Presentatie John Hermans Cloud master class Nyenrode en RTL Z 2011

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RTL Z en Nyenrode organiseerden 27 juni de masterclass Cloud Computing. In samenwerking met experts werden in relatief kort tijdsbestek vragen rondom het investeren in de cloud en de kansen van de cloud beantwoord. Het nieuwe werken, businessmodellen van de toekomst, maar ook vragen rondom privacy, beveiliging en compliance kwamen tijdens deze masterclass aan bod.

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Presentatie John Hermans Cloud master class Nyenrode en RTL Z 2011

  1. 1. Orchestrating theNew ParadigmMaster classCloud ComputingUtrecht – 27 Juni 2011John Hermans
  2. 2. Today’s Cloud Marketplace Perspectives Gartner Savvis Gartner estimates that global spending 70 percent of IT decision makers on cloud services will hit $68 billion are using or planning to use this year, a gain of 16% over 2009, cloud computing in their own which is more than triple the expected enterprises within 24 months. growth rate for total IT spending. Windows IT Pro Magazine, CFO Magazine, December 2010 February 1, 2011 China China is going to see a cloud computing Microsoft market worth over RMB60 billion [~$9.1 ―For the cloud we are all in!‖ – Steve Billion USD] in 2012. Ballmer (CEO) News Track Daily, January 20, 2011 March, 2010© 2011 KPMG Advisory N.V., the Dutch member firm of KPMG International Cooperative (―KPMG International‖), a Swiss entity. All rights reserved. 1KPMG and the KPMG logo are registered trademarks of KPMG International Cooperative (―KPMG International‖), a Swiss entity.
  3. 3. Understanding the Cloud Environment Cloud Internet-based data Internet-based access to low cost Environment = access & exchange + computing & applications Cloud Environment On-Demand Internet Pooled Elastic Usage- Based Self-Service Accessibility Resources Characteristics: Capacity Billing Cloud Service Models Cloud Deployment Models Software Platform Infrastructure Private Operated for a single organization as a Service as a Service as a Service “SaaS” “PaaS” “IaaS” Available to the general public or large industry Business operations Deploy customer- Rent storage, Public group, owned by an organization selling cloud over a network created applications to processing, network services a cloud and other computing resources Shared by several organizations, supporting a Community Google Docs, MS Azure, Amazon Mozy, Rackspace specific community Salesforce.com Web Services© 2011 KPMG Advisory N.V., the Dutch member firm of KPMG International Cooperative (―KPMG International‖), a Swiss entity. All rights reserved. 2KPMG and the KPMG logo are registered trademarks of KPMG International Cooperative (―KPMG International‖), a Swiss entity.
  4. 4. Discussion Topics 1. Cloud: A Game Changer 2. Cloud‘s Impact on Business 3. Cloud‘s Impact on IT 4. Impact of Cloud on Business Operations Appendix: Understanding the Cloud Environment
  5. 5. Cloud: A Game Changer Looking for BusinessLeadershipCloud virtualizes IT—but it transformsbusiness. The Cloud conversation usually starts with IT. The problem is, it often ends there, too. It‘s easy to focus on how moving to the Cloud helps a business cut costs, but it also creates opportunities. Cloud is in fact one of the most disruptive forces in business in 20 years. The question is, how can you transform your business to take advantage of this fundamental disruption?© 2011 KPMG Advisory N.V., the Dutch member firm of KPMG International Cooperative (―KPMG International‖), a Swissentity. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International Cooperative (―KPMG Impact of Cloud on IT 4International‖), a Swiss entity.
  6. 6. Not Just Cheaper, Better, Faster— Cloud Enables Innovation The Cloud has already changed how you work and with whom you compete.  By virtualizing processes, the Cloud creates new opportunities and business models.  By shattering barriers to entry, the Cloud creates new competition. It gives ―two- guys-in- a-garage‖ the scalability and infrastructure access of an established player. Being in the Cloud is quickly shifting from a competitive advantage to an operational necessity.© 2011 KPMG Advisory N.V., the Dutch member firm of KPMG International Cooperative (―KPMG International‖), a Swissentity. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International Cooperative (―KPMG Impact of Cloud on IT 5International‖), a Swiss entity.
