Managing Cloud Computing: A Life CycleApproachGerry Conway Innovation Value Institute (IVI)Edward Curry Digital Enterprise...
Adoption challenges with CloudContext and BackgroundThe Cloud Life CycleConclusions and future research                   ...
The Innovation Value Institute (IVI) is a consortium of leadingplayers designing approaches to managing IT for business va...
IVI Vision: transform the way public and private sectororganisations manage IT for business value and innovation i.e.     ...
IT Capability Maturity Framework™                                                          High                        • V...
The IT Capability Maturity Framework (IT-CMF)                                                6
Benefits of the IT-CMF               • Leverages the collective intelligence of the ConsortiumDevelopment      plus indust...
Quotes from users of the IT-CMF Pharmaceuticals company Merck has used the framework to save 8% on its budget for technolo...
Adoption Challenges for the Cloud                        How does the IT-CMF                        help me with Cloud?   ...
Drivers for the adoption of Cloud                         Reduce Cost                                       Scalability an...
Adoption challenges with Cloud                         Functionality & Performance                                       C...
IVI Approach     Work Group   Research   Solution                                        12
A Cloud LifecycleAdopted from: Cullen, S., Seddon, P., and Wilcox, L.Managing Outsourcing, The Life Cycle Imperative.MIS Q...
Cloud and the IT-CMFThe IT-CMF Cloud Life Cycle delivers• Maturity Assessment• An improvement roadmap• Best practice      ...
ContentsContext and BackgroundThe Cloud Life CycleConclusions and future research                                  15
The IT-CMF Cloud Life Cycle                              16
The Cloud Life Cycle – Methodology                    Each step has defined:                    • Objectives: What has to ...
The Cloud Life Cycle - Investigate                  Objective                    To provide an insight and understanding o...
The Cloud Life Cycle - Investigate                  Challenges                  IT to meet new requirements, with reduced ...
The Cloud Life Cycle – Manage the Supply Chain                 Objective                   Manage the new environment as e...
The Cloud Life Cycle – Manage the Supply Chain                 Challenges                   • Integration of the Cloud ser...
ContentsContext and BackgroundThe Cloud Life CycleConclusions and future research                                  22
Conclusion    The research has demonstrated the value of the approach                             Case Study  IT-CMF provi...
Future ResearchIVI Strategy - Layered ApproachIs cloud computing appropriate for my business   • Is public, private, commu...
Further information                                Gerry Conway - gerard.conway@nuim.ie                                   ...
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Managing Cloud Computing: A Life Cycle Approach

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Cloud computing has the promise of significant benefits that include reduced costs, improved service provisioning, and a move to a pay-per-use model. However, there also are many challenges to successfully delivering cloud-based services; including security, data ownership, interoperability, service maturity and return on investment. These challenges need to be understood and managed before attempting to take advantage of what the cloud has to offer. In this paper we introduce a nine-step cloud life cycle that can be used for both the migration and the ongoing management of public, cloud-based services. A consortium of organizations using an open-innovation approach developed the life cycle. This paper describes each step of the life cycle in terms of the key challenges faced, and the recommended activities, with resultant outputs, needed to overcome them.


