BT Ireland and the Cloud - Beyond the Cloud

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BT Ireland and the Cloud - Beyond the Cloud
BT Ireland and the Cloud

            Beyond the Cloud

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BT Ireland and the Cloud - Beyond the Cloud
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BT Ireland and the Cloud - Beyond the Cloud
The Promise…
    • Ease of Use
    • New Features
    • Agility
    • Reduced Cost

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BT Ireland and the Cloud - Beyond the Cloud
It is everything you expect

    or …

    More expensive than you think
    Contracts that favour Service Providers
    Reliability issues
    New supplier relationships to manage
    Shadow IT
    Integration and Migration Issues
    New skills and knowledge required
    Challenging to manage and support

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BT Ireland and the Cloud - Beyond the Cloud
More Expensive than it appears?

       IT services are being transformed by low cost cloud services i.e. managed, multitenant, ready-
            to-use IT services (infrastructure, applications or business processes) priced per user per
            month.
       Rapid Price drops in base service costs for many services, due to standardised, multi-tennent
            services
       Examples: Email, SAP application & Infrastructure services
       Service Providers offer traditional, utility, and cloud based services

      Avoid traditional pricing models being offered by service providers – utility
      pricing seen as way forward for to achieve value for money

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BT Ireland and the Cloud - Beyond the Cloud
Price Comparison – Hosted Pay As You Go IaaS

            Benchmark 2010 Internal Cost of hosting                 Source: Gartner September 2011 (G002144010)

            1CPU-4GB RAM                                                               €4,476 per Year

            Hosted IaaS Today     Source: BT Compute Pricing April 2013

            2vCPU-1500Mhz-4GB RAM, 80Gb Disk, VM ESXi, Windows
            PAYG                                                                        €0.16 per Hour
            (PAYG annual equiv)                                                        €1,399 per Year
            Reserved Monthly                                                           €1,358 per Year
            Reserved Annually                                                          €1,169 per Year
            The extras:
            Primary Storage – 80GB                                                        €250 per Year
            Secondary Storage – 80GB                                                      €150 per Year
            Internet Bandwidth – 512Gb per month                                          €870 per Year
            Public IP Addresses – 2                                                       €425 per Year
            Total                                                                      €2,864 per Year

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BT Ireland and the Cloud - Beyond the Cloud
Price Comparison – Private Cloud Email

      Private Secure Cloud Email service for a closed community (ROI Health Sector)
      Source: BT Ireland August 2013

            No of Users                           500         1,500      2,700         5,000
            Price per user per month (3Yr term)   €25.00      €16.00     €12.75        €8.50

            Price per user per month (5Yr term)                                        €6.30

  Quick Spec:                                                   Excludes:
  •      Exchange 2013 Email, Calendar, Contacts, Task List     •   Hosting
  •      2Gb per user online (7Gb, 22Gb optional)               •   Network
  •      Webmail, IMAP, POP3 access                             •   Migration
  •      2Gb Archive per user, retained for 7 years             •   Active Directory
  •      Data Backup
  •      Email filtering and malware protection
  •      Disaster Recovery
  •      eDiscovery / Legal Hold

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BT Ireland and the Cloud - Beyond the Cloud
How to do manage and support something you don’t control?

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Negotiate your contracts

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“We’ll get to you shortly”
            Is it good enough for you?

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Get the most out of Virtualisation

            Building and running a hosted private virtualised infrastructure service.
            Source: BT Ireland August 2013

                                                                    Capital       Annual
                 Software                                           €81,000       €73,000
                 Hardware                                          €183,000       €23,000
                 Professional Services                             €110,000             -
                 Data Centre Hosting                                       -      €16,000
                 Network Bandwidth                                                €65,000
                 Support and Maintenance                                   -     €120,000
                 5 Year Total                                                  €2,189,000
                 Cost per VM per Year                                              €1,368

      Quick Spec:                                                                        Excludes:

      •     8 node 26TB infrastructure (V+C+E)       •   Dual hardware load balancers    •   Virtual machine OS
      •     Capacity for 320 small virtual servers   •   Dual hardware Firewalls and IPS •   Secondary storage / backup
      •     VMWare virtualisation                    •   Management network and servers
      •     500Mb Internet Bandwidth                 •   Single Site

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Price Comparison – Storage Virtualisation

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Look to move up the ?aaS stack

            Historically seen as a   Further agility and cost                                        Business
            necessary cost.          reduction. Removes need
                                     to manage infrastructure                                        Process
                                                                                                     (BPaaS)
                                                                                               What if the users didn’t
                                                                                               have to use IT at all?
                                                                       User
                                                                    Applications
                                                                      (SaaS)
                                                                This is were the value in IT
                                                                exists for users and the
                                                                organisation
                                          Platforms
                                            (PaaS)

              Infrastructure
                   (IaaS)

                        Cost                   IT Value                 User Value                   Business Value

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BT and the Cloud

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Setting the scene – BT corporate cloud platforms

           BT Contact
           Cloud Contact, Auto Contact

           BT One
           One Cloud, One Voice, One Enterprise, One Collaborate

           BT Assure
           Gateway services, event correlation and analysis

           BT Compute
           On Demand Compute, Private Compute

           BT Connect
           All BT Cloud services are underpinned by BT’s world class Next
           Generation Network
5 Practical Lessons

            Preparation is key to achieving your goals
            Have a roadmap that allows you to replace, not just add services. Encourage and
            support cloud services adoption amongst users. Look for utility services models.

            Plan for services aggregation, data integration and migration
            Rationalise your existing estate in preparation. Prepare your identity management,
            network, IT support applications and integration platforms for cloud.

            Get the most out of Virtualisation
            If you are going for private cloud, consider that virtualisation on it’s own will get you
            90% of your cost savings. Build in self-service to reduce user support costs.

            Look to move up the ?aaS stack
            It is the application and business process services that add value to your users.
            Platforms and Infrastructure add cost, complexity.

            Negotiate your contracts, control consumption, and watch your costs!
            Contract commercials are negotiable within limits. Costs will quickly escalate if you
            don’t work hard to manage consumption. Watch out for the hidden costs and optional
            extras.

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The Cloud needs a different, conscious approach
Understanding and safely navigating the cloud,
 knowing what works and where,
  and the practicalities of service migration, integration and support
    are the required new skills in a cloud service world.

   •“• If I had asked my customers what
           they wanted they would have
                    said a faster horse”
                                • Henry Ford
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