Mary Kay: Cloud Enablement Project

Mary Kay at a Glance

Mary Kay started her business 53 years ago on Friday September 13 th, 1963. Today,
her business reaches more than 35 countries through 3.5 million Independent Beauty
Consultants. In 2015, it was reported that Mary Kay sales exceeded $4 billion. 1 This
company has created many custom applications and purchased systems to support the
business-wide goal to enrich womens lives.
Consultants are given the tools to create personalized webpages to promote their
business, the Mary Kay myCustomers app gives consultants a single source to create
tickets, manage inventory, and help her customers from a mobile device. Along with
these tools for the sales force, there are many other apps used internally. For example,
the Supply Chain department uses different tools to analyze and maintain the
worldwide supply chain activities, the eCommerce team needs a way to monitor the
activity on the customer apps and ensure they are all working as expected, etc. Along
with each of these applications, there are databases, which contain tables that may be a
terabyte each, storing all of the data. Currently all of the data generated by these
applications, both used by internal departments and customers, is kept on premise at
five different datacenters across the globe.
ITIL Utilization
Mary Kay utilizes ServiceNow as an ITIL Platform. The company has only recently
adopted this service as catalogs are still being developed. There is a lot of room for
improvement and presently there are a lot of growing pains in this area as ServiceNow is
not being operated at its fullest potential for Mary Kays IT department.
As the companys global presence and sales force flourishes, there has been
increasing pressure to, not only keep up with what other competitors, but also sustain
the systems with the massive amounts of customer usage.
SWOT
This company has many strengths, which add to its overall competitiveness. These
strengths include brand awareness, diversified products regionally and worldwide, and
a unique business model that involves direct sales through the Independent Beauty
Consultants. Each of these strengths adds to the support of the consultants to help
them create the most successful business for themselves. However, a weekness would
incorporate the ability to catch the attention of the younger generation the average
age of the beauty consultants is around the early 40s.
There are many opportunities for Mary Kay to continue its remarkable growth. One
major opportunity would include taking advantage of the large millennial generation.
Millennials have an increased interest in communicating with their peers through mass

media. This could be a critical occasion for Mary Kay to see larger returns on
investments. However, they would have to be determined to change how the younger
generation views their brand. Now it is seen as a cosmetic brand for older women.
Project Summary
The project we suggest for Mary Kay is a data center transfer project called AWS
Transfer. More specifically, we suggest Mary Kay transfers its London data center to
Amazon Web Service, a cloud service. AWS Transfer is an infrastructure project and is
classified as a technology migration project. Technology migration means that the
technology, which already exists within the company, be completely sourced to another
owner or be change structurally. Currently, Mary Kay has a data center in London. This
data center supports all of Mary Kays headquarters including the one in Addison, Texas.
Since Mary Kay is a multi-national firm and serves in many markets worldwide, we
believed that the AWS flexibility will be extremely useful for its employees and
consumers.
Cloud Computing and Amazon Web Service
Cloud computing is a model which is model that allows users to have unlimited
network access to many technological resources such as networks, servers, storage,
applications and services. Cloud is one of the four Nexus of Forces. It is a third platform
which allows billions of users to use millions of applications. It also allows a business to
expand its influence socially through mobile devices and big data.
Amazon Web Services (AWS) is service which is categorized as an Infrastructure
as a Service (IaaS). It is a secure cloud service which provides businesses a database
storage opportunity within one of Amazons data centers in one of the Availability
Zones. AWS is available in 35 Availability Zones within 13 geographical regions.2 The
35 Availability Zones can be viewed in Appendix A. Each Availability Zone can contain
one or more data centers. Fault tolerance and low latency can result due to the
abundance of Availability Zones. In addition, Availability Zones are connected with fiberoptic networking which results in higher performance and higher proactivity in case of
failovers. Furthermore, Amazon Web Services makes it easy to replicate data across
Availability Zones or geographic regions, which results in even high performance
especially for international and multi-national firms.
Why Use Cloud and Amazon Web Service?
Mary Kay is a multi-national firm. Mary Kays business model currently involves
an agent to principal relationship. Mary Kay uses independent agents called beauty
consultants to sell and market its products. Since cloud is ubiquitous and allows data
access anywhere, its agent to principal model synergizes well with the cloud concept as
well as be beneficial to a regular Mary Kay employee as well. In addition, Mary Kay is
continually growing. In 2015, Mary Kay announced a double digit sales growth.3
Furthermore, the companys assets are also exponentially growing as it employees over
3 million independent beauty consultants and sells about 200 products in 35

