Future of Cloud Computing:
Outlook for the Cloud Industry

BEXCO, Busan, Korea

Michael Hugos
CENTER FOR SYSTEMS INNOVATIO...
PART 1:

Business Needs the Cloud

© 2013, Michael Hugos
Center for Systems Innovation [c4si]

2

Cloud Expo Korea 2013
BE...
Business Happens on Global Networks

Courtesy NASA Earth Observatory http://earthobservatory.nasa.gov/

3rd Industrial Rev...
Global Networks Demand Agility
•

Agility

Efficiency

•

Efficiency requires predictability and stability – often absent ...
Cloud Computing Enables Agility
• Fixed cost business model
focused on efficiency is risky

Old “Cap Ex” ICT Model

• Pay-...
Hybrid ICT Architecture for Agility
• Connect company systems (ERP, CRM, SCM, HR) with variable cost and scalable
cloud pl...
Connecting to Global Cloud Networks
Smart Devices

APIs
Orchestration

Hybrid Cloud
Big Data
Data Center
Layer

Social Med...
Use Big Data to Drive Business Agility
Cloud + Apps + Social Media + Smart Devices = BIG DATA… Now what???

McKinsey – “Co...
Navigating the Ocean of Big Data
Real-time big data offers new
opportunities to those who

Multi-Dimensional
Analysis and ...
Cloud Apps for Watching and Responding
Same technology
monitors both ICT and
business operations
ICT operations and
busine...
PART 2:

Growth of Cloud Computing

© 2013, Michael Hugos
Center for Systems Innovation [c4si]

11

Cloud Expo Korea 2013
...
Cloud Combines Technologies

• Software-as-aService (SaaS)

Server Virtualization

Open Source
Software

Evolving
Cloud

•...
Cloud and Mobility Show Strong Growth
Latin America
Central & Eastern
Europe
Middle East & Africa
Western Europe
North Ame...
Cloud + Agility = Profits
•

Big change in telecom industry as land line phones disappear – switch to
delivery of cloud se...
Think Big – Start Small – Deliver Quickly!
“New creation is often made in the border of combining sectors and industries.”...
Massively Multiplayer Online Games
• Thousands of players work
together on complex projects
• 3D virtual worlds and Heads-...
Massively Multiplayer Online Businesses
• Google Earth and Google Maps
provide 3D worlds
• App provides HUD display of
rea...
Learn More
Elegant solutions to
complex problems.
Briefing management
in strategies for
agility; mentoring
teams in agile
...
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The Future of Cloud Computing - Outlook and Effects

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Cloud is the future of computing. Cloud computing is to this century as steel was to the last century. It is the raw material from which we will build our economy and products. It enables the business agility needed to thrive in the real-time global economy.

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The Future of Cloud Computing - Outlook and Effects

