1. IT SERVICE TRANSFORMATION WITH HYBRID CLOUD: BUY OR BUILD?
This presentation reviews the results of a hybrid cloud study (sponsored by EMC) by Principled Technologies, who provides industry-leading technology assessments and fact-based marketing services. Keep in mind, your results may vary. The results in this study are based on the analysis and hands on experience of Principled Technologies.
Principled Technologies Study, Sponsored by EMC, Mar 2016
Source: Principled Technologies Mar 2016 study: IT service transformation with hybrid cloud: Buy or Build?

2. TRANSFORMING IT SERVICES WITH HYBRID CLOUD
CONSIDERATIONS FOR ASSESSING THE IMPACT OF HYBRID CLOUD ON YOUR BUSINESS
What value will hybrid cloud deliver to your business?
Choosing the right path to the hybrid cloud—buy vs. build?
Cloud computing continues to gain momentum across organizations of all sizes as awareness of the technology’s compelling business agility and cost containment advantages grows. This study explores the considerations for assessing the impact of hybrid cloud on your business. First we’ll review the findings of the business value in terms of real savings and benefits a hybrid cloud can deliver to your business and then we’ll explore whether buying or building your own solution is the best path for your organization.
The results of the study contain two main parts: Business value of hybrid cloud and side by side comparison of buy vs. build approaches. The first part focuses on the business values, specifically the cost savings and benefits of hybrid cloud computing for a hypothetical enterprise of 29,550 employees and a virtualized infrastructure of 5,000 virtual machines (VMs). Principled Technologies used industry available information to calculate that this hypothetical business could realize over $41 million in savings over a three-year period. Your results certainly may vary. The second part of the study is a side by side comparison of buying the EMC Federation Enterprise Hybrid Cloud solution from EMC vs. building your own. This part of the study included first hand experience and analysis by Principled Technologies for delivering the most basic configuration of Federation Enterprise Hybrid Cloud, infrastructure-as-a-service with Avamar backup and restore capabilities vs. building your own solution. This basic configuration included workflows and 2 blueprints for provisioning Windows and Linux virtual machines.
So let’s get started.
Source: Principled Technologies Mar 2016 study: IT service transformation with hybrid cloud: Buy or Build?
© Copyright 2016 EMC Corporation. All rights reserved.

3. BENEFITS OF HYBRID CLOUD
56%
time savings due to automation and operational management
fewer hours of downtime per year 12
15– 30
days faster project delivery
50%
Hybrid cloud delivers numerous savings and business benefits. Let’s review some of the study findings:
Standardization and automated execution delivered by hybrid cloud templates through the on-demand service catalogue can significantly reduce process complexity and make resource management easier for IT staff. It’s estimated that these automation and operational management efficiencies can provide hybrid cloud administrators with 56% time savings.
Through fast, efficient self-service provisioning of IT services, the hybrid cloud enables application developers and operations teams to deliver more projects faster at a lower cost. Platform and security requirements can follow the application from development through testing and deployment, where users can access the new application through the self-service portal. It’s estimated a hybrid cloud can help business users realize a 15- to 30-day average reduction in project delivery time  per project.
A hybrid cloud offers the ability to virtualize network infrastructure and pool resources. IT can use these abilities to optimize asset utilization and reduce network and storage size and costs, saving as much as 50% of CapEx.  Via the self-service portal, users can scale resource allocation up or down as needed and without the help of IT. At the same time, automated tools can help IT identify and eliminate capacity overprovisioning or underutilization. These are critical capabilities that will help you tame and better manage infrastructure growth.
The modern hybrid cloud offers many options to minimize risks and increase resiliency. A hybrid cloud’s resiliency and data protection features also can decrease downtime, accelerate disaster recovery, and prevent security breaches. We estimate that with the hybrid cloud, you can save at least 12 hours of downtime per year  at a cost of $50,000 per hour.
Businesses that are already running workloads on the hybrid cloud are reporting significant financial benefits, an EMC-sponsored IDG Global survey reported respondents IT costs had dropped by 24 percent . Increasing the number of workloads in the hybrid cloud can help companies save even more. Those savings can drive both innovation and revenue growth. Survey respondents reported that their organizations were reallocating savings to new initiatives—including digital business technologies, including mobile tech, Internet and cloud services, social media, and predictive analytics. reports/idg-research-hybrid-cloud-white-paper.pdf
Once you decide to make the move to a hybrid cloud consumption model, the next decision is whether you should buy a solution or build it yourself.
reduction in network and storage capex
Source: Principled Technologies Mar 2016 study: IT service transformation with hybrid cloud: Buy or Build?
© Copyright 2016 EMC Corporation. All rights reserved. 3

