Social Media, Cloud Computing and architecture

It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is the most adaptable to change.

SaaS vs. IaaS vs. PaaS
Software as a Service (SaaS) : Complete application systems delivered over the Internet on some form of "on-demand" billing system: Salesforce.com, Google Apps…
Platform as a Service (PaaS) : Development platforms and middleware systems hosted by the vendor, allowing developers to simply code and deploy without directly interacting with underlying infrastructure: Google AppEngine, Microsoft Azure, Force.com…
Infrastructure as a Service (IaaS) : Raw infrastructure, such as servers and storage, is provided from the vendor premises directly as an on-demand service: Amazon Web Services, GoGrid…

Imagine Monday: 25 000 users Tuesday: 50 000 users Thursday: 250 000 users

Imagine Monday: 50-100 servers Tuesday: 400 servers Wednesday: 900 servers Friday: 3400 servers

Cloud Power Animoto and Amazon EC2 Number of EC2 Instances 4/12/2008 Launch of Facebook modification. Amazon EC2 easily scaled up and down to handle additional traffic Peak of 5000 instances 4/14/2008 4/15/2008 4/16/2008 4/18/2008 4/19/2008 4/20/2008 4/17/2008 4/13/2008 Steady state of ~40 instances

4 TB Data 100 Nodes 11 Million PDFs 100 instances x 24 hours x $0.10 / Hr = $240

The Internet and its attendant array of consumer devices, networks and content sources have fundamentally changed how customers, employees and partners expect to interact with the enterprise (Gartner CIO survey 2008/2009).

The switch Publishing is complex and limited to few traditional media and online merchants Value is created by aggregating content (portals) Easy and free publication for all Value is generated by tools allowing to publish easily Mainly narrow band Mainly Broadband 2004 2005 Traditional media Alternative media Google search Flickr Wikipedia netvibes Web 1.0 Web 2.0 Broadband is (becoming) a right in Spain and Finland

Technology and social factors have converged over the past few years to create a phenomenon called social computing
TECHNOLOGY
Cheap hardware and software reach the masses.
Simple devices that anyone can operate.
SOCIAL CHANGE
Consumers look for cost and time efficient technologies, ways to make their voices heard.
Younger techno savvy generations pioneer the use of personal networks and viral communication.
Source: Forrester (2006) – Social Computing.

Internet statistics
100 billion clicks per day
55 trillion links
It uses 5% of the global electricity
2 million emails per second
1 million IM messages per second
8 terabytes per seconde traffic
65 billion phone calls per year

Social Media statistics
20 hours of video uploaded every minute onto YouTube
Facebook 600k new members per day
900.000 blogs posts put up every day
Second Life 250k virtual goods made daily
700 million photos per day on Facebook
Twitter 18 million new users per year
4 million tweets sent daily
1250 text messages per second

This is your new intranet

Identity? Facebook Connect! It’s the social graph that counts!

The Perfect Storm has changed Business Focus
Business has been hit successively with;
The Credit Crunch
Globalisation of Competition
Commoditisation of key Activities
Customisation requirements for Products
Expectations for new levels of online Services
and then there is the Technology impacts around;
The Ubiquitous Connectivity
Social Collaboration and Networks
The arrival of ‘The Cloud’
etc …..
So how do we Harness the forces of Change?

NEW ORGANISATIONAL PARADIGMS HOW BUSINESS TECHNOLOGY IS CHANGING COMPANIES SOCIAL(ISM)? COMMUNAL ASPECTS OF DIGITAL CULTURE TECHNOLOGY FUELED CHANGE THE FUTURE OF PRODUCT AND SERVICE MARKETING & SALES

So its not just Traditional IT; there are new technologies too People Internal External Applications Computers Web Services

Areas where traditional EA models often struggle
Don’t respond to change quickly enough
Aren’t aligned with current business reality
Lack of focus on driving consumption (or network effects)
Too centralized and isolated
Expensive and resource-intensive
Overengineered in the wrong places
Excessively constraining.

