Managing Hybrid IT through Cloud Service Brokerage Kevin L. Jackson Vice President and General Manager, NJVC Cloud Services TechGate 2013 September 21, 2013

A New Approach For IT: Cloud Service Integration  Build your new cloud ecosystem  Embrace hybrid IT and recognize various stakeholder needs  Use a IT supply chain management paradigm  Complement and extend current IT infrastructure  Expect change and plan for it NJVC, LLC Proprietary Data. Do Not Distribute 2

Cloud VAR Cloud builder Cloud enabler Cloud integrator Cloud infrastructure provider SaaS provider Cloud Broker Modified from Forrester: August 10, 2011 “Cloud Broker — A New Business Model Paradigm” 3 Cloud Services Ecosystem Hosting Provider Pure ISV software Pure consulting Transitioning to Cloud Requires a New IT Ecosystem and Operational Model–Hybrid IT

Adopting Cloud and Hybrid IT: Problems for Government and Commercial Enterprises 4 Public Clouds Managed Services Private Clouds ITO A D B C Fortune 500 Enterprises Agency, Business and IT Users CFO Cloud Admin CIO Secure Cloud Services and Ops Integration No One Way to Manage Financial Transactions for Cloud B2B Contracts Multiple Providers Control and Alignment Access, Solution & Consumption 

Cloud Services Brokerage Provides IT Supply Chain Management 5 Infra Perf Management App Perf Management Backup Management Security Monitoring Managed UpdatesDisaster Recovery Managed Services Clouds Consulting/Operations Public IaaS Private PaaS SI Private Cloud Secure, Enterprise Cloud Savvis Public Cloud DR Cloud Amazon Public Cloud Test/Dev Cloud Private IaaS For the Broker: Enhance the merchandizing and ordering experience Improve customer satisfaction Make it easier to do business with cloud and managed services providers ITaaS Products For Agencies/Biz: Fast IT Easy to use Cost visibility Choice Flexibility Control Cloud and IT Services Provider Ecosystem

Cloud Services Brokerage Complements Cloud Management Platforms 6 Commerce Broker Catalog and Pricing Engine Sourcing and Procurement Engine Solution Design and Matching Cloud Services Broker CIO and CFO Command and Control External Service Provisioning Engine IT Architects Public Iaas Paas Public Providers VMWARE Cloud FoundryGreenPlum AWS, Terremark, Savvis vBlock VMWARE Cloud Automation Hybrid Cloud Management Self-Service Catalog ITSM Service Request Catalog Open Stack Enterprise (Private Cloud) Typical Enterprise Platform Workflow Mgmt. CIO/CFO Sourcing/Procurement Mgrs Systems Integrator

Cloud Services Brokerage Supports Entire Cloud IT Lifecycle and drives Operational Excellence 7 Compare applications Identify target infrastructure Estimate readiness and value of cloud Select candidate application Screen Define capacity Estimate migration ROI Build migration business case Project migration roadmap Plan Define environments Design arch layers Simulate application architecture Estimate monthly bill of materials Configure Approve bill of materials Approve Ts & Cs Submit aggregated order Instantiate and deploy resources Source Monitor resource use Monitor periodic spend Ensure provider compliance Execute recalibration when needed Govern Recalibrate and Optimize

Transition Challenges: Learn from Uncle Sam!!  Focus on mission or business, not technology  Organizations of any size will use multiple clouds  Normalize technical capabilities and prices when comparing cloud services provider offerings  Holistically managing and monitor cloud services providers  Avoid vendor lock in  Realize the full economic and operational value of cloud computing  Understand and eliminate hidden costs associated with cloud 2

Use Case: The State of Texas 9 Ancillary Services Application Workload Portfolio State Agencies Cloud Services Broker CTO/IT Architects Cloud design (app arch, service agg & capacity model) Sourcing & Procurement Managers Spend Analysis & Order Mgmt Cloud Ecosystem Operator State of Texas CIO Command & Control IT Ops Mgrs & Sys Admins Dashboards Resource Mgt Cloud Onboarding, Managed Services Market Management Managed Service Providers VAR/ System Integrator  Four agencies currently operating in this model  Saved 30 – 50% in infrastructure costs when compared with internal data center costs  Improved agility to onboard to cloud by more than 5X Gravitant cloudMatrix platform Commodity Cloud AWS Enterprise Cloud Savvis Terremark Security Services Gazaang Security Certificate VPN Managed Services Backup monitoring with 3 rd providers

Use Case: NCOIC Geospatial Community Cloud Demonstration 10

70% of IT Organizations Believe Cloud Lowers Costs 1, but Leakage Eats Away at Promised Savings 11 Leakage reduces cost savings 8% actual cost savings 57% promised savings Sources of Cloud LeakageOther Key Challenges 1.The cloud takes shape - Global cloud survey: the implementation challenge, KPMG, January Technical complexity “Phonebooks” of APIs Uncertain availability and performance Shortcut design and approval cycles because cloud is “too” fast and easy increases risk Sourcing complexity Apples to oranges sourcing choices Constantly changing pricing/packaging Different and complex bills Financial complexity Identifying pricing arbitrage Financial “leaking faucets” from sprawl Hard to view actual costs and predict future costs

Cloud Service Brokerage: A Practical Path to Cloud Computing 12  Easy to Use and Manage  Solution Design and Matching  Automated Sourcing and Billing  Pricing Arbitrage and Optimization  Closed-Loop Decision Support  Risk Reduction

 When adopting the cloud computing model or hybrid IT, large enterprises also need to consider cloud services brokerage ad integration  Cloud services brokerage is the step key step towards IT supply chain management and operational excellence  Cloud services brokerage is a proven model that delivers real value  Cloud services brokerage is practical and can reduce the risk of transitioning to the cloud Lessons Learned: 7

Questions and Answers 8

Thank You Kevin L. Jackson Vice President & General Manager NJVC Cloud Services