Cloud adoption just keeps on growing and now is the time to take control. Your enterprise cloud strategy for 2019 needs to address the broad impact of cloud use in your company. Your strategy should also cover implications for your technical processes, as well as supporting areas including finance, governance, organization, and culture.

1. PREPARE YOUR ENTERPRISE CLOUD
STRATEGY FOR 2019:
7 THINGS YOU NEED TO THINK ABOUT
NOW

2. • Kim Weins
• VP Marketing & Product, RightScale
• Now: VP Cloud Strategy, Flexera
• Bailey Caldwell
• VP Customer Success, RightScale
• Now: VP Cloud Solutions Engineering
Presenters

3. Exciting News! RightScale is part of Flexera

7. • A Multi-Cloud Mindset
• 7 Things to Think About
• People & Organization
• Culture
• Financial
• Governance
• Purchasing
• DevOps
• Operations
Agenda
6

8. Multi-Cloud is the Strategy of Choice
Multi-Cloud
85%

9. Organizations Already Use Multiple Clouds

10. Enterprises Often Use AWS + Azure
Source: RightScale 2017 State of the Cloud Report

11. RE-THINK
PEOPLE & ORGANIZATION

12. Lack of Expertise is a Key Challenge
11

13. Enterprise Create Central Cloud Teams
12

14. Cloud Architect Role Grows
13

15. • Build a separate Cloud Team or Center of Excellence
• Strong Exec sponsorship is a must
• Combine Architects, IT Ops from the get go
• Develop capabilities for cloud cost management
• Treat App Dev and Business Units as your customers
• Break down traditional compute/storage/network silos
• Include some “net new” resources with cloud expertise
Tips for Building Your Cloud Team
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16. • Fully Dedicated
• Exec Sponsor
• Cloud Architect(s)
• DevOps Engineers
• Cost Management & Governance
• Partially Dedicated
• I&O
• Application Development
• Integration/Network
• Security
• Finance
• Purchasing
Cloud Team Members/Roles
15

17. • Define and advance cloud processes and architectures. Act
as a focal point to coordinate and collaborate on cloud
decisions
• Select cloud providers and define relationships
• Define cloud architectures
• Foster DevOps processes
• Cost management and governance processes
• Coordinate with infrastructure and operations
• Create security, compliance and access management processes
• ...and more
The Role of Cloud Architect(s)
16

18. RE-THINK
CULTURE

19. • From “building infrastructure” to “enabling business value”
• From “gatekeeper” to “guardrails + governance”
• From “capacity management” to “optimization”
• Brokering and instant access
• Everything “as code” (infrastructure, policies, processes)
• Build in and test for failure (monkeys)
5 Ways Cloud Changes Your IT Culture
18

20. RE-THINK
FINANCIAL

21. Large Amounts of Wasted Cloud Spend
Multi-Cloud
85%

22. Large Amounts of Wasted Cloud Spend
Multi-Cloud
85%

23. Cost Optimization is Top Focus
22

24. 30-45% Savings
How do I execute
on an ongoing basis?

25. • It’s complicated -- millions of line items!!
• Try opening that in your spreadsheet!
• Each cloud provider bills differently
• Different services from the same cloud provider bill differently
• Ex: One cloud provider has inconsistent region naming
• Frequent updates
• Multiple times a day
• Constant change
• Cloud providers are adding new items and changing how they bill
• Think multi-cloud cost management
The Challenge of Cloud Billing
24

26. Cost Allocation for Showback
25
Priority Tags Accounts
1 env=test
2 env=prod
3 dept=qa
4 756122054
Allocation Rules
Billing
Centers
Dev
CS
Sales
Prod
Dev
Support
Demo
Marketing
Demo
Child Billing
Centers

27. • Cloud can be a mix of “CapEx” and “OpEx”
• Some companies may be able to capitalize parts of cloud spend
(Reserved Instance purchases, contractual commitments)
• OpEx requires a new approach
• From “approval and ROI” to “continuous optimization”
• Optimize now, saves me money immediately
• Finance/accounting teams need to shift their mindset
• Will GAAP rules evolve?
A Shift from CapEx to OpEx
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28. Setting up a Cost Optimization (Sub) Team
27
Executive Sponsorship
Cost
Analyst
Project
Manager
Cloud
Technical
Expert
Cloud Resource Owners (Teams, LOBs, BUs)

