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THE AGILE IT PLATFORM




Cloud Scars: Lessons from the Enterprise Pioneers
June 28, 2011

Dave Roberts
Vice-President, Strategy
dave.roberts@servicemesh.com
@sandhillstrat
@servicemesh
ServiceMesh Background
 Enterprise provider of a governance, security, and automation platform that enables a
  Continuous Software Delivery Lifecycle. The results is faster software cycle times,
  reduced complexity, and lower cost to get from conception to production.
 Customers include some of the world’s largest and most sophisticated companies in:
          Financial services
          Health care
          Consumer
          Other IT-intensive industries
 Global presence with headquarters in Los Angeles and offices in Austin, London,
  New York City, Sydney, and Washington D.C.
                                                          3X revenue growth in 2010
                                                   3rd   consecutive year of profitability
Seven Common Self-Inflicted Cloud Wounds

1.   Failure to recognize the scope of organizational change
2.   Leaping before looking
3.   Failure to simplify
4.   Failure to understand attorneys and vendor management
5.   Taking vendors at face-value
6.   Cloud addiction
7.   Failure to take policy into account
1.
Failure to Recognize the Scope
   of Organizational Change
“Cloud” is not a technology
         problem.

  It’s a people problem.
Typical Cloud Starting Point



                    IT Department
Limited Offerings



         Developer                           IT Department



                     Self-Service
                        Portal




                          Create service offerings
Cloud Scars: Lessons from the Enterprise Pioneers
Business units are tempted to
          bypass IT.
IT Department Reality



                    IT Department




                  Compute

                            Network

                                      Storage
Really Need to Examine the Whole
Solution Delivery Lifecycle


Customer   Sales      Marketing      Business       Developer   IT Department
                                     Analyst




                            Business Unit


           Optimize the overall Solution Delivery Lifecycle
Solution: Embrace Collaboration

      Developers                   Application
                                    Architect




                                   Product
                                   Manager




                   IT Department
2.
Leaping Before Looking
Often, companies decide that if
cloud is “good,” they should jump in
    with both feet from the start.
Do you have a cloud strategy?
Does it have phases?
You’re going to learn a lot.
Your organization is going to
    need time to adapt.
You’re going to have to choose
service providers and that will
          take time.
You’re going to need to evaluate
    your current application
    portfolio and develop a
     remediation strategy.
3.
Failure to Simplify
Cloud Scars: Lessons from the Enterprise Pioneers
Modern applications have a lot
of dependencies throughout the
          lifecycle.
Building
   Monitoring
    Security
Operating Systems
   Hardware
     Backup
       Etc.
Many of these dependencies
 aren’t cloud-compatible.
Use cloud as an excuse to
simplify moving forward.
Standardize.
Standardize ruthlessly.
X86
10 Gbps Ethernet
 NAS and iSCSI
Eliminate everything else that
      adds complexity.
Replace systems that can’t be
    automated or scale.
“Stateless boot” through app
        configuration.
Standardize (ruthlessly) up the
     stack, towards PaaS.
Two Benefits
1. Simplicity enhances
probability of success.
2. Contestability lowers costs.
4.
Failure to Understand Attorneys
    and Vendor Management
Enterprises don’t run
          (for long)
on credit cards and expense
reports for critical services.
At some point, contracts
  must be negotiated.
That will take time.
It will take a long time.
It will take far more time than
  you ever thought possible.
6 months
5.
Taking Vendors at Face Value
Lots of products.
Cloud Washing
Many existing tools cannot
 make the jump to cloud.
Too low-level
No sense of chargeback
Low-level automation only
IT Operations Automation
            ≠
     Business Agility.
Lots of services, too.
Beware cost claims.
Machine arbitrage is thin.
vs.
Beware cloud providers bearing
   management tool gifts.
Beware management tool
vendors bearing cloud gifts.
Thar be lock-in
lurking everywhere.
6.
Cloud Addiction
When you buy a new
 hammer, suddenly
everything looks like
       a nail.
Some applications aren’t
       suitable.
Some may never be suitable.
Some applications may be cost
effective in external clouds for a
              while…
…but then become more
expensive as they scale.
The typical issue is network
         charges.
But this applies to any billed
resource that can’t be predicted
         well or limited.
Hybrid cloud with mobility is a
         winner here.
Most think about scaling out to
       external cloud…
… But the right answer might be
 to scale up to internal cloud.
Mobility is key.
Constantly review and monitor.
7.
Failure to Take Policy Into
         Account
Diverse User Base with Hybrid Clouds
   Creates Governance Holes


