The Case for Private Cloud – Part 1: A Winning Strategy

November 6th, 2024 The Case for Private Cloud – Part 1:  A Winning Strategy
Caleb Crisci
Enterprise Architect

 

Editor’s note: This is Part 1 of a multi-part blog series discussing the pros and cons of private cloud vs public cloud computing, and some specific technologies that can enable Private Clouds. The information presented is meant to be used for educational and planning purposes. Please contact Mainline for more information and assistance in building or progressing your cloud strategy.

 

A Matter of Perspective

 

I recently returned from VMware Explore 2024 and brought with me a perspective I wasn’t planning to find. Beyond the hype of new products and planned capabilities, there was a strong undercurrent by Broadcom to position VMware Cloud Foundation (VCF) as the premiere on-premises Private Cloud. And if you’ve been through a VMware license renewal since Broadcom’s acquisition, you’ve likely heard them lead with VCF, regardless of your current licensing agreement or historical product usage.

We all know that VMware makes great products; that’s why they are the de facto standard for on-premises and hybrid computing. And while it’s easy to position a product or service on its technical merit, it sometimes remains elusive to translate that asset into real business value. This is the same value that Hock Tan declared was dormant within VMware’s products pre-acquisition and it justified a complete shake-up of just about every part of VMware’s product lineup and go-to-market strategy.

I’ve been in countless customer meetings where the “value” of these changes – namely the bundling of products, licensing changes from socket to core, and from perpetual to subscription – have been decried as just a cash grab. And while most companies do end up paying more on their license renewals, they also get more. Whether that is seen as “value” is really a matter of perspective.

 

Cost Compare

 

It’s a generally well-worn trope that the Public Cloud is much more expensive to operate than running those same workloads in your own datacenter. FinOps emerged after the sticker shock from hyperscalers highlighted the financial impact of proper workload sizing, technologies, and placement.

One of the reasons it was significantly cheaper to run on-prem was the simple fact that the core VMware offering, vSphere, was relatively cheap to purchase and easy to operate. However, we’re not talking apples-to-apples when comparing vSphere (ESXi and vCenter) to a public cloud. You are responsible for the facilities, hardware, and lifecycle management of a disparate group of items needed to make up the on-prem technology stack. No need to worry about any of that with the public cloud; it’s just someone else’s computer. There is also no automation or self-service capabilities with just vSphere; but there is with the public cloud. I think you can see where I’m going with this.

It is obvious now that VCF isn’t competing with the traditional on-premises compute, storage, and networking stacks. Even if all three of those main datacenter silos are virtualized, it’s still not a Private Cloud because it isn’t being operated and consumed like a Public Cloud; you need automation and orchestration for that. And those items work best when they are addressing a simple and standardized stack.

Explaining the technical benefits for transitioning traditional virtualized infrastructure (I refuse to say legacy, because it’s not) to something more cloud-like is straightforward:

  • Consistency
  • Reduced operating costs
  • Higher availability
  • Better resiliency
  • And more

Those items are well understood in the technical sphere and are realized via automation, proactive monitoring and alerting, etc. But we’re doing the business a huge disservice when we stop there.

IT desperately needs to be transformed from a cost center that performs the necessary evil of keeping the lights on into a true business partner and enabler of the business. And the best way to do that is to (gasp!) align IT directly with the business. This means that IT liaisons will need a deep understanding of the specific functional requirements of the business applications and data. This knowledge levels-up IT to be more solutions-focused and application / data-aware, as opposed to just running a technology stack for undifferentiated workloads. It gives IT a good reason to proactively interface with the business and proclaim the enabling capabilities on offer.

 

Winning with Private Cloud

 

And nothing is a more alluring capability than a Public Cloud-like operating and consumption model that lets the business get on with their jobs and reduces (or eliminates) friction between them and IT.

With a Private Cloud, it’s a win-win for all:

  • The CIO and business stakeholders are happy because they are more agile and efficient in producing value;
  • The CFO and accountants are happy because they are more effectively able to predict and control cloud spend;
  • The CISO and security teams are happy because they are better able to control risk and govern their data.

And finally,

  • IT is happy because they retain control of an enterprise-grade cloud platform and can provide proper support for their end users without worrying about the uncertainty of a widespread hyperscaler outage which is out of their control but they are viewed as responsible to manage. After all, IT is the organization that blessed the operating model.

 

So, what’s the call to action here?

 

First, the IT organization needs to take the initiative to understand and get a baseline of their current infrastructure and operating models. This introspection will often lead to a greater understanding of their mission and their “why.” A lot of central IT organizations have a deep sense of identity that they feel is being eroded by the Public Cloud. They often view a Private Cloud with the same wary eye as the public counterparts. But this is not a zero-sum game. Central IT is not giving up control or governance of their platform just because they delegate some of the more mundane aspects to the business via self-service. On the contrary, they are helping to retain control by offering services the business wants and needs with the ease that they have come to expect when running their workloads in a Public Cloud, but on-premises instead.

Secondly, they need to address how they plan to operate their new Private Cloud. The traditional IT silos of compute, storage, and networking can still exist, but there should be close collaboration between each team. We hear a lot about the need to break down the silos, but we forget why they exist in the first place. You need deep subject matter experts designing and operating each of these technologies, but they can’t just toss tickets over the wall and expect things to work smoothly. There needs to be a very proactive approach in aligning these teams together, with each having a greater understanding of the other’s roles, and with a common operating goal.

There are two main ways to do this: liaisons from each core skillset assigned to the Cloud team (with a dotted line back to their parent groups) or pulling individuals from each team to create a dedicated Cloud team. I prefer the former approach, as this still allows the individuals in the Cloud team (commonly the Cloud Center of Excellence for Public Clouds) to remain within their domains for deep collaboration within that area.

Finally, once the Private Cloud teams and operating models have been defined, the IT organization, with help from executive sponsorship (usually the CIO) should embark on a campaign to involve the individual lines of business. This is a critical component and is often the one that is overlooked.

 

Cloud Smart Approach

 

The business should be well aware of Central IT’s role in business enablement and establish a ‘cloud smart’ approach that includes preference for running their applications in their own Private Cloud environment. A feedback loop should be established between IT and the LOBs to ensure that the services and SLOs offered are in line with the requirements of the business. This will allow the business to be a key stakeholder, driver, and enabler of the Private Cloud strategy.

 

Hybrid Cloud Solutions from Mainline

 

Looking to get more benefit from your Hybrid Cloud solution? Mainline’s experts help our clients craft migration and strategy roadmaps to ensure a return on investment. Our goal is to create a cloud infrastructure that offers scalability, agility, and cost-effectiveness to deliver optimal business outcomes.

Our experts can assist you from the initial assessment through post-implementation support to selecting cloud services that can help you maximize and sustain business efficiencies. Contact your Mainline Account Representative directly or reach out to us here with any questions.

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