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- 1. AN INTRODUCTION TO CLOUD COMPUTING Final Report GXMBA 2012 – Team D, Version 2.0 Pavlo Boyko, James Hickson, Barto Lygren, Mercedes Martinez, Hiske Weissmann Information Systems Management
- 2. Presentation Overview 1. Cloud Computing: What is it? James 2. Cloud Computing flavours, what are they? James 3. Cloud Computing : three layers Mercedes 4. The Cloud, a disruptive force of nature? Hiske 5. What does this mean for businesses and consumers? Bjarte 6. Cloud – The Why’s and the How’s Hiske 7. No free lunch, the challenges of cloud computing Pavlo 8. Conclusion and key takeaways. James
- 3. Before Cloud Computing Imagine you’re a company that wants to expand your business and use technology to grow sales. What do you need? ORACLE PEOPLESOFT SAP MICROSOFT BUSINESSAPPS DC SPACE COOLING UPGRADES POWER MORE…. HOSTING DEV, QA, PROD TECH STAFF GL MULTIPLESYSTEMS =COST HR PAYROLL CRM SALES
- 4. What Is Cloud Computing? Rather than running apps yourself Run in an external shared data centre JUST PLUGIN TO GET STARTED • No dedicated hardware, no upgrades • No dedicated business apps • Not dedicated technical staff WHAT DOES THIS RESULT IN?
- 5. What Is Cloud Computing? ONE APPLICATION MULTI-TENANCY ARCHITECTURE • Like a shared office building • Everyone benefits from shared services like security • Each office can be customised • Can expand and grow as required
- 6. Cloud Computing – Three Layers NE APPLICATION INFRASTRUCTURE AS A SERVICE (IaaS) Amazon, Google PLATFORM AS A SERVICE (PaaS) Microsoft, Rack Space, IBM SOFTWARE AS A SERVICE (SaaS) Salesforce.com, Apple Hardware Virtualization Scalability, Reliability, Flexibility Web Service through Application Programming Interface (API) -adding robustness and reliability to my business while reducing hidden costs- Mature, rounded applications hosted externally
- 7. DISRUPTION PRE-CLOUD POST-CLOUD Pricing model Pay up front irrespective of usage Pay-as-you-Go, controlled costs Value chain Large established companies dominate HW, OS , SW and service industry New player, including start-ups, can be competitive through innovation and agility People Internal technologists have tight control over systems Self-service concept loosens tight grip from tech people. Reduces dependency on internal tech staff to support infrastructure Mobility In-house networks limit mobility and cooperation Improved accessibility allows for access anytime and from anywhere Business Planning Scalability of business limited by large CAPEX or existing IT infrastructure Cloud computing is scalable on demand allowing for easier planning Power shift Power with providers; Locked into current provider and contract Clients regains power: Its easier to change Cloud provider than IT platform. A Disruptive Force of Nature?
- 8. What does this mean for consumer? • Convergence of devices, increase in connection speeds and advent of mobility creates significant upside for consumers • Data now synced between different devices through the cloud (Lap tops, work computer, home computer, smart phones, tablets etc.) • Access services (Google doc, Spotify, Gmail, Dropbox etc.) from everywhere • Powerful computing processing can be done in the cloud enabling mobility.
- 9. What does it mean for business? • The perfect answer to many businesses (business cloud) • No software to install – easy access • Reduction of costs • More flexible and agile infrastructure for employees and end customers - perfect on the road • Competetive advantage. • Easier to start new businesses and to scale it • Some particular challenges in business: • Must find the right trade-off between safety, freedom, visibility and control (depends on the business). • Business cloud requires implementation and management strategy (eg who will manage and own business data?).
- 10. Why move to the Cloud? Don’t get left behind Reduce Costs Flexibility & Scalability Increase productivity Availability Accessibility Unanticipated benefits Quick Set-up
- 11. How to move to the Cloud? 1. Ensure a clear mandate and support from the C-Suite 2. Understand the business problem you are trying to solve. Would you save money? What’s the opportunity? 3. Ensure laws and regulations don’t prohibit a cloud model (ie Swiss Banking regulations) 4. Codify the business requirements and review cloud offerings that match requirements 5. Leverage RFI/RFP process to select a cloud provider. Understand costs at scale! 6. Attempt to keep customisations to a minimum to lower TCO 7. Ensure you have sufficient bandwidth to support cloud specific solution
- 12. No Free Lunch, Cloud Challenges. Data security and privacy. DoS Impacts All WikiLeaks exampleContracts. Simple SLAs for complex clouds. Lock-ins. Tech and org Managing the clouds. Strategic control. Management capabilities. Cultural barriers. Scalability Vs Predictability
- 13. Conclusion and Key Takeaways • We have explored the key advantages of the cloud and the shared benefits of the multi tenancy architecture • We understand that cloud is an umbrella term for multiple cloud based offerings • We have explored the disruptive nature of the cloud and how it offers businesses competitive advantages. • The consumer space will prove very interesting, especially considering the emergence of LTE, Big Data and improved devices. • While positive we also outlined that cloud is not without its shortfalls, in moving to a solution CEO’s must understand the pro’s and con’s to ensure it is right for the business.
- 14. Appendix – references used: http://www.busmanagement.com/article/What-Does-the-Cloud-Mean-for-Business/ http://www.youtube.com/watch?v=5oA-M-ON2eo http://articles.businessinsider.com/2011-10-28/research/30331722_1_home-computer-central-computer-desktop#ixzz21LQGDlTh http://www.youtube.com/watch?v=TrSbYiI3R-c http://www.youtube.com/watch?v=jKDOqbG_7cw http://www.youtube.com/watch?v=qEqaibAEbH0 http://www.cloud-lounge.org/EN/why-use-clouds.html http://www.youtube.com/watch?v=SKa50STZ7CQ http://www.zdnet.com/blog/hinchcliffe/eight-ways-that-cloud-computing-will-change-business/488 http://mail2web.com/blog/2010/04/cloud-computing/ http://en.wikipedia.org/wiki/Cloud_computing http://en.wikipedia.org/wiki/Introduction_to_cloud_computing#Improved_access http://www.innovatrs.com/blog/bring-your-own-computers-to-work-cloud-computing-comes-of-age/ http://www.cisco.com/cisco/web/solutions/small_business/resource_center/articles/do_business_better/go_up_to_the_cloud/index.htm http://www.accenture.com/us-en/outlook/Pages/outlook-online-2011-challenges-cloud-computing.aspx http://www.networkworld.com/news/2012/071112-cloud-computing-challenges-260829.html?page=2 http://www.cloudbook.net/resources/stories/consumer-cloud-computing
Editor's Notes
- Big ideas, streamline, drive salesNeed business appsToo expensiveEach one is complex – DC, Space, cooling e.tc. Large SW stack, expertsDev, QA, failoverProblem? Who knowsMore systems, 100’s of appsPeople aren’t getting helpCloudInstead of building appsRun on shared DC like a utilityLike gmail verses microsoft exchangeLogin, customise and start using itModel is so much better, changing the way we think about computingCustom built apps for enterprise softwareCost lestMore scalable, more secureArchteicture: multi tenancy model. Like a giant office building where everyoneApps
- Rather than having your own instance of the application, everyone shares one application(CLICK) This architecture is referred to as multi tenancy
- OVERALLCloud technology can be fully integrated with open strategies, usually less costly and more customizable. Cloud Computing makes it easier to migrate since my business does no longer need to own infrastructure and applications.INFRASTRUCTUREVirtual partition of resources allows for redundant resources (safer than the non-cloud model, where a single resource is normally available). Uninterrupted service is best assured through cloud infrastructure (reliability).Scalability can be done easily within a cloud infrastructure (e.g.: if my business gets a sudden increase of customer orders, I can cope with those in a cloud environment by asking for an immediate increase of processing speed and/or space disk). Therefore cloud technology provides flexibility to businesses.PLATFORMResources owned and residing at supplier’s platform (e.g.: Google Maps) are utilized by businesses by means of APIs. APIs are used to “call” those resources.SOFTWARE- Mature applications are used by my business with ample choices of customization offered by the provider. Software upgrades are automatically incorporated into my business (subscriber of the cloud), normally reducing the overall cost of licenses and ensuring standardization of my business with the external environment (my business suppliers and customers). Examples: file storage system, calendar.
- Is Cloud Computing disrupting the IT industry?Is it really changing the way the IT industry, the way we work , and is it here to stay? Or it is a simply a logical evolution enabled by innovation and the Internet. No– Cloud Computing is most definitely disruptive so what does it change?First of all, pricing –whereas before Cloud computing you would have to invest in IT infrastructure of which you probably only use 30%, now you have to pay only for what you useIt also changes the value chains and industry players, established companies like Cisco, Rackspace orOracle not face competition from the likes of Google and Amazon. Amazon now makes more money from it cloud compute platforms than from retailing.And some people are worried too, tech departments loose direct control over in-house system. This changes their job or worse, makes it obsolete.Cloud changes the way we can do business, by allowing staff to access company resources from anywhere and any device leads to increased productivity and efficiency that didn’t exist previously. And It changes the way we plan and develop our business; we are no longer limited by the need for huge IT investments and/or the limits of our existing systems, with Cloud Computing, our platform becomes scalable on demand.And lastly, Cloud shift the power, at least partly, back to us, the client, as we are no longer locked into to one platform and long terms contracts, it is a lot easier to switch cloud provider than it is to change platform or even outsource provider. Software is now a service rather than a long term investment decision
- It is amazing how fast our behavior on internet has changed only the last couple of years because of cloud technology. The personal computer is now only a small part of a package of devices that most of us use in our everyday life. These devices such as smartphones, tablets, home computers and lap tops are synchronized through the cloud - and during day we may use dropbox for document access, gmail, spotify for music and Facebook, twitter etc. When we are at a restaurant our «friends» will know it immediately. The shearing potential is huge, and information can go viral. Most importantly this also gives a LOT of consumer POWER. Very quickly we can inform the world about bad service and good service as well as our opinion about products, hotels, restaurants etc. All interest groups such as environmental groups and animal protection groups do also have more channels to spread their communication. This leads us to the next question......What does cloud computing means for businesses?
- Why is it the perfect answer for businesses? Except for the youngest of us we do all remember the very hot rooms with the data servers using a lot of energy and space, and how often didn´t we have server problems? With the new cloud technology businesses can outsource storage and maintenance. In addition to capacity issues cloud computing allow us to access working tools more easy also when traveling. The sales force in our company (Merck Animal Health) for instance is in heaven now compared to before. Not only can they chat with each other at all times and share information very efficiently using the Sales force. com. But also after customer meetings they can write reports and follow up actions immediately (for instance while waiting for the ferry or when taking a bit on the road). They do not have to upload to the server when back – this saves a lot of time and energy and gives more time with friends and family. The businesses that adapts most efficiently to the new technology will have a competitive advantage. If done correctly it means money saved, but if done incorrectly it could damage the business and then it means looking for a new job.It is a fact that the younger generation often is the pioneers in changing from traditional work tools to cloud based solutions. They bring the consumer mentality and habits into the working place and ask themselves; Why do we struggle with these old fashion tools when the technology offers so much more.Also all companies today needs to have a social media strategy. If they chose not to be there, they at least have to have a strategy on how to respond if the consumers write about them.It is now cheaper than ever to start a new service, and easier than ever to scale it.However, there is a difference between the consumer cloud and the business cloud mainly when it comes to what access to give on different levels. Sometimes only a limited team should have access to data, sometimes it is ok for the whole organization and even for business partners. We are for instance building a database together with our customers so they will have access to their specific data but of course not to other customer’s data. This is a powerful tool that adds a lot of value for the end user but there are some challenges in administering this – for instance; how do we keep track of the customer employees with access when they swop jobs. Business cloud systems offer a platform where they can deliver services or infrastructure to people on a more dynamic basis.
- Why move to the Cloud?First of all, it will most certainlyreduce costsThen there is the advantage of availability – it is no longer your responsibility, saving you a lot of head-aches and weekend callsFurthermore Cloud Computing, as we have seen previously, increases staff mobilityThis mobility increase will undoubtedly lead to an increase in productivityCloud service are expandable so offering you the flexibility of only paying for what you use and making your IT platform easily scalable - and because there are no heavy upfront investments you are not tied into long-term contracts which allows for switching provides should you not be satisfied with the service you receive.It is quick to get up and running with Cloud, no you don’t have to do any lengthy installations yourself.Not to forget about competition; imagine they make the move and it pays off? You wouldn’t want to be left behind, would you?Finally, as with a lot of novel technologies, there will be many unanticipated benefits we do not yet know about But there are grey clouds also so Why would you not make the move?Most company’s IT infrastructure is a mixture of different systems and the Cloud will involve some tough decision making regarding consolidation and standardization – decisions that many a CIO would love to avoid….
- So you have decided to join the bandwagon and make the move! Now what?This should be a CEO-led initiative, the IT department will most likely be too occupied maintaining current platforms and afraid to loose control, so too biased and inclined to keep the status quo(2) Once you have buy-in and before moving on, analyze costs of cloud versus in-house to estimate cost savings, if any; (3) Then check laws and regulation whether you are actually allowed to move data to the cloud; the cloud may not be suitable for storage of some data (e.g.: high sensitivity from the privacy point of view).4) Start experimenting with Cloud Apps, like for example Google Apps, that won’t disturb or endanger your current business and processes – once successful, you can consider doing your next software development project in the Cloud. Your developers will be amazed how much time they save not having to worry about infrastructure and platform6) Choose the right Cloud provider, this is at least as big a project as selecting say the ideal ERP providers but its worth a thorough comparison; e.g. what back-up do they have in case of a service interruption. What about security?7) Last but not least, your company will need to make sure its bandwidth and network equipment is sufficient to cope with cloud computing.All checked – ready to go!