Cloud Computing in 3-D

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Synopsis: …

Synopsis:
This webinar will feature a distinguished panel of
industry thought leaders, as they evaluate Cloud
Computing with respect to traditional and virtualized
enterprise setups and analyzes risk and challenges associated with adoption, In addition, we will examine key issues surrounding the cloud
discussion and highlight viable opportunities and
pitfalls to avoid.

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  • 1. Today’s webinar is brought to you byOutsourcing CenterToday’s webinar Upcoming webinarCloud Computing in 3-D Improved Business Performance: Evolving an FAO StrategySynopsis: Date & Time:This webinar will feature a distinguished panel of Tuesday, June 10, 2010industry thought leaders, as they evaluate Cloud 10:00 AM CDT/11:00 AM EDTComputing with respect to traditional and virtualized Speakers:enterprise setups and analyzes the risk and • Shelly Nichols, Director Finance Price Nichols Director, Finance,challenges associated with adoption, In addition, we Waterhouse Cooperswill examine key issues surrounding the cloud • Katrina Menzigian, VP- Research, Everest Groupdiscussion and highlight viable opportunities and • Vijay Damle, Head, Horizontals BPO, Tatapitfalls to avoid. Consultancy ServicesAbout Outsourcing CenterOutsourcing Center is the world’s most prominent internet portal for authoritative information on outsourcing.The Center’s mission is to build the industry by helping people understand how to create value throughoutsourcing.outsourcing We serve the outsourcing community through: Trusted and objective third-party perspective Database of over 81,000 opt-in subscribers Relevant media including editorials, research, whitepapers, and the annual Outsourcing Excellence AwardsFor more information, contact Peter Bowes at pbowes@everestgrp.com 1 Proprietary & Confidential. © 2010 Outsourcing Center
  • 2. Q&ATo ask a question during the Q&A session Click the question mark ( q (Q&A) button located on the floating tool bar in the bottom right ) g g of your screen. This will open the Q&A Panel Be sure to keep the default set to “send to a Panelist” Then, type your question in the rectangular field at the bottom of the Q&A box and click the send button to submit 2 Proprietary & Confidential. © 2010 Outsourcing Center
  • 3. IntroductionMarvin Newell Ross Tisnovsky Jim HarveyPrincipal VP- Research PartnerEverest Group Everest Group Hunton & Williams Ross.tisnovsky@everestgrp.com Jim.harvey@hunton.comMarvin.newell@everestgrp.com Simon Plant Paul Roehrig Director of Cloud Computing Director Center of Excellence Cognizant Capgemini Paul.roehrig@cognizant.com Paul roehrig@cognizant com Simon.plant@capgemini.com 3 Proprietary & Confidential. © 2010 Outsourcing Center
  • 4. Cloud Computing in 3-DMay 25, 2010
  • 5. Agenda and ParticipantsMay 25, 2010 10:00 AM CDT/11:00 AM EDTMODERATOR:Marvin NewellPrincipal, Everest Group AGENDA:PANELISTS:James Harvey 1. Cloud Computing Overview, Ross TisnovskyPartner and Co Chair –Global Co-Chair GlobalTechnology Outsourcing and Privacy 2. Legal Challenges, James HarveyGroup, Hunton & Williams 3. Delivery Challenges, Paul Roehrig, Simon PlantRoss Tisnovsky yVice President of Research, Everest 4. Panel Discussion, All 4 P l Di iGroupPaul RoehrigDirector,Director Cognizant Technology SolutionsSimon PlantCapgeminiDirector of Cloud Computing Center ofExcellence 5 Proprietary & Confidential. © 2010, Everest Global, Inc.
  • 6. Agenda Cloud Computing Overview Delivery Challenges Legal Challenges Panel Discussion 6 Proprietary & Confidential. © 2010, Everest Global, Inc.
  • 7. Cloud offerings exist for every layer of the IT stack ILLUSTRATIVEIT stack for CloudComputing Value proposition Supplier offerings Provide companies with a ADP PayForce is an Internet- Business process business service that based payroll solution that as a Service abstracts the underlying provides large organizations technical architecture from with hosted services the offering Deliver commonly used CRM solutions and services Software as a software to user desktops delivered from the cloud Service from the cloud; abstract hardware architecture Provide an environment for LongJump’s Business Platform as a developers to design, develop, Application Platform runs as a Service test, and deploy custom hosted service and enables IT applications for the cloud groups to build applications directly on the Web Provide IT infrastructure on Web service that provides Infrastructure as demand with provisions to resizable compute capacity in aS i Service scale up and scale out as the cloud (e g S3 – object (e.g., object- required based file storage, EC2 servers on demand) 7 Proprietary & Confidential. © 2010, Everest Global, Inc.
