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  • 2. Copyright © 2011 ValueTeam.All rights reserved.
  • 3. The current challenge for companies is“change management“ (from culture, tothe organisation, to technology).Organisations face many challenges: competition coming out of nowhere , internationalturmoil, rising costs of raw materials, energy and labour, access to qualified knowledgeworkers and an ever accelerating of technological innovation.In this environment, it is not easy to stay on course, have a coherent strategy and at thesame time maintain costs under control.CEOs, CTOs and CIOs have to provide their companies and organisations with a set ofsolutions where the orchestration of a huge array of resources is the key success factor.In this paper, Value Team states how it can support its clients in attaining this ability toorchestrate and govern their organisations through an adaptive use of disruptivetechnologies such as Cloud Computing.The revenues generated by Cloud Computing services are growing worldwide 148.8 US$billion forecast by Gartner for 2014.What is also thought to increase is the adoption of cloud services by both companies andend-users. Over the next 5 years, they will spend US $ 112 billion on software-as-a-service(SaaS), platform-as-a-service (PaaS) and infrastructure-as-a-service (IaaS).Coping with the world of Cloud Computing implies a mindset shift and requires the know-how and experience from those who have it. It is the combined knowledge of the assetsinvolved, like that of technology, organisation and resources together with that of theenvironments, like the infrastructure, the platforms and the applications.Value Team, with competences, methodologies and experiences, aims today to serve themarket as a Cloud Services Enabler. ICT governance in this relatively new paradigm, is aquestion of balancing the competitive cost of not using the cloud, against the risks of actuallyusing it. There are opportunities and risks to take into account. This requires a fairassessment of the situation, and to face and address themes such as data and infrastructuresecurity as well as quality of service requirements.So how are organisations reacting to the “paradigm shift” which “cloud” stimulates?Telecommunications operators are investing in the development of those advanced serviceswhich Cloud Computing enables to introduce ICT cloud offerings to their markets.Financial Services and Insurance are looking to Cloud Computing not only to optimise costsand deliver efficiency, but also to improve existing channels and exploit new ones.In the Utilities market, remote-reading and remote-management are areas where governedCloud Computing delivers interesting real-time synergies when combined with innovativeCRM platforms and the “internet of things”. 3
  • 4. For Government (both central and local) the role of Cloud Computing, along with theadoption of “open source” technologies is even more crucial in delivering digital services tothe citizens.We believe that the overall challenge can be paraphrased in “governing the context”.This means to address ever-growing expectations of users towards technology (don’t we allexpect our ICT operations to run as smoothly as the commodities we use every day: easy asthe music on our iPod? safe as our Volvo, and as much fun as drinking our Coke?). It meansto control securely virtual environments, deliver services seamlessly on time, on budget andin an elastic fashion.It means to make more and more services available on a self-provisioning and self-serving basis. It means to run business-oriented“The revenues services in the cloud.generated by cloud The managers of our clients and prospectscomputing services are all facing this “shift” and we are aware of that. We are also aware that Cloudare growing Computing can be a very “democratic” technology. For example it allows even smallworldwide; 148.8 companies to access very powerfulUS$ billion forecast solutions easily. Ten years ago only large corporations could afford CRM Gartner for Nowadays even the bakery in your neighbourhood could have a2014.” “” account (and it could have it within minutes from ordering online) to better serve his/her clientele.Then there is the widespread availability of super-functional mobile technology with the likesof smart-phones, tablets, thin clients etc. This mobile technology responds very well to thenew ways of conducting business and to what we now call “mobile workers”. Finally there isthe emergence of strong business models that leverage the “social” side of internetcomputing. Facebook, Twitter, Google mail, Dropbox etc. are now household names.These disruptive tools (and others) have boosted overall productivity and are a strongreinforcing trend in the adoption of Cloud Computing which exalt the horizontal scalability,typical of “social networks”.The provisioning of these services, which when you look at Amazon or Google, seems to beperformed effortlessly, actually requires massive preparation and a general mobilisation of ITresources which is far from easy to execute.In this ever-changing framework, the Value Team value proposition is independent of theCloud Computing services and IT offerings currently on the market. At our core, as a4
  • 5. strategic consulting company specialised in ICT themes and as a systems integrator, ValueTeam has the capability to design and enable Cloud Computing, and also to engineer anddeliver the instruments necessary to govern the cloud and eliminate the risk. That’s why wedescribe ourselves as a Cloud Services Enabler.In fact, in spite of the great hype which surrounds “cloud”, we are fully aware of the fact thatalthough “cloud” is often referred to as a “game changer”, so have the rules of the gamechanged!. Best practices in the cloud are yet to be established and the integration ofsystems, business rules and legal frameworks is far from simple in terms of analysis,process and execution. It is facing and overcoming these various degrees of complexity thatwe aim to deliver to our clients and prospects.Finally we also offer a selection of Software-as-a-Service turnkey solutions built upon ourdirect experience in the market. This serves also to prove our ability to implement in the firstperson cloud services, and to build our credibility in the eyes of our clients and prospectswhen it come to putting our money where our mouth is.Navigating the cloud is not easy but Value Team is ready to guide you. 5
