Open Group Cloud Panel Forecasts Transition Phase for Enterprise IT Architecture
Open Group Cloud Panel Forecasts Transition Phase forEnterprise IT ArchitectureTranscript of a sponsored podcast panel discussion from The Open Group 2011 U.S. Conferenceon newly emerging cloud models and their impact on business and government.Listen to the podcast. Find it on iTunes/iPod and Podcast.com. Download the transcript. Sponsor:The Open GroupDana Gardner: Hi, this is Dana Gardner, Principal Analyst at Interarbor Solutions, and yourelistening to BrieﬁngsDirect.We now present a sponsored podcast discussion coming to you live from The Open Group 2011Conference in San Diego. Were here the week of February 7, and we have assembled a distinguished panel to examine the expectation of new types of cloud models and perhaps cloud specialization requirements emerging quite soon. By now, were all familiar with the taxonomy around public cloud, private cloud, software as a service (SaaS), platform as a service (PaaS), and my favorite, infrastructure as a service (IaaS), but we thought we would do you all an additional service and examine, ﬁrstly, where these general types of cloud models are actually gaining use and allegiance, and well look atvertical industries and types of companies that are leaping ahead with cloud, as we now deﬁne it.[Disclosure: The Open Group is a sponsor of BrieﬁngsDirect podcasts.]Then, second, were going to look at why one-size-ﬁts-all cloud services may not ﬁt so well in ahighly fragmented, customized, heterogeneous, and specialized IT world.How much of cloud services that come with a true price beneﬁt, and that’s usually at scale andcheap, will be able to replace what is actually on the ground in many complex and uniqueenterprise IT organizations?Whats more, well look at the need for cloud specialization, based on geographic and regionalrequirements, as well as based on the size of these user organizations, which of course can varyfrom 5 to 50,000 seats. Can a few types of cloud work for all of them?Please join me now in welcoming our panel. Here to help us better understand the quest for "ﬁtfor purpose" cloud balance and to predict, at least for some time, the considerable mismatchbetween enterprise cloud wants and cloud provider offerings were here with Penelope Gordon,the cofounder of 1Plug Corporation, based in San Francisco. Welcome, Penelope.Penelope Gordon: Thank you.
Gardner: Were also here with Mark Skilton. He is the Director of Portfolio and Solutions in theGlobal Infrastructure Services with Capgemini in London. Thank you for coming, Mark.Mark Skilton: Thank you.Gardner: Ed Harrington joins us. He is the Principal Consultant in Virginia for the UK-basedArchitecting the Enterprise organization. Thank you, Ed.Ed Harrington: Thank you.Gardner: Tom Plunkett is joining us. He is a Senior Solution Consultant with Oracle inHuntsville, Alabama.Tom Plunkett: Thank you, Dana.Gardner: And lastly, were here with TJ Virdi. He is Computing Architect in the CAS IT SystemArchitecture Group at Boeing based in Seattle. Welcome.TJ Virdi: Thank you.Gardner: Let me go ﬁrst to you, Mark Skilton. One size ﬁts all has rarely worked in IT. If it has,it has been limited in its scope and, most often, leads to an additional level of engagement tomake it work with whats already there. Why should cloud be any different?Three areasSkilton: Well, Dana, from personal experience, there are probably three areas of adaptation of cloud into businesses. For sure, there are horizontal common services to which, what you call, the homogeneous cloud solution could be applied common to a number of business units or operations across a market. But, were starting to increasingly see the need for customization to meet vertical competitive needs of a company or the decisions within that large company. So, differentiation and business models are still there, they are still in platform cloud as they were in the pre-cloud era. But, the key thing is that were seeing a different kind of potential that abusiness can do now with cloud -- a more elastic, explosive expansion and contraction of abusiness model. Were seeing fundamentally the operating model of the business growing, andthe industry can change using cloud technology.So, there are two things going on in the business and the technologies are changing because ofthe cloud.
