Norman Dee – InFocus Blog | Dell EMC Services https://infocus.dellemc.com DELL EMC Global Services Blog Wed, 21 Feb 2018 14:18:07 +0000 en-US hourly 1 https://wordpress.org/?v=4.9.2 Dell EMC Services Podcasts Norman Dee – InFocus Blog | Dell EMC Services clean episodic Norman Dee – InFocus Blog | Dell EMC Services casey.may@emc.com casey.may@emc.com (Norman Dee – InFocus Blog | Dell EMC Services) Dell EMC Services Podcasts Norman Dee – InFocus Blog | Dell EMC Services /wp-content/plugins/powerpress/rss_default.jpg https://infocus.dellemc.com How to Drive Adoption of Converged and Hyper-Converged Infrastructure https://infocus.dellemc.com/norman-dee/drive-adoption-converged-hyper-converged-infrastructure/ https://infocus.dellemc.com/norman-dee/drive-adoption-converged-hyper-converged-infrastructure/#comments Mon, 22 Jan 2018 10:00:08 +0000 https://infocus.dellemc.com/?p=33765 Converged and hyper-converged infrastructures simplify and streamline the delivery of IT services and operations. But the challenge has been in driving adoption and consumption of these infrastructures to accelerate business outcomes. It’s all about the IT operating model – the people and processes that support the converged services. A new approach is needed, one that […]

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Converged and hyper-converged infrastructures simplify and streamline the delivery of IT services and operations. But the challenge has been in driving adoption and consumption of these infrastructures to accelerate business outcomes.

It’s all about the IT operating model – the people and processes that support the converged services. A new approach is needed, one that focuses on end-to-end service delivery providing a first-rate experience for your end users.

How it’s Done

Start with an initial set of service-focused IT processes that span the service management lifecycle: from service strategy, to service design, to service construction and transition, to service operation.

Key processes that need to be considered include Service Portfolio Management, Service Catalog Management, Service Asset & Configuration Management, Request Fulfillment and Incident Management.

Then implement the processes in an automation tool to streamline operations, automate approvals, improve service quality, and enforce compliance policies.

In terms of the people, the team will need to adopt new roles and skills. Start with a set of service management roles that align to IT processes. For example, roles like Service Portfolio Manager, Service Catalog Manager, and Request Fulfillment Manager. There also may be a need of a set of infrastructure roles that align to the converged platforms. Roles like Converged Platform Architect, Converged Platform Engineer, and Converged Platform Administrator.

Just to clarify, a role is not a person. A role is a set of responsibilities and activities, and a single person can take on multiple roles. So existing IT staff can be leveraged for the new roles, staff that’s been freed-up because of the simpler IT.

Watch this video to learn about the processes and roles you need to effectively support and utilize your converged systems.

By having the right organization and processes in place you can drive adoption and consumption across the business, and have a solid foundation for your future IT initiatives.

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A New IT Operating Model for Converged Infrastructure https://infocus.dellemc.com/norman-dee/new-operating-model-converged-infrastructure/ https://infocus.dellemc.com/norman-dee/new-operating-model-converged-infrastructure/#comments Thu, 27 Apr 2017 09:00:50 +0000 https://infocus.dellemc.com/?p=31055 Converged infrastructure and hyper-converged infrastructure take away the complexity of IT management, enabling rapid service deployment, and empowering IT to spend more time on innovation and less time on maintenance. How can you capitalize on simpler IT to accelerate business outcomes? By adopting a new approach to IT operations; an approach that focuses on end-to-end […]

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Converged infrastructure and hyper-converged infrastructure take away the complexity of IT management, enabling rapid service deployment, and empowering IT to spend more time on innovation and less time on maintenance.

How can you capitalize on simpler IT to accelerate business outcomes? By adopting a new approach to IT operations; an approach that focuses on end-to-end service delivery, and provides a compelling consumption experience for your end users.

