Making cloud computing work … for
                                     provider and consumer

                            ...
Objectives for the session

     • Provide a context for discussing approaches to “cloud
       computing” in the marketpl...
Agenda

     • Market context for “clouds”
     • Business models for Norwegian cloud businesses
     • Opportunities and ...
About me

     • Business technology planner working with architecture and
       service modelling
          – Enterprise...
“What on earth is Cloud Computing?”*




Copyright © 2009 Accenture All Rights Reserved.   5
“What on earth is Cloud Computing?”*

           A computing-based capability that is offered to
           a consumer in ...
The cloud capability serves enterprise users as
     well as consumers




                                               ...
Enterprise Web vs Consumer Web

     1.      Scale (Users vs Applications)
     2.      Experience (Simplicity vs Function...
What then is a service?
   A service is a task performed (by a provider) to produce a desired result (for a
   customer). ...
Cloud Computing Survey: IT Leaders See Big
     Promise, Have Big Security Questions
   Primary Reasons You're Using or Pl...
confirmIT (www.confirmIT.com)

     • Founded in Norway in 1996 as Future Information Research
       Management (FIRM) – ...
Fronter (www.fronter.com)

     • Founded in Norway in 1998 as Fronter
          – Provides a platform for virtual learnin...
Mamut (www.mamut.com)

     • Founded in Norway in 1994 as Mamut
          – Provides a PC-based solution for small and me...
Statens senter for økonomistyring
     (www.sfso.no)

     • Established in 2004 as an agency within the Ministry of Finan...
If ”cloud computing” is the answer,
     what was the question?
     A new model in the value stack is emerging

         ...
A provider perspective (SaaS) – Revenue
     growth and market reach with a manageable
     cost base

                   ...
A service delivery framework (solution)
     provides a mechanism to address technology
     challenges.

                ...
Key success factors for SaaS
       implementation

                                                                      ...
Key considerations for a SaaS
       implementation
                                                  1. What are the impl...
References

     • Above the Clouds: A Berkeley View of Cloud Computing
          – http://www.eecs.berkeley.edu/Pubs/Tech...
Takk for meg!

        Francis D’Silva
        Enterprise Architecture Planning & Nordic Innovation Lab
        francis.ds...
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Cloud Computing, Business Models, Geilo April 2009

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Cloud Computing, Business Models, Geilo April 2009

