An Introduction to Cloud Computing - Part2: What Does a Cloud Computing Environment Consist of?
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An Introduction to Cloud Computing - Part2: What Does a Cloud Computing Environment Consist of?

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This presentation provides an introduction to the area of cloud computing. This presentation is split into three sections, of which this is the second part. This second part provides a breakdown of ...

This presentation provides an introduction to the area of cloud computing. This presentation is split into three sections, of which this is the second part. This second part provides a breakdown of the three layers that make up today's cloud computing environments. If you download the presentation you will find that each slide has notes to help you get a better understanding of the content. Updated April 2013

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  • Hello and welcome to this video presentation hosted by GXS, my name is Mark Morley, Industry Marketing Director.Over the next few minutes I would like to take you through a short presentation which introduces some of the concepts behind cloud computing. This presentation is the second of a three part video presentation and discusses the typical layers that make up today’s cloud computing environmentsSo what exactly does a cloud computing environment consist of?
  • Cloud computing environments typically comprise of three different layers.Infrastructure as a Service - IaaS, essentially provides the core backbone infrastructure onto which the rest of the cloud environment is built. For example companies such as Amazon and EMC will provide extensive compute and storage facilitiesPlatform as a Service - PaaS, provides the infrastructure onto which the applications are developed, for example GXS Trading (the world’s largest integration cloud platform) is a good example of PaaSSoftware as a Service - SaaS, provides the core business applications that effectively plug into the cloud environment. These are typically web based in nature and are heavily optimised for operating across the internet and cloud based environments. SAP’s Business by Design and GXS Active Logistics are godo example of SaaS based applications.
  • If we take a look at the first layer of the cloud computing stack, Infrastructure-as-a-ServiceThis area of the cloud environment essentially delivers the computer infrastructure, typically platform virtualisation as a service. It is an evolution of virtual private server offerings and includes:Servers, memory and storage that allow a customer to scale up or down as requiredInfrastructure can be used by customers to run their own software with only the amount of resource that is needed at a given moment in timeI guess you could compare Infrastructure-as-a-Service as the equivalent of utility supplies to a house, ie all houses need, gas, water, electricity connected to make them function correctly.
  • Then moving onto Platform-as-a-Service, this delivers the computing platform and/or solution stack as a service. The PaaS environment will often consume cloud infrastructure and will sustain cloud applications. PaaS environments :Allow users to use the cloud to develop new applications without the need to have the software or infrastructure purchased in-houseEssentially provides anything to support how a company builds and delivers web applications and services in the cloudUsing the house analogy from the previous slide, PaaS could be considered as the foundations on to which you would then build your house.
  • Earlier this year the analyst firm Gartner released a report highlighting the importance of PaaS based environments and how by 2015 they are likely to have a huge impact on the way cloud based environments are built and deployed.For example by 2015,cloud-based solutions will be growing at a faster rate than on-premises solutions most enterprises will have part of their run-the-business software functionally executing in the cloud, using PaaSmost enterprises using PaaS services or technologies will have a hybrid environment in which internal and external services are combined
  • The great thing about cloud based environments is that it allows both large and small software providers to compete in the market on an almost equal footing. A number of software providers have moved their behind the firewall software applications into a hosted environment and they are able to offer a wealth of different solutions covering everything from business analytics, data integration, CRM, application security and much more.The cloud has single handedley changed the way in which software solutions are designed and delivered to companies.
  • The final layer of the cloud, is the actual Software-as-a-Service application, essentially a fully hosted piece of software. SaaS has been around for a few years now and formed the first cornerstone of the cloud computing environments that we know today. They essentially deliver software over the internet without the need to install applications on the customer’s own computer. SaaS applications :are run from one centralised location, which means that the software can be accessed from any location over the internetThe centralised management of applications helps to simplify maintenanceApplications are consumed on a pay-as-you-go basisI suppose returning back to our house analogy one last time, SaaS applications could be considered as the various rooms that are built on the foundation of the house.
  • So let me discuss some of the benefits of cloud computing....
