Risk & Compliance



                      Cloud Computing
      Paradigm shift and considerations
                       ...
Contents


• Paradigm shift: from on-premise technology to on-demand services
• Considerations: how to orchestrate
• Steps...
Paradigm shift: current challenges for corporations


• Cost savings
   –   Economical low tide

   –   Ever increasing co...
Paradigm shift: IT as an hindrance


• Increasing expenditures
   –   Higher cost for design, development, implementation ...
Paradigm shift: cloud computing as the model of choice


• Transparent cost structures
   –   Pay for what you use

   –  ...
Considerations: orchestration


• From technological complexity to governance challenges
   –   Hybrid environment of inte...
Considerations: assurance on security as an example


• External data storage
   –   Logging and monitoring

   –   Backup...
Considerations: assurance on security in practice


• Standards for ‘traditional IT’
   –   Partly obsolete and partly irr...
Steps forward: devise strategy


• Which parts can be moved to the cloud?
   –   Define available cloud services versus bu...
Steps forward: assess and manage risks


• What is the ecosystem?
   –   Identify parties involved and their roles

   –  ...
Steps forward: keep your eyes open


• What is the impact on the (IT) organization?
   –   Diminishing role of the interna...
Contact



Drs. Mike Chung RE

Manager

KPMG Advisory N.V.

E-mail: chung.mike@kpmg.nl

Mobile: +31 (0)6 1455 9916




   ...
About the conductor



• Willem Mengelberg (1871 – 1951) was one of the most famous and celebrated
  conductors of his gen...
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Cloud computing paradigm shift and considerations

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Cloud computing paradigm shift and considerations. How to orchestrate IT?

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Cloud computing paradigm shift and considerations

  1. 1. Risk & Compliance Cloud Computing Paradigm shift and considerations September 2010 drs. Mike Chung RE ADVISORY
  2. 2. Contents • Paradigm shift: from on-premise technology to on-demand services • Considerations: how to orchestrate • Steps forward: how to prepare for the next phase © 2010 KPMG ELLP, the member firm of KPMG International, a Swiss cooperative. All rights reserved. Printed in the Netherlands
  3. 3. Paradigm shift: current challenges for corporations • Cost savings – Economical low tide – Ever increasing cost of IT • More agility – Fluctuating demand – Mobile workforce • Innovation – Faster time-to-market – On-demand requirements © 2010 KPMG ELLP, the member firm of KPMG International, a Swiss cooperative. All rights reserved. Printed in the Netherlands
  4. 4. Paradigm shift: IT as an hindrance • Increasing expenditures – Higher cost for design, development, implementation and maintenance – Higher energy cost • Rigid – Static supply of IT resources – Based on traditional client-server principle • Too complex to change – Spaghetti of interfaces – Various IT models © 2010 KPMG ELLP, the member firm of KPMG International, a Swiss cooperative. All rights reserved. Printed in the Netherlands
  5. 5. Paradigm shift: cloud computing as the model of choice • Transparent cost structures – Pay for what you use – Marginal CapEx and operational cost • Flexible – Easy to upscale and to downsize – Accessible from multiple points on the internet • On-demand – Instantly available – IT as commodity © 2010 KPMG ELLP, the member firm of KPMG International, a Swiss cooperative. All rights reserved. Printed in the Netherlands
  6. 6. Considerations: orchestration • From technological complexity to governance challenges – Hybrid environment of internal IT, outsourced parts and cloud computing – Complex ecosystem of the cloud (integrators, aggregators, vendors and third parties) • Less control – IT assets outside the internal perimeter – Vendor lock-in • Ever changing landscape – Hard-to-predict pace of changes and dominant standards – New services and niche players © 2010 KPMG ELLP, the member firm of KPMG International, a Swiss cooperative. All rights reserved. Printed in the Netherlands
  7. 7. Considerations: assurance on security as an example • External data storage – Logging and monitoring – Backup and recovery • Multi-tenancy/resource pooling – Data - and resource segregation – Identity & Access Management • Conflicting controls and legislations – Vendor’s security controls versus internal requirements – Global delivery of services versus national/local legislations © 2010 KPMG ELLP, the member firm of KPMG International, a Swiss cooperative. All rights reserved. Printed in the Netherlands
  8. 8. Considerations: assurance on security in practice • Standards for ‘traditional IT’ – Partly obsolete and partly irrelevant – Static standards versus dynamic reality • Free format auditing statements – Many variations on approach and controls – Wide intervals • Competent auditors? – Existing standards and controls as starting points – Emphasis on IT management processes © 2010 KPMG ELLP, the member firm of KPMG International, a Swiss cooperative. All rights reserved. Printed in the Netherlands
  9. 9. Steps forward: devise strategy • Which parts can be moved to the cloud? – Define available cloud services versus business needs – Determine commodity services versus business specific services • What is the business case? – Assess options – Assess depreciation and life cycle of IT assets • What is the roadmap? – Define migration/transition – Define architecture and orchestration © 2010 KPMG ELLP, the member firm of KPMG International, a Swiss cooperative. All rights reserved. Printed in the Netherlands
  10. 10. Steps forward: assess and manage risks • What is the ecosystem? – Identify parties involved and their roles – Assess different incident/problem scenarios • What is the difference? – Assess current situation versus future state – Identify which risks and mitigations are applicable • Which dimensions must be covered? – Assess risks on various dimensions (compliance, vendor, technology, data, operation, finance) – Determine responsibilities and accountabilities © 2010 KPMG ELLP, the member firm of KPMG International, a Swiss cooperative. All rights reserved. Printed in the Netherlands
  11. 11. Steps forward: keep your eyes open • What is the impact on the (IT) organization? – Diminishing role of the internal IT department – Importance of contract - and vendor management – New possibilities and responsibilities • What will the cloud market bring? – More confusion and diffusion – Requirement-driven services – Oligarchisation of IT © 2010 KPMG ELLP, the member firm of KPMG International, a Swiss cooperative. All rights reserved. Printed in the Netherlands
  12. 12. Contact Drs. Mike Chung RE Manager KPMG Advisory N.V. E-mail: chung.mike@kpmg.nl Mobile: +31 (0)6 1455 9916 © 2010 KPMG ELLP, the member firm of KPMG International, a Swiss cooperative. All rights reserved. Printed in the Netherlands
  13. 13. About the conductor • Willem Mengelberg (1871 – 1951) was one of the most famous and celebrated conductors of his generation • He has been the principal conductor of Amsterdam’s Concertgebouw Orchestra for over 45 years • He was praised for his orchestral conductings of the works of Gustav Mahler, Richard Strass and Béla Bartók • Richard Strass dedicated his masterpiece ‘Ein Heldenleben’ to Willem Mengelberg and the Concertgebouw Orchestra • Mengelberg was banned by the Dutch government after the Second World War • Although he was never fully rehabilitated, Mengelberg’s recordings are still enjoyed by millions of admirers all over the world © 2010 KPMG ELLP, the member firm of KPMG International, a Swiss cooperative. All rights reserved. Printed in the Netherlands

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