cloud computing - isaca conference 2012


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cloud computing - isaca conference 2012

  1. 1. Cloud ComputingISACA Conference 2012Mariana Carroll ©2012 Deloitte. All rights reserved
  2. 2. Objectives • Technology trends of today • Cloud computing fundamentals • The stages of the cloud computing journey • Business and technology impact of cloud computing • Cloud computing services can create new opportunities for business and IT • Develop new ways of addressing the challenges and leveraging the opportunities presented by cloud computing1 ©2012 Deloitte. All rights reserved
  3. 3. Technology TrendsElevate IT for digital business
  4. 4. Tech Trends 2012 Insert video – see separate fileFor more information please visit: ©2012 Deloitte. All rights reserved
  5. 5. Bottom-line Post-digital Enterprise Cloud Computing combined with social computing, mobile technologies, and data analytics could play a prominent role in deepening customer relationships, increasing agility to achieve new market growth, and4 accelerating innovation. ©2012 Deloitte. All rights reserved
  6. 6. Cloud ComputingFundamentals
  7. 7. Cloud computing overview Cloud Computing presents a significant shift in the way businesses operate6 ©2012 Deloitte. All rights reserved
  8. 8. Cloud computing service sources: A variety of implementation models Cloud implementation models Other groupings of cloud offerings can be made, such as the distinction between public (or vendor), private, and hybrid clouds. Public Private Hybrid Services from vendors Computing architectures Cloud computing which can be accessed built, managed, and used environment in which an across the Internet using internally and using a organisation provides and systems in one or more shared services model with manages some resource data centers, shared variable usage of a in-house and has others among multiple customers, common pool of virtualized provided externally with varying degrees of computing resources data privacy control7 ©2012 Deloitte. All rights reserved
  9. 9. Cloud computing puts daily IT decision making in the hands of the end users Dramatic shift away from today’s top-down IT decision making Trends that point toward the adoption of Cloud Computing • Commoditisation of purely technology-related work/tasks; buying vs. building • Deepening relationship between technology and people • Business innovation is increasingly fueled by technology; faster networks • Cloud computing gives users on-demand access to large scale, elastic, shared computing capabilities Today’s software-heavy IT Tomorrow’s Cloud Company organisation8 ©2012 Deloitte. All rights reserved
  10. 10. But What Exactly is Cloud Computing, and Why is it Different? Cloud is… Provides almost immediate access to IT applications and services, platforms, or a …on-demand pool of hardware resources that can be allocated and provisioned on-demand …scalable Provides the ability to dynamically provision and de-provision , and automatically and elastic scale capacity up or down Vendor-provided cloud services are not licenses products or purchasable assets. …pay-as-you- Services are billed by user, quantity of resources consumed, or similar consumption- use based metric. Cloud is not… Cloud provides pooling of resources across massive infrastructure. Some services …simply advertised as “cloud” are just virtualization designed to support the traditional virtualization enterprise IT stack …just Service Oriented Architecture (SOA) is a set of design principles; cloud capabilities are applying SOA most powerful when their software and services are designed from the beginning using SOA principles Unlike traditional hosting cloud services do not dedicate hardware to a single …traditional customer; the advantages of agility, scalability, and cost are possible only through hosting resource pooling Cloud computing offers increased agility, faster time to market, lower capital costs, and the ability to easily scale up / down and reallocate resources9 ©2012 Deloitte. All rights reserved
  11. 11. Overview of the journey
  12. 12. What the journey to cloud computing means … • A reduction in… • In-house IT focus on commodity technologies • Annual IT spend • Capex tied up in noncore areas of the business • Data centers • Energy consumption and carbon footprint • An increase in… • Focus on core processes and technology Headquarters • Collaboration between company and its supply chain Regional office • Business analytics/product intelligence • Scalability and response to growth11 ©2012 Deloitte. All rights reserved
  13. 13. Strategic areas in the journey New approaches for architecture, solution delivery, life cycle Technology management, and IT service management People and Significant cultural change, unique people skills and capabilities organisation resulting in organisation redesign Finance, procurement, New spend models, changes to capex / opex, treatment, tax and legal and legal Governance and Adherence to internal and external compliance standards and compliance governance models Risk, privacy, and Alignment with enterprise risk and governance strategy security management12 ©2012 Deloitte. All rights reserved
  14. 14. Market perspectivesNow and next
  15. 15. Some stats… • Global cloud spending is forecast to grow 22% annually to US$241 billion by 2020 • More and more organisations evaluate cloud options first before making any new IT investments • Organisations are embracing cloud to reduce the complexity and costs of traditional IT • Organisations are not only relying on cloud to enhance internal efficiencies, but also to target more strategic business capabilities • Major industries adopting cloud includes communications, education & finance and IT & Telecom’s “The full business potential of cloud computing has yet to be realised or even understood by most enterprise organisations” Source: IBM Institute for Business Value: The power of cloud – Driving business model innovation14 ©2012 Deloitte. All rights reserved
  16. 16. Some stats…15 ©2012 Deloitte. All rights reserved
  17. 17. Some stats…16 ©2012 Deloitte. All rights reserved
  18. 18. Some stats…17 ©2012 Deloitte. All rights reserved