  • So how can cloud based B2B environments help manufacturing companies, well firstlyIt provides Global accessibility, as all applications are hosted by a central provider it means that anyone in your company or across your trading partner community can get access to your B2B tools using nothing more than a web browser. It also means that users will get a consistent user experience as well.Cloud environments also allow B2B infrastructures to be maintained much more efficiently, as applications are hosted centrally, it means that applications only have to upgraded once rather than on multiple servers, and everyone connected to the cloud platform then benefits from the newly upgraded environment.Cloud environments can be deployed very quickly, once again as software and services are installed by a vendor at a central location then it means that new applications can be deployed in a very short time frame and new users can be added to the environment with ease. Cloud environments really allow you to build flexibility into your B2B environment, getting access to new functionality as and when you require it.Cloud environments are low cost, rather than pay a software license fee, users pay on a month by month or project by project basis. This pay as you go way of working allows managers to get much better predictability of long terms IT or B2B related costs. Also, as you do not have to buy expensive servers to host any applications, it means that there is no capital expenditure and zero cost applied to your company’s balance sheet.In these uncertain financial times, cloud based environments allow companies to scale up or scale down their B2B needs very quickly, may be as a result of winning a new contract and a need to onboard new trading partners very quickly or needing to scale down operations due to a product coming near to retirement.Finally, cloud based environments provide an ideal way to manage a community of users with ease. Centralised management of usernames, passwords and contact details help to bring an extra layer of security to your B2B environment. In addition it allows users to be presented with just the information they need to do their work, ie a role based environment can be presented to a user depending upon their role and responsibilities within the business.
  • In terms of comparing traditional IT infrastructures with cloud based environments, there are a number of notable differences, let me highlight a couple of the more important ones in this table.From a speed to market point of view, in the traditional IT environment, enterprise applications take months or years to design, code, test and deploy. From a cloud computing point of view the cloud provider is responsible for on-going development and clients simply use the most up to date application available.From a speed to ROI point of view, even with significant capital investment, many companies never get to realise the expected ROI. In cloud computing, the subscription based model allows a client to pay for the service that they actually use and is a highly predictable operational expense.
  • From a Financial perspective, there are a number of differences between running on-premise versus hosted or cloud computing based environments.From an Expenditure Type point of view: on premise IT is a capital expenditure whilst in the cloud it is an operating expenseMoving to Cash Flow: in a traditional IT environment servers and software are purchased up front whilst in the cloud payments are made as the service is providedIn terms of Financial Risk: in a traditional IT environment the entire financial risk is taken upfront, with uncertain return whilst in the cloud financial risk is taken monthly and is matched to returnOn the Income Statement: traditional IT has maintenance and depreciated capital expenses whilst in the cloud there are maintenance expenses onlyFinally on the Balance Sheet: Software and hardware are carried as a long-term capital asset whilst in the cloud nothing appears on the balance sheet
  • As well as obtain significant financial benefits, the cloud helps your company gain more strategic benefits as well.This diagram helps to illustrate what happens as you move more business applications to the cloud. Outsourcing B2B will start to introduce strategic business benefit but as with the Jaguar Land Rover example earlier, if your CIO has a vision to move as much of his IT infrastructure as possible to the cloud then ultimately your business will gain both strategic business benefit and a firm competitive advantage in the market.
  • Cloud Computing environments offer many green benefits as well.Lower power consumption requirements - As Cloud based environments are hosted by an external vendor, this not only helps companies remove the cost of supporting an in-house data centre or server infrastructure but more importantly it can help to significantly reduce a company’s carbon footprint by reducing the power consumed to run the supporting utilities related infrastructures.Less computer/network equipment packaging to dispose of- Cloud computing based environments remove the need for buying and running extensive computer servers and other associated infrastructures. Therefore there is an opportunity to minimise the amount of wasteful packaging materials that are used to transport these pieces of equipment to an office or manufacturing location.Minimises travel requirements for IT implementation teams - As Cloud computing environments are hosted by an outside provider and are typically very easy to deploy, you can, in most cases, remove the need to send employees half way around the world as these environments can be brought online and monitored remotely.Increased availability of information on lower power devices - Cloud based environments allow users to access information using more power friendly mobile devices and also helps all trading partners to get access to one central source of information. This helps to minimize supply chain disruption and improve green related efficiencies of logistics carriers.Less paper flowing across the supply chain - Cloud based environments significantly reduce the amount of paper flowing across the extended enterprise, at the same time it encourages less technically capable trading partners to participate in your B2B program.

