Consultingmagazine.com Best Practices Webinar - The Impact of Cloud Computing on the Management and IT Consulting Industry Dr. Chad M. Lawler - Director of Consulting Services Cloud Computing, Hitachi Consulting

1. www.hitachiconsulting.com
The Impact of Cloud Computing
on the Management and IT
Consulting Industry
Best Practices Webinar
Tuesday, December 6, 2011 at 1:00 pm (ET) Dr. Chad M. Lawler
Director of Consulting Services
Cloud Computing
chad.lawler@hitachiconsulting.com
www.hitachiconsulting.com/cloud
© Copyright 2011 Hitachi Consulting

2. Discussion Agenda - Impacts of Cloud on Consulting
1. IT Delivery Model is Changing
2. Consulting is Changing
3. Focus is on Integration & Delivery Speed
4. New Capabilities Required
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3. Cloud Shifts IT Consumption
 Cloud Computing is Driving a Fundamental Shift Consumption of IT
 Multi-cloud is
the norm with increased adoption of various & different cloud resources
 Average cloud consumer will use at least 10 different cloud resources by the end of 2012
 Cloud Applications & Services
 80% of new commercial enterprise applications will be cloud-based in 2012
 Cloud & IT service automation tools will eliminate 25% of IT labor hours by 2015
 Low-cost cloud services will cannibalize 15% of top outsourcers' revenue by 2015
 IT Operations Shift
 20% of Businesses IT Operations will be Cloud-based by 2012
 Public cloud spending will grow four times faster than overall IT spending
 50% of Global 1000 will store customer-sensitive data in public cloud by 2016 Q4
 SaaS & Mobile Dominance
 50% of enterprise email users rely primarily on browser/tablet/mobile client by 2016
 Mobile smart phones/tablet app dev projects outnumbers PC 4-to-1 by 2015
 By 2016, SaaS represents 50% of the entire cloud market, $30.1 B out of the total $60 B
Source: Gartner, 2011, "Gartner's Top Predictions for IT Organizations and Users, 2012 and Beyond”
Source: IDC, 2011, "IDC Predictions 2012: Competing for 2020" Doc #231720
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4. Vast Cloud Ecosystem of Numerous Cloud Services
SaaS PaaS
IaaS Source: Cloud Times
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5. Complex Cloud Ecosystem Relationships
Services Cloud Services Consumers
Providers
 Complex Cloud Ecosystem
 Community of interacting
companies & consumers selling
and using cloud services
 With a complex set of technology
& business forces & relationships
SaaS
 Driving Shift in IT Consumption
 Increase in service providers,
stakeholders & business
relationships to be managed
PaaS
 Need for Intermediaries
 Requires integration capabilities to
connect & enable cloud potential
 Cloud Service Brokers (CSB)
IaaS
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6. IT Supply Chain - Relationship Management & Service Integration
 Improve IT Supply Chain
 IT Organizations Must Become More Effective IT Supply-Chain Managers
 IT value is largely defined by its role as the owner of the IT infrastructure
 Primary value of IT is evolving from operator role, moving to managing IT supply chain
 Create More Value
 IT can create value for their business & better position IT as an enabler/growth driver
 Must spend less time on IT issues and more focus on IT supply chain management
 Emphases on managing partners, outsourced IT and cloud services providers
 Relationship Management & Service Integration Focus
 IT organizations will have to excel at relationship management
 Become more adept at coordinating widely distributed activities and services
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7. Consulting Companies/SIs as Intermediary Cloud Brokers
Services Cloud Services Channels Brokers Consumers
Providers
VARs Marketplace
Brokerage
Technologies &
Platforms
SaaS
System Marketplace
Integrators Brokerage
Technologies &
Platforms
PaaS
Consulting
Companies Marketplace
Brokerage
Technologies &
Platforms
Value-Add
IaaS Service
Developers
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8. Cloud Service Broker Benefits
 Cloud Brokerage Service
 Aggregation, integration, automation & customization of different cloud services
 Simplifying procurement & implementation, providing governance, management & control
 Cloud Simplification
 Reduces complexity of cloud service adoption & delivery, addressing transition challenges
 Automation of complex & challenging processes that inhibit cloud service on-boarding
 Cloud Single Point of Ownership
 Multiple cloud IaaS, Paa & SaaS solutions aggregated into a single point of ownership
 Orchestration provides a single point of relationship across multiple cloud solutions
 Cloud Sourcing Optimization
 Improved cloud sourcing and implementation options
 Orchestration and automation to simplify buying and management process
 Automation  Contracting  Procurement  Customization
 Aggregation  Billing  Provisioning  SLA Management
 Integration  Support  Testing  Contract Management
 Planning  Migration  Service Management
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9. Hitachi Consulting Cloud Service Delivery Platform
• Integrated Cloud Consulting & Brokerage Service Delivery
• Multiple Integrated Cloud IaaS, PaaS & SaaS Solutions
• Orchestration, Providing Single Ownership Across Platforms
• Integrated Cloud Services Management, Governance & Control
SMB IT
Customers
SaaS
• Simplification
• Aggregation
• Integration Mid Market IT
• Automation Customers
• Sourcing
• Procurement
PaaS • Governance
• Control
Enterprise Market
IT Customers
IaaS
Defense &
Public Sector
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10. Impacts of Being Intermediary Cloud Brokers
 Change in Service
 Consulting Organizations should evolve their business, operations and delivery models
 Must provide consulting services plus cloud service integration
 Requires New Skills, Expertise & Methodologies
 Change in Delivery
 Solution Delivery Moves to the Cloud Platform
 Type of Services Delivered Changes - Mobile cloud apps, Managed cloud services
 Cost of Delivery and Structure Changes
 Change in Speed
 Increased rate of service with rapid delivery timeframes
 Change in Revenue Model
 Revenue model changes from one-time to consulting plus ongoing incremental revenue
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11. Summary - Cloud is Changing IT Consulting
 IT Delivery Model is Changing
 Push IT Supply Chain to Pull IT Supply Chain
 From “Inside-Out”, to “Outside-In”
 Consulting is Changing
 From Development & Implementation
 To Aggregation, Integration & Managed Services
 Focus is on Integration & Delivery Speed
 From Long Solution Lifecycles
 To Rapid Cloud-based Delivery Model
 New Capabilities Required
 Cloud Integration, Aggregation, Customization Management & Governance
 Via New Service Broker & Delivery Platforms with Integrated Consulting Services
 Requires New Skills, Expertise & Methodologies
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12. Dr. Chad M. Lawler
Director of Consulting Services
Cloud Computing
www.hitachiconsulting.com/cloud
chad.lawler@hitachiconsulting.com
Toll free 1.877.664.0010
© Copyright 2011 Hitachi Consulting 11