G. Conway and E. Curry, Managing Cloud Computing: A Life Cycle Approach, in 2nd International Conference on Cloud Computing and Services Science (CLOSER 2012), 2012. Available at: http://www.edwardcurry.org/publications/Conway_CloudLifeCycle_2012.pdf

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  • - IVI’s mission is to enable IT organisations to shift right the quality of adopted IT management practices, better management practices lead to improving IT effectiveness and efficiency in delivering business value
  • Objective: summary slide to wrap up on
  • Security-With cloud computing, you are totally dependent on the service provider for your security needs. Cloud computing companies claim to provide complete security for access, compliance, data segregation, backup, recovery, etc. but it's too early to be completely sure as only time will tell.Data Ownership-One common fear about data in the cloud is what happens to it once it leaves the building? Companies who move to the Cloud probably won’t completely lose track of their data but they are likely to lose some level of ownership and in particular control of who accesses their data and for what purpose.Lock-in & Interoperability-Today each service offering has its own unique way of how the cloud interacts with applications, data and clients. So once the decision is made to move to the cloud, it makes it very difficult to use multiple vendors and to seamlessly integrate legacy and cloud services.Standard Architecture-There is no standard open architecture defined for the Cloud. Each of the major cloud providers (Amazon Web Services, Salesforce force, Google App Engine, and Microsoft Azure) imposes different architectures that are dissimilar to the common architectures currently used for enterprise apps.Enterprise Support and Service Maturity -Cloud computing services may not provide the levels of reliability, manageability, and support required by large enterprises. Today, many services are aimed primarily at Small and Medium Enterprises (SMEs) and at consumers, rather than large enterprises.Reduced Functionality of Hosted Applications. -Today many web-based applications simply aren't as full-featured as their desktop-based equivalent. For example, you can do a lot more with Microsoft PowerPoint than with Google Presentation's web-based offering. Loss of Data-Data stored in the cloud is safe and replicated across multiple machines, but relying on the cloud puts you at risk if the cloud lets you down.Return on Investment-The expectation is that external cloud computing can reduce costs for large enterprises as well as SMEs. However, the cost advantages for large enterprises may not be as clear as for SMEs, since many large enterprises can reap the benefits of significant economies of scale in their own internal IT operations, or there is a lack of clarity on current IT consumption.Requirement for on-line connectivity-Cloud computing is impossible if you can't connect to the internet. A dead internet connection means no work, and in areas where internet connections are few or inherently unreliable, this could be a problem.
  • Security-With cloud computing, you are totally dependent on the service provider for your security needs. Cloud computing companies claim to provide complete security for access, compliance, data segregation, backup, recovery, etc. but it's too early to be completely sure as only time will tell.Data Ownership-One common fear about data in the cloud is what happens to it once it leaves the building? Companies who move to the Cloud probably won’t completely lose track of their data but they are likely to lose some level of ownership and in particular control of who accesses their data and for what purpose.Lock-in & Interoperability-Today each service offering has its own unique way of how the cloud interacts with applications, data and clients. So once the decision is made to move to the cloud, it makes it very difficult to use multiple vendors and to seamlessly integrate legacy and cloud services.Standard Architecture-There is no standard open architecture defined for the Cloud. Each of the major cloud providers (Amazon Web Services, Salesforce force, Google App Engine, and Microsoft Azure) imposes different architectures that are dissimilar to the common architectures currently used for enterprise apps.Enterprise Support and Service Maturity -Cloud computing services may not provide the levels of reliability, manageability, and support required by large enterprises. Today, many services are aimed primarily at Small and Medium Enterprises (SMEs) and at consumers, rather than large enterprises.Reduced Functionality of Hosted Applications. -Today many web-based applications simply aren't as full-featured as their desktop-based equivalent. For example, you can do a lot more with Microsoft PowerPoint than with Google Presentation's web-based offering. Loss of Data-Data stored in the cloud is safe and replicated across multiple machines, but relying on the cloud puts you at risk if the cloud lets you down.Return on Investment-The expectation is that external cloud computing can reduce costs for large enterprises as well as SMEs. However, the cost advantages for large enterprises may not be as clear as for SMEs, since many large enterprises can reap the benefits of significant economies of scale in their own internal IT operations, or there is a lack of clarity on current IT consumption.Requirement for on-line connectivity-Cloud computing is impossible if you can't connect to the internet. A dead internet connection means no work, and in areas where internet connections are few or inherently unreliable, this could be a problem.
