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Wissam Raffoul

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Dr. Wissam Raffoul is an IBRS advisor who specialises in transforming IT groups into service organisations, with particular expertise in IT Service Management (ITSM), process optimisation, outsourcing and cloud strategies, enterprise systems management solutions and business-centric IT strategies. Prior to joining IBRS in August 2013, he was General Manager strategic consulting in Dimension Data advising clients on applying technology to improve business performance. Prior to joining Dimension Data, he was a Vice President in Gartner /META Group and issued various research publications covering service delivery processes, centre-of-excellence models, managing outsourcing vendors, benchmarks, maturity models, IT procurement evolution and supply/demand models. In previous positions, he headed HP ITSM consulting Practice in Australia. He also acted as an infrastructure manager, reporting to the CIO at a number of large organisations in government and in the financial and petrochemical industries.

Conclusion: WhileI SaaS and PaaS adoption has been increasing during the last two years, most IT organisations are hesitant to migrate their legacy systems to public SaaS. This is primarily due to the applications being highly customised to support the current business mode of operations. As a result, migration to cloud requires significant effort to retrofit the existing systems in public SaaS architecture. One of the options to address the customisation obstacle is to adopt a rapid business process redesign approach.


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While IBM is planning to invest A$1.4 million to grow its global datacentre facilities, its focus remains on private cloud with no serious public cloud offerings, As a result, IT organisations under traditional outsourcing contracts with IBM should examine the feasibility and cost-effectiveness of third party public cloud alternatives prior to renewing the existing outsourcing contracts.1


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Conclusion: 80% of traditional outsourcing contracts established in Australia during the last 25 years were renewed with the same service provider. However, with the emergence of public Cloud, IT organisations should examine the feasibility and cost-effectiveness of migrating to public Cloud prior to renewing the existing outsourcing contracts.


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Conclusion: With the migration to complex hybrid sourcing strategies, traditional IT organisations based on ‘plan/build/run’ models won’t be suitable for acquiring public cloud services in an increasingly changing market. This is due to vague understanding of service total cost of ownership and limited contract negotiation skills. IT organisations wishing to rely on external services must evolve to ‘plan/procure/govern’ structure to emphasise strategic service planning and hire specialised service procurement skills. This paradigm shift requires CIOs to restructure IT procurement with a view to run it as-a-service to other IT groups and business lines.


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Conclusion: IT organisations wishing to maximise Public Cloud return on investment should adopt a Cloud Governance Maturity Model that ensures consistent delivery, builds trust and leverages new technology. This will enable IT organisations to effectively manage their sourcing portfolio by balancing cost and risks, creating value and realising the desired benefits.


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Conclusion: In-house IT Service Management (ITSM) initiatives require considerable time and investment (up-to three years, up-to $1.5 million approximately). This has resulted in limited senior management continuous buy-in and reduced ITSM benefits realisation. Therefore, IT organisations wishing to implement ITSM should evaluate a public cloud alternative versus the cost and merits of establishing in-house service management capability.


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Conclusion: Some SaaS service providers can exercise ‘exit for convenience’ contractual terms by giving no more than thirty days termination notice. As a result, SaaS users will be at a high risk to recover services on time and without data loss. Therefore, IT organisations wishing to migrate critical services to public SaaS should develop a Contingency Plan and test it regularly. The Contingency Plan establishment cost should be incorporated into the business case for public SaaS migration.


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Conclusion: IT organisations wishing to migrate in-house services to public cloud should ensure that service providers understand the complexity of the in-house architecture candidate for cloud migration. This can be achieved by identifying the in-house service failure points within the legacy applications and their associated infrastructure. The service providers’ lack of understanding of the existing operational weaknesses will most likely extend the transition period and delay achieving the expected service levels in a gradual and cost-effective manner.


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Conclusion: IT organisations managing a multi-sourced environment and wishing to reduce unscheduled service downtime, should establish end-to-end Change Management Frameworks. This will ensure that business operations remain unaffected by service providers’ system changes.


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Conclusion: Given that the public cloud value is maximised when end-to-end SaaS is reached, IT organisations’ misunderstanding of SaaS building blocks, business applications architecture integration and lack of mature multi-sourced environment governance will limit SaaS public cloud adoption. CIOs should establish a cloud sourcing strategy to assess the feasibility and cost effectiveness to gradually migrate business applications to public cloud. Failure to do so might minimise public cloud opportunity to improve enterprises’ performance and/or reduce the cost of doing business.


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