1. Proprietary and Confidential, Copyright © 2014 Gravitant, Inc. Gravitant Proprietary & Confidential Cloud Provider Portfolio Selection Ilyas Iyoob, PhD Director, Advanced Analytics Aaron Yan, M.S. Operations Research Analyst Selecting a set of providers to support the full application portfolio

2. Proprietary and Confidential, Copyright © 2014 Gravitant, Inc. Gravitant Proprietary & Confidential Case Study 2 Large IT Services Company 3,500 million (2013) 18,000 worldwide Legal Tax & Accounting Finance & Audit Risk & Compliance Healthcare Ops Over 35 countries in: Europe Asia Pacific North America Latin America RevenueEmployeesMarketsOperations Question 1

3. Proprietary and Confidential, Copyright © 2014 Gravitant, Inc. Gravitant Proprietary & Confidential Question 1 - Which apps should be moved to the cloud? 3

4. Proprietary and Confidential, Copyright © 2014 Gravitant, Inc. Gravitant Proprietary & Confidential Question 1 - Which apps should be moved to the cloud? 4 … ~ 500 apps

5. Proprietary and Confidential, Copyright © 2014 Gravitant, Inc. Gravitant Proprietary & Confidential Question 1 - Which apps should be moved to the cloud? 5 … ~ 500 apps Gravitant’s Cloud Screener helps answer this question http://www.gravitant.com/product-features/cloud-application-assessment/

6. Proprietary and Confidential, Copyright © 2014 Gravitant, Inc. Gravitant Proprietary & Confidential Question 1 - Which apps should be moved to the cloud? 6 … ~ 500 apps Example: TyMetrix and BankOrion should not be moved to the cloud because: -TyMetrix is a core business app for this company, so it should be kept in-house -BankOrion has financial data that is subject to very high compliance requirements Not all apps should move to the cloud – in fact, 50 of them shouldn’t

7. Proprietary and Confidential, Copyright © 2014 Gravitant, Inc. Gravitant Proprietary & Confidential Question 1 - Which apps should be moved to the cloud? 7 … ~ 500 apps More on application screening some other time. Let’s focus on the next question which is the focus of this case study… Question 2

8. Proprietary and Confidential, Copyright © 2014 Gravitant, Inc. Gravitant Proprietary & Confidential Question 2 - Which provider should be selected for each app? 8

9. Proprietary and Confidential, Copyright © 2014 Gravitant, Inc. Gravitant Proprietary & Confidential Question 2 - Which provider should be selected for each app? 9 … ~ 500 apps

10. Proprietary and Confidential, Copyright © 2014 Gravitant, Inc. Gravitant Proprietary & Confidential Question 2 - Which provider should be selected for each app? 10 … ~ 500 apps 8 regions 2 region s 13 regions 4 region s ~ 20 providers …

11. Proprietary and Confidential, Copyright © 2014 Gravitant, Inc. Gravitant Proprietary & Confidential Question 2 - Which provider should be selected for each app? 11 … ~ 500 apps 8 regions 2 region s 13 regions 4 region s ~ 20 providers … Solution Methodology Solution Methodology

12. Proprietary and Confidential, Copyright © 2014 Gravitant, Inc. Gravitant Proprietary & Confidential Question 2 - Which provider should be selected for each app? 12 Current Solution: Solve each app individually Gravitant’s Cloud Compare http://tools.gravitant.com/cloud-compare-for-cloud-applications/

13. Proprietary and Confidential, Copyright © 2014 Gravitant, Inc. Gravitant Proprietary & Confidential Question 2 - Which provider should be selected for each app? 13 Current Solution: Solve each app individually Gravitant’s Cloud Compare http://tools.gravitant.com/cloud-compare-for-cloud-applications/ Suggested Solution: Solve for entire application portfolio simultaneously To account for - Dependent apps that should be placed together - Conflicting apps that should be placed apart - DR environments that should be placed apart from Prod environments - Volume discounts from providers

14. Proprietary and Confidential, Copyright © 2014 Gravitant, Inc. Gravitant Proprietary & Confidential Question 2 - Which provider should be selected for each app? 14 Current Solution: Solve each app individually Gravitant’s Cloud Compare http://tools.gravitant.com/cloud-compare-for-cloud-applications/ Suggested Solution: Solve for entire application portfolio simultaneously To account for - Dependent apps that should be placed together - Conflicting apps that should be placed apart - DR environments that should be placed apart from Prod environments - Volume discounts from providers Few providers (high vulnerability) Many providers (low tractability) vs Tradeoff

15. Proprietary and Confidential, Copyright © 2014 Gravitant, Inc. Gravitant Proprietary & Confidential 15 Apps Providers Problem Statement