  • Managing Cloud Computing: A Life Cycle Approach

    1. 1. Managing Cloud Computing: A Life CycleApproachGerry Conway Innovation Value Institute (IVI)Edward Curry Digital Enterprise Research Institute (DERI)2nd International Conference on Cloud Computing and ServicesScience (CLOSER 2012), Porto, Portugal 2012. 1
    2. 2. Adoption challenges with CloudContext and BackgroundThe Cloud Life CycleConclusions and future research 2
    3. 3. The Innovation Value Institute (IVI) is a consortium of leadingplayers designing approaches to managing IT for business value Steering patrons www.ivi.ie IVI membership includes 75+ organizations from leading enterprises, consulting, not-for-profit, government and academic organizations 3
    4. 4. IVI Vision: transform the way public and private sectororganisations manage IT for business value and innovation i.e. shift enterprise capability to the rightHigh Dated practices Standard Best practices Emerging next High practices practices Enterprise IT capability to deliver business valueLow Low Low Level of Firm / Industry Adoption High
    5. 5. IT Capability Maturity Framework™ High • Value-centric IT management Optimizing • State-of-the-art practices and outcomes inspired by CMMI • Benefits from IT investments quantified and communicated Advanced • Practices and outcomes well IT-CMF Macro Capabilitiey above industry average Maturity • IT/business interaction forma- Intermediate lized for all critical processes • Transparent investment decisions • Delivering basic IT services Basic • Some IT/business interactions formalized • No formal processes Initial • Ad-hoc management of IT Low Defines maturity profiles across IT domains to transform organizations from cost-centre to value-centres
    6. 6. The IT Capability Maturity Framework (IT-CMF) 6
    7. 7. Benefits of the IT-CMF • Leverages the collective intelligence of the ConsortiumDevelopment plus industry & academic research • IT-CMF integrates existing frameworks/ standards into a Integrated meta-level architecture to provide an integrated & holistic framework • IT-CMF allows measurement of improvement against a Assessment baseline using standard assessment toolsBenchmarking • IT-CMF provides benchmarking against peers • IT-CMF provides prioritization & improvementRecommend recommendations for 30+ critical process areas
    8. 8. Quotes from users of the IT-CMF Pharmaceuticals company Merck has used the framework to save 8% on its budget for technology innovation and 20% on its total budget for experiments. Intel has reported a 25% improvement in IT capability for 10% less money. Axa-Tech, the IT division of insurance company Axa, says it has achieved a 96% reduction in set-up working time for new servers, an 81% drop in total cycle time to set-up virtual servers Mike Bevil, manager of IT innovation at MRL, told Computer Weekly that using the framework had enabled the company to improve the "hit rate" of successful projects by 20%. BP group enterprise architect Vincenzo Marchese says the IT-CMF has helped BP reduce the number of suppliers it deals with and move projects from pilot to production status more quickly. 8
    9. 9. Adoption Challenges for the Cloud How does the IT-CMF help me with Cloud? 9
    10. 10. Drivers for the adoption of Cloud Reduce Cost Scalability and flexibility Agility and adaptability Better use of resource Increased collaboration Remote access and increased mobilityIVI-CP Templates-v057-18Feb09-SB.pot 10
    11. 11. Adoption challenges with Cloud Functionality & Performance Compliance & Security ROI Connectivity & Availability Architecture & Migration SLA MonitoringIVI-CP Templates-v057-18Feb09-SB.pot 11
    12. 12. IVI Approach Work Group Research Solution 12
    13. 13. A Cloud LifecycleAdopted from: Cullen, S., Seddon, P., and Wilcox, L.Managing Outsourcing, The Life Cycle Imperative.MIS Quarterly Executive, Mach 2005, pp.229-256 13
    14. 14. Cloud and the IT-CMFThe IT-CMF Cloud Life Cycle delivers• Maturity Assessment• An improvement roadmap• Best practice 14
    15. 15. ContentsContext and BackgroundThe Cloud Life CycleConclusions and future research 15
    16. 16. The IT-CMF Cloud Life Cycle 16
    17. 17. The Cloud Life Cycle – Methodology Each step has defined: • Objectives: What has to be achieved • Activities: What needs to be done to accomplish the objectives • Outputs: List the key deliverables 17
    18. 18. The Cloud Life Cycle - Investigate Objective To provide an insight and understanding of what the organisation wants to achieve by moving to the Cloud and what goals and expectations are to be met. This will be based on an analysis of the appropriate industrial segment, with insights from experts and experiences from peer organisations, together with knowledge of potential suppliers. Activities • Determine the organisations IT objectives and its alignment with the business • Determine what role Cloud computing will play within the IT Strategy • Gather intelligence on Cloud offerings • Validate with subject matter experts Outputs • IT strategy for Cloud computing • Strategic intent of moving to the Cloud and how it progresses the business objectives. • Intelligence document on offerings and service providers • What will be achieved: compare strategic intent with the intelligence gathered 18
