Enterprise IT:

Staying Relevant in the Cloud Era

A Cloud Ecosystem Webcast

Moderated by Rodney Brown,

Editor in Chief, CloudEcosystem.com

Webcast Logistics

Today’s Presenters

Daryl Plummer, Managing VP and

Gartner Fellow

Vishnu Bhat, Vice President and Global

Head - Cloud, Infosys

This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other authorized recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates. © 2012 Gartner, Inc. and/or its affiliates. All rights reserved.

Daryl Plummer

Cloud Services Brokerages — Intermediation Helps Drive the Cloud Alternate Delivery Model

Are You Really Prepared for Hybrid IT? Cloud Provider 1

Cloud Provider 2

Cloud Provider 3 e.g., Sales Automation

e.g., VMI/ E-commerce

e.g., Contact Verification

Cloud Provider 4

e.g., HR

You manage this

Your IT Organization

Public Cloud

Traditional On-Premises Private Cloud

Can you manage this?

Who will manage this?

Key Issues

1. What is cloud services brokerage, and what is its role in cloud computing?

2. When should companies use cloud services brokerage?

3. Which providers will succeed in cloud services brokerages?

All Consumed Cloud Must Be Managed

Public Cloud

Private Cloud

Required Skills

• Provisioning

• Billing

• Support

• APIs

• Migration

• Integration

• Customization

• Management

• Backups

• Security

• DR

• etc.

Questions

• Do you want to do these tasks?

• If so, do you have the right skills?

• If not, who can you trust to do them?

Questions

• Be a brokerage

Definition: Cloud Services Brokerage

Aggregation

Brokerage

Customization

Brokerage 25%

50%

75%

100%

* = Alignment with traditional IT services terminology

Integration

Brokerage

ISV*

System

Integrator*

Definition: CSB is composed of three primary roles in which an intermediary adds value to one or more cloud services on behalf of consumers of those services.

Providers of CSB compete on the relative strengths of the three CSB roles

Distributor

*

You Either

• Are a brokerage • Enable brokerage • Leverage brokerage

Aggregation Brokerage

See "Cloud Services Brokerage Is Dominated by Three Primary Roles," G00226509

• Definition - Delivering two or more (can be many) services

to service consumers, or other service providers

• Characteristics - Deliver cloud in scale to many customers

- No net new services functionality, per se

- No integration or customization of services

- Many-to-one or one-to-many services delivery

• Capabilities - Ability to support large-scale cloud provisioning

- Normalized discovery, access, billing, support

- Centralized management, SLAs, security, etc.

• Typical Scenarios - IT distribution

• e.g., distributors, resellers and VARs doing cloud provisioning

- App Stores, marketplaces

• e.g., telcos, cloud providers, companies provisioning cloud

Example Providers IT Distributors, Resellers, etc.

• Ingram Micro

• Insight

• Parallels

• Synnex

• Tech Data

CSB Enablers

• Avnet

• AppDirect

• FullArmor

• Jamcracker

• Verecloud

Integration Brokerage

See "Cloud Services Brokerage Is Dominated by Three Primary Roles," G00226509

Example Providers Evolving B2B/EC Providers

• Edicom

• GXS

• HubSpan

• IBM (Sterling Commerce)

• Liaison Technologies

• SAP (Crossgate)

iPaaS Providers Offering IB

• Dell (Boomi)

• IBM (Cast Iron)

• Informatica

• Jitterbit

• Pervasive

• Definition - Making independent designed services work

together as a combined outcome for consumers • Characteristics

- Can be IT stack or data/process integration - Substantial new value through integrated result - One-to-many, many-to-one, many-to-many - Increasingly implemented via some form of iPaaS

• Capabilities - Messaging, adapters, translation, orchestration - Community management (think: LinkedIn for e-commerce)

- Governance (e.g., policy and API management) - Shared services (e.g., management and security)

• Typical Scenarios - Cloud-to-cloud integration

• e.g., synchronizing contacts between Gmail, salesforce.com

- Cloud to on-premises integration • e.g., synchronizing order-to-cash between NetSuite, Quickbooks

- Traditional supply chain integration • e.g., for large communities of suppliers, customers, 3PLs, etc.