  19. 19. What are other large companies doing at this time? • Moving development, testing, and integration of major systems to cloud infrastructure as a service • For smaller functions and services, deploying cloud systems to replace on-site major system implementations of older “stand-alone” systems • “Decoupling” the major systems stacks using a “best-of-breed” approach, taking into account new software now available on a SaaS subscription delivery model • Consolidating major application platforms onto single cloud-based infrastructures, while removing “edge” services to other cloud vendors when possible • Understanding their major system roadmaps, working with vendors to influence the product direction to map to their customer priorities • Taking a hard look at their end-to-end IT architectures, to determine their long-range plans for a more fully “cloud-enabled” business architecture and customer services Many enterprises with large systems are taking the first steps to make their cloud plans “actionable,” to position themselves for strategic advantage18 ©2012 Deloitte. All rights reserved
  20. 20. How do we expect the cloud market to evolve?High IT services will migrate to different cloud computing models at different times, based on fit, the maturity of service providers, and availability of suitable technology Collaboration (Sharepoint) SaaS Value from migration to cloud Data Storage Marketing Mgmt PaaS IaaS SaaS Customer Service PaaS CRM and SFA HR/Talent SaaS (GQP, Oracle /Recruitment Quoting) SaaS Analytics SaaS (Hyperion, PaaS OBIEE, BI) PaaS SaaS Email and Website & Communication Content SaaS Management PaaS Desktop / Custom Applications Productivity Development (Billing, Suite SaaS and testing Customer Portals) PaaS PaaS IaaS Finance/ Public Core ERP Accounting SaaS (OM, SC) SaaS Private Business PaaS Maturity Early Adoption Transformation HybridLow 19 ©2012 Deloitte. All rights reserved Low Ease of migration/ adoption on cloud High
  21. 21. New OpportunitiesFor Business and IT
  22. 22. Cloud Opportunities • Promote business value to drive cloud adoption • How is value created? • Understand the cloud ecosystem and business models • How can I leverage cloud to improve business processes, asset and organisational capabilities? • Recognise the wide-ranging internal changes required • Is it possible to change what we currently do? • Set principles and stay flexible • What are the key principles to enable growth, enhance operating margin and efficiency and manage expectations?21 ©2012 Deloitte. All rights reserved
  23. 23. Example: Global Large Regional Bank Challenges • Fragmented sales processes • Multiple customer data repositories • Inconsistent goals • Highly variable customer experiences Cloud Rather making changes in any one of these areas, the bank turned to a Solution cloud solution, a multi-release CRM program to +1500 users across the organisation (retail banking, wealth management, insurance & mortgage) Summary of Enabled: Results • accelerated on-demand and data integration (providing integrated visibility to financial accounts, real-time marketing, adjustment and scoring • Increased consistency (data, sales and view of customer)22 ©2012 Deloitte. All rights reserved
  24. 24. Promoting business value to drive cloud adoption Value #1: Growth and Profitability • ELEVATED GROWTH Support and facilitate growth through higher sales traffic, higher unit volumes, increased average order size, increased purchase frequency, faster adoption rates for new product launches (expansion of business offerings), market share gains, and new partnerships, markets or segments. • IMPROVE MARKETABILITY An improved image / reputation helps to attract and retain customers leading to reduced costs of acquiring new customers, earning higher ROI, increasing sales through cost effective customer referrals and recommendations, and even lower price sensitivity to improve profit margins. Value #2: Market Share • EXPANDED MARKET SHARE Add and support more customers by establishing market leadership with higher brand value and recognition, converting more customers to brand advocates, resulting in higher net promoter scores, and a larger share of their wallet earned across multiple sales channels and touch points.23 ©2012 Deloitte. All rights reserved
  25. 25. Promoting business value to drive cloud adoption Value #3: Productivity and Differentiation • ENHANCED PRODUCTIVITY Organisations can better concentrate on core business competencies through greater agility and standardisation leading to more efficient sales operations, effective processes and enabling technology that improve sales conversions rates and reduce the level of efforts required on sales prospects and leads. • INCREASED DIFFERENTIATION Cloud computing enables access to the latest technology and industry learning in undifferentiated areas of the business. Remain competitive advantage and increase differentiation by creating more lock-in with new customers and building entry barriers for new competitors. Value #4: Sustainability • PROLONGED SUSTAINABILITY Create a sustainable operating margin and retain and grow customer interaction efficiency leading to customers who are less likely to leave, stay with the company longer, demonstrate higher loyalty and satisfaction levels, and are more likely to participate in cross-sell and up-sell opportunities.24 ©2012 Deloitte. All rights reserved
  26. 26. Addressing challenges &leveraging opportunitiesWhat’s next
  27. 27. Key operational and governance issues Data Controls Who owns the data? How is it be used? Are controls in place? Security and How is security achieved? What is the level of privacy protection? Privacy Audit and Are there risk management controls to applications and data? Assurance Tax and Legal Can you meet needs for legal compliance and tax issues? Disaster Are data backup, retention, and disaster recovery practices sufficient? Recovery Vendor Is the vendor limiting interoperability or access to your data? “Lock-In” IT Operations What IT services and applications are best suited for the cloud? IT Readiness Are internal IT architecture and organisation structures “ready”? Alignment with Enterprise Risk and Governance strategy will help organisations address the operational hurdles to cloud adoption26 ©2012 Deloitte. All rights reserved
  28. 28. Summary & Close
  29. 29. Cloud is here to stay… Education is key! It is important to scale up on our knowledge of cloud computing to leveraging the multitude of opportunities while addressing the challenges.28 ©2012 Deloitte. All rights reserved
  30. 30. Contact information For additional information, please contact: Dr. Mariana Carroll Leader - Cloud Computing Centre of Excellence Risk Advisory | Deloitte & Touché Mobile: +27 (0)83 333 5536 ©2012 Deloitte. All rights reserved
  31. 31. Copyright © 2011 Deloitte Development LLC. All rights reserved.Member of Deloitte Touche Tohmatsu Limited