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Itarc+thailand+2011+ +how+is+cloud+transforming+business+and+it Presentation Transcript

  • 1. IT Architect Regional Conference "Business Agility with Enterprise Architecture “ 24th August 2011, Pullman Hotel Bangkok, Thailand ITARC Thailand 2011 Session Topic: How Cloud is transforming Business & IT? Presented By: Mr. Hasan Ganny Hanif President of IASA Malaysia CTO, Dagang Net Technologies Sdn BhdThe use, disclosure, reproduction, modification, transfer or transmittal of this work without the written permission of IASA is strictly prohibited. @ IASA 2011 The use, disclosure, reproduction, modification, transfer, or transmittal of this work without the written permission of IASA is strictly prohibited. © IASA 2011
  • 2. Typical Business Scenario Youre in a meeting. You and your team identify a great new business opportunity. If you can launch in 60 days, a rich new market segment will be open for your product or service. The action plan is developed. Everythings a go! 2 The use, disclosure, reproduction, modification, transfer, or transmittal of this work without the written permission of IASA is strictly prohibited. © IASA 2011
  • 3. The reality • And then you come down to earth. You need new computer equipment, which takes weeks, or months, to install. You also need new software, which adds more weeks or months. • Theres no way to meet the timeframe required by the market opening. You are stymied by your organizations lack of IT agility. 3 The use, disclosure, reproduction, modification, transfer, or transmittal of this work without the written permission of IASA is strictly prohibited. © IASA 2011
  • 4. Or • You could have the experience a company had when it needed to convert a large number of digital files to a format suitable to serve up over the web. After the inevitable "it will take a lot of time and money to do this project," one of their engineers went to the cloud Web Service provider, created 20 compute instances (essentially, virtual servers), uploaded the files, and converted them all over the course of one weekend. • Total cost? $$$ 4 The use, disclosure, reproduction, modification, transfer, or transmittal of this work without the written permission of IASA is strictly prohibited. © IASA 2011
  • 5. Cloud transforming IT • This example provides a sense of why cloud computing is transforming the face of IT, with the potential to deliver real business value. • The rapid availability of computational resources in a cloud computing environment enables business agility — the dexterity for businesses to quickly respond to changing business conditions with IT- enabled offerings. 5 The use, disclosure, reproduction, modification, transfer, or transmittal of this work without the written permission of IASA is strictly prohibited. © IASA 2011
  • 6. Set Your Organizations IT Free - How Cloud isTransforming Business Business vs IT (Love Hate relationship) BUSINESS IT Loves Cloud Hates Cloud? Outsource Keep IT Job? Speed to market, Innovation ??? Less cost of ownership 6 The use, disclosure, reproduction, modification, transfer, or transmittal of this work without the written permission of IASA is strictly prohibited. © IASA 2011
  • 7. The “New” RealityBalance & shift Get more out of Capture & create cost your people out of new opportunity The use, disclosure, reproduction, modification, transfer, or transmittal of this work without the written permission of IASA is strictly prohibited. © IASA 2011
  • 8. Business’ Cloud vision 8 The use, disclosure, reproduction, modification, transfer, or transmittal of this work without the written permission of IASA is strictly prohibited. © IASA 2011
  • 9. IT’s Cloud vision? 9 The use, disclosure, reproduction, modification, transfer, or transmittal of this work without the written permission of IASA is strictly prohibited. © IASA 2011
  • 10. How Business looks at Cloud Organization Operations Infrastructure Improve Improve Reduce Productivity & Efficiency Cost Innovation The use, disclosure, reproduction, modification, transfer, or transmittal of this work without the written permission of IASA is strictly prohibited. © IASA 2011
  • 11. Leverage the Cloud to Deliver Business Impact Focus Business Success People High User Adoption Simplified Programming Model Automate Compose with Clicks Process Fast Delivery Instant Start and Scale Reusable Components Leverage Cloud Ecosystem the Cloud Continuous upgrades Disaster recovery On latest release The use, disclosure, reproduction, modification, transfer, or transmittal of this work without the written permission of IASA is strictly prohibited. © IASA 2011
  • 12. 8 ways that cloud computing will change business 1. The creation of a new generation of products and services. 2. A new lightweight form of real-time partnerships and outsourcing with IT suppliers 3. A new awareness and leverage of the greater Internet and Web 2.0 in particular 4. A reconciliation of traditional SOA with the cloud and other emerging IT models. 12 The use, disclosure, reproduction, modification, transfer, or transmittal of this work without the written permission of IASA is strictly prohibited. © IASA 2011
  • 13. 8 ways that cloud computing will change business 5. The rise of new industry leaders and IT vendors 6. More self-service IT from the business-side. 7. More tolerance for innovation and experimentation from businesses. 8. The slow-moving, dinosaur firms will have trouble keeping up more nimble adopters and fast-followers. 13 The use, disclosure, reproduction, modification, transfer, or transmittal of this work without the written permission of IASA is strictly prohibited. © IASA 2011
