1. EMPOWER
INNOVATE…
TRANSFORM…
3 Must-Do Steps for IT to
Maintain Relevancy in a
Cloud World
Presented By: Lisa Larson
VP of Enterprise Cloud Solutions

2. About Me…
lisa.larson@rackspace.com
www.rackspace.com
Lisa Larson
Vice President
Enterprise Cloud Solutions
Rackspace Hosting
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3. The 3 Must Do Steps For IT
 EMPOWER
 INNOVATE
 TRANSFORM
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4. Meet Steve Mills…
• Rackspace CIO
• He serves 5,000 Technically Savvy
Rackers
• He is facing Exponential Company
Growth
– Acquisitions
– On-boarding new employees
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5. Steve’s Chief IT Challenges
Recruiting and
IT is capital
retaining talent
intensive
is problematic
The business Managing
expects near increasingly
instantaneous complex
delivery environments is
difficult
Demand for IT Juggling Legacy
services and New App
exceeds supply Development
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6. Rackers Provide Fanatical Support…
And, EXPECT Fanatical Support
CONSUMERIZATION of IT
Instant CPU… Instant Storage… Instant Provisioning…
Instant Gratification!
“I DON’T CARE HOW…
• BYOD I WANT IT NOW!”
• Mobility
• DIY Cloud
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7. Rackers Began to Find Their Own Solutions
We need… SPEED,
AGILITY &
FLEXIBILITY
Service Provider
Business
Unit WE CAN’T HELP YOU
80% of our IT spend &
resources are devoted to
“keeping the lights on”
Internal IT Department
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8. Like Many IT Leaders…
Steve Knew He had Shadow IT
43% of IT Decision Makers know they
have Shadow IT in their organization.
Business units are leveraging cloud
computing to help with work projects.
38% of IT Decision Makers said
the main reason is to save time
One in three said it was because internal
solutions were not available or because they did not
want to deal with the IT department.
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Source: McLaughlin & Assoc, national online survey (per San Antonio Business Journal June 25, 2012),
conducted among 500 IT decision-makers, who work for businesses or organizations that use cloud computing.

9. Steve Knew the Dangers of Shadow IT…
Unsanctioned Use Weakened Spending
of Cloud Control
• Loss of Control/Governance • Lack of Negotiated Terms
• Security Breaches • Diminished Liabilities Control
• Compliance Penalties • Misclassification of Spend
• Lost Revenue • Profit Erosion
• Brand Deterioration • Spend Ignorance
• Loss of Business IP • Vendor Contract Lock-in
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10. Steve Had a Choice…
IT Dept.
 Overwhelmed by demand  BUs follow the shortest
IT
 CMO takes over IT
and easiest path budget
 Struggling to meet
business needs  BUs leverage Service  IT no longer brings
Provider to solve value to the org
 80% of time dedicated to
business needs
keeping lights on  Organizational
downsizing ensues
The role of IT is no longer just project/architecture based.
IT Strategy must be built on adding business value! RACKSPACE® HOSTING | W W W.RACKSPACE.COM
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11. Steve Needed to Adopt a New Way of Thinking
Virtualization is a TECHNOLOGY …
Cloud Computing is a
BUSINESS MODEL
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12. Steve Needed to Find a Safe Way to
Leverage Shadow IT
Create New Procedures
BUILD A SERVICE CATALOG
Set guardrails for the business.
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13. Now Steve is Fueling the Innovation Engine
Cloud
First
Mindset
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14. Steve is on the Path of Transforming
IT
the Business of IT
IT Dept. Adopting a Service Partner to the
Provider Mentality Business
 Overwhelmed by  Enable a service catalog through  CIO becomes an Advisor to
demand a Service Provider the Business
 Struggling to meet  Empower a self-service  IT working on game-
business needs organization changing, strategic
 80% of time dedicated  Create an army of innovators initiatives
to keeping lights on  Free IT resources to focus on  Demands of the Business
business value are met
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15. Shadow IT is Now Steve’s Best Friend
• Empowers a self-service organization
• Spurs Innovation more projects into idea funnel
• Provides strong POC environments to vet CAPEX spend
• Frees IT Resources…
IT is now focused on where they provide
business value … in the APPS
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16. The 3 Must Do Steps For IT
 EMPOWER: IT AS A SERVICE
 INNOVATE: CLOUD FIRST MINDSET
 TRANSFORM: IT AS BUSINESS
ADVISORS
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17. IT Transformation Framework
Step by step approach to adopting cloud
Customer
Data Center
Design
IT Application Cloud POC Migration Solution
Evolution Profiling Readiness
Pilot Services Online
Workshop Workshop Assessment
Architecture
Migrate
Strategize & Assess Design Support & Optimize
Implement
Governance Planning & Customer Maturity Evolution
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18. Get SMART on Cloud
Recommended Industry Resources: Recommended Rackspace Resources:
• The Big Switch, Nicholas Carr • Cloud: Vision to Reality whitepaper
• Cloud: Economics whitepaper
• Cloudonomics: The Business Value of Cloud • Take the Cloud Readiness Self Assessment
Computing, Joe Weinman
• Rackspace Cloud Tools Marketplace • Use cases:
• http://gigaom.com/ – Hybrid Hosting: Dominos Pizza and watch the video
– RackConnect™: VEVO and watch the video
• www.gartner.com
– Private Cloud: Lighthouse1
• www.forrester.com – Advisory Services: Acquity Group
• www.idc.com
Rackspace
Knowledge JOIN US!
Center
“Our goal is to create the most
CLOUD SAVVY
customers in the industry”
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