• Definition - Altering or adding to the capabilities of a service

to change or improve its function

• Characteristics - Net new functionality via new, modified services

- Original cloud services can be modified, enhanced

- One-to-many or many-to-one service delivery

• Capabilities - Modifications (services combined, enhanced, etc.)

- Implementation (of new services, applications, processes, user interfaces, master data, etc.)

- Analytics (messages, services, processes, etc.)

• Typical Scenarios - New and composite applications

• e.g., new custom reports on Force.com for salesforce.com CRM

- Process or data enhancement

• e.g., price comparing service for "less than truckload" booking

- Business process services

• Configurable processes (e.g., VMI, delivered on one-to-many basis)

Customization Brokerage

See "Cloud Services Brokerage Is Dominated by Three Primary Roles," G00226509

Example Providers BPS Providers

• BlinkHR

• E2open

• eBuilder

• psHealth

• Wipro

System Integrators

• Appirio

• Atlantic Technologies

• Celigo

• Infosys

• Tieto

Comparing Cloud Services Brokerage to Direct ("Internal CSB") Cloud Consumption

See "How to Determine When to Use a Cloud Services Brokerage," G00226112

Strengths

• Low barrier to adoption

• Direct provider relationship

• Perception of "control"

Strengths

• Unified contracts, SLAs

• Value-added services

• Centralized governance

Challenges

• CSB perceived as "in the way"

• Immature, varied CSB skills

• Inconsistent governance

Direct Cloud Consumption,

i.e., Internal CSB

Cloud Intermediation,

i.e., External CSB

Challenges • "Take it or leave it" services • Multiple provider complexity • You are cloud "prime contractor" • You must own more IT assets

Emergence of Internal CSB Role

Public Cloud

Traditional IT

Private Cloud

Attributes of Internal CSB

• Alternative to third-party CSB role:

- You are "prime contractor"

- Think: cloud-enhanced traditional

IT multisourcing

• IT responsible for all CSB roles:

- Aggregation

- Integration

- Customization

• Scope of internal CSB role:

- Minimally applies only to private

cloud

- Can also apply to private and

public (hybrid) cloud

- Can include "broker of broker"

role, for cascaded brokerage

- Can optionally also include

traditional IT assets

Minimum Internal CSB

Scope

Maximum Internal CSB

Scope

How the Internal CSB Role Compares to Traditional IT Multisourcing Integrator Role

Emerging CSB Role

Traditional MSI Role

• Larger ecosystem

- Up to hundreds

• More smaller services

- More finely grained

• More SLAs, T&Cs

- More KPIs to track

• More, dynamic providers

- Value, innovation lead

• More federated, complex

- Automated escalation

• More usage, automated

- More policies to track

• Less control of IT assets

- Assets across cloud

IT Service Attributes

Ecosystem

Outcome

Dynamics

Help Desk

Governance

Granularity

Control

• Smaller ecosystem

- Up to a dozen

• Fewer larger services

- More coarsely grained

• Fewer SLAs, T&Cs

- Fewer KPIs to track

• Fewer, static providers

- Trust, experience lead

• More centralized, simple

- Manual escalation OK

• Limited use, manual

- Fewer policies to track

• More control of IT assets

- Assets in one DC

See "Essential Provider Selection Criteria to Use When Outsourcing the CSB Role," G00230681

When to Consider Internal CSB Role

Consider internal CSB when:

• You would prefer to fund the CSB with capex versus opex.

• Being a CSB is considered a required internal core competency.

• An internal CSB will reduce your risk of consuming services.

• You have and/or desire the requisite CSB skills and technology.

• An internal CSB can meet time-to-deployment requirements quickly.

• An internal CSB better meets your internal constituents' needs.

• An internal CSB is mandated by management (e.g., for compliance).

• No viable external CSB is available for your IT project requirements.

• You have a strong desire for centralized, internal control of all IT.

• Your full project life cycle TCO will be lower via an internal CSB.

