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The Cloud: Time for Delivery


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The Question is not "If", but "How, Where & When"

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The Cloud: Time for Delivery

  1. 1. the way we see itThe Cloud: Time forDeliveryThe Question is not “If”, but “How, Where & When”
  2. 2. the way we see itHave we reacheda game-changing moment?The current mood in the industryis one of confusion. Are the new Three big game-changing Capability Clusterstechnologies of cloud, mobility,and big data, as many in IT wouldsay, an evolution of what we dotoday? Or is there a game-changingrevolution in play as many in thebusiness world seem to think? As Mobility Any Connectionthis paper demonstrates, both sides Any Deviceare in fact correct, but only because Any Servicethey have totally different views asto what clouds can deliver to theirrespective areas of responsibility.The challenge for businesses and Cloud Big Data Computer Ressources Real-Time Informationgovernments is that both sides of the Applications and Services And IntelligenceCloud are required for their success On Demand Storage and Searchin meeting changing expectationsexternally and internally. The leaders of the ‘for’ and ‘against’ are thin client vendors and those vendors still heavily dependent on thick clients, meaning PCs, respectively (thin clients depend use the term ‘innovation’ to define a on the majority of the computing generation of new business models to be done by another computer). that allow them to access and sell As enterprise IT, as we currently to their markets in new ways. The understand it and use it, is built solutions that they want to deploy on thick client, client-server are only possible because we have applications then it’s a fair argument new capabilities by using the new that we continue to need PCs, but technologies together with different conversely the business people, development and deployment whilst acknowledging the need for methods that radically change enterprise IT, are looking to escape time and costs. Cloud technology its model to take advantage of new provides the key to delivering‘online’ business solutions. Therefore, this, with mobility and big data solutions using the Internet, the Web, technology playing supporting roles. and services on demand from ‘clouds’ in a ‘mobility’ context of devices with Andy Mulholland wireless connectivity are all based on Global Chief Technology Officer thin clients, and take place in a Web & Corporate Vice President, environment surrounded by ‘big data’. CapgeminiIt’s the term ‘business solutions’ ratherthan ‘technology products’ that givesthe real clue to answer the questionof whether this is a true game-change or not. Business managersThe Cloud: Time for Delivery 3
  3. 3. least embrace that same spirit. All enterprises and public agencies face a series of game-changing shifts as a result of new technology infrastructures, devices and behaviors. Much of this is being driven by people, either as customers, employees, or citizens actively using their personal technology devices in an increasingly ‘digital’ society developing new expectations. Businesses and governments find themselves being ‘driven’ by these expectations rather than in the case of internal IT being able to decide when and in what to invest. Cloud has the potential to help businesses and governments meet their challenges by offering increased agility and lower costs. Of course, this potential will only be realized after enterprises The Question is not “If”, but Many papers have focused on start taking the steps needed to“How, Where & When” explaining and advocating the seize the Cloud opportunity. Talk about cloud computing has technical features of the Cloud. Here become ubiquitous, both inside and we will take a different view – looking The key questions for decision outside organizations. The question at what cloud means for the overall makers should now be: for businesses and governments strategy of the organization. To do ■■ How do we start using the Cloud? is no longer if cloud is a tool for this we will focus on how clouds ■■ Where are the best improvement, but how to take action can be part of business solutions opportunities for doing so? to maximize the advantage of cloud to the challenges that companies ■■ When can we realize to address contemporary challenges. and government departments face, benefits from the Cloud? rather than on the different typesThe marketing hype around cloud of cloud on offer, or the underlying This paper introduces some of thehas left many skeptical, confused and technologies involved. In this paper, tools we can use to answer thesecautious about how to use cloud in we have used easily-recognized questions, so that companies andthe private and public sectors, and examples from the public sector for public agencies can start takingwhat using it might mean in practice. consistency and at the end we provide advantage of the Cloud – individuallyWith such feelings, it is perhaps a brief technology outline of cloud and collectively. But first let us closenot surprising that the response to computing, mobility and big data in this introduction with two questionscloud computing has been slow, and respect of their linked functionality. that reveal the two very differentthe evidence of results is hard to aspects of cloud technology:come by. Early adopters who have Many organizations face challengingsucceeded in creating differentiation times with reduced spending, 1. Do business users buy Applein their industry are not inclined more demanding customers and iPads to use internal enterpriseto share their experiences. Like citizens, and sustained, profound IT better, or to escape thethe meteorological clouds above demographic change. Corporations limitations in order to use newus, the reality of cloud computing and governments are now acutely services and do new things?is hard to pin down: used either to aware that doing the same things 2. Has the IT department changedre-brand a technology offering or to slightly better will not be enough to its methods of operation by usingconceal the lack of any real business control budgets and meet customers’ virtualization to embrace newsolution. However, as more private and citizens’ expectations. New development and testing methods?and public enterprises make use of approaches are needed that willthe Cloud, both the distinctiveness deliver better products and servicesof the offering and the reality of that are ‘twice as good, in halfthe benefits are becoming clearer. the time, for half as much’ – or at4