Start with a set of service-focused IT processes that will enable you to be operational with your new infrastructure. Include processes that span the full service management lifecycle: from service strategy, to service design, to service construction and transition, to service operation.

Prepare your team for new roles, including both service management roles and roles to support your converged or hyper-converged platform.

Provide the IT services that the business needs. Make it easy for users to find, request and consume these services.View the infographic below to learn more about an IT operating model that will help you get the most business value from your converged infrastructure.

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The ROI of Private Cloud: Reducing Outsourced Operations Management Costs https://infocus.dellemc.com/norman-dee/private-cloud-reducing-outsourced-costs/ https://infocus.dellemc.com/norman-dee/private-cloud-reducing-outsourced-costs/#respond Mon, 13 Mar 2017 10:00:46 +0000 https://infocus.dellemc.com/?p=30356 This blog is part of The ROI of Private Cloud series which discusses key concepts in projecting ROI, as well as the detailed analyses of three organizations looking to move to private cloud. Dell EMC Services has performed ROI analyses for dozens of organizations looking to move to private cloud, each with varying transformation scope […]

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This blog is part of The ROI of Private Cloud series which discusses key concepts in projecting ROI, as well as the detailed analyses of three organizations looking to move to private cloud.

Dell EMC Services has performed ROI analyses for dozens of organizations looking to move to private cloud, each with varying transformation scope and objectives.  Let’s take a look at one example: a premier energy company looking to move to private cloud to reduce the data center footprint as well as the cost of outsourced operations management.

Scenario

This premier energy company had 15 data centers. An external provider managed the day-to-day operations such as monitoring services and systems, patching software, and racking and stacking equipment. In order to reduce the cost of the outsourced operations, as well as overall production costs, the organization wanted to consolidate their data centers running 400 specific applications from 15 to 7.

To address this, the IT organization was looking to implement a private cloud with Enterprise Hybrid Cloud deployed on mirrored Vblock systems for seven sites of various sizes. Key characteristics included:

  • Self-service and automated provisioning to increase the speed in which IT is able to deliver services
  • Resource elasticity to optimize resource utilization delaying the purchases of additional capacity
  • Automated monitoring to improve availability as well as reduce the IT staff FTE effort
  • Backup and recovery for data protection
  • Replication and recovery for disaster recovery

Current and Target Environments

The 400 in-scope applications were hosted on 1,900 servers across the 15 sites. These applications would be migrated to seven VCE Vblock systems across seven sites.

Development of an online service catalog, and modifying IT roles and processes were not in scope for the initial deployment. The focus was on infrastructure standardization, consolidation and automation, as well as the migration of the 400 applications.

Capture Table 2

ROI Analysis

This organization was focused on the hardware and software savings, as well as reduced contract costs for outsourced operations management, that could be achieved through modernization and consolidation. There were parallel programs in place affecting the operating model and catalog services that were not included in the analysis. The metrics used to determine the ROI included run rate savings, total investment, and net savings.

Private Cloud

The projected Net Savings is $23M (38% cost savings) with an NPV of $20M. Investment costs are $18.6M, with an NPV of $17.5M. The resulting ROI is 123%, reflecting the low level of investment relative to the high run rate savings. The Payback Period is 2.4 years.

Private Cloud

Key benefits of the transformation include:

  • Consolidation of 15 data centers to seven for the in-scope applications
  • Improved efficiency through automation
  • Increased scalability with 100% server virtualization
  • 25% reduction in the contract cost for outsourced operations management

In conclusion, this organization can not only reduce their outsourced operations costs by 25%, but can achieve 38% overall operating savings. The transformation can enable them to be more flexible with data center utilization as well as be able to provide more rapid and agile services.

Learn more about the typical savings that can be achieved and see the detailed ROI analyses of other organizations in The ROI of Private Cloud: Quantifying the Cost Savings and Benefits of Moving to a Private Cloud.