Gardner: Well, for us to understand where it ﬁts best, and perhaps not so good, is to look atwhere its already working. Ed, you talked about the federal government. They seem to be goinglike gangbusters in the cloud. Why so?Harrington: Perceived cost savings, primarily. The federal government has done some analysis. In particular, the General Services Administration (GSA), has done some considerable analysis on what they think they can save by going to, in their case, a public cloud model for email and collaboration services. Theyve issued a $6.7 million contract to Unisys as the systems integrator, with Google being the cloud services supplier. So, the debate over the beneﬁts of cloud, versus the risks associated with cloud, is still going on quite heatedly. Gardner: How about some other verticals? Where is this working? Weve seenin some pharma, health-care, and research environments, which have a lot of elasticity, it makessense, given that they have very variable loads. Any other suggestions on where this works,Tom?Plunkett: You mentioned variable workloads. Another place where we are seeing a lot ofcustomers approach cloud is when they are starting a new project. Because then, they don’t haveto migrate from the existing infrastructure. Instead everything is brand new. That’s the otherplace where we see a lot of customers looking at cloud, your greenﬁelds.Gardner: TJ, any verticals that you are aware of? What are you seeing that’s working now?Virdi: Its not probably related with any vertical market, but I think what we are really lookingfor speed to put new products into the market or evolve the products that we already have andhow to optimize business operations, as well as reduce the cost. These may be parallel to anyvertical industries, where all these things are probably going to be working as a cloud solution.Gardner: Weve heard the application of "core and context" to applications, but maybe there isan application of core and context to cloud computing, whereby theres not so much core and lotmore context. Is that what youre saying so far?Unstructured dataVirdi: In a sense, you would have to measure not only the structured documents or structureddata, but unstructured data as well. How to measure and create a new product or solutions is thereally cool things you would be looking for in the cloud. And, it has proved pretty easy to put anew solution into the market. So, speed is also the big thing in there.Gardner: Penelope, use cases or verticals where this is working so far?
Gordon: One example in talking about core and context is when you look in retail. You can have two retailers like a Walmart or a Costco, where theyre competing in the same general space, but are differentiating in different areas. Walmart is really differentiating on the supply chain, and so it’s not a good candidate for public cloud computing solutions. We did discuss it that might possibly be a candidate for private cloud computing. But that’s really where theyre going to invest in the differentiating, as opposed to a Costco, where it makes more sense for them to invest in their relationship with their customers and their relationship with theiremployees. Theyre going to put more emphasis on those business processes, and they might bemore inclined to outsource some of the aspects of their supply chain.A speciﬁc example within retail is pricing optimization. A lot of grocery stores need to do pricingoptimization checks once a quarter, or perhaps once a year in some of their areas. It doesntmakes sense for smaller grocery store chains to have that kind of IT capability in house. So,thats a really great candidate, when you are looking at a particular vertical business process tooutsource to a cloud provider who has speciﬁc industry domain expertise.Gardner: So for small and medium businesses (SMBs) that would be more core for them thanothers.Gordon: Right. That’s an example, though, where youre talking about what I would say is aparticular vertical business process. Then, youre talking about a monetization strategy and thenpart of the provider, where they are looking more at a niche strategy, rather than a commodity,where they are doing a horizontal infrastructure platform.Gardner: Ed, you had a thought?Harrington: Yeah, and its along the SMB dimension. Were seeing a lot of cloud uptake in thesmall businesses. I work for a 50-person company. We have one "sort of" IT person and we dovirtually everything in the cloud. Weve got people in Australia and Canada, here in the States,headquartered in the UK, and we use cloud services for virtually everything across that. Imassociated with a number of other small companies and we are seeing big uptake of cloudservices.Gardner: Allow me to be a little bit of a skeptic, because Im seeing these reports from analystﬁrms on the tens of billions of dollars in potential cloud market share and double-digit growthrates for the next several years. Is this going to come from just peripheral application contextactivities, mostly SMBs? What about the core in the enterprises? Does anybody have an exampleof where cloud is being used in either of those?Skilton: In the telecom sector, which is very IT intensive, Im seeing the emergence of their corebusiness of delivering service to a large end user or multiple end user channels, using what I callcloud brokering.