  4. 4. the way we see it The ‘Inside-Out’ and ‘Outside- Some of the technologies taken In’ Models for the Cloud from the full spectrum of cloud The two questions illustrate one of the computing such as virtualization biggest challenges in understanding are understood and can be used to cloud computing; the reality that it improve operating efficiency and cost has two very different capabilities. of this traditional IT environment. One is focused on the ‘front office’ This leads to the belief that clouds are and doing business with the external an evolution of the existing IT model world which Capgemini calls as it is used in the enterprise today.‘outside-in’ and business managers see as a revolution in terms of an entirely Therefore the quick answer for new set of opportunities. And the IT organizations is: ‘disaggregate, other is to enhance the operational consolidate, and share’. capabilities of internal enterprise IT in supporting the ‘back office’ ■■ ‘Outside-in’ – how to respond referred to as ‘inside-out’ which is an to change that is happening at evolution of the current technologies. the borders of, and outside, the organization? Both the privateThese two models allow us to separate and public sectors also facethe different challenges that cloud pressure from outside; from thecomputing can be used to address changing shape of customer andin any organization manufacturing citizen behavior and demands.products or delivering services: ‘Outside-in’ is based on Internet- Web architecture characterized as■■ ‘Inside-out’ – what to do with loose-coupled, stateless and non- existing operations focusing deterministic. In the ‘outside-in’ largely on cost? Businesses and approach the relevant users and public agencies deliver hundreds of devices are moved outside the applications, many of which have existing secure IT environment, been designed and implemented and will co-exist together on a in isolation – all with their own cloud that permits loose-coupled, systems, and with significant stateless, consumption of ‘services’ investment. However, the activities supported from this shared of enterprise IT can be defined cloud. The periodic need to access as ‘inside-out’ as they start from, email, and a handful of enterprise and are focused on, activities applications can be handled with ‘inside’ the enterprise and reach true thin clients working from towards the outer edge defined ‘outside-in’, thus preventing the by the firewall. The few activities data, system, or application from requiring ‘outside’ access i.e. use of being vulnerable in the same the Internet and Web, are managed way as if these devices and users on the ‘inside’ governance model were working from ‘inside-out’ of traditional IT. As the number and requiring everything to be and scope of ‘outside’ requirements ‘brought inside’ the secure zone. from the business grow so do the This model can also accommodate number of ‘issues’. Part of this is customers bringing their own down to the ‘outside’ technologies devices, agile business and other of cloud, mobility, and big data ways that the requirement for a being completely different to new business model is expressed. the ‘inside’ technologies which are built around using client- Managers in the business world server to support a close-coupled, believe that this is a game-changing state-full, or data-centric, revolution in the front office and deterministic environment. alters how organizations engage with clients, customers and the public.The Cloud: Time for Delivery 5
  5. 5. ‘Inside-Out’: The evolution of IT The quick answer for ■■ Maintaining service levels within systems organizations is: ‘start small, be the same underlying process nimble, and remain innovative.’ ■■ Moving through virtualization, ■■ Internally focused on back office transactions consolidation (and So, have we reached the game- potentially transformational ■■ Reduce the capital and changing moment that business outsourcing), to cloud operating costs of existing managers want? Clearly the ■■ Increasing the flexibility of systems answer is yes, as clouds enable legacy systems and reducing the ■■ Improve operational a revolutionary new approach to cost of introducing changes. performance of technology and engaging with their markets, but business equally the IT management is correct An example of this evolutionary ■■ Standardization and as certain technologies from the approach to existing systems can rationalization of estate to Cloud can be applied to traditional be seen in Capgemini’s work with improve manageability IT to reduce costs and improve the Scottish pan-government ■■ Increase flexibility and agility to operations in an evolutionary procurement function. respond to change manner. So to summarize: ‘Outside-In’: Using cloud to help ■■ Reduce the cost of systems ‘Inside-out’: Using cloud to help with ‘outside-in’ is a revolution change to meet future with the ‘inside-out’ is an evolution in the front office. It’s about: requirements of IT in the back office. It’s about: ■■ Refine cost allocation ■■ Embracing and innovating ■■ Create possibilities for sharing ■■ Streamlining what is in place now with new delivery models various elements as in ‘X’aaS ■■ Smooth migration, maintaining ■■ Engaging and enrolling ■■ Often driven by the efficiency reliability and consistency the customer in the and effectiveness of IT systems ■■ Ensuring legacy integration service delivery chain (sometimes perceived as a ‘spaghetti’ is not simply migrated ■■ Responding to user demand, policy “cost-saving” model) to the Cloud equivalent change, and customer behavior ‘Inside-Out’ versus ‘Outside-In’ Social Website Market Customers ‘Outside-In’ Suppliers IT Ap ication pl S ec u rity Partners Border ‘Inside-Out’ Back Office IT Web & Cloud Services Cost reduction and Innovation in business models process automation Front Office Market and information value producing6
  6. 6. the way we see it InnoEnergy “ We want to improve ‘connectedness’: making it easier to find, approach, understand, and connect with others. We are looking for persistent virtual environments, in which participants can create, organize and share information, as well as find, ” connect and interact with each other. Johan Torbjörnsson CIO KIC InnoEnergy InnoEnergy is a joint venture between a number of pan-European technology, energy and academic organizations. The goal of InnoEnergy is to connect more than 1,500 energy scientists right across Europe in order to encourage innovation and bring new research and ideas ‘Outside-In’: The revolution of to market to enable a climate-neutral Europe by 2050. In doing so, the aim is to business capabilities help new SME businesses emerge. This requires levels of pan-EU collaboration that were not currently in place, and were not ICT-enabled. A cloud-based collaboration platform has recently been created to effectively connect this community. ■■ Externally focused on front office doing business in ‘the market’ ■■ Shift the focus to customer- centric joined-up services■■ Enabling integrated services that cloud-hosted platform allows ■■ Actively engage customers meet the customer’s desire to the community to connect and ■■ Reduce time, cost and experience joined-up services collaborate in pursuit of its goal to complexity of providing all that make sense to them achieve climate neutrality by 2050. forms of services rather than on the enterprise’s internal organization These two models – ‘inside-out’ ■■ Reduce the cost of introducing Enabling the blending of and ‘outside-in’ – operate in tandem, innovative models■■ enterprise services with social each addressing a different set ■■ Reduce cost-to-serve through networks or other private services of challenges, each using cloud new models that better fit with■■ Being agile in creating new technology, but in fundamentally customers solutions using cloud different ways. Confusion between ■■ Pay only for the computational■■ Composing services from these two very different aspects lies services needed when they are available cloud elements. at the heart of ‘cloud confusion’ and needed with automatic cost is frequently reinforced by technology allocationAn example of a new service created vendors pushing their products ■■ Improve customer engagementout of cloud-based components rather than business solutions. in pursuit of better outcomesin an agile way is the InnoEnergy ■■ Integrate with social andcollaboration platform. InnoEnergy’s business networking to improvegoal is to support the generation and outcomescommercialization of innovationscreated by a large internationally- ■■ Driven by the service andbased community of scientific the business (perceived asresearchers on sustainable energy “business efficiency”)systems across Europe. ThisThe Cloud: Time for Delivery 7
