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From Functional to Transformational and Beyond >> 5
Speed It Up >> 35
From Functional
to Transformational,
and Beyond
Breaking down boundaries. That’s the key to CIO success in modern-day
business. Boundaries between systems and data. Boundaries between
87%
business and IT. Boundaries between the status quo and new mandates
for agility and transformation.
How do tech leaders find the right formula to break down these dividing lines?
It’s not easy.
of CIOs find their role more
Nearly three-quarters (72%) of CIOs in the 2017 State of the CIO survey challenging than ever
– Randall Gaboriault,
CIO, Christiana Care Health System
CIOs are slowly shifting from a functional role to activities focused on transformation and strategy
Transformational activities (business/IT alignment, implementing new systems, redesigning business processes)
56%
53%
52% 50%
47%
46% 45%
45%
43%
34%
34%
31%
27% 27%
25%
23% 22%
21% 19% 19%
20%
11%
CEOs are adding to the pressure on CIOs with a mounting set of expectations
that similarly straddle strategy and tactics: The C-suite wants CIOs to help
increase corporate revenue growth while simultaneously simplifying IT and
improving security.
“All roads to the future run through IT, so I have to run faster than my customers,”
says Randall Gaboriault, CIO and SVP of innovation and strategic development
at Christiana Care Health System, a health delivery services provider. “If I become
a constraint, I become an obstacle, and then I become irrelevant.”
What’s the best chance for CIOs to re-establish both stability and relevance for
enterprise IT? Savvy CIOs such as Gaboriault and DiCamillo are collaborating
with their business counterparts to create a strategic roadmap for Hybrid IT—a
combination of traditional IT, managed services, and private and public cloud that
is agile and scalable enough to support ever-changing business demands.
All CIOs aspire to create the “perfect” IT environment that optimizes operations and
charts a course toward digital transformation. A common misconception, however,
is that “perfect” is defined by the cloud. In reality, legacy on-premises systems
must remain part of the mix for most organizations because of security concerns,
compliance obligations, or the desire to keep mission-critical applications in the
data center.
“Without Hybrid IT, you go back to having to choose between two models—either
building everything yourself or consuming everything from someone else,” says
Craig Partridge, director of Data Center Platform Consulting for HPE Pointnext.
“Hybrid IT is the strategy to be able to get the best of both worlds – and it’s
fundamental to the digital agenda.”
The beauty of a Hybrid IT model is the flexibility it provides CIOs to mix and match
legacy systems, cutting-edge hyperconverged and composable infrastructures, and
software-defined platforms as needed to deliver desired business results. The right
mix is very much dependent on your organization’s unique needs. But a successful
Hybrid IT model is more than just a means to cost-savings or efficiencies; the proper
infrastructure mix simplifies Hybrid IT and accelerates IT’s value by enabling a pace
that is commensurate with today’s accelerated business cycles.
Now Next
Developing new
Identifying
go-to-market
Managing costs Putting out fires competitive
strategies and
opportunities
technologies
Hybrid IT is more than a simple on-premises vs. cloud hosting debate—or even
a technology debate. It is also different than hybrid cloud, which is a specific
deployment model that combines public and private cloud services. Hybrid
IT, by comparison, encompasses cloud and traditional in-house data center Improving
technology, and requires examination in a broader context. This includes customer satisfaction/
the maturity of the technology infrastructure, existence of multiple clouds, experience
management frameworks, cultural readiness, and staffing skills—all with an eye
toward improving business outcomes.
56%
from the migration.
But cloud is only one piece of the digital transformation journey; a successful
Hybrid IT model involves charting all existing infrastructure, identifying the of IT leaders say they work with
workloads that should remain in the data center, and cleaning house of business units to prioritize
end-of-life or little-used legacy systems and applications. IT needs to involve IT projects.
line of business users in this basic assessment, working in tandem to weed
out processes and services that no longer have impact while prioritizing
modernization of those that have the most potential for strategic advantage. Share this
79%
At Christiana Care, the IT team focused first on migrating non-core applications
including HR and payroll. “Our thinking was to move those to cloud first
because they are less differentiating to our core value proposition and relatively
low risk,” says Randall Gaboriault, the healthcare provider’s CIO and SVP of
of organizations have moved
innovation and strategic development. “We’ll move up the arc to things that at least one application or
make up our core business over time. And along the way we will learn, and get infrastructure component
better, and get smarter with the cloud.” to the cloud.
based services begin to co-exist. A Hybrid IT approach enables organizations CIO, Christiana Care
Health System
to more logically mix and match solutions that best fit the business need,
unencumbered by inflexible IT architectures and without the complexity
that stalls many technology rollouts and can impede digital transformation.