  • 6. “CLOUD COMPUTING” : 1 A SERVICE ORIENTED ECONOMY. DEVELOPMENT AND Technologies (ICT) are an enabling factor of BUSINESS MODELS contemporary society and the very sectors As we anticipated earlier, Cloud Computing which are driving the economy are developed thanks to the convergence of at experiencing parallel organisational evolution least three major trends over the last few solicited by the availability of new years: service orientation of IT, virtualisation, communications channels and devices. and simplified access to resources via the For ICT, the change is driven by both Internet. Its diffusion is due to the external factors, such as the evolution of development of large-scale data centers, services from large providers (infrastructure broadband connections and pay-per-use and application), the availability of new1 “Cloud computing is a model for instruments and the penetration of Internetenabling convenient, on-demand payment access to a shared pool Cloud Computing is differentiated by three usage [Fig 2], but also internal factors, suchof configurable computingresources (e.g., networks, service models (SaaS, PaaS, IaaS) and as aggressive IT cost control andservers, storage, applications, three deployment models (Public, Private, technological and product innovation have aand services) that can be rapidlyprovisioned and released with Hybrid). [Fig. 1] big impact.minimal management effort or In this sense opportunities have arisen whichservice provider interaction”. The Internet and mobile markets are moving theNIST Definition of Cloud attention of both businesses and consumers certain companies have managed to takeComputing , Authors: Peter Melland Tim Grance, Version 15, 10- to “service oriented” models. Therefore timely advantage of, such as Rentokil Initial7-09 Information and Communication for example2 , which is implementing Cloud 6
  • 7. Fig.1 CLOUD TYPOLOGIES: PRIVATE, PUBLIC E HYBRIDsolutions to handle e-mail and collaboration NAVIGATION THROUGH THEsystems and cutting its’ costs in this area by CLOUDS70%. Cloud Computing requires decisions made inThe current challenge for companies is a framework of both opportunities and risks:“change management“ (from culture, to the OPPORTUNITIESorganisation, to technology). Cloud • Newly defined business models;Computing, in this sense, is similar to the • Economic sustainability;urban development of a large metropolis: • Maturity of the model and services;one may decide to govern the growth of a • Solidity of SLAs and infrastructures;city following a regulatory plan or suffer • Flexible governance of fragmented,random growth, witnessing the development distributed services;of unstructured suburban areas, which future • Management of the transformation processgenerations will then have to deal with and of the architectural model.manage. FIG.2 DIFFUSION OF INTERNET AND PERCENTAGE OF USERS BY COUNTRY. 2 BBC Business News, May 5, 2010, “Cloud Computing for business foes mainstream”, Tim Weber 7
  • 8. RISKS The diffusion of Cloud Computing is also • Low level of penetration; driven by benefits including: • Offer not very clear; • Access to distributed resources: Cloud • Lack of clear evolutionary roadmap; services fit well with mobile interaction, for • Infrastructural problems for external/public example from a optimised web interface on cloud; a handheld device. This applied in a global • Difficulty of data management in Clouds market with distributed organisation means (e.g., person data privacy laws in different the ability to access services regarless of countries). the location (think of the workforce management systems or the sales force Value Team is proposing to its clients and tools). prospects a model for active risk • Velocity: basic Cloud services are management and to control the virtual “transparent” and designed for enabling environment, rendering the cloud elastic for direct or even self-procurement of hardware business use while offering secure services. and software systems (for example on Amazon AWS you can get “virtual” WHY CHOOSING CLOUD resources less than15 minutes) Gartner and other international research and • Value for money providers operate analysts companies3 have highlighted the systems for multiple organisations on a very fact that Cloud Computing is a technology large scale. Sharing the resources and “which cannot be ignored”. [Table1] obtaining greater economies of scale at a The major analyst firms estimate that some lower cost for the organisation is a direct 4 billion people worldwide use a mobile benefit which IT can pass on to the phone, and some 450 million connect to the business side. Internet mainly via a mobile device. • Scalability: Cloud enables rapid growth, TABLE 1 NEEDS USE VIRTUALISATION OF ICT Handling enormous quantities of data Distributed computing RESOURCES FIRST AND CLOUD Remote storage Designing distributed products and Blog COMPUTING TODAY PROVIDE A services (co-creation) Messaging and collaboration and/or RESPONSE TO CONSUMER AND distributed supply chain management BUSINESS NEEDS platforms Horizontal communications (between Machine to machine communication OVUM, “2010 Trend to Watch: persons, persona-to-thing, and thing-to-3 (remote metering & reading in utilities )cloud computing”, 2010, thing)Laurence Lachal, Steve Domotics (intelligent building)Hodgkinson - “Computermediated transaction” Hal R. Eco-sustainability of IT Green ITVarian, Ely lecture to the Shared resources.american economics association,Atlanta GA, 2010 - “The data Collaboration and interaction in mobility, Social CRMdeluge” The Economist, in real time eLearningEconomist Special report, 2010 Video Conferencing“The Big Switch: rewiring theworld from Edison to Google”Nicholas Carr, 2009 8
