Click here to close now.


SDN Journal Authors: Stefan Dietrich, Elizabeth White, Peter Silva, Pat Romanski, Don MacVittie

Related Topics: @CloudExpo, Microservices Expo, Microsoft Cloud, Open Source Cloud, Containers Expo Blog, @BigDataExpo, SDN Journal

@CloudExpo: Article

When IT Universes Collide

How 'Swing Shift' Hybrid Clouds Can Help Transition Post-M&A IT Assets

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

Other Considerations
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.

More Stories By Steve Bulmer

Steve Bulmer brings more than 30 years of strategic and tactical technology advice to a vast array of clients. As former CTO for StraTech and now advisory principal with Datalink, he consults with IT executives and managers on strategies across Big Data, IT service level management, data protection and data management, business continuity/disaster recovery, and IT automation including virtualization, cloud, and the software-defined data center. Steve has helped develop numerous frameworks, methodologies, and maturity models that bring efficiencies to IT organizations.

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.

@CloudExpo Stories
Microservices are a very exciting architectural approach that many organizations are looking to as a way to accelerate innovation. Microservices promise to allow teams to move away from monolithic "ball of mud" systems, but the reality is that, in the vast majority of organizations, different projects and technologies will continue to be developed at different speeds. How to handle the dependencies between these disparate systems with different iteration cycles? Consider the "canoncial problem"...
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Day 2 Keynote at 17th Cloud Expo, San...
Apps and devices shouldn't stop working when there's limited or no network connectivity. Learn how to bring data stored in a cloud database to the edge of the network (and back again) whenever an Internet connection is available. In his session at 17th Cloud Expo, Ben Perlmutter, a Sales Engineer with IBM Cloudant, demonstrated techniques for replicating cloud databases with devices in order to build offline-first mobile or Internet of Things (IoT) apps that can provide a better, faster user e...
I recently attended and was a speaker at the 4th International Internet of @ThingsExpo at the Santa Clara Convention Center. I also had the opportunity to attend this event last year and I wrote a blog from that show talking about how the “Enterprise Impact of IoT” was a key theme of last year’s show. I was curious to see if the same theme would still resonate 365 days later and what, if any, changes I would see in the content presented.
Cloud computing delivers on-demand resources that provide businesses with flexibility and cost-savings. The challenge in moving workloads to the cloud has been the cost and complexity of ensuring the initial and ongoing security and regulatory (PCI, HIPAA, FFIEC) compliance across private and public clouds. Manual security compliance is slow, prone to human error, and represents over 50% of the cost of managing cloud applications. Determining how to automate cloud security compliance is critical...
Internet of @ThingsExpo, taking place June 7-9, 2016 at Javits Center, New York City and Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 18th International @CloudExpo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo New York Call for Papers is now open.
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York and Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty ...
We are rapidly moving to a brave new world of interconnected smart homes, cars, offices and factories known as the Internet of Things (IoT). Sensors and monitoring devices will touch every part of our lives. Let's take a closer look at the Internet of Things. The Internet of Things is a worldwide network of objects and devices connected to the Internet. They are electronics, sensors, software and more. These objects connect to the Internet and can be controlled remotely via apps and programs. ...
Today air travel is a minefield of delays, hassles and customer disappointment. Airlines struggle to revitalize the experience. GE and M2Mi will demonstrate practical examples of how IoT solutions are helping airlines bring back personalization, reduce trip time and improve reliability. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Dr. Sarah Cooper, M2Mi’s VP Business Development and Engineering, explored the IoT cloud-based platform technologies driving t...
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...
We all know that data growth is exploding and storage budgets are shrinking. Instead of showing you charts on about how much data there is, in his General Session at 17th Cloud Expo, Scott Cleland, Senior Director of Product Marketing at HGST, showed how to capture all of your data in one place. After you have your data under control, you can then analyze it in one place, saving time and resources.
As organizations shift towards IT-as-a-service models, the need for managing & protecting data residing across physical, virtual, and now cloud environments grows with it. CommVault can ensure protection & E-Discovery of your data - whether in a private cloud, a Service Provider delivered public cloud, or a hybrid cloud environment – across the heterogeneous enterprise.
The Internet of Things (IoT) is growing rapidly by extending current technologies, products and networks. By 2020, Cisco estimates there will be 50 billion connected devices. Gartner has forecast revenues of over $300 billion, just to IoT suppliers. Now is the time to figure out how you’ll make money – not just create innovative products. With hundreds of new products and companies jumping into the IoT fray every month, there’s no shortage of innovation. Despite this, McKinsey/VisionMobile data...
In recent years, at least 40% of companies using cloud applications have experienced data loss. One of the best prevention against cloud data loss is backing up your cloud data. In his General Session at 17th Cloud Expo, Sam McIntyre, Partner Enablement Specialist at eFolder, presented how organizations can use eFolder Cloudfinder to automate backups of cloud application data. He also demonstrated how easy it is to search and restore cloud application data using Cloudfinder.
Just over a week ago I received a long and loud sustained applause for a presentation I delivered at this year’s Cloud Expo in Santa Clara. I was extremely pleased with the turnout and had some very good conversations with many of the attendees. Over the next few days I had many more meaningful conversations and was not only happy with the results but also learned a few new things. Here is everything I learned in those three days distilled into three short points.
DevOps is about increasing efficiency, but nothing is more inefficient than building the same application twice. However, this is a routine occurrence with enterprise applications that need both a rich desktop web interface and strong mobile support. With recent technological advances from Isomorphic Software and others, rich desktop and tuned mobile experiences can now be created with a single codebase – without compromising functionality, performance or usability. In his session at DevOps Su...
As organizations realize the scope of the Internet of Things, gaining key insights from Big Data, through the use of advanced analytics, becomes crucial. However, IoT also creates the need for petabyte scale storage of data from millions of devices. A new type of Storage is required which seamlessly integrates robust data analytics with massive scale. These storage systems will act as “smart systems” provide in-place analytics that speed discovery and enable businesses to quickly derive meaningf...
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
In his General Session at 17th Cloud Expo, Bruce Swann, Senior Product Marketing Manager for Adobe Campaign, explored the key ingredients of cross-channel marketing in a digital world. Learn how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects).
The buzz continues for cloud, data analytics and the Internet of Things (IoT) and their collective impact across all industries. But a new conversation is emerging - how do companies use industry disruption and technology enablers to lead in markets undergoing change, uncertainty and ambiguity? Organizations of all sizes need to evolve and transform, often under massive pressure, as industry lines blur and merge and traditional business models are assaulted and turned upside down. In this new da...