  • 8. Enterprises face multiple challenges in adopting cloudcomputingChallengeCh ll Description D i tiSedimentation of Enterprise application portfolios have applications of varying vintages,application portfolio not all of which are amenable to porting to the cloud Widely adopted standards do not exist for common cloud-relatedLack of standards activities (e.g., resource management protocols, security mechanisms)Security/business Cloud C Cl d Computing entails multiple security risks th t are unique t th ti t il lti l it i k that i to thecontinuity/legal risks business and delivery model (e.g., legal risks, security policy, regulatory compliance) High network bandwidth requirements and billing/ metering enginesSystem performance impose significant performance and availability overheadsIT management Traditional management systems focus on measuring technical metricscontrol alone; this focus has to shift from monitoring nodes/components to ; g p availability of a business service across physical, virtual, and cloud environmentsOrganizational Cloud Computing brings new value creation levers and new degree ofimpediment p transparency to the organization creating new change management challenges, especially when multiple BUs are present 8 Proprietary & Confidential. © 2010, Everest Global, Inc.
  • 9. Cloud brings significant incremental risk to aconventional data center set-up Illustrated on the next pageRisk Sources of risk Supplier has incentive to over-leverage Downtime hardware platform to achieve higher level p g of utilization and make better margins A cloud set-up brings in Supplier may use some customers as “test incremental risks to the buyers beds” for newer innovations that can due to lack of control of possibly impact system performance supplier’s assets, legal issues in data management, network management latency, and a supplier Back-up and restore in a multi-tenant client Business managing multiple clients with environment are inherently more complex disruption the same infrastructure Buyers are generally unaware of back-up practices and systems of cloud suppliers A cloud increases risks related and can’t control them directly to technology lock-in due to the In a scenario of capacity constraint, specific myriad of platforms (compute, customers may get lower priority for storage, middleware), tools continuity services based on their cloud fee (management, deployment, and usage testing), testing) software (virtualization (virtualization, business continuity, Location of fail safe and redundant data is communication, clustering) Regulatory non being used in delivering these generally not known to the buyers compliance services Ownership of the facility storing the data may not be clear Country-specific geopolitical risks may be exacerbated by the cloud’s flexibility 9 Proprietary & Confidential. © 2010, Everest Global, Inc.
  • 10. For instance, downtime has proved to be a materialrisk for companies moving their compute requirementto public cloud providers PUBLIC CLOUD EXAMPLESProvider Cloud service Downtime description Cloud hosting Power outage in Dallas data center Several thousand customers affected, , downtime of up to a few hours for some customers Rackspace to issue service credits totaling US$2.5-3.5 million Previous outages in June and July Cloud Sep. ‘09: Gmail outage for a few hours development Feb. ‘09: Gmail was down for 2.5 hours in Buyers must platform the U.S. and UK evaluate Aug. ‘08: Google mail and Google Apps additional went through 15 h t th h hours of d f downtime ti business disruption risk in Cloud Dec. 11, ‘09: Hackers compromise a site on moving to cloud- storage (S3) EC2 and use it as their own command-and- based offerings Servers in the control operation cloud (EC2) ( ) Dec. 9, ‘09: Power outage in Virginia data , g g Others center, lasting for 44 minutes Apr. ‘08: AWS went offline for a few hours Feb. ‘08: S3 service down for a few hours due to authentication overload Cloud Mar. 09: Mar ’09: Test release of Microsoft Azure an Azure, development enterprise-capable cloud platform, platform underwent a 22-hour outage 10 Proprietary & Confidential. © 2010, Everest Global, Inc.
  • 11. Agenda Cloud Computing Overview Delivery Challenges Legal Challenges Panel Discussion 11 Proprietary & Confidential. © 2010, Everest Global, Inc.