– John DiCamillo,
Americas CTO, Arup
Compliance
Stay on-prem
needs
Governance
Move to cloud
46%
To become a true partner, CIOs need a transformation plan that extends their
traditional business case development beyond the typical ROI process, which
remains focused on benefits such as reducing costs or boosting operational
efficiency. In the accelerated pace of the digital world, it’s even more critical for
of technology investments,
CIOs to demonstrate how IT can help the business quickly execute new ideas,
up from 43% in 2016
create new products and services faster, and deliver positive business outcomes.
“You still have traditional ROI where you make the case that something will
work harder or be faster or is cheaper,” notes Craig Partridge, director of Data Share this
Center Platform Consulting for HPE Pointnext. “Now it’s also about making sure 87% of CIOs find their role
IT isn’t seen as a roadblock but, rather, as an innovation engine that can support more challenging than ever
the pace at which the business wants to move.”
35%
Increase operational efficiency
36%
The innovation engine that Partridge describes consists of a carefully constructed mix of people, process, technology, and economics. It is built
from the outside in, emphasizing business outcomes in the form of improving customer experience, increasing operational efficiency, transforming
business processes, and/or growing the business. As part of a broad transformation plan, the CIO needs to define how the infrastructure that
enables these outcomes meets a multitude of requirements, from performance and latency needs to security and compliance.
“It’s my job to help the organization understand that moving from a capital
investment expense to an operational investment cycle enables us to better
match and change capacity on demand,” says Randall Gaboriault, CIO and
senior vice president of innovation and strategic development for
Christiana Care Health System.
Gaboriault emphasizes that the business isn’t really concerned about where
systems run, just that they’re delivering the promised benefits to the business.
“My customers don’t really care anymore how their services are being delivered,”
he says. “They just care about getting what they need. Whether I deliver that
through the cloud or on-premises is irrelevant to them.”
– Randall Gaboriault,
CIO, Christiana Care Health System
4
Decrease time to value
2
• Increase available capacity in minutes, not months
• Refresh as needed with simple change orders
• Avoid long procurement processes
Source: HPE Pointnext, HPE Flexible Capacity: Go hybrid and get the best of both worlds
Deploy IT as a Service
While enterprise cloud migration shows no signs of abating, organizations are
29%
discovering the public cloud is not always a suitable fit for many critical and A flexible, scalable, on-premise
infrastructure is 29% less
sensitive workloads that still demand traditional IT controls. This has prompted
expensive than a self-managed
interest in a new IT delivery model that brings cloud-like benefits such as
private cloud.
scalability and pay-per-use consumption to on-premises data centers.
“Flexibility is the overriding argument for a cloud-first approach,” says Mayo. Share this
“I want the same flexibility for the things I can’t bring to the cloud yet.”
Source: IDC/HPE
– William Mayo,
CIO, Broad Institute
Mayo notes that the benefits of a consumption-based model extend beyond the
economics. “I now have the ability to change my architectural selections more
frequently than I otherwise could,” he explains. “Not just matching supply and demand,
but matching the particular capability more closely.”
Those capabilities could include scaling storage capacity in support of a big data
initiative, or rapidly deploying an IoT environment that can process data at the edge
without increasing complexity.
50%
infrastructure elements to understand usage patterns for future capacity.
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Technology services provider Sogeti’s move to an IT consumption-based model
allows it to align capacity more closely to its clients’ projects. The approach
has enabled Sogeti to instantly scale up storage and compute capacity when
required, pay only for what it uses, and reduce hardware costs by 30%.
The key to a successful consumption-based model, Mayo adds, is investing the time
to truly understand your cost structure, to ensure you’ll get the anticipated economic
benefits of a more flexible model. “Do cold, hard calculations to understand the dynamics
of your costs,” he says. “Don’t just jump into it with a leap of faith.”
It’s also critical to find the right partner to reliably deliver outcome-based solutions
in critical areas such as storage, database, big data, SAP HANA, and edge computing.
