Do you remember when cloud services first emerged? Driving operational efficiency was the name of the game – specifically reducing IT costs. Now, as organizations continue to innovate themselves, many are expecting their cloud services to be instrumental in digitization efforts that can improve business growth and drive innovation.
A Cisco-sponsored IDC survey revealed that a second wave of cloud adoption is emerging. Companies now have higher expectations and view cloud as a way to drive innovation and revenue growth. The first wave of cloud was primarily tied to operational efficiency and that is no longer the case. This next wave of Cloud adoption is driving more EFFICIENCY, it is increasing IT SPEED and it is enabling new and DISRUPTIVE applications.
For those companies which have been able to optimize their cloud strategies the results are extremely positive across a number of key performance indicators (or KPIs.) But there is room for improvement since only 1% of organizations are getting the most out of their cloud strategies (or have in place optimized cloud strategies).
As private and public cloud adoption continue to increase, the opportunities for Cisco to help our customers get the most out of their cloud deployments also will continue to grow. How can companies proceed in developing a cloud strategy that will help them take advantage of this second wave of cloud innovation? And what are the business benefits of doing so?
We worked with IDC to make all this research actionable for our customers and help organizations define their own cloud strategy. The Cisco Business Cloud Advisor (BCA) framework in addition (first and foremost) to our Cloud portfolio will allow us to help you derive more value from your cloud deployments. Cisco offers innovative private/hybrid cloud solutions (build your own or as a service) and with our partner ecosystem we can help organizations embrace the cloud with confidence while accelerating deployment times and business impact.
In the quest for efficiency, IT organizations have already invested in consolidation and virtualization. They next area of focus to drive efficiencies now is automation, meaning the ability to simplify and bring consistency to provisioning, improve workflows, and accelerate IT services lifecycles. And while automation’s sweet spot may start with efficiency, its function and impact needs to continually extend and evolve beyond the data center as we expand our playing field into cloud and to the edge of the network and IoT.
When it comes to speed, it’s a matter of delivering on the needs of stakeholders (such as LOB leaders and developers) in a timely fashion to help them stay ahead of market disruptions and capitalize on new opportunities faster. This requires support for flexible consumption models to deliver new IT and business services, whether sourced internally or externally via the cloud.
And when it comes to digital disruption, the next wave of market disruption is coming from IoT applications and goes well beyond big data and enabling M2M communication. It requires a radically different shift in what we consider the traditional boundaries of IT organizations. With the right IT capabilities, information from the IoT can be turned into actions quickly, creating new and disruptive capabilities, richer and innovative experiences, and unprecedented economic opportunities.
And finally, with the considerable complexity of today’s IT environment, especially when that environment includes public cloud resources, it’s critical to ensure security is pervasive across the extended network.
So at a minimum, you need automation, support for flexible consumption models, edge/IoT applications, and security to make this combination of efficiency, speed, and disruption a reality while extracting the most value out of your cloud services.
So the question now is … where are you in the journey? Take a quick assessment to preview the possibilities and engage with our Cisco Team and our Partners to begin a much deeper conversation during a BCA workshop.
Tags: BCA, business outcomes, Cisco BCA, cloud, cloud maturity, cost, Hybrid Cloud, IoT, private cloud, Public Cloud, revenue
When wireless for LAN burst onto the scene, companies were a lot slower than their employees to embrace it. Employees didn’t want to be tied to their desks. So they brought in their own wireless access points, stashing them under desks and in conference rooms. Soon companies began realizing they had a big mess of unsecured Wi-Fi AP’s on their hands—a problem for any organization trying to keep their data and intellectual property secure.
Shadow IT isn’t new. As new technologies emerge, employees leap frog over IT in search of better ways to do their jobs. Cloud is no different.
What makes cloud stand out from past shadow IT situations is the magnitude of the challenge.
To shed light on shadow IT cloud use, we analyzed actual network traffic data and statistics garnered from Cisco Cloud Consumption Service engagements with large enterprise customers six months ago and again at the end of 2015. The conclusion: the shadow IT challenge is rampant, pervasive, and growing explosively.
Shadow IT is indiscriminate. It is found in every industry, in every organization (even those who block internet traffic), and in organizations of all sizes. The average large enterprise now uses 1,220 individual cloud services, up from 730 six months ago. That’s up to 25 times more than recognized by IT—who estimate that they are using 91 public cloud services. The number of cloud services used by large organizations has grown an astonishing 67 percent over the past six months, and 112 percent over the past year.
We’re essentially witnessing a democratization of IT. The business groups have spoken and they want the flexibility and innovation cloud services can deliver. There’s no turning back the clock here. In fact, a recent IDC study commissioned by Cisco clearly shows an optimized cloud strategy delivers dramatic business benefits. But only 10 percent of organizations have a proactive cloud strategy, with only 1 percent fully optimized. This means that 90% of the market has reactive, fragmented strategies.
Risks Hiding in the Shadows
The uncoordinated use of public cloud can leave the business open to a wide range of risks. Our customer engagements helped us identify the top five business risks:
As cloud services are increasingly used to support business operations, service disruptions can have a significant impact. Service disruptions can result from planned and unplanned outages, disasters, or from inability of a cloud provider to meet acceptable recovery times.
There is also a potential for a cloud provider to cease operations due to financially-based shut-down, acquisition, or other operational failure. Based on financial viability scores provided by Dunn and Bradstreet, we have found that 26% of cloud providers used by Cloud Consumption customers are ranked very high or high risk of ceasing operations in 12 months. That is one out of every four vendors! If a vendor you were using ceased operations, could you replace them quickly or retrieve your data in a timely manner?