  7. 7. Cloud has the potential to impact the eProcurement Scotland widest possible range of functions Evolution or Revolution? and services. It offers a potentially radical approach to transforming the way in which organizations operate. Launched in 2002, eProcurement Scotland (ePS) is, in essence, a private cloud. But notice the use of the terms ‘access to services’ and ‘common Over time ePS has evolved into a scalable, ‘as-a-service’, multi-tenant and partially data’, representing the two other pay-per-consumption system. As a result it displays all of the five NIST cloud technologies that align with clouds, characteristics; indeed it was a cloud before the term was widely used. primarily in the ‘outside-in’ model The ePS platform now processes more than £3.6bn per year, representing about representing ‘mobility’ of people and one third of total public procurement spend. According to Audit Scotland, the devices to access the ‘big data’ of the system generated annual savings of £454m in 2008/9. Over 1.6 million transactions common shared environment. This go through the system annually, and it is used by over 65,000 registered users and is in contrast with the fixed nature more than 93,000 suppliers. of the desktop model and internal database of ‘inside-out’ where even This cloud platform has enabled ePS to take an evolutionary approach to replacing a notebook PC is still managed and existing procurement arrangements. The idea of ePS was revolutionary in the way provisioned as if it were a fixed it reconfigured existing practice, but wisely it did not demand an instant revolution desktop inside the firewall. Equally, for all of the Scottish public sector. the term ‘big data’ in ‘inside-out’ tends to mean the ability to make available more computing power to analyze existing internal data in The challenge is to work more depth. By contrast, think of out how to use both cloud the ubiquitous Apple iPad which can perspectives in the right connect anywhere, at any time, by context wireless, and consumes ‘apps’ from It’s true that the private and public the Apple Cloud as an example of sectors each cover an extraordinarily ‘outside-in’. The huge amount of data wide range of services. So each that makes up the Web is, of course, organization will need to tailor its the basis of the term ‘big data’. approach to cloud to get the most out of the opportunities it presents. eProcurement Scotland illustrates how organizations can realize To benefit from cloud, an organization significant benefits by taking a multi- will need to look at how both of agency approach. This procurement the above approaches apply to their solution is used by a huge range of circumstances. Maximizing the Scottish public bodies, from council benefits requires taking a holistic offices to hospitals and school view across all the functions of the kitchens. While public bodies in organization, and perhaps those of other companies, agencies and partners. This may involve providing Government Cloud Strategy simpler access to services for customers over a shared platform, embracing social media tools as part Governments are already working of the set-up. On the other hand actively to understand how cloud it might support a supply net in a will change their context at a high complex manufacturing industry level. stretching from a shared environment for common data and processes. Capgemini continues to work at It could, in government, involve the forefront of cloud strategy providing one version of common development with a number processes (like payments) across of governments including the agencies, or consolidating many of UK, Netherlands and the US, the common corporate functions and as well as with the European systems into one cloud-provisioned Commission. service orchestration platform.8
  8. 8. the way we see itScotland are strongly encouragedto use the system, it is not enforcedtop down. Instead, the system isused based on its effectiveness. Thisevolutionary approach has only beenpossible because the platform was setup with an awareness of the entireScottish public sector ecosystemand the appreciation that not allagencies would use it from the start. Governance, Security and Mobility It is this point, with the understanding of the previous sections in terms of both the roles of clouds and the basic technology, that we should address the most fundamental and troubling aspect of clouds in many people’s minds, security. Once again this falls into two different challenges: the internally focused world of traditional IT concerned about moving enterprise applications and therefore enterprise data outside the enterprise firewall to be run in an external facility‘as a service’; and a very different Instead they want to participate in challenge about supporting people external communities, use the Web using mobility devices externally in its broadest sense for real-time for new business requirements. information, and consume selected services from ‘App Shops’, at least, Once again the difference between and an increasing percentage move‘inside-out’ and ‘outside-in’ business to generate completely new business activities and the enabling activities hosted on clouds from technologies has a profound effect on Amazon, Google, and others. These the solution. The matter of moving activities focus on interaction with, enterprise data onto external service and between, ‘people, events and real- centers can be risk assessed with time data’ to use a common phrase methods that are little more than often associated with the topics a variation of existing techniques, of mobility, clouds and big data. but the rapid growth in external mobility around people using a Most importantly, these activities wide variety of devices connected can be summarized as centered by wireless is a very different issue. outside the enterprise, outside the It’s back to the question posed at firewall, and outside the traditional the beginning of this paper: ‘Do enterprise application technology business users buy Apple iPads to of IT, with only a very few activities use internal enterprise IT better, or at all requiring to connect ‘inside’ to escape the limitations in order to the enterprise. The primary focus use new services and do new things?’ and value comes from external or activities ‘outside’ the enterpriseBusiness people with iPads, and there is a limited secondarysmartphones or Android tablets are need around connecting ‘inside’ thenot looking to connect to, and use, enterprise to a handful of servicesthe existing enterprise applications, such as email. An additional pointexcept for email and maybe a is that the user might be mobilecouple of other specific applications. or traveling outside the enterprise,The Cloud: Time for Delivery 9