Front-end cloudSo, if where youre going with your question is that, certainly in the telecom sector were seeingthe emergence of front end cloud, customer relationship management (CRM) type systems andalso sort of back-end content delivery engines using cloud.The fundamental shift away from the service orientated architecture (SOA) era is that wereseeing more business driven self-service, more deployment of services as a business model,which is a big difference of the shift of the cloud. Particularly in telco, were seeing almost anexplosion in that particular sector.Gordon: A lot of companies don’t even necessarily realize that theyre using cloud services,particularly when you talk about SaaS. There are a number of SaaS solutions that are becomingmore and more ubiquitous. If you look at large enterprise company recruiting sites, often youwill see Taleo down at the bottom. Taleo is a SaaS. So, that’s a cloud solution, but it’s just notthought necessarily of in that context.Gardner: Right. Tom?Plunkett: Another place were seeing a lot of growth with regards to private clouds is actually on the defense side. The Defense Department is looking at private clouds, but they also have to deal with this core and context issue. Were in San Diego today. The requirements for a shipboard system are very different from the land-based systems. Ships have to deal with narrow bandwidth and going disconnected. They also have to deal with coalition partners or perhaps they are providing humanitarian assistance and they are dealing even with organizations we wouldn’t normallyconsider military. So, they have to deal with lots of information, assurance issues, and havecompletely different governance concerns that we normally think about for public clouds.Gardner: However, in the last year or two, the assumption has been that this is something that’sgoing to impact every enterprise, and everybody should get ready. Yet, Im hearing mostly thiscreeping in through packaged applications on a on-demand basis, SMBs, greenﬁeldorganizations, perhaps where high elasticity is a requirement.What would be necessary for these cloud providers to be able to bring more of the coreapplications the large enterprises are looking for? What’s the new set of requirements? As Ipointed out, we have had a general category of SaaS and development, elasticity, a handful ofinfrastructure services. What’s the next set of requirements thats going to make it palatable forthese core activities and these large enterprises to start doing this? Let me start with you,Penelope.
Gordon: It’s an interesting question and it was something that we were discussing in a sessionyesterday afternoon. Here is a gentleman from a large telecommunications company, and fromhis perspective, trust was a big issue. To him, part of it was just an immaturity of the market,speciﬁcally talking about what the new style of cloud is and that branding. Some of the aspectsof cloud have been around for quite some time.Look at Linux adoption as an analogy. A lot of companies started adopting Linux, but it was forperipheral applications and peripheral services, some web services that weren’t business critical.It didn’t really get into the core enterprise until much later.Were seeing some of that with cloud. It’s just a much bigger issue with cloud, especially as youstart looking at providers wanting to moving up the food chain and providing greater value. Thismeans that they have to have more industry knowledge and that they have to have morespecialization. It becomes more difﬁcult for large enterprises to trust a vendor to have that kindof knowledge.No governanceAnother aspect of what came up in the afternoon is that, at this point, while we talk about publiccloud speciﬁcally, it’s not the same as saying it’s a public utility. We talk about "public utility,"but there is no governance, at this point, to say, "Here is certiﬁcation that these companies havebeen tested to meet certain delivery standards." Until that exists, it’s going to be difﬁcult forsome enterprises to get over that trust issue.Gardner: Assuming that the trust and security issues are worked out over time, that experienceleads to action, it leads to trust, it leads to adoption, and we have already seen that with SaaSapplications. Weve certainly seen it with the federal government, as Ed pointed out earlier.Let’s just put that aside as one of the requirements that’s already on the drawing board and thatwe probably can put a checkmark next to at some point. What’s next? What aboutcustomization? What about heterogeneity? What about some of these other issues that are typicalin IT, Mark Skilton?Skilton: One of the under-played areas is PaaS. We hear about lock-in of technology caused bythe use of the cloud, either putting too much data in or doing customization of parameters andyou lose the elastic features of that cloud.As to your question about what do vendors or providers need to do more to help the customer usethe cloud, the two things were seeing are: one, more of an appliance strategy, where they canbuy modular capabilities, so the licensing issue, solutioning issue, is more contained. The clientcan look at it more in a modular appliance sort of way. Think of it as cloud in a box.The second thing is that we need to be seeing is much more offering transition services,transformation services, to accelerate the use of the cloud in a safe way, and I think that’s