16. Proprietary and Confidential, Copyright © 2014 Gravitant, Inc. Gravitant Proprietary & Confidential 16 Apps Providers Problem Statement Assign providers to apps so the constraints are satisfied while minimizing cost Constraints Coverage Performance Apps together Apps apart

17. Proprietary and Confidential, Copyright © 2014 Gravitant, Inc. Gravitant Proprietary & Confidential 17 Apps Providers Problem Statement Assign providers to apps so the constraints are satisfied while minimizing cost Constraints Coverage Performance Apps together Apps apart In other words, fill this table out so nothing breaks! and maybe save some money too… Formulation

18. Proprietary and Confidential, Copyright © 2014 Gravitant, Inc. Gravitant Proprietary & Confidential Mathematical Formulation 18

19. Proprietary and Confidential, Copyright © 2014 Gravitant, Inc. Gravitant Proprietary & Confidential Mathematical Formulation 19 Minimize cost of operating in the cloud Satisfy performance requirements of every app Meet coverage needs for every app Group apps that need to be on the same infrastructure Split up apps that need to be on separate infrastructures Assign every app to some provider Result

20. Proprietary and Confidential, Copyright © 2014 Gravitant, Inc. Gravitant Proprietary & Confidential 20 Apps Providers Result

21. Proprietary and Confidential, Copyright © 2014 Gravitant, Inc. Gravitant Proprietary & Confidential 21 Apps Providers Most apps can be in AWS except for a few. Impact Result

22. Proprietary and Confidential, Copyright © 2014 Gravitant, Inc. Gravitant Proprietary & Confidential 22 Apps Providers Most apps can be in AWS except for a few. MarkLogic and IntelliConnect have been put in Azure because its incremental VM sizes are better than AWS. Impact Result

23. Proprietary and Confidential, Copyright © 2014 Gravitant, Inc. Gravitant Proprietary & Confidential 23 Apps Providers Most apps can be in AWS except for a few. MarkLogic and IntelliConnect have been put in Azure because its incremental VM sizes are better than AWS. Oracle needs to be apart from others for data security, so it ends up in Google. Impact Result

24. Proprietary and Confidential, Copyright © 2014 Gravitant, Inc. Gravitant Proprietary & Confidential Impact 24 Radical Approach (everything on AWS) $571k/month 87% coverage Customer had significant shadow IT with AWS *Coverage: capabilities and feature sets of a CSP that are needed for specific applications to function optimally

25. Proprietary and Confidential, Copyright © 2014 Gravitant, Inc. Gravitant Proprietary & Confidential Impact 25 Radical Approach (everything on AWS) Conservative Approach (everything on Azure) $571k/month 87% coverage $684k/month 100% coverage Customer had significant shadow IT with AWS Customer’s existing environments were Windows based *Coverage: capabilities and feature sets of a CSP that are needed for specific applications to function optimally

26. Proprietary and Confidential, Copyright © 2014 Gravitant, Inc. Gravitant Proprietary & Confidential Impact 26 Radical Approach (everything on AWS) Conservative Approach (everything on Azure) Optimal (80% AWS, 7% Google,13% Azure) $571k/month 87% coverage $684k/month 100% coverage $553k/ month 100% coverage Customer had significant shadow IT with AWS Customer’s existing environments were Windows based *Coverage: capabilities and feature sets of a CSP that are needed for specific applications to function optimally

27. Proprietary and Confidential, Copyright © 2014 Gravitant, Inc. Gravitant Proprietary & Confidential Conclusions 27 Practical conclusions ▫ Realized savings of 15-20% per year This equates to $1.5M saved per year (from just 15 apps). Replicate this exercise for the rest of the 450 apps to realize much more savings!

28. Proprietary and Confidential, Copyright © 2014 Gravitant, Inc. Gravitant Proprietary & Confidential Conclusions 28 Practical conclusions ▫ Realized savings of 15-20% per year Theoretical conclusions ▫ Coverage constraints simplify the problem ▫ Performance constraints simplify the problem ▫ Apps together constraints simplify the problem ▫ Apps apart constraints complicate the problem This equates to $1.5M saved per year (from just 15 apps). Replicate this exercise for the rest of the 450 apps to realize much more savings!

29. Proprietary and Confidential, Copyright © 2014 Gravitant, Inc. Gravitant Proprietary & Confidential Conclusions 29 Practical conclusions ▫ Realized savings of 15-20% per year Theoretical conclusions ▫ Coverage constraints simplify the problem ▫ Performance constraints simplify the problem ▫ Apps together constraints simplify the problem ▫ Apps apart constraints complicate the problem A full survey of Operations Research problems in Cloud Computing http://www2.isye.gatech.edu/~adieker3/publications/cloudOR.pdf This equates to $1.5M saved per year (from just 15 apps). Replicate this exercise for the rest of the 450 apps to realize much more savings!