Picture and possibility of systemrealized by cloud computing-- Anatomy of Windows Azure and more ITLeaders 2010.5 Satoe Kuwahara Sapporo Sparkle k.k.
Picture and possibility of system realized by cloud computing Cloud computing now becomes increasingly popular and widespread, the major topic of dis- cussion about cloud computing becomes from "what is the cloud?" to "how and where to use the cloud?". What does the cloud change? What does the cloud do and offer us? We look at the cloud from the viewpoint of enterprise system. General idea of the cloud computing from the viewpoint of "IT investigation" is actually very attrac- tive. Users are able to use the resources and services without owing IT resource, and also to ad- just the range of use. In addition to this, users can realize a system in the short term and make efficient use of the system. Above all, the cloud computing is extremely small in cost. It cuts the development cost and time drastically, and reduces the running cost. If a company builds a new enterprise system without reference to the conventional system and subcontractor, it will apply the cloud computing without any question. We actually have a lot of to do for the system if finance permits. Actually, many companies face the structural problem of IT investment form administrative and competitive perspective. They spent huge amount of money on building backbone system by im- plementing ERP etc. and dont have much investment reserve. The cost of operation and mainte- nance for the conventional system, which is quite expensive, weighs on new investment volume. If a company want to build a strategic system that makes great contribution to a company, the budget that a company can afford to spend is limited. Not surprisingly, investment for IT is in the severe environment. Success and failure of IT application determines the competitiveness of a company, and the pos- sibility of IT is increasing, however not many companies can afford to invest in IT. Under this cir- cumstances, the cloud computing appeared. The approach and speed as well as its cost of de- velopment, operation and maintenance is totally different than the conventional system. The cloud will change the present situation, and can become a method to accelerate IT application. There is a scenario that realizes a system for business support and customer service by using the cloud computing, and transfers the existing backbone system to a new environment using the cloud and virtual technology. What is could computing for? Solve the technological problems. Companies now can apply cloud computing if they want to. When companies plan to create over- all picture of future system or build a system from scratch, the companies would rather look at the possibility of using cloud, and should prepare the approach and system to make the most of the value of cloud computing. However, we dont have much time to prepare for this. The reality is much more urgent and immediate. Most front systems are directly connected to customer contact and business. The objectives of systematization has "moved to forefront" of business. Closed system is now "facing outward". The system that is directly linked to business and is facing outward has specific features and diffi- culty. Operating condition of the system is fluctuated by the behavior of business of customer. Operation load is focused in one point, and the system is expanded or decrease in size according to the growth or service of business. Application of enterprise system not only handles open and static information, but also handles dynamic information such as a recommendation and campaign for regular customer. The number of interactive application using various information is increasing. Infrastructure and security having flexibility to meet the needs of expansion and diversification, database having the ability to handle huge amount of data, application that connects the outside of firewall and backbone system... and handling of multiple terminals including mobile phone. 2 Sapporo Sparkle k.k.