something that we need to really push hard to do. Theres a great quote from a client, "It’s not thedestination, it’s the journey to the cloud that I need to see."Gardner: You mentioned PaaS. We haven’t seen too much yet with a full mature offering of thefull continuum of PaaS to IaaS. Thats one where new application development activities andnew integration activities would be built of, for, and by the cloud and coordinated between thedev and the ops, with the ops being any number of cloud models -- on-premises, off-premises,co-lo, multi-tenancy, and so forth.So what about that? Is that another requirement that there is continuity between the past and theinfrastructure and deployment, Tom?Plunkett: Were getting there. PaaS is going to be a real requirement going forward, simplybecause that’s going to provide us the ﬂexibility to reach some of those core applications that wewere talking about before. The further you get away from the context, the more youre focusingon what the business is really focused in on, and that’s going to be the core, which is going torequire effective PaaS.Gardner: TJ.More regulatoryVirdi: I want to second that, but at the same time, were looking for more regulatory and other kind of licensing and conﬁguration issues as well. Those also make it a little better to use the cloud. You don’t really have to buy, or you can go for the demand. You need to make your licenses a little bit better in such a way that you can just put the product or business solutions into the market, test the water, and then you can go further on that. Gardner: Penelope, where do you see any beneﬁt of having a coordinated or integrated platform and development test and deploy functions? Is that going to bring this to a more core usage in large enterprises?Gordon: It depends. I see a lot more of the buying of cloud moving out to the non-IT line ofbusiness executives. If that accelerates, there is going to be less and less focus. Companies arereally separating now what is differentiating and what is core to my business from the rest of it.Theres going to be less emphasis on, "Let’s do our scale development on a platform level" andmore, "Let’s really seek out those vendors that are going to enable us to effectively integrate, sowe don’t have to do double entry of data between different solutions. Lets look out for thesolutions that allow us to apply the governance and that effectively let us tailor our experiencewith these solutions in a way that doesn’t impinge upon the provider’s ability to deliver in a costeffective fashion."
That’s going to become much more important. So, a lot of the development onus is going to beon the providers, rather than on the actual buyers.Gardner: Now, this is interesting. On one hand, we have non-IT people, business people,specifying, acquiring, and using cloud services. On the other hand were perhaps going to seemore PaaS, the new application development, be it custom or more of a SaaS type of offeringthat’s brought in with a certain level of adjustment and integration. But, these are going offwithout necessarily any coordination. At some point, they are going to even come together. It’sinevitable, another "integrationness" perhaps.Mark Skilton, is that what you see, that we have not just one cloud approach but multipleapproaches and then some need to rationalize?Skilton: There are two key points. Theres a missing architecture practice that needs to be there,which is a workers analysis, so that you design applications to ﬁt speciﬁc infrastructurecontainers, and youve got a bridge between the the application service and the infrastructureservice. There needs to be a piece of work by enterprise architects that starts to bring thattogether as a deliberate design for applications to be able to operate in the cloud, and the PaaSplatform is a perfect environment.The second thing is that theres a lack of policy management in terms of technical governance,and because of the lack of understanding, there needs to be more of a matching exercise goingon. The key thing is that that needs to evolve.Part of the work were doing in The Open Group with the Cloud Computing Work Group is todevelop new standards and methodologies that bridge those gaps between infrastructure, PaaS,platform development, and SaaS.Gardner: We already have the Trusted Technology Forum. Maybe soon well see an open trustedcloud technology forum.Skilton: I hope so.Gardner: Ed Harrington, you mentioned earlier that the role of the enterprise architect is goingto beneﬁt from cloud. Do you see what we just described in terms of dual tracks, multipleinception points, heterogeneity, perhaps overlap and redundancy? Is that where the enterprisearchitect ﬂourishes?Shadow ITHarrington: I think we talked about line management IT getting involved in acquiring cloudservices. If you think weve got this thing called "shadow IT" today, wait a few years. Weregoing to have a huge problem with shadow IT.