29. RE-THINK
PURCHASING

30. Don’t Overcommit to Variable Usage
Usage commitments for discounts
x% coverage of steady state
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On-demand usage

31. RIs Are Not Always the Best Way to Save
30
Savings for RI based on
m5.large running Linux
in US East.
RI savings will vary
based on instance type
and region

32. • Get comfortable with cloud provider contracts
• Joint responsibility for SLAs & Security
• Less room for negotiating key terms
• Multi-cloud provides negotiating leverage
• Make sure IT/Dev are architected for portability
• Don’t overbuy for larger discounts
• Purchase discounts only based on go-forward steady state levels
• Hold IT and cloud consumers accountable for efficiencies
• Optimize today for lower cloud bill next month
To Dos for the Purchasing Team
31

33. RE-THINK
GOVERNANCE

34. • Cost
• Access control
• Network security
• Configuration management/patching
• Data security
• Business continuity (HA/DR)
• Performance
• Compliance
• Audit
• Standards
Governance: Do the same things, differently
33

35. Multi-Cloud IAM
34
User BUser A User EUser DUser C
Enterprise Account
Cloud
Account
Cloud
Account
Cloud
Account
Cloud
Account
Cloud
Account
Cloud
Account
Account 2Account 1
RightScale
Access
Control
Authorization
Authenticate with cloud
credentials
ADFS
Active
Directory
Authentication

36. Implement Automated Policies Across Clouds
35

37. Breaking Down a Policy

38. From Alert Only to Fully Automated Resolution
37
Alert only
Alert
Approval
Automated
resolution
Fully
automated
resolution
Move toward full automation as you gain confidence in policy conditions

39. RE-THINK
DEVOPS

40. • You need automation to gain benefits of cloud:
• Accelerate time to market
• Shut instances down when not in use (nights, weekends)
• Auto-scale up or down
• Adjust instances sizes when underutilized
• Expand/move to other regions
• Move to other clouds
• You need automation to manage applications in cloud:
• Respond to instances that die
• Avoid or recover from failures/outages
• Address security vulnerabilities.
• ...and more
The Cloud is “About” Automation
39

41. DevOps Spans Resource Pools
VIRTUAL
SERVERS
PUBLIC
CLOUDS
DESKTOPS/
LAPTOPS
PRIVATE
CLOUDS
BARE METAL
SERVERS
CONTAINER
CLUSTERS
MULTI-CLOUD ORCHESTRATION

42. Some Key Elements of DevOps
41
Processes Tools
Self-Service access to infrastructure CMP (RightScale), ITSM
Continuous integration/delivery Github, Jenkins, Travis
Configuration management Chef, Puppet, Ansible, Terraform
Containerization Docker, Swarm, Kubernetes
Continuous monitoring NewRelic, Datadog

43. CI/CD
Communications
ITSM / CMDB / Tcketing
Alerts & Monitoring
Reporting / Dashboards
Collaboration
A CMP Ties it All Together
42

44. RE-THINK
OPERATIONS

45. NoOps: Defined
44
The goal of completely automating the
deployment, monitoring, and management
of applications and the infrastructure on
which they run.
Source: Forrester

46. NoOps: The Role of Operations Changes
45
Ad Hoc
Action
Repeatable
Automation
Old Ops NoOps

47. NoOps: The Role of Operations Changes
46
Situation Old Ops NoOps
Request for a new server Fulfill request once
approved
Automated self-service for
requester within guardrails
Server overloaded Add a server Autoscaling array
Server failed Reboot Detect and auto-reboot
New code ready Push code to production Trigger automated push once
tests are completed
Need a backup on dev Take a snapshot Push button snapshots on dev

48. • Cloud Account Provisioning
• Dev/Test Environment Provisioning
• Infrastructure Provisioning
• Code Deployment
• Application Operations
• Self-Healing
• Automated Policies
• ...and more
Automation: More than App Provisioning
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49. Contact sales@rightscale.com for more info
Q&A
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