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.
Read more about FASTWEB’s implementation in this case study and this recent CiscoLive Milan presentation.
Tags: Cisco, cisco IAC, Cloud Management, cloud management platform, Hybrid Cloud, paas, private cloud, Public Cloud, SaaS, UCS, Unified Data Center, vCloud Director, vCloud Suite, VMware
We in IT are faced with many challenges from our end users. From IT costs to application performance, while always keeping an eye on our network security posture. This reminds me of a sign on the wall of my auto mechanic’s shop: Good, Fast, Low-cost. I was always told I am allowed to pick only two. I would of course question him, “why cant I have something with high quality, on time, and within budget?” This always made him smile, but he still told me I could only pick two.
So back to our IT challenges: Cost, Performance, and Security. Application performance is something we can all see, feel and touch. When thinking about performance, we need to also consider where these applications are coming from. Looking at applications like Microsoft’s Office 365, we are seeing mission critical applications from outside our data centers being delivered as Software as a Service (SaaS) solution. Does this matter to our end users? They sit at their PC’s, Tablets, Mac’s, etc. and know when something is not going fast enough. Their expectations are growing; they always expect the best performance. If they don’t feel their Outlook e-mail is opening fast enough or that the saving of their PowerPoint file is taking too long, they do not hesitate to let us know. And oddly enough, everyone just assumes it is the network. So not only do we need to think about our networks, but the Internet performance as well.
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Tags: AVC, Cisco iWAN, Cisco WAAS, Intelligent WAN, IWAN, Microsoft Office 365, SaaS, WAN Optimization
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.
And as always, to learn more you can begin here.
Tags: Cisco, cloud, Cloud Computing, Hybrid Cloud, private cloud, Public Cloud, SaaS, Service Provider, strategy
Trade (also known as “commerce,” “financial transaction,” and “barter,” among other terms) involves the transfer of ownership for goods and services from one person or entity to another by receiving something in exchange from the buyer. A network that allows trade is called a market.
Trade originated with the start of communication in prehistoric times. Trading was the main facility of prehistoric people, who bartered goods and services long before the introduction of modern-day currency. Peter Watson traces the history of long-distance commerce to 150,000 years ago (source: The Mediterranean in History, David Abulafia, Getty Publications, 2011).
Practices in modern cross-boundary/country trade have remained relatively static for the past 150 years. The only widespread implementation of technology to facilitate trade has been the advent of phone, fax, and (since 2002) EDI – Electronic Data Interchange (source: “Integration of Electronic Data Interchange (EDI): A Review,” Gengeswari, K. and Abu Bakar Abdul Hamid). More recently, widespread use of email has augmented phone- and fax-based communications.
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Tags: Cisco, cloud, Internet of Everything, market, SaaS, smart trade, Smart Trade Initiative, software as a service, trade, unified communications
Over the last six months, I’ve talked with numerous customers and partners. One thing is clear: People get it. Connecting employees, vendors, partners, and customers — so they can work together with no barriers — makes sense. It saves money and time, and builds relationships.
It seems like overnight we landed in a post-PC world — a place where working from anywhere, anytime is how it is every day. Two technology trends are driving this new work-style while embracing the existing IT landscape: cloud-based applications and smart mobile devices.
Cloud-based services are already familiar in the consumer world — with music, storage, and social media — and in the business world with customer relationship management (CRM) and other transactional applications. The software-as-a-service (SaaS) model offers well-known benefits to IT — such as rapid deployment, flexibility to meet changes in demand, and the ability to shift costs from capital to a predictable operating expenses — all while providing an “always on” service that is available anytime, anywhere.
I keep coming back to that: anytime, anywhere. It is the touchstone for this new work model. Smart mobile devices are the perfect complements to cloud-based services. We can have consistent access to information from different devices and locations throughout the working day. Check email, join a conference call, or participate in a video conference — all from your smartphone, notebook, tablet, or desktop. Whether you are on the road, in the office, or at home — place doesn’t matter. The Cisco WebEx cloud collaboration applications are hosted on the Cisco WebEx Cloud, a platform that supports nearly two billion Read More »
Tags: Cisco WebEx, Cisco WebEx Cloud, cloud, collaboration, crm, Post-PC Era, SaaS, software as a service