Tag Archives: CloudSM

Cloud Sourcing, Cloud Brokerage and Hyper-Hybrid Clouds

Cloud Sourcing

Frances Karamouzis and David Mitchell Smith

During the next few years, market dynamics will determine whether cloud sourcing will be the demise of traditional outsourcing, if it will lead to the convergence of services and products currently marketed “as a service,” or if it will result in next-generation outsourcing.

Clients now have more choice, that choice is to turn away from internal IT and look at external vendors that can do all of those services at once

Get “SLAs with teeth” those that have business implications

 

How Cloud Brokers Will Differentiate

Gartner VP Tiffani Bova discusses how VARs, MSPs and technology consultants can become cloud brokers working within cloud aggregator services.

How many of you in the audience feel that you have being delivering Cloud for years?

How many of you today can do usage based billing?

It isn’t about the PC it’s about the Personal Cloud

I

Besol named ‘Cool Vendor’ in

Cloud Services Brokerage

Besol, the leading provider of next generation multi-cloud management platforms for private and public clouds, today announced that the world’s leading IT analyst firm, Gartner Inc., has selected the company as a Cool Vendor in Gartner’s “Cool Vendors in Cloud Services Brokerage Enablers, 2012” report published on 12 April 2012 by Tiffani Bova, Daryl C. Plummer, et al.

According to the Gartner report Key Findings, “The cloud services brokerage (CSB) is emerging, and first-mover advantage will be key to gaining awareness and share. CSBs are challenged to continuously build or buy the capabilities required to compete in the three CSB roles: aggregation, integration and customization”

“We in Besol believe being chosen as Gartner Cool Vendor is as a testament to the dedication, hard work and focus on innovation of our team” said Javier Perez-Griffo, Co-Founder and CEO of Besol. “The Tapp platform from Besol allows users to manage their cloud infrastructures independently of their cloud provider, but more importantly, enterprises can manage both their public and private clouds from a centralized point.”

Perez-Griffo continues “Cloud services are no longer restrained to large enterprises or IT-savvy organizations. Through our platform, SMBs of all kinds are now able to ‘tapp into’ the cloud and deploy and manage their infrastructures seamlessly, in a completely new user-friendly experience.”

Hyper-hybrid Clouds

Chris Weitz – Deloitte

Today, hyper-hybrid clouds are an advanced form of cloud services in the early stages of adoption, but the approach is rapidly becoming the norm for cloud services architecture.

A hybrid cloud is a cloud that works across different environments where you have services from vendor clouds working directly with clouds inside of an organization, thus forming a hybrid cloud.

Hyper-hybrid clouds are the multiplication of numerous hybrid clouds working together to serve an organization. The hype curve for cloud computing is at an all-time high, for pretty good reasons. Cloud computing can help increase agility, decrease costs and improve service delivery capabilities — and it can happen fast.

Tiffani Bova – has coined the term “born in the cloud”,  For me this is where new capabilities are forming on the cloud platform so that a different approach is required to manage the increased complexity of hyper-hybrid clouds.

Cloud Service Brokers add value by managing one or more cloud service on behalf of the service’s recipients.  Gartner says that cloud service brokers represent the single largest revenue growth opportunity in cloud computing through 2015, emphasizing that without cloud brokerage the cloud industry cannot survive.

I say that clients will need to design and implement Cloud Service Management practices [CloudSM] to govern the relationship with their cloud service brokers and external providers.

Services configured from Hyper-Hybrid clouds will set new delivery challenges for Next Generation Service Management CloudSM to overcome.

The guidance provided by the ITIL 2011 Edition and COBIT5 framework does not help define CloudSM practices required to address the dislocation of company compute assets which previously were on-premise and have now become “Place Less” being delivered from anywhere in the Hyper-hybrid Cloud. 

So what criteria do you apply in sourcing your Cloud Service Provider?

Do you need to engage a Cloud Service Broker?

