Cloud Disruption: The Immediate Need for New Integration Strategies

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Cloud Disruption

The Immediate Need for New Integration Strategies


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Presenters

Holger MuellerPrincipal Analyst & VP

Constellation Research

John JosephVP, Marketing

Scribe Software

http://www.hmcwritenow.com/

http://www.hmcwritenow.com/

© 2010 - 2014 Constellation Research, Inc. All rights reserved.

TM

Cloud DisruptionThe immediate Need for New Integration StrategiesJune 18th 2015Holger Mueller (@holgermu)


Where will your business be in 2020?

5


52% of the Fortune 500 firms since 2000 are gone

6


1957 2003 2013

75

25

10Average age of a company joining the S&P 500

7


State of boardroom priorities in 2015Investment in digital presence

Consistent delivery of customer experience (CX)

Digital transformation of the business

Rapid response to non-traditional competitors

Creation of insights driven business models


State of boardroom priorities in 2015Prioritized development of high performance culture

Readiness for inorganic growth

Mass automation of work and thought

Efficiency in post merger integration

Cost reduction of regulatory and security compliance


Digital creates winner takes financialsOverall Market Share Percentage of Profits


Do you remember…


… for example …

It used to be simple…


… which industries are next?

When is your turn?


The business model shift is here• Product companies give

away product for service revenues.

• Service based businesses sell experiences at varying price points and service levels.

• Experience based businesses selling business models

• Business model companies sell peace of mind.

14


4 Phases of Transformation

1950 2014 20502020

Legacy Phase

Oppor-tunity

Catch up

Inflection

15


So what happened and is happening?

Technology Capability > Business Practice

…

16




…l …

Next Gen Business Processes are created

17




…

l

……

IT needs to accelerate

Next Gen Business Processes are created

18

© 2010 - 2014 Constellation Research, Inc. All rights reserved. 19


In the beginning there was…

Who typed a letter in business 60 years ago?


Business Practice Innovation is… hard!

21


It used to be simple…

22


Or was it hard?

23


The ever falling cost of 1 GigaByte

Opportunity cost of this webinar pays for 10 years of all your work & personal data.

24


Cloud Economics

From James Hamilton presentation at Amazon AWS re:Invent 2014

25

© 2010 - 2014 Constellation Research, Inc. All rights reserved. 26


So what is the ‘Cloud’?

27


Is Cloud real?

28


It’s almost impossible to build new software in 2015 without using the cloud

29


And it’s hard to get (new) Enterprise Software for on Premise

30


Some Cloud Stats

3B Internet Users15B Devices380% Storage Growth530% IP Traffic Growth

Cloud Drivers

JapanAustraliaUSA GermanySingapore

Cloud Readiness

Increased Efficiency Improved Employee MobilityIncreased Ability to Innovate

Cloud Benefits

• Test, Dev & Pre Production

• Business critical Applications

• New Production Workloads

Cloud Usage

• Conferencing & Collaboration

• Office / Productivity Suites

• Storage• Messaging• Business Process Apps

Cloud Apps

• Price• Security• Technology Unknown• Not well understood• Incompatible Apps

Cloud Inhibitors

Sources – Intel, BSA, iWeb (3), Statista

31


… enterprise software has been constrained

Enterprise Software Usershave been constrained


Fundamental Shift in ComputingConstraint Based

ComputingDemand Based

Computing


Example: Data to BigData


Example: Analytics

Data Analytic Model

Predicted Future


Single Model to n Models

Data Analytic Model

Predicted Future


Hard to spend more on running all available analytical models overnight than on a burger

37



What triggers integration needs?


TechnologyTrigger

• Move to Cloud• Mobile• Social Integration• ….

Business Trigger

• New Business Model• 21st Century Best

Practices• More user types

Statutory Trigger

• Legal Changes• Compliance Changes• Data Residency• …






What does it mean for IT?

45


So will it be Data Center to …

So will it be Data Center to Fitness Center?

46


IT Department 2025 – ‘All in’ Cloud

Apps IT

DB Administrators

Network Engineers

Storage Specialists

Virtualization Specialists

Hardware Experts

Strategic IT

DB Architects

Sourcing Specialist

Data Retention Expert

RIP

RIP

47


New IT Roles emergeMobile Pro

Open Source Expert

Cloud Champions

Business Process Guru

Help Desk Maven

“No enterprise function will be transformed more and

need to re-invent itself more in the next age of computing

than the IT department.”

Holger MuellerConstellation Research

48


IT has a key role!

49


We are in the 2nd Mainframe Era

50


But the reality…

51


NextGen Apps

52


SaaS

Hybr

id C

loud

Mul

ti Cl

oud

Ope

nSta

ck

BigD

ata

PaaS

Pric

e Pr

essu

re

Acqu

isitio

ns

Part

ners

hips

9 Cloud Trends to be aware of


7 Steps to your Cloud Strategy

Negotiate favorable

contractual terms and conditions

7

Select which Open-Stack

vendor fits best

6

Can you afford

the GAMO

cloud vendors

?

5

Evaluate your

custom code

develop-ment

strategy

4

Assess Road-

map Impact

on CAPEX &

OPEX and

adjust

3

Design Cloud Road-

map for 3 years

to come

2

Assess Cloud Foot-print

1

54


5 Strategies To Be Ready for 21st century Integration

55


Technical Debt Reduction is mandatory

56


Avoid spaghetti Integration

57


Instead Aim for This!

