case analysis: moving terra firma to the cloud
TRANSCRIPT
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IT Recommendations for
Terra Firma Medical Systems
Efesa Origbo | Hariprasad Tilakan | Sharon Dsouza
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October 2010CMIS Case Competition
“Taking Terra Firma to the Cloud”
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Agenda
Background Background
Problem Statement
Analysis Trends Analysis
IT at Terra Firma
Challenges/Opportunities
Recommendations High-Level Roadmap
Weighted Score Model
Systems Architecture
Benefits
Implementation Assumptions
Implementation Methodology
Services Delivery Model
Resources
Financial Analysis
Project Timeline
Risk/Mitigation Plan
Conclusion2
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Background: Terra Firma
Leading supplier for medical imaging devices
Provider of technical support and integration services for
medical imaging systems
Develops software for visualization, analysis and storage of
medical images
More than NZ$ 2.5 billion of annual revenue in 2009
Network crash in April 2010
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Problem Statement
“ How can we use technology to enable Terra Firma’s business
processes, and position it to effectively identify and exploit
emerging opportunities while ensuring business continuity ”
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TREND ANALYSIS
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External factors
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GE, Siemens are subject to medical regulations in the future
Regulation backlash may result in lower margins
Terra Firma
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Emerging opportunities
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Terra introduced a line of filmless dental and veterinary X-ray systems
Growth opportunity for Terra Firma
Terra Firma
Filmless Dental
Veterinary X-ray systems
Rapid Growth
0
50000000
10000000
15000000
20000000
25000000
30000000
35000000
40000000
2007 2008 2009
Revenue
Revenue
Independent Distributors
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IT Investments at Terra Firma
80% IT budget into maintenance
20% IT budget into innovation
More investment into IT innovation
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Funding Innovation
20%
New Funds for innovation
40%
Infrastructure Maintenance
40%
Optimal BreakdownCurrent Breakdown
Funding Innovation
20%
Infrastructure Maintenance
80%
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IT Infrastructure at Terra Firma
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IT issues
Network Failure
Lack of effective technology
management policies
Additional problems
Missing log files
Corrupted database tables
Inconsistent data
10%
90%
IT Infrastructure
Standardized
Disparate
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Opportunity/Approach
Aggressively use technology for vertical integration
More investment into innovation
Consolidate and standardize IT infrastructure
Enforce IT governance policies
Challenges/Opportunities
Medical regulations may lead to lower margins
Underinvestment into IT
Disparate systems
Lack of technology management policies
Approach
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RECOMMENDATIONS
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High Level Roadmap
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Consolidate Virtualize Automate Optimize
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Solution Framework
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SOA Web Services
Public CloudPrivate Cloud
Ap
plic
atio
ns
Infr
astr
uct
ure
Internal External
Supports communications between services
Defines how programs interact to perform a unit of work
Self contained applications
Perform functions, from simple requests to complicated business processes
Standard cloud computing model
Service provider makes resources available
Proprietary computing architecture
Provides hosted services to a limited number of people
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What to put where?
Mi
gr
at
io
nC
ri
te
ri
a
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Criticality
Business Impact Business Outlook
Governance
Security Service Management Risk Exposure Compliance
Elasticity
Workload Storage Utilization
Technology
Architecture Infrastructure Quality of Service
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Migration Framework
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SOA Web Services
Public CloudPrivate Cloud
Ap
plic
atio
ns
Infr
astr
uct
ure
Internal External
PC Support
Email/Calendar
Videoconferencing Apps
Collaboration Apps
ERP
SCM HCM CRM
BI
HardwareEngineering
SoftwareEngineering
Manufacturing
Compliance Apps
Compliance
BI Apps
Collaboration
Email/Calendar
Apps
Manufacturing Apps
CRM Apps
SCM Apps
HCM Apps
ERP Apps
HardwareEngineering Apps
SoftwareEngineering Apps
Videoconferencing
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Service Runtime Engine
Services Registry and Repository
Centralized Policy and Services Management
Enterprise Service Bus
S e r v i c e V i r t u a l i z a t i o n L a y e r
CRM
JDE
Beowulf
Microsoft
Services Services Services Services
Streaming
Content
Private
Manager
Software
Engineering
Business
Analyst
Vendor
Hardware
Engineering
Public
Hybrid
Portals and Rich Internet Applications
Systems Architecture
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System Characteristics/Benefits
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Service-centric environment
Standardized, shared services
Scalable and elastic
Automated
Self service, pay-per-use
Benefits
Aligns technology with key business process
Improved cost management
Rapid response to business changes
Reduced errors and outages
Transparency
Characteristics
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IMPLEMENTATION
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Assumptions
Organic growth of IT infrastructure at Terra Firma has led to:
Excess processing and storage capacity
Duplicate of applications across different locations
10% of applications at Terra Firma are standards compliant and
can be easily exposed as services
IT Steering Committee will henceforth
enforce strict adherence to ITIL guidelines
for application development
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Implementation
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Consolidation
Virtualization
Public Cloud Migration
Private CloudMigration
Business ProcessModeling
Analyze applications and align with key Terra Firma processes Determine technology needs from a service perspective
Streamline infrastructure Eliminate excess capacity
Implement Service Virtualization Layer Develop applications as services
Move relevant applications to Public Cloud
Move relevant applications to Private Cloud
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Services Delivery Process
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Resources
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Project Timeline
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6 Years
Public Cloud
Virtualization
Time
Business Process Modeling
Consolidation
Private Cloud
6 Months
1.5 Years
4 Years
3 years
6 Months
Short Term Medium Term Long Term
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Change Management
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StakeholderAnalysis
Anticipate and manage key stakeholder responses
Involvement Gain buy-in from all levels
Structure Prevent reversal to status quo
Communication Consistently share the vision across all levels
Training Provide employees with tools needed for success
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Financial Analysis
Implementation Cost - $15,000,000.00 [Appendix D]
Recurring Costs per year - $ 1,000,000.00 [Appendix C]
Savings per year - $5,004,000.00 [Appendix C]
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-
1,000,000.00
2,000,000.00
3,000,000.00
4,000,000.00
5,000,000.00
6,000,000.00
7,000,000.00
8,000,000.00
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8
Savings
Net Cumulative Investment
Payback Period
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Risks/Mitigation
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Application/Infrastructure Security
Disruption of business continuity
Readiness
Geopolitical issues
Mitigation
Implement security policies and evaluate SLAs
Adopt a phased implementation approach
Perform detailedassessments
Implement compliance standards
Risks
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Service Level Agreement - Key Criteria
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Server Uptime/ Availability
Data Backup
Network Performance: Internal and External
Cloud Balancing & Cloud Bursting
Cloud Storage
Server Reboot
Support Response Time
Physical Security
24 x 365 Engineering Support
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Conclusion
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Consolidate
Terra Firma IT Roadmap
Virtualize
Automate
Optimized
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Thank you!
