January 13 2011 2010 Ciscoandorits itsaffiliates All Allrightsreserved

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January 13, 2011 ©© 2010 Ciscoand/orits itsaffiliates. All Allrightsreserved. Cisco Confidential 1

January 13, 2011 ©© 2010 Ciscoand/orits itsaffiliates. All Allrightsreserved. Cisco Confidential 1

Introductions Purpose and Objective Multi-Tenancy Overview Multi-Tenant Service Considerations Conclusion Questions © 2010 Cisco

Introductions Purpose and Objective Multi-Tenancy Overview Multi-Tenant Service Considerations Conclusion Questions © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 2

Robert Roffey and Sid Kapila © 2010 Cisco and/or its affiliates. All rights reserved.

Robert Roffey and Sid Kapila © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 3

The value path for the Service Oriented Enterprise License cost savings Internal cost reduction

The value path for the Service Oriented Enterprise License cost savings Internal cost reduction by shared resources Mobility Process based Services Oriented Infrastructure • Linux • Platform Rationalisation Internal value created through process redesign Externally created value through more efficient market interaction • Storage Area Networks • Server Virtualisation • Grid Computing Services Oriented Architecture • • • Security Web Services Business Intelligence Management tools Development Tools Service Orientated Architecture Services Oriented b. Enterprise • Mobility • Event Driven • Real Innovation To drive incremental value, organizations are adopting Multi–Tenancy as part of Service Orientation © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 4

Purpose and Objectives © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential

Purpose and Objectives © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 5

Develop lessons learned from the experience of building application-oriented multi-tenant services and apply those

Develop lessons learned from the experience of building application-oriented multi-tenant services and apply those learning's to enhance the Service Management playbook to improve the service creation process going forward Project Approach Objectives • Use the CSG IT Credit Card External Research payment processing service as a case study to assess what worked and what didn’t • Define leading practices and apply lessons learned from the case study to enhance the Service Management playbook for building multi-tenant services Stakeholder Interviews Lessons Learned & Enhancing the Playbook Capgemini Points of View Cisco Svc Mgmt Playbook © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 6

Multi-Tenancy © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 7

Multi-Tenancy © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 7

A Multi-Tenant (MT) IT service delivers common services (e. g. Billing, HR, Decision Support)

A Multi-Tenant (MT) IT service delivers common services (e. g. Billing, HR, Decision Support) to multiple customers, sharing the same application with a common underlying infrastructure Multi-Tenancy reflects greater reuse of services Accelerates enablement of new market adjacencies adjace • Services are configured instead of new services being developed Exploits the foundation of cloud-based services • Single tenant services cannot provide the full benefit of cloud Amplifies improvement in Total Cost of Ownership • Service Total Cost of Ownership is more effectively distributed distribut © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 8

In deciding whether a service can support multi-tenancy, a set of key attributes should

In deciding whether a service can support multi-tenancy, a set of key attributes should be considered during the Strategize stage of the Service Management Lifecycle Similar/ Overlap Functionality Multiple Customers Customization via Configuration Shared Infrastructure A major driver to invest in multi-tenancy is to replicate certain capabilities cheaply as organizations enter into new business models or optimize current operations © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 9

Multi-Tenant Service Consideration © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential

Multi-Tenant Service Consideration © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 10

Multi-Tenancy Requires Additional Considerations Throughout an end-to-end service lifecycle, Multi-Tenancy calls for MT specific

Multi-Tenancy Requires Additional Considerations Throughout an end-to-end service lifecycle, Multi-Tenancy calls for MT specific considerations: Lifecycle Phases Domains Strategize Plan Implement Operate Optimize Solution Anticipation of future needs and balancing of standardization with flexibility for each tenant Financial Commitment to higher upfront investment, longer cost recovery, and internal billing strategy Technology Design of a flexible and scalable architecture built on the concept of configuration and integration vs. standalone stability Governance Structure and processes to align multiple stakeholders with varied needs People Extensive domain expertise, cross-functional resource assignment, and augment service delivery organization Processes Enhanced operating processes and management of adoption across tenants These considerations have a series of implications that should be contemplated in the design of multi-tenant services © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 11

Solution considerations for Multi-Tenancy require anticipation of future needs and balancing standardization with flexibility

Solution considerations for Multi-Tenancy require anticipation of future needs and balancing standardization with flexibility for each tenant Consideration Solution for more than one customer (current and future) Challenge Not all customers are going to be known upfront Mitigation Define, prioritize, and phase requirements with stakeholders who can speak for the business process current and future needs Build for high scalability Trade-off between standard functionality and customization Business needs are dynamic and will continue to change Deliver standardized multitenant services for commoditized, non-critical capabilities while providing flexibility via ability to configure application settings Security for tenant’s data Data security remains a key concern for Multi. Tenant buyers Adopt the right data security procedures © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 12

Demand Profile Aggregate Types of Business Workloads Capacity Planning Continual Demand Large Demand Peak

Demand Profile Aggregate Types of Business Workloads Capacity Planning Continual Demand Large Demand Peak Small Peaks Year Quarter Month Rate of Change Large/ Disruptive Jump in Demand Week Individual Demands Day Assess Workload Type Time scale Demands Understand the types of Demand profiles that the workload needs over time “Project” One off Peaks In determining Supply, determine where the services lies among the realm of ‘Consistent Availability’ and Rapid Availability’ © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 13

Financial considerations for Multi-Tenancy require higher upfront investment, longer cost recovery, and internal billing

