COST REDUCTION USING THE PUBLIC CLOUD

JANUARY 2011 WORKSHOPS

Morgan Hill and Amazon Web services are running three workshops in January 2011 to show how the public cloud can be a significant factor in reducing IT service costs. The Morgan Hill Financial Model will be used to demonstrate this. An example will be shown of applying the technology to achieve a planned financial outcome.

COST REDUCTION USING THE PUBLIC CLOUD

JANUARY 2011 WORKSHOPS
Introduction
The purpose of the workshops is to explore how cost can be removed from IT services by using the public cloud. We will do this by: 1. Showing a worked financial model to achieve this 2. Illustrating specific technologies that can do this 3. Sharing relevant experience from amongst the delegates

COST REDUCTION
You can probably take out more than 10% of the cost base just by having the ability to measure ICT services accurately and comparing these with alternatives. The extremely rapid pace of technical evolution and the equally rapid drop in the cost of technology means that if you know your cost base at the right level of detail and know what technical alternatives might fit then significant savings will almost inevitably arise.

We will use the Morgan Hill Financial Model to show how to: Describe the full cost of providing one or more IT services Describe the composition of these services Use the above to compare with relevant peers and identify best practices and or, Overlay alternative ways of providing the services

To start the workshop we will walk through an example using the model that shows how each of the points above have together, enabled a fall in annual IT opex of 11%.

Nigel Duke MD Morgan Hill Workshop Content

The workshops are designed to deliver a practical outcome, ie. delegates should come away with an understanding of how the above example could apply to them. Specifically, delegates will: See how the model can be used to expose real costs See which IT services could take advantage of AWS Understand why, how and what the economic impact could be See an example of AWS being used to reduce cost

In order to achieve this it would be helpful if delegates were prepared to share some information. We will draw from our example financial model the total costs of providing a data centre and some of the services provided from that data centre.

What to Bring to The Workshop To help in relating the example to delegates own situations it would be useful to bring to the workshop some of the following, the level of detail is not vital: General Points of View A view of how important or otherwise cost reduction might be If it is important then, roughly where in the IT estate cost might be removed A view on the use of open source technologies in each delegates organisation A view on the public cloud, specifically infrastructure in the cloud A view on where this technology may apply in your organisation Questions on security in the cloud

Data to Work With The approximate annual cost and basic description of any or all of these: A typical data centre An important application A wide area network

Confidentiality The meeting will be held under the Chatham House Rule. This is a moral assurance that anything divulged is done so without a future ability to identify any sources. The Rule is as follows: "When a meeting, or part thereof, is held under the Chatham House Rule, participants are free to use the information received, but neither the identity nor the affiliation of the speaker(s), nor that of any other participant, may be revealed". Attendance Each workshop is limited to a maximum of eight delegates. Delegates will have the chance, at a later date, to benchmark their IT service costs with others if they wish. Delegates will also be able to look more closely at the technologies discussed and shown, again at a later date. Each workshop will be attended by a Morgan Hill enterprise level technical architect who will be on hand to discuss any specific technical issues. An Amazon Web Services technical specialist will also be available.

Agenda

Item 1. Coffee

Time 9:00

Who

2. Workshop Objectives & Introductions

9:15

MH

3. Removing Cost from IT Services Methods The Financial Model Technical Strategies An Example Result Success Factors Barriers

9:30

MH

4. Delegate Experiences General points of view Specific examples to share based on materials brought along

10:15

All

5. Coffee

11:00

6. Technology Data centre services, an AWS example Costs before change / costs after change AWS: data centre services in the public cloud a scalable example

11:15

MH/AWS

7. Summary 8. Lunch Wrap up noting main points discussed and any follow up actions Benchmarking: offer to participate in benchmarking Technology view: offer to explore the technologies discussed further

12:00

MH

12:15

Address Morgan Hill Consultants Ltd 12 Melcombe Place London NW1 6JJ Tel: +44 (0) 203 174 0393 We are located adjacent to Marylebone Station. Come out of the main station entrance and turn right along the pavement. We are then approximately 50 yards on your right.