  9. 9. such as a sales person, or service This is an understandable governance engineer, and using a wider range requirement to secure and protect the of devices, so the term ‘mobility’ is systems and data of the enterprise being used to define any device that that should be safely protected within does not have a ‘fixed’, usually wired, the firewall, and for back office connection service to the IT-managed workers requiring access to enterprise corporate network. All of which is IT it is a correct solution. But for further underlined by the differences, front office and mobile workers which are indeed so critical a point whose focus and area of activities is that we will state them again. external and online it is a severe and often unworkable solution leading Furthermore, there are differences them to choose to use their own between the technologies and devices with suitable configuration architectures used internally and for the outside-in environment externally. Using the definition of of their working environment. ‘inside-out’ the model of traditional IT is around monolithic enterprise Actually it is the very differences applications using client-server that support the solution to these to support a close-coupled, state- challenges: the new technologies full, or data-centric, deterministic of mobility, big data and clouds are environment whereas the ‘outside-in’ about enabling and supporting the is based on Internet-Web architecture ‘outside-in’ users without infringing characterized as loose-coupled, the enterprise security model. To stateless and non-deterministic. Each do this, however, means moving and every important technology them outside the enterprise firewall characteristic is exactly reversed, as is and thereby removing the risk of the purpose that the business user, or enterprise data being accessed manager, wants to make of it. Little externally, or needing to allow other wonder the security and governance users from different enterprises to risks seem daunting when we try to pass through your enterprise firewall. apply conventional ‘inside-out’ IT security to the new ‘outside-in’ world. In adopting an ‘outside-in’ approach the relevant users and devices are Pushing the boundaries of the moved outside the existing secure internal IT world enterprise IT environment to co-exist The first wave of mobile solutions together using clouds to provide the provided an extension to the internal loose-coupled, stateless consumption IT world of applications for remote of ‘services’ on demand that are at the working, e.g. at home, on the heart of this new environment. Office enterprise applications and data by services such as word processing, effectively extending the firewall to spreadsheets etc. can be provided include the remote PC using a Virtual as on demand services from clouds Private Network, VPN, connection, such as Microsoft Office 365, and and by ensuring that the PC was even necessary elements of ERP ‘locked down’ to ensure the internal IT can be similarly provided by SAP governance was maintained. Locked- Business OnDemand or similar down enterprise PCs used in this services. And for custom services manner support ‘inside-out’ working and social CRM, practices, and continue to control and extends the capability to include limit the users’ ability to participate development and deployment in the unstructured external world services. This model can also of tools, sites and services that form accommodate customers, suppliers, the online external world. The new collaborators, and employees wanting wave of mobility driven by the users’ to ‘bring your own’ devices, agile ‘bring your own’, BYO, devices is business on innovative business specifically designed to overcome the models and all the other ways limitations of this approach in terms that business is looking to work of external access and technology. externally to create new value.10
  10. 10. the way we see it Understand the Differences Between Secure, Structured IT and Web Working Social Website Insecure, Market Secure, Structured Unstructured Input Open, Data Transformation Unstructured Interactions and Management Social Network in Front Offices & Collaboration Customers Structured IT Ap ication pl Responses S Suppliers ec Secure, urity Structured Capture Knowledge Partners Border Management Back Office IT Web & Cloud Services Cost reduction and Innovation in business models process automation Front Office Market and information value producing‘Outside-in’ is a completely the gateways between ‘outside-in’ different way of thinking about and ‘inside-out’ to ensure that the the requirement, delivery and enterprise gains cohesive leverage in deployment model, but given that all its activities. This is more likely this is a completely new generation to be achieved successfully by the of technologies with nothing enterprise IT side understanding in common with the principle exactly what is required from their enterprise IT applications, that are tightly regulated side, but at the being used in a completely different same time they must take good care way by business, this should be to ensure that they don’t ‘lock down’ expected. After all, the last big shift and use inappropriate governance on to using PC Network technology the ‘outside-in’ users and activities. changed every aspect of the Mini Computer requirement, delivery and deployment model in the early 1990s to the model we understand today as enterprise IT. This is the cloud computing revolution that business managers see and are pressing ahead to adopt as they can literally bypass the IT function if they choose.The real challenge that underliesthe success of an enterprise inadopting ‘outside-in’ is to understandhow to define, build and operateThe Cloud: Time for Delivery 11
  11. 11. A Real Example: Digital Transformation The operating authority of a major airlines, baggage handler, food services, satisfaction and most likely the lower their airport is facing demands to improve etc., etc., – will show each separately their costs through optimizing their responses. the operational management of its individual enterprise’s planned activity However, to do so is both a highly people- increasingly congested airport, both to from their secure and closed enterprise centric – using real-time data ending in improve real-time efficiency in the face IT. In each enterprise the data comes from a ‘work around’ – solution, or process, of the increasing number of unplanned the central ERP systems out to the edge to suit the circumstances, and a shift in events (late arriving aircraft, lost baggage, of the enterprise in the form of structured the technology or IT model. This is where etc), and the expectations of passengers non real-time information to show what the crucial difference between ‘inside- and airlines that information flows will should happen, and if it does