Download Whitepaper

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The ROI of Private Cloud: Driving Down Operational Costs https://infocus.dellemc.com/norman-dee/private-cloud-driving-operational-costs/ https://infocus.dellemc.com/norman-dee/private-cloud-driving-operational-costs/#respond Mon, 06 Mar 2017 11:00:32 +0000 https://infocus.dellemc.com/?p=30351 This blog is part of The ROI of Private Cloud series which discusses key concepts in projecting ROI, as well as the detailed analyses of three organizations looking to move to private cloud. Dell EMC Services has performed ROI analyses for dozens of organizations looking to move to private cloud, each with varying transformation scope […]

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This blog is part of The ROI of Private Cloud series which discusses key concepts in projecting ROI, as well as the detailed analyses of three organizations looking to move to private cloud.

Dell EMC Services has performed ROI analyses for dozens of organizations looking to move to private cloud, each with varying transformation scope and objectives.  Let’s take a look at one example: a global insurance organization looking to move to private cloud to reduce operational costs.

Scenario

The main transformation objective of this global insurance organization was to reduce overall costs of their production environment. They wanted to modernize and automate as much of their IT environment as they could, and to improve operational efficiencies. They already had a high degree of virtualization and standardized service offerings. However, they had no online service catalog, and no self service capability. It typically took six to eight weeks to provision a service. Key service management processes were not in place.

IT realized they needed to improve their overall service management competence. They wanted self service capabilities and automated provisioning to drive provisioning time down to one week. They were also looking for greater elasticity, shared workloads with pooled capacity, and metered consumption of services.

To address this, the IT organization was looking to implement a private cloud with Enterprise Hybrid Cloud deployed on multiple mirrored Vblock systems for two sites. Key characteristics of the platform included:

  • Self-service and automated provisioning to increase the speed of delivering IT services at lower cost
  • Multi-tenancy to support heterogeneous environments
  • Resource elasticity to optimize the utilization of IT resources
  • Metering and chargeback to inform the business of their service utilization
  • Automated monitoring to proactively manage services and increase availability
  • Backup and recovery for Data Protection
  • Replication and recovery for Disaster Recovery

Current and Target Environments

This organization had over a 100 sites total; however, production ran in two main data centers. Virtualization was clustered with varying degrees of utilization and density. The target environment consisted of consolidated clusters in the two main data centers using VCE Vblock systems running VMware vRealize automation software.

For this implementation, 500 existing applications would be migrated to the new environment. An initial IaaS service catalog of Windows and Linux servers would be deployed. The transformation would include creating 15 new service management processes spanning the entire service management lifecycle, as well as realigning the IT organization, roles and skills to manage the new processes.

Table Capture

ROI Analysis

This organization wanted to understand the advantages of converged architectures for their major production sites. The cost of services for operating model transformation was included in the analysis to understand the total benefit. The metrics used to determine the ROI included the run rate savings, total investment, and net savings over five years.

Private Cloud
The projected Net Savings for this transformation is $14.2M (17% cost savings) with an NPV of $12.0M. Investment costs are $14.1M, with an NPV of $13.1M. The ROI is 101%, reflecting the moderate level of investment relative to the run rate savings. The Payback Period is 3.3 years.

Private Cloud

Key benefits of the transformation include:

  • Improved agility and efficiency through automation
  • Increased scalability through increased server virtualization and utilization
  • Time to provision production services reduced from  eight weeks to less than one week through self-service and automated provisioning
  • 33% of IT staff time reallocated to new initiatives

In conclusion, the analysis shows how this organization could substantially decrease operational costs, cover the costs of transitional services, increase efficiency, and gain support from both management and the lines of business to move forward with their transformation.

Learn more about the typical savings that can be achieved and see the detailed ROI analyses of other organizations in The ROI of Private Cloud: Quantifying the Cost Savings and Benefits of Moving to a Private Cloud.