From the architect’s perspective, theres lot to be involved with and a lot to play with, as I said inmy talk. Theres an awful lot of analysis to be done -- what is the value that the cloud solutionbeing proposed is going to be supplying to the organization in business terms, versus the riskassociated with it? Enterprise architects deal with change, and that’s what were talking about.Were talking about change, and change will inherently involve risk.Gardner: TJ.Virdi: All these business decisions are going to be coming upstream, and business executivesneed to be more aware about how cloud could be utilized as a delivery model. The enterprisearchitects and someone with a technical background needs to educate or drive them to make theright decisions and choose the proper solutions.It has an impact how you want to use the cloud, as well as how you get out of it too, in case youwant to move to different cloud vendors or providers. All those things come into play upstreamrather than downstream.Gardner: We all seem to be resigned to this world of, "Well, here we go again. Were going to sitback and wait for all these different cloud things to happen. Then, well come in, like the sheriffon the white horse, and try to rationalize." Why not try to rationalize now before we get to thatpoint? What could be done from an architecture standpoint to head off mass confusion aroundcloud? Let me start at one end and go down the other. Tom?Plunkett: One word: governance. We talked about the importance of governance increasing asthe IT industry went into SOA. Well, cloud is going to make it even more important. Governancethroughout the lifecycle, not just at the end, not just at deployment, but from the very beginning.Gardner: TJ.Virdi: In addition to governance, you probably have to ﬁgure out how you want to plan to adaptto the cloud also. You don’t want to start as a Big Bang theory. You want to start in incrementalsteps, small steps, test out what you really want to do. If that works, then go do the other thingsafter that.Gardner: Penelope, how about following the money? Doesn’t where the money ﬂows in and outof organizations tend to have a powerful impact on motivating people or getting them movingtowards governance or not?Gordon: I agree, and towards that end, its enterprise architects. Enterprise architects need tobreak out of the idea of focusing on how to address the boundary between IT and the businessand talk to the business in business terms.One way of doing that that I have seen as effective is to look at it from the standpoint of portfoliomanagement. Where you were familiar with ﬁnancial portfolio management, now you arelooking at a service portfolio, as well as looking at your overall business and all of your businessprocesses as a portfolio. How can you optimize at a macro level for your portfolio of all the
investment decisions youre making, and how the various processes and services are enabled?Then, it comes down to, as you said, a money issue.Gardner: Perhaps one way to head off what we seem to think is an inevitable cloud chaossituation is to invoke more shared services, get people to consume services and think about howto pay for them along the way, regardless of where they come from and regardless of whospeciﬁed them. So back to SOA, back to ITIL, back to the blocking and tackling thats just goodenterprise architecture. Anything to add to that, Mark?Not more of the sameSkilton: I think its a mistake to just describe this as more of the same. ITIL, in my view, needsto change to take into account self-service dynamics. ITIL is kind of a provider servicemanagement process. Its thing that you do to people. Cloud changes that direction to the otherway, and I think thats something that needs to be done.Also, fundamentally the data center and network strategies need to be in place to adopt cloud.From my experience, the data center transformation or refurbishment strategies or nextgeneration networks tend to be done as a separate exercise from the applications area. So astrong, strong recommendation from me would be to drive a clear cloud route map to your datacenter.Gardner: So, perhaps a regulating effect on the self-selection of cloud services would be that thenetwork isnt designed for it and its not going to help.Skilton: Exactly.Gardner: Thats one way to govern your cloud. Ed Harrington, any other further thoughts onworking towards a cloud future without the pitfalls?Harrington: Again, the governance, certiﬁcation of some sort. Im not in favor of regulation, butI am in favor of some sort of third party certiﬁcation of services that consumers can rely uponsafely. But, I will go back to what I said earlier. Its a combination of governance, treating thecloud services as services per se, and enterprise architecture.Gardner: What about the notion that was brought up earlier about private clouds being animportant on-ramp to this? If I were a public cloud provider, I would do my market research onwhats going on in the private clouds, because I think they are going to be incubators to whatmight then become hybrid and ultimately a full-ﬂedged third-party public cloud providing assetsand services.What can we learn from looking at whats going on with private cloud now, seemingly a lot oftrying to reduce cost and energy consumption, but what does that tell us about what we shouldexpect in the next few years? Again, lets start with you, Tom.
