|By Steve Bulmer||
|March 3, 2013 12:00 PM EST||
You may be the CIO or IT manager for a fairly complex IT environment. You also may already have begun moving your data center to a private cloud paradigm that offers greater efficiency and agility to meet your company's needs.
While there are still a few challenges to work through, most days seem to run fairly smoothly. In the course of a week, however, the landscape changes. You are suddenly drawn into discussions with company management about a potential acquisition or merger in the works.
How do you advise your company on the impact of bringing both IT worlds together, let alone how best to navigate, post-M&A, the smooth integration of the other company's IT assets with yours?
As it turns out, a hybrid cloud paradigm - used in what I call 'swing-shift' mode - may be one way to mitigate risk when integrating IT worlds after a corporate merger or acquisition.
Expanding Use Cases for Hybrid Cloud
We generally define hybrid cloud as the informational and managerial relationship between an organization's internal, private cloud and someone else's cloud (whether that other cloud is public or a hosted, private cloud). The idea of using the fast-growing hybrid cloud paradigm as a swing shift of sorts for post-M&A IT asset integration is the second of two use cases we'll describe here:
1. Cloud Bursting
This is the first and most commonly described use case for hybrid cloud computing. Often referred to as 'cloud bursting,' this allows a company to temporarily expand the processing capability of its own internal, private cloud environment by tapping into the added processing power of an external cloud provider. This scenario is used to better meet short-term, burstable processing needs that are often associated with seasonal fluctuations of retailers or business service providers. Examples that come to mind include Black Friday, Election Day or other significant, periodic inflection points.
Using hybrid cloud to temporarily boost in-house compute cycles can give companies an extra weapon in the capacity-planning arsenal and a better way to balance capital expenditures with on-going operating expenses. Capital expenditures can be budgeted to meet a company's general, steady-state processing capacity while operating expenses are contracted based on usage in order to meet a yearly services rush. The business advantage to buying-for-the-surge is that the additional cost can be associated with the specific event. Subsequent cost/benefit analysis is then focused on that specific event.
2. Swing-Shift IT Integration (Post-M&A)
Admittedly, using a hybrid cloud architecture to aid integration of IT assets for a corporate merger or acquisition project is not as common a use case as cloud bursting. But, it can have much broader appeal to more companies. I call it hybrid cloud in 'swing-shift' mode because this use case relies on an external cloud provider acting as a safe 'swing' architecture (or temporary home) for the merged or acquired company's IT assets and applications.
This type of hybrid cloud usage can help address many of the challenges that occur when acquiring companies with technology assets. Such challenges include:
- Isolating and evaluating possibly outdated technology which the acquired company may not have kept up to date in anticipation of being sold.
- Separating architectures -- especially where there are vast differences in security, compliance or other IT governance issues between the acquirer and the acquired.
In each of these cases, the acquirer may be unwilling to bring such IT assets onto the network or into the data center too quickly or without ample triage around the migration approach. In contrast, a hybrid cloud environment can provide a temporary holding place for users' desktops, mailboxes, or even certain business applications. For the acquiring company it can offer a useful virtual, 'cleansing' environment to use as a base prior to ingesting into the permanent environment.
Swing Shift Hybrid Cloud in Action
In recent years, a few companies have made IT news for their novel use of hybrid cloud to aid in their own M&A integrations.
In 2011, Gartner published its own case study surrounding international Milwaukee-based manufacturer Brady Corporation that had acquired 50 companies in relative short order. The case study, "Brady Corporation: Hybrid cloud sourcing accelerates post-merger integration," [ID Number: G00211838] described various ways the company was able to leverage cloud services to help it migrate IT infrastructure and systems following its various acquisitions.
In late 2012, enterprise cloud provider Virtustream also shared how Domino Sugar used its hybrid cloud services to migrate and integrate IT assets from a recently acquired holding, Tate & Lyle Sugars. In this case, Domino Sugar had to first 'carve out' Tate & Lyle Sugars' business applications from its prior parent company's IT environment before the newly acquired company could be integrated into Domino Sugar's IT environment. At the time, Domino Sugar was also using Virtustream cloud services. To aid the process, the cloud provider deployed an on-premise cloud appliance at Tate & Lyle Sugars' U.K. data center. It then connected the appliance to its own off-premise cloud nodes in the U.S. A post-merger integration, migration and archiving methodology was followed by Virtustream in order to successfully transition and merge IT assets between Domino and Tate & Lyle. [See press release dated 09/13/2012, "Cloud Leveraged for a Rapid Post-Acquisition Integration of Tate & Lyle Sugars." ]
Such use cases highlight hybrid cloud's ability to serve a number of functions, including its use as a viable staging and filtering area for incoming IT assets stemming from a recent acquisition.