  • 9. the management of peaks and THE ECONOMICS OF CLOUD overloads is catered of. Even small and In these times of financial discontinuity and medium firms can easily access these economic turmoil, reflected in the media and large-scale operations. experienced directly through domestic• Continuous innovation: markets, Cloud Computing is sometimes the majority of providers continuouslupdate perceived as the response to a greater their infrastructures, regularly demand for rationalisation of ICT costs. This proposing new demand is what every CTO or CIO has to services and functionalities that are made deal with everyday in their own organisation readily available to organisations and about which every CEO and CFO is regardless of size, ability to invest and asking these key IT roles. The request to more and more often, their ability to “reduce cost” is hard to answer to. Which understand technology. costs then? How? What is the business impact?Value Team has worked accurately in orderto build a new capability within its Value Team believes that the actual problemorganisation to help customers and lies in the alignment of costs to businessprospects to assess, case by case, which value (e.g., revenue, profit, market share,benefits can be effectively obtained given a etc.).specific company background. Finally toenable these through the implementation of This imposes a discipline and a novel abilitya customised Cloud strategy programme to answer key questions such as:which fits the organisation and its ability to • How to quantify and qualify the impact of ICTactually implement such a plan. costs by service on the businesses they support? FIG.3 NEW CHALLENGES: COMPANIES MUST BE ABLE TO MATCH LEGACY SOLUTIONS WITH THE INTERNET AND CLOUD APPLICATIONS BROUGHT INTO THE COMPANY 9
  • 10. • How do you make these costs visible in a organisations we work with, nor does it works clear and transparent manner to the for all business processes, we think it may be business? sensible to commence measuring ourselves• Which performance indicators do you use? against Cloud Computing on terrains which,• What are the business KPIs? by their nature, are better suited to• What does “pay-for-use” mean in your experimentation. organisation?• How can this model be defined and The experience which emerges from the integrated in your company accounting analysis of the conduct of the most system? innovative companies in the field of Cloud• How do we measure the “added value” of Computing indicates that it may be sensible this effort in business terms (for example in to “move” services such as collaboration (e- terms of indicators such as the reduction of mail, messaging etc.), personnel accounting, client and contact acquisition costs etc.)? Enterprise Content and Document Management, CRM applications. CloudFrom our standpoint, the massive and Computing can also assist peak trafficpervasive presence of ICT in all of the management when dealing with Portals andcompany’s processes and activities, the e-Commerce sites.increasing complexity of ICT let alone its“global” character (no -related to domesticissues), non conventional competition andrapid adoption of new enabling technologies,are exposing in all of the organisations wework with, both large and small ones, that anew model of governance is mandatory.The concept of “ICT Governance” whenapplied to Cloud Computing, indicates theprocess of controlling all of the ICT resourcesin order to manage and guarantee that theorganisation reaches its own objectives:• Strategic alignment of ICT to the business;• Control of the costs and value which the use of ICT generates or may generate;• Management of ICT related risks;• Infrastructure management;• Management and measurements of performance on hybrid systems (internal and external to the organisation) [Fig.3]Although we are aware that caution isrequired and that it is true that this modeldoes not necessarily fits to all the10
  • 11. NAVIGATING THROUGH THE CLOUDVALUE TEAM VISION organisative which have been moreTo achieve a “governed Cloud” means being innovate in adopting Cloud Computing, oneable to offer business and IT services rapidly observes that two further reasons pushwith an underpinning economic logic of “pay- towards the Cloud: on one hand the growingper-use”. In further detail it means to have need to co-create content, products andput together a clear cost-assignment model services (the “Facebook” model, which isfor the use of the resources, their availability addictive and self-sustaining) and on thelevel of reliability, and their horizontal other hand their highly distributed nature (justscalability etc. Cloud in this sense represents think about the mobile technologies availablethe idea of provisioning services and today vs. 5 years ago).resources oriented towards key businessperformance indicators (KPIs, Service Levels The infrastructures on which this massiveor SLAs). collaboration is occurring today (and willThe elastic delivery of resources on a pay- occur with increasing frequency in the future)per-use basis however, is founded on top of are distributed. They are virtualisedreal infrastructures, and although they are architectures, that is; Cloud Computing.aimed to respond to the evolution of As we have said, this “virtualisation” dependsorganisational necessities, albeit now directly on physical elements of thevirtualised, they are still real. infrastructure. Furthermore it is important toAgain exploiting the experience of those make our clients and prospects consider the 11
  • 12. fact that virtualisation is never free of charge, SCALABILITY AND ELASTIC nor does it deliver benefits by itself, without COMPUTING impacting management of the complexity of The association between service oriented the underlying ICT infrastructure. economy and Cloud Computing has its’ For example the virtualisation of physical origins in the model of virtualisation, of resources (a pre-requisite of Cloud abstraction and definition of software Computing ) operationally imposes architecture which was anticipated an lead maintaining control of many aspects, by SOA (Service Oriented Architecture) including: some years ago. Successfully operating on • proliferation of virtual servers; services that expand and contract • the increment in physical storage; dynamically as needed according to • system configurations; business policies means approaching a cost • the management of peaks in workload; model which adapts elastically to business • the heterogeneous nature of the platforms; needs and objectives. Many international • the complexity of the architectures; vendors are moving in this direction. Each of • data security. the players we observed are working mainly in a single layer (generally their strengths or In this sense Value Team can support clients core business) focussing on criteria of and prospects in assessing the impact of technical elasticity and often not bound by Cloud Computing on IT investment plans. economic and business value criteria. One typical assignment which VT performs is assessing the need to purchase new, large, Value Team is not limited to a single layer of costly proprietary infrastructures vs. the Cloud computing services (i.e.: IaaS, outsourcing into public, hybrid and private SaaS, PaaS) but carries forward a vision clouds “hosted” by cloud providers such as aimed at governing the trends in peaks, Telecom Italia, BT, NTT Data, Verizon or allocation and the relative impacts on the international players such as Microsoft- ROI of all services across all models of the Azure, Amazon Web Services, Rackspace Cloud Computing. Hosting, etc..FIG.4THREE DIMENSIONS OF THECLOUD: ENABLINGTECHNOLOGIES,GOVERNANCE PROCESSESAND SLA COMPLIANCE, ASSEEN WITH A SECURITYVIEWPOINT 12