See "Predicts 2012: Cloud Services Brokerage Will Bring New Benefits and Planning Challenges," G00227370

When to Consider Outsourced CSB Role

Consider external CSB when:

• You would prefer to fund the CSB with opex versus capex.

• Being a CSB is not a required internal core competency.

• An external CSB will reduce your risk of consuming services.

• You lack and/or don't want the requisite CSB skills and technology.

• An external CSB can meet time-to-deployment requirements fast.

• An external CSB better meets a B2B community's needs.

• An external CSB is mandated by an external agency.

• There's a viable CSB available for your IT project requirements.

• You wish to focus more on business outcomes, not IT enablement.

• The CSB will add significant value to consumed cloud services.

See "How to Determine When to Use a Cloud Services Brokerage," G00226112

More Comprehensive Services

How Will You Navigate the CSB Landscape?

Domain-Specific Provider

Discrete Services Provider

Full-Service Provider

Distributor/VAR

Cloud-Based Technology Services (IaaS, PaaS, Security, Storage, etc.)

SaaS Integration and Governance (iPaaS), SaaS

SaaS Aggregation, Customization

Cloud-Enabled IT Outsourcing

Cloud-Enabled System Integration

Cloud-Enabled BPO

Specialist

= Type of provider

= Type of service

See "Cool Vendors in Cloud Services Brokerages, 2012," G00231938, and "Cool Vendors in Cloud Services Brokerage Enablers, 2012," G00231937

See "Cool Vendors in Cloud Services Brokerage, 2011," G00212316

CSB Role Relevancy Varies by IT Service

= very important = moderately important

CSB Roles

= limited importance

B2B E-Commerce

Application Services

IT Distribution

BPU/ BPaaS

IT VAR

Infrastructure Services BPO

Provisioning

Management

Financing

Application Integration

Technology Integration

Governance

Modification

Implementation

Analytics

Ag

gre

ga

tio

n

Inte

gra

tio

n

Cu

sto

miz

ati

on

Service Types Provider Types

See "The Role of CSB in the Cloud Services Value Chain," G00218960

CSB (Provider) Ecosystem: Evolving B2B/EC Providers Doing Integration Brokerage

Customization

Integration Aggregation

Ecosystem/Provider Attributes

• Mature B2B integration competency

• Large B2B "partner ecosystems"

• SaaS APIs are "just another adapter"

• Emerging Hybrid Cloud + EC projects

• Cloud "immigrants" (vs. iPaaS providers)

Example Providers*

• Amalto Technologies

• Basware

• Easylink International

• Edicom

• Elemica

• GCommerce

Essential Vendor Selection Criteria • International B2B network, fulfillment capacity

• References for cloud/SaaS integration

• Explicit SLAs plus viable DR strategy

• Federated service desk involving cloud

Provider Challenges • Potential disintermediation by cloud providers

• Immature governance, support

• Sufficient investment in SaaS integration

• Perception as irrelevant "EDI legacy"

• GXS

• IBM (Sterling Commerce)

• HubSpan

• Liaison

• SAP (Crossgate)

• SPS Commerce

* Representative, not complete, list

Beyond the Three Primary CSB Roles: Key Technical CSB Evaluation Criteria

See "Essential Provider Selection Criteria to Use When Outsourcing the CSB Role," G00230681

• Disaster recovery

Is CSB's RPO/RTO reconciled with all cloud providers?

• Management

Can your CSB manage all cloud services in one domain?

• Migration

Is there help for moving users and data to cloud apps?

• Security

Will your CSB's SSO integrate with your existing SSO?

• Transparency

Is performance, availability visible for all cloud services?

• SLAs and reporting

Are SLAs reconciled with all third-party cloud providers?

• Help desk (support)

Is first-line support, escalation credible for all services?

• Upgrades

Are rollouts smooth for services/APIs across providers?

x

Beyond the Three Primary CSB Roles: Key Commercial CSB Evaluation Criteria

• Experience

Does the CSB have sufficient skills and references?

• Pricing

Does the provider offer transparent, predictable pricing?

• TCO

Is the CSB's total project cost of ownership favorable?

• Risk

Is CSB, relative to others, an acceptable business risk?

