Future of Infrastructure: Commonwealth Perspective
Jan 29, 2016
Future of Infrastructure:
Commonwealth
Perspective
Beginning to prepare for cloud transformation …
Well tested the vendor landscape and conducted multiple
proofs-of-concept
Vendors are known / emerged and footprints deployed with
early stage app migration
Initial efforts focused with relatively lower organizational impact
and level of effort
Stakeholder commitments - internal and external stakeholders
Significant run-rate reductions have been identified but cost-
savings are loaded on the back-end
Staff is multi-hatting to run the operation, the operating model
needs to catch-up
… but face substantial challenges in completing the journey
Application
Migration
1000’s of applications, global scope, zero business disruption
Many applications requiring modification, re-platforming or
refactoring
Operating
Model
Refresh
Staffing constraints in bandwidth and skills
New operating model requirements – greenfield vs. brownfield,
updated org structure, new roles and responsibilities, new
processes, skill gaps
Commitment to service and business continuity
Process and
Financials
Extensive tool selection and deployment requirements for tech
ops, code and configuration management, ITSM, ITFM, ITBM
etc.
Development Demand for rapid deployment of Agile / Dev Ops capabilities
1990’s
Ris
e o
f D
ata
Cente
rs
Bla
des / S
erv
er
Virtu
aliz
ation
PaaS
Em
erg
ence
Clo
ud
Tra
nsfo
rmation
?
2000’s 2010’s 2015 2020
Infrastructure is no longer an IT domain – it will transform as a series of “bundled
services” provided through a services catalog.
Commonwealth’s Journey
Clients
Today
Regulation &
Risk Mitigation
Increasing
Competition
Shifts in
consumer
behavior
Threat from substitute
product providers (e.g. P2P)
Regulatory drivers
Competitive drivers
Consumer drivers
Basel III / CRD IV
Consumer protection /
conduct agenda
Affordable care act
Structural reform
measures
Increasing customer expectations
due to technological advancements
in consumer products (e.g. Mobile)
Rise of the digital consumer
Price sensitivity and rise of
independent aggregators
Increasing social engagement
Price competition from
aggregators
Platform stability / Reduction
in Severity-1 outages
Faster time to market for products
User oriented service catalogs /
anywhere / anytime access
New business models / rapid
inorganic growth
Continuity of Business /
Proximity risk
Cost
Pressures
Shrinking Budgets / Cost
Pressures
Shift to variable Costs/pay-
per-use;/subscription models
Greater Financial
Transparency
Increasing Cost Pressures
Show back/Chargeback
What hasn’t changed….
Consumer
Behavior
Client
Shift
Industry
Trends
Tech
Trends
Embark on multi-year Global IT
Transformation to modernize IT
infrastructure and application portfolio in
a broader effort to cut $$$ from the
budget
Outsourcing core infrastructure to multi-
million/billion dollar services agreement
Moving all non-production services to
cloud as a first pass
Creating Automated Private Clouds with
key tenant centered around Scale,
Speed, and economics
30% of Cloud spend goes to “no name”
provider / infrastructure
Gartner predicts IoT to include nearly 26
billion devices, with global economic value-
add of $1.9 trillion by 2020
Growth in the number of intelligent edge
devices over the next 5 years (IDC, 2014)
There will be a 10X explosion of new cloud
apps between 2013-2017 and a 3X
expansion of the cloud developer
community (IDC, 2014)
Consumer grade experience is the new
gold standard to IT Delivery
The number of mobile connections will
reach 8.5 billion in 2018 (Gartner, 2014)
Wearables will be a huge market, worth
$25 billion in 2016, the market will
quadruple to over $100 billion by 2024
(Gartner, 2014)
The average consumer will routinely carry
around an average of 25 connected
electromechanical sensors by 2024
(Gartner, 2014)
Private Cloud Infrastructure spending grew
by 18.3% year over year
Gartner predicts that infrastructure-as-a
Service market revenue will grow at a
CAGR of 31.7% through 2018 as
companies continue to grow and expand
existing data center infrastructure services
($50B addressable market)
More than 70% companies understand the
importance of infrastructure services, but
only 22% claim to have a well-defined IT
Infrastructure in place
… and what has?
Cost
Effectiveness
Service Quality
Improvement
Risk
Management
Business Agility
Shrinking budgets / cost pressures
Greater financial transparency
Shift to variable cost / ‘pay-per-use’
subscription models
Platform stability / Reduction in
Severity-1 outages
Faster time to market for products
User oriented service catalogs /
anywhere / anytime access
Continuity of Business / Proximity risk
Cyber Security
Increased regulatory and legislative
scrutiny / pressures
New business models / rapid inorganic
growth
Exponentially higher transaction
volumes / unstructured data
Ability to dynamically scale capacity up
or down
Business Imperatives Technology Infrastructure Levers
1
2
3
4
5
Data Center Transformation
Facilities Consolidation
Software Defined Data Centers
Hybrid Cloud Models
Automation – Workflow and Infrastructure
Disaster Recovery Strategy
Asset Optimization
Server Virtualization / Standard Platforms
Storage Optimization / Reclamation
Network Convergence
Workplace Transformation
Mobility / Unified Communication
Desktop Virtualization
Bring Your Own Device (BYOD)
Labor Reengineering
Global Operating Models
Right-sourcing / Shoring
Labor less IT
COO / CTO Transformation
IT Service Management / ITIL
IT Finance & Performance Management
Business Engagement / Portfolio Management
Key business imperatives are influencing how we respond - realign the technology
infrastructure operating model
Market forces, business pressures, and technology innovation are forcing CIOs and CTOs to transform technology infrastructure –
primarily to reduce costs, improve service quality, and minimize risk
New development on software-defined storage and network has resolved infrastructure constraints and given rise to the Software-
Defined data center (SDDC), allowing most components of the application layer to be independent of hardware layer.
Mix of Manual and Automated
Management / Allocation of Resources
Mix of Virtual and Non-Virtual
Network, Storage, Compute
Se
mi-M
an
ua
l Ad
min
an
d
Ma
na
ge
Typical Data Center
Software Driven – Dynamic (Automated)
Management / Allocation of Resources
Fully Virtualized Data Center
Fu
lly A
uto
ma
ted
Software-Defined Data Center
Impact and Considerations
Compute, storage, networking, security, and availability services
are pooled, aggregated, and delivered as needed
Managed by intelligence-driven software for configuration,
monitoring, provisioning and decommissioning
API-Driven Cloud management capability
Application layer abstracted and independent of hardware layer
Workflow will be simplified by implementing a new service that
reduces infrastructure silos
Increased demand for commodity hardware and automation will
lower CapEx and OpEx
Software defined Networking supports VXLANs improving flexibility
over VLANs
Open API interaction helps application development become
independent of physical architecture
The Software Defined Data Center
What Our Peers Are Facing
What Our Peers Are Facing
What Our Peers Are Facing
The Future – Autonomic Platforms
• “Build once, deploy anywhere” approach in which new architectures utilize containers, provisioning, and advanced management and monitoring tools to seamlessly move workloads between traditional on-premises stacks, private cloud platforms, and public cloud services.
• As cloud meets the ground, end-users can focus exclusively on outcomes, rather than where resources are located and how services are provided.
“PA Autonomics” - Concept
OA Service Catalog
L
E
G
A
C
Y
Agency
Customization
C
o
P
A
Challenges• ITSM
• Network
• Risk Management / Security
• Investment – move applications across platforms
• Business & IT Continuity with higher availability12
20% 40% 30% 10%
C
L
O
U
D
IaaS
PaaS
SaaS
Application
Driven
The Future Vision