship with the line of business
• Economic model committed to Innovation
• Greater ability to impact business goals
Evolved from “Budget-minded” to “Investment-minded”
12 12
Infrastructure Services Requested Via Self Service On-demand Service Portal
ITaaS – More Self Service On-Demand via Service Portal
4%
13%
17%
IT Production Business Production IT as a Service
4X
13 13
Deeper Investment in Automation
IT Production Business Production IT as a Service
Degree of Provisioning Automation of Services Requested
Via Self-service, On-demand Service Portal
3X LEVEL OF
AUTOMATION
67%
14 14
ITaaS Translates to Massive Gains in Efficiency
Abstract. Pool. Automate. Empower.
IT Production Business Production IT as a Service
Phase III
Phase II
Phase I
119.8
169.0
362.4
ITaaS organizations managing 3X the VMs of IT
Production organizations
Automation, self-service, on-demand drive gains
15 15
Economic Benefits of ITaaS
72%
23%
26%
47%
16 16
Run Budget vs. Innovation
65%
42%
58%
50%
50%
Goal
(2 years)
Today
Two Years Ago
30%
70%
Gartner: 70% of IT budgets
consumed by “Run the
Business” costs, namely IT
operational and capital
expenses,
30% of IT budgets invested in
new applications or services that
advance business goals for
growth or new revenue.
Industry Average Comparison
35% Budget for innovation
Budget for existing operations
17 17
IT as a Service Advantage: Increased Budget for Innovation
42%
58%
50%
50%
Goal
(2 years)
Today
Two Years Ago
33% ITaaS organizations have already
achieved innovation budget target.
65%
35% Budget for innovation
Budget for existing operations
18 18
5%
8%
IT Production IT as a Service
ITaaS Advantage: Budget as a Percent of Revenue
60%
Difference
ITaaS organizations secure
greater budget as a
percent of revenue
Greater connection
between investment in IT
and return for the business
19 19
Impact of the Software-Defined Datacenter
20 20
Architectural Foundation for IT as a Service
Software-Defined Data Center • All infrastructure virtualized
• Delivered as a service
• Automated through software
21 21
VMware’s Customers are on a Journey
Abstract. Pool. Automate. Empower.
CapEx Savings
thru
Consolidation
OpEx Savings
thru
Automation
Game Change
thru
IT as a Service
IT Production Business Production IT as a Service
Phase III
Phase II
Phase I
Software Defined Datacenter
22 22
How is the market evolving?
77%
Customers extending
virtual environment to
networking and storage
60% Customers with datacenter
strategy based on x86
hardware with control in
software
23 23
Strategic Initiatives Linked to SDDC
N = 1028
How is the market prioritizing
Software-Defined Data Center implementation?
Priority 1
Priority 2
Priority 3
Achieve Compute
Virtualization Target
Virtualize Storage
Resources
Virtualize Network
Resources
24 24
Operations Transformation – Key Success Factors
25 25
Like our customers - VMware IT is on a Journey
Abstract. Pool. Automate. Empower.
CapEx Savings
thru
Consolidation
OpEx Saving
thru
Automation
Game Change
thru
IT as a Service
IT Production Business Production IT as a Service
Phase III
Infrastructure Focus Application Focus Agility Focus
Phase II Phase I
2012 99% Virtual
40% SaaS
Private Cloud SDDC
2006 80% Virtual
Best of breed apps
2008 99% Virtual
Best of breed apps
1st SaaS
2010 99% Virtual
20% SaaS
Virtual+ “Cloud”
26 26
“Project OneCloud” - Explosive Tenant Growth
Corp IT DevOps = Tenant #4
Very low cost per VM
“Cloud first” policy in IT
AppOps
SDLC
provisioning
Hands
On Labs Hol.vmware.com
Services &
Support Customer environment
reproduction
Sales
Engineering
Demo Pods
VMworld 2013
Management
BU Field
Testing
TechSummit
2013
Tech Ops
Mini R&D
Cloud
Training
LiveFire
Private Cloud IaaS Software Defined Data Center
June
2012
Jan.
2013
Today End
2013
2014
Launched
Built on
vCloud Suite
4 tenants
10,000 VMs
9 tenants
38,000 VMs
12 tenants
50,000 VMs
More
services
Timeline
27 27
VMware - Automated SDLC Provisioning on Private Cloud
Service
Definition
Blueprint
Policy POC1 POC2 Catalog
Provision QA Staging Release
40 work weeks effort – Per Release…
20 work weeks effort – Once!
