Risk & Compliance




KPMG’s 2010 Cloud Computing Survey
The findings at a glance – June 2010 Oslo

drs. Mike Chung RE



...
Cloud computing: serious offering or hype?

• According to vendors:
 – Cloud computing will ease implementation, lower cos...
What is cloud computing?

• Cloud computing is putting your data on someone else’s hard disk and accessing
  it via a netw...
View on the cloud: cloud computing is moving from
hype to future

• Cloud computing is the future model of IT according to...
What does cloud computing primarily mean for your organization?




                  10%
                                ...
Statement: Cloud computing is the future model of IT




                                                   0
            ...
Current state of cloud computing: to implementation
and beyond

• Almost 60 percent of decision-makers indicate that they ...
Is your organization willing to use/adopt cloud computing for (parts of) your IT?




                       8


         ...
What cloud computing services are you already using or implementing?

45


40


35


30


25


20


15


10


 5


 0




...
Drivers: driven by cost savings and more flexibility

• Main drivers to adopt cloud computing are cost savings, improved f...
What benefits do you expect from cloud computing?


         Improved security


        Better functionality


     Advan...
Obstacles: security as the main concern

• Almost two-third of the respondents consider security a blocking factor for clo...
What are your main concerns regarding the use of cloud computing?


       Immature technology


       Lack of functional...
What type of knowledge/expertise is lacking/insufficient within your organization regarding cloud
                        ...
Security issues of cloud computing are real

• Hackers stole credentials of Salesforce.com’s customers via phishing attack...
Security risks: specific factors concerning the cloud

• External data storage
• Multi-tenancy
• Use of the (public) inter...
Specific factor concerning the cloud: external data
storage

• Weak control of data (failing backup, recovery, destruction...
Specific factor concerning the cloud: multi-tenancy

• Inadequate segregation of data between different customers (data co...
Specific factor concerning the cloud: use of the (public)
internet

• Unclear and unaddressed accountability, ownership
• ...
Specific factor concerning the cloud: integration with
the internal IT environment

• Unclear (network) perimeters
• Diffi...
Security benefits

• Centralized security
    Concentration of security expertise
    Economy-of-scale
• High accessibil...
Learning from early adopters: room for improvement, but no
turning back


• Half of the participants indicate that the exp...
Conclusion

• Cloud computing is emerging and shows no signs of stopping
• Many organizations are already using cloud comp...
Survey method

• Method
 – Online questionnaire
 – On-site interviews
 – From March 2010 – May 2010
• Participants
 – 125 ...
Contact

Drs. Mike Chung RE
Manager
KPMG Advisory N.V.
E-mail: chung.mike@kpmg.nl
Mobile: +31 (0)6 1455 9916


Please cont...
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Cloud computing Oslo presentation - KPMG

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Cloud computing Oslo presentation - KPMG

