case analysis: moving terra firma to the cloud

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Σ IT Recommendations for Terra Firma Medical Systems Efesa Origbo | Hariprasad Tilakan | Sharon Dsouza Σ Consulting October 2010 CMIS Case Competition “Taking Terra Firma to the Cloud”

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Page 1: Case Analysis: Moving Terra Firma to the Cloud

ΣC o n s u l t i n g

IT Recommendations for

Terra Firma Medical Systems

Efesa Origbo | Hariprasad Tilakan | Sharon Dsouza

ΣC o n s u l t i n g

October 2010CMIS Case Competition

“Taking Terra Firma to the Cloud”

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Agenda

Background Background

Problem Statement

Analysis Trends Analysis

IT at Terra Firma

Challenges/Opportunities

Recommendations High-Level Roadmap

Weighted Score Model

Systems Architecture

Benefits

Implementation Assumptions

Implementation Methodology

Services Delivery Model

Resources

Financial Analysis

Project Timeline

Risk/Mitigation Plan

Conclusion2

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Background: Terra Firma

Leading supplier for medical imaging devices

Provider of technical support and integration services for

medical imaging systems

Develops software for visualization, analysis and storage of

medical images

More than NZ$ 2.5 billion of annual revenue in 2009

Network crash in April 2010

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Problem Statement

“ How can we use technology to enable Terra Firma’s business

processes, and position it to effectively identify and exploit

emerging opportunities while ensuring business continuity ”

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TREND ANALYSIS

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External factors

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GE, Siemens are subject to medical regulations in the future

Regulation backlash may result in lower margins

Terra Firma

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Emerging opportunities

7

Terra introduced a line of filmless dental and veterinary X-ray systems

Growth opportunity for Terra Firma

Terra Firma

Filmless Dental

Veterinary X-ray systems

Rapid Growth

0

50000000

10000000

15000000

20000000

25000000

30000000

35000000

40000000

2007 2008 2009

Revenue

Revenue

Independent Distributors

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IT Investments at Terra Firma

80% IT budget into maintenance

20% IT budget into innovation

More investment into IT innovation

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Funding Innovation

20%

New Funds for innovation

40%

Infrastructure Maintenance

40%

Optimal BreakdownCurrent Breakdown

Funding Innovation

20%

Infrastructure Maintenance

80%

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IT Infrastructure at Terra Firma

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IT issues

Network Failure

Lack of effective technology

management policies

Additional problems

Missing log files

Corrupted database tables

Inconsistent data

10%

90%

IT Infrastructure

Standardized

Disparate

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Opportunity/Approach

Aggressively use technology for vertical integration

More investment into innovation

Consolidate and standardize IT infrastructure

Enforce IT governance policies

Challenges/Opportunities

Medical regulations may lead to lower margins

Underinvestment into IT

Disparate systems

Lack of technology management policies

Approach

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RECOMMENDATIONS

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High Level Roadmap

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Consolidate Virtualize Automate Optimize

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Solution Framework

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SOA Web Services

Public CloudPrivate Cloud

Ap

plic

atio

ns

Infr

astr

uct

ure

Internal External

Supports communications between services

Defines how programs interact to perform a unit of work

Self contained applications

Perform functions, from simple requests to complicated business processes

Standard cloud computing model

Service provider makes resources available

Proprietary computing architecture

Provides hosted services to a limited number of people

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What to put where?

Mi

gr

at

io

nC

ri

te

ri

a

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Criticality

Business Impact Business Outlook

Governance

Security Service Management Risk Exposure Compliance

Elasticity

Workload Storage Utilization

Technology

Architecture Infrastructure Quality of Service

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Migration Framework

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SOA Web Services

Public CloudPrivate Cloud

Ap

plic

atio

ns

Infr

astr

uct

ure

Internal External

PC Support

Email/Calendar

Videoconferencing Apps

Collaboration Apps

ERP

SCM HCM CRM

BI

HardwareEngineering

SoftwareEngineering

Manufacturing

Compliance Apps

Compliance

BI Apps

Collaboration

Email/Calendar

Apps

Manufacturing Apps

CRM Apps

SCM Apps

HCM Apps

ERP Apps

HardwareEngineering Apps

SoftwareEngineering Apps

Videoconferencing

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Service Runtime Engine

Services Registry and Repository

Centralized Policy and Services Management

Enterprise Service Bus

S e r v i c e V i r t u a l i z a t i o n L a y e r

CRM

JDE

Beowulf

Microsoft

Services Services Services Services

Streaming

Content

Mail

Private

Manager

Software

Engineering

Business

Analyst

Vendor

Hardware

Engineering

Public

Hybrid

Portals and Rich Internet Applications

Systems Architecture

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System Characteristics/Benefits

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Service-centric environment

Standardized, shared services

Scalable and elastic

Automated

Self service, pay-per-use

Benefits

Aligns technology with key business process

Improved cost management

Rapid response to business changes

Reduced errors and outages

Transparency

Characteristics

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IMPLEMENTATION

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Assumptions

Organic growth of IT infrastructure at Terra Firma has led to:

Excess processing and storage capacity

Duplicate of applications across different locations

10% of applications at Terra Firma are standards compliant and

can be easily exposed as services

IT Steering Committee will henceforth

enforce strict adherence to ITIL guidelines

for application development

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Implementation

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Consolidation

Virtualization

Public Cloud Migration

Private CloudMigration

Business ProcessModeling

Analyze applications and align with key Terra Firma processes Determine technology needs from a service perspective

