The Business Case behind Cloud Computing - The risks and rewards
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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.

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

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