Swing-Shift Hybrids: What You Need to Know
Domino Sugar's real-world case describes methodologies and planning needed to successfully use hybrid cloud in this type of swing-shift mode.
Here, it might be helpful to consider that much of the same methodologies and planning apply to the post-M&A environment as they do when you are conducting other major data center transformation efforts:
- Physically moving your company's IT assets to a new data center
- Consolidating or collapsing multiple data centers
- Merging dispersed IT assets after a business-wide reorganization.
In all cases, a wide variety of large and small details and dependencies must be identified, evaluated and addressed. Experienced IT advisors can help minimize a company's risk during this process. This includes knowing where best to employ a hybrid cloud to further minimize risk and streamline integration. Armed with this type of advice, a company in the midst of M&A activity should be able to better address:
- Ways to begin operation of the newly acquired entity within an often tight timeline
- Interim and post-M&A handling of the acquired company's mail servers and Active Directory domains and domain controllers
- Whether or not the acquired company's hardware should be added to the new company or whether it should be subsequently retired
- The impact of archiving some of the acquired company's data and applications vs. retiring applications which may now be obsolete
- The possibility of combining short-term data migration efforts in a hybrid cloud environment with a larger virtualization project. Such an environment may be able to facilitate migrating the acquired company's physical servers into a virtual server environment (P-to-V conversion)
- The prospect of setting up parallel or interim test/development environments via hybrid cloud in order to try out migration and integration efforts between old and new systems, or between the two companies themselves
In contrast to a cloud provider used for cloud bursting (where usage may only be needed over a matter of hours, days or weeks), usage of a swing-shift hybrid cloud provider is likely to span several months. This can impact what to look for when trying to find the right cloud provider.
Among the points identified earlier in this article, organizations also need to take a closer look at certain IT management elements like data protection and security. The term "hybrid cloud" implies that certain controls like authentication and management/monitoring can be extended from your company to the cloud provider. Even disaster recovery may need to be considered and included. Organizations should also spend time looking at the provider's data migration plan and application migration strategy since the data originates from an external source, the acquired company.
This is also an area where details really matter. A service provider that can effectively serve the role of a swing-shift hybrid cloud provider must exhibit the appropriate level of technical expertise, technological capabilities and customer references. The provider's contract and service level agreement must also have much of these details spelled out before you sign on the dotted line. IT advisors can help in this type of vetting process as well.
Once you have a viable roadmap to help navigate through these potential obstacles, hybrid cloud used in this type of swing-shift mode can be a very satisfying and efficient way to ease the burden of acquisitions. It can also help ease IT operational headaches and smooth the integration of an acquired company's people, processes and IT assets.
Identity is in everything and customers are looking to their providers to ensure the security of their identities, transactions and data. With the increased reliance on cloud-based services, service providers must build security and trust into their offerings, adding value to customers and improving the user experience. Making identity, security and privacy easy for customers provides a unique advantage over the competition.
Aug. 25, 2016 09:15 PM EDT Reads: 2,180
Qosmos has announced new milestones in the detection of encrypted traffic and in protocol signature coverage. Qosmos latest software can accurately classify traffic encrypted with SSL/TLS (e.g., Google, Facebook, WhatsApp), P2P traffic (e.g., BitTorrent, MuTorrent, Vuze), and Skype, while preserving the privacy of communication content. These new classification techniques mean that traffic optimization, policy enforcement, and user experience are largely unaffected by encryption. In respect wit...
Aug. 25, 2016 09:00 PM EDT Reads: 1,686
Using new techniques of information modeling, indexing, and processing, new cloud-based systems can support cloud-based workloads previously not possible for high-throughput insurance, banking, and case-based applications. In his session at 18th Cloud Expo, John Newton, CTO, Founder and Chairman of Alfresco, described how to scale cloud-based content management repositories to store, manage, and retrieve billions of documents and related information with fast and linear scalability. He addres...
Aug. 25, 2016 06:30 PM EDT Reads: 1,914
Is the ongoing quest for agility in the data center forcing you to evaluate how to be a part of infrastructure automation efforts? As organizations evolve toward bimodal IT operations, they are embracing new service delivery models and leveraging virtualization to increase infrastructure agility. Therefore, the network must evolve in parallel to become equally agile. Read this essential piece of Gartner research for recommendations on achieving greater agility.