  1. 1. Making cloud computing work … for provider and consumer Forretningsmodeller for skyen - Hva og Hvordan? Geilo, April 20-21 2009 Copyright © 2009 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.
  2. 2. Objectives for the session • Provide a context for discussing approaches to “cloud computing” in the marketplace • Highlight a few Norwegian businesses offering some form of “cloud computing” • Discuss implications for business value and for IT capabilities Copyright © 2009 Accenture All Rights Reserved. 2
  3. 3. Agenda • Market context for “clouds” • Business models for Norwegian cloud businesses • Opportunities and challenges for succeeding with cloud • Questions & Comments Copyright © 2009 Accenture All Rights Reserved. 3
  4. 4. About me • Business technology planner working with architecture and service modelling – Enterprise Architecture (the enterprise’s architecture) – Service Management • Board member Norwegian Computer Society (Østlandsdistrikt) – Architecture communities – Information, SOA and Buiness – Business Intelligence community Copyright © 2009 Accenture All Rights Reserved. 4
  5. 5. “What on earth is Cloud Computing?”* Copyright © 2009 Accenture All Rights Reserved. 5
  6. 6. “What on earth is Cloud Computing?”* A computing-based capability that is offered to a consumer in the form of services Processes Software Software platform Infrastructure Copyright © 2009 Accenture All Rights Reserved. 6
  7. 7. The cloud capability serves enterprise users as well as consumers Processes Software Software platform Infrastructure Copyright © 2009 Accenture All Rights Reserved. 7
  8. 8. Enterprise Web vs Consumer Web 1. Scale (Users vs Applications) 2. Experience (Simplicity vs Functionality) 3. Security (One for One vs One to Many) 4. Transaction (Decoupled vs Complete) 5. Integration (Loose vs Strict) 6. Search (Page vs Data) 7. Enterprises will pay, Consumers expect it free http://www.bitsandbuzz.com/article/enterprise-web-vs-consumer-web-20-top-six-differences/ Copyright © 2009 Accenture All Rights Reserved. 8
  9. 9. What then is a service? A service is a task performed (by a provider) to produce a desired result (for a customer). Customer compensates provider based on degree of accountability. Restaurant Chef home Take-away Copyright © 2009 Accenture All Rights Reserved. 9
  10. 10. Cloud Computing Survey: IT Leaders See Big Promise, Have Big Security Questions Primary Reasons You're Using or Plan to Use Greatest Concerns Surrounding Cloud Adoption Cloud at Your Company Security 45% Scalability on demand/flexibility to the business 50% Integration with existing systems 26% Reduced hardware infrastructure costs 38% Loss of control over data 26% Reduced IT staffing/administration costs 35% Availability concerns 25% Performance issues 24% Access to skills/capabilities we have no interest in 28% developing in-house IT governance issues 19% Regulatory/compliance concerns 19% Not using or planning to use cloud computing 19% offerings Dissatisfaction with vendor offerings/pricing 12% Ability to bring systems back in-house 11% Capacity - data center 16% Lack of customization opportunities 11% Capacity - storage 11% Measuring ROI 11% Frequent software updates 10% Not sure 7% Other 5% Other 6% *Respondents selected up to three criteria. SOURCE: CIO Research http://www.cio.com/article/455832/Cloud_Computing_Survey_IT_Leaders_See_Big_Promise_Have_Big_Security_Questions Copyright © 2009 Accenture All Rights Reserved. 10
  11. 11. confirmIT (www.confirmIT.com) • Founded in Norway in 1996 as Future Information Research Management (FIRM) – Offices: Oslo, San Francisco, New York.. – Provides Feedback management solutions on demand to some of the largest global companies – Solution confirmIT is built on the Microsoft platform • Offers web-based tools for authoring surveys, designing panels and analysis • Commercial model – confirmIT is a SaaS-business (Rackspace provide the infrastructure) – Customers are enterprises and market research businesses – Market reach is through a partner and reseller model – Subscription-based tools for reporting, authoring and managing surveys • Consumption-based fees (only completed surveys are charged) Copyright © 2009 Accenture All Rights Reserved. 11
  12. 12. Fronter (www.fronter.com) • Founded in Norway in 1998 as Fronter – Provides a platform for virtual learning that serves over 6 million users – Flagship product is called Fronter and built on a Java platform • Includes a number of tools including tools from 3rd parties for content creation, collaboration, plagiarism control, multimedia etc – Acquired by Pearson Group in 2009 • Commercial model – Fronter is a SaaS-business targeting educators (University of Oslo provides the data center) – Customers are primarily educational institutes (schools to universities) – Subscription-based fee with different service options – Market reach through a partner and reseller model Copyright © 2009 Accenture All Rights Reserved. 12
  13. 13. Mamut (www.mamut.com) • Founded in Norway in 1994 as Mamut – Provides a PC-based solution for small and medium sized businesses (ca 400.000 businesses in Europe) – Flagship product is called Mamut One and built on a Microsoft platform • Commercial model – Mamut is a Software + Services business – Customers are small and medium sized businesess – License fee (software) and subscription fee (service) with different service options – Market reach through a partner and reseller model Copyright © 2009 Accenture All Rights Reserved. 13