Picture and possibility of system realized by cloud computing It is quite difficult to solve these technical issues by using existing environment. However, it is just not realistic to solve them by the individual project. If you put things done, quality of system may be decreased and development cost may be increased. Considering these issues from the perspective of development speed and technological evolution, it is uncertain that each company tries to solve these issues and accomplish objectives. In view of cost and technology, it is very difficult and has limit that one user companys effort alone. For this reason, many people expect cloud computing. Needless to say, cloud is internet-based computing whereby shared applications are provided to computer or another devices. What kind of technology does the applications on internet need? What possibility does cloud have? It builds platforms for applications on internet and provides them as a service. The technology required for system development and operation is obtained easily and by using cloud computing. So company can concentrate on the application to be developed. This could be adaptable fighting potential in systematization. It is important to evaluate the technology of platform appropriately for using cloud computing. Or- ganize the system features to be realized, and consider what kind of platform is really required. By doing this, we will know whether or not cloud computing is re- On-premise Cloud quired, and the technolo- a. Accounting system with cloud computing gy required. However it Accounting system (ERP) is necessary to evaluate Accounting AP Journalizing etc. integration relationship Sales system (ERP) etc. Data integration and compatibility with Automatic journalizing Business plan and platform strategy of IT performance Business plan application if you want Performance evaluation AP Performance etc. use IaaS(for infrastruc- ture) or SaaS(for applica- b. On-premise sales system tion). Sales system (ERP) In-house AP Inventory Deciding where to use Order confirmation etc. Product catalogue (SaaS) cloud computing is to Confirmed order AP Product etc. examine how well it fits reservation Web order acceptance Customer in with their business Service system bus AP Performance Inquiry, order entry model and strategy. etc. Mash up Some companies apply Reference information External, cost comparison site etc cloud computing as a method for system devel- Figure 1 opment. However its Concept for applying cloud computing. The figure shows an example of us- scope and configuration ing cloud computing in a backbone system. (a: cloud computing applied to to be used is varied from the accounting system, b: cloud computing applied to the web order system the motivation of the for customer. sales system is built and operated by the company) companies(figure 1). Internet + information + devices Using the strength of cloud computing With the exception of new project or some special cases, systems that will apply to cloud compu- ting have a relationship with backbone system. If company wants to use cloud for their backbone system, it is necessary to connect their existing system and on-premise application and cloud computing seamlessly. Multiple systems will be involved to draw business process from the business perspective. In or- 3 Sapporo Sparkle k.k.
Picture and possibility of system realized by cloud computing der to the application meeting the requirements of user, it is essential to make business process consistent going over the boundary of the physical unit and location of system. This is the goal of enterprise system today. If a company create its own system using cloud computing, the boundary between systems be- comes higher. Company should decide to use cloud computing as the possibility of optical meth- od or technology for each system. By the way, in order to study how does a company use cloud computing and, what can cloud compu- ting accomplish for the company, it is good idea to examine system from the a. retailer’s MD system viewpoint of information. Special sale plan system Retailing system Product information and Information is usually located where ap- MD system Goods business meeting system propriate for site of occurrence and its Buyer AP selection AP MD, performance ownership. It is natural that the infor- AP Master, proposal mation related backbone system is on companys system. However, supply Search Shared site of product chains tracking information used by mul- information Product tiple companies should be kept on web. External system Within same group, sales situation such Supplier system Detailed information as overseas sales should be accessible Person in charge of supplier of product from each overseas subsidiary. Picture Spec Proposed product etc. Previously, location of information is de- b. Process from order acceptance to shipment cided according to system that process- Web order acceptance es and stores data. All data was gath- Process Order confirmed ered into the system in company, and integration ERP then the data was redistributed in order Order for information sharing. In this approach, acceptance ↓ Shipping order there are many waste in information dis- Reservation ↓ Shipment confirmed tribution, and it is difficult to realize real- Shipping order ERP time information processing. Information ↓ Shipment acceptance Tracking Site for logistics is sometime destroyed broken of im- inspection and sales company ・ ERP paired in the process of processing and ・ ・ Tracking distribution. Tracking performance Create large-scale database on web, Person in charge of Logistics Customer and share information with more people company company in less time. This is a typical feature of Figure 2 cloud computing. However, this is, seamless linkage between the on-premise applications and "internet + information", the value of in- processes and cloud computing(a: composite application ternet. There is a case that specific in- using service bus, b: process integration and data linkage). formation of the company or customer Integration technology allows us to draw business process may be checked through the internet. from the viewpoint of business without regard to system So, applying the search technology for location, and to combine systems required. specific target is beneficial(figure 2). Platform of cloud computing realizes the effective utilization of "internet + information". If there is a need to check RFID and understand the distribution status and huge amount of data generated by RFID, you can store this data into a database on web and share it in real-time. In order to re- alize this, we need large-sized system, however if we use the technology of cloud computing, we will be able to realize it quite easily. Because system using cloud doesnt need to exchange data with user companies, it is simple and failure-resistant. Cloud computing can be used for various purpose. It can be used in management of traceability, joint development of the companies, development of global demand chain etc. We are able to combine these and various devices. We can understand the movement of goods and money in 4 Sapporo Sparkle k.k.