Efesa Origbo | Hariprasad Tilakan | Sharon Dsouza
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APPENDIX
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Appendix (A)
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Application Criticality Technology Governance Elasticity Total Cloud
Score 25 20 30 25 100
PC Support 20 70 40 50 43.5 Hybrid
Email/Calendar 20 90 20 20 33 Public
Video Conferencing 20 80 20 20 32 Public
Collaboration 20 80 50 40 46 Hybrid
ERP 90 80 90 90 88 Private
SCM 90 70 80 80 80.5 Private
HCM 90 80 90 90 88 Private
CRM 50 60 30 20 41 Hybrid
BI 50 60 70 60 60.5 Hybrid
Hardware Engineering 90 90 90 90 90 Private
Software Engineering 80 70 20 30 47.5 Hybrid
Manufacturing 50 60 70 60 60.5 Hybrid
Compliance 90 70 80 80 80.5 Private
Weighted Score Model
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Appendix (B)
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Service Delivery Business Process Diagram
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Appendix (C)
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Appendix (D)
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PAYBACK ANALYSIS
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Appendix (E)
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Appendix (F)
Risk Assessment
Physical Security
Vendor Lock-In
Vendor Viability
Mitigation
Security Audits
Open Source Vendors
Larger/Certified Vendors
Vendor Risks
Data Loss
Data Security
Data Location
Mitigation
Backup and Recovery Plan
VPN’S, SSL, IDS
Compliant with Global/Local Regulations
Data Risks
Licensing
Integration
Mitigation
Clear Billing/Licensing model
Better Integration Testing
Software/Application Risks
Natural Disasters
Resource Overload
MitigationInfrastructure Risks
Mirrored Data Center
Cloud Bursting/Balancing
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Appendix (G)
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Appendix (H)
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Appendix(J)
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Change Management
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Appendix (K)
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Appendix (L)
Access control and physical security
24-hour manned security, including foot patrols and perimeter inspections
Biometric scanning for access
Dedicated concrete-walled Data Center rooms
Computing equipment in access-controlled steel cages
Video surveillance throughout facility and perimeter
Building engineered for local seismic, storm, and flood risks
Tracking of asset removal
Environmental controls
Humidity and temperature control
Redundant (N+1) cooling system
Power
Underground utility power feed
Redundant (N+1) CPS/UPS systems
Redundant power distribution units (PDUs)
Redundant (N+1) diesel generators with on-site diesel fuel storage
Network
Concrete vaults for fiber entry
Redundant internal networks
Network neutral; connects to all major carriers and located near major Internet hubs
High bandwidth capacity
Fire detection and suppression
VESDA (very early smoke detection apparatus)
Dual-alarmed, dual-interlock, multi-zone, pre-action dry pipe water-based fire suppression
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Appendix (M)
Secure transmission and sessions
Connection is via SSL 3.0/TLS 1.0, using global step-up certificates from VeriSign, ensuring that our users have a secure
connection from their browsers to our service
Individual user sessions are identified and re-verified with each transaction, using a unique token created at login
Network protection
Perimeter firewalls and edge routers block unused protocols
Internal firewalls segregate traffic between the application and database tiers and Intrusion detection sensors
A third-party service provider continuously scans the network externally and alerts changes in baseline configuration
Disaster Recovery
Real-time replication to disk at each data center, and near real-time data replication between the production data center and the
disaster recovery center and data are transmitted across encrypted links.
Backups
All data are backed up to tape at each data center, on a rotating schedule of incremental and full backups
Internal and Third-party testing and assessments
Tests all code for security vulnerabilities before release, and regularly scans our network and systems for vulnerabilities.
Third-party assessments are also conducted regularly: Application/ Network vulnerability threat assessments
Security Monitoring
Our Information Security department monitors notification from various sources and alerts from internal systems to identify and
manage threats.
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