  7. 7. Too Late to WaitLeaders are using the Cloud toimprove business performanceand increase shareholder value,not just cut costs.How can you join them?The Right CEO Questions to Ask: How can Cloud help solve business issues? Where should you start your journey towards Cloud? Which Cloud models have the greatest potential for improving your business? What are the inhibitors for Cloud and how do you mitigate risks?© 2011 KPMG Advisory N.V., the Dutch member firm of KPMG International Cooperative (―KPMG International‖), a Swissentity. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International Cooperative (―KPMG Impact of Cloud on IT 6International‖), a Swiss entity.
  8. 8. Discussion Topics 1. Cloud: A Game Changer 2. Cloud‘s Impact on Business 3. Cloud‘s Impact on IT 4. Impact of Cloud on Business Operations Appendix: Understanding the Cloud Environment
  9. 9. Cloud Impact on Business Cloud Internet-based data access & Internet-based access to low cost computing & Environment = exchange + applications Virtualized TechnologyVirtualized Processes Virtualized Organization Opportunities to Leverage Commoditized Enterprise Applications and Economies of Scale Virtualized Business Models to drive… Increased Agility Greater Flexibility Faster Results Reduced Cost © 2011 KPMG Advisory N.V., the Dutch member firm of KPMG International Cooperative (―KPMG International‖), a Swiss entity. All rights reserved. 8 KPMG and the KPMG logo are registered trademarks of KPMG International Cooperative (―KPMG International‖), a Swiss entity.
  10. 10. Business Benefits of CloudCloud provides businesses increased agility and greater flexibility, yielding faster results at a reduced cost. Increased Agility Rapidly respond to changing market conditions or needs Greater Flexibility More options in combining people, process, and technology to deliver economic value Faster Results Faster time-to-value in achieving results that support more iterative solution design and delivery strategies Reduced Cost Lower total cost to deploy new solutions or to achieve new capability levels© 2011 KPMG Advisory N.V., the Dutch member firm of KPMG International Cooperative (―KPMG International‖), aSwiss entity. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG InternationalCooperative (―KPMG International‖), a Swiss entity.
  11. 11. Increased AgilityCloud provides a business with increased agility to rapidly respond to changing market conditions or needs.Business Responsiveness Respond faster to gaps or deficiencies in capabilities Increase speed in rolling out new offerings internally Speed business innovation to the marketplaceIT Resource Availability Reduce dependence on IT function to deliver new capabilities Rapidly provision computer & engineering resources Scale to support the needs of business innovation© 2011 KPMG Advisory N.V., the Dutch member firm of KPMG International Cooperative (―KPMG International‖), aSwiss entity. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG InternationalCooperative (―KPMG International‖), a Swiss entity.
  12. 12. Greater FlexibilityCloud provides unprecedented flexibility and more options in combining people, process, and technology to delivery economic value.People Makes virtual resources available internally and externally Offers ability to combine best-in-class Technology service providers (logistics, payroll, engineering, etc.)Process Provides access to providers of leading practice process and service Unprecedented Flexibility to Allows companies to leverage the Fill Gaps process improvements of a larger user communityTechnology Enables organization to source an array of IT capabilities (SaaS, IaaS, PaaS) People Process Offers IT resources on demand© 2011 KPMG Advisory N.V., the Dutch member firm of KPMG International Cooperative (―KPMG International‖), aSwiss entity. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG InternationalCooperative (―KPMG International‖), a Swiss entity.
  13. 13. Faster ResultsOur experience demonstrates that Cloud provides faster time-to-value, supporting more iterative solution deployments Allows organizations to be more Traditional Solution Deployment experimental in delivering new ROI capabilities without significant 18 to 36 Months investment of time and money Go Live Allows technology deployments to be more iterative, delivering Scope Design Test Accept incremental value to the organization faster Often eliminates technology provisioning all together and significantly Cloud Enabled Solution Deployment reduces time to configure ROI ROI ROI 4 to 6 Months 4 to 6 Months 4 to 6 Months© 2011 KPMG Advisory N.V., the Dutch member firm of KPMG International Cooperative (―KPMG International‖), aSwiss entity. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG InternationalCooperative (―KPMG International‖), a Swiss entity.