Streamline infrastructure Eliminate excess capacity

Implement Service Virtualization Layer Develop applications as services

Move relevant applications to Public Cloud

Move relevant applications to Private Cloud

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Services Delivery Process

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Resources

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Project Timeline

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6 Years

Public Cloud

Virtualization

Time

Business Process Modeling

Consolidation

Private Cloud

6 Months

1.5 Years

4 Years

3 years

6 Months

Short Term Medium Term Long Term

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Change Management

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StakeholderAnalysis

Anticipate and manage key stakeholder responses

Involvement Gain buy-in from all levels

Structure Prevent reversal to status quo

Communication Consistently share the vision across all levels

Training Provide employees with tools needed for success

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Financial Analysis

Implementation Cost - $15,000,000.00 [Appendix D]

Recurring Costs per year - $ 1,000,000.00 [Appendix C]

Savings per year - $5,004,000.00 [Appendix C]

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-

1,000,000.00

2,000,000.00

3,000,000.00

4,000,000.00

5,000,000.00

6,000,000.00

7,000,000.00

8,000,000.00

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8

Savings

Net Cumulative Investment

Payback Period

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Risks/Mitigation

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Application/Infrastructure Security

Disruption of business continuity

Readiness

Geopolitical issues

Mitigation

Implement security policies and evaluate SLAs

Adopt a phased implementation approach

Perform detailedassessments

Implement compliance standards

Risks

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Service Level Agreement - Key Criteria

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Server Uptime/ Availability

Data Backup

Network Performance: Internal and External

Cloud Balancing & Cloud Bursting

Cloud Storage

Server Reboot

Support Response Time

Physical Security

24 x 365 Engineering Support

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Conclusion

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Consolidate

Terra Firma IT Roadmap

Virtualize

Automate

Optimized

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Thank you!

Efesa Origbo | Hariprasad Tilakan | Sharon Dsouza

ΣC o n s u l t i n g

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APPENDIX

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Appendix (A)

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Application Criticality Technology Governance Elasticity Total Cloud

Score 25 20 30 25 100

PC Support 20 70 40 50 43.5 Hybrid

Email/Calendar 20 90 20 20 33 Public

Video Conferencing 20 80 20 20 32 Public

Collaboration 20 80 50 40 46 Hybrid

ERP 90 80 90 90 88 Private

SCM 90 70 80 80 80.5 Private

HCM 90 80 90 90 88 Private

CRM 50 60 30 20 41 Hybrid

BI 50 60 70 60 60.5 Hybrid

Hardware Engineering 90 90 90 90 90 Private

Software Engineering 80 70 20 30 47.5 Hybrid

Manufacturing 50 60 70 60 60.5 Hybrid

Compliance 90 70 80 80 80.5 Private

Weighted Score Model

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Appendix (B)

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Service Delivery Business Process Diagram

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Appendix (C)

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Appendix (D)

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PAYBACK ANALYSIS

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Appendix (E)

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Appendix (F)

Risk Assessment

Physical Security

Vendor Lock-In

Vendor Viability

Mitigation

Security Audits

Open Source Vendors

Larger/Certified Vendors

Vendor Risks

Data Loss

Data Security

Data Location

Mitigation

Backup and Recovery Plan

VPN’S, SSL, IDS

Compliant with Global/Local Regulations

Data Risks

Licensing

Integration

Mitigation

Clear Billing/Licensing model

Better Integration Testing

Software/Application Risks

Natural Disasters

Resource Overload

MitigationInfrastructure Risks

Mirrored Data Center

Cloud Bursting/Balancing

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Appendix (G)

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Appendix (H)

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Appendix(J)

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Change Management

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Appendix (K)

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Appendix (L)

Access control and physical security

24-hour manned security, including foot patrols and perimeter inspections

Biometric scanning for access

Dedicated concrete-walled Data Center rooms

Computing equipment in access-controlled steel cages

Video surveillance throughout facility and perimeter

Building engineered for local seismic, storm, and flood risks

Tracking of asset removal

Environmental controls

Humidity and temperature control

Redundant (N+1) cooling system

Power

Underground utility power feed

Redundant (N+1) CPS/UPS systems

Redundant power distribution units (PDUs)

Redundant (N+1) diesel generators with on-site diesel fuel storage

Network

Concrete vaults for fiber entry

Redundant internal networks

Network neutral; connects to all major carriers and located near major Internet hubs

High bandwidth capacity

Fire detection and suppression

VESDA (very early smoke detection apparatus)

Dual-alarmed, dual-interlock, multi-zone, pre-action dry pipe water-based fire suppression

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Appendix (M)

Secure transmission and sessions

Connection is via SSL 3.0/TLS 1.0, using global step-up certificates from VeriSign, ensuring that our users have a secure

connection from their browsers to our service

Individual user sessions are identified and re-verified with each transaction, using a unique token created at login

Network protection

Perimeter firewalls and edge routers block unused protocols

Internal firewalls segregate traffic between the application and database tiers and Intrusion detection sensors

A third-party service provider continuously scans the network externally and alerts changes in baseline configuration

Disaster Recovery

Real-time replication to disk at each data center, and near real-time data replication between the production data center and the

disaster recovery center and data are transmitted across encrypted links.

Backups

All data are backed up to tape at each data center, on a rotating schedule of incremental and full backups

Internal and Third-party testing and assessments

Tests all code for security vulnerabilities before release, and regularly scans our network and systems for vulnerabilities.

Third-party assessments are also conducted regularly: Application/ Network vulnerability threat assessments

Security Monitoring

Our Information Security department monitors notification from various sources and alerts from internal systems to identify and

manage threats.

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