  • 12. The Cloud Computing Continuum Private Public Dedicated Multi-tenant Traditional DC Virtualized DC In-house Private Managed External Private External Private physical hosting utility compute Cloud Public Cloud Cloud Cloud Capgemini or Cli t H t d C i i Client Hosted Capgemini H t d C i i Hosted Partner Hosted P t H t d Capgemini Run Partner Run Capgemini Managed Apparent Risk Apparent Cost It’s all about the applications Together. Free your energies 12
  • 13. Key Delivery Challenges and Cloud Learnings Availability: Monitor the performance: • The provider – monitor and enforce, integrate as any other DC in your network • Your applications – monitoring the end‐to‐end performance and user experience pp g p p Security: Reference architectures • Don’t accept security out of the box control it! Don’t accept security out of the box, control it! • For key Cloud partners, develop several reference architecture templates for  deployment scenarios, have them tested and approved by your security team Data: Integration and synchronization • Cloud services shouldn’t be a silo. Changes made to applications need to be cascaded  bi‐directionally between the enterprise and Cloud‐hosted systems.  bi‐directionally between the enterprise and Cloud‐hosted systems Continuity and Portability • Data should always be replicated into a second storage pool for continuity  • Future models may focus around brokerages, trading hosting as a commodity Together. Free your energies 13
  • 14. Key themesCloud vs. “not cloud” is thewrong debateNext-Generation solutions arealready emergingDecision makers can take stepsnow to get value from cloud- cloudenabled solutions14 © 2010, Cognizant Technology Solutions.
  • 15. … But smart concerns hinder cloud adoption rates “Please indicate to what extent the following challenges will keep you from implementing or expanding your use of cloud/utility services over the next 12 to 18 months.” 1% Security 1% 7% 15% 32% 43% 1% Legacy applications 1% 10% 22% 33% 33% 2% C ompliance 1% 8% 26% 39% 24%IT culture and organization 1% 7% 17% 28% 24% 23% 2% SLA architectures 3% 9% 42% 31% 13% 4% Licensing approaches 2% 17% 40% 27% 10% 0% 25% 50% 75% 100% Dont know Not at all challenging = 1 2 3 4 Very challenging = 5 Base: 150 IT outsourcing decision-makers Source: “Next-Generation IT Services,” a commissioned study conducted by Forrester Consulting on behalf of CompuCom , y y g p Systems, September 2009 15 © 2010, Cognizant Technology Solutions.
  • 16. Decision-makers should act now to leverage value in a o o e e age a ue cloud-enabled world16 © 2010, Cognizant Technology Solutions.
  • 17. Embrace the disruption Cloud businesses challenging antique IT presumptions Google • One system admin per 20,000 servers Amazon • Storage @ $0.15 per GB/month (that’s the $0 15 most expensive for the first 50 TB/month) Salesforce.com Salesforce com •$1.3B revenue; 70K clients •15,000,000,000+ quarterly database transactions •99.99999% reliability; 300 ms transaction time © 2010, Cognizant Technology Solutions.
  • 18. Plan, clean house, and get smart about cloud-enabled solutions Plan for hybrid models » Nick Carr is mostly right about the IT y g becoming more of a utility, but…. IT ≠ Electricity » Implementing cloud services does not mean all other delivery methods get turned off Get your IT house in order » In 2010 30% of businesses will invest in ITSM tools to manage cloud environments (Yankee Group) » Implement good practice—now is the time Experiment with new solutions » Pilot and get smart about next-generation solutions © 2010, Cognizant Technology Solutions.
  • 19. Agenda Cloud Computing Overview Delivery Challenges Legal Challenges Panel Discussion 19 Proprietary & Confidential. © 2010, Everest Global, Inc.
  • 20. Cloud Computing Overview From a legal perspective, the cloud: – Makes some issues worse – Creates other issues – Raises lots of questions q – Does not eliminate any legal concerns 20
  • 21. Issues “raining” from the Cloud All legal data obligations continue to apply – HIPAA/GLB/Massachusetts/Nevada – PCI/DSS – EU Data Transfer Concerns – Privacy and Security Policies Import/Export issues License issues – Use/processor/location/virtualization Governing Law Issues 21
  • 22. Issues “raining” from the Cloud How are these issues addressed in the cloud? – Diligence – Information Security Program y g – Sarbanes Oxley Compliance/General audit rights – Security breach prevention/response/remediation – Business Continuity/Disaster Recovery 22
  • 23. Issues “raining” from the Cloud Stability of the cloud provider – Bankruptcy – Sale/Consolidation Insurance coverage for data loss/business interruption/security breach, et al, within the cloud Performance assurances – Service Levels? Service Level Credits? 23
  • 24. Issues “raining” from the Cloud Allocation of risk – Indemnities – Limitations of Liability Is termination even less useful than in a traditional sourcing arrangement? Statutes in the cloud? – Computer Fraud and Abuse Act – Electronic Communications Privacy Act – Microsoft’s Cloud Computing Advancement Act 24
  • 25. Agenda Cloud Computing Overview Delivery Challenges Legal Challenges Panel Discussion 25 Proprietary & Confidential. © 2010, Everest Global, Inc.
