Future of Infrastructure:

Commonwealth
Perspective

Commonwealths Journey

Beginning to prepare for cloud transformation

Well tested the vendor landscape and conducted multiple
proofs-of-concept
Vendors are known / emerged and footprints deployed with
early stage app migration
Initial efforts focused with relatively lower organizational impact
and level of effort
Stakeholder commitments - internal and external stakeholders

2020

but face substantial challenges in completing the journey

Application
Migration

1000s of applications, global scope, zero business disruption

Many applications requiring modification, re-platforming or
refactoring
Staffing constraints in bandwidth and skills

Operating
Model
Refresh

Significant run-rate reductions have been identified but costsavings are loaded on the back-end
Staff is multi-hatting to run the operation, the operating model
needs to catch-up

2015

Cloud
Transformation

2010s

PaaS
Emergence

2000s

Blades / Server
Virtualization

1990s

Rise of Data
Centers

Infrastructure is no longer an IT domain it will transform as a series of bundled

services provided through a services catalog.

New operating model requirements greenfield vs. brownfield,

updated org structure, new roles and responsibilities, new
processes, skill gaps
Commitment to service and business continuity

Process and
Financials

Extensive tool selection and deployment requirements for tech

ops, code and configuration management, ITSM, ITFM, ITBM
etc.

Development

Demand for rapid deployment of Agile / Dev Ops capabilities

What hasnt changed.

Regulatory drivers
Competitive drivers

Continuity of Business /
Proximity risk
Basel III / CRD IV

Regulation &
Risk Mitigation

Affordable care act

Structural reform
measures

Increasing
Competition

Threat from substitute

product providers (e.g. P2P)
Price competition from
aggregators

Consumer protection /
conduct agenda

Faster time to market for products

Platform stability / Reduction

in Severity-1 outages

New business models / rapid

inorganic growth

Clients
Today
Consumer drivers

Increasing Cost Pressures

Rise of the digital consumer

Shrinking Budgets / Cost

Pressures
Greater Financial
Transparency
Shift to variable Costs/payper-use;/subscription models

Cost
Pressures

Shifts in
consumer
behavior

Increasing customer expectations

due to technological advancements
in consumer products (e.g. Mobile)
Increasing social engagement
Price sensitivity and rise of
independent aggregators

Show back/Chargeback

User oriented service catalogs /

anywhere / anytime access

 and what has?

Embark on multi-year Global IT
Transformation to modernize IT
infrastructure and application portfolio in
a broader effort to cut $$$ from the
budget

Consumer grade experience is the new

gold standard to IT Delivery
The number of mobile connections will
reach 8.5 billion in 2018 (Gartner, 2014)
Wearables will be a huge market, worth
$25 billion in 2016, the market will
quadruple to over $100 billion by 2024
(Gartner, 2014)

Outsourcing core infrastructure to multimillion/billion dollar services agreement

Consumer
Behavior

Client
Shift

Creating Automated Private Clouds with

key tenant centered around Scale,
Speed, and economics

The average consumer will routinely carry

around an average of 25 connected
electromechanical sensors by 2024
(Gartner, 2014)

30% of Cloud spend goes to no name

provider / infrastructure
Gartner predicts IoT to include nearly 26
billion devices, with global economic valueadd of $1.9 trillion by 2020
Growth in the number of intelligent edge
devices over the next 5 years (IDC, 2014)
There will be a 10X explosion of new cloud
apps between 2013-2017 and a 3X
expansion of the cloud developer
community (IDC, 2014)

Industry
Trends

Moving all non-production services to

cloud as a first pass

Tech
Trends

Private Cloud Infrastructure spending grew

by 18.3% year over year
Gartner predicts that infrastructure-as-a
Service market revenue will grow at a
CAGR of 31.7% through 2018 as
companies continue to grow and expand
existing data center infrastructure services
($50B addressable market)
More than 70% companies understand the
importance of infrastructure services, but
only 22% claim to have a well-defined IT
Infrastructure in place

Key business imperatives are influencing how we respond - realign the technology
infrastructure operating model
Market forces, business pressures, and technology innovation are forcing CIOs and CTOs to transform technology infrastructure
primarily to reduce costs, improve service quality, and minimize risk

Technology Infrastructure Levers

Business Imperatives

Cost
Effectiveness

Shrinking budgets / cost pressures

Greater financial transparency
Shift to variable cost / pay-per-use
subscription models

Data Center Transformation

Facilities Consolidation
Software Defined Data Centers
Hybrid Cloud Models
Automation Workflow and Infrastructure
Disaster Recovery Strategy

Service Quality
Improvement

Platform stability / Reduction in

Severity-1 outages
Faster time to market for products
User oriented service catalogs /
anywhere / anytime access

Server Virtualization / Standard Platforms

Storage Optimization / Reclamation
Network Convergence

Business Agility

New business models / rapid inorganic

growth
Exponentially higher transaction
volumes / unstructured data
Ability to dynamically scale capacity up
or down

Asset Optimization

Workplace Transformation
Mobility / Unified Communication

Desktop Virtualization
Bring Your Own Device (BYOD)

Labor Reengineering
Global Operating Models
Right-sourcing / Shoring

Risk
Management

Continuity of Business / Proximity risk

Cyber Security
Increased regulatory and legislative
scrutiny / pressures

Labor less IT

COO / CTO Transformation

IT Service Management / ITIL
IT Finance & Performance Management
Business Engagement / Portfolio Management

The Software Defined Data Center

New development on software-defined storage and network has resolved infrastructure constraints and given rise to the SoftwareDefined data center (SDDC), allowing most components of the application layer to be independent of hardware layer.
Impact and Considerations
Compute, storage, networking, security, and availability services
are pooled, aggregated, and delivered as needed

Typical Data Center

Software-Defined Data Center

Managed by intelligence-driven software for configuration,

monitoring, provisioning and decommissioning
API-Driven Cloud management capability
Application layer abstracted and independent of hardware layer

Mix of Virtual and Non-Virtual

Network, Storage, Compute

Fully Virtualized Data Center

Fully Automated

Semi-Manual Admin and

Manage

Mix of Manual and Automated

Management / Allocation of Resources

Workflow will be simplified by implementing a new service that

reduces infrastructure silos
Increased demand for commodity hardware and automation will
lower CapEx and OpEx
Software defined Networking supports VXLANs improving flexibility
over VLANs
Open API interaction helps application development become
independent of physical architecture

Software Driven Dynamic (Automated)

Management / Allocation of Resources

What Our Peers Are Facing

What Our Peers Are Facing

What Our Peers Are Facing

The Future Autonomic Platforms

Build once, deploy anywhere approach in
which new architectures utilize containers,
provisioning, and advanced management and
monitoring tools to seamlessly move workloads
between traditional on-premises stacks, private
cloud platforms, and public cloud services.
As cloud meets the ground, end-users can focus
exclusively on outcomes, rather than where
resources are located and how services are
provided.

PA Autonomics - Concept
OA Service Catalog
L
C
E

IaaS

L
G

Agency

o
O

Customization

PaaS

U
C

A
D

SaaS

20%

40%

30%

Challenges

12

ITSM
Network
Risk Management / Security
Investment move applications across platforms
Business & IT Continuity with higher availability

10%

Application
Driven

The Future Vision