  • 14. 3 – Cloud Business: Your 4 – Cloud Computing IS Office Can Operate from Disaster Management Anywhere in the World2 – Cloud ComputingSecurity 5 – How Your Business Can Save Money – Free software, no licenses, stress free 1 – “Internet-based Computing” 6 - Cloud Computing 7 - Cloud Computing Risks for Small Businesses and Benefits 14 The use, disclosure, reproduction, modification, transfer, or transmittal of this work without the written permission of IASA is strictly prohibited. © IASA 2011
  • 15. How IT looks at Cloud 15 The use, disclosure, reproduction, modification, transfer, or transmittal of this work without the written permission of IASA is strictly prohibited. © IASA 2011
  • 16. Security & Data Confidentiality Concerns • Of those who outsource, nearly three-quarters (72.1%) cited concerns about IT security, and more than half (58.7%) indicated that concerns about regulatory compliance will limit their adoption of these emerging service offerings 16 The use, disclosure, reproduction, modification, transfer, or transmittal of this work without the written permission of IASA is strictly prohibited. © IASA 2011
  • 17. 17The use, disclosure, reproduction, modification, transfer, or transmittal of this work without the written permission of IASA is strictly prohibited. © IASA 2011
  • 18. Cloud Computing* From http://en.wikipedia.org/wiki/Hype_cycle 18 The use, disclosure, reproduction, modification, transfer, or transmittal of this work without the written permission of IASA is strictly prohibited. © IASA 2011
  • 19. 19The use, disclosure, reproduction, modification, transfer, or transmittal of this work without the written permission of IASA is strictly prohibited. © IASA 2011
  • 20. “Cloud computing is simply a buzzword used to repackage grid computing and utility computing, both of which have existed for decades.” whatis.com Definition of Cloud Computing 20 The use, disclosure, reproduction, modification, transfer, or transmittal of this work without the written permission of IASA is strictly prohibited. © IASA 2011
  • 21. From http://geekandpoke.typepad.com 21The use, disclosure, reproduction, modification, transfer, or transmittal of this work without the written permission of IASA is strictly prohibited. © IASA 2011
  • 22. Cloud Computing – Primary Characteristics • on-demand self service, which allows business units to get the computing resources they need without having to go through IT for equipment. • ubiquitous network access, which enables applications to be built in ways that align with how businesses operate today - mobile, multi-device, etc. • resource pooling, which allows for pooling of computing resources to serve multiple consumers • rapid elasticity, which allows for quick scalability or downsizing of resources depending on demand. • measured service, which means that business units only pay for the computational resources they use. Translation: IT costs match business success 22 The use, disclosure, reproduction, modification, transfer, or transmittal of this work without the written permission of IASA is strictly prohibited. © IASA 2011
  • 23. IT is under siege • The cloud, in all its incarnations, is reshaping the way IT thinks about delivering services to the business. • Conversely, the cloud is also providing new avenues for the business to procure IT services. • For the first time, business users who consume IT services have a choice: if IT cannot provide them with the services they require in a timely and cost- effective manner, theyll simply go elsewhere. 23 The use, disclosure, reproduction, modification, transfer, or transmittal of this work without the written permission of IASA is strictly prohibited. © IASA 2011
  • 24. IT Pros – Are your ready for the Challenge?• While cloud computing is emerging as a promising IT service delivery vehicle, to cloud or not to cloud? That is not the question.• For IT professionals, it is crucial to recognize the opportunities and play a key role in the transformation from existing infrastructure-focused IT into a service-oriented, user-centric, and IT as a service environment.• Are you ready for the challenge to lead and transform your IT organization? 24 The use, disclosure, reproduction, modification, transfer, or transmittal of this work without the written permission of IASA is strictly prohibited. © IASA 2011
  • 25. Transformational strategies for IT• How CIOs are applying transformational strategies in their organizations to keep up with the change.• Three "new rules" gleaned from their experience in aligning IT with business priorities: 1. CIOs Need to Manage IT Like a Supply Chain 2. Cost Accounting is the New Must Have IT Skill 3. IT Transformation Starts with Culture 25 The use, disclosure, reproduction, modification, transfer, or transmittal of this work without the written permission of IASA is strictly prohibited. © IASA 2011
  • 26. Rule #1: CIOs Need to Manage IT Like a Supply Chain Less More Beginning to think about IT less as a More as a portfolio of IT services that collection of technology products should be managed like a traditional supply chain. However, getting a handle on what these services actually cost to deliver – and how theyre being utilized has until now been more dark art than science Its critical to understand the fully burdened costs of all the raw materials (i.e., the cost of goods sold or "COGS") that comprise the finished product. 26 The use, disclosure, reproduction, modification, transfer, or transmittal of this work without the written permission of IASA is strictly prohibited. © IASA 2011
  • 27. Rule #2: Cost Accounting is the New Must Have ITSkill Overlooked Essential An overlooked and essential skill for Without this foundational skill, they the new generation of IT personnel is believe (and rightfully so) that IT basic cost accounting. managers are unable to provide meaningful cost analysis back to the business. Example : while calculating unit cost information at the server level might be valuable from an operational perspective, understanding and communicating the variance in cost is more relevant to the business since this type of data point speaks to the budget planning cycle. 27 The use, disclosure, reproduction, modification, transfer, or transmittal of this work without the written permission of IASA is strictly prohibited. © IASA 2011