  • 13. FIG. 5 SETTING UP THE OPERATIONAL MODELPROCESSES & TOOLS OF health of services, guarantees the security ofGOVERNANCE FOR the environment, provides visibility of criticalAPPLICATIONS & components, and delivers effectiveness inINFRASTRUCTURE respecting Service Levels (Security,The growing evolution of IT applications and Management & Control, Applicationservices imposes on the platforms and Performance Monitoring, Adaptableinfrastructures, as on the processes which Automation).govern them, deal with variable workloads • SLA Compliance between business KPIsand respond to business requirements in and ICT services/resources (e.g., Intercloudterms of availability, costs, performance, SLA Broker, Peak Overload, Dynamic Workscalability, reliability and agility. Load Management, etc.);The same underlying technologicalcomponents must have characteristics of In addition to these dimensions there is thegranularity, inter-operability, portability and integration to and with security services,independence of the hardware layer in order which enables user and accessto permit their dynamic organisation, management, handling data privacy issues,operation and delivery on the basis of audit independence, Business Continuityservice criteria that comply with these and Disaster Recovery. Value Team has theobjectives. competencies to support the design andCloud Computing is characterised by 3 construction of solutions with structureddimensions: [Fig.4] operational models [Fig. 5], guaranteeing• Enabling technologies and solutions, high standards of security, performance, which provide elasticity, security and availability, flexibility and automation scalability of data and application THE ENABLING management (vStorage, vNetwork, TECHNOLOGIES vComputing). This paradigm of delivery requires• Governance processes and solutions substantial re-engineering of the which deliver direct feedback on the state of technologies and methodologies in the field 13
  • 14. at both the infrastructure level and that of PROCESSES, TOOLS ANDapplications and services: INTEGRATION The ease of use and speed of adoptionINFRASTRUCTURE introduced by Cloud Computing is reflectedThe network, as the storage systems and in a greater complexity of the architecturesservers, must offer elevated performance so and technologies, and in greater stratificationas to constitute an ample reservoir to draw of the application context. This poses new,on and to instantiate the necessary more challenging problems with respect toresources, assigning them configurable the traditional “silos” models, such aslevels of service (Quality of Service) on the contention for hardware resources, thebasis of the criticality of the data, the reconciliation of application priorities, and theimportance of the user and the application fragmentation of governance responsibilities.context, with the ability to handle anypossible peak overloads drawing, for In Value Team’s view, the definition andexample, on a pool of external resources enforcement of Service Levels (SLA) is the(previously negotiated), applying clear critical element of delivery of ICT services inbusiness rules (e.g., to protect the paying the cloud. For example, one mightuser, preserve the availability and execution hypothesise sizing an application or a portalof the showcase components, etc.). on the basis of its actual adoption, privileging business users (e.g., “Gold” or “VIPs” ) overPLATFORM guest users and predicting dynamic growthSelected platform containers must be of the resources against peaks in utilisationengineered to enable and guarantee high through opportunistically configuredstandardisation of the application layer, and automation the same time guaranteeing high level ofscalability and reliability as well as efficient This permits a significant reduction in theuse of resources. initial investment (usually CAPEX) and by introducing a pay-per-use model correlatesAPPLICATION effective use of the resources (costs) toService oriented architectures have the business growth (revenues, share, customerobjective of transforming complex processes satisfaction, etc.) not to mention the ability tointo the controlled orchestration of more discriminate among users and the impactsimple and discrete application components that can have on your CRM’s capabilitiesor services. It is therefore also possible tomodify and simplify the interaction between SECURITY INTHE CLOUDSservices, and it is easier to add new services An integrated approach to Cloud Computingor modify processes to respond to changing cannot ignore data and infrastructure relatedbusiness requirements, given the security themes. The security themesindependence of binding to a specific requiring attention in the move to Cloudplatform or to a monolithic application Computing solutions may be summarised asarchitecture. In this sense the service may be follows:considered as a component in a wider • User and Access management (certifiedprocess, which can be re-used and modified. authentication and traceability of operations). Cloud Computing exacerbates the problems14
