© 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 1

Giuliano Di Vitantonio

The Impact of Cloud: Transforming IT from Service Delivery and Support to Service Brokerage

Vice President, Cisco

October 7, 2013

© 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 2

Gartner Nexus of Forces“Cloud computing represents

the glue for all the forces of

the Nexus.

Without cloud computing,

social interactions would have

no place to happen at scale,

mobile access would fail to be

able to connect

to a wide variety of data and

functions, and information

would be still stuck inside

internal systems.”

– Gartner, 2013Gartner report ”The Nexus of Forces: Social, Mobile, Cloud and Information”.

Published April 18th, 2013. Analysts: Chris Howard, Daryl C. Plummer,

Yvonne Genovese, Jeffery Mann, David A. Willis, David Mitchell Smith.

© 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 3

The Evolution of the Internet

Intelligent Connections

ConnectivityDigitize Access to Information

• Email• Web Browser• Search

ImmersiveExperiences

Digitize Interactions (Business & Social)

• Social• Mobility• Cloud• Video

NetworkedEconomy

Digitize Business Process

• E-commerce• Digital Supply

Chain• Collaboration

Bus

ines

s a

nd S

ocie

tal

Impa

ct

Internet ofEverything

Digitize the World

Connecting:• People• Process• Data• Things

© 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 4

CEOs’ and Senior Business Executives’ Top Strategic Business Priorities for 2013

IT

Financial

Products

Geographic Growth

Operations

Sales & Marketing

Customers

Workforce

Cost

Profitability

Growth

0 10 20 30 40 50 60

2

5

5

6

6

8

10

4

8

10

23

3

2

5

6

6

9

5

8

12

11

10

4

3

7

6

8

6

7

13

7

7

9

2

3

4

2

2

3

3

9

7

1

5

2

2

2

3

2

2

2

7

3

1

2

“This Will Be a

Turning-Point

Year as Business

Leaders Defiantly

Rank Growth

Ahead of Cost.”

– Gartner, 2013 Gartner report ”CEO and Senior Executive Survey

2013: As Uncertainty Recedes, the Digital Future

Emerges.” Analysts: Mark Raskino and Jorge Lopez

Top Priority Second Third

© 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 5

Cisco-Intel Customer Study: Key Implications for IT

• IT planning will increasingly involve stakeholders from LOBs

• IT planning will increasingly take place with direct involvement of third-party vendors

Business-IT Value Creation: IT leaders will need to reimagine what it means to partner with the business and share in value creation. This extends to funding mechanisms, budgeting, metrics, planning, governance models, and all aspects of how IT is managed.

76% IT will act as a “broker” of cloud services across internal and external clouds for LOBs

© 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 6

Economic Model for the Evolution of Cloud

Hybrid

Public Private

Government

Retail

HealthcareMedia

Cloud Provider

Cloud Provider

Cloud Provider

Supply Side

Dynamic, Efficient Agility

Accelerated Deployment

Security Assured Experience

New Revenue Streams

Business

People

Demand Side

Government

Cloud Supply-Demand Ecosystem

© 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 7

Sourcing Strategy – Make vs. Buy

MAKE Attributes Core to Business Differentiation Mission Critical/Operational Advantage

in Cost/Risk/Scale/Speed User Experience: Customer

BUY Attributes

Core Value Prop of Vendor Many Small Scale Deployments

on a Global Scale User Experience: Employee

Key Decision Criteria Risk Profile Experience

Value Add Cost Time to Deploy

© 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 8

S

Sourcing OptionsFor each workload or service, an organization can choose from three main sourcing options:

Single vendor

Multi vendor

Best of breed infrastructure

Full stacks

Converged infrastructure

Value-add

Hyper-scale

Value-addENT clouds IaaS/PaaS

Giant clouds IaaS/PaaS

Best of breed SaaS

Giant clouds SaaS

Private Public SaaSPublic IaaS/PaaS

IT sourcing spectrum

© 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 9

On the Horizon: Cloud Services Federation

Airline Benefits

Passenger Benefits

Global Loyalty Program

Code Sharing

Customer Choice

Integrated Reservation System

Best Airlines

Increased Aircraft Loads

Retained Autonomy

Shared Facilities

Strong Brand

Common IT Platform

© 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 10

The Evolution of Cloud

Consolidation

Virtualization

Shared Service

On-premise

Cloud Federation

Cloud Brokerage

PaaS

IaaS

SaaS

Hybrid Cloud

Internal ITPublic CloudServices

Private Cloud

© 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 11

In Conclusion…

• Cloud has changed business and IT dynamics

• Demand-Supply Ecosystem for Cloud

• Role of IT as a Broker

• Cloud Federation on the Horizon

© 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 12

Thank you.