countries.3 Transferring to a cloud computing system will be extremely beneficial for a

large, growing company like Mary Kay because it allows for data storage growth and
world wide access.
Amazon Web Service is the chosen cloud service because it out performs its
competitors. AWS was the first cloud IaaS therefore it has more experience compared to
other competitors such as Microsoft Azure.4 It is extremely reliable as it provides service
to an abundance of recognizable customers such as Airbnb and Netflix. It has a larger
market share, shown in Appendix B, than any other service. It has a broader set of
features and has been able to innovate faster than its competitors. As Appendix C shows
AWS innovate growth and its launch of 516 new features in 2014. Therefore, AWS
chosen because of its reliability, proven quality, innovativeness and continuous growth.
Process
Mary Kays current process is very similar to Amazon Web Service as they both
store its data in a mainframe. The main difference is that Mary Kay transfer its data
through its local network while AWS transfer its data through an internet storage
process created by its own services. The technology migration will be a complete
overhaul of the current process and will require many software and hardware
transformations.
The first thing that will occur is a data transfer. Mary Kay will need to migrate all
of its data to Amazon within its data centers and online web services. The data within
Mary Kays current data center will be transferred incrementally and will be performed
through an agile process.
Second, hardware and software installations will be required. Refer to Appendix
D to view all the processes. First, an AWS Storage Gateway Virtual Machine (AWS
Storage Gateway VM) will be installed on-cite within every Mary Kay datacenter. This
will be how the local software application syncs with AWS cloud storage. Next, a Secure
Sockets Layer (SSL) will be establishing a link between the AWS Storage Gateway Service
and AWS Storage Gateway VM will occur. This creates a necessary link between Mary
Kay and AWS data storage. Next, the Amazon Storage Gateway Service will connect
with Amazon Simple Storage Service (S3). Amazon S3 is storage via the Internet. It is a
component within the AWS process. Amazon S3 is then connected to the Amazon Elastic
Block Storage (EBS). Amazon EBS is a type of data storage compiled within Amazons
Storage Area Network (SAN). This is primarily used for persistent and volumes of data.
This will be extremely important for a large company such as Mary Kay.
Lastly, Amazon EBS will be linked to Amazon Elastic Compute Cloud (EC2). The Amazon
EC2 is a web service that allows resizing of AWS Cloud system. This allows Mary Kay to
increase and decrease its cloud storage services as necessary.
The time of completion for the AWS Transfer project will range from six months
to 12 months.
Capabilities

