+hpe right mix white paper

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Business white paper

The Right Mix: Transforming to aHybrid IT InfrastructureHow to define, power, and optimize your right mix of IT


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The Right Mix: Transforming to a Hybrid IT Infrastructure

Table of contents

3 Introduction

3 Competitive challenges businesses face today

4 External forces

5 Internal forces

6 Business consequences of doing nothing

7 The solution to today’s challenges: an open, hybrid infrastructure strategy

8 Define your right mix

9 Power your right mix

10 Optimize your right mix

11 Hybrid Infrastructure Use Cases

13 Conclusions


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A hybrid infrastructure strategy needs to

define your right mix of cutting edge

infrastructure, power your right mix with

the best internal and external resources

and optimize your right mix with leading

management tools to ensure success

every step of the way.

Introduction

Enterprises move at a faster pace today than ever before. The challenges mid to large global

enterprises and service providers face are compounded by the ease of entry into markets

by new players that can move at a faster pace than entrenched companies. To combat thischallenge, businesses need to respond faster to changing market conditions. Yet many times,

it takes too long to get access to needed IT services, which delays the development and release

of critical, innovative applications. IT departments are typically not providing technology

leadership to support business innovation. Shadow IT continues to be an issue, and IT costs are

out of alignment with the business.

To accelerate their businesses, enterprises are seeking to implement the right mix of cloud and

traditional IT infrastructure, thereby speeding innovation and growth. A solution that focuses on

a hybrid infrastructure design is the top choice of many mid to large enterprises.

The main advantage of implementing a hybrid infrastructure solution is the ability to provision

infrastructure and applications in minutes, which increases agility and scalability. Benefits

include increased IT productivity, reduced costs, and a further shift of funding from a capital

expense to an operating expense model.

Although the advantages and benefits of cloud are well-known, the challenge of weaving it into

an existing IT environment is not always easy. Minefields can be waiting at every turn, causing

the move to cloud computing to be complex and risky. However, the consequences of not

acting far outweigh the risks and costs of doing nothing.

The purpose of this paper is to explain the basics of a hybrid infrastructure strategy using

cloud resources, describe how the cloud can help businesses respond faster to changing

market conditions and demonstrate how a business can use the cloud to maintain technology

leadership. Lastly, typical use cases will be detailed to provide the reader with concrete

examples of how companies today are using hybrid infrastructure to accelerate their businesses

Competitive challenges businesses face todayThe business environment today is more competitive than it has ever been. Product lifecycles

are shorter. Time to market is compressing. Product designs are more complex. Dozens of new

marketing channels have arisen and even new sales channels are needed to be competitive.

A whole new set of external and internal forces are driving enterprises to respond, adapt,

and change—or become yet another industry name that went out of business because they

couldn’t or wouldn’t embrace change.

Page 3The Right Mix: Transforming to a Hybrid IT Infrastructure


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Businesses are in a fast-moving, relentless

state of disruption and those who can

envision a better, simpler, or smarter way

to do things will succeed.

External Forces Are Disrupting Businesses and Government

The Idea EconomyTurning ideas into new products or services

has never been easier

New, Disruptive Business ModelsNo business, industry, or government is safe

Internet of Things, Explosion of DevicesCloud is redefining how applications and devices

are written and delivered

Page 4

External forces

The exponential growth of connected devices is having a dramatic effect on how technology is

bought, secured, and managed. This in turn is redefining how applications are written and how

fast they are delivered. Traditional IT infrastructures are no longer able to support this swif t and

innovative model of product development.

The Internet of Things has created an explosion of devices. New business models have

arisen and big data is paramount to knowing and responding to customers’ wants and needs.

Collecting, organizing, and making use of this data is critical to the success of any enterprise

and the products/services they produce.

Examples of new and disruptive business models are all around us. Uber ’s ride-sharing instantlyconnects drivers with riders and offers both parties what traditional cab services would not

offer, a safe ride and a hassle-free fare. Nest reinvented the thermostat and gave customers not

only the ability to monitor and control one of the biggest energy costs in a home, but they also

made the scheduling process so intelligent that the thermostat creates its own schedule based

on heuristics.