Download Whitepaper

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The ROI of Private Cloud: Improving Developer Productivity https://infocus.dellemc.com/norman-dee/private-cloud-improving-productivity/ https://infocus.dellemc.com/norman-dee/private-cloud-improving-productivity/#respond Tue, 28 Feb 2017 10:00:56 +0000 https://infocus.dellemc.com/?p=30344 This blog is part of The ROI of Private Cloud series which discusses key concepts in projecting ROI, as well as the detailed analyses of three organizations looking to move to private cloud. Dell EMC Services has performed ROI analyses for dozens of organizations looking to move to private cloud, each with varying transformation scope […]

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This blog is part of The ROI of Private Cloud series which discusses key concepts in projecting ROI, as well as the detailed analyses of three organizations looking to move to private cloud.

Dell EMC Services has performed ROI analyses for dozens of organizations looking to move to private cloud, each with varying transformation scope and objectives.  Let’s take a look at one example: a regional healthcare provider looking to move to private cloud to improve developer productivity.

Scenario

This healthcare provider was looking to better support the application developers aligned to the business units. There were specific challenges that impacted their IT organization’s ability to provide the services that the development teams needed. They had no service catalog; they only had internal rate cards. There was no automation, and no self-service capability. It typically took weeks, and even months, to provision services to the project teams. As a result, the application development teams were using external vendors to get the infrastructure services needed to support development activities. IT needed way to provide their developers with an automated, self-service environment with rapid provisioning of infrastructure services meet development needs and timelines, and to discourage Shadow IT.

To address this, the IT organization was looking to implement a private cloud with Enterprise Hybrid Cloud deployed on mirrored VCE Vblock systems as the foundation for their development environment. Key characteristics of the platform included:

  • Self-service and automated provisioning to increase the speed in which IT is able to deliver services
  • Multi-tenancy to support multiple heterogeneous environments
  • Resource elasticity to optimize resource utilization delaying the purchases of additional capacity
  • Metering and chargeback to inform the business of their utilization
  • Automated monitoring to improve availability as well as reduce the IT staff FTE effort
  • Backup and recovery for data protection
  • Replication and recovery for disaster recovery

Current and Target Environments

This organization had two parallel sites that they wanted to maintain for their key application development and maintenance workloads. This included 150 existing applications across 2,000 servers that were needed to support development and maintenance activities. These 2000 servers would be replaced by two VCE Vblock systems. All 150 applications would be migrated to the new environment.

An initial Infrastructure as a Service (IaaS) service catalog of Linux and Windows servers would be deployed. The transformation included adapting existing service operation, changed control and security processes for the new environment, as well as creating a new service portfolio management process, and aligning IT and application development staff to these processes.
Table 3

ROI Analysis

This organization was pursuing a comprehensive transformation that included people, processes and technology. The analysis was based on the projected savings through improving processes, aligning the organization, as well as the cost benefit analysis of hardware and software consolidation. The metrics used to determine the ROI included the run rate savings, total investment, and net savings over five years.

Private Cloud

The projected Net Savings is $9.0M (33% cost savings over BAU costs) with an NPV of $7.6M. Investment costs, including both capital and services investments required for the transformation, are $9.4M with an NPV of $8.7M. The ROI is 96%, driven by the moderate total investment relative to the run rate savings. The Payback Period is 2.7 years.

IT Budget Impact Private Cloud

Key benefits of the transformation include:

  • Improved agility and efficiency through automated processes
  • Increased scalability and utilization through server virtualization
  • Time to provision developer services reduced from 8 weeks to 1 day through self-service and automated provisioning
  • 50% of IT staff time reallocated to new initiatives

In conclusion, the analysis shows how this organization could dramatically reduce provisioning time for developers, reducing the overall development timeline, delivering apps faster, at rates better than market. In addition, though not captured in this study, there are additional savings in the cost avoidance of paying premium pricing for shadow IT services.  Establishing a self-service catalog with transparent rates in addition to a customer focused communication plan would lead to the reduction of shadow IT spend.

