2. WEBINAR Digital Differentiation Begins With Your Data Center Strategy
Sophia I. Vargas, Analyst
April 15, Call in at 12:55 p.m. Eastern time

3. Agenda
The enterprise data center in 2015
Priorities, drivers, and investments
Customer focus reshapes physical architectures.
Design your physical strategy to support your BT agenda

4. Welcome to the connected world
Cisco projects 3.6 billion people will be online in 2017 (48% of the population)
IBM estimates that 15K new mobile apps are created every week
Sources:
Cisco (
IBM (
EMC (
EMC estimates 20 billion “things” were connected to the internet in 2013, expected to grow to 32 billion by 2020
Source: October 31, 2013, “Mapping The Connected World” Forrester report

5. Will Moore’s law keep pace with accelerating demand?
Image source: Forbes (

6. Cloud and storage spending increase
How do you expect your firm's spending on the following IT infrastructure expenses to change over the next 12 months?
Base: 1,039 technology decision-makers at North American and European Enterprises
Source: Forrester’s Business Technographics® Global Infrastructure Survey, 2014

7. Reduce complexity, increase efficiency
“Which of the following initiatives are likely to be your firm’s/organization’s top hardware/IT infrastructure priorities over the next 12 months?”
New, expanded sites
Consolidation
Virtualization
Higher densities
Business continuity
Multiple sites
Higher, uniform densities
Cloud
Base: 1,039 technology decision-makers at North American and European Enterprises
Source: Forrester’s Business Technographics® Global Infrastructure Survey, 2014

8. What percentage of infrastructure do you maintain in owned facilities?0%
50%
100%

9. Shed responsibilities strategically
“What percentage of your infrastructure is in the following categories?”
*Asked in 2014 for a four-year projection
Base: Hardware decision-makers at enterprises;
Source: Forrester’s Business Technographics Global Infrastructure Survey, 2014 and Forrester’s Forrsights Hardware
Survey, Q3 2013

10. Growing interest in efficient hardware
Source: February 17, 2015, “Bolster Your Brand With A Greener Technology Ecosystem” Forrester report

11. . . . but motivations extend beyond cost
reduction
Risk
mitigation
Shareholder
value
Grow revenue
72% of companies in the S&P 500 produced reports on their sustainability efforts in 2013, up from only 20% in 2011

12. Businesses focus on the customer
Source: February 3, 2014, “Predictions For 2014: Technology Monitoring” Forrester report

13. . . . whose expectations continue to rise
Speed: Performance, time to value
Mobility: Anytime, anywhere, on any device
Context: Proactive personalized analytics in the moment of decision
. . . not to mention, reliable and secure

14. Leaders create new engagement models
Source: February 13, 2012, “Mobile Is The New Face Of Engagement” Forrester report

15. Now the business expects you to:
Rapidly deliver new products, services, and updates
Support a multi-touchpoint digital strategy
Maintain service quality across interaction points
Provide a self-service interface for internal and external customers
Image source: University of San Diego (

16. Your data center strategy must be:
Agile and scalable.
Geographically accessible.
Always-on and always-available.
Optimized and efficient.
Image source: Wofford blogs (

17. Success depends on the full supply chain
Source: February 2, 2015, “Service Design Is Your New Approach To Infrastructure” Forrester report

18. Where does your data want to live?

19. Yesterday: build or colocate?

20. Today: build, colocate, managed services, outsource, or cloud?
Own and operate data center
Own data center and outsource operations
Colocate data center
Infrastructure outsourcing/managed services/ hosting
IaaS/Cloud or strategic right sourcing
Less managed
More managed

21. SoE characteristics challenge traditional architectures
Interactions replace transactions
Large quantities of data, most of it external
Consumer of processed data may also be external
Multiple external sources of data

22. The conundrum: upside-down architecture
Source: July 25, 2014, “Evolve Your Infrastructure Architecture For Systems Of Engagement” Forrester report

23. Physical strategies shift to CX focus
Centralized
Distributed
Consolidation
Operational efficiency
Service
quality
User proximity
What location will yield the best overall processing flow?

24. Many will rely on multiple environments

25. Third-party data center supply increases
Source: July 25, 2014, “Consider Colocation As A Key To Your Holistic Data Center Strategy” Forrester report

26. Cloud markets expand and mature
Global public cloud purchases will rise from $72 billion in 2014
to $191 billion in 2020
Spending on SaaS as a replacement will soon exceed SaaS as a complement
Source: April 24, 2014, “The Public Cloud Market Is Now In Hypergrowth” Forrester report

27. Keep in-house or outsource?
Internal
Managed
Longer road to change
Control kept in-house
Leverage existing facilities and hardware
Leverage existing application purchases
Regulatory compliance
Faster time to value
Outsourcing apps to strategically use workforce more effectively
OpEx model rather than large refresh exercises
Simplified procurement and capacity planning
Integrated DR capabilities

28. What about cloud infrastructure?
On and off
Test environments
Disaster recovery
Batch processing
Increasing
New service introduction
Acquisition
Unpredictable
Promotional websites
B2C and B2B applications
Cyclical
LOB applications
End-of-x reporting

29. Understand sourcing characteristics
Colocation
- You don’t want the upfront expense.
- You need multiple locations or a DR site.
- You don’t have the in-house expertise.
- You need access to multiple network carriers and/or high amounts of bandwidth.
Build
- You need 100% control
- Your apps cannot run remotely.
- You require nonstandard environment.
- A tier-III or IV data center is overkill.
Managed services
- Advantages of colocation, plus…
- You run commodity applications on standard infrastructure.
- You want a provider to manage IT infrastructure as well.
Cloud
- Applications are built to scale up and down easily.
- Application load is variable
- You only want to pay for what you use.

30. Cost still dominates the business case

31. Start by profiling your applications
Source: February 10, 2015, “Justify Your Hybrid Cloud Future With A Solid Business Case” Forrester report

32. Master cloud economics
Source: May 22, 2012, “Drive Savings And Profits With Cloud Economics” Forrester report

33. Embrace the hybrid end game
Decision tree
Workload management
GRC
Internal cloud
Virtual
Physical
Trade out
Virtual hosting
Public cloud
Common
Custom
OpEx
Flexible OpEx
Transient
Fixed
Metered
Owned
CapEx
Common
Transient
Metered
Custom
Fixed
Owned

34. Next challenge: Combine disparate solutions into one dynamic ecosystem
Your data center
Private Cloud

35. Develop a holistic strategy
Refine your application road map.
Establish secure and seamless integrations.
Centrally monitor and govern cloud usage.
Manage cultural shift.

36. Key takeaways
Align data center strategy to business outcomes: Ensure agility, flexibility, and performance
Focus on service quality: Consider strategies that bring compute closer to customer
Strategically incorporate third-party services: Focus on your differentiating services
Bolster your brand with superior services and sourcing transparency.

37. Physical strategy dictates user experience
Goal: design and support customer-facing services in a dynamic environment dominated by mobility and big data
Source: October 9, 2014, “Strategically Locate Your Next Data Center” Forrester report

39. Sophia Vargas