Should you jump to Hyper-Hybrid clouds directly or be more risk averse?

I can only think of the classic consultant response “it depends”

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Cloud Computing Economics

In my 27th May post I responded to a thought provoking article by Bernard Golden stating that “CIOs are not Business Leaders”.

We exchanged details and I had the good fortune to meet with Bernard this week in London.

Bernard is one of the “Rock Stars” of Cloud Computing and has recently joined enStratus as its new Vice President of Enterprise Solutions.

“In this new role, Bernard will help enStratus customers leverage the cloud and build best-practice operations based on the enStratus cloud management platform. Bernard brings vast experience working with CIOs around the world to incorporate new IT technologies and meet their business goals”.

We discussed various Cloud topics and I would like to focus on two themes.

Cloud Economics

Mark Teter, CTO at Advanced Systems Group, discusses the economics of cloud computing today.

Cloud Providers have a Chinese Menu of charges

What is your Total Cost of Assets?

Substituting a one time Capex model for a Re-ocurring Opex model

Divorce is expensive from a Cloud Provider

“Recently, ASG conducted a detailed financial analysis of three cloud computing solutions:

1) public cloud from Amazon EC2;

2) purchased private cloud infrastructure; and,

3) a leased private cloud infrastructure. Here’s what we found:

Based on our analysis, a private cloud computing solution whether leased or purchased would seem the way to go. In addition to the financial benefits, we feel that there’s a propensity for additional flexibility and greater uptime.

This analysis shows a $513,295 cumulative cost savings over three years for the private cloud purchase versus the public cloud option. The private cloud lease saved $489,874 versus the public cloud option over the same three years”.

The Truth About Cloud Economics

By Drue Reeves and Daryl Plummer of Gartner – LINK to full HBR article

“For companies, cloud computing’s new economic model stands in stark contrast to the traditional economic model of IT where we buy technology from a vendor as a capital investment and continue to invest in maintaining and servicing it over time. Traditionally, much of the money allocated to technology has been locked away in capital expense allocations used for buying physical goods. However, cloud services are just that, a service, and require reallocating money to operating expense budgets”.

New Delivery Model

Verizon offers customers guarantees about how fast data will travel between one cloud and the other. Verizon bought Terremark in 2011 to competes with providers such as Savvis or Rackspace.  This short video takes a creative approach to exploring how Verizon and its Terremark IT services delivery arm are fundamentally changing how businesses and consumers will access content.

The Cloud is Democratizing Technology

The Network is going to evolve into an IT Platform

Must be able to Deliver Metered Billed It Services

So the Cloud Computing Economic model is compelling:

  • No initial capital spend required
  • A flexible TCO model for service provision can be lower (typically in the short term)
  • Good way to align and scale “technical capacity” with “business demand” (e.g. Xmas trading, Summer trading, Financial Period end)

Senior Business Stakeholders are investigating how, when and what to migrate to the Cloud without compromising security and regulatory requirements.

The Business needs to have transparency in order to evaluate whether it is buying the right cloud services and managing them in the right way.

There are many companies providing advisory services however the Vendors tend to sell the benefits of their cloud enterprise solutions [e.g. IBM SmartCloud, Citrix CloudStack, SAVVIS Symphony] and typically ignore the radical set of new people and process challenges.

CloudSM

As a Service Management Practitioner I believe there is a gap in the market which I am calling  CloudSM – Cloud Service Management is typically a managed service or a dedicated on-premise private solution.

The Cloud Service Management provider is accountable for end-to-end governance and delivers key process capabilities including orchestration, service provisioning, automated workflows, monitoring and metering.

External managed Cloud Service Providers have the people know how and mature processes to be more compliant than internal IT shops.  In addition they will definitely deliver CAPEX and OPEX savings that can be re-invested in enabling Business change.  

Welcome to the new world of Cloud Service Management that is required to manage the New Delivery Models.

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