happen then out’ enterprise IT, with its governance be provided both in a more timely way the whole ecosystem will be synchronized and security needs and using a new and in different people-oriented formats, and ‘resource planning’ will have business and technology model based on or feeds. Already in the airline industry, succeeded. Deploying mobility based clouds, mobility and big data to enable there have been several announcements on existing enterprise applications may ‘outside-in’, provides the answer. of airlines individually deploying large allow more freedom to permit staff to work Shifting the ‘on tarmac’ front office numbers of tablets or smartphones to away from fixed desks, but still limits the operational staff outside the firewall improve ‘operating efficiency’ to frontline information to the supposed ‘schedule’ of and supporting them on a common staff. In plain language this means using activity. shared cloud with the other members of mobility to allow staff to deal with the The operational improvement challenge their working ecosystem (shown in the many unplanned events, from missing that needs to be addressed is that in diagram around servicing the aircraft passengers to lost luggage, finding the the ‘real’ world a series of unforeseen on the ramp between flights) creates a passenger steps to replenishing food and events occur that, to be solved, require revolutionary improvement in operational drink, etc. for a last-minute change in the the staff of the companies involved to be capability in their prime function. The gate an aircraft arrives at etc. notified of each event and to be able to individual enterprise employees are now The existing, and traditional ‘inside-out’ interact together to solve each event in able to function as a collaborative team IT systems of all the various members of an optimal way. The better any business sharing information, communicating, an airport ecosystem – airport operator, can do this the higher their customer planning and organizing in real-time Cloud-based Services IT Ap cation pli S Real-time operations and reactions ec u between staff sharing information rity and communications Border Back Office IT IT Ap cation pli S ‘Outside-In’ ec u IT Ap cation pli rity S Border ec u rity Border Back Office IT IT Ap cation Back Office IT pli S IT Ap cation pli ec S u rity ec Border u rity IT Ap cation pli S Border ec Traditional IT Applications u Back Office IT rity Individual synchronized predictions Border on plane scheduled arrival and activities with staff inside the firewall Back Office IT ‘Inside-Out’ Back Office IT12
  12. 12. the way we see it Cloud is much more than just Planning for the impact of cloud technology across all these areas does not The ‘outside-in’ cloud has an impact imply that this impact will come well beyond the narrow confines of instantaneously or that the adoptionusing information and data that is technology. Cloud services are part of cloud needs to come all at once.not part of their enterprise internal IT of the Internet-Web model, indeed The technical migration will varysystems, and therefore bypassing the this is where the key technologies by area and may take years in somenecessary restrictions imposed by come from, and have embedded areas, yet happen overnight in‘inside-out’ traditional IT. Neither does themselves in the everyday business others. In particular, ‘inside-out’this approach require any of the people and personal lives of literally a world and ‘outside-in’ have very differentinvolved to be present in each other’s of users. Services like Google Search value propositions and timescales.existing enterprise IT systems, the are such an intrinsic part of everyday However, in planning for all thecurrent barrier to addressing this kind of life that it is hard to imagine a part specific actions it is important to steptransformation. of life they don’t affect in some way, back and consider the bigger picture. or what we did before they existed.There is still a need for those working A cloud strategy is far more than‘outside-in’ to handle the ‘in’ part even To work out how to make best use a technical strategy, it is a strategyif it is a secondary focus, for instance of cloud we need to take a holistic for the transformation of the entireto see what was planned to happen view. Only by looking across the enterprise, hence the increasing usagefor comparison purposes, or to update full spectrum of environmental of the term ‘digital transformation’records on what has been the final conditions is it possible to make of business. It involves businessoutcome. This does not necessarily the right judgments about an people in new roles demanding amean providing a full enterprise organization’s cloud adoption strategy. revolution in business capabilitiesapplication on their machine with the It changes the user proposition; legal as well as the existing people andcorresponding concerns of access and conditions and risk exposure differ; roles looking to carry out thesecurity; instead it means the adoption policies may need to be altered or ongoing evolution of operatingof thin client models working solely in created; working practices will change efficiency. And in turn that demandsthe presentation layer of the browser. (for instance aligning financial or HR new development techniquesBrowser-based ‘representation’ of data processes with other organizations and methods that match the newavoids the issues concerning moving in order to use similar cloud- expectations as well as deliveringenterprise data outside the enterprise provisioned processes); assets convert the existing applications for less.and placing it at risk. from capital to operating legers; the‘Outside-in’ workers are free to use new whole economic basis can changesources of information from the cloud/ from ‘own’ to ‘pay as you consume’.big data environment too, such as thevery successful iFly app. iFly can beloaded onto a smartphone or tablet and,on initiating, connects to the iFly cloudservice, which in real-time orchestratesthe unstructured information on anyparticular flight and answers queries thatairline staff are unable to answer throughtheir own internal IT systems. There aremany stories of passengers using iFly toinform airline staff of the status of theirown aircraft and flights at chaotic timessuch as winter storms creating havocwith the planned schedules.The Cloud: Time for Delivery 13