  14. 14. Reduced CostIn many instances, Cloud provides a lower total cost to deploy new solutions and to achieve new capability levels Possible 40% - 60% Reduction in TCO  Lower upfront cost Software  May allow switch from fixed cost to variable cost Hardware  May reduce total cost of ownership Cloud Model  Limits capital outlay to ―activate‖ a service Hosting  Provides ability to scale usage and Operations related costs as warranted Support Traditional Public Cloud Deployment Enabled Deployment© 2011 KPMG Advisory N.V., the Dutch member firm of KPMG International Cooperative (―KPMG International‖), aSwiss entity. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG InternationalCooperative (―KPMG International‖), a Swiss entity.
  15. 15. KPMG Survey May 2010 Conducted in the Netherlands – 120 CIOs/CISOs participated 14© 2011 KPMG Advisory N.V., a Dutch limited liability company, is a subsidiary of KPMG Europe LLP International‖), a © 2011 KPMG Advisory N.V., the Dutch member firm of KPMG International Cooperative (―KPMG and a memberfirm of the KPMG network of independent memberKPMG logo are registered trademarks of KPMG International Swiss entity. All rights reserved. KPMG and the firms affiliated with KPMG International Cooperative (‗KPMGInternational‘), a Swiss entity. All rightsa Swiss entity. Cooperative (―KPMG International‖), reserved.
  16. 16. Cloud into perspective: cloud computing is both marginal and significant • Marginality of the cloud • Europe < 5 percent of total IT spending • US: 60 percent of total IT spending • Significance of the cloud • Growth of commercial cloud services 20 to 30 percent per year (2010-2015) • Move towards centralization and commoditization of IT© 2011 KPMG Advisory N.V., a Dutch limited liability company, is a subsidiary of KPMG Europe LLP International‖), a © 2011 KPMG Advisory N.V., the Dutch member firm of KPMG International Cooperative (―KPMG and a memberfirm of the KPMG network of independent memberKPMG logo are registered trademarks of KPMG International Swiss entity. All rights reserved. KPMG and the firms affiliated with KPMG International Cooperative (‗KPMG 15International‘), a Swiss entity. All rightsa Swiss entity. Cooperative (―KPMG International‖), reserved.
  17. 17. Cloud Can Be Implemented in Multiple WaysCloud can be delivered through a variety of service and deployment models (i.e., SaaS, Public, Private) Public Community Cloud CloudIt is often provided through a Private hybrid of these options. Cloud© 2011 KPMG Advisory N.V., the Dutch member firm of KPMG International Cooperative (―KPMG International‖), aSwiss entity. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG InternationalCooperative (―KPMG International‖), a Swiss entity.
  18. 18. Where Do Most Organizations Begin?Most organizations are investing in Software as a Service in both Public and Community deployment models as well as investing in Private Clouds. Community Cloud brings together private networks with external partners toSoftware as a enhance the entire valueService in the Public chain across businesses,Cloud is a model for suppliers, and customersdelivering cloudtechnologies to Community Cloud brings together private Communitysupport specific networks with external partners to enhance Cloud Private Cloud extendsbusiness services over the entire value chain across businesses,the Internet existing internal efforts to suppliers,Public and customers virtualize IT by enabling the Private delivery of IT as a Service, Cloud Cloud going further in reducing long-term operational costs than just traditional virtualization. Infrastructure as a Service models are often core aspects of a private cloud.© 2011 KPMG Advisory N.V., the Dutch member firm of KPMG International Cooperative (―KPMG International‖), aSwiss entity. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG InternationalCooperative (―KPMG International‖), a Swiss entity.
  19. 19. Community and SaaS – Maximizing the Benefit SaaS Model Community Model Private Model in Public Model Increased Agility       Greater Flexibility Faster Results   ? Reduced Cost   ? While all Cloud models deliver on the promise of agility and flexibility faster and cheaper, Private Clouds pose short-term speed and cost considerations, especially when they are internally hosted. Use of IaaS offerings (internally and externally) can mitigate cost and speed issues, but organizations must balance those gains with the data privacy/security risks they are willing to take.© 2011 KPMG Advisory N.V., the Dutch member firm of KPMG International Cooperative (―KPMG International‖), a Swiss entity. All rights reserved. 18KPMG and the KPMG logo are registered trademarks of KPMG International Cooperative (―KPMG International‖), a Swiss entity.