Financial considerations for Multi-Tenancy require higher upfront investment, longer cost recovery, and internal billing strategy Consideration Challenge Mitigation Not recovering investments costs Analyze the total cost of ownership as well as model the revenue stream(s) to dictate the initial funding requirements and the future chargeback model Elongated break even with higher ROI potential Initial funding to cover development Secure initial and ongoing funding by aligning stakeholders behind the solution; redefine funding models to allow for centralized funding of MT initiatives Varied charge-back models Transparent allocation method (for negotiation among multiple stakeholders) based on some level of activity based costing Conduct initial and ongoing market benchmarking to measure appropriateness of investment and ongoing process performance (KPIs) Anticipating future customers will lead to higher upfront development costs thus an increased initial investment requirement © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 14

TRADITIONAL IT SOLUTION Direct Cost Measured Resource Usage Subscription/ Pay per Use Blanket Allocation

TRADITIONAL IT SOLUTION Direct Cost Measured Resource Usage Subscription/ Pay per Use Blanket Allocation Support Chargeback Adhoc Chargeback (Showback) IT Domain Cost Allocation Tiered Flat Rate Negotiated Flat Rate Bespoke IT Pricing IT Service Catalog Pricing Market-based Pricing Incentive Gainshare Usage Business Outcome Risk/Reward Crowd Source Shared IP Full cost recovery from the 1 st tenant is not plausible MULTI-TENANT IT SOLUTION Key Factors Simplicity Fairness Predictability Controllability Diligent Demand / Supply Capacity Forecasting Adapted from Gartner © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 15

Technology considerations for Multi-Tenancy requires the design of a flexible and scalable architecture built

Technology considerations for Multi-Tenancy requires the design of a flexible and scalable architecture built on the concept of configuration & integration vs. standalone stability Consideration Challenge Mitigation Difficult to manage fluctuations in usage/volumes Determine application requirements to dynamically scale infrastructure (leveraging cloud, virtualization, etc. ) Architecture supports agility and adaptability Limited visibility into future integration requirements Create code set to be data driven (vs. process driven) to isolate configuration changes at the tenant level Impact of upgrades, enhancements and configuration on tenants (with limited downtime) Difficult to execute changes while limiting coordination among all tenants Develop modularized components for implementations and build integration accelerators to support multiple platforms Solution built as highly scalable (volume changes) © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 16

Governance considerations for Multi-Tenancy requires structure and processes to align multiple stakeholders with varied

Governance considerations for Multi-Tenancy requires structure and processes to align multiple stakeholders with varied needs Consideration Governance for multiple internal and external stakeholders (e. g. GBPs & ASP) Requirements prioritization among multiple customer profiles © 2010 Cisco and/or its affiliates. All rights reserved. Challenge Service ownership and requirements prioritization is more difficult to do in a MT setting Increased demand for transparency of operations and costs Attrition from tenants being shutout of their requirements or standardized release management strategy Mitigation Define, communicate and operationalize service governance Align stakeholders around common solution (expectations management) Develop metrics and service agreements that realistically drive accountability Determine requirements prioritization method, sourcing requirements and associated governance model Cisco Confidential 17

People considerations for Multi-Tenancy requires extensive domain expertise, cross-functional resource assignment, and augmenting service

People considerations for Multi-Tenancy requires extensive domain expertise, cross-functional resource assignment, and augmenting service delivery organization Consideration Challenge Mitigation Comprehensive solution targeting multiple customer profiles requires breadth and depth of knowledge Acquisition of resources with a deep domain knowledge and a breath of functional expertise that could reside outside of organization Develop broad cross functional support and executive sponsorship to acquire the necessary resources Greater cross-functional coordination Additional coordination could impact the speed of solution development Plan for additional lead time to account for involvement of multiple functional groups Service delivery organization to support the solution end-to -end (not silo’d) Service delivery organization for MT solution could require different organizational set up to effectively support the solution © 2010 Cisco and/or its affiliates. All rights reserved. Evaluate various service delivery organizational structures for the most effective delivery (Shared Services or a COE) Requires that specific roles and responsibilities be defined at the ‘Service’ level Cisco Confidential 18

Processes considerations for Multi-Tenancy requires enhancing operating processes and managing adoption across tenants Consideration

Processes considerations for Multi-Tenancy requires enhancing operating processes and managing adoption across tenants Consideration Refinement of existing IT processes (client engagement, service delivery, and service support) Challenge Change management and process adoption to support shift to MT service orientation Mitigation Involve functional SME’s early in the process to allow time for review, issue resolution and process change management Plan for effort for organization and process adoption activities Adoption of standard set of processes delivered by solution for each tenant while accounting for process variation © 2010 Cisco and/or its affiliates. All rights reserved. Customer acceptance of standard processes Compliance requirements for multiple client profiles Design end-to-end process flows for each customer profile relying on configuration to drive variation Account for regulatory compliance (GEOs, customer types) Cisco Confidential 19

Conclusion/Questions © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 20

Conclusion/Questions © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 20

In rolling out multi-tenancy, a combination of approaches must be considered in order to

In rolling out multi-tenancy, a combination of approaches must be considered in order to properly balance cost vs. benefit as well as likelihood of corporate adoption Consolidate overlapping services • The “best” service is chosen and enhanced to integrate with other silos Enhance existing services • Current services are re-evaluated for enhancements towards multi-tenancy Build new services • New services are architected to drive Multitenancy acceptance © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 21

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 22

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 22

Thank you. © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 23

Thank you. © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 23