An Introduction to Cloud Computing - Part1: What is Cloud Computing?


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This presentation provides an introduction to the area of cloud computing. This presentation is split into three sections, of which this is the first part. This first part provides a definition of what cloud computing actually is and why today's companies are starting to take it very seriously. If you download the presentation you will find that each slide has notes to help you get a better understanding of the content. Updated April 2013

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  • Hello and welcome to this video presentation hosted by GXS, my name is Mark Morley, Industry Marketing Director.Over the next few minutes I would like to take you through a short presentation which introduces some of the concepts behind cloud computing. This presentation is the first of a three part video presentation and discusses some of the reasons why many companies are moving to the cloud. This particular session helps to provide a better understanding of what cloud computing actually is and how it has evolved over the past few years.
  • Now many of today’s CIOs do not believe that cloud computing will be around for very long, or that it won’t add any value to their IT infrastructures, they think that cloud computing is just hype. However they are wrong, cloud computing environments are very real and they are becoming very disruptive, in a positive way, to how IT and B2B infrastructures are being deployed across the extended enterprise.Companies can experience significant productivity gains from external trading partners as they can all share and access the same applications and resources, thus bringing a single view of business transactions across your extended enterpriseThe cloud helps to address many B2B related challenges and allows ROI on newly deployed IT or B2B environments to be realised in a much shorter period of time.
  • Over the last 24 months, many CIOs have dismissed the cloud as being hype, when in fact it is fundamentally changing the way in which companies manage their IT and B2B infrastructures.In 2008 the premium luxury car manufacturer Jaguar Land Rover were divested from their parent company Ford. JLR were faced with the challenge of separating and establishing their own IT and B2B infrastructures as quickly as possible. Their CIO at the time decided that the separation from Ford would be a good opportunity to move as many business applications as possible to the cloud. His forward thinking vision has led to JLR moving 18Tb of emails from an old Microsoft exchange server to a Google email hosted service. In addition, JLR decided to move many other services to a cloud based environment, including the management of their b2b infrastructure which is now running via a GXS Managed Services environment.
  • To support the expected growth in cloud computing adoption by both consumers and enterprises around the world, many leading software and IT companies are starting to build huge data centres around the world. Google investing nearly a billion dollars in its data centre infrastructure in the first quarter of 2011 alone, Microsoft investing half a billion in their European data centre in Dublin and Apple investing a billion dollars in a new data centre in North Carolina in the U.S. If rumours are to be believed then Apple built this particular data centre 50% bigger than it needed to be just to show its competitors that it has serious intentions of being one of the largest providers of cloud based environments in the world.
  • The area of business integration has been constantly evolving over the past twenty years. Changing economic conditions combined with a need to globalise business operations has changed the way in which companies both deploy IT infrastructures and integrate to back office business systems.In the mid-90s many business applications were hosted on a central mainframe computer where users got access to applications via the infamous green screen VDU terminals. As business applications became more complex over the years, there was a need to improve the way in which applications were integrated and delivered to the end user. In the late 1990s many application service providers started to appear, these were third party vendors who offered fully hosted applications. ASP environments then migrated to Software as a Service environments and this provided the first cornerstone of the three layer cloud computing environments that we know today. Cloud computing environments started to go mainstream in 2010 and according to the latest analyst studies they are going to be around for many years to come. The reason why cloud computing has become so popular is partly due to the underlying technology being used namely the ability to run multi-tenanted software environments and the virtualised nature of the actual server environments.
  • Cloud computing has become known by many different definitions, Platform as a service, integration as a service, computing as a service, hardware as a service and even everything as a service. Now even though today’s cloud environments can contain many of these components, analyst firms around the world have been trying to provide a definition of cloud computing that encompasses all the functionality that cloud computing environments offer today.
  • Now I expect you could ask ten different people to provide a definition of what they think cloud computing is and I expect you would get ten completely different answers. So why would analyst firms be any different. Numerous definitions have been released over the last few years, here are just three of them.Even though technically these all describe a cloud environment very well, I believe that the quote from Forrester provides one of the most succinct definitions available today, namelyA standardised IT capability (services, software or infrastructure) delivered via internet technologies in a pay per use, self service way.
  • Now rather than try to describe the cloud by way of a definition that no one can seem to agree on, why not define the cloud by its characteristics?For example, a cloud environment needs to be Dynamic – one of the keys to cloud computing is being able to size the on-demand provisioningMassively Scalable – the service must either expand or contract depending on the changing needs of your businessMulti-tenant – cloud computing by its very nature delivers shared services to a global group of users
  • In addition cloud based environments offerSelf-service delivery of applications and content - so as a user, you can use the service as you require itPer-usage based pricing model – which means that you should only ever pay for the amount of service you actually consume. This is extremely useful if you are working on a project by project basis, you can effectively use the service as and when you actually need to use it.IP based architecture – cloud architectures are based on virtualised, internet based technologies, this alone has provided one of the key reasons why cloud computing environments have become so popular and has changed the way in which IT infrastructures are deployed.
  • Now over the last couple of years, there have been a number of ways in which cloud environments have been deployed, each having differing levels of security applied to them and each offering different services to the users who are connected to these particular cloud environments.Public Cloud – Available to the general public or large industry group and is owned by an organisation selling cloud servicesCommunity Cloud – Shared by several organisations and supports a specific community that has shared concernsPrivate Cloud – Operated solely for an organisation or companyHybrid Cloud – Combination of two of the above, they remain unique entities but are bound together by standardised technologies
  • Moving your IT or B2B infrastructure to the cloud does not happen over night and companies will make the move for various reasons.For example rather than moving an entire company to a cloud based infrastructure, the CIO might make the decision to move on a department by department basis. May be deploying a cloud based HR or CRM service first to see how the environment operates and whether internal business processes need to be extensively modified in anyway.In the second example a company may be looking to onboard new trading partners in a remote location or emerging market or alternatively they may be looking to establish a manufacturing or office facility in a new country and they need to get them online as soon as possible. The global nature of cloud based environments allows companies to scale up there businesses with ease. I will talk about this in more detail later.Finally, a CIO may take the decision to place an entire business process into the cloud. For example a reverse logistics process to improve the way in which customers return faulty goods to a repair shop or retailer.The way in which cloud environments are deployed is really down to the individual company concerned, there is no right or wrong way of doing this but it is possible to learn from companies such as GXS who have years of experience of deploying integration cloud platforms for many companies around the world.
  • An Introduction to Cloud Computing - Part1: What is Cloud Computing?