For example, Dansk Supermarked Group (DSG), Denmark’s largest retailer with both
e-commerce initiatives and retail chain stores, deployed a consumption-based IT solution
tuned specifically for big data. The transition from an underperforming data warehouse to
an outcome-based ITaaS big data solution—which included processing, storage, backup
and recovery, and flexible capacity scaling—transformed an IT bottleneck into in-store
analytics and business agility. The ability to make inventory decisions based on precise,
timely customer information has helped the company increase revenue while
reducing waste.
As Broad Institute, DSG, and Sogeti have discovered, the public cloud has helped
organizations achieve new levels of business agility, scalability, and flexibility. But as
they get deeper into public cloud usage, more organizations have found they need to
pay close attention to their costs, risks, and performances. With a consumption-based IT
model, organizations can take advantage of cloud-like benefits in their on-premises data
centers without sacrificing traditional IT controls and ownership. Public cloud operations
are different from IT operations, but many of the same goals and disciplines apply.
An interesting evolution is emerging as IT leaders redefine the operating model for a
Hybrid IT environment.
Establish scalability-
on-demand processes
as part of the ITaaS
business model
Re-allocate IT resources
to areas that will have
Align cash flow with
the greatest impact
revenue streams
on the business
Get in Shape
Virtually all roads to agility stem from data
center modernization—which is why so
many organizations are embracing software-
SaaS 33%
defined infrastructure and other core
foundational elements to get their digital
Virtualization 29%
transformation initiatives in shape. Data center consolidation/
optimization/modernization 28%
A growing mix of next-generation services,
layered onto on-premises enterprise systems,
IaaS 27%
has put a spotlight on underpowered Private cloud 27%
computing infrastructure and aging storage
systems. One CEB study found that 63% of Legacy systems
modernization/replacement 26%
business leaders said their organizations
are too slow to exploit technology-enabled PaaS 24%
opportunities. In response, HPE found, 60%
of businesses are steering toward Hybrid IT On-premises software 23%
solutions as the current or future makeup of
their enterprise computing solutions. Public cloud
22%
Hybrid cloud
22%
The proliferation of virtual machines (VMs) has matured into container technology, which
leverages software-defined technology to abstract processes from hardware but also
decouples the process from the underlying operating system. Because they are smaller,
faster to deploy, and easily scalable, containers are easy to move from one environment to
another, making them a good fit for Hybrid IT, where deployments can shift in response to
changing business requirements.
Software-defined infrastructure
John DiCamillo, Americas CTO for Arup, is queuing up an IT service broker function
for cloud capabilities as part of the firm’s data center makeover. Historically, business
users who couldn’t get access to a service they wanted in a reasonable timeframe
would circumvent IT and purchase cloud capabilities on their own.
To add some structure to those efforts, DiCamillo’s team created a function that
enables staffers to access cloud services with their own ID, covering connectivity,
account management, and payment. The cloud-enablement program “means we
don’t have to reinvent the wheel every time,” he says. “We work with the business
users and share information across the disciplines. It’s a stepping stone, but once the
floodgates open, IT will need to think about the next activity, which is catalogs.”
Composable infrastructure
APIs and open, modular tools help ensure that workloads are seamlessly orchestrated
between on-premises data centers and the public cloud. Another key orchestration
component: centralized management solutions that span hybrid and multicloud
environments, enabling workloads to flow continuously across environments and
ensuring universal adherence to business and compliance requirements.
At Aetna, an API architecture and automation are now essential ingredients for every
computing stack, even for legacy systems based on COBOL and Java, according
to Renee Zaugg, the firm’s vice president of IT infrastructure and development.
“We have a mandate that anytime the code is opened – for break/fix or even small
enhancements—developers have to use the automated stack,” Zaugg explains.
“We’re getting higher-quality code as a result—and it’s also less expensive for code
remediation and testing.”
– Renee Zaugg,
VP, IT Infrastructure & Development, Aetna
Move faster. That’s the mantra that most CIOs have been hearing from
their business colleagues for some time now. IT’s historically methodical
pace helped drive the shadow IT movement and all the complications
that have arisen from it, from performance and compliance concerns to
the unexpectedly high costs of cloud services. Strategic CIOs have taken
shadow IT’s key lesson to heart, however: IT needs to pick up the pace. 68% 61%
A Hybrid IT model is a catalyst for much-needed organizational Storage Efficiency Security Features
agility, because it enables IT to launch new capabilities quickly and
to seamlessly dial up and scale back resources based on changing
business needs. Flexible consumption models that mix and match
59%
private cloud, public cloud, and on-premises infrastructure are crucial in
digital transformation. With these foundational components of Hybrid IT Operations Analytics
IT in place, CIOs can begin to accelerate service delivery, at scale.
