Business Perspectives on Cloud Computing

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Digital Trends 2011, Athens, Greece.
Green ICT and Cloud Computing

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Business Perspectives on Cloud Computing

  1. 1. Business Perspectives on Cloud Computing John Rhoton Digital Trends 2011, Athens Green ICT and Cloud Computing30/11/2011 John Rhoton – Digital Trends 2011 1
  2. 2. Agenda • Assessment – Financial, Risk, Strategic • Adoption • Challenges • Guidance30/11/2011 John Rhoton – Digital Trends 2011 2
  3. 3. Business Perspective on DefinitionCloud Computing is a set of technologies thathelp to achieve three business objectives: • Cost reduction – Virtualization, Multi-tenancy, Automation, ... • Business flexibility – On-demand, Utility-pricing, Elasticity, ... • Focus on core competency – Internet delivery, Off-premise execution, Outsourced operation, ...30/11/2011 John Rhoton – Digital Trends 2011 3
  4. 4. Two views of technology evolution No pivotal innovation vs. Very disruptive impact Network effects Competitive THEN Economy Price • Application Service Provider of Scale • Web Hosting Service • Managed Hosting Service NOW Accelerated • Software-as-a-Service Improved development • Platform-as-a-Service functionality • Infrastructure-as-a-Service Multi-tenancy. Virtualization. Utility billing. These aren’t new – Increased Adoption just a gradual evolution. The right conditions can create market disruption for evolutionary improvements.30/11/2011 John Rhoton – Digital Trends 2011 4
  5. 5. Financial Assessment• Software• Hardware• Facilities• Operations30/11/2011 John Rhoton – Digital Trends 2011 5
  6. 6. Risk Assessment • Data leakage • Rogue clouds • Data loss – Employee dissatisfaction • Service loss – Unmanaged applications – Insecure data • Compliance • Lock-in • Competitive disadvantage • Internal risks Many organizations greatly underestimate the capability and motivation of the cloud providers to address these risks. They also overestimate their own ability to eliminate these risks from internal implementations.30/11/2011 John Rhoton – Digital Trends 2011 6
  7. 7. Strategic Assessment • IT Support – Intellectual Property – Knowledge Management – Service Delivery • Agile Enterprise – Core competency – Modular services – Ecosystem30/11/2011 John Rhoton – Digital Trends 2011 7
  8. 8. Private to hybrid evolution • Resource Efficiencies • Operational Efficiencies • Sourcing Efficiencies30/11/2011 John Rhoton – Digital Trends 2011 8
  9. 9. Candidate applications Low risk, high return • Test and Development • Externalised applications – Isolate threats, malware • Redundancy – Geographical – Organizational – Technological30/11/2011 John Rhoton – Digital Trends 2011 9
  10. 10. Design challenges • Integration • User management • Reliability • Governance / SLAs • Security The most common cause of failure is underestimating these challenges30/11/2011 John Rhoton – Digital Trends 2011 10
  11. 11. Concerns and risk mitigation Risk Mitigation Data leakage Encryption Data loss Multi-source, backup Vendor Standards, multi-source, lock-in backup, exit strategy Service loss SLA, audit, certifications Compliance SLA, audit, certifications30/11/2011 John Rhoton – Digital Trends 2011 11
  12. 12. New trust basis Employees Contractors • Personal observation Physical • Personal experience Segmentation Access controls • Human Insight Partners Suppliers Auditors • Public verification Virtual Public Scrutiny Segmentation • Contracts Encryption • Compensation Experts Access controls Legal Counsel30/11/2011 John Rhoton – Digital Trends 2011 12
  13. 13. Words of Advice • Start early • Engage everyone – Users, HR, Legal, Procurement,… • Be skeptical of the skeptics • Find Quick wins – Cheap, low-risk • Prepare for the long term30/11/2011 John Rhoton – Digital Trends 2011 13
  14. 14. Summary • Assess cloud computing from financial, risk and strategic perspectives • Be prepared for disruption – Requires new trust strategy • Don’t underestimate the challenges • Accept the inevitable30/11/2011 John Rhoton – Digital Trends 2011 14
  15. 15. Thank you! John Rhoton john_rhoton@symantec.com, john.rhoton@gmail.com xing.com/profile/John_Rhoton linkedin.com/in/rhoton amazon.com/John-Rhoton/e/B001K8TFW0 slideshare.net/rhoton30/11/2011 John Rhoton – Digital Trends 2011 15

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