Michal Krzycki, Capgemini


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Presentation of Michal Krzycki, Capgemini at the TMT.CloudComputing'11 Warsaw conference organized in Warsaw, Poland on February 10th, 2011 by New Europe Events

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Michal Krzycki, Capgemini

  1. 1. Adopting Cloud Services - How tounlock the value in your businessMichał KrzyckiFebruary 10th, 2011
  2. 2. Introduction  This presentation will not discuss/cover: history of the cloud, discuss differences between various cloud models (IaaS, SaaS, PaaS), or focus on particular technologies or products used  but  will briefly present how Cloud can be adopted to bring value to organizationSource: geekandpoke.typepad.com/geekandpoke/2009/10/the-history-of-the-cloud-part-1.html © Copyright Capgemini 2011 All Rights Reserved 2
  3. 3. What benefits does the Cloud Computing model bring? Can enable the customers of the IT department to focus on delivering business outcomes using resources that are easily varied, customizable and scalable Based on OPEX model, minimizes up-front investments and improve time-to-benefits By radically changing an organization’s infrastructure, Cloud can help organizations bring new products and new markets to consumers faster (time-to-market), lower TCO, and enable a better user experience Offers standardization, flexibility, and business model innovation, changing the competitive landscape within an industry and lowering barriers to new entrants on a global scale Allows for rapid corporation reconfiguration at times when companies need to be able to adapt their organizations and delivery models globally to meet market evolutions and change – (e.g. launching a new website for a product, for which demand is not yet known, can be done very quickly and cheaply ) Pay-per-use model lowers the initial investment (CAPEX) and reduces the risk of over-investment (e.g. ability to purchase capacity on-demand). © Copyright Capgemini 2011 All Rights Reserved 3
  4. 4. How to get to the clouds? © Copyright Capgemini 2011 All Rights Reserved 4
  5. 5. Companies have a variety of choices when they investigate theway forward in their cloud adoption The figure below illustrates the four* most likely paths for cloud adoption: * In fact, there is a fifth path. The fifth path is the zero option, which basically comes down to: "leave the cloud and continue with business as usual" There is no single answer to the question of how to move forward. The answer will be based on the ambition and risk appetite of companies and organizations. © Copyright Capgemini 2011 All Rights Reserved 5
  6. 6. 1-”Cloud@Once”Big bang cloud based implementation For existing companies with legacyFor market newcomers systems • In 2009/2010 almost every newcomer in the • Route with challenges! market used this model • Forced to work and do business in a completely • They needed the minimum of time and money to different way be in business – New business processes • No legacy allows to benefit from all the goodies – new business applications Cloud Computing has to offer – new information models – new sourcing, – new governance & security models • Most existing companies fear the continuity of their business. If there is not a crucial reason to do it this way (e.g. bankruptcy) Best choice! Think twice! (probably better start a new organization based on Cloud Solutions)Capgemini have examples that the "Cloud@Once" can work and can be very successful, and all the cases were from organizations in great need or despair. © Copyright Capgemini 2011 All Rights Reserved 6
  7. 7. 4-„Collaboration”The most easy way to start The most easy way to start with Cloud Computing is to use some productivity and collaboration tools in the cloud Business can continue as usual, but some elements are placed outside in a Cloud bringing reach functionality and tangible benefit – Google Mail and Google Apps • Minimum effort and costs users have access to the most important office and email functionality. As bonus they get instant messaging, video conference and more for free, enabling collaboration with colleagues and customers. – Microsoft BPOS (Business Productivity Online Suite) • Familiar Business Productivity tools in the Cloud (Exchange, Sharepoint, Office Comm, LiveMeeting) This first step to the Cloud is often not as simple as it seems! – The IT department, the legal department and the security department will often hold you back • In general all these departments may see Cloud as a threat for the organization (…and their own) – „Cloud is not safe enough and that Cloud wont fit in our current security and compliance policies” – Although a simple adjustment to policies may enable the organization to use cloud computing, in our experience there is often a strong resistance For more information please refer to www.capgemini.com/google-apps/ or Google for „Capgemini BPOS” © Copyright Capgemini 2011 All Rights Reserved 7
  8. 8. In SaaS, Content, Communication and Collaboration (CCC) segment will grow the fastest, driven by high customer interest SaaS Segment Growth Projections Revenue Trend and CAGR, Key SaaS Segments • Enterprises are most keen on adopting the cloud model for CCC applications (Figures in USD billions) – At 67.3%, collaboration applications have the highest likelihood of adoption from enterprises 21.3% 17% 14.7% 7.3% • Market segments such as email and team collaboration will witness a steady surge in SaaS usage – SaaS represents less than 10% of the total enterprise 5,61 market spending in the email category • However, a strong focus from players such as 4,1 Google and Microsoft on SaaS delivery will drive adoption – Team collaboration segment is gaining in popularity from influences from social software and distributed 2,14 virtual teams 1,87 1,67 1,4 • SaaS represents nearly 47% of the total market 1,17 0,71 revenue in this segment which is expected to rise steadily CCC CRM SCM ERP 2008 2013 CAGRSource: Capgemini TME Strategy Lab analysis; Company Websites; Gartner, “Market Trends: Software as a Service, Worldwide, 2008-2013, Update”Note: SCM – Supply Chain Management © Copyright Capgemini 2011 All Rights Reserved 8
