Gartner Sourcing & Strategic Vendor Relationships Summit

35 November 2015 | Grapevine, TX

How to Integrate and Manage Cloud

and Traditional Services Living in a
World of Hybrid IT
Ed Anderson

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 Digitization of Business
ROI
Competitiveness
Consumerization
CEO and Board of Directors
Top-Down Pressure
Can't the Cloud Just Fix It All?
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Key Issues: Caught Between Two Worlds Let's Discuss

1. What key IT challenges are driving the need for hybrid IT?
2. How does hybrid IT bring together diverse systems?
3. What are the steps to becoming a service broker and delivering
hybrid IT?

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 Traditional IT Service Towers

Data Center

Applications
End User

Network
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Building Onto This Platform for a New IT Is Not Going to
Work ... But We Know
Sunk Costs
Politics Changes

Processes
Licenses

Risks
Skills
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 Old Hybrid New
New Technologies Cloud Services
IT Towers Connect Clouds Cloud Service
IT Service Data Identity and Brokers
Management (ITSM) Classification Cloud Management
IT Operations Service-Oriented Platforms
Architecture (SOA)
Service Interface

Who Will Manage and Execute Hybrid IT?

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 Hybrid IT
The operational model that is a trusted broker
and provider of IT services including
services provided by the IT organization and
external providers using both cloud and
traditional styles of computing.

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Evolving Toward Hybrid IT

Hybrid Cloud
72% plan to use

Virtualization
86% virtualized Private Cloud Hybrid IT
43% using 74% plan to use

Public Cloud
44% using

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Choosing Public or Private Cloud

- Isolation/Customization/Control +

Public Cloud versus Private Cloud

Shared between Shared, but limited to
Plus: Plus:
many organizations one organization
Virtual private Managed
Off-premises clouds services Off- or on-premises
Managed by provider Dedicated Hosted Managed by IT or provider
instances offerings
Benefits: Benefits:
Provider invests in innovation May meet security, compliance and
Efficiencies due to economies of scale customization requirements
Operating expenditures vs. capital expenditures Capital expenditures vs. operating
expenditures

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Hybrid Cloud Coordinates the Use of Many Clouds

Private Community

Hybrid Cloud Service

Hybrid
A cloud computing service that is Single Multiple
Organizations
Organization
composed of some combination of
private, public and community cloud
services from different service
providers for capacity or capability.
Unlimited
Organizations

Public

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Hybrid Enables Either Extended Capacity or Capability

Capacity Capability
Aggregating the scale Aggregating the functionality of
of multiple services multiple services, customizing
to become one service: them, or integrating several
together to become one service:
Example: A private cloud
development/testing infrastructure as Example: A private or community
a service that can use the resources cloud service that performs data
of a public or community cloud when analytics on confidential data, but
resources are limited. integrates with a public cloud
Example: A public cloud service service that performs the same data
could be on a disaster recovery analytics on nonconfidential data.
basis for a private cloud service.

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Hybrid Cloud: Strong Benefits and Hard Challenges

Benefits Challenges
Cost Efficiency Through Immature Technologies
Competition True Interoperability
Increased Capex Complexity
Efficiency (Utilization)
Policy Management
Reduced Capacity
Barriers Compliance
Improved Resiliency Application Design
Leverage Cloud Without Software Licensing
the Lock-In Latency

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Hybrid IT Comes Together Through IT Service Brokerage

User(s)

IT Service
Broker Group
IT Service Brokerage

Traditional IT
Management Data Center
Group

Public Cloud
Public Management
Private Cloud Private Cloud
Cloud Group
Management Group Hybrid Cloud

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Service Consumption Through Intermediation

IT Service Brokerage Cloud

Aggregation

Customization

Integration

Governance
Noncloud

Sourcing | Policy | Security | Compliance | Management | Auditing | Reporting | Billing

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The Potential Benefits of Hybrid IT
Traditional IT systems ensure security
and governance
Cloud computing can help cost efficiency
Private cloud computing can help
asset utilization
Private cloud computing ensures isolation
Cloud computing can enable high
availability and resiliency
Cloud computing is service-oriented
Cloud computing can introduce new
functionality quickly
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Hybrid IT
Delivers "best of breed" services while enforcing security
and governance
Can maximize cost efficiency through competition
Can maximize utilization while enabling better scalability
Allows an enterprise to balance isolation, cost and
scaling requirements
Improves resilience and disaster recovery
(multiple providers)
Allows you to deliver both internal and external IT
as services
Increases organizational agility using a multiservice design
What Does All This Mean for Sourcing Strategies?

1 Sourcing strategy
expands to include
both cloud and Sourcing contracts must
3
noncloud services. ensure well-defined
interfaces and SLAs.

2 Services need to be
integrated into hybrid
IT configurations. Service brokers bring
4 services together and
deliver a master SLA.

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Eight Steps to Hybrid IT: Becoming a Service Broker
Step 3:
Offer cloud
provider Step 5: Step 7:
Step 1: relationship Provide Provide
Start on the right management. policy-based value-add broker
foot focus on active usage services between
acceleration, monitoring. cloud service offerings.
value, protection.

Step 4:
Provide a cloud Step 8:
Step 2: provider usage Abstract cloud
Become the cloud portal with providers
provider expert. passive monitoring. Step 6: behind portal.
Provide value-add
broker services on
top of cloud
service offerings.
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Recommendations for Sourcing Managers

Educate yourself and your organization on hybrid IT principles.

Treat cloud sourcing relationships and agreements both strategically
and tactically.
Help establish and enable brokerage roles within your organization.
Assess external providers for their capabilities: cloud services,
managed services and brokerage.
Determine the key roles and responsibilities necessary to support a
hybrid IT environment.
Use adaptive sourcing techniques: Innovate! Differentiate! Run!

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Recommended Gartner Research

Hybrid IT: Delivering IT as a Provider and a Trusted Broker

Thomas J. Bittman, Ed Anderson and Drue Reeves (G00245906)
Become a Cloud Enabler by Following Our Eight Steps to Hybrid IT
Thomas J. Bittman (G00259266)
Hype Cycle for Cloud Computing, 2015
Ed Anderson and David Mitchell Smith (G00276722)
Hybrid IT: How Internal and External Cloud Services Are
Transforming IT
Chris Howard, Drue Reeves and others (G00231796)
Predicts 2014: Cloud Services Brokerage
Daryl C. Plummer, Tiffani Bova and others (G00258083)
For more information, stop by Gartner Research Zone.
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