Plunkett: What were seeing with private cloud is that it’s actually impacting governance,because one of the things that you look at with private cloud is chargeback between differentinternal customers. This is forcing these organizations to deal with complex money, businessissues that they dont really like to do.Nowadays, its mostly vertical applications, where youve got one owner who is paying foreverything. Now, were actually going back to, as we were talking about earlier, dealing withsome of the tricky issues of SOA.Gardner: TJ, private cloud as an incubator. What we should expect?Securing your dataVirdi: Conﬁguration and change management -- how in the private cloud we are adapting to itand supporting different customer segments is really the key. This could be utilized in the publiccloud too, as well as how you are really securing your information and data or your businessknowledge. How you want to secure that is key, and thats why the private cloud is there. If wecan adapt to or mimic the same kind of controls in the public cloud, maybe well have moreadoptions in the public cloud too.Gardner: Penelope, any thoughts on that, the private to public transition?Gordon: I also look at it in a little different way. For example, in the U.S., you have the NationalSecurity Agency (NSA). For a lot of what you would think of as their non-differentiatingprocesses, for example payroll, they cant use ADP. They cant use that SaaS for payroll, becausethey cant allow the identities of their employees to become publicly known.Anything that involves their employee data and all the rest of the information within the agencyhas to be kept within a private cloud. But, theyre actively looking at private cloud solutions forsome of the other beneﬁts of cloud.In one sense, I look at it and say that private cloud adoption to me tells a provider that this is anarea thats not a candidate for a public-cloud solution. But, private clouds could also be anotherchannel for public cloud providers to be able to better monetize what theyre doing, rather thanjust focusing on public cloud solutions.Gardner: So, then, youre saying this is a two-way street. Just as we could foresee someonearchitecting a good private cloud and then looking to take that out to someone else’sinfrastructure, youre saying there is a lot of public services that for regulatory or other reasonsmight then need to come back in and be privatized or kept within the walls. Interesting.Mark Skilton, any thoughts on this public-private tension and/or beneﬁt?
Skilton: I asked an IT service director the question about what was it like running a cloudservice for the account. This is a guy who had previously been running hosting and managementand with many years experience.The surprising thing was that he was quite shocked that the disciplines that he previously had forescalating errors and doing planned maintenance, monitoring, billing and charging back to thecustomer fundamentally were changing, because it had to be done more in real time. You have toﬁx before it fails. You can’t just wait for it to fail. You have to have a much more disciplinedapproach to running a private cloud.The lessons that were learning in running private clouds for our clients is the need to have amuch more of a running-IT-as-a-business ethos and approach. We ﬁnd that if customers try to doit themselves, either they may ﬁnd that difﬁcult, because they are used to buying that as aservice, or they have to change their enterprise architecture and support service disciplines tooperate the cloud.Gardner: Perhaps yet another way to offset potential for cloud chaos in the future is to developthe core competencies within the private-cloud environment and do it sooner rather than later?This is where you can cut your teeth or get your chops, some number of metaphors come tomind, but this is something that sounds like a priority. Would you agree with that Ed, coming upwith a private-cloud capability is important?Harrington: Its important, and its probably going to dominate for the foreseeable future,especially in areas that organizations view as core. They view them as core, because they believethey provide some sort of competitive advantage or, as Penelope was saying, security reasons.ADPs a good idea. ADP could go into NSA and set up a private cloud using ADP and NSA. Ithink is a really good thing.Trust a big issueBut, I also think that trust is still a big issue and its going to come down to trust. Its going totake a lot of work to have anything that is perceived by a major organization as core andproviding differentiation to move to other than a private cloud.Gardner: TJ.Virdi: Private clouds actually allow you to make more business modular. Your capability isgoing to be a little bit more modular and interoperability testing could happen in the privatecloud. Then you can actually use those same kind of modular functions, utilize the public cloud,and work with other commercial off-the-shelf (COTS) vendors that really package this as newholistic solutions.Gardner: Does anyone consider the impact of mergers and acquisitions on this? Were seeing theeconomy pick up, at least in some markets, and were certainly seeing globalization, a verypowerful trend with us still. We can probably assume, if youre a big company, that youre going
to get bigger through some sort of merger and acquisition activity. Does a cloud strategyameliorate the pain and suffering of integration in these business mergers, Tom?Plunkett: Well, not to speak on behalf of Oracle, but weve gone through a few mergers andacquisitions recently, and I do believe that having a cloud environment internally helps quite abit. Speciﬁcally, TJ made the earlier point about modularity. Well, when were looking atmodules, theyre easier to integrate. It’s easier to recompose services, and all the beneﬁts of SOAreally.Gardner: TJ, mergers and acquisitions in cloud.Virdi: It really helps. At the same time, we were talking about legal and regulatory compliancestuff. EU and Japan require you to put the personally identiﬁable information (PII) in theirgeographical areas. Cloud could provide a way to manage those things without having thehosting where you have your own business.Gardner: Penelope, any thoughts, or maybe even on a slightly different subject, of being able togrow rapidly vis-à-vis cloud experience and expertise and having architects that understand it?Gordon: Some of this comes back to some of the discussions we were having about the extradiscipline that comes into play, if you are going to effectively consume and provide cloudservices, if you do become much more rigorous about your change management, yourconﬁguration management, and if you then apply that out to a larger process level.So, if you deﬁne certain capabilities within the business in a much more modular fashion, then,when you go through that growth and add on people, you have documented procedures andprocesses. It’s much easier to bring someone in and say, "Youre going to be a product manager,and that job role is fungible across the business."That kind of thinking, the cloud constructs applied up at a business architecture level, enables akind of business expansion that we are looking at.Gardner: Mark Skilton, thoughts about being able to manage growth, mergers and acquisitions,even general business agility vis-à-vis more cloud capabilities.Skilton: Right now, Im involved in merging in a cloud company that we bought last year inMay, and I would say yes and no. The no point is that Im trying to bundle this service that weacquired in each product and with which we could add competitive advantage to the services thatwe are offering. Ive had a problem with trying to bundle that into our existing portfolio. Ive gotto work out how they will ﬁt and deploy in our own cloud. So, that’s still a complexity problem.