  20. 20. Community Cloud Flexibility: Offers shared investment and setup costs Community Cloud and the ability to work with trusted suppliers who are part  Brings together private networks with of the community. external partners  Enhances the entire value chain across businesses, suppliers, and customers Collaboration: Allows organizations to leverage and access services usedExtended Organization: by other participatingSupports processes and organizations creatingsolutions that span multiple unprecedented synergies.business partners includingsuppliers, providers, andcustomers. Common Standards: Allows related companies to share common IT Faster Time-to-Market: capabilities such as data services, Speeds innovation as all security services, and testing services. organizations benefit from advances made by others in the cloud. Community clouds allow businesses with common interests to leverage shared services to support new business models offering the greatest potential for transformational impact.© 2011 KPMG Advisory N.V., the Dutch member firm of KPMG International Cooperative (―KPMG International‖), a Swiss entity. All rights reserved. 19KPMG and the KPMG logo are registered trademarks of KPMG International Cooperative (―KPMG International‖), a Swiss entity.
  21. 21. Community Cloud (continued)As an example, Community Clouds allow companies to synchronize business processes across multiple tiers of business partners Order Forecast-based New Product Collaborative Buy / Sell Management Replenishment Introduction Forecasting Procurement Vendor Managed Transportation Procure to Pay Point of Sale Based Collaborative Inventory Management Processes Replenishment Design Community Cloud Platform Replenishment Schedule Replenishment Schedule Replenishment Orders Replenishment Plans Replenishment Plans Replenishment Plans Shipping Information Shipping Information Inventory Positions Inventory Positions Inventory Positions Inventory Positions Suggested Orders Load Information Load Information POS Information Order Commits Order Commits Receipts Receipts Receipts Supplier Manufacturer Distributor Retailer© 2011 KPMG Advisory N.V., the Dutch member firm of KPMG International Cooperative (―KPMG International‖), aSwiss entity. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG InternationalCooperative (―KPMG International‖), a Swiss entity.
  22. 22. Software as a Service (SaaS) Flexibility: Enables faster change management cycles Software as a Service and access to technology advances made by the  Delivery of specific business services solution provider. over a network, most commonly the Internet  The applications are accessible from various client devices through web Best Practices: Offers browsers. opportunity to leverage best practice processes and technologies in use acrossScalability and Elasticity: the organization‘s industry.Allows access to IT solutionsfrom best-in-class providersquickly and as needed Time and Cost Savings: Saves time and costs compared with traditional Faster and Better: Offers security client server model that deploys and functionality at lower costs and software on internal infrastructure with faster resultsSaaS speeds up the realization of business benefit of IT solutions at lower up-front costs.© 2011 KPMG Advisory N.V., the Dutch member firm of KPMG International Cooperative (―KPMG International‖), a Swiss entity. All rights reserved. 21KPMG and the KPMG logo are registered trademarks of KPMG International Cooperative (―KPMG International‖), a Swiss entity.
  23. 23. Private Cloud Public Community Cloud Cloud Private Cloud Expensive: Requires high initial set-up Private Cloud investments, but long term operational costs  Extends existing internal efforts to may be less. virtualize IT by enabling the delivery of IT as a Service,  Enables reduction in long-term Convenience: Offers a way to deliver internal operational costs applications through a thin customer web interface providing an internal Software as a Service Minimum Risk: Provides capability the benefits of accessing IT as a service while minimizing the risks associated with using public Infrastructure as a Service: IaaS cloud solutions Control: Provides those with data sensitivity concerns with the most tends to be the primarily service control and least risk of any of the model used in private deployment cloud options models (over PaaS and SaaS) because it is a natural evolution of virtualization of IT infrastructure Private clouds reduce operational costs through virtualization and delivery of IT as a service. They are currently popular due to regulatory, data security/privacy, and performance concerns.© 2011 KPMG Advisory N.V., the Dutch member firm of KPMG International Cooperative (―KPMG International‖), a Swiss entity. All rights reserved. 22KPMG and the KPMG logo are registered trademarks of KPMG International Cooperative (―KPMG International‖), a Swiss entity.