  • 15. of managing users: the multitudes of • Data privacy problems. accounts, the management of diverse silos Legislative regulations (Italian, EU and linked with identities, the use of international) impose strict obligations, which heterogeneous administration tools are some can also set limitations on the country for of the aspects to be considered. In the case of storage of the data. The European use of Cloud Computing services split over Community, for example, with Data Protection diverse providers the governance of the life Directive 95/46/EC, mandated that the data cycle of users becomes even more important must be handled/processed in European in order to guarantee effective control. The Union nations or, where outside the EU, which user federation mechanism too, if on the one have adopted specific protection measures in hand guarantees easy user access to line with EU legislation. services operated by distinct providers, poses • Audit independence. The faculty to perform a series of operational and technological independent audits on the infrastructure challenges, which must be comprehensively delivering the service, in technological and addressed. legal terms, is another factor guaranteeing a• Provisioning. This aspect takes on particular company wishing to approach the world of relevance where account management is Cloud Computing. It becomes even more delegated to diverse providers, each with their important, in the specific case of SaaS, to be own management method. In this case it is able to verify opportune levels of logical, and important to rely on identity management eventually physical, data segregation services integrated with the principal private or respecting the regulations cited above. public Cloud service providers. Some security • Business Continuity and Disaster technology (Identity & Access Management) Recovery. If, on the one hand, Cloud service providers are thus beginning to supply Computing offers a greater degree of flexibility integrated services, which can fully manage than normal BC solution, on the other it users, even in the environments of external requires careful assessment, including public cloud providers. contractual terms, so that the business FIG.6 SETTING UP THE SERVICE MODEL 15
  • 16. processes managed by Cloud Computing personalised questions that helps us to continue to respect their respective planned address the specific nature and needs of our recovery limitations. clients and prospects. The following is an example of our checklistsSecurity is today probably the biggest • What is the priority for the generalconcern of IT executives weighing the business and the specific department?adoption of cloud. Issues such as how do • How is it possible to deliver “just-in-time”users authenticate into the cloud? Who’s resources to support business objectives?responsible for data? Where are services • How can costs for determined services orbeing hosted? What is the back-up policy of service types be identified, measured anddata? How can we be sure that a given controlled?provider is “trusted” and that they adhere to a • How is it possible to align resources withgiven policy? the service levels expected by the business?However Cloud Computing is rapidly • How is it possible to govern a system in aaddressing such concerns. Several Cloud where the application has beenorganisations have been operating mission- developed and/or used by third parties?critical operation in the cloud. For example, • How is it possible to establish a softwaresince October 2008 Wall Street Systems has development service directed solely to theannounced its cloud based Electronic most important services with frequentSettlement Network (a pay-as-you-go post- releases to production environments?trade processing tool for the capital markets), • What are the key application andwhich has been used by five mid-tier, banks architectural parameters (review of multi-for a couple of years already. tenancy of services)?So although we are fully aware that there are • Should “Mock-up” techniques (simulation)security concerns, we also know that as be used?soon as business will be satisfied with the • How can precise access privilegesecurity offered by Cloud Computing, this will management be assured?transform the world. • How to handle sensitive and personal data for Cloud infrastructure delivery andTHE SERVICES OFFERED correctly map the counter measures to beThe Value Team offer consists of enacted to respect the legislativeconsultancy services, together with regulations and guarantee correctgovernance tools and solutions already management of the risk scenarios?developed and operational, thanks to which • How to identify and map the perimeters ofit is possible to define and navigate a custom the classic on-premise systems, privateroute to and through the Cloud. [Fig.6] Cloud infrastructures and services, which can be operated on public or hybridA) DESIGNING THE CLOUD Clouds?Definition of a personalised Checklist • How to modify business continuity andIn Value Team’s methodology, the approach disaster recovery plans to take intoto Cloud Computing begins with the account the specific behaviours of Cloudassessment of client “cloud-readiness”. This services?can be achieved through a set of16
  • 17. Structuring by business priority. can be automated to handle risk situations.Operationally the cloud strategy translates to For example, if SLA adherence is at risk, athe ability to select the most critical business series of actions and notifications cloud beapplications or services and to assign them set up to return the situation to normal.additional resources only when needed fromthe qualified pool of ICT services – in-house B) GOVERNANCE TOOLSdata centre, hosted or partner DC, trusted or Intelligent workload balancing.private cloud services provider, public cloud It is possible to configure a minimum kitservices provider or some combination of internally for a new to-be-offered service or athese. new campaign, and set trigger values beyond which additional resources must beSLA Definition: provisioned “just-in-time” to balance theA consistent set of rules, that support a given workload across the system. Once a stablebusiness policy, is defined to discipline the workload is identified, a decision onprovisioning and deprovisioning of resources incrementing/decreasing the dedicatedas needed, against a determined load and in resources can be taken (with resources frompursuit of specific service level objectives the in house DC or from a partner/provider).