  9. 9. 3-”Safe exploration”Explore universal domains Some domains in any organization are more or less universal and not fully dependant on other domains – e.g. Sales&Marketing is typically such domain • Every organization has suspects, prospects and customers • Every sales or marketing department has offerings for and interactions with customers. • They all keep track on the sales and orders. – This kind of autonomous and standardized domains are ideal to migrate to the cloud – The safe exploration route may contribute to your business objectives but can also be used to, without any really big risk, to taste the power of cloud – If you want to use SaaS solution for your autonomous domain, use it as it is. Combine available Saas business services as needed, fine-tune the web interfaces as neatly as you want but this should be it! By uploading your company logo, your screen layouts and your customers info you can be productive in a matter of days or weeks. – We proved the speed of this way of working by doing a test case during the "Business in a Day" conference. Within 2 hours 2 colleagues were able to set up a complete operational environment with functional specifications and requirements taken from the audience and it worked! Our advice: Use SaaS solution as offered! © Copyright Capgemini 2011 All Rights Reserved 9
  10. 10. Let the Clouds make your life easierSource: geekandpoke.typepad.com/geekandpoke/2009/03/let-the-clouds-make-your-life-easier.html © Copyright Capgemini 2011 All Rights Reserved 10
  11. 11. 2-”Dual Approach”Transfer integrated systems to Cloud Plain Iaas – the most easy and straight forward way – Use an IaaS Cloud provider (e.g. AWS). Move your back-office environment (applications and databases) to IaaS and reboot in the Cloud. Mixed mode (some systems in the Cloud and some systems on-prem) is possible and will work. • Advantages: Simple to do, saves money instantly when taking out your own data-centre and technical personnel • Disadvantages: You dont get ride of the „mess”, you just moved it to the Cloud. You still have to develop and maintain your own applications, all the issues between IT and business still remains. A "Plain IaaS" solution will free some budget but it will not really help the business in their need for a quicker Time to Market SaaS/PaaS and Bus – Do not to move existing applications to the Cloud but start using SaaS and PaaS and Extended Bus to integrate Saas/Paas to your on-premise systems • Advantages: Can simplify the application landscape by using functionality from the Cloud. The model give the possibility to swap services in and out easily giving the possibility to optimize cost and usability. It will shorten Time to Market by selecting existing business functionality not by building them. Step by step you can clean up the „mess” and after a while you will save money. • Disadvantages: SaaS/PaaS + Bus only works if you are using more or less standard functionality and information. All the specials will give you a lot of trouble. Visit immediate.capgemini.comand read about Immediate Cloud ecosystem and how it allows our Customers to rapidly achieve the business outcomes. © Copyright Capgemini 2011 All Rights Reserved 11
  12. 12. Journey to Clouds - summary As stated earlier; there are various routes to the Cloud; your choice depends on a lot of factors, like: – The organization & business type – The ecosystem and competitors – The urgency in saving money or be more agile – Current application landscape – Risk appetite – Influence of the Legal & Security departments – Wiliness of the IT department – The attitude of the CIO, is he/she enlightened or frightened? It all comes down in defining a solid Cloud strategy including a realistic roadmap! – Selecting the right path for your organization requires new ways of thinking and access to processes that will accelerate service deliveryCapgemini advise: invest in „Cloud readiness workshops” to help you better prepare for the future .. in the Clouds! © Copyright Capgemini 2011 All Rights Reserved 12
  13. 13. There are many risks and things to consider on the journey tothe Cloud Some key issues and points to consider include: – Provider Lock-In • Understand the duration of the contracts you have in place. Plan an exit strategy from the start • Important is strong due-diligence, knowledge, and relationships with the best-in-class Cloud Computing providers to ensure their ability is guaranteed before using the service – Data security • Prepare for losing the comfort of having all your data between your own four walls! – Compliance/Regulations • Extra agreements are needed to make it possible to apply the laws about personal and financial information to the Cloud provider – SLAs – Change old supplier selection and contracting processes • Traditional procurement processes may cost the business more than the Cloud Service being procured! – Try before you buy! • Focus on business outcome not technology • Use common free trials to build prototype • Jointly developing the prototype, business and IT department, each party will have a clear understanding of the requirements, dependencies and costs © Copyright Capgemini 2011 All Rights Reserved 13
  14. 14. Closing statement Cloud Computing introduces benefits and big changes… … some habits will need to change!Source: geekandpoke.typepad.com/geekandpoke/2009/10/the-history-of-the-cloud-part-1.html © Copyright Capgemini 2011 All Rights Reserved 14
  15. 15. Thank you very much for your attention!Michał Krzyckimichal.krzycki@capgemini.com