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CIO Playbook on Cloud Computing
CIO Playbook on Cloud Computing
CIO Playbook on Cloud Computing
CIO Playbook on Cloud Computing
CIO Playbook on Cloud Computing
CIO Playbook on Cloud Computing
CIO Playbook on Cloud Computing
CIO Playbook on Cloud Computing
CIO Playbook on Cloud Computing
CIO Playbook on Cloud Computing
CIO Playbook on Cloud Computing
CIO Playbook on Cloud Computing
CIO Playbook on Cloud Computing
CIO Playbook on Cloud Computing
CIO Playbook on Cloud Computing
CIO Playbook on Cloud Computing
CIO Playbook on Cloud Computing
CIO Playbook on Cloud Computing
CIO Playbook on Cloud Computing
CIO Playbook on Cloud Computing
CIO Playbook on Cloud Computing
CIO Playbook on Cloud Computing
CIO Playbook on Cloud Computing
CIO Playbook on Cloud Computing
CIO Playbook on Cloud Computing
CIO Playbook on Cloud Computing
CIO Playbook on Cloud Computing
CIO Playbook on Cloud Computing
CIO Playbook on Cloud Computing
CIO Playbook on Cloud Computing
CIO Playbook on Cloud Computing
CIO Playbook on Cloud Computing
CIO Playbook on Cloud Computing
CIO Playbook on Cloud Computing
CIO Playbook on Cloud Computing
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CIO Playbook on Cloud Computing

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  • Here’s where things get a little CLOUDY
  • Clear the air about the Marketing Hype
  • But as James Carvell said…. IT’S THE ECONOMY STUPID
  • Where does Cloud Computing fit in?
  • Where does Cloud Computing fit in?
  • Where does Cloud Computing fit in?
  • Transcript

