Imagine that you head the leading telecommunications provider in Italy and you are watching traditional service and revenue streams struggle under intense competitive pressure. Customer retention is a major issue because the types of services required by your residential and business clients are changing. Clearly, you need to retain customers and do so by offering new services. It is a generally known business fact that often it is more cost effective to invest in retaining customers than trying to get new ones in such competitive industries.
So, how would you do it?
FASTWEB, a Swisscom company, asked Cisco exactly that question. FASTWEB’s analysis indicated that offering cloud-based service delivery would be an excellent opportunity to retain existing business while capturing new revenue streams from Italian businesses looking for new IT solutions. But FASTWEB struggled with execution due to insufficient resources to develop and deliver these new services.
So, FASTWEB adopted Cisco’s Unified Data Center architecture which includes Cisco UCS Blade Servers and Intelligent Automation for Cloud (IAC). Cisco UCS servers were selected for performance, reliability, and the ability to integrate smoothly with other heterogeneous elements in their solution stack. They thoroughly analyzed cloud management solutions, and Cisco IAC scored the highest in their evaluation for:
• Openness and flexibility
• Ease of use by users and administrators
• Single management console access to the entire cloud service lifecycle
• Ability to build services without deep technical skills
Teaming with Cisco Services, FASTWEB implemented cloud service delivery across six distinct use cases. Because of UCS they did so with minimum server hardware, gaining a complete cloud infrastructure that consumes only a few racks. With this Cisco Unified Data Center strategy and solution, FASTWEB estimates their customers can save around 50 percent over three years utilizing FASTWEB services compared to on-premises infrastructure.
What’s more FASTWEB relies on Cisco IAC to offer customers a portal that is intuitive with fast delivery thanks to strong automation and orchestration of all cloud elements, including network. None of their competitors in the Italian marketplace has an offering equal to this unified solution from Cisco.
Now FASTWEB’s cloud services are growing smoothly thanks to technology that scales as quickly as their business does. FASTWEB plans to expand its use of Cisco IAC to offer new services as such PaaS and SaaS for their customers.
The next generation Nexus 5600 family offers VXLAN bridging and routing capability, line rate L2/L3, and 40G uplinks, to deliver high performance in a compact form factor for 10G Top of Rack, 1/10G FEX aggregation deployments.
AND THERE HAS BEEN BROAD CUSTOMER ADOPTION ACROSS THE DATA CENTER!
From Nexus 1000V to the Nexus 9000, Cisco’s holistic approach resonates with customers because it provides increased business agility, operational efficiency, and empowers IT to rapidly evolve as business requirements change.
Here are the latest examples of why our customers chose Nexus:
If you are reading this blog hoping to get a universal recipe for your cloud strategy, I believe you will be disappointed. But then, you already know…. there are no ‘universal’ cloud strategies. You have to formulate a cloud strategy that best fits your business objectives and IT priorities (among a number of other factors.) Our Cisco services team for Cloud Strategy, Management and Operations has various tools including our Cisco DomainTen™ framework that will help you formulate the right cloud strategy for your organization. Parag’s blog is a great source of information in this regard.
This blog series instead will offer a set of perspectives on how I view the evolution of the World of Many Clouds ™ and what steps we are taking to align our cloud strategy to capitalize on it. This first blog will put our strategy in ‘context’ outlining our point of view in light of some important market dynamics.
The primary market research study that we conducted in collaboration with INTEL, along with additional secondary market research studies, clearly indicate that Line of Business (LoB) leaders have been playing a more important role in driving requirements for IT solutions and services. The reasons behind this trend are many, including and not limited to increasing market and competitive pressures, an uncertain business climate, variability of macroeconomic factors and a relentless need to innovate at a faster pace to stay ahead of the competition. What’s more, LOBs now have greater ability to access IT solutions – such as Software as a Service -- outside the traditional enterprise IT value chain, creating “shadow IT” initiatives. In response, IT organizations are looking for new ways to retain their leadership, control, and at times, even relevancy. Furthermore, IT organizations are now expected to support strategic business objectives and enable business growth while also harnessing new technology trends, leading to innovation and new customer experiences. To remain relevant to the business, IT must become a “change agent” and be perceived as a true strategic enabler. The question is how?
We envision IT organizations transitioning to new roles as trusted ‘brokers of IT services’. This model enables IT to add value to one or more public or private cloud services on behalf of its users. IT does this by dynamically bringing together, integrating, and tailoring the delivery of cloud services to best meet the needs of the business.
