Develop an Infrastructure Cost Optimization Strategy
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This document discusses developing an infrastructure cost optimization strategy. It outlines opportunities from economic uncertainty to improve capital efficiency and agility through leaner technologies, optimizing IT best practices, and new business models. Specifically, it recommends choosing modular, lightweight technologies; leveraging analytics, NoSQL, and service orientation; and balancing on-premise and cloud models. It then introduces WSO2's open source middleware platform and how their products and support model can help organizations achieve these goals.
Develop an Infrastructure Cost Optimization Strategy
- 1. Develop an infrastructure cost optimization strategy Jonathan Marsh Vice President Business Development Chris Haddad Vice President Technology Evangelism
- 2. Develop an infrastructure cost optimization strategy • Uncertainty, Volatility, and Opportunity • Cost Optimization and Innovation Strategy • How WSO2 Carbon and WSO2 Stratos is a strategic fit
- 3. Uncertainty, Volatility, and Opportunity • Uncertainty: Economic slowdown and market sentiment “Singapore warned Monday that its economy will likely suffer a sharp slowdown next year as export demand from developed countries wanes... “ Source: Associates Press published: 20 November 2011 “the world economy is teetering on the brink of another major downturn.” Source: U.N. World Economic Situation and Prospects 2012 published: 5 December, 2011 “Flash China Manufacturing Output Index at 46.7 (51.4 in October). 32-month low.” Source: HSBC Purchasing Manager’s Index published: 23 November 2011
- 4. Uncertainty, Volatility, and Opportunity • Uncertainty: Shifting demographics and new works patterns – Demographic shifts • Aging global population • Supply greater than demand due to global competition • Less loyal, less predictable consumers – Work pattern shift towards • Service-based economy – organizations become more dependent upon intellectual power • Outsourcing non-core operations
- 5. Uncertainty, Volatility, and Opportunity • Volatility: Increasing supply chain complexity and change • Rapid supply change adjustments • Short product cycles, many parts • Multiple competing suppliers • Just in time sourcing
- 6. Uncertainty, Volatility, and Opportunity • Volatility: Price hedging and hot money flows – Highly variable input prices and asset bubbles – Currency foreign exchange fluctuations – Rapidly changing buyer demand
- 7. Uncertainty, Volatility, and Opportunity IT Opportunity to reduce risk • Improve capital efficiency – Economic slowdown and lower market sentiment – Price hedging and hot money flows • Innovation to raise agility – Shifting demographics and new work patterns – Increasing supply chain complexity and change
- 8. Cost Optimization and Innovation Strategy To improve capital efficiency and raise agility 1. Choose leaner technologies 2. Re-discover and optimize IT best practices 3. Leverage new business models
- 9. Choose leaner technologies • What is “Lean Software”? – Designed to do just enough • No muda: waste code or unnecessary functionality • Only focus on real requirements – not feature checklists – Agile iterative development starting from Minimum Viable Product • Decide as late as possible, Code as fast as possible – Modular so that unnecessary code isn’t even loaded – Eliminate duplicate or conflicting code (unfortunately a typical result of M&A) • Agility depends on good architecture
- 10. Choose leaner technologies • Lower resource use – Minimize infrastructure growth and footprint • Easier and simpler to use throughout lifecycle – Lower development and operation team spend – configuration-based models, use open standard programming models • Future-proof and lower technical debt – Lower startup and maintenance cost – Add components as required – Easy to integrate (internally and externally)
- 11. Cost Optimization and Innovation Strategy To improve capital efficiency and raise agility 1. Choose leaner technologies 2. Re-discover and optimize IT best practices 3. Leverage New Business Models
- 12. Re-discover and optimize IT best practices • Integrated business rules • Analytics, monitoring, internal “billing” • Data Volumes – NoSQL, MapReduce – Complex Event Processing • Service orientation • Identity & security management © WSO2 2011
- 13. Cost Optimization and Innovation Strategy To improve capital efficiency and raise agility 1. Choose leaner technologies 2. Re-discover and optimize IT best practices 3. Leverage new business models