  • 26. Questions1. Are enterprise cloud services “real,” or is it still mostly hype by service providers? Is there real business value to be gained?2.2 What is the most negotiated legal point in cloud computing arrangements?3. What is the best way to address a common business continuity concern in th Cloud? i the Cl d?4. Is there a way for a buyer to regain or maintain sufficient control of the IT or business processes once they are transitioned to the Cloud?5. Can I, as a buyer, afford ignoring Cloud Computing altogether?6.6 What are the ne t steps for me? Are there an “no regret” mo es I can next any moves do now? 26 Proprietary & Confidential. © 2010, Everest Global, Inc.
  • 27. Questions1. Are enterprise cloud services “real,” or is it still mostly hype by service providers? Is there real business value to be gained?2.2 What is the most negotiated legal point in cloud computing arrangements?3. What is the best way to address a common business continuity concern in th Cloud? i the Cl d?4. Is there a way for a buyer to regain or maintain sufficient control of the IT or business processes once they are transitioned to the Cloud?5. Can I, as a buyer, afford ignoring Cloud Computing altogether?6.6 What are the ne t steps for me? Are there an “no regret” mo es I can next any moves do now? 27 Proprietary & Confidential. © 2010, Everest Global, Inc.
  • 28. Questions1. Are enterprise cloud services “real,” or is it still mostly hype by service providers? Is there real business value to be gained?2.2 What is the most negotiated legal point in cloud computing arrangements?3. What is the best way to address a common business continuity concern in th Cloud? i the Cl d?4. Is there a way for a buyer to regain or maintain sufficient control of the IT or business processes once they are transitioned to the Cloud?5. Can I, as a buyer, afford ignoring Cloud Computing altogether?6.6 What are the ne t steps for me? Are there an “no regret” mo es I can next any moves do now? 28 Proprietary & Confidential. © 2010, Everest Global, Inc.
  • 29. Questions1. Are enterprise cloud services “real,” or is it still mostly hype by service providers? Is there real business value to be gained?2.2 What is the most negotiated legal point in cloud computing arrangements?3. What is the best way to address a common business continuity concern in th Cloud? i the Cl d?4. Is there a way for a buyer to regain or maintain sufficient control of the IT or business processes once they are transitioned to the Cloud?5. Can I, as a buyer, afford ignoring Cloud Computing altogether?6.6 What are the ne t steps for me? Are there an “no regret” mo es I can next any moves do now? 29 Proprietary & Confidential. © 2010, Everest Global, Inc.
  • 30. Questions1. Are enterprise cloud services “real,” or is it still mostly hype by service providers? Is there real business value to be gained?2.2 What is the most negotiated legal point in cloud computing arrangements?3. What is the best way to address a common business continuity concern in th Cloud? i the Cl d?4. Is there a way for a buyer to regain or maintain sufficient control of the IT or business processes once they are transitioned to the Cloud?5. Can I, as a buyer, afford ignoring Cloud Computing altogether?6.6 What are the ne t steps for me? Are there an “no regret” mo es I can next any moves do now? 30 Proprietary & Confidential. © 2010, Everest Global, Inc.
  • 31. Questions1. Are enterprise cloud services “real,” or is it still mostly hype by service providers? Is there real business value to be gained?2.2 What is the most negotiated legal point in cloud computing arrangements?3. What is the best way to address a common business continuity concern in th Cloud? i the Cl d?4. Is there a way for a buyer to regain or maintain sufficient control of the IT or business processes once they are transitioned to the Cloud?5. Can I, as a buyer, afford ignoring Cloud Computing altogether?6.6 What are the ne t steps for me? Are there an “no regret” mo es I can next any moves do now? 31 Proprietary & Confidential. © 2010, Everest Global, Inc.
  • 32. Q&A Attendees will receive an email with a link to download today’s webinar presentation. To access a recorded audio version of this webinar, please contact Mark Williamson, mark.williamson@everestgrp.com For advice or research on cloud computing, please contact Everest: Marvin Newell, marvin.newell@everestgrp.com Ross Tisnovsky, ross.tisnovsky@everestgrp.com For background information on Everest, please visit: www.everestgrp.com www.everestresearchinstitute.com Thank you for attending todayTo ask a question during the Q&A session Click th Cli k the question mark (Q&A) button located on the floating tool bar in the bottom right of your ti k b tt l t d th fl ti t l b i th b tt i ht f screen. This will open the Q&A Panel Be sure to keep the default set to “send to a Panelist” Then, type your question in the rectangular field at the bottom of the Q&A box and click the send button to submit 32 Proprietary & Confidential. © 2010 Outsourcing Center