Consulting

Taking Terra Firma to the Cloud

IT Recommendations for

Terra Firma Medical Systems

C o n s u l t i n g

Efesa Origbo | Hariprasad Tilakan | Sharon Dsouza

CMIS Case Competition

October 2010

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Agenda

Background
Background Problem Statement Trends Analysis IT at Terra Firma Challenges/Opportunities

Analysis

Recommendations
High-Level Roadmap Weighted Score Model Systems Architecture Benefits
Assumptions Implementation Methodology Services Delivery Model Resources Financial Analysis Project Timeline Risk/Mitigation Plan
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Implementation

Conclusion

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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 Firmas 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

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

Terra introduced a line of filmless dental and veterinary X-ray systems Growth opportunity for Terra Firma
Filmless Dental

Terra Firma Veterinary Xray systems

Independent Distributors

Revenue
40000000 35000000 30000000 25000000 20000000 15000000 10000000 50000000 0 2007 2008 2009

Revenue

Rapid Growth

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IT Investments at Terra Firma

Funding Innovation 20% Infrastructure Maintenance 80%

Funding Innovation 20% New Funds for innovation 40%

Infrastructure Maintenance 40%

Current Breakdown

Optimal Breakdown

80% IT budget into maintenance 20% IT budget into innovation More investment into IT innovation
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IT Infrastructure at Terra Firma

IT issues
Network Failure Lack of effective technology management policies

IT Infrastructure
10%

Additional problems

Missing log files

Corrupted database tables Inconsistent data

90%

Standardized Disparate
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Opportunity/Approach
Approach Challenges/Opportunities
Medical regulations may lead to lower margins Underinvestment into IT

Aggressively use technology for vertical integration More investment into innovation Consolidate and standardize IT infrastructure Enforce IT governance policies

Disparate systems

Lack of technology management policies

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RECOMMENDATIONS

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High Level Roadmap

Consolidate

Virtualize

Automate

Optimize

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Solution Framework
Internal SOA External Web Services
Self contained applications

Applications

Supports communications between services Defines how programs interact to perform a unit of work

Perform functions, from simple requests to complicated business processes

Private Cloud Infrastructure

Proprietary computing architecture Provides hosted services to a limited number of people

Public Cloud
Standard cloud computing model Service provider makes resources available

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What to put where?

Security
Service Management Risk Exposure Compliance

C r i t e r i a

Governance

Criticality

Business Impact Business Outlook

M i g r a t i o n

Elasticity

Workload Storage Utilization

Technology

Architecture Infrastructure Quality of Service

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Migration Framework
Internal External
Manufacturing Apps BI Apps Email/ Calendar Apps

SOA Applications
ERP Apps
SCM Apps

Web Services

Compliance Apps HCM Apps

CRM Apps

Collaboration Apps

Hardware Engineering Apps

Software Engineering Apps

Videoconferencing Apps

Private Cloud Infrastructure

ERP Hardware Engineering Software Engineering Compliance SCM

PC Support Videoconferencing Collaboration

Public Cloud

BI
HCM

Manufacturing CRM

Email/ Calendar

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Systems Architecture
Vendor Business Analyst Manager

Software Engineering

Hardware Engineering

Portals and Rich Internet Applications Centralized Policy and Services Management Services Registry and Repository Enterprise Service Bus Service Runtime Engine

Hybrid

Service
Services

Virtualization
Services Services

Layer
Microsoft Content

Services

Beowulf

Streaming

CRM

JDE

Private

Mail

Public

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System Characteristics/Benefits
Benefits
Aligns technology with key business process Improved cost management Rapid response to business changes Reduced errors and outages

Characteristics
Service-centric environment

Standardized, shared services Scalable and elastic

Automated Self service, pay-per-use

Transparency

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

Business Process Modeling

Consolidation

Streamline infrastructure Eliminate excess capacity

Virtualization

Implement Service Virtualization Layer Develop applications as services

Move relevant applications to Public Cloud Public Cloud Migration Move relevant applications to Private Cloud

Private Cloud Migration

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Services Delivery Process

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Resources

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Project Timeline
6 Years

Business Process Modeling

6 Months

Consolidation
1.5 Years

Virtualization
4 Years

Public Cloud

6 Months

Private Cloud Short Term Medium Term

3 years

Long Term

Time
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Change Management
Stakeholder Analysis 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]

8,000,000.00 7,000,000.00 6,000,000.00 5,000,000.00 4,000,000.00 3,000,000.00 2,000,000.00 Savings Net Cumulative Investment

1,000,000.00
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8

Payback Period

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Risks/Mitigation
Risks Mitigation
Implement security policies and evaluate SLAs Adopt a phased implementation approach Perform detailed assessments Implement compliance standards

Application/Infrastructure Security Disruption of business continuity

Readiness Geopolitical issues

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Service Level Agreement - Key Criteria

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
Terra Firma IT Roadmap

Consolidate

Virtualize

Optimized

Automate

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Thank you!

C o n s u l t i n g

Efesa Origbo | Hariprasad Tilakan | Sharon Dsouza

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APPENDIX

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Appendix (A)

Weighted Score Model

Application Criticality Score 25 PC Support 20 Email/Calendar 20 Video Conferencing 20 Collaboration 20 ERP 90 SCM 90 HCM 90 CRM 50 BI 50 Hardware Engineering 90 Software Engineering 80 Manufacturing 50 Compliance 90 Technology 20 70 90 80 80 80 70 80 60 60 90 70 60 70 Governance 30 40 20 20 50 90 80 90 30 70 90 20 70 80 Elasticity 25 50 20 20 40 90 80 90 20 60 90 30 60 80 Total 100 43.5 33 32 46 88 80.5 88 41 60.5 90 47.5 60.5 80.5 Cloud Hybrid Public Public Hybrid Private Private Private Hybrid Hybrid Private Hybrid Hybrid Private

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Appendix (B)

Service Delivery Business Process Diagram

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Appendix (C)

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Appendix (D)

PAYBACK ANALYSIS

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Appendix (E)

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Appendix (F)
Mitigation
Security Audits Open Source Vendors Larger/Certified Vendors

Risk Assessment
Physical Security Vendor Lock-In Vendor Viability

Vendor Risks

Data Risks
Data Loss Data Security Data Location

Mitigation
Backup and Recovery Plan VPNS, SSL, IDS Compliant with Global/Local Regulations

Software/Application Risks
Licensing Integration

Mitigation
Clear Billing/Licensing model Better Integration Testing

Infrastructure Risks
Natural Disasters Resource Overload

Mitigation
Mirrored Data Center Cloud Bursting/Balancing
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Appendix (G)

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Appendix (H)

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Appendix(J)
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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