Learn more about the typical savings that can be achieved and see the detailed ROI analyses of other organizations in The ROI of Private Cloud: Quantifying the Cost Savings and Benefits of Moving to a Private Cloud:

Download Whitepaper

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The ROI of Private Cloud: Key Measurements and Metrics https://infocus.dellemc.com/norman-dee/private-cloud-roi-measurements-metrics/ https://infocus.dellemc.com/norman-dee/private-cloud-roi-measurements-metrics/#comments Thu, 16 Feb 2017 10:00:02 +0000 https://infocus.dellemc.com/?p=30319 This blog is part of The ROI of Private Cloud series which discusses key concepts in projecting ROI, as well as the detailed analyses of three organizations looking to move to private cloud. Moving to a private cloud can enable significant cost savings and benefits, but the cost to get there will require investment. Projecting […]

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This blog is part of The ROI of Private Cloud series which discusses key concepts in projecting ROI, as well as the detailed analyses of three organizations looking to move to private cloud.

Moving to a private cloud can enable significant cost savings and benefits, but the cost to get there will require investment. Projecting the ROI of the transformation can help justify the costs and build consensus within IT and the business. However, determining the ROI is more than just a comparison between current and target state hardware and software costs. There are many additional factors that need to be considered which are covered here.

Business As Usual (BAU) Costs

Business without Private CloudThe first step in determining ROI is identifying BAU costs, which are the CAPEX and OPEX for the various components of the current IT environment. This includes the depreciation and maintenance costs of the hardware used in delivering services. It also includes the licensing, depreciation and maintenance costs of the software used to deliver services. Some software examples are server operating systems, utilities, subsystems, and applications. Local and wide area network costs as well as costs for the embedded network components of services need to be considered too.

Additional BAU costs include the cost of in-house IT and development staff that delivers services; the costs for power, cooling, space, physical security, remote hands, and administration of the physical sites that host services; fees paid to outside organizations that assist in supporting services, such as outsourced Help Desk support; and corporate overhead costs.

Target State Costs

Similar to BAU costs, target state costs are the CAPEX and OPEX for components of the target IT environment, including hardware, software, infrastructure, networking, facilities, staff, fees for external services, and overhead. Estimating target state costs requires a good understanding of what the target state will be.

Transition Costs to Private CloudTransition Costs

In addition to current and target state costs, the costs to get to the target state are required. Typical transition costs include the additional swing hardware and parallel systems needed to perform transformation activities.

Transition costs also include costs for additional licenses and parallel licenses. For example, the current environment may use SAP ASE (Sybase), and the target environment may use Oracle. New licenses will need to be purchased for the target database and both the current and target databases will need to be running in parallel until the transformation is complete.

Additional costs are the supplemental connectivity needed to effect the change; staff time needed to support the transformation, as well as the organization that needs to be assembled and trained; facilities needed to effect the change; and fees paid for consulting services and supplemental support, including consulting needed to train in-house staff and execute the transition.

A cost that should not be overlooked is opportunity cost. This includes the cost of projects that cannot be performed because of the resources/staffing focused on the transformation, financial investments that cannot be made because of the transformation, and the cost of funds.

Net Savings, NPV, Payback Period

In addition to ROI, there are other metrics that should be evaluated when assessing the business impact of cloud transformation. Two critical metrics are Net Savings and Payback Period.

Net Savings analysis starts with a cost-benefit analysis (CBA) to determine the total cost of ownership (TCO), capabilities and risks for the current state and for the target state. This analysis should address costs at an atomic level, for example, cost per user, cost per VM, cost per vCPU, etc. The TCO is used to calculate IT budget run rates for the current state and the for the target state.

An investment profile based on the transformation roadmap provides the capital and services investments required for the transformation. These costs, along with the target run rate costs, provide the net IT costs for the transformation. Comparing this to the current state run rate yields the Net Savings.

The analysis should also take into account the time value of money by calculating the net present value (NPV) of the investments and savings. This will show the potential investment returns in current dollars. All of the analysis should be multi-year, typically covering a five year investment period.