(also know as KPIs – Key Performance Once the desired workload is set up for eachIndicators). Value Team offers solutions, application, this load is constantly monitoredwhich permit agile management of ICT and where there are indications of overloadresources respecting given sets of SLAs. It or ‘stressed’ service levels, the application isalso proposes a well-defined service level supplied in near real-time with additionalgovernance “within and among the clouds” resources from the “virtualised environment”(known as “SLA Brokerage”). This entire (e.g. CPU, memory, data storage from thesolution can guarantees correct operation of virtualised Data Center, etc.) or cloud, withthe applications even with the most elevated the mission of balancing the workload duringloads requiring the highest level of reliability. these peaks. The additional resources are then released when the workload returns toModularity and risk mitigation: normal. All scaling operations and the KPIsIt is possible to define a series of detailed that triggered them are recorded andrules tailored to specific business available for analysis, billing or charge-back,requirements, for example, enable for certain SLA outage reports, etc.users the use of determined resources, and So not only is the workload optimized toredirect others to a controlled ‘No’ or invite operate with just the right amount of ‘power’them to take up some kind of engagement or the IT and business owners are providedspecial offer. Also, you can govern the type, with details of the exact cause and resolutionnumber and size of the resource or even its of SLA outages for future improvements andusage cost can be limited to certain users (or customer satisfaction management.user classes). A secure web portal can beused to control and manage the usage status Application performance monitoringof all services and to obtain reports on It is possible to provide timely control ofservice level delivery and SLA ‘health’. increasingly complex applications withFurther, through continuous monitoring of distributed critical components, using anservice health against KPIs, real-time actions Application Performance Monitoring solution, 17
  • 18. which enables real time observations ofbusiness transactions and intervention to In Italy, in particular, the FFM products on theimprove adherence to agreed Service market require ad hoc customisation toLevels. comply with current national legislation inFor example, one might consider an e- matters of labour control. Value Team WFMcommerce portal where it may be opportune solution implements all the legislationto identify and monitor the more critical foreseen for shift workers. The optional SaaSbusiness transactions, such as the addition delivery model, further enables theof a product to a basket or the conclusion of implementation of home/remote workinga purchase. During the effective execution of while maintaining control of the infrastructuralthe transactions by users, it is possible to impacts.identify the application components involvedand visualise the relationship between these Payment as a Service ( VTPie)and the effective usage experience of the The VTPie solution provides the full set ofend user. Analysis of the results provides the tools needed for flexible paymentbasis for construction of intervention actions management, delivered as a service.on the infrastructure and in the application. The architecture and technologies selected from the inception are open to the adoptionC) “SAAS” SOLUTIONS of Cloud models.Workforce ManagementValue Team supports all phases of Work VTPie was conceived for core bankingForce (WFM) and Field Force Management application management and supports(FFM) projects with a flexible, modular, elevated volumes of events and operations.scalable, integrated approach: from definition Indeed the architecture is fully scalable inof the strategy, to the model and roadmap, order to handle increased calculationand to solution design, development, capacity, while maintaining the sameimplementation and operation/management. structure. VTPie modules handle “client-The WFM and FFM products on the market bank”, bank-bank” and “interbank network”cover distinct yet limited areas, while the processes.solution developed by Value Team presentsa wider functional coverage than most Adoption of the Cloud model, on the onemarket products. The solution plans and hand, guarantees data security anddistributes the workforce in an optimal segregation in compliance with bankingmanner. In particular, it enables requirements regulations, and on the other hand processforecasting, resource and working hours/shift customisation on the basis of client needs inplanning and management and monitoring of order to maintain a differentiation of thethe correspondence between planned and services offered to their markets.effective use. Nor should it be forgotten that, The offer provides both a user licensealso in the case of SaaS delivery, a project of approach and a service approach. In the firstthis type also implies accurate Change case, it addresses banks, which intend usingManagement activities to manage the their own IT structures and acquire VTPieimpacts from viewpoint of personnel user licenses to fully govern within theirmanagement. environments. The service model enables18
  • 19. Banks adopting an outsourcing strategy toexploit fully turn key services with pricing Securitypolicies based on the effective use of The Identity & Access Management solutioninfrastructures (for example the number of integrates account management and that oftransactions). the Cloud application identities through specific security SaaS. On the one side theseThe heart of the VTPie platform provides the interface with the applications/ services fromelements to build the diverse front-end the service provider coherently managing themodules and manages interactions with the user life cycle and the access managementre-usable components (services, workflow aspects, on the other the SaaS securitymanagement, transaction engine, etc). services can expose the applicationStarting from these principles, the interfaces to integrate with the end user on-architectural orientation is service based premise Identity & Access management(100%) SOA, while development has systems.followed the J2EE standard and is 100%Java.Document ManagementOur solutions are VTDocs and Cruisenet.The first is a document management systemvertically integrated for Italian regulation ofthe so called “dematerialisation” (e-document or e-paper), which supports thedigital signature, IT protocol andinteroperability via certified e-mail.The second is a support system for “The system isadaptation to regulations (for example for structured toISO certification) and to describe enterpriseprocesses and organisations.Both are framework based using Microsoft™ deliver solution under the SaaStechnology, modular, scalable structures fully model: each clientcustomisable on the basis of clientrequirements. They can, naturally, be activates aintegrated with the major document maximum numbermanagement systems and SSO( Single SignOn) systems in the market today. The of users, profiledsystem is designed to supply solutions undera SaaS model: each client activates a for the specificmaximum number of user accounts, profiles needs”as per the specific needs (pay-per-use). Theservice provision mode is multi-tenant, multi-instance. 19