  Development                             Hybrid Clouds


                      Self-Service
                         Portal
Product                     +
Planning             Orchestration



    Operations
Cloud Scars: Lessons from the Enterprise Pioneers
Simple role-based access control
         is not enough.
Advanced Policy Management


  Development                                                   Hybrid Clouds



                   2 Enforcement and Audit
Product
Planning




    Operations                 1 Create policies




                                                     Audit /
                          IT          Security     Governance
Seven Common Self-Inflicted Cloud Wounds

1.   Failure to recognize the scope of organizational change
2.   Leaping before looking
3.   Failure to simplify
4.   Failure to understand attorneys and vendor management
5.   Taking vendors at face-value
6.   Cloud addiction
7.   Failure to take policy into account
Thank you
Dave Roberts
Vice President, Strategy

Email:                     dave.roberts@servicemesh.com
Web:                       http://www.servicemesh.com/
Company Twitter:           @servicemesh
Personal Twitter:          @sandhillstrat

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Cloud Scars: Lessons from the Enterprise Pioneers

Editor's Notes

  • #3: NOTES: What does ServiceMesh do… ServiceMesh sells enterprise software to the Global 2000. Regarding market category… if you over-simplify it… you could say we’re a software company in the Cloud Mgmt space… although that’s a very limiting description. What ServiceMesh really does is help large enterprises adopt what we call “Agile IT operating models”. Cloud is part of this…but its much more than simply moving workloads to the cloud… which we see as very tactical… at least from an enterprise customer perspective.  The more strategic market opportunity to us is providing standardized and fully governed “as-a-service” offerings (including infrastructure and platforms), and leveraging them throughout the SDLC to compress cycle times, reduce complexity, and lower costs. This is done through a variety of ways including…. Self-service provisioning of standardized platforms and infrastructure for Dev and Test teams Software build automation… including fully automating the configuration and build of automated test environments Promoting entire deployment environments seamlessly from Dev to Test to Ops. SDLC should be more than moving the code. Should also automate the tracking, versioning, and promotion of the entire deployment environments. (Big time saver. Not constantly recreating the wheel. All assets versioned.)If you do this successfully, Developers focus more of their time writing code instead of IT trouble tickets and resources requests. And IT groups can redirect more of their time to being more innovative and business-driven.  2) That’s where our product comes in. Our software product offering is called the Agility Platform. It provides a unified governance, security, and lifecycle management layer for that portfolio of “as a service” offerings. It’s a lifecycle management platform…. so it helps automate workload planning, building, publishing, deployment and monitoring in the context of an end-to-end workflow. It also places a heavy emphasis on policy-based governance, security, and making workloads portable so they can deploy across heterogeneous internal and external clouds.  3) As a company, we’ve been working on these challenges since early 2008 with large enterprise customers. We feel fortunate to have gotten a good head start.  In many ways, we think the Agility Platform has been ahead of the market…. Particularly in terms of our lifecycle management and governance approach. I think we can attribute that to our early exposure to our enterprise customer engagements. Our first customer 3.5 years ago was a Global bank with a $1B annual IT budget… and that continues to fit the general profile of our customers ever since. They’re all Global 2000 enterprises.  4) As a company, we’ve performed very well. (3X growth, profitable)ServiceMesh closed 2010 with a third consecutive year of profitability and tripled year-over-year revenues. ServiceMesh won the coveted UP-START 2010 award for “Fastest Growing Cloud Computing Company.”To keep pace with global demand for its offerings, ServiceMesh opened or expanded offices in Los Angeles, New York City, Austin, London, and Sydney.In 2010, ServiceMesh provided six major product releases of their flagship Agility Platform 5) We’re a global company. We have customers in NA, EMEA, and AP.