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THE BUSINESS CASE BEHIND CLOUD COMPUTING<br />EMA - Fresh Technology<br />James Valentine<br />April 27th 2010<br />
Agenda<br />What exactly is cloud computing?<br />The “Cloud Continuum”<br />The Risks and Rewards of the cloud<br />Deter...
About Fronde<br />NZ based IT services company<br />IT Systems integrator and mobile products company<br />Focus on Cloud ...
Microsoft Gold Partner
Salesforce.com Partner
And more…</li></ul>Commercial in confidence | Copyright © 2009 Fronde Systems Group Limited <br />3<br />
Cloud Computing Definition #1<br />Cloud computing is a style of computing in which dynamically scalable and often virtual...
Cloud Computing Definition #2<br />The service is accessible via a web browser or web services API.<br />Zero capital expe...
Cloud ComputingA simple analogy<br />Commercial in confidence | Copyright© 2009 Fronde Systems Group Limited <br />6<br />
What is all the fuss about?<br />Commercial in confidence | Copyright© 2009 Fronde Systems Group Limited <br />7<br />Clou...
“The Cloud Continuum”<br />Commercial in confidence | Copyright© 2010 Fronde Systems Group Limited <br />8<br />The Cloud ...
Software-as-a-Service<br /><ul><li>Typically Line of Business applications (e.g. CRM, mail, collaboration, HR, accounting)
Usually a $ per user per month charging model.
Centralized feature updating – no patches and upgrades / features available to all users immediately.</li></ul>Commercial ...
Software-as-a-Service cont.<br /><ul><li>Gives small businesses / start-ups access to enterprise grade software.
Either limited customisation or customisation is completely proprietary to the solution.
A number of providers offer both SaaS and installed versions of their software</li></ul>Commercial in confidence | Copyrig...
Commercial in confidence | Copyright © 2009 Fronde Systems Group Limited <br />11<br />Using Software-as-a-ServiceCase Stu...
Comparing Costs of On-Premise and SaaS<br />On Premise<br />SaaS<br />Up front Licence Fee<br />Customisation & Configurat...
Business Value – not just Cost<br />Make IT efforts add value to your organisation<br />Allow your organisation to act at ...
Business Value – not just Cost<br />Reduce security and compliance costs<br />No upgrades – ever.<br />Improve service ava...
The case against cloud computing?<br />Risk: Legal, regulatory, and business <br />Connectivity and bandwidth<br />Securit...
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The Business Case behind Cloud Computing - The risks and rewards

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Presentation by James Valentine on the Business Case behind Cloud computing, risks and rewards, how to add value and reduce costs.

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  • Nicholas Carr’s book The Big Switch: Rewiring the World, from Edison to Google.   In that book the author chronicles the evolution of electric power from being self-generated by factories located on the banks of rivers and by individual cities for their own use and then later evolving to the utility model where extensive distribution systems allow power to be generated centrally and then distributed to cites, factories and homes. His thesis, shared by others, is that computing is evolving toward that utility model.
  • Transcript of "The Business Case behind Cloud Computing - The risks and rewards"