The architecture “stack” is bigger now

Capgemini’s Crown model Pressure for Business Change Pressure for IT Stability Comply The Enterprise Transactions and Data; ERP and Legacy Applications Organize The use of SOA to achieve cohesive executions Differentiate A Business Manager’s Customizable Solution Personalize An Individual’s use of the capabilities of Web 2.0

A Services Governance Model – with the Business! Business and Technology Architecture Governance Model Personalise An Individual’s capability to choose their ‘experience’ in how they wish to ‘Interact’ and ‘collaborate’ Differentiate A Manager’s capability to build locally unique ‘differentiating’ capabilities both externally and internally Organise (SOA) Common, shared core processes that support each differentiated offer above, and connect to transactional IT applications below Comply (ERP, etc.) Traditional Enterprise Applications with organised procedures and data integrity, keeping compliant business results Loose Coupled Business Technology SOA the coupling layer between both Tight Coupled Information Technology

There is an Interesting Inversion in this … Business and Technology Architecture Governance Model Personalise An Individual’s capability to choose their ‘experience’ in how they wish to ‘Interact’ and ‘collaborate’ Differentiate A Manager’s capability to build locally unique ‘differentiating’ capabilities both externally and internally Organise (SOA) Common, shared core processes that support each differentiated offer above, and connect to transactional IT applications below Comply (ERP, etc.) Traditional Enterprise Applications with organised procedures and data integrity, keeping compliant business results Loose Coupled Business Technology SOA the coupling layer between both Tight Coupled Information Technology Cost or Value? $1 $2 $3 Margin $1 $2 $3 Revenue

What the heck are Mashups? An enterprise mashup is a custom application rapidly assembled by (or in close collaboration with) business users in short timescales to meet immediate business needs. Typically, they combine data, functionality or processes from multiple existing internal or external IT assets to create innovative business value. An enterprise mashup platform is software infrastructure that provides tools to rapidly assemble widgets in a visual environment thereby allowing easy combination of data, functionality and processes, even by business users.

Impacts on the business operating model Infrastructure-as-a-Service (IaaS) Platform-as-a-Service (PaaS) Software-as-a-Service (SaaS) Business Process Outsourcing (BPO) Internal Software + Service & traditional outsourcing E.g. Finance BPO, Payroll Their people, process, application, platform + Infrastructure E.g. Salesforce.com, Google Apps Their application, platform & Infrastructure Yourpeople, process and operation E.g. Force.com, Gigaspaces & Appistry Their platform & Infrastructure Your application, people & process E.g. Amazon Web Services Their infrastructure, operations & support Your application, platform & processes You own everything Infrastructure, platform, app’s & process. Contract parts of activities to partners Commoditisation Degree of control A balance of Control and Standardization

Types of Multitenancy in the Cloud App App App Application Host In Cloud IaaS / PaaS Create Own IP Version of App Multi-Tenant Reseller Model Resell Multiple Versions of IP App App Application Host In Cloud IaaS / PaaS POC – 1 App Latency Speed Response Multi-Tenant Infrastructure Sustain Model Move over Groups of Apps Applications & Infrastructure Maintenance Portfolio Assessment & Migration

Types of Multitenancy in the Cloud App Application Host In Cloud SaaS Multiple Tenants Of the single Application PaaS API Multi-Tenant Software Usage Model Multiple Tenant versions Meta Model conversion App App Application Host In Cloud IaaS / PaaS Multi-Tenant Application instances Model Multiple OS VMIs of App

Transparency : the provisioning boundary shifts in the Cloud to a shared model increasing security needs Device Network IP/MAC Auth ID App OS Image Physical Server URL TCP/IP SaaS PaaS IaaS APaaS Provision level Abstraction Increased Shared Exposure + Increased Physical Boundaries Domain ID

Monitoring becomes more important

What is your SLA
Using 5 services with a guaranteed uptime of 99% will result in a guaranteed uptime at your site of
95%

The Required Future Business Model

The Architecture over a PaaS delivering by SaaS Degree of Ready Built PDFA

DOING BUSINESS IN A NEW WAY
Examples

Lego factory
Lego had traditionally been surrounded by a highly active constellation of Lego User Groups - fan communities comprising of both adult and young members
These groups maintained large online presence; operated independently of the company; exchanged and showed creative toy designs and models amongst themselves
Lego needed to move out of closed proprietary mode and adapt a participative strategy for customer interaction, which would utilize existing user creativity in product design
BACKGROUND
Lego launched the Lego Factory ( http://factory.lego.com ) – an online model of engagement for potential and existing Lego users, which allows users to design, share and buy their own customized LEGO models
SOLUTION
Through the Lego Factory, the company has taken a step further in the evolution of user involvement, building strong brand relationship
The initiative has created high levels of awareness and interest with the consumers
The initiative has put Lego a step ahead of competition by moving out of closed proprietary content mode and involving fresh ideas from consumers and community for New Product Development
BENEFITS THE LEGO FACTORY WEBSITE
Users interested in custom-designing their own Lego models have to download and install the ‘ Lego Digital Designer ’ –
In the designer, the user can drag and drop to create a virtual toy design
Once the user has created a design, he can upload the same to the online gallery
Lego approves all designs before they are added to the online gallery, to filter out models for appropriateness for all age groups
Designer users can then order the bricks needed to make their model, and also customize their own box for the model
Other users on the site can buy uploaded designs in the gallery, and will receive both the bricks for the model as well as the building instructions
Source: MRD Lab Analysis. Capgemini, “ECR Europe Conference: Future Consumer Presentation”, May 2008. coBrandit.com, “Lego Co-creation Presentation by Mark Hansen: Video”, September 2006. Crowdsourcingdirectory.com, “Co-Creation in Lego Factory”, September 2007. European Centre for the Experience Economy, “Lego’s participative army marches on”, April 2008.