Source: IDC
– Anil Cheriyan,
CIO, SunTrust Banks
At Broad Institute, the ongoing transition to cloud and managed services has
fundamentally changed the IT team’s structure and roles, according to CIO
William Mayo. Because the Institute relies on high-performance computing for
its biomedical and genomic research, modern-day infrastructure such as
software-defined capabilities and composable architecture are critical.
“As we’ve made our cloud migration, it’s become clear that we don’t need to put
hands on a keyboard or a piece of hardware to maintain it anymore,” says Mayo.
“I can have the software pick up a configuration, create the VM [virtual machine]—
or 1,000 VMs—at the moment it’s needed, do what’s needed, and then shut them
back down. I completely get out of this sysadmin/storage admin construct that
we’ve had for so long.”
Improved Improved
Improved
utilization of business
IT staff
computing agility
productivity
resources
36% 36%
Improved
Faster time to utilization
market of storage
resources
Source: IDC
SunTrust Banks has compiled these technologies and methodologies into the
aptly named Business Accelerator, a technology stack that comprises design
thinking, agile development, DevOps, modular architectures, microservices, and
the cloud. “Design thinking changes the way the business operates. All the other
layers change how IT operates,” says Anil Cheriyan, SunTrust’s CIO.
Keep It Secure
Cybersecurity is no longer a layer that’s added at the end of a project.
An increasingly sophisticated threat landscape and more distributed IT
environments are forcing organizations to ensure that security is baked
into all aspects of their Hybrid IT models, from on-premises systems to
cloud applications. A secure, resilient infrastructure is vital to reduce risk
12%
and increase the reliability of mission-critical systems and applications.
Security has become the top priority for IT projects. In the next 12
months, 60% of enterprises plan to increase spending on security
technologies as they try to reduce the risk of an attack that could
Average portion of IT budget
disrupt operations and lead to significant financial loss or brand
allocated to IT security
damage, according to the Computerworld Tech Forecast.
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Data Analytics
7% Meet Security, Privacy or Compliance Goals 19%
SaaS 6% Increase Productivity
19%
Application Development/Upgrade/
5%
17%
Replacement
Improve Customer Satisfaction/
Experience
Data Center Consolidation/
4%
16%
Optimization
Generate New or Increased
Revenue Streams
– Anil Cheriyan,
CIO, SunTrust Banks
End-to-end visibility will allow security teams to introduce the right mix of
security layers and controls to ensure redundancies and create protections
across the entire infrastructure.
For example, Ameripride has integrated identity solutions into its security mix
as it moves more applications and infrastructure to the cloud as part of its
Hybrid IT transformation, according to Jeff Baken, director of infrastructure at
the uniform rental and linen supply company. “We’re trying to establish more
role- and profile-based solutions,” he says, “so it doesn’t matter whether users
are at home, in the office, or at a plant location. We authorize access based on
the user vs. where they are or what they are trying to do.”
– Jeff Baken
Director of Infrastructure, AmeriPride
3
6 steps to improve Hybrid IT security hardened infrastructure to
reduce risk on virtualized
data center traffic.
Implement a shared
Build a data-centric access-management solution
2 approach to security, with
encryption at the core.
4 that integrates cloud-based
identities with corporate
identity directories.
1 5
software development lifecycle Proactively monitor,
to improve security and reduce detect, and respond
the cost of vulnerability fixes. to security threats.
41%
accelerating the move to public cloud as they bump up against the
limits of on-premises storage and processing capabilities.
“The power of genomics is a statistics game. You need big data sets,” says
William Mayo, CIO at Broad Institute, a biomedical research organization. of enterprise CIOs expect to
“To build those data sets, we need to share across researchers, and I can’t experience a shortage in data
do this at petabyte scale by copying among data centers. That needs to science/analytics skills over
start outside [in the public cloud] and stay there.” the next 12 months.
The challenge becomes even more daunting as CIOs begin to integrate new
data sources from Internet of Things (IoT) and other “edge” devices. Much of Share this
this data will stay where it’s created for practical reasons, such as data size,
response time, and regulations regarding data privacy and sovereignty.
