Open Networks, Trusted Clouds: Peter Coffee at Cloud Expo 7 Nov 2011


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Beyond cloud as IT replacement, to cloud as assumed environment for radical acceleration of business process and global expansion of customer community

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Open Networks, Trusted Clouds: Peter Coffee at Cloud Expo 7 Nov 2011

  1. 1. Open Networks,Trusted CloudsThe Road Map to „Social‟ SecurityPeter CoffeeVP / Head of Platform inc.@petercoffee
  2. 2. Safe HarborSafe harbor statement under the Private Securities Litigation Reform Act of 1995: This presentation maycontain forward-looking statements that involve risks, uncertainties, and assumptions. If any such uncertaintiesmaterialize or if any of the assumptions proves incorrect, the results of, inc. could differmaterially from the results expressed or implied by the forward-looking statements we make. All statements In Other Words:other than statements of historical fact could be deemed forward-looking, including any projections ofsubscriber growth, earnings, revenues, or other financial items and any statements regarding strategies orplans of management for future operations, statements of belief, any statements concerning new, planned, orupgraded services or technology developments and customer contracts or use of our services.The risks and uncertainties referred to above include – but are not limited to – risks associated with developingand delivering new functionality for our service, our new business model, our past operating losses, possibleEverything That You See Herefluctuations in our operating results and rate of growth, interruptions or delays in our Web hosting, breach ofour security measures, risks associated with possible mergers and acquisitions, the immature market in whichwe operate, our relatively limited operating history, our ability to expand, retain, and motivate our employees is Realand manage our growth, new releases of our service and successful customer deployment, our limited historyreselling products, and utilization and selling to larger enterprise customers. Furtherinformation on potential factors that could affect the financial results of, inc. is included in ourannual report and on our Form 10-Q for the most recent fiscal quarter: these documents and others areavailable on the SEC Filings section of the Investor Information section of our Web site.Any unreleased services or features referenced in this or other press releases or public statements are notcurrently available and may not be delivered on time or at all. Customers who purchase our services shouldmake the purchase decisions based upon features that are currently available., inc. assumesno obligation and does not intend to update these forward-looking statements.
  3. 3. Public Clouds of Public Trust:The End of „Forbidden Zones‟ General Economic Health & Defense & TransportationGovernment Development Human Services Public Safety Science & Environment Political Campaigns & Advocacy Culture & Education
  4. 4. The „Power Lines‟ are Cloud Connections(Arcs Represent Number • Distance of Facebook „Friend‟ Links) Pop quiz: where is Beijing?
  5. 5. Because…Peter Drucker Had It Right  “The typical large organization, twenty years hence, will be composed largely of specialists who direct and discipline their own performance through organized feedback from colleagues and customers.”  “It will be a knowledge-based organization.” Peter F. Drucker, in The New Realities …in 1989
  6. 6. Old IT Models Don’t Liberate Knowledge Complex legacy IT portfolios make the simplest data integrations an overwhelming task Cumbersome, brittle integrations demote end users to information consumers Path of least resistance then over-emphasizes rear-view mirror views of historical data – or deep inspection of recent past
  7. 7. The Critical New Role of „Cloud‟ Old Cloud: Centralization + Automation  Cost Reduction – Distant resources: considered to be a tolerable nuisance – Security: assumed to be a challenge, and compliance a barrier – „Cloudwashing‟ of legacy products: tempting and easy New Cloud: Connection + Simplification  Acceleration – Data and process in cloud are closer to everything else you need – Security is part of the service; audit trails are easy to provide – You can‟t „connectwash‟ a server, no matter how much virtualization you apply or how many „private clouds‟ you proclaim – In false clouds, you pay for resources… …in true clouds, you pay for opportunities
  8. 8. Ten Year Computing Cycles 10X more users with each cycle “Whereas earlier entrepreneurs looked at the Internet and saw a network of ‟10s Social computers, Zuckerberg saw a network Revolution of people.” – Time, 15 Dec. 2010 ‟00s Mobile ‟90s Cloud ‟80s Desktop Computing Client/Server Cloud ‟70s Mini Computing Computing ‟60s ComputingMainframeComputing Data Business Process Web Mobile SocialManagement Logic Apps Automation Apps Apps Apps Apps Apps
  9. 9. Social Revolution: Social Networking Surpasses Email 1.1 Social Users billion social users Email Users 2007 2008 2009 2010 2011Source: Comscore, June 2011
  10. 10. Social Revolution: The WAWKI* is Shrinking 2010Sources: Ben Elowitz, Wetpaint / comScore 2011
  11. 11. Beyond Just „Being Social‟  Where are key players already having conversations?  What facilities exist for tapping that stream?  What are the cultural norms of that community?  When should you be present?  How should you participate?  Who will represent you?  How will that process scale?  What will you learn?  How will you change?
  12. 12. Whose Knowledge Is It, Anyway?  Innovation “goes rogue” when: – Products are open-source and/or highly configurable/customizable – Some users have incentive to innovate – Some innovators have incentive to share – Diffusion of innovations is inexpensive  The user conversation will take place – Users can readily find each other – Users turn to each other for affirmation as well as for assistance – You can host the conversation
  13. 13. The Customer Redefines the Product“ Ideas has been an unbelievable home run. We are loving it―the voice of the customer is totally present at Starbucks in a brand new way, thanks to the platform.” Chris Bruzzo CTO, Starbucks