Both of these examples focus on companies that did not look to see what the leading competitor

was doing first and then emulate it. These are companies that completely embraced new business

models to deliver services and products that never existed before. Their competitors who owned

their respective markets are still scrambling to recover their former stature. Taxi services are

struggling to offer an experience and price that comes even close to Uber. Honeywell was the

de facto, premier home thermostat control in the industry, but they have now lost significant

market share to a company that was virtually unknown a few short years ago.

These examples also highlight the Idea Economy—where businesses are in a fast-moving,

relentless state of disruption and those who can envision a better, simpler, or smarter way to

do things will succeed. Companies must have a vision combined with technical agility as well

as embrace the latest IT ideas and tools in order to quickly turn ideas into a reality—or risk

becoming irrelevant. No industry is immune to disruption.



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Growing regulatory environment, higher

business complexity, and increased

focus on accountability are requiring

enterprises to pursue a broad range

of governance, risk, and compliance

initiatives across the organization.

Page 5

Internal forces

Enterprises are particularly affected by internal forces including complex and siloed traditional

systems, workforces using shadow IT resources to meet departmental and market demands, and

developers demanding the right tools to solve problems. The interoperability between architects,

developers, and operations is typically poor, creating a slow (or complete lack of) response to

the needs of internal and external customers. Data management, security, governance, and

compliance are all under more scrutiny due to increases in hacking and data misuse. These factors

place added pressure on companies that strive to deliver products and solutions to market quickly

Even worse, almost 90 percent of IT budgets are for existing IT operations. It’s hard to be on

the leading edge of product and service offerings when only 10 percent of an IT budget is leftfor innovating and implementing a competitive business strategy.


Internal Forces Are Pushing You to Evolve IT

Technology is

business strategy

Developers are the

new Kingmakers

Shadow IT is

everywhereDevOps driving

culture shifts


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Business Consequences of Doing Nothing

Fortune 100 Companies in the Year 2005—Where do they rank today:

One-third of the Fortune 100 companies from 10 years ago have fallen off today’s list

68% Fortune 100 32% Not in Fortune 100

Page 6

Business consequences of doing nothing

The consequences of not adapting and taking advantage of the new IT tools available today

are huge. Enterprises that choose to do nothing will lose market share to those organizations

that embrace the new tools available to them. Customers and consumers are expecting a more

instantaneous response to their needs. A faster response requires a faster evolution of the

product and services creation cycle.

Data vulnerability and loss of control is also a risk for businesses who do not respond to today’s

new technologies. Employees are already using public cloud computing resources without the

knowledge of the companies they work for. Bypassing internal IT processes and cost controls

is putting enterprise capital at risk as files are stored in places that are too easy to access by

unauthorized people and not properly backed-up or secured.

The corporate highway is littered with the names of companies who chose to ignore and not act

on disruptive technological changes or the simple, ever-pressing move to the commoditization

of technology. Companies are tempted to stick their head in the sand, ignoring internal and

external forces that will lead to their inevitable market irrelevance. Kodak ignored digital

photography. The Swiss ignored the quartz watch. DEC ignored Linux® and commodity

processors in their servers.

To be a leader in any industry today, an enterprise has to lead not only with their adoption of

new ideas and innovation, but must also be early adopters of the technological tools that help

them bring their products and services to market faster and at less cost.

Being a late adopter or follower of

technological changes has significant

negative consequences to companies that

previously lead their respective industries.



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Page 7

The solution to today’s challenges: an open,

hybrid infrastructure strategy

The advantages and benefits gained from private and public cloud computing are compelling;

the potential consequences of not doing so are devastating. It’s imperative that enterprises

develop a sound strategy and plan that incorporates both private and public cloud computing

resources in the right places while integrating with traditional processes and systems.

Companies need to focus onimplementing an open, hybrid

infrastructure strategy that combines

defining their right mix, powering their

right mix and optimizing their right mix

to get maximum value and benefit from

a combination of assets—each one best

suited to the specific problem.


The Solution to Today’s Challenges: an open, hybrid infrastructure strategy

Define Your Right Mix

Expertise to help you build

your architecture spanning

traditional IT, private and

public clouds

End-to-end open enterprise

technology, software and

services to build or consume

your cloud services

Effective administration of

a multi-cloud environment,

security, compliance,

and performance

Power Your Right Mix Optimize Your Right Mix


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Define your right mix

The first step in deploying an optimal hybrid infrastructure strategy is to define your right

mix of information technology—including private cloud, public cloud and traditional IT.