    1. 1. An Introduction to Cloud Computing -Part 1 – What is Cloud Computing?Mark Morley, Industry Marketing Director
    2. 2. Slide 2 | © 2013 GXS, Inc.B2B Outlook – Getting Very CloudyThe Cloud is not hype, it is real and here today!Productivity gains lie outside the enterpriseB2B challenges and the hunt for ROISlide 2 | © 2013 GXS, Inc.
    3. 3. Slide 3 | © 2013 GXS, Inc.CIOs are Embracing Cloud Computing• Following divestiture from Ford, JLRhad 18Tb of emails to extract fromFord’s Microsoft Exchange Server• JLR’s CIO saw this as an opportunityto do things differently• Adoption of cloud based applicationshas helped to simplify their ICT/B2Binfrastructure"The strategy will be one ofsimplification, standardisationand modernisation. Where I candeem services and technologyas being commodity I will seekto externalise, outsource orplace them in the cloud."Jeremy Vincent, CIO JLRLink to Article
    4. 4. Slide 4 | © 2013 GXS, Inc.Significant Investment in CloudInfrastructuresGoogle invests $850M in its datacentre infrastructure in Q111Apple invests $1Billion inNorth Carolina data centreSlide 4 | © 2013 GXS, Inc.Microsoft invests $500M inDublin based data centre
    5. 5. Slide 5 | © 2013 GXS, Inc.Cloud ComputingSaaSASPMainframeEnterpriseApplicationintegrationCross-EnterpriseIntegrationEvolution of Business Integration1995Customer CentricStrategic/Competitive2000Organisation CriticalDepartment Specific201520102005Supply ChainVisibilityWeb-BasedPortalsUnisysIntegrationBusinessIntelligenceSecure WebServicesRFID andEPCSales ForceAutomationEnterpriseResource PlanningBusinessProcess MgmtCustomer DataIntegrationEnterpriseCommunityManagementBusinessActivityMonitoringSense andRespond
    6. 6. Slide 6 | © 2013 GXS, Inc.What is a Cloud?Software-as-a-ServiceSaaSIntegration-as-a-ServiceIaaSData-as-a-ServiceDaaSInfrastructure-as-a-ServiceEverything-as-a-ServiceComputing-as-a-ServiceSecurity-as-a-ServiceHardware-as-a-ServiceDatabase-as-a-ServiceAnything-as-a-ServicePlatform-as-a-ServiceVoice-as-a-ServiceHaaSXaaSRuby Cloud Platform-as-a-ServiceManaged Video-as-a-ServiceSlide 6 | © 2013 GXS, Inc.
    7. 7. Slide 7 | © 2013 GXS, Inc.Definition of Cloud ComputingA standardised IT capability (services, software or infrastructure)delivered via internet technologies in a pay-per-use, self-service wayA style of computing where massively scalable IT-related capabilitiesare provided “as a service” using internet technologies to multipleexternal customersCloud services are shared services, under virtualised management,accessible over the internet
    8. 8. Slide 8 | © 2013 GXS, Inc.Characteristics of a Cloud Environment• Dynamic- One of the keys tocloud computing is on-demandprovisioning• Massively scalable- The servicemust react immediately to yourneeds• Multi-tenant- Cloudcomputing, by itsnature, delivers shared services
    9. 9. Slide 9 | © 2013 GXS, Inc.Characteristics of a Cloud Environment• Self-service - As a user, you canuse the service as you require• Per-usage based pricing model -You should only ever pay for theamount of service you consume• IP-based architecture - Cloudarchitectures are based onvirtualised, internet basedtechnologies
    10. 10. Slide 10 | © 2013 GXS, Inc.Types of Cloud• Public Cloud – Available to the generalpublic or large industry group and is ownedby an organisation selling cloud services• Community Cloud – Shared by severalorganisations and supports a specificcommunity that has shared concerns• Private Cloud – Operated solely for anorganisation or company• Hybrid Cloud – Combination of two of theabove, they remain unique entities but arebound together by standardisedtechnologies
    11. 11. Slide 11 | © 2013 GXS, Inc.Migrating Your Business to the CloudBy GeographyBy ApplicationHR CRMERPSCMBy ProcessStrategyPlanningTestingImplementationMaintenance
    12. 12. Slide 12 | © 2013 GXS, Inc.Thank YouPhonesUS: 1-800-334-2255, option 3EMEA: +44 (0) 1932 776047GXS web sitesUS: www.gxs.comEMEA: