Navigating through the Cloud - 7 feb 2012 at Institute for Information Management - rob livingstone


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Navigating through the Cloud - general overview delivered on 7 Feb 2012 at the Institute for Information Management meeting

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Navigating through the Cloud - 7 feb 2012 at Institute for Information Management - rob livingstone

  1. 1. IIM ConferenceNavigating through the CloudROB LIVINGSTONEPRINCIPALSydney Tuesday 7th Feb
  2. 2. A Perspective on Cloud Cloud is about getting from one place to a better place, …. however ….The challenge is to know the risks and the endpoint with certainty
  3. 3. What I’ll be covering:1. Cloud: Concepts and Fundamentals2. The intrinsic appeal of Cloud to organisations3. The role of Enterprise IT in Cloud decisions4. Cloud comparative costing5. Vendor contract and commercial considerations6. Migrating to public Cloud …. „a ready-reckoner‟.7. The future is now8. Questions and discussion
  4. 4. 1. Cloud computing concepts and fundamentals Definition: Cloud computing is a model for enabling convenient, on-demand network access to a shared pool of configurable computing resources (e.g. networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or cloud provider interaction • US National Institute of Standards and Technology‟s (NIST) definition
  5. 5. 1 Cloud computing concepts and fundamentals The 3 key ‘classic’ Ingredients of Cloud
  6. 6. 1 Cloud computing concepts and fundamentals The 4 flavours of cloud computing – basic attributes Public Private Hybrid Community• No control • You control all • Combination of 2 • Multiple agencies• No ownership • You may own or more models share same• You own data • You define • Can be more private cloud• Apps stay behind architecture complex infrastructure • You determine • Need to manage your own security interfaces, position integration
  7. 7. 1 Cloud computing concepts and fundamentalsThe 4 flavours of cloud computing – risk and securityconsiderations Public Private Hybrid Community• No control over • You control • Maximum flexibility • Allows for security and risk security posture • Increases standardisation of risk profile and counter- complexity of and security systems• Vulnerabilities measures managing and policies identified • You manage and identities, security • Concentrates the risk• Recent outages – mitigate risks and risk, hence of a security breach reliability? cost
  8. 8. 1 Cloud computing concepts and fundamentalsCloud – Getting the security-risk-benefit balance right Issues & Considerations • Risk & Security tolerance • Existing infrastructure • Regulatory mandates • Legislation Benefits • Policy restrictions  IT cost  IT Project timelines  IT Complexity Project speed  Energy / CO2Is this achievable using public cloud technologies?
  9. 9. Next few years – from confusion to calm“There are known knowns. These are things we knowthat we know. There are known unknowns. That is tosay, there are things that we know we dont know. Butthere are also unknown unknowns. There are things wedont know we dont know”- Former US Defense secretary Donald Rumsfeld , 2002 Let‟s start our Cloud journey to turn the unknowns into knowns! © All rights reserved. Rob Livingstone Advisory Pty Ltd. Unauthorized redistribution prohibited without prior approval
  10. 10. 2. The intrinsic appeal of Cloud to businessCommon influences include…….1. It is available immediately • Potentially, the system can be operational with hours, days or weeks.2. It allows you to „Buy before you try‟…… • buy a few user subscriptions and try the system. If it does not meet your needs, the walk-away costs are negligible3. Avoids dealing with the IT Department • avoids having to possibly deal with an internal IT department that may appear to be slow, inflexible or indifferent to Cloud.4. Avoids the need for up-front capital / financing • „pay as you go‟5. Appears to be low cost • $100/user/month is a lot cheaper than $2Million upfront … or is it?
  11. 11. 2. The intrinsic appeal of Cloud to business6. Users already have had a positive personal experience with Cloud….. • Personal experience in using Cloud applications (e.g. YouTube™ , Linkedin™ Gmail™, etc…) are invariably positive7. Cloud eliminates the need for on-premises IT infrastructure • The provider does the maintenance, operation and support of the system.8. Is a result of a compelling vendor offer…… • It is not uncommon for Cloud vendors to bypass the IT department and go directly to the non-IT executive levels of organisations with an ostensibly compelling offer. • The difficult questions of cost, security, risk and governance may be relegated to a later date (provided you know what questions to ask, that is!) as the focus is on the usability of the application.
  12. 12. 3. The role of Enterprise IT in Cloud decisions The consumerisation of IT effect in the enterprise1. Individuals have unprecedented access to all type of IT systems, from email, file storage, accounting, CRM, banking, shipping, social networking (eg Facebook™ ).. The list is almost endless.2. What is meant by „consumerisation‟ of IT? • Individuals can use / buy systems as they see fit. • Personal choice and immediacy reigns supreme • Buy it / use it without necessarily a long term in mind • „Apps‟ – for iPhone™, Android™, etc • Bypass IT Departments3. For enterprises, however, this presents a number of challenges for the unwary, and have potentially serious implications for the Enterprise
  13. 13. 4. Cloud comparative costing Consider the following simplistic scenario: • Cloud: Annual costs are $200,000 / year perpetual • On-Premise: Capital cost $550,000 + 15%/year software maintenance from years 2 onwards„Breakeven‟at year 4 Cloud more expensive
  14. 14. 5. Vendor contract and commercial considerations The contract you sign with your Cloud service provider is very important, as, unlike on-premises IT systems, the Cloud system is external to your organisation, and is an entity over which you have no physical control.Given the maturing nature of the Cloudmarket:• Cloud provisioning contracts may not be at the expected level of maturity to meet the general legal, regulatory and commercial contracting requirements as applicable to your organisation, and• There has been little legal precedence in At the end of the day, all you have is a respect of Cloud contract legal rulings. contract – it should be substantive and enforceable
  15. 15. 6. Migrating to public Cloud: The 14 point ‘ready-reckoner’. If the answer to these questions are YES, then you should be able to progress relatively swiftly through your journey to Cloud computing : Is this a completely new system?... AND…… 1. Will the system always be standalone? (i.e. you do not need to build any system interfaces) 2. Are your business requirements likely to remain relatively static? 3. If the vendor goes out of business do you have a workaround? 4. Is the migration cost (Incl. write-off) for outgoing systems minimal? 5. Are the Cloud system boundaries clearly defined? 6. Are managerial accountabilities clearly defined and assigned? 7. Is there an immediate „crisis‟ on your hands and Cloud is the only realistic alternative given its immediate availability? 8. Are you comfortable in having your data (possibly) resident in a foreign legal jurisdiction?
  16. 16. 6. Migrating to public Cloud: The 14 point ‘ready-reckoner’. If the answer to these questions are YES, then you should be able to progress relatively swiftly through your journey to Cloud computing : 9. Is your data in the Cloud free from any state or federal record retention laws? 10. Can you manage, maintain and configure the system without the need for IT programmers or other IT specialists? 11. Can you implement the system without a major re-design of your business processes? 12. Is your data free from specific legislation (Eg Privacy Act) or is not subject to contractual obligations (eg major customer contract)? 13. Are you happy placing your most sensitive / critical and important intellectual property in the Cloud? 14. Are you looking to use the Cloud system for a short period of time only? (ie: Serving a short term need such as a major project)
  17. 17. 7. Cloud – The future is now1. Cloud technology, as with any other innovation, has the potential to do things cheaper, faster and better.2. Cloud has the potential to be a real game changer for the astute3. Deliberately define your strategy now: • Be an early adopter, or • A fast follower, and leap-frog the early adopters be capitalising on their experiences4. To achieve the real benefits of Cloud technologies, understand: • the true cost • the value • the risk • when to buy • what to buy, and • when to exit the technology and/or switch horses.
  18. 18. 8. Discussions and questions
  19. 19. Thank youRob Livingstone Advisory Pty Ltd ABN 41 146 643 165W1: www.rob-livingstone.comW2: www.navigatingthroughthecloud.comE: rob@rob-livingstone.comP: +61 2 8005 1972P: +1 609 843 0349M: +61 419 632 673F: +61 2 9879 5004 rladvisory© All rights reserved. Unauthorised redistribution not without prior approval