  13. 13. The Six Key Roles Using to exploit breakthroughs and a key must understand how to map oneTechnology role of the Chief Innovation Officer to the other. As an example, ifCloud value comes about through is to ‘manage’ the innovation into front office staff are moved outsidebringing business and technology a coherent digital transformation. the firewall into the ‘outside-in’together, to address both ‘inside- environment then services such asout’ and ‘outside-in’ potential. The back office is the home of office automation tools will need traditional centralized IT and needs to be provisioned accordingly i.e. It is thus imperative to consider to use ‘inside-out’ cloud technologies shifting from Enterprise Microsoft the different types of internal users to address the challenges of the: Office to online Microsoft Office and stakeholders. We have grouped 4. CFO – The financial functions 365, which is optimized for mobility them into a set of six generic role are concerned with ensuring clients, and permits data sharing types, each with their own needs, continued compliance and and collaboration on a cloud. views and challenges. Three roles keeping a tight rein on IT projects represent the ‘front office’ who want that could have expensive Developing and deploying to exploit the ‘outside-in’ revolution or unforeseen outcomes. At applications and services in business capabilities and three present, budget cuts are the Understanding the difference between‘back office’ who are concerned with dominant item on the CFO ‘inside-out’ with its monolithic evolutionary improvement using agenda so consolidation and applications deployed through client-‘inside-out’ technology improvements. sharing of resources is an server, and ‘outside-in’ with its masses attractive consideration. of constantly changing services Driving the ‘outside-in’ business 5. CIO – The traditional IT function consumed from clouds leads to the‘digital transformation’ are the: is responsible for ensuring the understanding that several different1. CEO – The CEO seeks new consistent delivery of critical types of software development and markets and business streams to IT services. Currently the CIO deployment during different lifecycles grow revenues and increase profits is under pressure to deliver will be needed alongside flexible, based on innovative business significant savings to help robust and well-managed operations. models to find and ‘service’ their control budgets and needs existing and new customers. to find a significant new way TechnoVision, the Capgemini2. Business Users and Managers to address this in the already methodology for aligning the – A new generation of digital- tightly managed IT operations. development of technologies with savvy users and their managers 6. Corporate Services – Another their impact on business, addressed are importing their knowledge role that has different titles but a this through a simple metaphor based and expectations in the use of common objective of looking at on four different modes of transport Web-based ‘services’ on a wide ways to ‘outsource’ whatever is and a hub to better understand five variety of devices into their roles. a non-differentiating corporate different styles of applications and These people have already started service. This can range from services that are recognizable: to exploit cloud-based services, traditional operations outsourcing 1. The TRAIN is a stable, robust adopted their own mobility to more specialist elements mode of mass transportation. It is devices, and are making use of such as hardware operations, not flexible but reaches its goal in a the big data available externally. core functions such as email, or predictable, straightforward way. It They will drive the enterprise into even business processes such is based on an infrastructure that new and profitable exploitations. as invoicing and HR that can is designed and built to last for3. “Chief Innovation Officer” – use shared cloud-based services. decades, and everybody who uses While the job has many different New procurement functions and that train travels in the same way titles, most organizations have capabilities will develop within from A to B. The functionality is smaller groups trying to find new this role to manage the new tasks provided in a highly efficient and and innovative ways of delivering associated with cloud deployment. standardized way. Many people for customers. These small groups will be affected when trains do not have distinctive application and The views, needs and concerns of run. The train is akin to ‘inside-out’ IT needs. They are, in essence, these different perspectives must IT because trains depend on their inventing the future – and thus at all be considered and built into own infrastructure being built and times are cannibalizing the present. a cloud strategy. And they are all operated solely for their benefit as However, such behavior can users of business applications and an overhead. ultimately damage the enterprise technologies, albeit in different Example: The internal ERP system as it will lack cohesion in its efforts ways and to different extents. We of a large process-centric department14
  14. 14. the way we see it Development & Deployment System SAAS Methodology Acceleration Factories Pricing environments solutions centers Personalize Apps Business SCRUM Rapid BI Reports Per Report An individual’s capability to choose BOBJ Explorer Rapid Design Innovation Apps Factories Per App their ‘tools’ and how they wish Roambi & Visualization Workshop Menu Card to ‘interact’ and ‘collaborate’ AppStore SCOOTER NetWeaver BPM Cordys BPM SCRUM Rapid BPM Services As a service Cordys Rapid Design Innovation Per Differentiate Duet Enterprise & Visualization Workshop functionpoint A Manager’s capability to build locally SharePoint Rapid Solution Menu Card unique ‘differentiating’ capabilities 2010 Workshop CAR both externally and externally to create revenue NetWeaver Common Rapid Solution PI Factory Price per Sybase Business Reference Workshop interface ByDesign Architecture As a service Core Competences (CORA) HUB Common, shared core processes that support each differentiated offer CRM Sales on Deliver Rapid Solution BI (Cubus) As a Service above, and connect to transactional SRM Demand Rapid Design Workshop Menu Card IT applications below & Visualization Fixed Price SCRUM BUS Comply (ERP, etc.) ERP Business Deliver Rapid Solution Remote As a Service Traditional Enterprise Applications with ByDesign Workshop Design & Menu Card organized procedures and data integrity, Configuration Fixed Price keeping compliant business results TRAIN would be a good example of this 3. The CAR is also an agile means of type of high reliability application. transport but unlike the scooter2. The SCOOTER by contrast it will support a group of people represents the complete alternative with a common destination again being a lightweight, extremely using the public infrastructure. flexible, individual and very There are many different types personal method of transport. The of cars, and their owners can infrastructure for the scooter, both configure and adapt them to reflect roads and parking, is already in the aspects of their particular likes place as a public utility just like and dislikes or requirements. the Internet and Web. It can be Example: A workgroup tasked with used for the “last mile,” bringing the development and support of a you to places even cars cannot new product offering which is both reach. In crowded areas, scooters a short-term task and requires are faster than any other means active access to and participation Three key actions from today of transport. It is easy to rent a within the external world. scooter – just for a day or so – 4. The BUS is also a relatively stable and explore parts of the city in a mode of mass transportation, but 1. Appoint a leader for cloud flexible, cost-effective way. clearly with more flexibility. A bus – Or one for ‘inside-out’ and Example: An example of this can take a detour if circumstances one for ‘outside-in’ lightweight, flexible approach require, and it can be used for would be a knowledge worker alternative purposes on top of the 2. Set out a strategic roadmap utilizing a collection of services in a fixed schedule. Moreover, it usually – Involving business and personal ‘mash up’ to achieve high connects directly with the train technology personal value almost certainly in system. Buses can be used as both 3. Select a place to pilot cloud the external world of ‘outside-in’. public and private vehicles, i.e.The Cloud: Time for Delivery 15