- 14. Leverage New Business Models – on premise • Ensure costs are proportional to actual production benefits received • Eliminate license terms and fees which could lead to: – Shelf-ware – Evaluation delays – Project commencement delays • Protect against single-vendor lock-in • Compliment your team with expert support services This is what WSO2 means by “open source” © WSO2 2011
- 15. WSO2 Value Proposition • Address obstacles to enterprise middleware project speed, success, ROI Simplify… Obtain… • technology acquisition • freedom from lock-in and license • installation risks • development • low resource demands • adapting platform to specific needs • high performance and utilization • obtaining expertise rates • integration & interoperability • world-class production support • adding new capabilities system and SLA • addressing unforeseen needs • high ROI with cost structure • deployment to achieve desired aligned with actual production QoS value obtained • confidence in technology evolution and innovation roadmap
- 16. How we achieve that value • Industry-leading Innovation • Modern, from scratch, design, implementation • Complete, consistent platform • OSGi componentization model • Lean, high-performance code • Cloud nativity • Open source edge • Apache open-source licensing – only! • Business model aligns with production support (e.g. successful production deployment.) • World-class support services tailored to customer/project needs. • Accelerated development through open, transparent model and leveraging open source community.
- 18. WSO2’s Open Source Edge Unique Support Model: “We build it. We support it. We manage it. We improve it.” ● No Support Engineers ● No Project Managers ● No Multi-Year Roadmap ● WSO2 Support Offerings: QuickStart, Development Support & Production Support ● Open Development Methodology: Customer-driven, agile, open and effective product engineering & development ● High levels of customer involvement in product development & evolution ● Open public mailing lists – [email protected]
- 19. Leverage New Business Models – in the cloud • Balance on-premise => IaaS => PaaS => SaaS – Efficiencies increase as you go up this chain – Control decreases as you go up this chain • Less customization possible • More risk of lock-in • Choose appropriate mode for IaaS, PaaS – Public, private, hybrid, cloud-bursting © WSO2 2011
- 20. Enterprise IT in 2015+
- 21. Cloud Native • Distributed/Dynamically Wired (works properly in the cloud) • Supports deploying in a dynamically sized cluster • Finds services across applications even when they move • Elastic (Uses the cloud efficiently) • Scales up and down as needed • Works with the underlying IaaS • Multi-tenant (Only costs when you use it) • Virtual isolated instances with near zero incremental cost • Implies you have a proper identity model • Self-service (in the hands of users) • De-centralized creation and management of tenants • Automated Governance across tenants • Granularly Billed and Metered (pay for just what you use) • Allocate costs to exactly who uses them • Incrementally Deployed and Tested (seamless live upgrades) • Supports continuous update, side-by-side operation, in-place testing and incremental production
- 22. Leverage New Business Models
- 24. One Enterprise Platform wherever you need it: WSO2 Carbon WSO2 Stratos WSO2 StratosLive On Premise: In Private Cloud: As a Service in the Public • In Production at Fortune • A single managed platform Cloud: 1000 companies • Elastic, Self-Service, Multi- • We manage, run and • Handling 1bn tenant maintain your application transactions/day • Accelerates your private platform • The only modular open cloud beyond virtual • Complete Pay as you Use source middleware stack machines to provide real • ESB-as-a-Service • Everything you need to Enterprise Cloud Services • Governance-as-a-Service build Enterprise • Use only what you need • Identity-as-a-Service Applications • With appropriate SLAs and • From Core Logic to Mobile simple monthly billing Apps • A single code continuum • Completely modular based on OSGi • Complete Enterprise SOA Architecture: • AppServer, ESB, Governance, Portal, BPMS, BAM, Identity and more • Supported 24x7 with phone, web and full SLAs
- 25. Resources • Try Carbon – http://wso2.com/products/carbon/ • Try Stratos right now: – https://stratoslive.wso2.com/ • Read about Stratos: – http://wso2.com/cloud/stratos/ – Source Download available • Contact us: – [email protected]