Private cloud is ideal for workloads that have specific security or compliance requirements

or that require specific hardware to meet performance expectations. Public cloud is ideal

for temporary workloads or workloads that have large variances in demand. Traditional IT is

best for supporting legacy applications, applications that are not economically or technically

feasible to move into a cloud platform, and for applications that have a very steady, unchanging

demand profile.

To determine your right mix, each application needs to be deployed on the best platform

weighed against its cost, performance, security, regulatory compliance, and other criteria.

Determining where to begin defining the right mix of infrastructure depends on where a

company is starting from. Virtually all enterprise companies are starting with a legacy of

traditional hardware, and they typically have some cloud-based solutions that have sprungup over the years.

To define the right mix, a company needs to look at each application in its production inventory

and analyze where that application would best be deployed based on the following:

• Cost to migrate

• Cost to operate

• Regulatory requirements

• Geo-political requirements

• Performance requirements

•

Security, confidentiality• Availability and reliability

• Corporate IT standards

• Contractual terms and conditions

Knowing the answer to these requirements for an application will determine the ideal

deployment: which platform, where to deploy, and which partners to work with.

Hybrid infrastructure combines

traditional deployments with public and

private cloud resources, blending hybrid

cloud with traditional IT.

• Reduce cost, increase agility

• Simplify management complexity

• Reduce shadow IT

• Deploy workload to the most appropriate environment

• Optimize placement for security, performance, cost, etc.

There is a Right Mix for You

Goal is to Optimize for the Right Mix of Traditional IT, Private and Public Cloud

What Will the Right Mix of Hybrid IT Do for Your Enterprise? Enterprises are Moving to Public, Private, and Hybrid Clouds

Statistics provided by 451 Research.

26% Non-cloud

19% Public Cloud (IaaS and SaaS)

47% Private Cloud: On-premises and hosted

9% Hybrid



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Power your right mix

After defining your right mix, the second part of implementing a hybrid infrastructure strategy

is powering the right mix by implementing the strategy with the right hardware, services, and

partnerships. Any enterprise, no matter how large, will not have all of the skills, knowledge, and

resources to implement and manage this complex, hybrid infrastructure strategy.

A private cloud running the appropriate applications is a great place to start powering your

right mix. By doing this, an enterprise can set the standards, that will be required for future

cloud services, such as using OpenStack® for the cloud operating system. This also helps

further define your right mix. When creating a hybrid infrastructure environment, make sure

your private cloud can directly integrate with your traditional environment, including the IT

management tools. This is a critical step in creating a sustainable hybrid IT environment, not just a hybrid cloud solution.

The next step in powering your right mix is to identify and start utilizing public cloud services

that meet application requirements appropriate for public cloud. Microsoft® Azure and Amazon

AWS are good choices to start with and are partners of Hewlett Packard Enterprise. These

services can then be selected not just on application f it, but also for a match to the standards

and criteria set by the enterprise’s private cloud implementation.

It’s critical to select and deploy the best solutions and right partners that have solutions-focused,

end-to-end enterprise IT expertise that match the enterprises’ defined hybrid infrastructure and

hybrid cloud standards. Infrastructure, services, and partners need to be backed by global services,

support, and a partner ecosystem. Partners that can bring cloud-skilled professional services

with deep expertise in open source technologies are vital. Partners should also be certified insecurity, data management, and performance in order to effectively implement these types of

comprehensive solutions.

The right partners will help offer a more unified view of the overall hybrid infrastructure

environment both for IT management and end-users of the hybrid IT environment.

It takes significant expertise to make a hybrid infrastructure work together properly.

Finding a partner with the expertise to help a customer plan and implement their cloud

environment is paramount. An experienced partner must also be able to help with the business

process change, which is often a far bigger issue than the technology—and one that needs to

be addressed early on.

Standards such as supported open cloud

operating systems and management

tools, APIs and other features ensure

enterprises are not locked into

proprietary solutions.