Picture and possibility of system realized by cloud computing real-time by utilizing the communication between the mobile terminal and the device in base sta- tion. We share the information through the devices. "Internet + information + devices", this is the technology that makes the most of internet, connect to databases. Realize the specific applications by combining SaaS Connecting to public cloud service is another possibility to use cloud computing effectively. Con- nect the information opened to the public and enterprise system. In United State, there is a site called "Data.gov" that opens the information of government organizations to the public, and more than 1.4 million information is disclosed and provided to citizens. Combine the information of government organizations, market trend, currency exchange, the ex- ternal information of the company and the information of the company. It can be connected to the social infrastructure such as medical care and education. The enterprise system is now moving from the closed system to more open. System will work and connect together with many other systems in the environment of cloud computing. This is truly significant that we can have such system. Enterprise system can possibly utilize SaaS. One of the attractiveness of SaaS is that user can use it in small unit. If you find a application with great potential, you can just use it. SaaS offers loads of creative services by utilizing the features of internet, and user sometime finds the unex- pected way of using the application. User not only can use the application of SaaS alone, but also use the combination of applications. User can create a original application by combining services that have specific function such as map, location information etc. Existing system can also provide the original function meeting the requirements of customer by modifying the screen display created with SaaS (figure 3). Message etc. Location info E-manual Patrol Photo site Map info CRM CRM GPS Contact Field center service Request GPS Customer Quotation etc. Provide instruction ID Customer for service Composite contract Oh my goodness! application system Please come quick Customer Person in charge Situation of Situation of person of service Screen customer in charge of service Correspondence CRM Customer To location Assignment information Conversation Conversation Quick Work report CTI response Inquiry from family Later inquiry Operator Figure 3 Customer service using cloud computing This is an example of process that a contact center receives event information from customer, and sends field service engineer to the site immediately. It is possible to build an intuitive structure appropriate for "human behavior" in a short time and at low cost by combining cloud service, and to grow continuously (click screen to enlarge). 5 Sapporo Sparkle k.k.
Picture and possibility of system realized by cloud computing The real significance of SaaS is the expandability and growth potential created by the combina- tion of applications. Value of applications is increased and users own unique world is built by combining SaaS applications. Each service of SaaS is not complicated nor fancy. Therefore, it is important to consider what function is required for the system you are planning to build. Exercising your imagination is very important and required in building cloud computing. In addition to this, the integration technology such as SOA and its platform is also required to develop cloud computing service. Many SaaS applications have some specialties such as having high arithmetic processing perfor- mance for designing and demand forecasting. So use SaaS application for the function that re- quires special knowledge and specific logic as well as basic information. However, you can also use SaaS application for the function that requires standardization and commonization such as for the conversion to common code. Making common usage part SaaS or on-demand, users can maintain their system with the cycle that is different from the way usual- ly users use. SaaS can be a method to obtain better knowledge and improve the quality of system develop- ment. SaaS allows us to gain advanced and specialized knowledge and technology. In other words, users can use knowledge and wisdom around the world through cloud computing. Applying cloud computing brings new possibility to enterprise system. However, it is to be noted that customers have somehow experienced cloud computing through public cloud service. System toward the outside, standard is decided by the customer perspective. The customers who have already experienced cloud computing expect to company to provide same quality of services. Using pictures and moving image is already ubiquitous among enterprise application, and the quality of system on the net increases drastically. On the other hand, the demands of customer have increased. We have to deal with this issue soon, and improve system based on the feedback of customer. Wide spread of cloud computing is the beginning of new challenge for enterprise system. 6 Sapporo Sparkle k.k.
Publisher Sapporo Sparkle k.k.Date of Issue March 31, 2011No. 2011033101