58


Win the Integration Fight

59


Look for vendors

60


Thank you

Holger Mueller+1 650 395 [email protected]: @holgermuhttp://enswmu.blogspot.comwww.ConstellationR.com

61


Managing the Cloud Disruption: Integration Lifecycle Management

John JosephVP, Marketing

[email protected]@jjoseph100

mailto:[email protected]


The “Connected Software Age” – Cloud Adoption has Led to a Connected, Best-of-Breed World

Customers increasingly expect• Integration is available – a “must-have”• “Out of the box”, low burden integrations• Cloud and on premise integration


Integration Providers Face Different Challenges, But Share Common Concerns

Common concerns: agility, total cost of ownership, repeatability

IT Departments• Many apps• All app categories• Many departments

SI/VARs• Several apps• Fewer app categories• Many customers

SaaS Providers• One app• Fewer app categories• Many customers


The Most Common Integration Approach Puts Time to Market & Satisfaction at Risk

• Slow approach requires learning API and coding• Not a core competence• High skills required• Risks higher customer dissatisfaction from higher

cost, slower deliveryCustom Integration via API


Custom Coding Can’t Keep Pace When You Need Lots of Connectivity

First connection is… • Difficult• Disruptive• Time consuming• Costly

Now do it 10 more times! • All consuming• Varied quality in results• Not “core”• Hard to maintain

And support and maintain them over time “Impossible”


SaaS and Connectivity Demands Are Shifting the SI-Customer Relationship Toward Retained Services

Data conversionIntegration services to legacy appsRun state management

Software customization


Custom-Coded Integrations Require Cost, Time, and Skill Investments that are Underestimated by Most

Of the TCO for deployed software comes from maintenance costs

Dev Costs

Maintenance & Operational Costs

Initial Infrastructure5-20%

Deployment Personnel5-15%

Ongoing Infrastructure5-15%

Ongoing Personnel50-85%


If You Don’t Consider the Entire Integration Lifecycle, You Don’t have an Integration Strategy

• Environment support (cloud and hybrid)

• Staging and production tools• Packaging options

(managed, unmanaged)

Commercial

Design

DevelopDeploy

Run

• Rapid prototyping capabilities

• Balance of control vs. speed

• Ability to customize and extend

• Documentation for maintainability

• Branding• Pricing and licensing models• Provisioning process• ROI

• Performance and scalability• Reliability and security• Instrumentation and

management API’s • Management tools

• Resources and documentation

• Expert advice, training and support

• Pre-built solutions• Development fees


Scribe Integration

Platform

Integration Platforms Offer Easier Access to Dozens of APIs

Pre-built Connectors

Pre-built Connectors

Drag and Drop

Mappings

Cloud or On-Premise Platform


Commercial

Design

DevelopDeploy

Run

Scribe Offers a Low-Risk, Agile Approach for the Entire Integration Lifecycle

• Cloud and hybrid support• SDLC tools (build, test,

stage, production)• Managed, unmanaged

packaging options

• Private labeling• Wholesale licensing• Self-service provisioning• Pay as you benefit

• Expert architectural help• Low-no dev time fees• Extensive resources,

including samples, and support

• Clicks, not coding• Self-documenting interface• Drag and drop mapping• Collaborative tools • A full set of debugging tools

• Azure performance, scalability• Unified integration

management console• Instrumentation and

management APIs• Agile, multi-tenant

provisioning


Integration Lifecycle Management is about Processes as Much as Technology

Project Plan

• Key Participants• Object Model• Systems of

Record• Project Goals

and Details (in plan language)

Design

Run

Monitor/Alert

Deploy

Change Management

Phased Approach

In-line Debugger

Develop

DocumentCollaborate Reuse


Webinar/Virtual Training SaaS Provider Gains Fast Connectivity, Agile Deployments

• Lifecycle benefits◦ Connect to 10 CRM and MA systems ◦ 2 man months vs. 60 man months◦ Customized integrations within days◦ Staffed by business analysts

• Differentiated service delivery


Marketing Services Firm Automates Sales and Deployment Through Self-service Portal

• Lifecycle benefits◦ Integrations configured and running within a couple of hours ◦ No interaction from LyntonWeb required◦ More profitable deployments◦ Increases sales opportunities to all size organizations


Hospitality Leader Doesn’t Skip a Beat When Staff Changes; Reduces Support Costs

‘All of the data is cataloged and standardized in the [Scribe] system, so if an employee leaves, their replacement can come in and understand exactly how the data mapping works and be effective at supporting it,’

Walid SalemVP of IT, SilverBirch Hotels & Resorts


Integration Lifecycle Management Improves Project Success

• Lower ownership costs• Faster response to issues • Staffing flexibility• Business agility• Higher profitability


Scribe – Your Trusted Integration Partner

• Agile data integration software (since 1995): iPaaS, on-premise• 14,000+ customers and partners• Power of choice: Cloud, on-premise, hybrid product portfolio• Comprehensive integration lifecycle management• “Solution focused” integration – insights across the customer lifecycle

SIs(partial list)

End Users(partial list)

ISVs and Tech Partners(partial List)


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We have answers!


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