    • 1. CIO’s Playbook to Cloud Computing
      March 2010
      ®Cloud Commerce Inc. - Proprietary & Confidential
      5/10/2010
      1
      Michael Vienhage
      Managing Partner
      Greg Altin
      Founder and Managing Partner
    • 2. Introductions
      ®Cloud Commerce Inc. - Proprietary & Confidential
      5/10/2010
      2
      Michael Vienhage - Managing Partner
      Prior to joining Cloud Commerce, Michael worked at CSI Leasing, Inc. in sales and marketing as Vice President, Marketing. His primary focus was in business development and relationship management. He opened the Charlotte, NC office in 1990 helping CSI expand their operation to a new region of the country. Michael had responsibility for developing new relationships in the Mid Atlantic region.
      Greg Altin - Founder and Managing Partner
      Prior to founding Cloud Commerce, Greg served in multiple roles at Brown Shoe Company (NYSE: BWS) including Vice President of Information Systems. In this position, he was responsible for managing a major portion of the application portfolios that supported corporate governance and administration systems, worldwide sourcing and product development, domestic wholesale, corporate EDI, customer support, and e-commerce business units, including Shoes.com (www.shoes.com).
    • 3. Agenda
      Introductions
      Greenfields
      Defining Cloud Computing
      Types of Cloud Computing
      Co-Lo vs. Cloud Computing
      The True Value Proposition of the Cloud
      Adoption Considerations
      5/10/2010
      ®Cloud Commerce Inc. - Proprietary & Confidential
      3
    • 4. 5/10/2010
      ®Cloud Commerce Inc. - Proprietary & Confidential
      4
      I/T… it’s Complicated
      Datacenter/Computer Room
      Applications/Software
      Your
      Business
      • Software Licenses
      • 5. HVAC
      Servers
      • CapEX
      • 6. Raised Flooring
      Internet
      • Maintenance
      Firewall
      • Square Footage
      • 7. Upgrades
      Backup Device
      • Power
      • 8. Support Software
      Storage
      Network
    • 5/10/2010
      ®Cloud Commerce Inc. - Proprietary & Confidential
      5
      CLOUD COMPUTING
      Get out of the data center business.
      Eliminate the headaches of Licensing… start “Paying for Value”
      Elasticity and Flexibility.
    • 17. Agenda
      Introductions
      Greenfields
      Defining Cloud Computing
      Types of Cloud Computing
      Co-Lo vs. Cloud Computing
      The True Value Proposition of the Cloud
      Adoption Considerations
      5/10/2010
      ®Cloud Commerce Inc. - Proprietary & Confidential
      6
    • 18. 5/10/2010
      ®Cloud Commerce Inc. - Proprietary & Confidential
      7
      What is Cloud Computing?
      What it is:
      • “Cloud Computing”: What Exactly Is It Anyway?
      Wall Street Journal - 2/8/2010“Any service or program sent over an Internet connection can be considered a cloud service. An outside vendor runs the servers and software, so the buyer doesn’t have to worry about the technical issues in-house-and can focus on its own business.”
      • An old idea that’s been around for 30 years
      • 19. Key Enablers: Bandwidth Proliferation, Web 2.0, Security Technology Improvements and Large Scale Commodity Data Centers
      • 20. Transformative computing model that will change the economics of the multi-billion dollar software industry.
      • 21. Said bluntly… A New Utility: Computing Services
    • 5/10/2010
      ®Cloud Commerce Inc. - Proprietary & Confidential
      8
      What is Cloud Computing?
      Where did it come from?
      Diagrams from the Network Guys
      • August 2006, where Eric Schmidt of Google described their approach to SaaS as “cloud computing” at a search engine conference.
      • 22. January 2009, Greg Altin came up with the idea for Cloud Commercein his kitchen.
    • Introductions
      Greenfields
      Defining Cloud Computing
      Types of Cloud Computing
      Co-Lo vs. Cloud Computing
      The True Value Proposition of the Cloud
      Adoption Considerations
      5/10/2010
      ®Cloud Commerce Inc. - Proprietary & Confidential
      9
      Agenda
    • 23. Types of Cloud Computing?
      Infrastructure
      • Business in a Box
      • 24. Industry Focused
      BAAS
      Apps
      Business
      Stacks
      Est. Market Size by 2012
      Cloud Computing Ecosystem
      ~$21B
      SAAS
      Platform
      • Microsoft Azure
      • 28. SalesForceAppXChange
      • 29. NetSuite SuiteCloud
      • 30. FaceBook
      PAAS
      ~$9B
      IAAS
      ~$2B
      Sources: AMR, Gartner, IDC
    • 33. What is Cloud Computing?
      2009
      2010
      2011
      2012
      2013
      Adoption Timeline
      BAAS
      SAAS
      PAAS
      Model Saturation
      - Heavy
      - Moderate
      IAAS
      - Light
      Small
      Medium
      Enterprise
      Company Size
    • 34. Introductions
      Greenfields
      Defining Cloud Computing
      Types of Cloud Computing
      Co-Lo vs. Cloud Computing
      The True Value Proposition of the Cloud
      Adoption Considerations
      5/10/2010
      ®Cloud Commerce Inc. - Proprietary & Confidential
      12
      “A decision to go with a private cloud is a decision to run lower utilization levels, consume more power, be less efficient environmentally, and to run higher costs.”,
      -James Hamilton
      Amazon
      Agenda
    • 35. Co-Lo vs. Cloud Computing
      Multi-Focus SERVICES
      Co-Location or Private Clouds are not Cloud Computing. Here’s Why:
      • Co-Lo is outsourcing your datacenter to 3rd party.
      • 36. You still bear the burden of software licenses and maintenance.
      • 37. Co-Lo must maintain staff/resources to provide Multi-Focus services (lower optimization)
      • 38. Unable to Realize Cloud Scale(Economic & Capability)
      • 39. CC=SINGLE FOCUS SERVICE
      CLOUD COMPUTING
      Single Focus SERVICE
      Co-Location/Managed Data Center
    • 40. Introductions
      Greenfields
      Defining Cloud Computing
      Types of Cloud Computing
      Co-Lo vs. Cloud Computing
      The True Value Proposition of the Cloud
      Adoption Considerations
      5/10/2010
      ®Cloud Commerce Inc. - Proprietary & Confidential
      14
      “IT systems and applications support people account for 30% to 60% of total 5-year systems costs.“
      “43% of Enterprise Adopters cite cost savings as the top reason moving to the cloud.”,
      -Yankee Group
      Agenda
    • 41. Key Benefits
      5/10/2010
      ®Cloud Commerce Inc. - Proprietary & Confidential
      15
      Built in Redundancy and Failover
      No Long Term Commitments
      Ubiquitous Access
      Rapid Elasticity
      Ease of Deployment
      Pay only for you use
      Eliminate CapEX
      Reallocate Labor Pool
      Accelerated time to benefits
    • 42. Infrastructure
      ®Cloud Commerce Inc. - Proprietary & Confidential
      16
      Cloud Economics
      Infrastructure
      Management
      Management
      R&D
      R&D
      Support
      Support
      Build
      Economy
      Cloud
      Economy
      Long Run Avg Cost
      Aggregate Capacity
      -SCALE ECONOMICS-
      Shift from
      Diseconomies of Scale
      to
      Economies of Scale
      • Need maintain a staff to support a wide range of technologies (Low Optimization)
      • 43. Service level cost cannot be spread optimally (User base is generally fixed but cost increase)
      • 44. Systems are often underutilized due to peak load strategies and estimated growth
      • 45. Higher Service Levels = Higher Costs
      • 46. DISECONOMIES OF SCALE
      • 47. Cost for High Service Levels are spread across large user bases.
      • 48. Focus Drive Efficiencies (Optimizes resources on repeatable processes/function )
      • 49. High Elasticity=No Excess Capacity Waste
      • 50. Pay Only for What You Use
      • 51. ECONOMIES OF SCALE
    • Introductions
      Greenfields
      Defining Cloud Computing
      Types of Cloud Computing
      Co-Lo vs. Cloud Computing
      The True Value Proposition of the Cloud
      Adoption Considerations
      5/10/2010
      ®Cloud Commerce Inc. - Proprietary & Confidential
      17
      CLOUD COMPUTING is #1 in Gartner’s Top 10 Strategic Technology Areas for 2010:
      Cloud Computing
      Advanced Analytics
      Client Computing