    1. 1. THE BUSINESS CASE BEHIND CLOUD COMPUTING<br />EMA - Fresh Technology<br />James Valentine<br />April 27th 2010<br />
    2. 2. Agenda<br />What exactly is cloud computing?<br />The “Cloud Continuum”<br />The Risks and Rewards of the cloud<br />Determining what parts of your business can operate in the cloud<br />Commercial in confidence | Copyright© 2010 Fronde Systems Group Limited <br />2<br />
    3. 3. About Fronde<br />NZ based IT services company<br />IT Systems integrator and mobile products company<br />Focus on Cloud Computing:<br /><ul><li>Google Enterprise Partner
    4. 4. Microsoft Gold Partner
    5. 5. Salesforce.com Partner
    6. 6. And more…</li></ul>Commercial in confidence | Copyright © 2009 Fronde Systems Group Limited <br />3<br />
    7. 7. Cloud Computing Definition #1<br />Cloud computing is a style of computing in which dynamically scalable and often virtualized resources are provided as a service over the Internet. <br />Users need not have knowledge of, expertise in, or control over the technology infrastructure "in the cloud" that supports them.<br />Wikipedia<br />Commercial in confidence | Copyright© 2009 Fronde Systems Group Limited <br />4<br />
    8. 8. Cloud Computing Definition #2<br />The service is accessible via a web browser or web services API.<br />Zero capital expenditure is required to get started.<br />You pay only for what you use as you use it.<br />Cloud Application Architectures, O’Reilly – George Reese<br />Commercial in confidence | Copyright© 2009 Fronde Systems Group Limited <br />5<br />
    9. 9. Cloud ComputingA simple analogy<br />Commercial in confidence | Copyright© 2009 Fronde Systems Group Limited <br />6<br />
    10. 10. What is all the fuss about?<br />Commercial in confidence | Copyright© 2009 Fronde Systems Group Limited <br />7<br />Cloud Computing<br />
    11. 11. “The Cloud Continuum”<br />Commercial in confidence | Copyright© 2010 Fronde Systems Group Limited <br />8<br />The Cloud Continuum<br />SaaS<br />PaaS<br />IaaS<br />Traditional<br />Microsoft BPOS<br />Microsoft Azure<br />Virtualisation<br />“Tin”<br />Google App Engine<br />Google Apps<br />Amazon EC2<br />SalesForce.com / Force.com<br />Hosted Email<br />Data-centre Hosting<br />Xero<br />
    12. 12. Software-as-a-Service<br /><ul><li>Typically Line of Business applications (e.g. CRM, mail, collaboration, HR, accounting)
    13. 13. Usually a $ per user per month charging model.
    14. 14. Centralized feature updating – no patches and upgrades / features available to all users immediately.</li></ul>Commercial in confidence | Copyright© 2010 Fronde Systems Group Limited <br />9<br />
    15. 15. Software-as-a-Service cont.<br /><ul><li>Gives small businesses / start-ups access to enterprise grade software.
    16. 16. Either limited customisation or customisation is completely proprietary to the solution.
    17. 17. A number of providers offer both SaaS and installed versions of their software</li></ul>Commercial in confidence | Copyright© 2010 Fronde Systems Group Limited <br />10<br />
    18. 18. Commercial in confidence | Copyright © 2009 Fronde Systems Group Limited <br />11<br />Using Software-as-a-ServiceCase Study: Fronde!<br />
    19. 19. Comparing Costs of On-Premise and SaaS<br />On Premise<br />SaaS<br />Up front Licence Fee<br />Customisation & Configuration<br />Hardware purchase and Installation<br />Hosting costs<br />Off-site Backups<br />High Availability / Replication<br />Upgrades<br />Support and maintenance<br />Monthly “Subscription”<br />Customisation & Configuration<br />End user support<br />Bandwidth Costs<br />Commercial in confidence | Copyright© 2010 Fronde Systems Group Limited <br />12<br />
    20. 20. Business Value – not just Cost<br />Make IT efforts add value to your organisation<br />Allow your organisation to act at Enterprise scale<br />Allow your organisation to expand seamlessly<br />Commercial in confidence | Copyright© 2009 Fronde Systems Group Limited <br />13<br />
    21. 21. Business Value – not just Cost<br />Reduce security and compliance costs<br />No upgrades – ever.<br />Improve service availability and reliability<br />Transition from CapEx to OpEx<br />Commercial in confidence | Copyright© 2009 Fronde Systems Group Limited <br />14<br />
    22. 22. The case against cloud computing?<br />Risk: Legal, regulatory, and business <br />Connectivity and bandwidth<br />Security and privacy<br />Difficulty of managing cloud applications<br />Commercial in confidence | Copyright © 2009 Fronde Systems Group Limited <br />15<br />
    23. 23. The case against cloud computing?<br />Current enterprise apps can't be migrated conveniently<br />Lack of Service Level Agreement<br />Lack of cost advantage for cloud computing<br />Commercial in confidence | Copyright © 2009 Fronde Systems Group Limited <br />16<br />
    24. 24. Considerations for moving an application to the cloud?<br />Does it add value or innovation to your business?<br />Does it need to be easily available to a geographically dispersed or highly mobile workforce?<br />Are you facing a software upgrade or hardware refresh?<br />Commercial in confidence | Copyright © 2009 Fronde Systems Group Limited <br />17<br />
    25. 25. Considerations for moving an application to the cloud?<br />Is it something that will start small and grow? Start large and shrink?<br />Does it have fluctuations in demand?<br />Are you experiencing availability or reliability issues that are affecting business productivity?<br />Commercial in confidence | Copyright © 2009 Fronde Systems Group Limited <br />18<br />
    26. 26. Future Trends<br />Emergence of local “private cloud” and “government cloud” offerings<br />“Cloud Enabled” versions of existing software to complement on premise offerings<br />Platform as a Service frameworks and offerings to mature.<br />Commercial in confidence | Copyright © 2009 Fronde Systems Group Limited <br />19<br />
    27. 27. Future Trends cont.<br />Second cable into NZ to further improve latency and performance of cloud applications<br />Device / access independence<br />Commercial in confidence | Copyright © 2009 Fronde Systems Group Limited <br />20<br />
    28. 28. Call to Action<br />Identify IT “complexity knots” in your organisation and see if cloud computing could eliminate them.<br />Look at the time your IT resources are spending on activities that are non-“value add”.<br />Commercial in confidence | Copyright © 2009 Fronde Systems Group Limited <br />21<br />
    29. 29. Questions?<br />Commercial in confidence | Copyright © 2009 Fronde Systems Group Limited <br />22<br />James.Valentine@fronde.com<br />021582253<br />
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