4. BENEFITS OF FEDERATION ENTERPRISE HYBRID CLOUD
total savings over 3 years
vs. Build Your Own
savings for level 2–3 solution support
vs. Build Your Own
100%
67%
upgrade savings over 3 years
vs. Build Your Own
42% 2X
faster *ITaaS delivery
vs. Build Your Own 
Federation Enterprise Hybrid Cloud is an engineered solution with hardware and software from EMC, VCE, VMware and Pivotal. Let’s review the study findings as well as our own experience. Our customer implementations to deliver IT-as-a-Service (with VM provisioning, data protection, two sites, application services and encryption) have shown that we can typically deliver Federation Enterprise Hybrid Cloud 2 times faster than our customers can build it themselves (EHC customer council feedback March 2016). This faster time to deliver an engineered solution allows our customers to start delivering value to the business faster and more cost effectively. This was proven in the Principled Technologies study with the following findings that compared buying Federation Enterprise Hybrid Cloud vs. a build your own solution:
67% total cost savings over 3 years compared by reducing the costs related to design, implementation, level 2 and level 3 support as well as 2 upgrades – we’ve done all the engineering work so you don’t have to.
74% faster time to upgrade Federation Enterprise Hybrid Cloud vs. a build your own solution. With each release Federation Enterprise Hybrid Cloud tests upgrades from one version to the next with services to reduce risk and speed the upgrade process.
42% upgrade savings over 3 years (2 upgrades total)
100% savings for level 2 and level 3 solution support compared to a build your own solution because Federation Enterprise Hybrid Cloud provides this at the solution level providing all the hardware and software products are under maintenance. This eliminates the need for you to maintain this level of support in-house.
74%
faster time to upgrade
vs. Build Your Own 
Source: *Based on EHC customer deployments
Source: Principled Technologies Mar 2016 study: IT service transformation with hybrid cloud: Buy or Build?
© Copyright 2016 EMC Corporation. All rights reserved. 4

5. Thank you!

6. HYBRID CLOUD VS. TRADITIONAL IT SERVICES REDUCES COMPLEXITY AND INCREASES EFFICIENCIES
56%
Time savings due to automation and operational management
Standardization and automation ensure consistent delivery of IT services
FASTER DEPLOYMENTS
Avoid errors, reduce process complexity
General hybrid cloud study findings:
Hybrid cloud services are delivered via a self-service portal and catalog, enabling IT consumers to access the resources they need. For hybrid cloud services in general, the Principled Technologies analysis revealed that the standardization and automated execution delivered by hybrid cloud templates through the on-demand service catalogue can significantly reduce process complexity and make resource management easier for IT staff. The study results estimates that these efficiencies can provide hybrid cloud administrators with 56% time savings , which they can reallocate to higher-priority projects.   Additionally, automation can help avoid errors that manual processes introduce, prevent problems that can result in downtime and cost, and ensure consistent service provisioning. Finally, standardization of IT processes helps ensure that the infrastructure is compliant with best practices. All these efficiencies can yield positive effects throughout your business.
Source: Principled Technologies Mar 2016 study: IT service transformation with hybrid cloud: Buy or Build?
© Copyright 2016 EMC Corporation. All rights reserved.

7. OPTIMIZE RESOURCE UTILIZATION WITH HYBRID CLOUD
50%
Reduction in Capital Expense
10%
Savings associated with reclaiming inactive VMs
General hybrid cloud study findings:
A hybrid cloud offers the ability to virtualize network infrastructure and pool resources. IT can use these abilities to optimize asset utilization and reduce network and storage size and costs, saving as much as 50% of CapEx.  Via the self-service portal, users can scale resource allocation up or down as needed and without the help of IT. At the same time, automated tools can help IT identify and eliminate capacity overprovisioning or underutilization. These are critical capabilities that will help you tame and better manage infrastructure growth. We estimate that by reclaiming inactive VMs, you can save 10% or more of your compute costs. Additionally, the reduced infrastructure can help you use licensed resources more efficiently, potentially saving 1% to 2% of software license costs.
The smaller infrastructure of an appropriately sized, virtualized, enterprise- scale resource pool offers an OpEx advantages as well. With a smaller footprint and less hardware and software to manage, IT staff gains efficiencies, frees up facility space, and reduces power requirements. 2%
Savings in more efficient use of software licenses
Source: Principled Technologies Mar 2016 study: IT service transformation with hybrid cloud: Buy or Build?
© Copyright 2016 EMC Corporation. All rights reserved.