  1. 1. Risk & Compliance KPMG’s 2010 Cloud Computing Survey The findings at a glance – June 2010 Oslo drs. Mike Chung RE ADVISORY
  2. 2. Cloud computing: serious offering or hype? • According to vendors: – Cloud computing will ease implementation, lower costs, improve scalability, enhance accessibility and reduce complexity – All segments of IT can be safely moved to the cloud • According to IT analysts: – Undoubtly, cloud computing is the IT model of choice for 2010 and beyond – Cloud computing will end the era of client-server architecture, hence changing the entire IT landscape • Main questions amongst CEOs and CIOs: – What is cloud computing really? – What are the benefits of moving to the cloud? – What risks are associated with cloud computing? © 2010 KPMG ELLP, the member firm of KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. 2
  3. 3. What is cloud computing? • Cloud computing is putting your data on someone else’s hard disk and accessing it via a network.. – Public cloud: ..with a lot of other people too – Private/dedicated cloud: ..alone – Hybrid cloud: ..mix of the above SaaS PaaS IaaS © 2010 KPMG ELLP, the member firm of KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. 3
  4. 4. View on the cloud: cloud computing is moving from hype to future • Cloud computing is the future model of IT according to the vast majority of decision-makers • Very few regard cloud computing as a hype that will subside • One out of two organizations have already included cloud computing services into their IT strategy “I don’t believe cloud computing is a hype. Contrary to other IT ‘miracles’ with a lot of technical mumbo- jumbo, even I understand cloud computing. Go to the internet and get the service you need. I really like this simplicity.” Business director of a telecom organization © 2010 KPMG ELLP, the member firm of KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. 4
  5. 5. What does cloud computing primarily mean for your organization? 10% 16% 2% 5% An interesting technical offering An interesting business offering A type of outsourcing of IT A hype that will subside Cloud computing is an unknown or unclear subject Other 33% 34% © 2010 KPMG ELLP, the member firm of KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. 5
  6. 6. Statement: Cloud computing is the future model of IT 0 12 18 Strongly disagree Disagree Undecided 29 Agree Strongly agree 41 © 2010 KPMG ELLP, the member firm of KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. 6
  7. 7. Current state of cloud computing: to implementation and beyond • Almost 60 percent of decision-makers indicate that they are currently using, or will be using cloud computing in the short term • The most commonly used services that are provided via the cloud are data storage, application hosting and e-mail • Many companies are considering to adopt cloud services for desktop solutions, CRM and business specific applications • Government organizations and financial institutions are relatively reluctant to use cloud computing services when compared with other sectors in the market “When we realized that we were using Gmail and Facebook already, the step to implement cloud computing in our corporate environment wasn’t a big one.” CIO of a firm in the industrial markets sector © 2010 KPMG ELLP, the member firm of KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. 7
  8. 8. Is your organization willing to use/adopt cloud computing for (parts of) your IT? 8 W e are already using cloud computing 15 W e expect to adopt cloud computing within the upcoming 12 months 45 On the long term (>12 months) we see cloud computing as a viable option Perhaps, at this moment there is insufficient knowledge within our organization to judge on cloud computing 19 W e have no intention to adopt cloud computing 13 © 2010 KPMG ELLP, the member firm of KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. 8
  9. 9. What cloud computing services are you already using or implementing? 45 40 35 30 25 20 15 10 5 0 BI ty M P B S ng g ge e t c en ifi ar in ER M S ci R gi a ec st /E pm pa ftw C D or sa ho S/ M & sp st ca so lo es BP M e n ve a ss nc er C m io ce at de ne rv na at D nd f fi Se ic si /O Fi n la pl Bu tio op Ap ai ica kt m es E- pl Ap D © 2010 KPMG ELLP, the member firm of KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. 9
  10. 10. Drivers: driven by cost savings and more flexibility • Main drivers to adopt cloud computing are cost savings, improved flexibility and better scalability • Especially large organizations with more than 5.000 computer users quote improved flexibility as an important reason to move to the cloud “The problem with IT ‘solutions’ is that they all require enormous investments in hardware, software and human resources. And too many ROI calculations turn out to be completely bogus. If I can have a solution with no upfront costs, I’m in.” CEO of a firm in the professional services sector © 2010 KPMG ELLP, the member firm of KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. 10
  11. 11. What benefits do you expect from cloud computing? Improved security Better functionality Advanced technology Green IT Switch from CapEx to OpEx Collaboration More (core) business focus Complexity reduction Better scalability Cost savings More flexibility 0 10 20 30 40 50 60 70 80 90 © 2010 KPMG ELLP, the member firm of KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. 11
  12. 12. Obstacles: security as the main concern • Almost two-third of the respondents consider security a blocking factor for cloud computing • Other major concerns are issues regarding compliance, privacy and legal “Cloud computing vendors told me that my data at their locations was as safe as my money in the bank. Since the credit crunch we all know how reliable the banks are.” CISO of a firm in the public services sector © 2010 KPMG ELLP, the member firm of KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. 12
  13. 13. What are your main concerns regarding the use of cloud computing? Immature technology Lack of functionalities Lack of performance Insufficient financial benefits Vendor lock-in Insecure availability Integration issues Privacy issues Compliance issues Legal issues Security issues 0 10 20 30 40 50 60 70 80 © 2010 KPMG ELLP, the member firm of KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. 13