Mary Kays potential technology migration would be categorized as transitioning

from old capabilities to new capabilities. Mary Kays current and original model has large
data centers across the U.S. and overseas, one of which is in London. As our project
proposes, we want to shift our focus from data centers to cloud computing, specifically
with Amazon Web Service.
The old capabilities include most, if not all of the abilities Mary Kay perform with the
data centers. A typical data center consists of numerous servers, storage, network
systems, electrical systems, applications and tools, and its staff.5 Each data center
varies, as it depends on what kind of software operations each has. Each data center
blocks out any external influences and provides them with cooling. This allows the data
center to be in a controlled environment and eliminates any potential overheating. For a
big data center like Mary Kays, its data center houses servers, storage devices, cables,
and connection to the Internet. Managing a data center is complex, especially if its for a
large data center for a famous cosmetic product distributor like Mary Kay. Each data
center has to back up both the data and the power generator so that the power in the
center doesnt affect the servers or storage units. The capabilities of a data center are
limited because of the slowly, lengthy IT deployments. Its difficult to scale quickly with
data centers and managing the physical growth of the center is a strain on the business.
In some cases, when a business merges or acquires another company, they need to
create or consolidate data centers. 7 Its difficult to track all of the previous capabilities
because of the different data center locations Mary Kay has. Their IT infrastructure is
currently being managed across multiple locations. This leads to the possible conflicts
between multiple vendors and support contracts. With data centers, there is a higher
risk for outages and opportunities for individual failures.
It only makes sense for Mary Kay to strive and work towards completely shifting
their processes from data centers to cloud computing because of the constantly
changing market they are in. It is rare for businesses to create a plan and stick with it in
its entirety until its deployed. With cloud computing, Mary Kay can keep up with the
continual updates and make data changes on the fly. The transformation from a data
center to AWS cloud computing undergoes four stages: project, foundation, migration,
and optimization. 5 This process allows the company going through the transition to
understand the best practices and outcomes to use and expect.
Mary Kays transition into using Amazon Web Service allows them to gain many
new capabilities. Using AWS would allow them to develop, test, build, and run
workloads in an instant, rather than calling a data center and manually requesting to
make modifications. Amazon Web Service will essentially reduce the time and the costs
in the short and long run. It will first reduce the amount of time spent on creating
changes in their IT infrastructure for the company and the customers, and secondly it
will reduce the costs because of the money spent on the employees and physical
location far exceed the cost to upkeep the cloud computing. According to a Dow Jones
Case Study on their similar transition from data centers to AWS, AWS has predictable
cost capabilities. This eliminates the strain on the database administrators and staff

working in the data centers on having to learn, operate, and maintain a database. 6
There is also room for more innovation with cloud computing. AWS is easier, and
simpler to design. There are also essentially no capacity concerns because of the
amount of additional storage that can be bought. There are cloud advisory services,
which identify workloads suitable for cloud migration. Cloud implementation
capabilities are another addition, in which it installs, migrates, configures, integrates,
and administers the application in the cloud for each workload. Another useful tool
includes cloud-managed services that include ongoing support, administration, and
optimization of cloud deployment. Unlike the physical data centers, cloud computing is
only paid upon the space a business uses. Mary Kay can work with AWS to develop a
security model in order to ensure the use of cloud computing is safer than the physical
data centers. Overall, we can say AWS will improve Mary Kays agility and time-tomarket.
Phased Cost model
Amazon Web Services offers a pricing system that allows a business to pay for
only what is needed. This pay-as-you-go pricing is ideal for the flexibility of the project,
because it allows the customer to choose exactly how much storage is needed, and for
how long the service is to be used. There are no canceling costs or contracts involved as
well. The pay-as-you-go model allows a business to adapt depending on need, rather
than forecasts, thus reducing the risk of missing capacity or overprovisioning. This allows
Mary Kay to redirect their focus on innovation, enabling much more elasticity when it
comes to data management.
Capabilities and Improvements
Amazon Web Services is priced in tiers. There is a volume based discount that
allows a business to save more money as their usage increases. This tiered pricing model
can be viewed in Appendix E. 8 One useful aspect of this pricing model is shown by the
amount of savings that is created by choosing the right combinations of storage
solutions, paying for only what is needed, instead of paying for a bundle that has
leftover storage. Another useful aspect of this tiered pricing model is that data transfer
into the Amazon Web Services servers is completely free. This creates a large amount of
savings, especially in comparison to other cloud-based services, because many cloud
based services charge to transfer data into and out of their servers. Considering the
amount of data that will need to be uploaded into the cloud from Mary Kays data
center in London, being able to transfer all this data for free creates much more
flexibility in the project budget and cuts much of the costs allocated to migration for this
project.
Old Capabilities vs. New Capabilities and Reliability
One of the biggest benefits of transferring Mary Kays data from the London data
center to Amazons cloud services is the elimination of a physical data center. This
creates numerous savings, which include rent for the center; cutting of employee salary

