Sunday, February 23

Cloud computing will be the technology that’s key to the success of the initiative.

The Canadian national recently declared plans to make one IT department ‘Shared Services’ that may save $100-200m a year through consolidation-driven efficiencies. As highlighted during this truth sheet there’s several ‘low hanging fruit’ for price savings because of a diffusion of the many completely different email systems, networks and data-centres.

Huge price savings are achieved through standardizing on single systems for functions like email, and by reducing the quantity of data-centres from over three hundred to but twenty.

Cloud computing are the technology that’s key to the success of this initiative. It provides the suggests that to scale back data-centres this manner, and Canada is following the lead of the USA wherever this same approach is being tried winning.

Under the leadership of Vivek Kundra the USA launched a ‘Cloud-first’ acquisition policy to guide their own potency drive, beneath the umbrella of President Obama’s overall Campaign to chop Waste. This was careful in an exceedingly ‘25-Point Implementation commit to Reform Federal IT‘ (40-page PDF).

They’re achieving nice progress. As highlighted during this Whitehouse update they’re already closing several data-centres and area unit heading in the right direction to avoid wasting $ three BILLION of payer monies. This recent survey by NetApp according yankee CIO’s have already reduced knowledge center counts by thirty first and saved two hundredth of their IT budgets supported consolidation to date.

5-Point Cloud Consolidation set up
Cloud Computing is that the key mechanic for a shared service initiative as a result of in straightforward terms it’s virtually a technology for sanctioning shared services – It provides the suggests that for several completely different organizations to share an equivalent infrastructure, for functions of IT and value efficiencies.

CIO’s will leverage Cloud computing to quickly drive price savings in five key impact areas:

Infrastructure consolidation – because the Whitehouse news highlights the principle challenge is that these huge numbers of data-centres generally solely operate at hardware utilization levels as low as twenty fifth, however they still consume all the associated real-estate and power prices. this suggests that the maximum amount as seventy fifth of those prices is so wasteful defrayal, and may be eliminated by migrating the applications to Cloud computing that manages utilization far more with efficiency. By doing such a large amount of of those data-centres will then be closed.
Application maintenance prices – Migrating older applications from their coal-fired hardware on to new Cloud platforms is thought as ‘Legacy Modernization’, and it reduces prices in some ways. additionally to the on top of physical consolidation it also can scale back the workers prices related to maintaining the applications in these older environments, one among the most important prices. Migrating several applications into one Cloud setting reduces the support burden for all of them.
Shared Services design – These new approaches to coming up with however applications add these new environments offers additional IT efficiencies. so the ‘Community Cloud’ model is essential as a result of it’s virtually a ‘Shared Services architecture’, which means that instead of having several agencies every run a seperate and completely different instance of their own application for an equivalent purpose, they will all instead utilize an equivalent code base. This reduces code prices even additional.
SaaS contract consolidation – This approach offers identical, terribly straightforward and extremely powerful industrial model. the govt. of Canada can realize that they need multiple completely different code licence agreements, with vendors like Microsoft, and by consolidating these all into one are able to negociate larger overall discounts and lower the associated administration prices. what is more by moving to Cloud systems they will leverage SaaS contract approaches, that contour prices into a per-seat, utility model.
Integrated Service Delivery – prices conjointly arise because of alternative complexities within the IT setting. each domain like servers, storage, applications and networks every has their own management systems, facilitate table and support groups, and what is more even completely different suppliers every have their own internet portals for managing their services. This multitude of service management systems not solely creates inessential prices however conjointly causes the complexities that hamper fast and economical service.
In short as massive organizations grow over a few years they inevitably accumulate excess and unncessary capacities in an exceedingly sort of areas.

Utilizing Cloud computing and best practices like ITIL to make Shared Service Centres leverages fashionable technology to realize the large-scale consolidation needed to trim these inefficiencies, simplifying and standardizing processes across infrastructure support areas, reducing prices, raising potency and responsiveness, and will increase snap to handle future changes.