  24. 24. Discussion Topics 1. Cloud: A Game Changer 2. Cloud‘s Impact on Business 3. Cloud‘s Impact on IT 4. Impact of Cloud on Business Operations Appendix: Understanding the Cloud Environment
  25. 25. Too Late to WaitToo Late to WaitLeaders are using the Cloud to improvebusiness performance, not just cut costs.How can you join them?The Right CIO Questions to Ask Now: How will the adoption of Cloud within my enterprise impact our IT delivery capabilities? How do I transform my IT organization to effectively support Cloud enabled business models?© 2011 KPMG Advisory N.V., the Dutch member firm of KPMG International Cooperative (―KPMG International‖), a Swissentity. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International Cooperative (―KPMG Impact of Cloud on IT 24International‖), a Swiss entity.
  26. 26. IT Leaders Are Responding Now Cloud forces IT organizations to evolve from a traditional services provider model to a highly agile services integrator model. The results?  Those who resist are seeing their business leaders move to the Cloud on their own.  Leaders are focused on enhancing internal capabilities and integrating multiple IT service offerings from internal and external providers.  Vendor management, IT governance, and information architectures are critical.  Rethinking their enterprise architectures to leverage the value cloud can bring to key business processes Increasingly, CIOs are shedding the support persona and taking a seat at the strategy table.© 2011 KPMG Advisory N.V., the Dutch member firm of KPMG International Cooperative (―KPMG International‖), a Swissentity. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International Cooperative (―KPMG 25International‖), a Swiss entity.
  27. 27. Cloud Computing is here to stay !© 2011 KPMG Advisory N.V., a Dutch limited liability company, is a subsidiary of KPMG Europe LLP International‖), a © 2011 KPMG Advisory N.V., the Dutch member firm of KPMG International Cooperative (―KPMG and a memberfirm of the KPMG network of independent memberKPMG logo are registered trademarks of KPMG International Swiss entity. All rights reserved. KPMG and the firms affiliated with KPMG International Cooperative (‗KPMG 26International‘), a Swiss entity. All rightsa Swiss entity. Cooperative (―KPMG International‖), reserved.
  28. 28. The hybrid environment as new paradigm • On premise IT, serviced by local, ―own‖ organization Organization Other Cloud Customers • Outsourced IT, serviced by Users Users limited number of outsourcing Services partners Internet Internet or LAN Organizations Internal IT Service provider Service provider Service provider • IT in the Cloud, services by growing numbers of cloud service providers Hardware, software + data Hardware, software + data Hardware, software + data Hardware, software + data Internal Data Center Managed hosting Third-Party Vendor (Multi-Tenant) Combined Public + Private Cloud Private Private-External Public Hybrid© 2011 KPMG Advisory N.V., a Dutch limited liability company, is a subsidiary of KPMG Europe LLP International‖), a © 2011 KPMG Advisory N.V., the Dutch member firm of KPMG International Cooperative (―KPMG and a memberfirm of the KPMG network of independent memberKPMG logo are registered trademarks of KPMG International Swiss entity. All rights reserved. KPMG and the firms affiliated with KPMG International Cooperative (‗KPMG 27International‘), a Swiss entity. All rightsa Swiss entity. Cooperative (―KPMG International‖), reserved.
  29. 29. IT ―Service Integrator‖ Model: ability to ―Orchestrate‖Successful adoption of a Cloud delivery model depends on an organization’s ability to establish a robust Enterprise IT Service Integration model. The Business Service Ownership: • Single Point of Contact IT Risk Management with the Cloud Service Service IT Risk • Risk identification and Providers (CSP) & IT Owner Manager analysis across • Demand Capture different CSPs • Services Standards • Risk library • Service Level • Vendor/CSP Audits Monitoring Vendor IT Finance Manager Manager IT Finance Vendor Management: Management • Vendor certification • Business case • Contract Negotiations • Service Costing and Chargeback • SLA penalty-bonus Rackspace Internal IT calculation Google Organization Amazon Web Services (retained IT Services)© 2011 KPMG Advisory N.V., the Dutch member firm of KPMG International Cooperative (―KPMG International‖), aSwiss entity. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG InternationalCooperative (―KPMG International‖), a Swiss entity.