      Agenda
    • 52. 6 Commandments of Cloud Computing Services
      5/10/2010
      ®Cloud Commerce Inc. - Proprietary & Confidential
      18
      Moving Your Organization to the Cloud
      Value to Your Company
      Single Focus Service Delivery
      Multi Tenant Architecture
      Multi Point/Redundant Data Centers
      Subscription Model (no-lock)
      Clear SLA (availability/performance)
      Appropriate Security and Privacy Controls
      Enables Provider to Optimize Solution ( Cost)
      Leverage Repeatable Processes/Resources ( Cost)
      High AvailabilityBuilt-In Disaster Recovery
      Flexible and Elastic Usage Model
      Insurance
      Risk Management
    • 53. So What’s Cloudable?
      • Hybrid Approach (Co-Lo + Cloud)
      • 54. Co-Lo Infrastructure Strategic Systems
      • 55. Cloud  Utility Core Business Operations*one size does not fit all
      GeneralRecommendation
      5/10/2010
      ®Cloud Commerce Inc. - Proprietary & Confidential
      19
      Tactical Systems
      Strategic
      Systems
      Infrastructure
      Core Business Operations
      Utility Systems
      Management Support Systems
      Business Differentiating Systems
      MATURE
      • Hosted Email
      • 56. Message Archiving
      • 57. Fax Services
      • 58. Collaboration (Sharepoint)
      • 59. Document Management
      • 60. Backup Services
      MATURING
      *Security, Integration and Governance are biggest challenge
      MATURE
      EMERGING…
      • Business Intelligence and Analytics
      • 68. I/T Portfolio Mgt.
    • Moving Your Organization to the Cloud
      5/10/2010
      ®Cloud Commerce Inc. - Proprietary & Confidential
      20

      Align Cloud Solutions with your Business Needs
      Focus on areas of your business where change can be justified
      • Need to Reduce Cost?
      • 69. Service Level Improvement?
      • 70. Support Growth?
      • 71. Need for Upgrade?
      • 72. More Flexibility/Elasticity Needed?
    • Moving Your Organization to the Cloud
      5/10/2010
      ®Cloud Commerce Inc. - Proprietary & Confidential
      21


      Align Cloud Solutions with your Business Needs
      Learn From Others
      Leverage lessons from Cloud Computing from:
      • Partners
      • 73. Internet (lot’s of info)
      • 74. Seminars/Industry Groups
      • 75. Your Peer Network
    • Moving Your Organization to the Cloud
      5/10/2010
      ®Cloud Commerce Inc. - Proprietary & Confidential
      22



      Align Cloud Solutions with your Business Needs
      Learn From Others
      Develop Justifiable Business Case
      Assess the Risks and Rewards:
      • Not everything should go to the cloud
      • 76. Work to Quantify Real Costs (for both sides)…and be honest!
      • 77. Use Hard and Soft Costs
      • 78. Develop a 5-6 Year Comparative TCO
    • Moving Your Organization to the Cloud
      5/10/2010
      ®Cloud Commerce Inc. - Proprietary & Confidential
      23




      Align Cloud Solutions with your Business Needs
      Learn From Others
      Develop Justifiable Business Case
      Remember the 6 Commandments of Cloud Services
      6 Commandments of Cloud Services
      Single Focus Service Delivery
      Multi Tenant Architecture
      Multi Point/Redundant Data Centers
      Subscription Model (no-lock)
      Clear SLA (availability/performance)
      Appropriate Security and Privacy Controls
    • 79. Moving Your Organization to the Cloud
      5/10/2010
      ®Cloud Commerce Inc. - Proprietary & Confidential
      24