An Introduction to Cloud Computing - Part2: What Does a Cloud Computing Environment Consist of? An Introduction to Cloud Computing - Part2: What Does a Cloud Computing Environment Consist of? Presentation Transcript

  • An Introduction to Cloud Computing -Part 2 - What Does a Cloud Environment Consist of?Mark Morley, Industry Marketing Director
  • Slide 2 | © 2013 GXS, Inc.Three Layers of Cloud ComputingBusinessApplicationsApplicationInfrastructureCompute &Storage
  • Slide 3 | © 2013 GXS, Inc.Infrastructure-as-a-Service• Delivers computerinfrastructure, typically platformvirtualisation as a service. Its anevolution of virtual private serverofferings– Includes servers, memory and storage thatallow a customer to scale up or down asrequired– Infrastructure can be used by customers torun their own software with only the amountof resource that is needed at a givenmoment in time View slide
  • Slide 4 | © 2013 GXS, Inc.Platform-as-a-Service• Delivers a computing platform and/orsolution stack as a service, oftenconsuming cloud infrastructure andsustaining cloud applications.– Allows users to use the clouds to developnew applications without the need to havethe software or infrastructure purchased in-house– Essentially provides anything to supporthow a company builds and delivers webapplications and services in the cloud View slide
  • Slide 5 | © 2013 GXS, Inc.PaaS: A New Continent Emerging By 2015, most enterprises willhave part of their run-the-businesssoftware functionally executing inthe cloud, using PaaS By 2015, cloud-based solutionswill be growing at a faster ratethan on-premises solutions By 2015, most enterprises usingPaaS services or technologies willhave a hybrid environment inwhich internal and externalservices are combinedSlide 5 | © 2013 GXS, Inc.
  • Slide 6 | © 2013 GXS, Inc.From Both Large and Small Companies
  • Slide 7 | © 2013 GXS, Inc.Software-as-a-Service• Delivers software over internetwithout the need to installapplications on the customer’s owncomputers– SaaS applications are run from onecentralised location, which means that thesoftware can be accessed from any locationover the internet– Centralised management of applicationshelps to simplify maintenance– Applications consumed on a pay-as-you-gobasis
  • Slide 8 | © 2013 GXS, Inc.Benefits of Cloud Infrastructures
  • Slide 9 | © 2013 GXS, Inc.Benefits of Cloud Based B2B IntegrationGlobal AccessibilityScalabilityConsistent User ExperienceLow CostEasy to MaintainRapid DeploymentFlexibilityCentral Authentication
  • Slide 10 | © 2013 GXS, Inc.Traditional IT versus Cloud ComputingTraditional IT Cloud ComputingSpeed tomarketEnterprise applications take months oryears to design, code, test and deployCloud provider is responsible for on-goingdevelopment and clients simply use themost up to date application availableSpeed toValueApplications may need to be de-buggedand continually upgradedCloud providers conduct all developmentand testing leaving the client to simplybenefit from its usageSpeed toROIEven with significant capital investment,many companies never get to realisethe expected ROISubscription based model allows a client topay for the service they actually use and isa highly predictable operational expenseManagingTCOCost of on-going support andmaintenance can be over five times theinitial license feeAll on-going support and maintenancecosts are rolled into the subscription feeManagingInnovationTechnology deployment is always atleast one step behind the businessneed, eg a system has to be developedbased on the business needCloud applications allow companies toquickly scale up solutions to businessissues using ‘plug and play’ modules whichcan be utilised as and when required
  • Slide 11 | © 2013 GXS, Inc.Financial Benefits of Cloud ComputingFactor On-premise Cloud-ComputingExpenditureTypeCapital expenditure Operating expenseCash FlowServers and software arepurchased up frontPayments are madeas the service isprovidedFinancial RiskEntire financial risk istaken upfront, withuncertain returnFinancial risk istaken monthly andis matched to returnIncomeStatementMaintenance anddepreciated capitalexpenseMaintenanceexpense onlyBalance SheetSoftware and hardwareare carried as a long-termcapital assetNothing appears onthe balance sheet
  • Slide 12 | © 2013 GXS, Inc.Pre-CloudStateB2B in theCloudB2BKeepCurrentMulti-CloudStrategy(Includes B2B inthe Cloud)StrategicCloud SharedR&D75%10%15%70%6%24%+4%+20%45%6%49%Off-BudgetBenefitsStrategicBusinessBenefit% of Enterprise IT Budget Allocation(Percentages estimated for illustration purposes only)Innovations fundedby Cloud PartnersInnovations Self-Funded by EnterpriseITExpanding BusinessImpact withInnovations Fundedby Cloud PartnersThe Cloud Multiplier EffectHow do you do more with less?Slide 12 | © 2012 GXS, Inc.
  • Slide 13 | © 2013 GXS, Inc.Not Forgetting the Green Benefits of CloudEnvironments...Lower power consumption requirementsLess computer/network equipment packaging to dispose ofMinimises travel requirements for IT implementation teamsIncreased availability of information on lower power devicesLess paper flowing across the supply chainSlide 13 | © 2013 GXS, Inc.
  • Slide 14 | © 2013 GXS, Inc.Thank YouPhonesUS: 1-800-334-2255, option 3EMEA: +44 (0) 1932 776047GXS web sitesUS: www.gxs.comEMEA: www.gxs.eu