    19. 19. The Cloud Life Cycle - Investigate Challenges IT to meet new requirements, with reduced budgets. Financial − Cost benefit analysis: difficult to do if not all cost are known or understood. − Capex to Opex: Although it saves money overall, Capex may already be spent depending on where the service is in its life cycle. Further resistance by the perceived lack of financial control of the pay-as-you go model. − The need for seed funding to investigate cloud options. Example One of the company interviewed had a strategy of providing the same or better functionality at a reduced cost, to move IT people up the value chain and to encourage the use of shared IT services. Extensive investigation with suppliers and adopters proved that all of these could be achieved. The main draw backs were the financial constraints plus a certain resistance from the user community who did not directly get any financial benefits 19
    20. 20. The Cloud Life Cycle – Manage the Supply Chain Objective Manage the new environment as efficiently and effectively as possible. The organisation will need to adapt to the new set-up particularly at management level, as rather than directly managing internal resources, the requirement will be to manage the supplier and in particular the supplier relationship. This will require effective monitoring and control so that issue, variations and disputes can be resolved to both parties satisfaction. Activities • Manage and report at operational level. • Capture and manage issues, variations and disputes. • Manage the supplier relationship. • Change management. • Continuous improvement. • Assess and validate how the Cloud system is performing. Outputs • Day to day performance metrics. • Status on issues, problems, variations and disputes. • Supplier meeting minutes. • Change management report. • Audit reports. 20
    21. 21. The Cloud Life Cycle – Manage the Supply Chain Challenges • Integration of the Cloud service with existing reporting and support structures. • That management make a smooth transition from managing their own internal staff to managing the supplier and the interfaces. • The control, communication and co-ordination of internal and external changes. Example: • It is working very well as they have a very successful relationship with the supplier. They now have a much better service which allows for better user management which they now describe as being at an enterprise level. • The supplier provides notification within agreed time lines for all changes, including outages and critical patches. • The service is at such a level that a supplier review is done on an as-required basis. There are regular scheduled reviews with user groups. • They have retained the flexibility to move back in-house or to an alternative supplier - 3 months’ notice period agreed up-front. 21
    22. 22. ContentsContext and BackgroundThe Cloud Life CycleConclusions and future research 22
    23. 23. Conclusion The research has demonstrated the value of the approach Case Study IT-CMF provides a holistic framework that organizations can use to assess their readiness to move to a cloud computing environment, while minimizing risk. Furthermore, IT-CMF specifies a systematic approach to Cloud implementation through an assessment and the creation of definitive and practical improvement roadmaps 23
    24. 24. Future ResearchIVI Strategy - Layered ApproachIs cloud computing appropriate for my business • Is public, private, community or hybrid the most appropriate to use • Should I be using NaaS, IaaS, PaaS, SaaS, BPaaS or XaaSHow is my business positioned to use cloud • Cloud Assessment – Assess your readiness to move to cloud – Assess how well you are managing the cloud environment if already migrated – The assessment can be tailored, based on what stage you are in your migrationHow do I objectively rate the Cloud Service Providers (CSP) • CSP Assessment • Ability to quickly rate how vendors compare • Can be easily customised to suit different business requirements and sectors 24
    25. 25. Further information Gerry Conway - gerard.conway@nuim.ie www.ivi.ie +353 1 708 6931 More Information G. Conway and E. Curry, Managing Cloud Computing: A Life Cycle Approach, in 2nd International Conference on Cloud Computing and Services Science (CLOSER 2012), 2012. M. A. Lindner, F. McDonald, G. Conway, and E. Curry, Understanding Cloud Requirements - A Supply Chain Life Cycle Approach, in Second International Conference on Cloud Computing, GRIDs, and Virtualization (Cloud Computing 2011), 2011, pp. 20-25.Funded by:Science Foundation Ireland (Grant SFI/08/CE11380)Enterprise Ireland (Grant CC/2009/0801) 25

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