EMEA10: Trepidation in Moving to the Cloud


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Today’s buzz centres on cloud computing. What is it exactly? Will it dent your revenues or does it have potential to add capabilities to your business? How do you deliver value when you don’t “install” anything? Learn how to use this new approach to delivering IT services in your business, what to consider and where it makes sense – and where it doesn’t! Dave Sobel, CEO of Evolve Technologies, talks to you about how to develop cloud offerings and how you position your business for growth around online services. Strategies come from real life experience, industry data, and collaboration with other solution providers to give you the best way to take on the big, bad cloud.

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EMEA10: Trepidation in Moving to the Cloud

  1. 1. Trepidation in Moving to the Cloud Dave Sobel CEO, Evolve Technologies
  2. 2. www.comptia.org/emea2010 From http://geekandpoke.typepad.com 1
  3. 3. www.comptia.org/emea2010 Trepidation in Moving to the Cloud Dave Sobel CEO, Evolve Technologies
  4. 4. About Dave • CEO, Evolve Technologies – Washington DC IT Solution Provider – Microsoft Certified Partner – Small Business Specialist • HTG Member and Facilitator • Author, “Virtualization: Defined. A Primer for the SMB Consultant” • Biz Blog: www.evolvetech.com/blog • Virtualization Blog: www.smbvirtualization.net • Microsoft MVP, Virtualization • Columnist, Channel Insider • Columnist, CRN
  6. 6. 5 IT infrastructure is reaching a breaking point. 85% idle In distributed computing environments, up to 85% of computing capacity sits idle. Consumer product and retail industries lose about $40 billion annually, or 3.5 percent of their sales, due to supply chain inefficiencies. 33% of consumers notified of a security breach will terminate their relationship with the company they perceive as responsible. 33%$40 billion Explosion of information driving 54% growth in storage shipments every year. 1.5x 70¢ per $1 70% on average is spent on maintaining current IT infrastructures versus adding new capabilities.
  7. 7. There are major forces of change at work, affecting business and IT Our world is smaller and flatter but it’s about to become more… INSTRUMENTED INTERCONNECTED INTELLIGENT Increasing access, globalization and risk Increasing devices and opportunity for innovation Increasing data and the use of technology to capitalise on change CEOs see an environment of unrelenting change, as well as opportunities to think smarter - - economically, socially and technically.
  8. 8. 7 Cloud spending to grow six times faster than traditional IT spending USD 16.2 billion (2008) 57% 11% 18% 5% 9% Storage Server App Dev & Deployment Infrastructure Bussiness Application USD 42.3 billion (2012) 52% 9% 18% 13% 8% Storage Server App Dev & Deployment Infrastructure Bussiness Application • IDC forecasts the cloud computing services market to grow at a CAGR of 27 percent from USD 16.2 billion in 2008 to USD 42 billion in 2012. On the other hand, Gartner expects the worldwide cloud services revenue to cross USD 56.3 billion in 2009 to USD 150 billion by 2013. • IDC estimates the traditional IT spending to grow at a CAGR of 7 percent to USD 494 billion in 2012 from USD 383 billion in 2008. Thus, the forecasted growth rate of cloud spending is six times that of traditional IT spending. Size and Growth
  9. 9. By 2011, the world will be 10 times more instrumented then it was in 2006. Internet connected devices will leap from 500M to 1 Trillion. 2005 2006 2007 2008 2009 2010 2011 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 Exabytes RFID, Digital TV, MP3 players, Digital cameras, Camera phones, VoIP, Medical imaging, Laptops, smart meters, multi-player games, Satellite images, GPS, ATMs, Scanners, Sensors, Digital radio, DLP theaters, Telematics, Peer-to-peer, Email, Instant messaging, Videoconferencing, CAD/CAM, Toys, Industrial machines, Security systems, Appliances 10x growth in five years
  10. 10. Continuum of services overview Time Responsibilities/Risks TransferedtoServiceProvider “Do it yourself” Bodyshopping Out-tasking Managed Services Outsourcing
  11. 11. Source: www.google.com/trends
  12. 12. Customers’ expectations today and in perspective ?
