3 Must Have Steps for IT to Maintain Relevancy in a Cloud World
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1) IT departments must take 3 steps to maintain relevancy in a cloud world: empowering themselves through a service catalog, innovating with a cloud-first mindset, and transforming to become business advisors. 2) Steve Mills, CIO of Rackspace, faced challenges like recruiting talent and managing complex environments on a limited budget with increasing demands. 3) Steve realized shadow IT was fueling innovation and empowering the business outside of IT's control. He chose to transform IT's role by adopting a service provider mentality to meet business needs.
3 Must Have Steps for IT to Maintain Relevancy in a Cloud World
- 1. EMPOWER INNOVATE… TRANSFORM… 3 Must-Do Steps for IT to Maintain Relevancy in a Cloud World Presented By: Lisa Larson VP of Enterprise Cloud Solutions
- 2. About Me… lisa.larson@rackspace.com www.rackspace.com Lisa Larson Vice President Enterprise Cloud Solutions Rackspace Hosting RACKSPACE® HOSTING | W W W.RACKSPACE.COM 2
- 3. The 3 Must Do Steps For IT EMPOWER INNOVATE TRANSFORM RACKSPACE® HOSTING | W W W.RACKSPACE.COM 3
- 4. Meet Steve Mills… • Rackspace CIO • He serves 5,000 Technically Savvy Rackers • He is facing Exponential Company Growth – Acquisitions – On-boarding new employees RACKSPACE® HOSTING | W W W.RACKSPACE.COM 4
- 5. Steve’s Chief IT Challenges Recruiting and IT is capital retaining talent intensive is problematic The business Managing expects near increasingly instantaneous complex delivery environments is difficult Demand for IT Juggling Legacy services and New App exceeds supply Development RACKSPACE® HOSTING | W W W.RACKSPACE.COM 5
- 6. Rackers Provide Fanatical Support… And, EXPECT Fanatical Support CONSUMERIZATION of IT Instant CPU… Instant Storage… Instant Provisioning… Instant Gratification! “I DON’T CARE HOW… • BYOD I WANT IT NOW!” • Mobility • DIY Cloud RACKSPACE® HOSTING | W W W.RACKSPACE.COM
- 7. Rackers Began to Find Their Own Solutions We need… SPEED, AGILITY & FLEXIBILITY Service Provider Business Unit WE CAN’T HELP YOU 80% of our IT spend & resources are devoted to “keeping the lights on” Internal IT Department RACKSPACE® HOSTING | W W W.RACKSPACE.COM 7
- 8. Like Many IT Leaders… Steve Knew He had Shadow IT 43% of IT Decision Makers know they have Shadow IT in their organization. Business units are leveraging cloud computing to help with work projects. 38% of IT Decision Makers said the main reason is to save time One in three said it was because internal solutions were not available or because they did not want to deal with the IT department. RACKSPACE® HOSTING | W W W.RACKSPACE.COM Source: McLaughlin & Assoc, national online survey (per San Antonio Business Journal June 25, 2012), conducted among 500 IT decision-makers, who work for businesses or organizations that use cloud computing.
- 9. Steve Knew the Dangers of Shadow IT… Unsanctioned Use Weakened Spending of Cloud Control • Loss of Control/Governance • Lack of Negotiated Terms • Security Breaches • Diminished Liabilities Control • Compliance Penalties • Misclassification of Spend • Lost Revenue • Profit Erosion • Brand Deterioration • Spend Ignorance • Loss of Business IP • Vendor Contract Lock-in RACKSPACE® HOSTING | W W W.RACKSPACE.COM
- 10. Steve Had a Choice… IT Dept. Overwhelmed by demand BUs follow the shortest IT CMO takes over IT and easiest path budget Struggling to meet business needs BUs leverage Service IT no longer brings Provider to solve value to the org 80% of time dedicated to business needs keeping lights on Organizational downsizing ensues The role of IT is no longer just project/architecture based. IT Strategy must be built on adding business value! RACKSPACE® HOSTING | W W W.RACKSPACE.COM 10
- 11. Steve Needed to Adopt a New Way of Thinking Virtualization is a TECHNOLOGY … Cloud Computing is a BUSINESS MODEL RACKSPACE® HOSTING | W W W.RACKSPACE.COM 11
- 12. Steve Needed to Find a Safe Way to Leverage Shadow IT Create New Procedures BUILD A SERVICE CATALOG Set guardrails for the business. RACKSPACE® HOSTING | W W W.RACKSPACE.COM
- 13. Now Steve is Fueling the Innovation Engine Cloud First Mindset RACKSPACE® HOSTING | W W W.RACKSPACE.COM
- 14. Steve is on the Path of Transforming IT the Business of IT IT Dept. Adopting a Service Partner to the Provider Mentality Business Overwhelmed by Enable a service catalog through CIO becomes an Advisor to demand a Service Provider the Business Struggling to meet Empower a self-service IT working on game- business needs organization changing, strategic 80% of time dedicated Create an army of innovators initiatives to keeping lights on Free IT resources to focus on Demands of the Business business value are met RACKSPACE® HOSTING | W W W.RACKSPACE.COM 14
- 15. Shadow IT is Now Steve’s Best Friend • Empowers a self-service organization • Spurs Innovation more projects into idea funnel • Provides strong POC environments to vet CAPEX spend • Frees IT Resources… IT is now focused on where they provide business value … in the APPS RACKSPACE® HOSTING | W W W.RACKSPACE.COM 15
- 16. The 3 Must Do Steps For IT EMPOWER: IT AS A SERVICE INNOVATE: CLOUD FIRST MINDSET TRANSFORM: IT AS BUSINESS ADVISORS RACKSPACE® HOSTING | W W W.RACKSPACE.COM 16
- 17. IT Transformation Framework Step by step approach to adopting cloud Customer Data Center Design IT Application Cloud POC Migration Solution Evolution Profiling Readiness Pilot Services Online Workshop Workshop Assessment Architecture Migrate Strategize & Assess Design Support & Optimize Implement Governance Planning & Customer Maturity Evolution RACKSPACE® HOSTING | W W W.RACKSPACE.COM
- 18. Get SMART on Cloud Recommended Industry Resources: Recommended Rackspace Resources: • The Big Switch, Nicholas Carr • Cloud: Vision to Reality whitepaper • Cloud: Economics whitepaper • Cloudonomics: The Business Value of Cloud • Take the Cloud Readiness Self Assessment Computing, Joe Weinman • Rackspace Cloud Tools Marketplace • Use cases: • http://gigaom.com/ – Hybrid Hosting: Dominos Pizza and watch the video – RackConnect™: VEVO and watch the video • www.gartner.com – Private Cloud: Lighthouse1 • www.forrester.com – Advisory Services: Acquity Group • www.idc.com Rackspace Knowledge JOIN US! Center “Our goal is to create the most CLOUD SAVVY customers in the industry” RACKSPACE® HOSTING | W W W.RACKSPACE.COM 18
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