and other costs associated with employees, plus no more server and electricity costs.
See Appendix F for more details. Cloud services are much more reliable, accessible, and
secure than traditional data centers. Another cost benefit to using cloud storage the fact
that cloud services is omnipresent, allowing for access worldwide. This allows for much
greater flexibility in terms of Mary Kays agent to principal model and for the average
Mary Kay employee as well. Mary Kay accrues costs when there are malfunctions or
breaches in its data center. An outage in the servers can cause problems throughout
both the business and IT units in Mary Kay. Outages in servers create a handicap for
developers, since they cannot deploy their code or access company informatics if the
servers are not accessible. This, as a result, hinders other aspects of the business. For
instance, if the servers are down, Mary Kay applications cannot be accessed. Sales
employees, customer service employees, and even customers use applications that rely
on the servers in the London data center. If a sales or customer service employee
cannot access these applications, business comes to a standstill, because these
employees utilize these applications to make transactions and create business
opportunities. If customers cannot use the applications, even more issues are created
because outages cause customers to take their business to other companies instead.
Losing profit due to server problems is an aspect that makes the transfer of Mary Kays
data from the London data center to Amazon Web Services valuable to the business.
Using cloud services instead of a physical data center eliminates the threat of breaches
into the servers, because there are no actual servers being used. Security is an immense
part of IT in this day and age, and having a reliable system like AWS, that has proven to
be successful in terms of both storage and security, will be of utmost importance for the
future.
Risks and Intangibles
With the migration to the cloud, the elimination of a data center cuts costs
drastically for Mary Kay. Unfortunately, cutting costs for capital expenses on a data
center also means letting go of many of the employees in this data center. The only
benefit to laying off most of the employees is the additional savings by salary cost
cutting. Although this creates savings for the company, laying off all these employees
has many negative intangible costs for Mary Kay as well. For example, many tenured
employees who have years of experience working with the company will be let go. This
creates the risk of losing knowledge within the company, something that can prove to
be invaluable, especially considering how much time, effort, and resources Mary Kay has
invested into these employees throughout the years. Another consequence of letting go
of all these employees is the impact on the image of the company. Letting go of
employees, especially the amount that Mary Kay will have to cut, is never beneficial to a
companys image. One way to bypass this could be to train existing employees at the
London data center in cloud technology. Of course, the main purpose of cloud
technology is to limit the amount of resources used, inevitably resulting in loss of
employees. Acceptance of a new technology also poses risks to the company, because
the implementation of the cloud network will take time and resources to get fully
functional with the other units of both the business and IT sides of the company. For

instance, migration of the applications will at some point cause downtime because the
applications cannot be used during the process of migration. Of course, migration of
applications will preferably be done outside of working hours; however, due to the large
amount of data that Mary Kay will have to export, flexibility may not be an option.
Arrangements will have to be made to best suit the business needs while also
completing the exportation of data in the fastest manner possible. Another cost to keep
in consideration is maintenance. Of course, with switching to the cloud, maintenance
will be less costly and less frequent than with a physical data center; however, these
costs will still be applicable, especially when Amazon upgrades its services, which it does
from time to time. These upgrades require a reboots. Amazon states that these reboots
should be infrequent, but may be necessary from time to time to apply upgrades that
strengthen our security, reliability and operational performance.9 It is also important to
note that Amazons updates are free, which is an added benefit to using cloud
technology. Updates to physical servers usually incur costs, and also cause additional
downtime.
Measuring Success
Maintenance on an infrastructure is not as obvious as a hole in a wall or a leak in
a roof. Thus, IT has developed an approach to analyze an infrastructure system by giving
components a rating or a health check score. Some metrics of measurements that
Mary Kay can use to assess whether or not a system is efficient and healthy for the
company are: maintenance level of effort, maintenance time frame, and useful life time
frame.
The maintenance level of effort for a local data center can be extremely
demanding in both cost and labor. Regular checkups must be made to ensure that all
equipment of the system are functioning correctly. Mary Kay will be responsible for
maintaining their own security and data administration as well. On top of all the
equipment, utilities and servers play a massive part in the cost of the data center.
Utilities consist of cooling and powering the entire system. Data centers can cost
businesses $10 million to $25 million per year to operate.10 If Mary Kay switches to
Amazon Web Services, Mary Kay will have little to no effort in maintaining the database.
Amazon Relational Database Service (Amazon RDS) manages clients by setting up
relational database that the client requests and automates administrative tasks, such
as performing backups and patching the database software that powers your DB
Instance. 11
The maintenance time frame for Mary Kays data center requires major
maintenance every 5 to 10 years. The schedule maintenance is necessary to ensure the
company stays up-to-date with current technology. If the company does not update
their data centers with current technology, they would not be able to perform as
efficient as other companies that do update their systems regularly. Fortunately,
Amazon AWS is essentially maintenance free due to its cloud nature. Amazon provides
the services to maintain the servers; thus, Mary Kay is only spending time to migrate
their database.

