Cloud strategy briefing 101


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This is a 2 hour strategy workshop developed by Predrag Mitrovic ( and

The workshop is intended for CIOs and roles close to business strategy formulation around technology. Feel free to use the material and develop it further, as long as you give me access to the updated materials.

Any questions can be directed to my e-mail: predrag[at]

I hope that you enjoy this material and find it useful.

/Predrag a.k.a Cloud Advisor

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Cloud strategy briefing 101

  1. 1. Cloud Strategy Briefing 101 This work is licensed under the Creative Commons Attribution-ShareAlike 3.0 Unported License. To view a copy of this license, visit or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. Attribute to: Predrag Mitrovic at
  2. 2. Cloud Strategy Briefing 101 Mastering strategy development, formulation and execution
  3. 3. <ul><li>20+ years in the IT industry </li></ul><ul><li>EDP technician specializing in Unix and Novell systems </li></ul><ul><li>Test and Chief Editor; Nätverk & Kommunikation (IDG) </li></ul><ul><li>Own consulting firm </li></ul><ul><li>Nordic Consulting Manager, Novell </li></ul><ul><li>CSA/NTO, Microsoft </li></ul><ul><li>General Manager, LabCenter </li></ul><ul><li>Now manages MyNethouse </li></ul><ul><li>Co-founder & board member Cloud Sweden </li></ul><ul><li>Consultant, author, lecturer and inspirer. </li></ul>Predrag Mitrovic [email_address] Cloud Competence With Confidence
  4. 4. Context and objectives of this WS <ul><li>Cloud Computing ”crash course” </li></ul><ul><li>Promises of the Cloud Revolution </li></ul><ul><ul><li>Lower costs </li></ul></ul><ul><ul><li>Faster time to market/application </li></ul></ul><ul><ul><li>Driving value </li></ul></ul><ul><li>Setting realistic expectations – framing the good, bad and ugly </li></ul><ul><li>End-customer focus: Suitable adopters and where to benefit </li></ul>Cloud Competence With Confidence
  5. 5. After this workshop You will… <ul><li>Understand why to develop an overall Cloud Strategy on solid business cases </li></ul><ul><li>Have a portfolio of questions to ask prospective vendors </li></ul><ul><li>Not buy Clod for the sake of Cloud </li></ul><ul><li>Find the ”what´s in it for me” propositions </li></ul>Cloud Competence With Confidence
  6. 6. But first! Cloud Competence With Confidence
  7. 7. Cloud Competence With Confidence
  8. 8. And now! Cloud Competence With Confidence
  9. 9. WHAT IS CLOUD COMPUTING? Cloud Competence With Confidence
  10. 10. NIST Definition <ul><li>NIST Definition of Cloud Computing* </li></ul><ul><li>“ Cloud computing is a model for enabling convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction. This cloud model promotes availability and is composed of five essential characteristics, three service models , and four deployment models . ” </li></ul><ul><li>Note: Cloud software takes full advantage of the cloud paradigm by being service oriented with a focus on statelessness, low coupling, modularity, and semantic interoperability. </li></ul>Cloud Competence With Confidence * National Institute of Standards and Technology (NIST) : Cloud Computing
  11. 11. NIST Definition (cont.) <ul><li>Essential characteristics of Cloud Computing </li></ul><ul><ul><li>On-demand self-service. A consumer can unilaterally provision computing capabilities, such as server time and network storage, as needed automatically without requiring human interaction with each service’s provider. </li></ul></ul><ul><ul><li>Broad network access. Capabilities are available over the network and accessed through standard mechanisms that promote use by heterogeneous thin or thick client platforms (e.g., mobile phones, laptops, and PDAs). </li></ul></ul><ul><ul><li>Resource pooling. The provider’s computing resources are pooled to serve multiple consumers using a multi-tenant model, with different physical and virtual resources dynamically assigned and reassigned according to consumer demand. There is a sense of location independence in that the customer generally has no control or knowledge over the exact location of the provided resources but may be able to specify location at a higher level of abstraction (e.g., country, state, or datacenter). Examples of resources include