  30. 30. Discussion Topics 1. Cloud: A Game Changer 2. Cloud‘s Impact on Business 3. Cloud‘s Impact on IT 4. Impact of Cloud on Business Operations Appendix: Understanding the Cloud Environment
  31. 31. Too Late to WaitLeaders are using the Cloud toimprove business performance,not just cut costs.How can you join them?The Right COO / CRO Questions to AskNow? Does adopting cloud impact my financial processes? What are the tax implications of adopting cloud? How will I control and manage my data? How do I manage cloud related security and privacy risks? How do I still comply with regulations while sending my data to cloud providers?© 2011 KPMG Advisory N.V., the Dutch member firm of KPMG International Cooperative (―KPMG International‖), a Swissentity. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International Cooperative (―KPMG Impact of Cloud on IT 30International‖), a Swiss entity.
  32. 32. Considerations Dependency of the cloud • External data storage and processing • Sharing of IT resources (multi tenancy) • Dependency on the public internet Complexity of the hybrid environment • Multiple concepts regarding: • Data management • Contracts Security Financial • Technology Assurance Business Operational • Complexity to ensure compliance Risks Vendor • Lack of industry standards and certifications for cloud providers (ISAE3400 / ISAE3000) • Emerging government schemes like FEDRAMP Regulatory Technology Compliance© 2011 KPMG Advisory N.V., a Dutch limited liability company, is a subsidiary of KPMG Europe LLP International‖), a © 2011 KPMG Advisory N.V., the Dutch member firm of KPMG International Cooperative (―KPMG and a memberfirm of the KPMG network of independent memberKPMG logo are registered trademarks of KPMG International Swiss entity. All rights reserved. KPMG and the firms affiliated with KPMG International Cooperative (‗KPMG 31International‘), a Swiss entity. All rightsa Swiss entity. Cooperative (―KPMG International‖), reserved.
  33. 33. Risk and security is seen as major concern for cloud adoption© 2011 KPMG Advisory N.V., a Dutch limited liability company, is a subsidiary of KPMG Europe LLP International‖), a © 2011 KPMG Advisory N.V., the Dutch member firm of KPMG International Cooperative (―KPMG and a memberfirm of the KPMG network of independent memberKPMG logo are registered trademarks of KPMG International Swiss entity. All rights reserved. KPMG and the firms affiliated with KPMG International Cooperative (‗KPMG 32International‘), a Swiss entity. All rightsa Swiss entity. Cooperative (―KPMG International‖), reserved.
  34. 34. Dimensions of Risk Operating in a cloud environment presents risks in six key dimensions Financial Security  Underestimated start-up costs  Data segregation, isolation, encryption  Exit costs  Information security  Contract complexity  Identity and access management  Run-away variable costs  Intellectual property protection Security Financial Vendor Operational  Vendor lock-in  Business Resiliency/Disaster  Service provider reliance Business Recovery Operational Risks  Service reliability and uptime  Performance failure Vendor  Vendor governance  SLA Compliance Regulatory Compliance Regulatory Technology Compliance  Complexity to ensure compliance Technology  Lack of industry standards and certifications  Cross-vendor compatibility for cloud providers  Proprietary lock-in  Records management / records retention  Customization limitations  Regulatory change control, reliant on vendor  Inadequate change control capabilities timeliness  Technical security risks  Data privacy© 2011 KPMG Advisory N.V., a Dutch limited liability company, is a subsidiary of KPMG Europe LLP International‖), a © 2011 KPMG Advisory N.V., the Dutch member firm of KPMG International Cooperative (―KPMG and a memberfirm of the KPMG network of independent memberKPMG logo are registered trademarks of KPMG International Swiss entity. All rights reserved. KPMG and the firms affiliated with KPMG International Cooperative (‗KPMG 33International‘), a Swiss entity. All rightsa Swiss entity. Cooperative (―KPMG International‖), reserved.