Aug. 25, 2016 05:15 PM EDT Reads: 632
SYS-CON Events announced today that Hitrons Solutions will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Hitrons Solutions Inc. is distributor in the North American market for unique products and services of small and medium-size businesses, including cloud services and solutions, SEO marketing platforms, and mobile applications.
Aug. 25, 2016 04:15 PM EDT Reads: 420
Smart Cities are here to stay, but for their promise to be delivered, the data they produce must not be put in new siloes. In his session at @ThingsExpo, Mathias Herberts, Co-founder and CTO of Cityzen Data, will deep dive into best practices that will ensure a successful smart city journey.
Aug. 25, 2016 03:30 PM EDT Reads: 1,487
DevOps at Cloud Expo, taking place Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long dev...
Aug. 25, 2016 03:15 PM EDT Reads: 2,212
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...
Aug. 25, 2016 02:00 PM EDT Reads: 3,546
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportuni...
Aug. 25, 2016 01:00 PM EDT Reads: 3,891
SYS-CON Events announced today that Venafi, the Immune System for the Internet™ and the leading provider of Next Generation Trust Protection, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Venafi is the Immune System for the Internet™ that protects the foundation of all cybersecurity – cryptographic keys and digital certificates – so they can’t be misused by bad guys in attacks...
Aug. 25, 2016 01:00 PM EDT Reads: 2,596
DevOps at Cloud Expo – being held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real results. Am...
Aug. 25, 2016 12:15 PM EDT Reads: 3,387
Announcing @TelecomReseller Named “Media Sponsor” of @CloudExpo Silicon Valley | #IoT #Cloud #BigData
SYS-CON Events announced today Telecom Reseller has been named “Media Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
Aug. 25, 2016 09:00 AM EDT Reads: 581
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
Aug. 25, 2016 08:30 AM EDT Reads: 1,753
Aspose.Total for .NET is the most complete package of all file format APIs for .NET as offered by Aspose. It empowers developers to create, edit, render, print and convert between a wide range of popular document formats within any .NET, C#, ASP.NET and VB.NET applications. Aspose compiles all .NET APIs on a daily basis to ensure that it contains the most up to date versions of each of Aspose .NET APIs. If a new .NET API or a new version of existing APIs is released during the subscription peri...
Aug. 25, 2016 06:30 AM EDT Reads: 1,848
Personalization has long been the holy grail of marketing. Simply stated, communicate the most relevant offer to the right person and you will increase sales. To achieve this, you must understand the individual. Consequently, digital marketers developed many ways to gather and leverage customer information to deliver targeted experiences. In his session at @ThingsExpo, Lou Casal, Founder and Principal Consultant at Practicala, discussed how the Internet of Things (IoT) has accelerated our abil...
Aug. 25, 2016 02:00 AM EDT Reads: 1,920
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
Aug. 25, 2016 02:00 AM EDT Reads: 1,812
With so much going on in this space you could be forgiven for thinking you were always working with yesterday’s technologies. So much change, so quickly. What do you do if you have to build a solution from the ground up that is expected to live in the field for at least 5-10 years? This is the challenge we faced when we looked to refresh our existing 10-year-old custom hardware stack to measure the fullness of trash cans and compactors.
Aug. 25, 2016 01:15 AM EDT Reads: 1,644
Extreme Computing is the ability to leverage highly performant infrastructure and software to accelerate Big Data, machine learning, HPC, and Enterprise applications. High IOPS Storage, low-latency networks, in-memory databases, GPUs and other parallel accelerators are being used to achieve faster results and help businesses make better decisions. In his session at 18th Cloud Expo, Michael O'Neill, Strategic Business Development at NVIDIA, focused on some of the unique ways extreme computing is...
Aug. 25, 2016 01:00 AM EDT Reads: 1,997
The emerging Internet of Everything creates tremendous new opportunities for customer engagement and business model innovation. However, enterprises must overcome a number of critical challenges to bring these new solutions to market. In his session at @ThingsExpo, Michael Martin, CTO/CIO at nfrastructure, outlined these key challenges and recommended approaches for overcoming them to achieve speed and agility in the design, development and implementation of Internet of Everything solutions wi...
Aug. 25, 2016 12:45 AM EDT Reads: 1,926
19th Cloud Expo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterpri...
Aug. 25, 2016 12:00 AM EDT Reads: 2,999