  14. 14. What Role for „The Crowd‟? Sift more dirt, find more gold – Gold mines are viable at 1 g. Au / ton of ore – Costs of mining crowdstreams continue to fall The oddly opposite models: – Consensus surpassing the sum of the parts – Individual contributions, appropriately incented Can the crowd survive its success? – “Even mild social influence can undermine…wisdom of crowd…” Proceedings of the National Academy of Sciences, 16 May 2011 – Vital elements: Diversity, Independence, Decentralization, Aggregation
  15. 15. „Social‟ is a model, not an application Collaborative process creation Best practice sharing Andrew Leigh. I need to create a new customer service process for the iPad, can Integration with you guys help? New process created: iPad Tier 1 Support social channels Process (Goals: Run time, 5 min) Social process Steve Wood. Great I can help with the case escalation by linking in the Apple Escalation Process. monitoring Varadarajan Rajaram. Yes, I know this product well there are a bunch of solutions I can build into this process.
  16. 16. Chatter for 320,000 Toyota Vehicles Employees Social Customer Profile Dealers/Distributo Toyota Friend rs Mobile Toyota Friend1-800-4-My- Website Toyota Manufacturing/ Toyota Friend Finance on Youtube Toyota Friend on Toyota Friend Toyota Friend Facebook on mixi on Twitter
  17. 17. Products Become Participants Instant updates, not limited by human speed or attention Effective integration of hardware speed & human judgment The next new application opportunity public String CloudThoughts{ get; set;} Mike Leach,
  18. 18. Enterasys Devices Are Now Social Network congestion in Asia. Facebook, Twitter, and Chatter notifications Users receive alarms and alerts Enables rapid response Reduces system downtime
  19. 19. Cloud leverage empowers innovatorsRapid iPad Deployment for Patient Prescreening One developer with no prior training built a mobile app in just 4 days Deploying to Medical Directors, Program Directors in hospitals on iPhones and iPads Eliminates paper forms, workflow cuts response time by more than 60%“We‟re blown away by how we built a mobile Cut processing time from 18 hrs tohealthcare application on with one less than 60 minperson in just 4 days…The same app built in .NET would have takenover 3 months”
  20. 20. Cloud Connection Margin Growth and Brand Differentiation “One automaker‟s chief financial officer told Sun COO Jonathan Schwartz that his company could give a car away for free, if it could charge a customer $220 per month for a subscription.” “CE device margins are razor thin, and the promise of maintaining an always-on connection to the customer after the point of sale is mighty enticing… Simply put, connected devices make connected customers.” Richard Schwartz, President and CEO, Macheen
  21. 21. Cloud Concerns Are Being Addressed  Security: American Bankers Association blog says an enterprise should “verify that any outsourcing partner meets its standards. However, once verified, a cloud partner can actually provide greater security.”  Availability: – now routinely exceeding 500M transactions/day – In June 2011, achieved 100% of planned availability  Compliance: United States‟ National Institute of Standards and Technology says cloud-resident data “can be more available, faster to restore, and more reliable… [and] less of a risk than having data dispersed on portable computers or removable media.”
  22. 22. Data Stewardship is a Practice, not a Technology  Data protection regulations – Where can it be stored? – Who‟s allowed to see it?  Peel the onion of „compliance‟ – Anonymize/encrypt/partition specific fields – Cloud disciplines can enhance auditability • Role-based privilege assignment • Actions taken using granted privileges  Looking at the laws is not enough – USA PATRIOT Act inspires concern from global collaborators who may fear a multi-tenant „dragnet‟…but… – Court rulings already encourage escrow/isolation of targeted data when a multi-tenant system is involved
  23. 23. Becoming „Securely Social‟  What is the organization‟s mission?  What information supports that mission?  Where does it originate?  Who holds it?  Who can see it?  What events change it?  When is that important?  How do people know?  How can people act?
  24. 24. Trust is Essential to Cloud Adoption  Robust infrastructure security  Rigorous operational security  Granular customer controls – Role-based privilege sets – Convenient access control & audit  “Sum of all fears” scrutiny and response – Multi-tenancy reduces opportunities for error – The most demanding customer sets the bar
  25. 25. “Do it yourself” vs. “Who you gonna call?” Potential benefits from transitioning to a public cloud computing environment: • Staff Specialization • Platform Strength • Resource Availability • Backup and Recovery • Mobile Endpoints • Data Concentration
  26. 26. The Future Has Already Happened When a bomb explodes, it takes some time before you see anything happen…but the energy has been released Three fundamental energies are in play: – Connectivity • Capacity in place • Protocols and power management – Mobility • Devices drive cloud demands – Social interaction model • Already more popular than email
  27. 27. In Conclusion „Cloud‟ is the things that you want someone else to do, but: – „Social‟ describes what your workers and customers want – „Mobile‟ describes what they need – „Open‟ describes the freedom to do it the way that works for them Cost reduction is not the path to leadership – Cloud models make it easier to match IT costs against business tasks – Superior ROI, and compelling improvement in time-to-market, change the terms of debate surrounding IT investments and resources The job of the „IT professional‟ is changing – Integrator of services, rather than buyer and operator of technologies – Instigator and manager of innovative tools and processes – Enabler and custodian of relationships and insights
  28. 28. If you want a radical improvement… …you can‟t settle for incremental change
  29. 29. Peter CoffeeVP & Head of Platform Research Q&A?