8. MINIMIZE RISKS AND DOWNTIME WITH HYBRID CLOUD
12 fewer hours
of downtime per year
2 less
security breaches per year
DATA RESILIENCY AND DATA PROTECTION
General hybrid cloud study findings:
The modern hybrid cloud offers many options to minimize risks and increase resiliency. It includes a variety of services for securing and protecting data, and it offers monitoring tools with analytics capabilities to identify and help you resolve problems. Such services and tools help minimize outages, reduce repair and maintenance costs, and enable easier and more efficient regulatory compliance.
A hybrid cloud’s resiliency and data protection features also can decrease downtime, accelerate disaster recovery, and prevent security breaches. We estimate that with the hybrid cloud, you can save at least 12 hours of downtime per year  at a cost of $50,000 per hour while also eliminating two security breaches annually at an estimated cost of $394,000 per breach. Finally, a hybrid cloud’s improved security and cloud efficiencies enable more effective regulatory compliance, saving you significant litigation fees and penalty costs.
Source: Principled Technologies Mar 2016 study: IT service transformation with hybrid cloud: Buy or Build?
© Copyright 2016 EMC Corporation. All rights reserved.

9. INNOVATE FASTER WITH HYBRID CLOUD
15–30 days
Faster project delivery with self-service efficiencies
DELIVER APPLICATONS FASTER
General hybrid cloud study findings:
Through fast, efficient self-service provisioning of IT services, the hybrid cloud enables application developers and operations teams to deliver more projects faster at a lower cost As a result, development-driven workloads are often the first to move to the cloud. Developers can provision their development environments as platform-as-a-service (PaaS) with the ability to easily define their service-level agreement (SLA) needs. Platform and security requirements can follow the application from development through testing and deployment, where users can access the new application through the self-service portal. We estimate a 15- to 30-day average reduction in project delivery time  per project.
Source: Principled Technologies Mar 2016 study: IT service transformation with hybrid cloud: Buy or Build?
© Copyright 2016 EMC Corporation. All rights reserved.

10. FEDERATION ENTERPRISE HYBRID CLOUD ACCELERATES IMPLEMENTATIONS FOR IAAS
92% faster
time to IaaS
than BYO
Federation Enterprise Hybrid Cloud vs. Build Your Own study findings:
(Note to presenter: As a reminder, this second part of the study is a side by side comparison of buying the Federation Enterprise Hybrid Cloud solution from EMC vs. building your own. It includes first hand experience and analysis for delivering the most basic configuration of Federation Enterprise Hybrid Cloud. The objective for both approaches was to deliver basic infrastructure services via a simple self-service catalog for provisioning Microsoft® Windows® and Linux® VMs, as well as multi-tier Linux and Windows VM applications with network isolation—all protected with Avamar backup service and restore options. The self-service catalog also needed IT services to provide cloud storage provisioning and management of the self- service backup and restore options for utilization by the cloud administrators. Integration of all of these services with cost-transparency, intelligent monitoring, and deep logging and reporting capabilities would be needed to ensure full operational visibility and control. Both Principled Technologies and the EMC delivery team used the same hardware and software to build a hybrid-ready private cloud - the comparison did not include public cloud services.)
Federation Enterprise Hybrid Cloud Accelerates Your Cloud Implementation
On the surface, it may appear cost-effective to buy new hardware components or better yet, repurpose your existing hardware. In reality, purchasing an engineered, validated, and preconfigured solution, such as the Federation Enterprise Hybrid Cloud, may actually cost less and offers advantages worthy of consideration such as preconfigured, tested and proven to meet your exact needs and specifications it reduce risks, and improves the probability of a successful outcome.   Conversely, the process of building your own hybrid cloud can be difficult, time-consuming, and prone to substantial risk.
Once all the hardware is installed at your site, the study comparing a “build your own” hybrid cloud solution and the Federation Enterprise Hybrid Cloud, Principled Technologies found that buying the EMC solution could be up and running in approximately 66 fewer weeks or 92% faster than building your own Iaas hybrid cloud.  Your own results may vary.
Source: Principled Technologies Mar 2016 study: IT service transformation with hybrid cloud: Buy or Build?
© Copyright 2016 EMC Corporation. All rights reserved.

