|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.
SYS-CON Events announced today that EastBanc Technologies will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. EastBanc Technologies has been working at the frontier of technology since 1999. Today, the firm provides full-lifecycle software development delivering flexible technology solutions that seamlessly integrate with existing systems – whether on premise or cloud. EastBanc Technologies partners with p...
May. 30, 2016 09:00 PM EDT Reads: 2,445
While there has been much ado about interoperability, there are still no real solutions, same as last year and the year before that. The large EHR vendors who continue to dominate the market still maintain that interoperability is all but solved, still can't connect EHRs across the continuum causing frustration by providers and a disservice to patients. The ONC pays lip service to the problem, but that is about it. It is time for the healthcare industry to consider alternatives like middleware w...
May. 30, 2016 08:15 PM EDT Reads: 1,839
Our CTO, Anders Wallgren, recently sat down to take part in the “B2B Nation: IT” podcast — the series dedicated to serving the IT professional community with expert opinions and advice on the world of information technology. Listen to the great conversation, where Anders shares his thoughts on DevOps lessons from large enterprises, the growth of microservices and containers, and more.
May. 30, 2016 07:00 PM EDT Reads: 1,603
SYS-CON Events announced today that AppNeta, the leader in performance insight for business-critical web applications, will exhibit and present at SYS-CON's @DevOpsSummit at Cloud Expo New York, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. AppNeta is the only application performance monitoring (APM) company to provide solutions for all applications – applications you develop internally, business-critical SaaS applications you use and the networks that deli...
May. 30, 2016 06:00 PM EDT Reads: 2,668
SYS-CON Events announced today the Docker Meets Kubernetes – Intro into the Kubernetes World, being held June 9, 2016, in conjunction with 18th Cloud Expo | @ThingsExpo, at the Javits Center in New York, NY. Register for 'Docker Meets Kubernetes Workshop' Here! This workshop led by Sebastian Scheele, co-founder of Loodse, introduces participants to Kubernetes (container orchestration). Through a combination of instructor-led presentations, demonstrations, and hands-on labs, participants learn ...
May. 30, 2016 03:00 PM EDT Reads: 2,086
SYS-CON Events announced today the How to Create Angular 2 Clients for the Cloud Workshop, being held June 7, 2016, in conjunction with 18th Cloud Expo | @ThingsExpo, at the Javits Center in New York, NY. Angular 2 is a complete re-write of the popular framework AngularJS. Programming in Angular 2 is greatly simplified. Now it’s a component-based well-performing framework. The immersive one-day workshop led by Yakov Fain, a Java Champion and a co-founder of the IT consultancy Farata Systems and...
May. 30, 2016 12:00 PM EDT Reads: 4,124
Join us at Cloud Expo | @ThingsExpo 2016 – June 7-9 at the Javits Center in New York City and November 1-3 at the Santa Clara Convention Center in Santa Clara, CA – and deliver your unique message in a way that is striking and unforgettable by taking advantage of SYS-CON's unmatched high-impact, result-driven event / media packages.
May. 30, 2016 11:00 AM EDT Reads: 2,592
The initial debate is over: Any enterprise with a serious commitment to IT is migrating to the cloud. But things are not so simple. There is a complex mix of on-premises, colocated, and public-cloud deployments. In this power panel at 18th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists will look at the present state of cloud from the C-level view, and how great companies and rock star executives can use cloud computing to meet their most ambitious and disruptive business ...
May. 30, 2016 10:00 AM EDT Reads: 2,319
SYS-CON Events announced today that BMC Software has been named "Siver Sponsor" of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. BMC is a global leader in innovative software solutions that help businesses transform into digital enterprises for the ultimate competitive advantage. BMC Digital Enterprise Management is a set of innovative IT solutions designed to make digital business fast, seamless, and optimized from mainframe to mo...
May. 30, 2016 09:15 AM EDT Reads: 2,404
Earlier this week, we hosted a Continuous Discussion (#c9d9) on Continuous Delivery (CD) automation and orchestration, featuring expert panelists Dondee Tan, Test Architect at Alaska Air, Taco Bakker, a LEAN Six Sigma black belt focusing on CD, and our own Sam Fell and Anders Wallgren. During this episode, we discussed the differences between CD automation and orchestration, their challenges with setting up CD pipelines and some of the common chokepoints, as well as some best practices and tips...
May. 30, 2016 08:30 AM EDT Reads: 1,461
SoftLayer operates a global cloud infrastructure platform built for Internet scale. With a global footprint of data centers and network points of presence, SoftLayer provides infrastructure as a service to leading-edge customers ranging from Web startups to global enterprises. SoftLayer's modular architecture, full-featured API, and sophisticated automation provide unparalleled performance and control. Its flexible unified platform seamlessly spans physical and virtual devices linked via a world...
May. 30, 2016 08:00 AM EDT Reads: 2,412
Automation is a critical component of DevOps and Continuous Delivery. This morning on #c9d9 we discussed CD Automation and how you can apply Automation to accelerate release cycles, improve quality, safety and governance? What is the difference between Automation and Orchestration? Where should you begin your journey to introduce both?
May. 30, 2016 07:30 AM EDT Reads: 1,510
When I talk about driving innovation with self-organizing teams, I emphasize that such self-organization includes expecting the participants to organize their own teams, give themselves their own goals, and determine for themselves how to measure their success. In contrast, the definition of skunkworks points out that members of such teams are “usually specially selected.” Good thing he added the word usually – because specially selecting such teams throws a wrench in the entire works, limiting...
May. 30, 2016 06:45 AM EDT Reads: 1,689
SYS-CON Events announced today TechTarget has been named “Media Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. TechTarget is the Web’s leading destination for serious technology buyers researching and making enterprise technology decisions. Its extensive global networ...
May. 30, 2016 05:30 AM EDT Reads: 3,324
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management...
May. 30, 2016 04:45 AM EDT Reads: 3,357
As AT&Ts VP of Domain 2.0 architecture writes one aspect of their Domain 2.0 strategy is a goal to embrace a Microservices Application Architecture. One page 9 they describe how these envisage them fitting into the ECOMP architecture: "The initial steps of the recipes include a homing and placement task using constraints specified in the requests. ‘Homing and Placement' are micro-services involving orchestration, inventory, and controllers responsible for infrastructure, network, and applicati...
May. 30, 2016 04:15 AM EDT Reads: 1,921
Many banks and financial institutions are experimenting with containers in development environments, but when will they move into production? Containers are seen as the key to achieving the ultimate in information technology flexibility and agility. Containers work on both public and private clouds, and make it easy to build and deploy applications. The challenge for regulated industries is the cost and complexity of container security compliance. VM security compliance is already challenging, ...
May. 30, 2016 03:45 AM EDT Reads: 1,411
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, wh...
May. 30, 2016 03:00 AM EDT Reads: 2,104
SYS-CON Events announced today that Tintri Inc., a leading producer of VM-aware storage (VAS) for virtualization and cloud environments, will exhibit at the 18th International CloudExpo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, New York, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
May. 30, 2016 02:45 AM EDT Reads: 2,558
SYS-CON Events announced today that Alert Logic, Inc., the leading provider of Security-as-a-Service solutions for the cloud, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Alert Logic, Inc., provides Security-as-a-Service for on-premises, cloud, and hybrid infrastructures, delivering deep security insight and continuous protection for customers at a lower cost than traditional security solutions. Ful...
May. 30, 2016 02:15 AM EDT Reads: 3,049