Between Hype, Oversell and Reality<br />Challenges for Cloud Computing in the Mid-Size Corporation<br />Afzal Ballim<br />
About me<br />IT Executive with 27 years of experience<br />Entrepreneur in the 80s<br />Was a research scientist<br />e-B...
Cloud Computing – The Hype<br />Will do away with internal IT for infrastructure support and data centre operations<br />I...
Reality – An example company<br />Manufacturer and wholesaler of Fast Moving Consumer Goods<br />Working in a highly regul...
No more infrastructure and data centre? <br />Human factor:<br />Fear of losing control of the IT back bone <br />Organiza...
Cost Effective? <br />The claim is that the pay-as-you-use model is cost effective and flexible<br />BUT<br />The billing ...
Reliability?<br />Can we forget about backups and disaster recovery?<br />Can we trust the cloud provider to correctly per...
User experience, collaboration, mobility?<br />One of the biggest factors on user experience is latency<br />Good latency ...
Device Independence?<br />Claim - The cloud makes you device indepentent<br />Yes, maybe<br />What exactly is needed clien...
Updating?<br />Claim – you don’t have to worry about updates<br />Reality<br />Updates to one system/application can wreak...
Secure?<br />Where exactly is your data?<br />How do you control who has access to it?<br />Can you trust the providers se...
A transformation?<br />Maybe someday<br />Corporate IT often don’t want the risk of a transformation<br />If it is a trans...
Reality – Corporate Data<br />Corporate Data location deserves a special mention<br />Many data forms are subject to statu...
Reality – The fit in Sustainability & Green IT<br />Green and Sustainable IT strategies have similar goals and methods:<br...
The bottom line<br />Cloud computing does not look to be ready to take on corporate applications – the core IT<br />There ...
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Afzal ballim between hype, oversell and reality

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Afzal ballim between hype, oversell and reality

  1. 1. Between Hype, Oversell and Reality<br />Challenges for Cloud Computing in the Mid-Size Corporation<br />Afzal Ballim<br />
  2. 2. About me<br />IT Executive with 27 years of experience<br />Entrepreneur in the 80s<br />Was a research scientist<br />e-Business consultant in the late 90s<br />Executive in FMCG since 2001<br />
  3. 3. Cloud Computing – The Hype<br />Will do away with internal IT for infrastructure support and data centre operations<br />Is a cost effective way of doing computing – reducing capital expenditure<br />Reliable - No down-time, or need for backup<br />It gives improved user performance, collaboration and mobility<br />It provides device independence<br />It makes updating easy<br />It is secure<br />A technology that will transform IT and create sweeping changes in how we do IT in the corporate environment<br />
  4. 4. Reality – An example company<br />Manufacturer and wholesaler of Fast Moving Consumer Goods<br />Working in a highly regulated environment<br />25,000 staff<br />80 countries<br />~500 offices<br />1,600 servers (50% virtual)<br />2,400 applications<br />2 ERP systems (SAP & Siebel) <br />3 major data centers<br />~500 IT staff<br />Outsourced data center operations<br />
  5. 5. No more infrastructure and data centre? <br />Human factor:<br />Fear of losing control of the IT back bone <br />Organizational inertia – resistance to change<br />There’s always going to be some infrastructure<br />Network<br />Can every application be “clouded?”<br />Application latency<br />Security (see later)<br />Licensing<br />
  6. 6. Cost Effective? <br />The claim is that the pay-as-you-use model is cost effective and flexible<br />BUT<br />The billing model is not well defined<br />There may be a large initial investment made for change management<br />For provisioning, need to consider<br />Desktop management impact<br />Database management<br />Security and standards<br />The question of software licensing has not been properly addressed yet to understand the impact of moving an application to the cloud<br />Nobody takes about the cost of moving back out of the cloud or changing cloud provider<br />Cost gains in using low-cost clients are fictitious – even thin-clients cost about as much as average desktops<br />Vendor management always has a cost<br />
  7. 7. Reliability?<br />Can we forget about backups and disaster recovery?<br />Can we trust the cloud provider to correctly perform those services?<br />What about the elements that are out of the control of the cloud provider?<br />Internet connection<br />Even if we do reduce capital expenditure, operational expenditure seems to increase<br />
  8. 8. User experience, collaboration, mobility?<br />One of the biggest factors on user experience is latency<br />Good latency is dependent on the network and internet connection<br />Mobility may well be improved, but security must be ensured<br />
  9. 9. Device Independence?<br />Claim - The cloud makes you device indepentent<br />Yes, maybe<br />What exactly is needed client side?<br />A specific browser?<br />A specific plugin?<br />How are these managed?<br />At what cost to you?<br />
  10. 10. Updating?<br />Claim – you don’t have to worry about updates<br />Reality<br />Updates to one system/application can wreak havoc on interoperability<br />They may require re-training of staff<br />Will you be in the loop on update planning?<br />Will you be able to influence it?<br />Will you be able to test it?<br />
  11. 11. Secure?<br />Where exactly is your data?<br />How do you control who has access to it?<br />Can you trust the providers security model?<br />Do providers segregate customer’s data?<br />How to you comply with regulatory law?<br />Personal data protection<br />Audit trails<br />Can you get an independent audit of the provider’s security?<br />
  12. 12. A transformation?<br />Maybe someday<br />Corporate IT often don’t want the risk of a transformation<br />If it is a transformation, then its advantages must be clear and huge<br />Today it is just a potential<br />
  13. 13. Reality – Corporate Data<br />Corporate Data location deserves a special mention<br />Many data forms are subject to statutory regulation <br />Employee data<br />Customer data<br />Financial data<br />This can impact where you are allowed to store data<br />Clouds where you cannot tell exactly where the data lies cannot be used<br />Opportunity – create specialized clouds that are compliant!<br />
  14. 14. Reality – The fit in Sustainability & Green IT<br />Green and Sustainable IT strategies have similar goals and methods:<br />Reducing energy consumption globally in IT<br />Increasing equipment life-cycles<br />Reducing underutilization of hardware<br />The scale of clouds makes the gains possible in these areas very important<br />Cloud providers would good and provable Green/Sustainable IT credentials could get a competitive advantage<br />Green IT legislation is already being drafted and enacted in Europe<br />
  15. 15. The bottom line<br />Cloud computing does not look to be ready to take on corporate applications – the core IT<br />There are many important questions that need to be answered (billing methods, licensing, data security and regulatory compliance)<br />It may be an option for desktop office environment<br />BUT – the bottleneck then becomes the internet connection<br />Private clouds may resolve some of the data issues, but seem to take away all the advantages of flexibility, rapid provisioning, while retaining all the other problems<br />Could computing is a very interesting technology to consider in the context of either a Green IT strategy or a Sustainability strategy.<br />It should be something you consider for non-mission critical applications<br />

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