      Align Cloud Solutions with your Business Needs
      Learn From Others
      Develop Justifiable Business Case
      Remember the 6 Commandments
      of Cloud Services
      Experiment… it’s easy with the Cloud
      Be Willing to go on a Test Drive
      • Experiment with some of the services to learn.
      • 80. Take advantage of Free Trials
      • 81. Talk with a Cloud Consolidator
    • 5/10/2010
      ®Cloud Commerce Inc. - Proprietary & Confidential
      25
      CLOUD COMPUTING
      Evolution or Revolution?
      Get out of the data center business.
      Eliminate the headaches of Licensing… start “Paying for Value”
      Elasticity and Flexibility.
      5/10/2010
      ®Cloud Commerce Inc. - Proprietary & Confidential
      25
    • 82. Contact Us
      Web: www.CloudCommerce.com
      Phone: 314.932.2200
      Email: info@cloudcommerce.com
      ®Cloud Commerce Inc. - Proprietary & Confidential
      5/10/2010
      26
      About Us
      Cloud Commerce helps organizations understand, and benefit from cloud computing. We focus exclusively on applications in the cloud. We show business how leveraging the cloud can save money, while providing a secure and reliable alternative to running on-premise solutions.
    • 83. 5/10/2010
      ®Cloud Commerce Inc. - Proprietary & Confidential
      27
    • 84. Stats
      5/10/2010
      ®Cloud Commerce Inc. - Proprietary & Confidential
      28
    • 85. Cloud Strategy
      5/10/2010
      ®Cloud Commerce Inc. - Proprietary & Confidential
      29
      Cloud Strategy Framework
    • 86. Available Services
      5/10/2010
      ®Cloud Commerce Inc. - Proprietary & Confidential
      30
    • 87. Pros and Cons
      5/10/2010
      ®Cloud Commerce Inc. - Proprietary & Confidential
      31
      3 Stages of Computing
      Tradition On-Premises IT
      Requires IT staff.
      Capital cost intensive
      Difficult to upgrade and patch.
      Unpredictable costs.
      Difficult to maintain compliancy.
      Data center may not provide high availability (power, HVAC, etc)
      Users
      Your
      Business
      Internet
      Business Applications
      Firewall
      Higher level of internal control.
      Ability to customize services.
      Data is on-site.
      Can operate without Internet
      Backup Device
      E-Mail
      Storage
      Network
    • 88. 5/10/2010
      ®Cloud Commerce Inc. - Proprietary & Confidential
      32
      3 Stages of Computing
      Managed Data Center (Collocated)
      Requires IT staff.
      Capital cost intensive
      Difficult to upgrade and patch.
      Unpredictable costs.
      High costs for managed services.
      Redundant cost if some systems are still on premises.
      Data center may not provide high availability (power, HVAC, etc)
      Pros and Cons
      3rd Party Managed Data Center
      Users
      Your
      Business
      Business Applications
      Storage
      Network
      Firewall
      E-Mail
      Backup Device
      Higher level of internal control.
      Ability to customize services.
      Leverages facilities of professionally managed data center.
    • 89. 5/10/2010
      ®Cloud Commerce Inc. - Proprietary & Confidential
      33
      3 Stages of Computing
      Requires reliable internet connection.
      Distributed Security
      Distributed User Control
      Cloud Computing
      Employees Work Anywhere.
      Lower Capital Expenditures.
      Focus on business not technology.
      No Worry Upgrades.
      Enterprise Class Tools.
      Faster implementations.
      Lower upfront and ongoing costs.
      Pay only for services you need.
      Guaranteed service-level agreements (SLAs).
      PREDICTABLE SPENDING
      HIGH AVAILABILITY, REDUNDANT DATA CENTERS (BUILT IN DISTASTER RECOVERY)
      Service Provider
      Pros and Cons
      Users
      E-Mail
      Your
      Business
      Service Provider
      Storage
      Firewall
      Service Provider
      Telephone PBX
      Business
      Applications
      SELECTIVLY MIGRATE APPLICATIONS TO THE CLOUD
    • 90. Stats
      5/10/2010
      ®Cloud Commerce Inc. - Proprietary & Confidential
      34
      Research firm IDC projects overall spending on subscription based software to grow at a compounded rate of 18% to $19.8 billion by 2012.
      Yankee Group concludes that IT systems and applications support people account for 30% to 60% of total 5-year costs. [“TCO of On-Demand Applications Is Significantly Better for SMBs and Mid-Market Enterprises.” Yankee Group. June 1, 2005]
      “Spending on cloud computing will capture 25% of IT spending growth in 2012 and nearly a third of growth in 2013”, IDC predicts.
    • 91. Security
      Disadvantages
      2 tier or flat architected networks are a risky
      Only expose front end user interface
      Credential management is fragmented and not centralized (yet).
      Control of Solutions are segmented
      Benefits?
      1. Centralized Data
      2. Incident Response / Forensics
      3. Password assurance testing (aka cracking)
      4. Logging
      5. Improve the state of security software (performance)
      6. Secure builds
      7. Security Testing
      (CloudSecurity.org - Assessing the Security Benefits of Cloud Computing )
      5/10/2010
      ®Cloud Commerce Inc. - Proprietary & Confidential
      35

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