Payback or breakeven analysis evaluates how much time, usually expressed in years, it takes to recover the total cost of the investment (including both capital and services costs) and therefore, when the real savings from the transformation takes effect.

Cost-Benefit Analysis

Simple comparisons between current and future state costs are often the basis of business cases.  However, to accurately project the actual material effect, one must understand and include the transition costs and business opportunity over time into the equation.

Learn more about the typical savings that can be achieved and see the detailed ROI analyses for three organizations in The ROI of Private Cloud: Quantifying the Cost Savings and Benefits of Moving to a Private Cloud.Download Whitepaper

 

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Building the Business Case for Your IT Transformation https://infocus.dellemc.com/norman-dee/building-business-case-it-transformation/ https://infocus.dellemc.com/norman-dee/building-business-case-it-transformation/#comments Tue, 19 Apr 2016 12:00:20 +0000 https://infocus.dellemc.com/?p=26818 IT transformation and positioning IT as a broker of cloud services can result in significant changes to service delivery and accountability. A new IT operating model and a new way of thinking are needed for leveraging new technologies, consolidating and standardizing hardware & applications, and migrating workloads to new platforms and/or service providers. Also required […]

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IT transformation and positioning IT as a broker of cloud services can result in significant changes to service delivery and accountability. A new IT operating model and a new way of thinking are needed for leveraging new technologies, consolidating and standardizing hardware & applications, and migrating workloads to new platforms and/or service providers. Also required are new IT processes that are aligning business needs, new organizational structures and skill sets for IT staff.  All of these changes require funding. How do you build a business case to justify the transformation costs to the business?  Intuitively, we know it is more efficient.  How do we prove it?

Business Case Components

Independent of the goals of the IT transformation (e.g. technology change, process improvement, IT as a Service (ITaaS) journey, buy vs build) the components of the business case always include what the:

  • Cost would be without executing changes, or Business-as-Usual costs
  • Cost would be for executing the changes
  • Expected benefits of the changes are
  • Timeframe is needed
  • Risks are involved for both doing the changes, and not doing the changes

Business-as-Usual costs are the total cost of ownership for the current environment (hardware, software, labor, facilities, external services, network, and overhead).  Understanding those costs at a unit, atomic level, is key for comparisons.

Costs associated in executing the changes, as well as the costs of operating in the target environment, need to be determined.  This may include costs for services, additional resources (labor, hardware, software, facilities, etc.) as well as the opportunity cost.

Expected benefits could include cost savings, increased functionality, increased productivity, reduced risk, better customer relations, and faster time to market.

Timeframe spells out the stages in which the costs and benefits can be expected.  It drives the change planning milestones, provides opportunities and justifications for project controls, and sets and manages expectations.

Risks are on both sides of the equation. There are risks in not doing the changes, as well in doing potentially disruptive changes.  Some risks are quantifiable, such as fines for non-compliance and loss of service availability.  Some are subjective, such as impact to reputation due to publicized downtime or security breaches.

Cost-Benefit Analysis

Cost-benefit analysis (CBA) is what compares the costs and benefits of the current environment to the costs and benefits of the changed environment. It is the foundation for building the business case.

The first step is to identify and collect data from asset and inventory systems.  Cost models must be built for each service, including costs for hardware, software, network, personnel, facilities, external services and overhead assets.

This may sound simple and straightforward, but there are challenges with data collection in multiple sources in varied formats, accuracy, and gaps that need to be filled with industry standard data.

The next step is to determine the cost of IT transformation including running parallel systems and using services for configuration and training to accelerate the transformation.

Finally, analytical models are built to compare alternatives, including transformation costs, determining investment benefits and break-even timing.

There may be a lot of work to get to the point of being able to determine the cost benefit of transformation and its alternatives, but it will provide a solid decision base demonstrating that the efforts can be self-funded and result in lower costs of operations.

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