P&G connect + Develop
As P&G grew to a $70 billion enterprise, the global innovation model it devised in the 1980s was yielding shrinking success rates
Their R&D productivity had leveled off, and innovation success rate had stagnated at about 35%, whereas innovation costs were climbing faster than top-line
While P&G owned a 7500+ strong R&D team, it realized that viable product innovation was increasingly being done externally at small and midsize entrepreneurial companies
BACKGROUND
More than 35% of P&G’s new products have elements that originated from outside P&G, up from about 15% in 2000
R&D productivity increased by nearly 60%
R&D investment as a percentage of sales is down from 4.8% in 2000 to 3.4% in 2006
P&G’s average two-month cycle of generating physical prototypes and testing them with consumers has reduced to around 24 to 48 hours
BENEFITS
P&G launched the ‘Connect + Develop’ initiative, tapping into a global innovation network comprising of a host of sources, right from independent innovators to virtual innovator networks such as InnoCentive
Having a clear sense of consumers' needs, the company identifies promising ideas throughout this network and applies its own R&D, manufacturing, marketing, and purchasing capabilities to them to enhance the rate of innovation
SOLUTION P&G’s Global Innovation Network P&G CONNECT + DEVELOP P&G identifies top 10 customer needs P&G converts them into ‘science problems and sends into the network P&G’s 7500+ R&D team work on solutions suggested and with internal communities INNOVATIONS In Areas Of Packaging, Design, Marketing Models, Research Methods, Engineering, Technology, Etc Source: MRD Lab Analysis. Harvard Business School, Working Knowledge, “P&G's New Innovation Model”. Leveraging Ideas for Organizational innovation Blog, Dr. Kevin Desouza, “ Connect & Develop Innovations the P&G Way”. P&G, “P&G Connect & Develop – Brochure”.

Nike+, in collaboration with Apple
Nike wanted to create an immediately resonant experience for a broad target market, from marathoners to fitness joggers
Nike+ was born as a multi-channel, multi-sensory marriage of Nike and Apple technologies
Nike+ provides a robust platform of virtual racing, progress tracking, motivational goals and stories, global community comparison tools
BACKGROUND SOLUTION 1 2 3 HEAR YOU RUN… SEE YOU RUN… CONNECT AND CHALLENGE Sensor in the shoe helps the runner hear through the iPod, the details about pace, time, distance and calories burned On docking and synchronizing the iPod, Nike+ software loads the workout statistics to their website where the user will be able to track his/her workout progress Run data can be used to track progress, set goals, motivate runners. win rewards and challenge pals or all Nike+ users Widgets for setting challenges, goals… Blog facility for Nike+ users Link to purchase Nike+ kit and other Nike gear CUSTOMER CENTRICITY THROUGH BETTER INTERACTION USING WEB 2.0
Nike+ is a unique way to engage with and promote higher levels of brand identity amongst Nike users
Delivers increased value to Nike users through a unique way of collaborating
Engages current and prospective Nike users with uninterrupted and targeted advertising
20% reduction in ad budgets as Nike is moving towards developing its own media network through such technological endeavors
Total Sales worth $59 million and 1.8 million users
August 2008; 800,000 people globally simultaneously run a 10km race in 26 cities
Share of the Sports Shoe market: 2006 – 48% 2008 – 61% (12 month average)
BENEFITS I I II II III III Nike.com III Source: MRD Lab Analysis. Nike+ website. ‘Nike does business 3.0’ Phill Butler, 2007.

CLOUD COMPUTING
Example

Undifferentiated Heavy Lifting The 70/30 Switch
of time, energy, and dollars on differentiated value creation
of time, energy, and dollars on undifferentiated heavy lifting
30% 70%

The Capacity Planning Nightmare Infrastructure Cost $ time Large Capital Expenditure Irate calls from senior managment Traditional Hardware Actual Demand Cloud Computing Predicted Demand

Rick Mans [email_address] +31 6 512 10 144 http://twitter.com/rickmans http://www.linkedin.com/in/rickmans

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Social Media, Cloud Computing and architecture

by Rick Mans on Dec 15, 2009

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Social Media, Cloud Computing and architecture Presentation Transcript