The useful life time frame of a data center depends on the acceptable threshold
for usefulness, reliability, or technological obsolescence. 12 In reference to Appendix G
as a view the difference of the health check rating between a data center and AWS, the
usability of Mary Kays data center should be ranked high because the company
specifically creates it. The reliability of the data center is second highest because it
should be well maintained. However, data centers fall short in technological
obsolescence. If the technology in data centers fails to be up-to-date, the technology
becomes obsolete. Without updating, their existence because useless. In total,
managing a data center is quite costly to maintain. AWS is healthy compared to data
center. The usability is excellent because its created and used to meet the users needs.
The reliability is excellent due to Amazons credibility. Amazon is a multi-billion-dollar
online company that has been developed over a decade. With our current technology,
cloud is the latest and most efficient technology for data storage. Theoretically, the
lifetime of cloud data is endless. Together, the cost to maintain a cloud database
through amazon is much smaller than a physical data center.
Impact on ITIL
To fully understand the impact that AWS will have within when finally
implemented we have to take a look at how the AWS affects ITIL. With that being said,
most aspects of ITIL will be affected. AWS will impact service strategy by making
managing investment and resource allocation simpler as everything will be housed on
the cloud. Filing all important documents and data into essentially one data source will
greatly help with being orderly with the data. When transitioning to the AWS, Mary Kay
will have the ability to also retire old data they do not use anymore, rationalize all data
so everything is coherent when transitioned into the cloud, and replace any data they
do not need or wish to renew. AWS will also ensure that there wont be anymore waste
on expense for excess capacity and ensure that a growing company such as Mary Kay
will have enough capacity for their every growing portfolio. Also Mary Kay will also save
on expense from things like disaster recovery, information security, IT Service Continuity
Management, and other security designs processes. Amazon will handle all process up
until the point that Mary Kay decides to continue in a different direction for data
storage. AWS will change service operation for Mary Kay. Processes of the service
operation like incident management, access management, and request fulfillment will
again be handled within Amazons system which will take a load off of Mary Kay and
their IT department. One of the only things that Mary Kay would have to ensure when
working with AWS is that access to their data was in order. Mary Kay is a worldwide
company that has business in all parts of the world. Making sure that the right things for
the right users at the right time is a top priority. Lastly AWS is always trying to improve
their service. Amazon has spared no expense when it comes to the AWS. The first of its
kind also the world leader in cloud services, Amazon is improving their processes and
their services every day to accommodate small and big companies like Mary Kay.
Amazon is constantly gathering, processing, and analyzing data to improve on what is