storage, processing, memory, network bandwidth, and virtual machines. </li></ul></ul><ul><ul><li>Rapid elasticity. Capabilities can be rapidly and elastically provisioned, in some cases automatically, to quickly scale out and rapidly released to quickly scale in. To the consumer, the capabilities available for provisioning often appear to be unlimited and can be purchased in any quantity at any time. </li></ul></ul><ul><ul><li>Measured Service. Cloud systems automatically control and optimize resource use by leveraging a metering capability at some level of abstraction appropriate to the type of service (e.g., storage, processing, bandwidth, and active user accounts). Resource usage can be monitored, controlled, and reported providing transparency for both the provider and consumer of the utilized service. </li></ul></ul>Cloud Competence With Confidence
  12. 12. NIST Definition (cont.) <ul><li>Service Models: </li></ul><ul><ul><li>(Cloud) Software as a Service (SaaS). The capability provided to the consumer is to use the provider’s applications running on a cloud infrastructure. The applications are accessible from various client devices through a thin client interface such as a web browser (e.g., web-based email). The consumer does not manage or control the underlying cloud infrastructure including network, servers, operating systems, storage, or even individual application capabilities, with the possible exception of limited user-specific application configuration settings. </li></ul></ul><ul><ul><li>(Cloud) Platform as a Service (PaaS) . The capability provided to the consumer is to deploy onto the cloud infrastructure consumer-created or acquired applications created using programming languages and tools supported by the provider. The consumer does not manage or control the underlying cloud infrastructure including network, servers, operating systems, or storage, but has control over the deployed applications and possibly application hosting environment configurations. </li></ul></ul><ul><ul><li>(Cloud) Infrastructure as a Service (IaaS). The capability provided to the consumer is to provision processing, storage, networks, and other fundamental computing resources where the consumer is able to deploy and run arbitrary software, which can include operating systems and applications. The consumer does not manage or control the underlying cloud infrastructure but has control over operating systems, storage, deployed applications, and possibly limited control of select networking components (e.g., host firewalls). </li></ul></ul>Cloud Competence With Confidence
  13. 13. NIST Definition (cont.) <ul><li>Deployment Models: </li></ul><ul><ul><li>Private cloud. The cloud infrastructure is operated solely for an organization. It may be managed by the organization or a third party and may exist on premise or off premise. </li></ul></ul><ul><ul><li>Community cloud. The cloud infrastructure is shared by several organizations and supports a specific community that has shared concerns (e.g., mission, security requirements, policy, and compliance considerations). It may be managed by the organizations or a third party and may exist on premise or off premise. </li></ul></ul><ul><ul><li>Public cloud. The cloud infrastructure is made available to the general public or a large industry group and is owned by an organization selling cloud services. </li></ul></ul><ul><ul><li>Hybrid cloud . The cloud infrastructure is a composition of two or more clouds (private, community, or public) that remain unique entities but are bound together by standardized or proprietary technology that enables data and application portability (e.g., cloud bursting for load-balancing between clouds). </li></ul></ul>Cloud Competence With Confidence
  14. 14. Cloud Competence With Confidence Visualized Cloud Definition from NIST Deployment Models Service Models Essential Characteristics Public Private Hybrid Community Software as a Service (SaaS) Platform as a Service (PaaS) Infrastructure as a Service (IaaS) On-Demand Self Service Broad Network Access Resource Pooling Rapid Elasticity Measured Service
  15. 15. Cloud Competence With Confidence Traditional IT vs. Cloud Computing Traditional IT Dedicated HW & SW procurement “the old way” New services added manually Semi-automated repair of system failure Months Incremental CapEx purchases Shared (multi-tenancy) Self service Scale on-demand Automated recovery due to integration / interoperable Minutes Pay per use Consumption Ease of Use Scalability Availability Provisioning Cost Cloud Computing