Run Book
36 hours
Service Request
4 weeks
It takes less time/effort to convert the runbook into blueprints…
…than it takes to “run” the runbook...
Virtual Server
Virtual Data Center Service Request
Catalog
VMware@VMware
Provisioning
Oracle ERP
with Portals
28 28
Results
Phase 1 Phase 2
Cycle Time Hours per SDLC instance
172
36
Today
Phase 1 Phase 2
Virtual Machines Transitioned To Private Cloud
Phase 1 Phase 2
AppOps Team # of Engineers
Goal – 4000
2,800
2,200
Goal - 5
27
22
Reduced provision time
95% (4 weeks to 36 hours)
Improved productivity
of 600 developers
20%
Reduced
IT operations costs
$1.5M /year
Able to say
“yes” to developer requests
Reduced the cost of
a VM/month
80% ($133 to $20)
Reduced
infrastructure costs
$4.5M/year
672 hours (4 weeks)
Goal – 24 hours
Today Today
29 29
Results
Phase 1 Phase 2
Cycle Time Hours per SDLC instance
172
36
Today
Phase 1 Phase 2
Virtual Machines Transitioned To Private Cloud
Phase 1 Phase 2
AppOps Team # of Engineers
Goal – 4000
2,800
2,200
Goal - 5
27
22
Reduced provision time
95% (4 weeks to 36 hours)
Improved productivity
of 600 developers
20%
Reduced
IT operations costs
$1.5M /year
Able to say
“yes” to developer requests
Reduced the cost of
a VM/month
80% ($133 to $20)
Reduced
infrastructure costs
$4.5M/year
672 hours (4 weeks)
Goal – 24 hours
Today Today
Bottom Line
Agility is Self-Sustaining
30 30
Private Cloud IaaS Software Defined Data Center
New Operating Model
IT is now a:
Cloud Provider
Cloud Consumer
Service Broker
Three-tier Ops Model:
Different Tenants
Different Application Ops
Different Cloud Automation
and Management
Application Ops (Provided by Tenant)
Provisioning. Monitoring. Configuring.
Upgrades. Maintenance.
Infrastructure Ops (Provided by OneCloud infrastructure team)
Network, storage, compute availability. Deliver to SLA.
Tenant/Service Ops (Provided by OneCloud service team)
Common service definitions, SLA, tenant onboarding, tenant management
Private Cloud IaaS Software Defined Data Center
31 31
Operations Transformation in the Cloud Era
What Changes do I Make?
Automation
New App Architectures
Resource Scaling
Service Orientation
Self-Service On-Demand Provisioning
Pe
op
le
Pro
ces
s
Org
an
iza
tio
n
Go
ve
rnan
ce
Fin
an
cia
l M
an
ag
em
en
t
New Capabilities Driving
Ops Transformation
32 32
New Capabilities Driving Ops Transformation
Source - VMware 2013 CloudOps Transformation Benchmark
Q: To what extent has each new cloud capability you have implemented
been the reason you changed your IT operations?
Forcing Functions
51%
56%
42%
36%
45%
42%
39%
40%
35%
28%
37%
30%
41%
43%
34%
37%
39%
37%
36%
35%
Cloud native applications
Automation
Horizontal scaling
Hybrid environments
Vertical resource scaling
Service orientation
On-demand provisioning
Self service
Policy driven
Service broker
Substantial Impact Some Impact
N = 178
33 33
Most Common Ops Transformation Points
Source - VMware 2013 CloudOps Transformation Benchmark
Percentage of Respondents That
Have Made These Changes
53%
43%
38%
38%
35%
34%
33%
33%
33%
32%
Modified existing roles
Combined existing roles into new role
Increased transparency of IT prices
BU's agree to standard services
Standardizing configurations and processes
Proactive mgmt of changing conditions
Certify new service before adding to catalog
Created a single core cloud team
Price to enable comparison w/ external service
Marked up costs on top of per-use service N = 178
Average # of Transformation points = 6.2
Pillar
People
People
Financial Management
Governance
Process
Process
Process
Org Structure
Financial Management
Financial Management
34 34
Role Shift
60% 75%
Server Virtualization
admins will take on
network and storage
admin responsibilities
IT admins will have
to broaden their
expertise to include
computer, storage
and network
Source - VMware 2013 CloudOps Transformation Benchmark Source – Insights from VMware 2013 IT as a Service Journey Survey
9%
28%
29%
43%
53%
Added New Roles
Ops Roles - MoreProgramming Skills
Ops Roles - MoreAbstracted
Combined Exisiting Roles
Modified Existing Roles
Q: What changes to roles and responsibilities
were made with new cloud capabilities?