In a wide-ranging study, Cisco, in partnership with Intel®, sought to pinpoint just how these powerful trends are impacting IT. The “Impact of Cloud on IT Consumption Models” study surveyed 4,226 IT leaders in 18 industries across nine key economies, developed as well as emerging: Brazil, Canada, China, Germany, India, Mexico, Russia, United Kingdom, and the United States. The study supports our point of view. Up to 76% of the survey respondents signaled that IT will act as a “broker” of cloud services across internal and external clouds for LoBs.
In other words, when formulating their sourcing strategies, IT organizations repeatedly face service-by-service, “build-versus-buy” decisions. Therefore, IT needs a plan and a set of governance criteria that support the consistent evaluation of their IT services sourcing options (e.g., time to market, value, sustainable differentiation that the service can provide, SLAs, cost, risk profile and the experience the IT department intrinsically has with that particular service etc..)
This “IT services sourcing flexibility” enables greater levels of business agility, transparency, and speed of deployment to help LoB leaders unlock innovation and achieve core business objectives.
However, let’s step back and see how this is all fitting together. If we rewind, we introduced the concept of the World of Many Clouds ™ a couple of years ago. You can view the evolution of this world as the outcome of the intersection and progressive integration between traditional IT environments and IT services offered by public cloud providers. The roads (in our metaphor) are converging. Lines are blurring. In theory, nothing is preventing a company that consumes IT services from becoming a cloud provider itself (public or private.)
I also believe that the debate regarding private versus public cloud is over. It is about having both at the same time. And to be able to bridge and take advantage of both; hybrid cloud is the new ‘normal.’
In turn, the ability to combine and dynamically aggregate cloud services from private and public clouds can truly occur if IT organizations can rely on an open and secure hybrid cloud environment. And for that to take place you should have the ability to move your cloud workloads (and more broadly your IT services) around. Both data and applications.
You can easily envision a scenario in which a workload -- based on a set of specifications -- ‘automatically discovers’ the best infrastructure to run on. An exchange could facilitate the allocation process. An XML based standard could emerge along with a set of processes used by exchanges to match demand and supply of IT services based on SLAs, costs, data locality requirements etc… On the supply side you can also envision a scenario in which federation or capacity aggregation among suppliers of cloud services would enable increased economies of scale, consistency and a broader set of choices.
Ok … coming back to earth … our Cloud strategy intends to capitalize on some of these market dynamics and enable IT to retain control, relevance and increase its strategic profile by leveraging the evolution of the World of Many Clouds. In my next blog I will provide an overview of the actual strategy and begin focusing on it in more detail. But first I wanted to share the context.
I’m at our annual Cisco Live Europe conference in Milan this week – it’s a great event and a great opportunity to introduce new innovations to customers. In fact, today we announced the latest release of our cloud management software solution: Cisco Intelligent Automation for Cloud (Cisco IAC) version 4.0.
I recently wrote about the new Forrester Private Cloud Wave, and how Cisco was ranked in the top three overall and #1 in strategy. Our high marks in strategy in that report were based in large part on the roadmap and strategic vision that is being delivered through this new cloud management release – together with the latest release of Cisco UCS Director for infrastructure management.
Cisco Intelligent Automation for Cloud is a cloud management platform designed for enterprise and public sector IT organizations building private and hybrid clouds, as well as service providers deploying public or virtual private cloud services. This is the fourth major release for Cisco IAC – and it’s a big one.
With the new 4.0 release, Cisco is breaking ground by providing both the out-of-the-box functionality that our customers are asking for and the flexibility that we know they need as they extend their cloud deployments beyond basic IaaS.
In my previous blog , I noted that IT is increasingly transitioning towards an IT service broker role, taking advantage of multiple sourcing options to become an intermediary of cloud services offered to the business constituents. The role of IT as a broker of cloud services enables them to add value on behalf of its users by dynamically aggregating, integrating, and customizing the delivery of multi-cloud services (whether public, private or a combination of both) to best meet the needs of the business.
It’s now time for Cisco to take the next bold step in leading the evolution of the “World of Many Clouds,” journey with our partners. Today, at Cisco Live! in Milan, we announced important news in the significant expansion of our Cloud Portfolio to enable a new Fast IT model. The new products and services in Cisco’s extended cloud portfolio include:
These solutions that we will detail in coming blogs are designed to provide major benefits for your organization as you move to the world of many clouds. They allow you to
Reduce your exposure to risk in cloud environments.
Enhance your business flexibility with a choice of consumption models in the world of many clouds.
Increase agility and reduce TCO by managing and automating your cloud environments
Our breakthrough hybrid cloud solution, Cisco InterCloud, which lowers total cost of ownership for organizations and paves the way for interoperable and highly secure public, private and hybrid clouds. The addition of InterCloud to our Cloud portfolio also broadens Cisco’s commitment to openness and shows the unique value our partner-led model.