  14. 14. Statens senter for økonomistyring (www.sfso.no) • Established in 2004 as an agency within the Ministry of Finance – Provides accounting, payroll and invoice management services to all government entities – Uses SAP for HR-service, Agresso for Accounting and Contempus for invoice management • Commercial model – SSØ operates as a not-for-profit senter – Customers are government entities – An annual fee for services rendered. Copyright © 2009 Accenture All Rights Reserved. 14
  15. 15. If ”cloud computing” is the answer, what was the question? A new model in the value stack is emerging Past Future New Model Consumers and Interviewed for Activity monitored User generated Business Users requirements content & app’s Mainstream Spend time Integration and Spend time creating CIOs and IT Managers managing IT compliance new app’s Mostly on-shore Global IT Service Providers Rapid concurrent and on-site delivery and development CMM Consolidating and Technology Industry 2-3 year product SOA-izing On-demand upgrades services Copyright © 2009 Accenture All Rights Reserved. 15
  16. 16. A provider perspective (SaaS) – Revenue growth and market reach with a manageable cost base • Standardized application platforms and interfaces Development reduces service creation costs. • Reusable components reduce effort to build new Reduced services. Costs • Well-architected operations platforms reduce support Operations costs • Infrastructure optimized to meet SLA requirements SaaS Offer • Dramatically reduced service creation costs allows Time to Market testing of new services and increases service profitability • Quicker service creation process gets products to Increased Offers market faster. Revenue • Greater flexibility in integrating, bundling and packaging features and applications to create new services, thereby increasing subscribers Subscribers • Extends digital value chain to third party application and content providers. • Accelerates the ability to operationalize and scale services. Copyright © 2006 Accenture All Rights Reserved. 16
  17. 17. A service delivery framework (solution) provides a mechanism to address technology challenges. • A service delivery platform Service Delivery Platform – Technology architecture that enables efficient and rapid creation and support of new services / applications – Provides self-provisioning services Service Management • Service Management – Control of underlying services, including provisioning and activation, inventory/resource and Billing Metering Technology management, etc. Solution – Incorporates existing Security offering • Application Architecture Operations – Design and configuration of software to run in a Application Architecture hosted / managed service • Metering and Billing - Usage Infrastructure – Tracking of licenses and usage Software • Infrastructure Hardware – Design and layout of physical components to meet Telephony performance / volume requirements Network • Operations – Systems and processes to ensure quality of service Copyright © 2006 Accenture All Rights Reserved. 17
  18. 18. Key success factors for SaaS implementation Establish a quantifiable business case and 1. Maintain a qualitative user experience value focus Rapidly course correct leading and lagging metrics (compared to on-premise, SaaS can enable value faster if executed properly) 3. Simplify and Avoid the SaaS “trap” of extend integration 2. Drive the designing entity-by-entity vs the behavioral end-to-end business process change Align incentives and adapt to Agree integration roadmap for optimized the culture (SaaS has a strong agile development fit to the 80/20 rule to drive Address trade-off decisions for integration iteration) within business processes in high flux Copyright © 2009 Accenture All Rights Reserved. 18
  19. 19. Key considerations for a SaaS implementation 1. What are the implications for multi-tenancy around the SaaS application for your organization? 2. How do you exploit the ‘viral’ take-up of SaaS at a user/departmental level and avoid ‘unwinding’ tactical deployments? 3. How do you use SaaS to drive greater standardization and still manage SaaS customization (platform or plug- ins) where necessary? 4. What new governance processes are necessary to manage a SaaS program? Indeed, how do the business and IT organizations need to adapt to the new approaches that SaaS can enable? 5. What implications does SaaS have for master data management? Copyright © 2009 Accenture All Rights Reserved. 19
  20. 20. References • Above the Clouds: A Berkeley View of Cloud Computing – http://www.eecs.berkeley.edu/Pubs/TechRpts/2009/EECS-2009-28.pdf • Corporate websites: Mamut, confirmIT, Fronter, SSØ • Trivergence – http://www.accenture.com/Global/Accenture_Blogs/Trivergence_Blog/def ault.htm • Enterprise Web vs Consumer Web – http://www.bitsandbuzz.com/article/enterprise-web-vs-consumer-web-20- top-six-differences Copyright © 2009 Accenture All Rights Reserved. 20
  21. 21. Takk for meg! Francis D’Silva Enterprise Architecture Planning & Nordic Innovation Lab francis.dsilva@accenture.com + 47 908 26 049
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