Power Your Right Mix

Build On-Premises

Built on Open Standards and Open Source

Consume Off-Premises

Traditional ITVirtualization

Automation

Private

Clouds

Managed

Clouds

Hybrid

Infrastructure

Global Public

Clouds



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Corporate compliance demands a way of

enforcing corporate policies in regards

to data security, confidentiality, and

contractual standards.

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Optimize your right mixThe third and final part of the right mix is optimizing your right mix. Optimizing your right mix is

the ability to deliver effective administration of multi-cloud environments, workload migration,

applications, data, users, compliance, and security.

Users should be able to seamlessly access the full complement of hybrid infrastructure

resources specific to their job requirements. The service catalog should present to each

audience (QA, developers, testers) only the cloud and traditional IT resources that is right and

approved for their function. IT organizations need to offer private and public cloud services that

appear uniform to the customer including the APIs that drive the services. The service catalog

should present the options and differences of the services in an easy to understand manner.

Systems administrators must be able to easily manage existing traditional IT resources as well as

private and public cloud resources from a single pane of glass. They also need a way to virtually

move assets from the traditional environment to the private cloud as resources are freed up.

Divisions within a corporation also have important cloud requirements. Corporate compliance

demands a way of enforcing corporate policies in regards to data security, confidentiality, and

contractual standards. Enforcement and compliance to industry regulations like HIPAA, PCI, ITAR

as well as government regulations around data sovereignty are critical as well.

Optimizing your right mix should include the security, governance, and compliance required

by the application and enterprise. It should regulate workloads and user access, provide

on-demand provisioning of applications and workloads, and optimize resources across a

complex open hybrid infrastructure. The advantages of optimizing your right mix are numerous

and include delivering greater efficiency, meeting service level agreements, ensuring compliance

with industry and governmental requirements, increasing utilization of resources and providing

protection from security breaches. The resulting benefits are lowered costs, reduced risks, and

greater productivity for the entire organization.


Optimize: Ensure 100% Visibility and Control across Your Right Mix of Hybrid Infrastructure

Effective Management of Hybrid Cloud

• Performance management to meet SLAs

• Data locality management for performance and protection

• Security/compliance to meet regulatory requirements

• Services cost visibility for eicient usage and placement

• Capacity management to maximize utilization

• Open architecture provides greater agility and flexibility

• Infrastructure management for issue prevention and rapid resolution


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Organizations need to define their Right

Mix of hybrid infrastructure based on their

own strategy. Hewlett Packard Enterprise

commissioned the 451 Research group

to survey over 1000 customers around

the world about their plans for hybridinfrastructure. The chart above shows how

organizations plan on adopting private

and public clouds over the next 2 years,

by industry.

Page 11

Hybrid Infrastructure Use Cases

Given all the possibilities to define, power and optimize your right mix, where are the sweet

spots for planning and executing an open hybrid infrastructure strategy to reap the greatest

possible benefits in the shortest amount of time?

Rapid infrastructure provisioning is one of the easiest ways to show benefits for cloud

computing. Development and testing, infrastructure-as-a-service resources for deploying

production applications and quick expansion of web services are examples of this use case.

This is the most common use case and has the most impact for increasing innovation,

improving speed-to-market and increasing agility and scalability.

Deploying traditional apps to the cloud is the second most common use case. Traditional

applications that need greater scalability, experience large variances in demand or aren’t

meeting performance expectations are good candidates for moving to the cloud. In some

cases, applications are modif ied to work in a cloud environment. In other cases, applications are

implemented unchanged. This use case increases agility and scalability.


Major Verticals Shifting Spend Over the Next 2 Years, Investing in Different Private and Public Cloud Mixes

Industry Verticals Show a Consistently Strong Private Cloud Mix

Manufacturing

23%Public Cloud

77%Private Cloud

Healthcare

28%Public Cloud

72%

Private Cloud

Government

22%Public Cloud

78%

Private Cloud

Finance/Banking

29%Public Cloud

71%

Private Cloud

Education

23%Public Cloud

77%

Private Cloud

Insurance

19%Public Cloud

81%Private Cloud

Telecom

33%Public Cloud

67%Private Cloud

Retail

27%Public Cloud

73%Private Cloud


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Page 12

Deploying an AWS hybrid cloud is another ideal use case for hybrid infrastructure. Many

enterprises are using AWS because it’s easy to access and seemingly inexpensive. Yet some

applications are now being moved back to a private cloud for a variety of technical and

economic reasons. Ideal candidates for a private cloud include applications that require specific

hardware to meet performance expectations, applications that have compliance requirements

that cannot be met by AWS, or applications that are less expensive to run in a private cloud. By

deploying an AWS compliant private cloud, applications can be moved between AWS and the

private cloud without rewriting the applications.

