About me <ul><li>IT Executive with 27 years of experience </li></ul><ul><li>Entrepreneur in the 80s </li></ul><ul><li>Was ...
Cloud Computing – The Hype <ul><li>Will do away with internal IT for infrastructure support and data centre operations </l...
Reality – An example company <ul><li>Manufacturer and wholesaler of Fast Moving Consumer Goods </li></ul><ul><li>Working i...
No more infrastructure and data centre?  <ul><li>Human factor: </li></ul><ul><ul><li>Fear of losing control of the IT back...
Cost Effective?  <ul><li>The claim is that the pay-as-you-use model is cost effective and flexible </li></ul><ul><li>BUT <...
Reliability? <ul><li>Can we forget about backups and disaster recovery? </li></ul><ul><li>Can we trust the cloud provider ...
User experience, collaboration, mobility? <ul><li>One of the biggest factors on user experience is latency </li></ul><ul><...
Device Independence? <ul><li>Claim - The cloud makes you device indepentent </li></ul><ul><li>Yes, maybe </li></ul><ul><ul...
Updating? <ul><li>Claim – you don’t have to worry about updates </li></ul><ul><li>Reality </li></ul><ul><ul><li>Updates to...
Secure? <ul><li>Where exactly is your data? </li></ul><ul><li>How do you control who has access to it? </li></ul><ul><li>C...
A transformation? <ul><li>Maybe someday </li></ul><ul><li>Corporate IT often don’t want the risk of a  transformation </li...
Reality – Corporate Data <ul><li>Corporate Data location deserves a special mention </li></ul><ul><li>Many data forms are ...
Reality – The fit in Sustainability & Green IT <ul><li>Green and Sustainable IT strategies have similar goals and methods:...
The bottom line <ul><li>Cloud computing does not look to be ready to take on corporate applications – the core IT </li></u...
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Afzal Ballim between hype, oversell and reality

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Cloud Computing Europe 2010 JTI

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Afzal Ballim between hype, oversell and reality

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

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