Multi-Tenant Services – Lessons Learned

1. Multi-Tenant Services – Lessons Learned January 13, 2011

2. IntroductionsPurpose and Objective Multi-Tenancy Overview Multi-Tenant Service Considerations ConclusionQuestions Agenda

3. Introductions Robert Roffey and Sid Kapila

4. b The value path for the Service Oriented Enterprise Mobility Processbased Externally created value through more efficient market interaction Services Oriented Enterprise Internal value created through process redesign Services Oriented Architecture Internal cost reduction by shared resources Services Oriented Infrastructure License cost savings • Linux • Platform Rationalisation • Storage Area Networks • Server Virtualisation • Grid Computing • Security • Web Services • Business Intelligence • Management tools • Development Tools • Service Orientated Architecture • Mobility • Event Driven • Real Innovation To drive incremental value, organizations are adopting Multi–Tenancy as part of Service Orientation

5. Purpose and Objectives Agenda

6. Purpose and Objectives Develop lessons learned from the experience of building application-oriented multi-tenant services and apply those learning's to enhance the Service Management playbook to improve the service creation process going forward • Use the CSG IT Credit Card payment processing service as a case study to assess what worked and what didn’t • Define leading practices and apply lessons learned from the case study to enhance the Service Management playbook for building multi-tenant services Objectives Project Approach Approach External Research Stakeholder Interviews Lessons Learned & Enhancing the Playbook Capgemini Points of View Cisco Svc Mgmt Playbook

7. Multi-Tenancy Agenda

8. Why Multi-Tenant Services are Critical to IT’s Success A Multi-Tenant (MT) IT service delivers common services (e.g. Billing, HR, Decision Support) to multiple customers, sharing the same application with a common underlying infrastructure Multi-Tenancy reflects greater reuse of services

9. When to use a Multi-Tenant Service In deciding whether a service can support multi-tenancy, a set of key attributes should be considered during the Strategize stage of the Service Management Lifecycle A major driver to invest in multi-tenancy is to replicate certain capabilities cheaply as organizations enter into new business models or optimize current operations

10. Multi-Tenant Service Consideration Agenda

11. Multi-Tenancy Requires Additional Considerations Throughout an end-to-end service lifecycle, Multi-Tenancy calls for MT specific considerations: Lifecycle Phases Anticipation of future needs and balancing of standardization with flexibility for each tenant Commitment to higher upfront investment, longer cost recovery, and internal billing strategy Design of a flexible and scalable architecture built on the concept of configuration and integration vs. standalone stability Domains Structure and processes to align multiple stakeholders with varied needs Extensive domain expertise, cross-functional resource assignment, and augment service delivery organization Enhanced operating processes and management of adoption across tenants These considerations have a series of implications that should be contemplated in the design of multi-tenant services

12. Consideration Mitigation Challenge Solution MT Considerations Solution considerations for Multi-Tenancy require anticipation of future needs and balancing standardization with flexibility for each tenant

13. Multi-Tenancy’s requirement for Demand/Supply Capacity Forecasting Demand Profile Types of Business Workloads Capacity Planning Aggregate Time scale Demands Workload Type Year Quarter Month Week Day Rate of Change Individual Demands Large/ DisruptiveJump in Demand LargeDemandPeak Understand the types of Demand profiles that the workload needs over time “Project”One offPeaks ContinualDemand SmallPeaks In determining Supply, determine where the services lies among the realm of ‘Consistent Availability’ and Rapid Availability’

14. Consideration Mitigation Challenge Financial MT Considerations Financial considerations for Multi-Tenancy require higher upfront investment, longer cost recovery, and internal billing strategy

15. Multi-Tenancy’s impact on funding / chargeback models TRADITIONAL IT SOLUTION MULTI-TENANT IT SOLUTION DirectCost MeasuredResourceUsage Subscription/Pay per Use Key Factors Simplicity Fairness Predictability Controllability BlanketAllocation SupportChargeback AdhocChargeback(Showback) IT DomainCost Allocation TieredFlat Rate NegotiatedFlat Rate Full cost recovery from the 1st tenant is not plausible BespokeITPricing IT ServiceCatalogPricing Market-basedPricing Diligent Demand / Supply Capacity Forecasting IncentiveGainshareUsage BusinessOutcomeRisk/Reward CrowdSource Shared IP Adapted from Gartner

16. Consideration Mitigation Challenge Technology MT Considerations Technology considerations for Multi-Tenancy requires the design of a flexible and scalable architecture built on the concept of configuration & integration vs. standalone stability

17. Consideration Mitigation Challenge Governance MT Considerations Governance considerations for Multi-Tenancy requires structure and processes to align multiple stakeholders with varied needs

18. Mitigation Challenge Consideration People MT Considerations People considerations for Multi-Tenancy requires extensive domain expertise, cross-functional resource assignment, and augmenting service delivery organization

19. Consideration Mitigation Challenge Process MT Considerations Processes considerations for Multi-Tenancy requires enhancing operating processes and managing adoption across tenants

20. Conclusion/Questions Agenda

21. How Should Multi-Tenant Services be Rolled-out In rolling out multi-tenancy, a combination of approaches must be considered in order to properly balance cost vs. benefit as well as likelihood of corporate adoption

22. Questions?