  13. 13. Evolution Over The YearsAdoption Time 1961 John McCarthy proposed 'computer time-sharing technology' to be sold through utility business model (like electricity) in a lecture at MIT Mid 90’s ASP (Application Service Provider) model with single tenant hosting of applications Early 00’s SaaS (Software as a Service) model with multi-tenant hosting of applications Late 00’s Cloud Computing with pay as you go model, leveraging virtualization for data center efficiencies and faster networks
  14. 14. 13 Security and Cloud Computing Customization, efficiency, availability, resiliency, security and privacy … Standardization, capital preservation, flexibility and time to deploy … Public … • Access open to everybody, subject to subscription • Shared resources • Multiple tenants • Delivers select set of standardized business process, application and/or infrastructure services on a flexible price per use basis • Always managed and hosted by 3rd party Private … • Access limited to enterprise and its partner network • Dedicated resources • Single tenant • Drives efficiency, standardization and best practices while retaining greater customization and control • Might be managed or hosted by third party Cloud Computing Model Cloud Services Cloud Computing Delivery Models Hybrid … • Private infrastructure, integrated with public cloud Community … • Several organizations with similar needs and policies share a private cloud
  15. 15. Public vs Private Cloud Cloud Choices Exclusive environment Limited on-demand capabilities Private Cloud On-demand resources, scalability Shared environment Public Cloud Requires Initial Capital Investment Cloud setup within Org’s data center Control on security and audit Based on basic virtualization Limited on-demand scaling On-Premise Private Cloud Exclusive, but hosted by a third party Limited on-demand scaling Expensive than public cloud Cheaper than on-premise private cloud Possibility of co-location Externally Hosted Private Cloud Hybrid Cloud Public + Private cloud Source: TorryHarris Business Solutions on slideshare.net
  16. 16. USE CASES
  17. 17. USE CASES
  18. 18. 17 Security and Cloud Computing Compliance Complying with PCI DSS and other regulations may prohibit the use of clouds for some applications. Reliability High availability will be a key concern. IT departments will worry about a loss of service should outages occur. Control Many companies and governments are uncomfortable with the idea of their information located on systems they do not control. Security Management Even the simplest of tasks may be behind layers of abstraction or performed by someone else. Data Migrating workloads to a shared network and compute infrastructure increases the potential for unauthorized exposure. Categories of Cloud Computing Risks Providers must offer a high degree of security transparency to help put customers at ease. Authentication and access technologies become increasingly important. Mission critical applications may not run in the cloud without strong availability guarantees. Comprehensive auditing capabilities are essential. Providers must supply easy controls to manage security settings for application and runtime environments.
  19. 19. 18 Security and Cloud Computing Of enterprises consider security the #1 inhibitor to cloud adoptions 80% Of enterprises are concerned about the reliability of clouds 48% Of respondents are concerned with cloud interfering with their ability to comply with regulations 33% Source: Driving Profitable Growth Through Cloud Computing, IBM Study (conducted by Oliver Wyman) “I prefer internal cloud to IaaS. When the service is kept internally, I am more comfortable with the security that it offers.” “Security is the biggest concern. I don’t worry much about the other “-ities” – reliability, availability, etc.” “How can we be assured that our data will not be leaked and that the vendors have the technology and the governance to control its employees from stealing data?” Security Remains the Top Concern for Cloud Adoption
  20. 20. 19 Security and Cloud Computing Specific Customer Concerns Related to Security Protection of intellectual property and data Ability to enforce regulatory or contractual obligations Unauthorized use of data Confidentiality of data Availability of data Integrity of data Ability to test or audit a provider’s environment Other 30% 21% 15% 12% 9% 8% 6% 3% Source: Deloitte Enterprise@Risk: Privacy and Data Protection Survey
  21. 21. USE CASES – and where the £’s are
  22. 22. USE CASES – and where the £’s are
  23. 23. dave@evolvetech.com +44 (0)20 8002 9740 x111 www.smbvirtualization.net