At AmeriPride, CIO Steven John and his team made a decision two and a half
years ago to gut the company’s existing information stack, replacing a data
warehouse that John admits never had the vision or financial support needed
to work effectively. In its place, the company implemented three core
components: Tableau visualization software, Micro Focus’s Vertica distributed
analytical database, and Informatica’s data management platform.
1/3
At a basic level, the simplified stack helped John’s team eliminate one significant
pain point: Reducing the time required to produce daily operational reports.
A process that used to take 36 hours now runs in fewer than 15 minutes.
of IT leaders believe big data/ Streamlined reporting has enabled AmeriPride to expand its analytics effort
analytics are driving the across the business. John’s team has built 20 dashboards by which employees
biggest IT investments – but now live and lead, providing real-time visibility into everything from safety
just 16% of LOB leaders agree. standards to fleet management.
“We have 60 plants in North America, and each is essentially a small business,”
Share this
says John. “They need information on a daily basis that allows them to serve their
customers and compare against our metrics to see if they’re winning or losing.”
“We had a three-legged stool with two legs: good judgment and good leadership,”
says John. “We added good data, which gives us a solid base to make better
decisions. It has changed the entire dynamic of our company.”
A flexible Hybrid IT infrastructure that can scale storage and computing capacity
as needed opens the door to an influx of data that can overwhelm traditional data
management methods, tools, and analytics teams. That’s where machine learning
plays an increasingly important role. Organizations are increasingly evaluating solutions
that utilize machine learning and predictive analytics for many infrastructure-related
activities such as downtime prediction, prescriptive resolution, root-cause analysis,
and even analytics-driven tech support.
“A lot of data can be a liability if you don’t know what to do with it,” says Jeff Wike,
CTO at DreamWorks Animation, creators of blockbuster movie franchises such as “Shrek”
and “How to Train Your Dragon”. DreamWorks Animation certainly produces a lot of
data: A single 90-minute, computer-generated animated feature film, at 24 frames per
second, comprises 130,000 individual frames—approximately 500 million digital files.
The studio’s image-rendering operation processes up to 112,000 transactions per second
during image creation while collecting close to 1 million artifacts about that information
daily, according to Wike.
Compute
Analyze data from the
edge to reveal new
business, engineering,
or scientific insights.
Connectivity
Network or direct connect
the devices and things at the edge:
cars, tools, gadgets, appliances,
people, power grids, robots, street
lights, pumps, buildings, etc.
Source: HPE, The Intelligent Edge: What It Is, What It’s Not, and Why It’s Useful
– Jeff Baken,
Director of Infrastructure, AmeriPride
“Not all applications are cloud-ready,” says Jeff Baken, director of infrastructure at
AmeriPride. “If we identify that something in an off-prem cloud doesn’t meet our
needs, we can keep it [on-premises] until that changes. That’s the sweet spot we’re at:
We can move workloads fairly easily. By establishing a flexible and dynamic
environment, we are ready to react to whatever business need is out there.”
It’s a win-win scenario in which business users are empowered with access to the apps
and information they need, when and where they need them. IT gains credibility as
a strategic partner, able to move faster and drive innovation without the protracted
deployment cycles and pushback that too often characterize traditional
IT engagements.
“We’re fundamentally changing how we interact with our clients and other partners,”
says Anil Cheriyan, CIO of SunTrust Banks. “We need to be present in the digital
ecosystem. Our ability to do that is based on our ability to have an open, API-driven
platform. We’re driving toward a new agility that’s across the board both from a business
and technology standpoint.”
Risk Assessor
Evaluates and advises on
41%
Strategic Advisor or governance lens
Proactively identifies business need/opportunity
and makes recommendations regarding
technology or provider selections
Roadblock
Rogue Player
9%
Consultant
Tends to do their own thing
22%
Evaluates and advises in technology procurement
on business need, for new initiatives, creating
technology choices, or challenges of transparency
providers upon request and visibility
Given the complexity, partnerships are critical in the new world of Hybrid IT,
in terms of both leveraging the right technology and having access to ongoing
coaching and expertise. While the road to Hybrid IT is full of twists and turns,
forward-thinking technology leaders don’t let obstacles and uncertainty
deter them.
“We launched into this not knowing how to solve some of the problems and
without having some of the skills on board,” says William Mayo, CIO at Broad
Institute. “We’ve been able to sort it out with hard work, ingenuity, a bit of luck,
and great partnerships with our providers. We just keep solving every problem
as it comes at us, because not solving them is not an option.”
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