Server
Storage Network
N = 178
35 35
Org Changes
24%
29%
30%
30%
33%
Group to deploy/manage cloud environment
Pulled resources from functional groups
New customer-facing team
Created multiple new cloud teams
Created single core cloud team
Source - VMware 2013 CloudOps Transformation Benchmark
Q: What changes to organizational structure were implemented
when deploying new cloud capabilities?
N = 178
36 36
Return on Operations Transformation Investment
1.2
1.5
2.2
3.1
1.00
1.50
2.00
2.50
3.00
3.50
4.00
5 or Less 6 to 10 11 to 15 16 or more
Overa
ll R
OI
(Avg
1.6
2)
Number Transformation Areas (Avg 6.2)
ROI by Number of Ops Transformation Points
Confidential
Total possible = 25.
N = 178
Source - VMware 2013 CloudOps Transformation Benchmark
37 37
Source - VMware 2013 CloudOps Transformation Benchmark
Key Finding – Ops Transformation Multiplies Technology Investment
Cost: Temporary test/dev workloads, High availability production workloads
Quality: MTBF, MTTR
Control: Number of IT processes that are standardized and predictable
Agility: Time to get from a new idea to a new capability
Agility: Time to provision a new test/dev environment
Number of automated IT processes
Benefit
Requires Ops
Transformation
Requires
Architecture
Transformation
Ops or
Technology
38 38
# VMs with BC/DR
% of SLAs Met by IT
# of Incidents
Time - Provision Additional Capacity
# VMs With Standard Config
Ops effort - Deploy/Maintain VMs
$$ per GP Instance
Business Satisfaction with IT
# IT Processes Automated
84%
78%
67%
Benefits
IT Responsiveness to Requests
Dev effort – Deploy/Maintain VMs
IT Prod
69% Time Dedicated to BC/DR
84%
81%
72%
63%
Biz Prod
% With Improvement Degree of Improvement
38%
41%
41%
43%
Efficiency
86%
82%
63%
78%
$$ per High Trust Instance 68% 73% 34% 79%
$$ Generated by LOB
# Workloads Auto Provisioned
75%
67%
88%
42%
52%
37%
39%
54%
26%
47%
70%
57%
21%
37%
84%
77%
90%
53%
71%
ITaaS
Downtime of Tier 1 apps
38%
71%
69%
55%
52%
72%
62%
76%
63%
60%
54%
75%
72%
83%
73%
79%
65%
74%
32%
56%
61%
42%
35%
41% Control
Agility
85%
39 39
Net Ops Transformation Recommendations
IT Production Business Production IT as a Service
Phase III Phase II Phase I
Infrastructure Focus Application Focus Agility Focus
Shift thinking
– From focus on VM
- To Application
• Provisioning speed
• Service quality
• Ops automation
Shift thinking
- From focus on service
quality
- To business outcomes
• Un-bound process
• Process automation
• Invest in Agility
Shift thinking
– From focus on
custom, work after
service request
- To standard service,
before service request
• Self-service, on
demand ITSM
• Free up resources
for innovation
• Say “Yes” to more
business requests
40 40
IT as a Service - Additional Resources
OPT5489 – Pivot from Public Cloud to Private Cloud with vCloud
and Puppet
Mon 5:00 – 6:00p
OPT5194 – Moving Enterprise Application Dev/Test to VMware’s
Private Cloud - Operations Transformation
REPEAT Wed 3:30 – 4:30p
OPT1002-GD – Group Discussion same topic
Wed 11:00 -12:00p
OPT5705 – Panel - Balancing Agility with Standardization
Tues 2:30 – 3:30p
OPT5315 – Panel - Transform IT to a Service Broker (With VMware
VP Infrastructure and Ops)
Wed 11:30 – 12:30p
41
Other VMware Activities Related to This Session
Group Discussions:
OPT1003-GD
Cloud Lifecycle Services with Rohan Kalra
OPT5656
THANK YOU
VMware Customer Journey - Where Are We with
ITaaS and Ops Transformation in the Cloud Era
Mike Hulme, VMware
Kurt Milne, VMware
OPT5656
#OPT5656
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