With more critical data residing in the cloud, it is vital for organizations to ensure that business data (customer, employee, partner) is being protected from malicious acts. The first step is to ensure you are using vendors with a strong track-record of data protection and adequate policies. Could you identify vendors who might pose a risk to your data protection policies? The cloud can be extremely secure, but all cloud services aren’t created equal. You’d be surprised at how many high-risk vendors you might be using. Cloud Consumption customers discover they are using an average of 44 high-risk services.
CIOs are responsible for ensuring that cloud services being used by their organization follow policies that would keep the organization compliant with regulations as well as understand what services they are using might be included in an audit. Of the top 100 cloud services used by Cloud Consumption customers, 60% are subject to major regulatory compliance issues and contain data that would be subject to an audit. (The four major regalatory complaince issues are financial reporting/SOX, Protected Health Information/HIPPA, Payment Card Industry, and FedRAMP) If you have an audit coming up, would you understand what services might be included?
Increasingly, lines of business are making purchasing decisions often without oversight for IT. As every company becomes a technology company and budgets shifts to line of business, organizations are faced with runaway cloud spend. Why? They are spending money on redundant services and are facing hidden costs.
Do you know how much your organization is actually spending on cloud? Are you negotiating discounts on behalf of the entire business?
One of the quick wins our customer have found is around redundant cloud services. Organizations are often using multiple service providers that offer similar functionality. We have found that customers on average use:
- 92 hosting services to gain internet access
- 84 marketing and sales services
- 71 financial services such as banking and tax cloud applications and hosted insurance
- 61 compute services for running cloud-based systems
- 51 collaboration services like video & web conferencing, on-line training, education, and desktop sharing (not including social media)
- 46 cloud storage services to store unstructured data (not including backup and recovery)
- 37 office productivity services to produce documentation or manage projects
- 36 business intelligence services such as dashboards, reporting systems, scenario modelling, and data analysis
Organizations have ineffective capabilities to monitor performance against service level agreements and are challenged to determine if they are receiving what they paid for. This problem is magnified when lines of business rather than IT are overseeing negotiations and might not be aware of contract pitfalls. Do you know if your providers are meeting their SLAs?
You Can’t Manage What You Can’t See
If you answered no to any of my questions above, you may need our help!
To help CIO’s manage their shadow IT issues,we last week. The new software-as-a-service product can help you to:
- Discover and continually monitor public cloud use
- Reduce your financial and security exposure by identifying cloud business risks and compliance issues.
- Cut cloud costs by finding ways to consolidate or discontinue services.
- Strategically manage cloud use by understanding needs of employees and internal groups and benchmarking cloud usage data against your peers.
- Improve business agility by finding the right cloud services to meet your business, risk, and compliance requirements.
Sound interesting? I’m hosting a webinar on how to “Discover and Managing Your Shadow IT” on Wednesday January 20th at 9 am PDT. I encourage you to register HERE to learn more.
If you want to know more about your cloud please contact us for a demonstration of Cloud Consumption as a Service or learn more.
Tags: #ShadowIT, cloud, cloud consumption as a service, cloud services, Hybrid Cloud, private cloud, Public Cloud, security
There is no denying it cloud has moved beyond buzzword and become a key foundation element for over 40% of enterprise organizational strategies. Making the decision to “go cloud” is the easy part. Figuring out how to optimize and deliver on your cloud strategy is another discussion.
The “first wave to cloud” was focused on operational and service delivery measures such as reducing IT operational costs and improving organizational delivery to meet SLAs. However, just when you thought you had a handle on these measures, here comes the second wave of cloud.
Reducing operational costs and improving SLAs has become minimum requirements just to get a seat at the table. Being a “player” in the cloud market requires broader impact across the organization and more strategic measures of business success: innovation and increased revenue growth.
If you would like to learn more, read the latest thought leadership piece on CIO.com.
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Tags: Cisco Business Cloud Advisor, Cisco cloud, cloud strategy, Hybrid Cloud, private cloud, Public Cloud
The world is experiencing a digital revolution that is rapidly changing your business landscape. This revolution is not only connecting people with digital technology; but it has made this technology ubiquitous in all of our lives. The result is tech-savvy employees and customers with new expectations how to interact with your business.
Meeting these expectations requires a transformation into a consumer technology company by utilizing digital technology to streamline operational processes and improve customer experiences. Industry data indicates those organizations begin this transformation process experience increased profitability, market value and revenue.
Cisco’s private cloud automation facilitates the transformation of your business from manual to automated standardized service delivery. Converting manual processes into automated workflows increases data center productivity which fuels faster time-to-market by business and application teams of new products or services.
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Tags: Cisco, cloud automation, Enterprise Cloud Suite, HP Helion, LightEdge Solutions, private cloud, VMware, vRealize Suite
The world is experiencing a digital transformation as everything – customers and technology alike – are becoming connected; which has made technology pervasive in all of our lives. The tools we use have been on a fast innovative pace which has made us all tech-savvy individuals. If you doubt this, just watch a 6 year-old with an iPad.
We have all become accustomed to a user experience that empowers us to receive information, products or services immediately. The problem is, once we enter the business world, the user experience changes dramatically.
Does business need to transform? Yes! It needs to change the pace at which it delivers services both within and externally as well as address customer expectations for a self-service order experience. From what I am hearing during customer conversations, the good news is that businesses are acknowledging that changes are required.
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Tags: Cisco, cloud automation, Enterprise Cloud Suite, infrastructure automation, private cloud, VMware, vRealize Suite