As enterprises increase their adoption of cloud technology, many are managing multiple

private and/or public clouds. Becoming an internal service broker enables an IT organizationto manage and optimize services from external service providers. Successfully brokering and

managing multiple clouds requires a cloud management platform with extensive integration

capabilities.

Implementing tools to operate complex clouds is critical to all use cases. As companies

increase their use of hybrid cloud, they often want better management capabilities such as

performance management, capacity management, asset management, showback/chargeback,

enhanced security and financial management. To simplify operations, enterprises also look for

management tools that can manage both their traditional IT and cloud environments.

Another popular hybrid infrastructure use case is implementing storage in the cloud for a

content repository, as an enterprise file sync and share, or for an archive and backup. This type

of deployment can cut storage costs by 10X—all while increasing agility, innovation, and speedto market.

Developing and deploying cloud-native applications on IaaS/PaaS or for mobile application

development can increase application releases by 30X. New applications are often developed

using cloud native architectures combined with DevOps methodologies to bring applications to

market significantly faster.



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Conclusions

Companies can no longer take a wait and see attitude to adopting and integrating cloud

computing technology into their IT strategy. The advantages are clear and the benefits are now

proven. The risks to adopting early are less than the risks of adopting late. Enterprises must get

their products and services to market faster than ever before and must be more creative and

innovative than their competitors in order to survive. Employees must be empowered with the

tools they need to unleash their creative potential. New tools must be deployed faster and with

greater ease—all while keeping costs under control.

Employing and accelerating a hybrid infrastructure strategy that properly defines your rightmix, powers your right mix and optimizes your right mix is the answer to remaining competitive

and relevant. Those enterprises that effectively implement a hybrid IT strategy based on these

three principles dramatically increase their odds of success.

Building this strategy on a platform of

open standards and software provides a

future-proof IT deployment.


“IT in the Midst of Transformation as Enterprises Look to

Drive Down Cost and Increase Efficiency.”

– 451 Research


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Hewlett Packard Enterprise has built its reputation on helping customers move to a hybrid

infrastructure. Based on open architecture, HPE Helion enables enterprises to define, power,

and optimize their right mix for a hybrid infrastructure world. The HPE Helion difference

includes:

• An open architecture: third-party hardware support, third-party software integration through

APIs, open source: OpenStack, Cloud Foundry, and Docker

• Support for a wide variety of environments: VMware®, MS Hyper-V, AWS, Azure, OpenStack,

Cloud Foundry, and Docker

• Broad portfolio: Integrated systems, cloud management software and managed services

• Expertise in planning and implementing complex cloud projects

Quickly deliver IT services, respond to fast-changing business conditions, and get applications

to market faster with HPE Helion. This complete portfolio of cloud products, services, and

solutions offer enterprise-class security, scalability, and performance. HPE Helion cloud

solutions provide simplicity, security, governance, and speed for your private, hybrid, and

managed clouds. It’s no wonder that Hewlett Packard Enterprise is the number one provider

of cloud infrastructure. With over 3000+ HPE Helion customers, Hewlett Packard Enterprise

dominates the cloud infrastructure industry with its extensive cloud experience,

industry-leading infrastructure solutions, and growing list of skilled and reliable partners.

Learn more athpe.com/helion

© Copyright 2016 Hewlett Packard Enterprise Development LP. The information contained herein is subject to change without

notice. The only warranties for Hewlett Packard Enterprise products and services are set forth in the express warranty statements

accompanying such products and services. Nothing herein should be construed as constituting an additional warranty.

Hewlett Packard Enterprise shall not be liable for technical or editorial errors or omissions contained herein.

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jurisdictions.

4AA6-3270ENW, January 2016


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