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