already a solid service. With this service Mary Kay can be assured that they are handling
the top of line in technology when it comes to cloud technology and data technology.
IT-CMF
IT-CMF talks about how the IT department brings value to the business as a
whole. Mary Kay being such a large company we can understand why data is an integral
part of every part of the business. With the implementation of AWS it is going to bring a
lot of value to Mary Kay from the IT department. One of the four macro capabilities that
is going to see an increase of value when making the switch from a database to a cloud
that is Managing IT for Business Value. The three critical capabilities within this area
are Benefits Assessment and Realization, Portfolio Management, and Total Cost of
Ownership. AWS address these three critical capabilities because after assessing the
cons and pros of AWS we find that moving from a database to a cloud data format will
allow us to hand portfolios a lot easier. Consolidating all portfolios to the cloud in a
system that can be used around world is the kind of flexibility that a large company
needs. Consolidating everything to the cloud also makes the data standardized so there
is no confusion on what one employee will see to the next employee even if these
individuals are a from different nations. Total Cost of Ownership will be affected
because Mary Kay can now shut down the database in London. This is going to lower
expenses because now you just have to pay for the servers that are provided by Amazon
instead of paying for the building housing the servers, the server themselves, electricity,
and so on. Other areas of IT-CMF that can see improvement would be Manage the IT
Capability and Managing IT like a Business. Both of these areas have critical
capabilities that pertain to data management like risk management, information
security management, technical infrastructure management, and so on. These
responsibilities are mitigated to Amazon which makes AWS value increase as well.
Conclusion
This project calls for technology mitigation from a database to cloud computing
and Amazon Web Service. Mary Kay is a multi-national firm that serves markets
worldwide combine with the flexibility of AWS is a great match. The ability for Mary Kay
to house all their data in one place and by one company while still reducing their cost
from owning a database. On top of cost reduction Mary Kay will see a positive impact on
all parts of the business when switching to AWS.

Appendices
Appendix A

Appendix B

Appendix C

Appendix D

Appendix E

Appendix F
Old capabilities
vs. new
capabilities

Costs The costs will

eventually
break even
since cloud
computing is
cheaper than
maintaining
the physical
server location
in the long run.

Capability,
reliability, and
performance
improvements

New technology
acceptance

Phased cost
model and
migration costs

AWS is proven to
be better than its
competitors,
which is why it is
the chosen service.
The cost of
switching is offset
by the upgrades in
both reliability and
performance.

With the migration to

the cloud, the
elimination of a data
center cuts costs
drastically for Mary
Kay, but also causes
layoffs of employees
working in the data
center. There are also
costs associated with
the maintenance
once the service is
implemented.

Amazons payas-you-go
pricing is ideal
for the flexibility
of the project,
because it
allows the
customer to
choose exactly
how much
storage is
needed, and for
how long the
service is to be
used. There are

no canceling
costs or
contracts
involved as well.

Appendix G
Infrastructure
System
Data Center
AWS

Usability
(meets
need)
4
5

Reliability
(Outage
Frequence)
3
5

Technological
Obsolescence

Cost to
Maintain

2
5

5
2

Usability: 1 not useful, 5 useful

Reliability: 1 unreliable, 5 reliable
Technological Obsolescence: 1 obsolete, 5 not obsolete
Cost to maintain: 1 Affordable, 5 expensive
Health Check Ratings:
1.0-3.5
Needs attention in the next 1-3 years
3.5-4.49 Needs attention in the next 3.5-5 years
4.5-5.0+
Needs attention after 5 years

Health
Check
Rating
3.5
4.3

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M. (2015, November 7). The cloud wars explained: Why nobody can catch
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Jones Case Study. Amazon Web Services.

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Team Contributions
Intro Emily Montana
Mary Kay
ITIL
SWOT Analysis
Project Josh Garcia
Kind of Project
IaaS
Technology Migration
Amazon Web Service - Google
Processes are different
Use Case
Capability Catherine Duong
Old Capability Explain (Potential of IT before)
New Capability Explain (Potential of IT after)
Possible Capability Explain
Benefits, Costs, Risks Senanga Perera
Make a chart
Explain Benefits, (tangible and intangible) Costs, Risks
Measurements Kevin Nhan
Three metrics
ROI
Savings
Useful Life Time
Maintenance level of effort
Maintenance time frame
Conclusion Chris Nguyen
How impact framework
ITIL now
IT-CMF implement future