  16. 16. The cloud Promise <ul><li>No upfront investments or capital expenditures </li></ul><ul><li>Immediate access to needed capacity & resources </li></ul><ul><li>Low IT barriers to innovation </li></ul><ul><li>Business agility booster </li></ul><ul><li>Business needs driving demand </li></ul><ul><li>Find the scaling balance: </li></ul><ul><ul><li>No lost possibilites </li></ul></ul><ul><ul><li>No over-capacity </li></ul></ul><ul><li>Scale up or down </li></ul><ul><li>Pay-per-use </li></ul><ul><li>Opex vs Capex </li></ul>Cloud Competence With Confidence
  17. 17. The CIO Dilemma Cloud Competence With Confidence <ul><li>SW upgrade = new license </li></ul><ul><li>Users always complaining </li></ul><ul><li>SaaS = better + cheaper </li></ul><ul><li>Employees use cloud services for </li></ul><ul><li>Private purposes </li></ul><ul><li>Need to cut costs </li></ul><ul><li>Must deliver business value </li></ul><ul><li>IT to expensive </li></ul><ul><li>Is internal IT secure? </li></ul><ul><li>IT moves to slow </li></ul><ul><li>My job is at stake </li></ul><ul><li>I´m tired of #@% SW licenses </li></ul><ul><li>I must manage costs </li></ul><ul><li>I must justify investments </li></ul><ul><li>How can I get CEO attention? </li></ul><ul><li>I am cutting costs </li></ul><ul><li>I am on top of trends & hypes </li></ul><ul><li>We can´t do that </li></ul><ul><li>I am innovating here </li></ul><ul><li>I have full control </li></ul>
  18. 18. CIO Pains & Gains Cloud Competence With Confidence <ul><li>Undermanned & overworked IT staff </li></ul><ul><li>Insufficient (shrinking) IT budget </li></ul><ul><li>Hacker attacks </li></ul><ul><li>No/low influence on business </li></ul><ul><li>Downtime </li></ul><ul><li>Rapid technological changes </li></ul><ul><li>Growing need for consultants </li></ul><ul><li>Invest budget in high business value projects </li></ul><ul><li>Align IT & business </li></ul><ul><li>No SW licenses to manage </li></ul><ul><li>IT seen as critical for success </li></ul><ul><li>Secure IT environment </li></ul><ul><li>Sufficient time to plan mission-critical projects </li></ul><ul><li>Happy users </li></ul>
  19. 19. Integration & application Core capabilities Core capabilities Integration & application Infrastructure & operations Driving force Cloud Competence With Confidence Infrastructure & operations
  20. 20. Scaling (”the old way”) ” Traditional IT” Business Needs Lost opportunities Under-utilized capacity Cloud Competence With Confidence
  21. 21. Scaling (”the cloud way”) ” Cloud delivered IT” Business Needs Cloud Competence With Confidence
  22. 22. Traditionell IT - kostnadsbild Year 1 Investment Year 2 Year 3 Cost: Investment HW/SW + implementation ROI: Effective IT-process + organizational usage (core capabilities) Scaling vs costs (”old way”) Cloud Competence With Confidence
  23. 23. IT-leverans via molnet Year 1 Year 2 Year 3 ROI: Natural effect from higher usage Scaling vs costs (”cloud way”) Cloud Competence With Confidence Cost: Pay for what you use
  24. 24. Priorities for adoption <ul><li>Financial: </li></ul><ul><li>Cost effectiveness </li></ul><ul><li>Clear ROI </li></ul><ul><li>TCO vs own Data Center </li></ul><ul><li>Operational: </li></ul><ul><li>Manage flexibility/agility </li></ul><ul><li>Cross-company innovation board </li></ul><ul><li>Roles </li></ul><ul><li>Technical: </li></ul><ul><li>Real security concerns? </li></ul><ul><li>Data integrity </li></ul><ul><li>Regulatory compliance </li></ul><ul><li>Reliability of cloud workloads </li></ul><ul><li>Organizational: </li></ul><ul><li>Prepared for the cloud-centric world? </li></ul><ul><li>Role of demand organization </li></ul><ul><li>Role of IT organization </li></ul>Cloud Competence With Confidence 1 2 3 4
  25. 25. THE Model! Cloud Competence With Confidence
  26. 26. Vision, visualization, understanding the terrain, formulation Controlled implementation Hype, case, best practices, besserwissers Case studie, best practice, lessons learned Cloud Competence With Confidence Strategic Cloud Model THE CLOUD Leadership, change management, decision criteria, evaluations Our Workshop