Faster launchBut, the upside is that I can bundle that service that we acquired, because we wanted to get thatadditional capability, and rewrite design techniques for cloud computing. We can then launchthat bundle of new service faster into the market.It’s kind of a mixed blessing with cloud. With our own cloud services, we acquire these newcompanies, but we still have the same IT integration problem to then exploit that capability weveacquired.Gardner: That might be a perfect example of where cloud is or isn’t. When you run into theissue of complexity and integration, it doesn’t compute, so to speak.Skilton: It’s not plug and play yet, unfortunately.Gardner: Ed, what do you think about this growth opportunity, mergers and acquisitions, a goodthing or bad thing?Harrington: It’s a challenge. I think, as Mark presented it, its got two sides. It depends a lot onhow close the organizations are, how close their service portfolios are, to what degree has eachof the organizations adapted the cloud, and is that going to cause conﬂict as well. So I think thereis potential.Skilton: Each organization in the commercial sector can have different standards, and then youstill have that interoperability problem that we have to translate to make it beneﬁt, the postmerger integration issue.Gardner: Weve been discussing the practical requirements of various cloud computing models,looking at core and context issues where cloud models would work, where they wouldn’t. And,we have been thinking about how we might want to head off the potential mixed bag of cloudmodels in our organizations and what we can do now to make the path better, but perhaps alsomake our organizations more agile, service oriented, and able to absorb things like rapid growthand mergers.Id like to thank you all for joining and certainly want to thank our guests. This is a sponsoredpodcast discussion coming to you from The Open Group’s 2011 Conference in San Diego. Werehere the week of February 7, 2011.A big thank you now to Penelope Gordon, cofounder of 1Plug Corporation. Thanks.Gordon: Thank you.Gardner: Mark Skilton, Director of Portfolio and Solutions in the Global Infrastructure Serviceswith Capgemini. Thank you, Mark.
Skilton: Thank you very much.Gardner: Ed Harrington, Principal Consultant in Virginia for the UK-based Architecting theEnterprise.Harrington: Thank you, Dana.Gardner: Tom Plunkett, Senior Solution Consultant with Oracle. Thank you.Plunkett: Thank you, Dana.Gardner: TJ Virdi, the Computing Architect in the CAS IT System Architecture group atBoeing.Virdi: Thank you.Gardner: Im Dana Gardner, Principal Analyst at Interarbor Solutions. Youve been listening to asponsored BrieﬁngsDirect podcast. Thanks for joining, and come back next time.Listen to the podcast. Find it on iTunes/iPod and Podcast.com. Download the transcript. Sponsor:The Open GroupTranscript of a sponsored podcast panel discussion from The Open Group 2011 U.S. Conferenceon newly emerging cloud models and their impact on business and government. CopyrightInterarbor Solutions, LLC, 2005-2011. All rights reserved.You may also be interested in: • Examining the Current State of the Enterprise Architecture Profession with the Open Groups Steve Nunn • Infosys Survey Shows Enterprise Architecture and Business Architecture on Common Ascent to Strategy Enablers • The Open Groups Cloud Work Group Advances Understanding of Cloud-Use Beneﬁts for Enterprises