  35. 35. Key Risks & Challenges in Adopting CloudCloud adoption requires a careful examination of the potential operational risks and challenges in addition to the technology questions.  Movement from CapEx to OpEx model impacts existing budgeting, forecasting, and reporting processes Financial Management  CapEx to OpEx model and changes in the character and source of service impacts tax considerations and Tax  Outdated tax laws and regulations create uncertainty when characterizing the various cloud transactions  Cloud ROI and cost/benefit analysis are complicated by need for knowledge of existing cost of delivery and future use of service  Data may be stored in cloud (1) without proper customer segregation allowing possible accidental or malicious disclosure to third parties and/or (2) in a legal jurisdiction where the rights of data subject are not protected Security and Privacy  Loss of governance of critical areas, e.g., vulnerability management, infrastructure hardening, or physical security  Weak logical access controls due to cloud vendor‘s IAM immaturity  Cloud adoption introduces rapid change in the organization Operational  Cloud sourcing may impact existing organizational roles and could require new skills or make others redundant  Business resiliency/disaster recovery needs and plans will change and require updating  Risk of creating independent silos of information perpetuate the problem of data integrity, quality, and insight Data & Technology  Business can bypass the IT function to implement technology solutions, posing challenges for IT governance  Cloud delivery models dramatically change how IT delivers technology services to support business requirements  Cloud adoption opens the four Data Center walls to external IT Services providers, creating new risks  Lack of visibility into the Cloud Service Providers (CSPs) operations inhibits analysis of its compliance with pertinent laws and Regulatory and regulations Compliance  Complexity of records management/records retention creates challenges  Lack of industry standards and certifications for cloud providers creates risks • Lack of clarity of ownership responsibilities between cloud vendor and user company Vendor Management • No prevalent standards for vendor interoperability • Extensive reliance on CSPs© 2011 KPMG Advisory N.V., the Dutch member firm of KPMG International Cooperative (―KPMG International‖), aSwiss entity. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG InternationalCooperative (―KPMG International‖), a Swiss entity.
  36. 36. To conclude Orchestration of the hybrid environment is a critical success factor© 2011 KPMG Advisory N.V., a Dutch limited liability company, is a subsidiary of KPMG Europe LLP International‖), a © 2011 KPMG Advisory N.V., the Dutch member firm of KPMG International Cooperative (―KPMG and a memberfirm of the KPMG network of independent memberKPMG logo are registered trademarks of KPMG International Swiss entity. All rights reserved. KPMG and the firms affiliated with KPMG International Cooperative (‗KPMG 35International‘), a Swiss entity. All rightsa Swiss entity. Cooperative (―KPMG International‖), reserved.
  37. 37. Key messages© 2011 KPMG Advisory N.V., a Dutch limited liability company, is a subsidiary of KPMG Europe LLP International‖), a © 2011 KPMG Advisory N.V., the Dutch member firm of KPMG International Cooperative (―KPMG and a memberfirm of the KPMG network of independent memberKPMG logo are registered trademarks of KPMG International Swiss entity. All rights reserved. KPMG and the firms affiliated with KPMG International Cooperative (‗KPMG 36International‘), a Swiss entity. All rightsa Swiss entity. Cooperative (―KPMG International‖), reserved.
  38. 38. APPENDIXUNDERSTANDING THE CLOUD ENVIRONMENT
  39. 39. Understanding the Cloud Environment Cloud Internet-based data Internet-based access to low cost Environment = access & exchange + computing & applications Cloud Environment On-Demand Internet Pooled Elastic Usage- Based Self-Service Accessibility Resources Characteristics: Capacity Billing Cloud Service Models Cloud Deployment Models Software Platform Infrastructure Private Operated for a single organization as a Service as a Service as a Service “SaaS” “PaaS” “IaaS” Available to the general public or large industry Business operations Deploy customer- Rent storage, Public group, owned by an organization selling cloud over a network created applications to processing, network services a cloud and other computing resources Shared by several organizations, supporting a Community Google Docs, MS Azure, Amazon Mozy, Rackspace specific community Salesforce.com Web Services© 2011 KPMG Advisory N.V., the Dutch member firm of KPMG International Cooperative (―KPMG International‖), a Swiss entity. All rights reserved. 38KPMG and the KPMG logo are registered trademarks of KPMG International Cooperative (―KPMG International‖), a Swiss entity.