11. FEDERATION ENTERPRISE HYBRID CLOUD ACCELERATES IMPLEMENTATIONS FOR ITAAS
2x faster
time to value
vs BYO
6 – 8 months
Federation Enterprise Hybrid Cloud
1 – 1.5 years
Build Your Own
Our own customer implementations of Federation Enterprise Hybrid Cloud take on average 6-8 months with add-on options such as data protection, multi sites, applications, encryption and integration into operational process for delivering IT-as-a-Service. Again, that’s once all the hardware is installed at your site. And our customers have told us it would take them between 1 and 1.5 years to build their own hybrid cloud solution with these same capabilities. Even though the Principled Technologies study didn’t build a solution to deliver ITaaS, their study validated much of what our customers have been telling us all along as well as our own experience has shown – EMC can deliver a hybrid cloud solution much faster than our customers can build it themselves.
Source: Based on EHC customer deployments

12. ONE CONTACT SUPPORT WITH EMC FOR FEDERATION ENTERPRISE HYBRID CLOUD
100%
Savings for level 2–3 solution support with Federation Enterprise Hybrid Cloud vs. Build Your Own
Federation Enterprise Hybrid Cloud vs. Build Your Own study findings:
(Note to presenter: As a reminder, this second part of the study is a side by side comparison of buying the Federation Enterprise Hybrid Cloud solution from EMC vs. building your own. It includes first hand experience and analysis for delivering the most basic configuration of Federation Enterprise Hybrid Cloud. The objective for both approaches was to deliver basic infrastructure services via a simple self-service catalog for provisioning Microsoft® Windows® and Linux® VMs, as well as multi-tier Linux and Windows VM applications with network isolation—all protected with Avamar backup service and restore options. The self-service catalog also needed IT services to provide cloud storage provisioning and management of the self- service backup and restore options for utilization by the cloud administrators. Integration of all of these services with cost-transparency, intelligent monitoring, and deep logging and reporting capabilities would be needed to ensure full operational visibility and control. Both Principled Technologies and the EMC delivery team used the same hardware and software to build a hybrid-ready private cloud - the comparison did not include public cloud services.)
One Contact Support
The value of support for an engineered solution should not be underestimated. Both approaches require the purchase of support for the individual components. The single contact support for Federation Enterprise Hybrid Cloud is simpler for IT staff to manage. Considering both approaches would require IT staff for level 1 support, by comparison, the burden of level 2 and level 3 support costs for the “build your own” solution could be substantial over three years. The Federation Enterprise Hybrid Cloud solution includes support as part of the solution, delivering a 100% savings compared to BYO.
Source: Principled Technologies Mar 2016 study: IT service transformation with hybrid cloud: Buy or Build?
© Copyright 2016 EMC Corporation. All rights reserved.

13. FEDERATION ENTERPRISE HYBRID CLOUD OFFERS UPGRADES WITH EASE
74%
Faster time to upgrade Federation Enterprise Hybrid Cloud vs. Build Your Own
42%
Savings over 3 years compared to Build Your Own
Engineered upgrades—tested with each release from one version to the next
BENEFITS ABOUND
Reduce risk, time, and costs per year
Federation Enterprise Hybrid Cloud vs. Build Your Own study findings:
(Note to presenter: As a reminder, this second part of the study is a side by side comparison of buying the Federation Enterprise Hybrid Cloud solution from EMC vs. building your own. It includes first hand experience and analysis for delivering the most basic configuration of Federation Enterprise Hybrid Cloud. The objective for both approaches was to deliver basic infrastructure services via a simple self-service catalog for provisioning Microsoft® Windows® and Linux® VMs, as well as multi-tier Linux and Windows VM applications with network isolation—all protected with Avamar backup service and restore options. The self-service catalog also needed IT services to provide cloud storage provisioning and management of the self- service backup and restore options for utilization by the cloud administrators. Integration of all of these services with cost-transparency, intelligent monitoring, and deep logging and reporting capabilities would be needed to ensure full operational visibility and control. Both Principled Technologies and the EMC delivery team used the same hardware and software to build a hybrid-ready private cloud - the comparison did not include public cloud services.)
Federation Enterprise Hybrid Cloud Offers Upgrades with Ease
With each release of the Federation Enterprise Hybrid Cloud solution, EMC tests and develops an upgrade service from one version to the next, providing you with proven, pre-tested upgrades and guidance. Comparatively, upgrading a BYO hybrid cloud is far more complex and lengthy. The approach requires IT testing potential changes on a pilot environment first. Once IT has successfully validated changes in the pilot, staff can move them into the production environment. The same would be true for security patches for the components. Federation Enterprise Hybrid Cloud upgrade services and guidance can be delivered 74% faster with an eliminates saving of a 42% savings compared to build your own.  Your own results may vary.
Source: Principled Technologies Mar 2016 study: IT service transformation with hybrid cloud: Buy or Build?
© Copyright 2016 EMC Corporation. All rights reserved.