  14. 14. What type of knowledge/expertise is lacking/insufficient within your organization regarding cloud computing? Other Compliance Cloud computing market Technology and implementation Legal Security 0 10 20 30 40 50 60 © 2010 KPMG ELLP, the member firm of KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. 14
  15. 15. Security issues of cloud computing are real • Hackers stole credentials of Salesforce.com’s customers via phishing attacks (2007) • Thousands of customers lost their data in the cloud due to the ‘Sidekick disaster’ of Microsoft/T-Mobile (2009) • Botnet incident at Amazon EC2 infected customer’s computers and compromised their privacy (2009) • Security flaws in GoogleDocs gave erroneous permissions to its users (2009) • Thousands of hotmail accounts were hacked due to technical flaws in Microsoft’s software (2010) • Botnets are increasingly threatening access to internet services • SPAM, excessive traffic of multimedia sites and P2P networks are clogging the internet’s arteries © 2010 KPMG ELLP, the member firm of KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. 15
  16. 16. Security risks: specific factors concerning the cloud • External data storage • Multi-tenancy • Use of the (public) internet • Integration with the internal IT © 2010 KPMG ELLP, the member firm of KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. 16
  17. 17. Specific factor concerning the cloud: external data storage • Weak control of data (failing backup, recovery, destruction) • Legal complications (privacy violation, conflicting/contradicting and often unworkable/archaic legislations) • Uncertain viability (insufficient guarantees regarding continuity and availability of services) • Single point of failure (failure of one cloud vendor/provider means disaster for many customers) • Vendor lock-in (difficulty in getting back the data in open formats and switching to other vendors) © 2010 KPMG ELLP, the member firm of KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. 17
  18. 18. Specific factor concerning the cloud: multi-tenancy • Inadequate segregation of data between different customers (data contamination) • Inadequate Identity & Access Management (erroneous authentication, access and authorization to IT resources and data) • Insufficient logging & monitoring • The weakest link is decisive (virtualization, shared databases) © 2010 KPMG ELLP, the member firm of KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. 18
  19. 19. Specific factor concerning the cloud: use of the (public) internet • Unclear and unaddressed accountability, ownership • Unclear demarcation of responsibilities and control • Limited regulation • A lot of clandestine traffic (Spam) and networks (Botnets) • Exceptionally poorly protected for such an important infrastructure – the internet is commercially the most valuable infrastructure • Extremely dependent on couple of optic fibers and electricity • Threats are virtually unknown to most politicians and decision-makers © 2010 KPMG ELLP, the member firm of KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. 19
  20. 20. Specific factor concerning the cloud: integration with the internal IT environment • Unclear (network) perimeters • Difficulties/discrepancies in matching cloud computing vendor’s security measures with internal security measures, requirements and baselines • Complexity of integration between the cloud and the internal IT © 2010 KPMG ELLP, the member firm of KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. 20
  21. 21. Security benefits • Centralized security  Concentration of security expertise  Economy-of-scale • High accessibility • ‘Nakedness leads to fitness’ © 2010 KPMG ELLP, the member firm of KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. 21
  22. 22. Learning from early adopters: room for improvement, but no turning back • Half of the participants indicate that the expected benefits are achieved within the executed projects. This is far above the success rate of ‘on-premise’ IT implementation projects • Most early adopters of cloud computing are experiencing cost savings, improved flexibility, better scalability as well as more business focus and reduced IT complexity • Organizations that are successfully using cloud computing are still worried about security and privacy as vendors provide marginal assurance • After implementation, it is indicated that integration with existing IT should be improved as well as better transparency regarding architecture and calculation of the costs “We used to think that seemingly everlasting IT projects with uncontrollable expenditures were the norm. When we decided to use CRM from the cloud, it took us less than 3 months with minimal costs to have it up and running. No, we won’t go back.” Business director of a firm in the Industrial markets sector © 2010 KPMG ELLP, the member firm of KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. 22
  23. 23. Conclusion • Cloud computing is emerging and shows no signs of stopping • Many organizations are already using cloud computing • Improved flexibility, better scalability of IT resources as well as cost savings are being realized by moving to the cloud • Security is the main concern and obstacle to the cloud © 2010 KPMG ELLP, the member firm of KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. 23
  24. 24. Survey method • Method – Online questionnaire – On-site interviews – From March 2010 – May 2010 • Participants – 125 participants from over 110 organizations located in the Netherlands – Almost all participants are decision-makers within their organizations • Sectors – Professional services (27 percent) – Financial services (24 percent) – Public sector and Healthcare (21 percent) – Industrial markets and Manufacturing (10 percent) – Other (19 percent) © 2010 KPMG ELLP, the member firm of KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. 24
  25. 25. Contact Drs. Mike Chung RE Manager KPMG Advisory N.V. E-mail: chung.mike@kpmg.nl Mobile: +31 (0)6 1455 9916 Please contact Mike per e-mail for a copy of the survey © 2010 KPMG ELLP, the member firm of KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. 25

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