  40. 40. Understanding the Cloud Service Models Description  Provider applications are accessible through a thin client interface such as a web browser Software as a Less End User Management  Provider manages/controls the infrastructure including network, Service servers, operating systems, storage, or individual application capabilities E.g., Google Apps, MS Office Live, Netsuite, Salesforce  Enables customer to deploy onto the cloud infrastructure consumer-created or acquired applications created using More End User Less End User Control Platform as a Management programming languages/tools supported by the provider. Service  Consumer does not manage/control cloud infrastructure but has control over deployed applications and possibly application hosting. E.g., Windows Azure, Force.com, Google App Engine More End User Infrastructure  Provider offers quick deployment of computing resources such Control as processing, storage, and network as a Service  Developers can write applications that run on the cloud E.g., Amazon.com, Rackspace, Terremark, IBM© 2011 KPMG Advisory N.V., the Dutch member firm of KPMG International Cooperative (―KPMG International‖), aSwiss entity. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG InternationalCooperative (―KPMG International‖), a Swiss entity.
  41. 41. Understanding the Cloud Deployment ModelsEach service model can be deployed leveraging several different deployment models: Private, Public, or CommunityPrivate Cloud: A ―closed‖ environmentfor a single organization hosted internallyor by a third party Allows an organization to act like a cloud provider internally Provides organization the flexibility to rapidly scale internal IT resources Provides organization with full control over data Often requires high initial investment but helps reduce long term costs Offers elastic capacity May exist on or off premise© 2011 KPMG Advisory N.V., the Dutch member firm of KPMG International Cooperative (―KPMG International‖), aSwiss entity. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG InternationalCooperative (―KPMG International‖), a Swiss entity.
  42. 42. Understanding the Cloud Deployment Models (continued)Public Cloud: Infrastructure is owned by a cloud services provider, which makes it available to the general public or a large industry group  Uses pay-as-you-go, utility pricing  Provides high agility and speed-to-market  Less upfront cost  May allow switch from fixed costs to variable costs  Offers less customer control over data and service levels  Provides the opportunity to leverage the leading practices of an industry vertical or functional area© 2011 KPMG Advisory N.V., the Dutch member firm of KPMG International Cooperative (―KPMG International‖), aSwiss entity. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG InternationalCooperative (―KPMG International‖), a Swiss entity.
  43. 43. Understanding the Cloud Deployment Models (continued)Community Cloud: Infrastructure is shared by several organizations with common interests— offering potentially the greatest transformational value of any of the Cloud deployment models. Supports organizations with common interests such as supply chain, mission, security requirements, policy, or compliance considerations Often defined by industry, supply chains, or geography Supports the emergence of new business models and working relationships May be managed by the community or a third party May exist on or off premise© 2011 KPMG Advisory N.V., the Dutch member firm of KPMG International Cooperative (―KPMG International‖), aSwiss entity. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG InternationalCooperative (―KPMG International‖), a Swiss entity.
  44. 44. KPMG Key Contact Details John Hermans Partner KPM G Advisory N.V. Tel: +31 6 51 366 389 Email: hermans.john@kpmg.nl© 2011 KPMG Advisory N.V., a Dutch limited liability company, is a subsidiary of KPMG Europe LLP International‖), a © 2011 KPMG Advisory N.V., the Dutch member firm of KPMG International Cooperative (―KPMG and a memberfirm of the KPMG network of independent memberKPMG logo are registered trademarks of KPMG International Swiss entity. All rights reserved. KPMG and the firms affiliated with KPMG International Cooperative (‗KPMG 43International‘), a Swiss entity. All rightsa Swiss entity. Cooperative (―KPMG International‖), reserved.
  45. 45. © 2011 KPMG Advisory N.V., registered with the trade register in the Netherlands under number 33263682, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (‗KPMG International‘), a Swiss entity. All rights reserved. Printed in the Netherlands. The KPMG name, logo and ‗cutting through complexity‘ are registered trademarks of KPMG International Cooperative.The KPMG name, logo and ‗cutting through complexity‘ are registered trademarks or trademarks of KPMG International Cooperative (KPMG International).

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