  • 20. CLOUD ON THE MARKETSCLOUD IN THE requires guarantees at service and securityTELCO & MEDIA MARKET levels for “solutions”. The most typical ofWith the premise that without a good these are generally: collaborationnetwork, talking about Cloud Computing has applications, connectivity services, onno sense whatever, in Italy, the adoption of a demand processing resources and CRM.structured ICT governance system is In general, TLC operators aim to proposegenerally the prerogative of large industrial three macro-service types:companies and certain local and central • IT infrastructure and communicationspublic administrations. So any proposal of integration;value in the Cloud Computing arena, must • virtualisation of physical assets;be based on a reliable, redundant, resilient, • de-coupling of applications from physicalhigh performance communications system. infrastructures.With specific reference to the Telco market, Although it is true that the large carriersCloud Computing is a contemporary have, to date, had a marginal role in the setchallenge for adaption of infrastructures and up and sale of generally defined publican opportunity for the diffusion of a new Clouds services (mostly IaaS), some arebusiness model by Telco and Media now making significant investments for thecompanies. development of the advanced services whichThe demand for Cloud Computing services Cloud Computing enables.20
  • 21. FIG 7 “WITH REFERENCE TO THE TELCO MARKET, CLOUD COMPUTING IS A CHALLENGE FOR ADAPTATION OF INFRASTRUCTURES AND AN OPPORTUNITY FOR THE DIFFUSION OF A NEW BUSINESS MODEL ”In this scenario, Value Team is aiming above as an opportunity to improve their servicesall to play the role of enabler thanks to its and reduce operating costs. Cloudcompetency in sector specific processes: Computing is a technology which is reaching• Mission critical applications (e.g. mobile interesting levels of maturity for many operator top up systems, provisioning decidedly heterogeneous sectors, from on- systems, billing, etc.); line collaboration to entertainment.• System operations support applications In the world of Financial Services and (OSS such as Trouble management for Insurance, the need to deliver services to the field, trouble management for employees and partners contrasts with the customer operations); necessity for a capillary infrastructure• Business support applications (BSS such requiring complex maintenance. Making as CRM, Human Digital Assistants, information available to be shared by diverse Federated Identity Management, actors, thus having by necessity to manage Workforce Management). a diversified infrastructure, is often the reason for costs spiralling out of control.CLOUD IN THE Further, the lack of agility of processes, oftenFINANCIAL INSTITUTIONS does not permit taking businessMARKET opportunities as they are presented.Major banking and insurance groups are Cloud Computing, however, not only enableslooking at this combination of technologies cost optimisation and delivers efficiency; it 21
  • 22. also permits better exploitation of new capacity enables analysis of an extraordinary information distribution channels. Thanks to number of transactions and also in Financial Cloud Computing it is possible to provide Provisioning and market analysis, to rapidly access to one or more databases in real time execute simulations without requiring the from any device utilised by a broker/agent. setup and operation of a costly infrastructure. For brokers, real time mobile systems The flexibility, which Cloud-based solutions access is a critical factor for success, can deliver in the business model, is highly especially where a broker is multi- significant. In particular, the facility to have representative. only the services really needed available, is a source of significant savings in a period in A study performed in the United States (by which cost saving is more important than International Data Corporation IDC)) ever. indicates that 25% of US banking institutions use web-based technologies to supply on- Value Team plays the role of enabler in many demand services to their clients/partners, business areas in this sector where this while a solid 20% of financial institutions technology can be employed effectively. foresee passing to Cloud Computing over Among the most important we can cite: the next 3 years. • Enterprise content management • Document archiving and search solutions, Cloud Computing is used in the anti-money e-mail archiving and security; laundering filed, where distributed calculation • Back-office activities;FIG 8“25% OF US BANKS USE WEB-BASEDTECHNOLOGIES TO DELIVER ON-DEMAND SERVICES TO THEIRCLIENTS/” 22