  15. 15. ‘outside-in’ and ‘inside-out’, in both applications described above to cases offering an effective way for co-exist and co-ordinate with each a larger group of people to gain the other. For example, it enables data benefits of traveling together to a to pass from an employee’s profile common destination. to a company’s payroll system Example: A departmental service to ERP, or a job seeker’s profile for providing a focused application to benefits payments to ERP. internally, or externally a shared services provision for a A good cloud approach combined similarly focused activity such with existing IT supports the as a marketing service. matrix of roles, applications and 5. All of these modes of transport services to be found across an are tied together through a HUB, enterprise. Getting to this position, best seen as a modern town center however, means appreciating the venue where trains, buses, cars full impact and devising a strategic and scooters can all conveniently set of goals against which to deliver “dock” and people can easily immediate tactical demands. In integrate their means of transport, particular it means recognizing while benefiting from a host of the differences between ‘inside-out’ add-on services. and ‘outside-in’ as environments for Example: A HUB service would governance, delivery and deployment enable all the individual methods alongside understanding the benefits of a well-designed services integration strategy.16
  16. 16. the way we see it A Roadmap for Cloud Recognizing that this involves a“All good in theory – so how mindset change as much as it does to turn it into reality?” That any other, Capgemini believes that a is the question that so many leadership community needs to come business managers and public together collectively. This community administration leaders are asking. may also include customers, suppliers, The temptation to delay should be and partners who share a mutual resisted for two simple reasons: interest in transforming an aspect of ■■ Those that are in the vanguard a market place, such as the example of this initiative – and who are given earlier around an Airport tackling it competently – will Operating Authority. This community benefit earliest. With the potential should re-evaluate the context, share for very substantial savings (it is views and concerns, and re-set the not unusual to show a business context within which its operations case with savings of around 25%1), and services will work. This then they will remain in financially creates a basis for making specific far healthier positions. And decisions about particular initiatives. thus they will be able to service their core role far better. Crucially, approaching this in the ■■ Change will continue regardless traditional manner with “boards, and it risks engulfing those chairs, and briefing papers” is not as companies and public effective as taking a far more engaging administrations that resist, visual and story-telling (use case) particularly with reference to approach. To that end Capgemini the ‘outside-in’ model. You only has developed an outline framework have to look at the extent to (see note below) for the “Journey to which everyday people are taking Cloud in the Public Sector”. It will: things into their own hands, ■■ Accelerate the awareness individually and collectively. building, learning, and decision For example, people (including making for an organization corporate executives, public or group of agencies servants and politicians) are using ■■ Personalize generic, social networks like Facebook to internationally relevant private or comment on and find out about public sector material and make it company and government services. specific, relevant and meaningful Both businesses and governments ■■ Enable the business and its need a strategy to take advantage constituent services to be of the opportunities this offers broken down into manageable for getting customer feedback components; allow the evaluation and informing their customers, of options and priorities to take potential customers and the public. place; and support decision Without this strategy such social making to phase the reconstitution media will become an unmanaged of services in potentially source of false information and different (cloud) models, with aggressive criticism, but, with an potentially different partners effective digital transformation ■■ Provide a framework for program, existing corporations learning, and leading practice will be able to leverage new sharing, between a corporation’s customer opportunities leading subsidiaries or public agencies. to increasing competitiveness. And in the tough, global markets Cloud is here. The technology of today, finding new ways to has matured at an exceptionally differentiate and secure customers challenging time for companies and is a critical success factor. public administrations. How they choose to use it will help determine how successfully they address these challenges in the years to come.1 For instance, Capgemini’s “Messaging as a Service” solution offers its customers a 50% overall cost reduction in the (client-generated) business case.The Cloud: Time for Delivery 17
  17. 17. A Brief Technology Overview of 2. The Web: or what we might look Clouds, Mobility, and Big Data back on as Web 1.0, followed this Clouds: a simple explanation by providing browser technology The topic of clouds has been a for the universal management of recognizable part of the debate on content, a real game-changing how to improve business using moment in terms of technology technology for more than two years standardization suddenly now, ample time for clarification offering real tangible benefit, on the topic and identification of and changing how companies the core issues and benefits. Yet could participate in the external if anything it has become less marketplace by building Websites. understandable with the passage 3. Web 2.0: more recently added a of time, as the hype cycle attempts new range of technologies and to remake almost any product or capabilities around the ability of technique as a new technology to be people to interact, and share in considered under the ‘cloud’ label. a new range of so called ‘social’ activities, so named because the Here’s a simple technology roadmap universal social model created an building up a series of changes equally radical game-change that starting with the advent of the put people at the center rather than Internet and the browser into applications, data or computers. popular use in the early 1990s: 4. Cloud Services: is the latest 1. The Internet: started a profound stage of this progression adding change by using standards to the much-needed ability to provide a simple, yet effective, deliver processes, as