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Cloud the new shadow IT - Ready or not, preparing for mass adoption driven by business innovation and consumerization Daniel Downing, Tieto Nordic Digital Business Summit 22 September 2016

Cloud is the new shadow IT: ready or not, preparing for mass adoption driven by business innovation and consumerization

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Page 1: Cloud is the new shadow IT: ready or not, preparing for mass adoption driven by business innovation and consumerization

Cloud the new shadow IT - Ready or not, preparing for mass adoption driven by business innovation and consumerization

Daniel Downing, TietoNordic Digital Business Summit22 September 2016

Page 2: Cloud is the new shadow IT: ready or not, preparing for mass adoption driven by business innovation and consumerization

© Tieto Corporation

Nordic leaders trust Tieto Cloud Solutions

2

More than 150 cloud

customers in the Nordics

Infra modernization and cloud Operating services and cloud

Tieto cloud server (private cloud) IT environment / Private cloud solutions

IT capacity services / scalable cloud services

IT support / Tieto Cloud server

Outsourcing extension Tieto Productivity Cloud Modernization and efficiency with new capacity and cloud solutions

Full lifecycle IT services including cloud services

Improved flexibility through cloud capacity / productivity services

ICT infrastructure / cloud capacity services

Latest cloud and hybrid solutions

Cloud and workspace services

Tieto Cloud Server

Flexible cloud capacity, iTap

Tieto Cloud server ( Mill-in-a-box)

Tieto Cloud Server and Tieto Productivity Cloud

Global IT platform incl. cloud New cloud technology and cloud architecture

IT capacity and cloud services Tieto Cloud Server

Data center and capacity services

Page 3: Cloud is the new shadow IT: ready or not, preparing for mass adoption driven by business innovation and consumerization

What I will talk about…

• The situation today

• Crossing the chasm

• The risks

• How is Tieto helping?

• Call to action

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The situation today: 4 forces

Duality

Technology

Consumerization

Compliance

.

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Duality

Technology

Consumerization

Compliance

.

The situation today: 4 forces

Demand for reliability: systems of record,eg: CRM, ERP

Demand for innovation: systems of engagement

WORLD OF DUALITY

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© Tieto Corporation

Systems of engagement – driving revenue from social media with Microsoft cloud

Courtesy of Microsoft

Page 7: Cloud is the new shadow IT: ready or not, preparing for mass adoption driven by business innovation and consumerization

Duality

Technology

Consumerization

Compliance

.

The situation today: 4 forces

Open Ecosystems

Cloud Generation2Github Repos

Serv

erle

ss

Docker Containers

Dev

ops

Augmented Reality

AI

Page 8: Cloud is the new shadow IT: ready or not, preparing for mass adoption driven by business innovation and consumerization

Duality

Technology

Consumerization

Compliance

.

The situation today: 4 forces

Page 9: Cloud is the new shadow IT: ready or not, preparing for mass adoption driven by business innovation and consumerization

Duality

Technology

Consumerization

Compliance

.

The situation today: 4 forces

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© Tieto Corporation10

Crossing the chasm: A service integrator view

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© Tieto Corporation11

Crossing the chasm:Recent Industry Observations

8.0%

12.5%

20.3%

59.3%

Not interestedNo interest in, or plans for, cloud computing at this time.

EvaluatingEducating themselves without firm plans to implement.

DeployingFirm plans to adopt cloud within 12 months or are using the public or private cloud for one or two small applications/workloads.

EmbracingCurrently using public or private cloud for more than one or two small applications/workloads.