  • 23. • Credit card processing of the private cloud to become hybrid with• Management and consolidation of diverse use of state of the art solutions already payment process types; existing for other primary industrial realities.• Enterprise risk management – dedicated Tele-metering, tele-management and tele- IT framework for financial services reading are other areas where governed• Enterprise portals; Cloud offers interesting real time synergies• Extreme Transaction Processing with CRM platforms. Think of a future where Platforms; intelligent meters can communicate, and• Enterprise CRM; power distribution is effected in peer to peer• Consumer credit reporting; mode as the Internet of Things paradigm is• Client support systems; realised.• Retail banking and stock trading;• Sales support (Sales force automation). Finally, harmonising the operation/management of multiple dataCLOUD FOR THE ENERGY centres, now migrated to a Cloud ComputingMARKET AND PUBBLIC model, is hitting that target of mobility, agility,ADMINISTRATION economy and scalability which have beenOperators in the Energy field have to deal the centre of presentations by industrywith a “mixed bag” of an application analysts for years.portfolios, because there are so manyspecific operation areas to cover, from For Energy operators, creating their owncommunications with customers to energy Cloud means taking the opportunity toresource management. In this context, the maximise investments, free processingrole of ICT is increasingly strategic in resources and, at the same time, prepare fordelivering competitiveness and differentiation the challenges of the future.that offers the business rapid responses tofast changing needs, preferably leveraging For public administration (Defence, Welfare,the infrastructural assets available. central, regional and local government, etc.) the need to use Cloud applications becomesThere already many applications, which fundamental where services shared byhave switched from dedicated to virtual several administrations (private Clouds) toinfrastructure for diverse motives, or they offer added value services to citizens in thehave been subjected to consolidation areas of revenue management, health,processes due to overlap of the services welfare also from a regional view.supported. Here a Cloud governancesolution finds immediate application in the The boundaries among the diverse sectorssystems supporting simulation activities oil are becoming less distinct and we often hearexploration and production models, at the of “open government” where informationfront-end towards the retail clients, on the (e.g. civil state data) is owned byCRM, through field force management Government, while the services built on topsystems. of these data may be offered by third parties, though regulated and guided by the publicFor example, in field force management, the administration (e.g. city councils, regionalValue Team offer can also escape the limits government, etc.). 23
  • 24. FIG. 9 “CLOUD COMPUTING, IT AS A SERVICE, GREEN IT ARE BUT A FEW OF THE TRENDS EMERGING”Indeed, today in the world of public “.. there is a need to integrateadministration, there is a need to integrateservices to the public with financial or services to theadministrative services. And nowhere is it public withmore the mandate to ‘do more with less’. financial or administrative services. And nowhere is it more the mandate to ‘do more with less’”24
  • 25. HOW TO NAVIGATE IN THE CLOUDSTHE APPROACH PROPOSED.To navigate in the vast world of Cloud Computing it is necessary to count on a consolidatedapproach to methodology and use tools and applications suited to governance management of‘services’’.Value Team’s Cloud offering can be summarised as follows: DESIGN GOVERNANCE SaaS SERVICES INSTRUMENTS CONSULTANCY SERVICES & CONSULTANCY & OFF THE SHELF APPROACH & SET UP IMPLEMENTATION SERVICES PROPRIETARY PRODUCTS METHODOLGY LINKED TO THE FOR THE ENTERPRISE INFRASTRUCTURES AND MARKET WITH OUSOURCING SERVICES Key factors Key factors Key factors • Scouting and auditing of • Audit of the governance • Internally developed the services, processes, and “factory” infrastructure products which better meet policies and the • Re-engineering of customer needs supporting KPIS and applications for Cloud • Technological competency SLAs; (physical to virtual) and of and installation at large • Service simulation design, the development, testing clients validation to support the and deployment economic models environments for elastic delivery Activities Activities Activities 1. Definition of custom check 1. Intelligent workload 1. Work Force e Field Force lists balancing Management 2. Structuring to business 2. Application performance 2. VTPie: Payment as a priorities monitoringe Service 3. SLA Definition 3. Document Management 4. Modularity and risk 4. Identity & Access mitigation Management 25
  • 26. The method of approach for Cloud Computing applied by Value Team is advantageous because:• it is action-based: it enables the set up of a series of preventive actions and risk mitigation;• it is distributed and close to the potential points of failure of the systems and processes;• it is independent and high level, integrating with the decision systems available on the market;• it optimises just-in-time resource provisioning to respect the service levels required by business;• it enables a pay-for-use licensing model.The challenge to private or public organisations is that of governing the risks while fully exploitingthe opportunities, which this new model proposes, that is succeeding in managing the Cloud,which delivers business oriented added value services.In this context, the key role is that of defining the operational model of Cloud utilisation within thecompany, enabling services with defined, dynamic Service Levels and aggregating in housefunctionalities and those sourced from other Clouds (private, public and hybrid).With our experience all along the value chain (consultancy, projects and services), Value Team isan international partner for both enterprise and government organisations, as well as forinfrastructure providers, who knows how to navigate You in the Cloud.Value Team is an IT consultancy and services company developing innovative solutions forbusiness, whose offer covers the entire value chain.Counting on more than 3000 professionals world wide, with a significant presence in Italy, Europeand Latin America, Value Team works for major multinationals and leaders in their respectivesectors and geographic areas, and has always collaborated with the principal universities andcentres of research and innovation.. “Value Team is an international partner for both enterprise, government organisations and for infrastructure providers, who knows how to navigarte You to the Cloud” 26
  • 27. Value Team is an IT consultancy andservice company developing innovativesolutions for business, whose offercovers the entire value chain.Counting on some 3000 professionalsworld wide, with a significant presencein Italy, Europe and Latin America,Value Team works for majormultinationals and leaders in theirrespective sectors and geographicareas, and has always collaboratedwith the principal universities andcentres of research and innovation.