  • 28. Rule #3: IT Transformation Starts with Culture Cultural Sensitivity IT transformation projects on their Make a concerted effort to agenda must recognize that cultural implement strategies that address the changes are just as important as cultural aspect of services technology decisions transformation Example : ensure cross-functional support through sharing leadership strategies and best practices as an instrumental in terms of getting everyone to buy into the notion of transformation. 28 The use, disclosure, reproduction, modification, transfer, or transmittal of this work without the written permission of IASA is strictly prohibited. © IASA 2011
  • 29. Bottom Line• Business is demanding greater accountability and alignment from IT.• The cloud is but one external factor driving CIOs to "self reflect" by understanding their own cost structures at a deeper level and delivering services at• CIOs who are prepared to answer questions from the business with cold, hard facts will be in a significantly better position to transform their IT organization and contribute to the bottom line market rates. 29 The use, disclosure, reproduction, modification, transfer, or transmittal of this work without the written permission of IASA is strictly prohibited. © IASA 2011
  • 30. The next chapter for cloud computing 30 The use, disclosure, reproduction, modification, transfer, or transmittal of this work without the written permission of IASA is strictly prohibited. © IASA 2011
  • 31. Has Cloud Computing changed the Traditional Roleof IT? • “Cloud Computing has simplified IT operations to an extent that many of the roles in IT have fundamentally been obviated.” • “Definitely, the IT department should act as the service broker, the entity that provides services to the business and sources those services from a variety of sources.” • “Certainly, Software-as-a-Service (SaaS) will change role of IT in most organizations but I think that SaaS will have a different effect on IT in different size organizations. SaaS is a great equalizer.” 31 The use, disclosure, reproduction, modification, transfer, or transmittal of this work without the written permission of IASA is strictly prohibited. © IASA 2011
  • 32. Has Cloud Computing Changed the Traditional Roleof IT? • “Of course cloud computing has changed (and will continue to change) the role of IT, but not necessarily more so than previous disruptive shifts in IT have done in the past. There are two major factors at play - the technology aspect and the organizational aspect.” • “IT folks are spending less time and effort building and supporting commodity technology services, and are now applying their energy and system-driven thinking directly to the design and management of innovative cloud-based systems that enable business processes that were not even possible five years ago. “ 32 The use, disclosure, reproduction, modification, transfer, or transmittal of this work without the written permission of IASA is strictly prohibited. © IASA 2011
  • 33. Has Cloud Computing Changed the Traditional Roleof IT? • “Ive been working in a large company that has outsourced network, infrastructure, applications, infrastructure, helpdesk and their management all together. Whats left: business planning.” • “You can now kick off a new business leveraging Cloud based Apps with very little IT knowledge (and almost zero CAPEX). As you grow and need more integration and eventually some custom development, you will need first an IT Architect rather than a Sys Admin which can map business workflows with App integration. 33 The use, disclosure, reproduction, modification, transfer, or transmittal of this work without the written permission of IASA is strictly prohibited. © IASA 2011
  • 34. Has Cloud Computing Changed the Traditional Roleof IT? • “I think the most profound effect will be on smaller companies, and that instead of the lone IT tech working in a windowless office stuffed with computer parts, that the more successful SMBs will incorporate IT into every level of the business. Which means, those looking for a future in IT might want to step away from the computer and brush up on their people skills.” • “ITs role is shifting from technical expert to strategic adviser.” 34 The use, disclosure, reproduction, modification, transfer, or transmittal of this work without the written permission of IASA is strictly prohibited. © IASA 2011
  • 35. Conclusions Cloud computing is transformational – Change business models, cost models, speed to provision, and datacenters • Cloud helps IT organizations focus on what’s important – Efficient IT service delivery, reduce costs and complexity, outsource non-essential IT service • Cloud computing has many issues – Lack of clarity and hype slows adoption, and increases skepticism – Trust, security, and unclear ROI are chief issues • Cloud computing is coming, make no mistake – Part of the IT externalization movement – Now is the time to prepare, comprehension is key to unlocking business value • ITs role is shifting from technical expert to strategic adviser. 35 The use, disclosure, reproduction, modification, transfer, or transmittal of this work without the written permission of IASA is strictly prohibited. © IASA 2011
  • 36. Be part of the Future Be anArchitect Innovate Value Add 36 The use, disclosure, reproduction, modification, transfer, or transmittal of this work without the written permission of IASA is strictly prohibited. © IASA 2011
  • 37. Thank You 37The use, disclosure, reproduction, modification, transfer, or transmittal of this work without the written permission of IASA is strictly prohibited. © IASA 2011