IDC CloudView: Overall Cloud Adoption

Source: IDC CloudView 2016 survey, 2016, n=11083

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Crossing the chasm:Recent Industry Observations

• Shift from build to consume• Enterprise adoption of IaaS from

public cloud will jump from 10% to 51%

• Choices: Amazon, Google and Microsoft• 20% x86 servers in Cloud within 2-3 years• 48% enterprises to 80% in 2018 with at least

1 workload in public cloud

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Crossing the chasm: what do both sides look like? (from Tieto Cloud Maturity Survey 2015)

Cloud service models Cloud deployment models

10% 90%n=277

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Crossing the chasm:Hybrid Cloud is the new black

2015 2016

14%

23%

Share of organizations that useSaaS, PaaS and IaaS:

2015 2016

1.1

1.5

Average number of deployment models used:

• Diversification of services has increased (organizations using both SaaS, PaaS, and IaaS). • Average number of employed deployment models increasing, from 1.1 to 1.5 (~30%).

Source: Tieto Cloud Maturity Index study 2016, n=200

Cloud service models Cloud deployment models

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Crossing the chasm: the gap is widening

15% (18%)

Immature• There is no cloud strategy at all.• Low competence and slim capabilities in dealing with any cloud services• No to very little use of cloud services

Basic• Cloud usage is on single services not integrated with the other IT services and functions provided• Driver for investments is commonly cost reduction.• The services tend to be simple and standalone

• There is a cloud strategy and most of the procured cloud services are in line with it.• Most likely more than one service and delivery model implemented• On average multiple SaaS services are being used.

• Cloud services are clearly defined and an analysis of existing IT functions in a cloud setting has been performed.

• Procurement is fully in line with strategy.• Key drivers are development, change and innovation.

Proficient

Mature

49% (51%)

24% (21%)

12% (10%)

• Average cloud maturity is increasing

• Gap between the least mature and the most mature organizations is increasing (by 5% from 2015 to 2016)

Source: Tieto Cloud Maturity Index study 2016, n=200

Stages of Cloud maturity

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Why make the jump?Benefits we have seen…Cloud mature organizations have on average…

34% lower cost of ongoing IT operations

2xtwice the proportion of its IT budget available for innovation

30% higher ability to support business development

30% higher flexibility for changing business requirements

8% higher ability to proactively contribute to business optimization

17% higher capability to transform how IT is produced/delivered

Cost Innovation

Agility Agility Transformation

Optimization

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The risk

Shadow IT (many risks)

Lose legacy investments

Lose market share and revenue

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How is Tieto helping?

• Portfolio assessments

• Simplified cloud

• Security Wall

• Building ecosystems

• Digitalization strategy

• (Internal transformation)

Tieto Security Wall

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We aim to be our customers’ first choice for business renewal

New data-drivenbusinesses

Vertical industry solutions

Technology servicesand modernization

Services to accelerate customer value

Build solutions and capabilities to accelerate our customers’ business performance and renewal.

Nordic leadership and international expansion

Further accelerate our strong market position in the Nordics and expand industry solutions internationally.

Openness and co-innovation

Co-innovate with customers and partners, access open talent networks and drive continuous skill and capability development.

Business choices building on our strengths

Tieto strategy 2016-2020

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© Tieto Corporation

Call to action

Business

• Involve IT, give them a chance to contribute

• Don’t throw away the past – lots of good data

• Classify your information & assess where it can go

IT

• Scan cloud services currently being used

• Create options for business

• Be open and collaborate

Any questions? [email protected]

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Tieto Cloud Maturity Research

• Download the study:http://pages.tieto.com/LP-GL-XX-CloudMaturityIndex2016_LP.DownloadPage.html

Any questions? [email protected]

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Our cloud strategy aligned with MicrosoftPlatform engineered with commonalities for flexibility, consistency

Microsoft AzureOffice 365

Tieto Productivity Cloud

Hybrid

PUBLIC

PRIVATE

SharePoint Server

Exchange Server

Lync Server Microsoft SQL Server

Productivity &Collaboration

BusinessSolutions

Infrastructure& Platform

Cloud CommonTechnologies

CRITICALLY IMPORTANT: Microsoft System Center Active Directory

Developmentcode once, deploy VMs anywhere

Managementunified view across premises

Identitysingle sign-on

Virtualizationbuilt in, not an add-on

Data platformanalytics and storage spanning clouds