universally universal connectivity accessible services delivered in capability that allowed anyone a standardized manner from and anything to be contacted servers in a cloud data center as and when needed without with a payment model based predetermined planning and on use and an operating model implementation of special faculties. based on simplicity in build, and flexibility in changing the orchestration of any process. Just reflect for a moment on the What is the Cloud? Why so much confusion? importance of this last point and consider how difficult it is currently to achieve processes by using the content model to New Markets & Revenues create forms. As social CRM continues the transformation of business models around ‘servicing’ customers, and marketplaces better, Productivity of People Innovative Business Models by matching customer demands Social Networking Digital Transformation Front Office and responding to events in Collaboration Servicing Customers Internal Tablets & Smartphones Front Office Revolution optimized ways, the importance of an effective process model to ? manage the cycle from initial Evolution of IT Capabilities Computing Resource Shift interest to placing an order is clear. Virtualization of Data Center Everything as a Service Flexibility and Agility IaaS, PaaS, & SaaS But quite how does this translate Development & Test into the term ‘clouds’? Strangely Back Office External enough it is simple. The above Internal Resourcing four technology steps are all based on using a technology model that is described as ‘loose-coupled, stateless and non-deterministic’.18
  18. 18. the way we see itIn contrast, traditional enterprise inside the firewall onto an external presentation sent to it by a WebIT applications are integrated in a device with the technology server if it is content, or by a cloudmanner described as ‘tight-coupled, focused on overcoming the need to server if it is a set of services. As astate-full and deterministic’ allowing accommodate periodic connection practical example consider Apple,enterprise architecture to draw and disconnection. As such a key its App Shop and its iCloud. Thediagrams which show exactly what part of their functionality was to Apple App Shop holds the ‘services’is connected to what and for what be able to take and store data in a or ‘apps’ that a user can choose topurpose. With the new technologies cache in the external device leading use and provides the authenticationin a loose-coupled model there to concern over the security of the for their use, a download providesare no permanent connections device itself. This classic example of the enabling service element, butso it’s not possible to draw up an the ‘inside-out’ model of traditional IT in apps such as iFly all the data orenterprise architecture diagram in led to applying internal governance information is supplied as a real-the same way. The only possibility to the first generation of external time connection under REST. In theis to show which users and devices devices such as ‘locked down’ laptops case of a banking app this is a veryare part of the same ecosystem, then with encrypted drives. This practice secure method of separating the userrepresented by a drawing of a cloud. has continued even as a second in the ‘outside-in’ environment from generation of more sophisticated access to the secure traditional IT It therefore follows that by definition devices – led by smartphones and applications, data and systems housed anything based on the standard tablets – has led to a change in in the ‘inside-out’ environment. client-server tight-coupled model what and how users work. These cannot truly be defined as a cloud devices and their users are severely A user’s data is held on Apple iCloud as it will not exhibit loose-coupled compromised in their functionality by in the form of cloud storage and architecture! But some of the key these practices because they do not can be accessed by any of the user’s technologies that make up the belong to the ‘inside-out’ world of devices; PC, iPad, iPhone, or iPod total technology model of the traditional IT, but the now ‘outside-in’ that possess the authentication key Cloud can be applied individually. world of the Web and clouds. thus ensuring that all activities are Virtualization in particular can be perfectly synchronized at all times. used highly effectively to improve The term ‘mobility’ is associated This is in very direct contrast to the the operating efficiencies of existing with devices that are able to function older form of mobile client-server data centers. This is a sensible and beyond the governance and delivery application, and its requirement highly recommended approach, of ‘inside-out’ enterprise applications, for an extensive and complicated but a virtualized server running and are able to make use of all types synchronization to maintain ‘state- applications is not able to host of Web-based capabilities including full’ data. As such, the Cloud and‘services’ and act as a cloud server cloud services in an ‘outside-in’ mobility are inherently part of the without an additional specialized manner. For these devices, and the same architectural model, and layer. This layer should conform people using them, the external that leads to the third part of the to standards and practices such focus is predominantly on doing model around ‘unstructured’ data, as the Open Data Center Alliance business with others, and using often referred to as big data. to allow ‘services’ to be hosted external information from the and orchestrated with those of Web. As the architectural model is Big Data other businesses, or government loose-coupled, (hence the ‘mobility’ Client-server and its applications departments, in the same manner between all resources), stateless and are data-centric and as the data as Web servers are standardized to non-deterministic with browsers held is directly associated with facilitate content access and ‘mashups’. as a key delivery element it is also the applications that use it via thin client and requires hosting of tight coupling it is referred to as We can break the technologies its services and data. The Cloud ‘structured’ and held in relational down into four groups as shown in satisfies this requirement and indeed databases. Various forms of storage‘What is the Cloud? Why so much enables the whole model of ‘mobility’- have been developed to handle the confusion?’ but in time these will based as applied to ‘outside-in’. huge amounts of data an enterprise become integrated into a cohesive set processes in its daily transactions of capabilities as shown in ‘Integrated The term ‘stateless’ means that there and mounts up over the year(s), Enterprise Cloud Computing’. is not a data model in the sense with data warehouses and data of the client-server application marts, online and offline storageMobility environment, but rather there is what all playing their parts. At the sameThe first generation of ‘mobile’ is referred to as a ‘Representation time techniques for quantifyingsolutions supported the delivery of State, usually called ‘RESTful’ the data, Master Data Management,of enterprise applications from whereby a browser displays a screen or analyzing particularly largeThe Cloud: Time for Delivery 19