• IP protection

Are rights and procedures to access your IP well-defined?

• Compliance

Can CSBs meet required industry and government specifications?

• Indemnification

Does the provider share risk? Escalate for nonperformance?

• Switching costs

Are fees, development involved in changing providers? $

CSB "Didn't Know I Needed It" Capability No. 1: Application Governance

What cloud service policies are likely to be enforced?

• Security

- User/service/API authentication — Fine-grained/role authorization

• Technical SLAs

- Schema validation — service/API throughput, availability, failover

• Business SLAs

- Approve POs of more than $1,000; give "Gold" customers priority routing; archive invoices from France; encrypt personally identifiable data

Application Services Governance =

API Management +

SOA Governance

Community management capabilities include some combination of:

• Community master data

• Think: "Supplier/Customer MDM"

• Also for organizations, users, maps,

keys

• Campaign, portfolio management

• Community collaboration tools

• Think: "LinkedIn for E-commerce"

• Member provisioning, testing

• Notifications, communications

• Community compliance

• Think: "Supplier Scorecarding"

• Policy management, enforcement

• Transaction and data validation

• Process visibility, analytics

CSB "Didn't Know I Needed It" Capability No. 2: Community Management

Modern B2B projects leverage both:

• Integration infrastructure

- To technically integrate data and

processes between company's systems

• Community management

- To facilitate collaboration between people

involved in B2B processes

Recommendations

• Recognize that the "service" in CSB has both business and technical connotations, with the emphasis on "outcome."

• Interpret the CSB role through its primary three IT services roles: CSB aggregation, integration and customization.

• Use Gartner evaluation criteria to help determine if you should deploy an internal CSB or use an external CSB.

• Leverage providers of CSB-enabling technology for internal CSB roles, providers of CSB services if you are outsourcing.

• Evaluate CSB providers (or your internal CSB role) via:

1. Assessing relative strength of each of the three primary CSB roles

2. Evaluating the additional CSB technical and commercial criteria

Recommended Gartner Research

Cloud Services Brokerage Is Dominated by Three Primary Roles Daryl Plummer, Benoit Lheureux, Michele Cantara (G00226509)

Cool Vendors in Cloud Services Brokerages, 2012 Tiffani Bova, Daryl Plummer and others (G00231938)

Predicts 2012: Cloud Services Brokerage Will Bring New Benefits and Planning Challenges Daryl Plummer, Benoit Lheureux and others (G00227370)

Essential Provider Selection Criteria to Use When Outsourcing the CSB Role Benoit Lheureux, Jim Longwood (G00230681)

The Role of CSB in the Cloud Services Value Chain Benoit Lheureux, Daryl Plummer, Tiffani Bova (G00218960)

For more information, stop by Gartner Solution Central or e-mail us at solutioncentral@gartner.com.

www.infosys.com/cloud © 2012 Infosys Limited

Vishnu Bhat Vice President and Global Head – Cloud

www.infosys.com/cloud 26

Traditional Private Cloud Public Cloud

60% of enterprise workloads will

move to the Cloud in 5 – 7 years

Today

The changing

enterprise landscape

5 – 7 years

www.infosys.com/cloud 27

Traditional

Multiple

Public Clouds

Private Cloud

A FRAGMENTED

CLOUD ECOSYSTEM

LACK OF A

UNIFIED ENTERPRISE VIEW

Comprehensive lifecycle

ownership.

Alignment with enterprise

IT standards.

Integration with existing

enterprise IT assets.

www.infosys.com/cloud 28

To become a gateway to an enterprise ‘hybrid’ cloud ecosystem

Enterprise IT Standards

Automation

Governance

Private

Cloud Services

Enterprise IT Services

Public

Cloud

Services

www.infosys.com/cloud www.infosys.com/cloud 29

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The contents of this document are proprietary and confidential to Infosys Limited and may

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© 2012 Infosys Limited. All rights reserved. Copyright in the whole and any part of this

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Daryl Plummer, Managing VP and

Gartner Fellow

Vishnu Bhat, Vice President and Global

Head - Cloud, Infosys

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