  27. 27. Cloud Competence With Confidence Consolidated Data Center <ul><ul><li>Private Cloud </li></ul></ul><ul><ul><ul><li>Policies </li></ul></ul></ul><ul><ul><ul><li>Security </li></ul></ul></ul><ul><ul><ul><li>Interoperability </li></ul></ul></ul><ul><ul><ul><li>Standards </li></ul></ul></ul>Public/Hybrid Cloud
  28. 28. Cloud Competence With Confidence
  29. 29. Cloud Competence With Confidence
  30. 30. Part 1 Cloud Competence With Confidence HW SW Consultants Support Maintenance Operational overhead Storage Transfer Energy Communication <ul><li>Agility/flexibility </li></ul><ul><li>Availability </li></ul><ul><li>Technology management </li></ul><ul><ul><li>Test/development/integration/maintenance </li></ul></ul><ul><ul><li>License utilizaton </li></ul></ul><ul><li>Process management </li></ul><ul><ul><li>Overhead </li></ul></ul><ul><ul><li>TTM/TTA </li></ul></ul>
  31. 31. Part 2 Cloud Competence With Confidence
  32. 32. Part 3 Cloud Competence With Confidence Operational Pragmatic Value Creator Cost Cutter Business Leader Cooperation Inspiring Technology Leader Drive innovation Maximize ROI Move the business forward Visionary – Share insights
  33. 33. Part 4 Value Creation Value Creation Value Creation Bussines Owners Vendors Expert Commty Cloud Maestro <ul><li>Cloud Computing Vision / Mission </li></ul><ul><li>Inspiration </li></ul><ul><li>Market Research / Use Cases </li></ul><ul><li>Guidelines </li></ul><ul><li>Enterprise Architecture </li></ul><ul><li>Procurement Support </li></ul><ul><li>Business needs </li></ul><ul><li>Requirements </li></ul><ul><li>Interests & Feedback </li></ul><ul><li>Standards Requirements </li></ul><ul><li>Security Processes </li></ul><ul><li>Procurement Approaches </li></ul><ul><li>Best Practices </li></ul><ul><li>Operations </li></ul><ul><li>Performance management </li></ul><ul><li>Seek Direction and Guidance </li></ul><ul><li>Engagement </li></ul><ul><li>Sustainable relations </li></ul><ul><li>Compliant Services and Offerings </li></ul><ul><li>Input to Standards </li></ul><ul><li>Collaboration on Developing Standards & Best Practices </li></ul>Security Standards Operations Performance <ul><li>RFI/RFPs </li></ul><ul><li>Definitions </li></ul><ul><li>Security Requirements </li></ul><ul><li>Standards Requirements </li></ul><ul><li>SLAs </li></ul>Workshops Consulting Webinars Seminars Analyst services Labs Articles
  34. 34. Cloud Competence With Confidence
  35. 35. Cloud Competence With Confidence Usage Metering Provisioning services Authentication Authorization Logging Reporting Incident management Data Enterprise Appl. (UI + Logic)
  36. 36. Application cloud feasability Cloud Competence With Confidence Clear Business Benefit Unique Capability? Impediments to outsourcing Impediments to Cloud Business Driver Cloud compatible Will the solution be a platform IT Business Process Insulation IT based different-iation Custom App, HW, SW Custom HW, SW Yes No Based on Open Group
  37. 37. Compliance Cloud Competence With Confidence
  38. 38. Requirement fulfillments Cloud Competence With Confidence
  39. 39. Risk management Cloud Competence With Confidence
  40. 40. Business continuity Cloud Competence With Confidence
  41. 41. Good sources for information <ul><li>Cloud Sweden (LinkedIn: search for Cloud Sweden) </li></ul><ul><li>Cloud Advisor – (Swedish only, sorry) </li></ul><ul><li>CloudTweaks – </li></ul><ul><li>NIST – </li></ul><ul><li>CloudCamp – </li></ul><ul><li>Cloud Security Alliance – </li></ul><ul><li>Open Cloud Manifesto – </li></ul>Cloud Competence With Confidence
  42. 42. Good sources for information (cont.) <ul><li>Cloud Standards – </li></ul><ul><li>The Open Group - </li></ul><ul><li>IDG Cloud Magazine – </li></ul><ul><li>Amazon, Microsoft, Google, IBM, Oracle, Salesforce, RackSpace and all the others… </li></ul>Cloud Competence With Confidence
  43. 43. <ul><li>Predrag Mitrovic </li></ul><ul><li>[email_address] </li></ul><ul><li>+46 (0)709 – 200 350 </li></ul><ul><li>Skype/Twitter: write4joy </li></ul>Thank You for attending! Cloud Competence With Confidence
  44. 44. Cloud Strategy Briefing 101 This work is licensed under the Creative Commons Attribution-ShareAlike 3.0 Unported License. To view a copy of this license, visit or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. Attribute to: Predrag Mitrovic at
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