14. FEDERATION ENTERPRISE HYBRID CLOUD COST SAVINGS VS. BUILD YOUR OWN
Federation Enterprise Hybrid Cloud saves more compared to Build Your Own
Includes design, implementation, level 2–3 support, and 2 upgrades
67%
Savings over 3 years
Federation Enterprise Hybrid Cloud vs. Build Your Own study findings:
(Note to presenter: As a reminder, this second part of the study is a side by side comparison of buying the Federation Enterprise Hybrid Cloud solution from EMC vs. building your own. It includes first hand experience and analysis for delivering the most basic configuration of Federation Enterprise Hybrid Cloud. The objective for both approaches was to deliver basic infrastructure services via a simple self-service catalog for provisioning Microsoft® Windows® and Linux® VMs, as well as multi-tier Linux and Windows VM applications with network isolation—all protected with Avamar backup service and restore options. The self-service catalog also needed IT services to provide cloud storage provisioning and management of the self- service backup and restore options for utilization by the cloud administrators. Integration of all of these services with cost-transparency, intelligent monitoring, and deep logging and reporting capabilities would be needed to ensure full operational visibility and control. Both Principled Technologies and the EMC delivery team used the same hardware and software to build a hybrid-ready private cloud - the comparison did not include public cloud services.)
The Principled Technologies study findings showed with the Federation Enterprise Hybrid Cloud solution vs. a build your own approach, you could save up to 67% over three years by reducing costs related to design, implementation, level 2 and level 3 support and 2 upgrades. Your own results may vary.
Source: Principled Technologies Mar 2016 study: IT service transformation with hybrid cloud: Buy or Build?
© Copyright 2016 EMC Corporation. All rights reserved.

15. FEDERATION ENTERPRISE HYBRID CLOUD
Accelerate the benefits of cloud
with Federation Enterprise Hybrid Cloud vs. building
your own solution
KEY TAKEAWAY
Federation Enterprise Hybrid Cloud vs. Build Your Own study findings:
(Note to presenter: As a reminder, this second part of the study is a side by side comparison of buying the Federation Enterprise Hybrid Cloud solution from EMC vs. building your own. It includes first hand experience and analysis for delivering the most basic configuration of Federation Enterprise Hybrid Cloud. The objective for both approaches was to deliver basic infrastructure services via a simple self-service catalog for provisioning Microsoft® Windows® and Linux® VMs, as well as multi-tier Linux and Windows VM applications with network isolation—all protected with Avamar backup service and restore options. The self-service catalog also needed IT services to provide cloud storage provisioning and management of the self- service backup and restore options for utilization by the cloud administrators. Integration of all of these services with cost-transparency, intelligent monitoring, and deep logging and reporting capabilities would be needed to ensure full operational visibility and control. Both Principled Technologies and the EMC delivery team used the same hardware and software to build a hybrid-ready private cloud - the comparison did not include public cloud services.)
The key take away from the Principled Technologies study is that Federation Enterprise Hybrid Cloud can help your business accelerate the benefits of cloud computing faster than a build your own solution.
I encourage you to read the study, including all the analysis included in the study appendixes. I’d also like to recommend as a next step we do an in- depth presentation on the solution and demonstration.
Source: Principled Technologies Mar 2016 study: IT service transformation with hybrid cloud: Buy or Build?
© Copyright 2016 EMC Corporation. All rights reserved.