  1. 1. Future of Cloud Computing: Outlook for the Cloud Industry BEXCO, Busan, Korea Michael Hugos CENTER FOR SYSTEMS INNOVATION [c4si] © 2013, Michael Hugos Center for Systems Innovation [c4si] 1 Cloud Expo Korea 2013 BEXCO, Busan, Korea
  2. 2. PART 1: Business Needs the Cloud © 2013, Michael Hugos Center for Systems Innovation [c4si] 2 Cloud Expo Korea 2013 BEXCO, Busan, Korea
  3. 3. Business Happens on Global Networks Courtesy NASA Earth Observatory http://earthobservatory.nasa.gov/ 3rd Industrial Revolution – powered by computers and networks (cloud computing) Race Against the Machine - http://ebusiness.mit.edu/research/Briefs/Brynjolfsson_McAfee_Race_Against_the_Machine.pdf © 2013, Michael Hugos Center for Systems Innovation [c4si] 3 Cloud Expo Korea 2013 BEXCO, Busan, Korea
  4. 4. Global Networks Demand Agility • Agility Efficiency • Efficiency requires predictability and stability – often absent now • Agility can differentiate products and avoid “grim race to the bottom” • Example of evolving mobile phone… Efficiency vs. Agility • Is it a phone any more, or an evolving ecosystem of agile apps? • Efficiency alone will kill your company! © 2013, Michael Hugos Center for Systems Innovation [c4si] 4 Cloud Expo Korea 2013 BEXCO, Busan, Korea
  5. 5. Cloud Computing Enables Agility • Fixed cost business model focused on efficiency is risky Old “Cap Ex” ICT Model • Pay-as-you-go cloud cost model removes need for risky Cap Ex B Fixed Cost of Capacity Forecast demand A Actual demand New “Op Ex” ICT Model A = Over capacity B = Under capacity Do not forecast demand… • Variable cost business model focused on agility is the future Just meet demand as it occurs • Biggest benefit of cloud computing is agility! © 2013, Michael Hugos Center for Systems Innovation [c4si] 5 Cloud Expo Korea 2013 BEXCO, Busan, Korea
  6. 6. Hybrid ICT Architecture for Agility • Connect company systems (ERP, CRM, SCM, HR) with variable cost and scalable cloud platforms, SaaS apps and social media • Need orchestration layer between in-house and cloud-based applications and technology  Manage data reformatting, security and APIs (application program interfaces)  Monitor performance and response times of in-house and cloud apps  Secure and scalable connections with selected cloud service providers to respond quickly as needs arise • Create customer facing apps using social media and smart devices – go where your customers are!!! © 2013, Michael Hugos Center for Systems Innovation [c4si] 6 Cloud Expo Korea 2013 BEXCO, Busan, Korea
  7. 7. Connecting to Global Cloud Networks Smart Devices APIs Orchestration Hybrid Cloud Big Data Data Center Layer Social Media © 2013, Michael Hugos Center for Systems Innovation [c4si] 7 Cloud Expo Korea 2013 BEXCO, Busan, Korea
  8. 8. Use Big Data to Drive Business Agility Cloud + Apps + Social Media + Smart Devices = BIG DATA… Now what??? McKinsey – “Companies that figure this out report higher earnings and higher engagement with customers” How Social Technologies are Extending the Enterprise, 2011 (http://www.mckinsey.com/insights/high_tech_telecoms_internet/how_social_technologies_are_extending_the_organization) © 2013, Michael Hugos Center for Systems Innovation [c4si] 8 Cloud Expo Korea 2013 BEXCO, Busan, Korea
  9. 9. Navigating the Ocean of Big Data Real-time big data offers new opportunities to those who Multi-Dimensional Analysis and Simulation see trends and respond quickly - AGILITY In - Memory Engine BI Platform Real-Time Big Data (cloud-based) Manufacturing Financial Markets DC STORE Inventory © 2013, Michael Hugos Center for Systems Innovation [c4si] E Customers Demand 9 Cloud Expo Korea 2013 BEXCO, Busan, Korea
  10. 10. Cloud Apps for Watching and Responding Same technology monitors both ICT and business operations ICT operations and business operations become agile Credit card authorizations Overlay credit card authorizations and blocked traffic to spot anomalies (Courtesty www.Circonus.com) © 2013, Michael Hugos Center for Systems Innovation [c4si] 10 Cloud Expo Korea 2013 BEXCO, Busan, Korea
  11. 11. PART 2: Growth of Cloud Computing © 2013, Michael Hugos Center for Systems Innovation [c4si] 11 Cloud Expo Korea 2013 BEXCO, Busan, Korea
  12. 12. Cloud Combines Technologies • Software-as-aService (SaaS) Server Virtualization Open Source Software Evolving Cloud • Platform-as-aService (PaaS) • Infrastructure-as-aSerivce (IaaS) Web 2.0 / SaaS Apps Wireless Broadband 2G, 3G, 4G… Web Services / APIs Cloud is created from endless combinations of rapidly evolving technology © 2013, Michael Hugos Center for Systems Innovation [c4si] 12 Cloud Expo Korea 2013 BEXCO, Busan, Korea
  13. 13. Cloud and Mobility Show Strong Growth Latin America Central & Eastern Europe Middle East & Africa Western Europe North America Asia Pacific Source: Cisco VNI Mobile Forecast, 2013 (http://www.cisco.com/en/US/solutions/colla teral/ns341/ns525/ns537/ns705/ns827/white _paper_c11-520862.pdf) • Delivery of data, voice and video on demand to smartphones, tablets, laptops etc. • Mobile traffic is cloud-based: 74% in 2012; 84% by 2017 • Trend is clear, where customers go, business will follow – AGILITY! © 2013, Michael Hugos Center for Systems Innovation [c4si] 13 Cloud Expo Korea 2013 BEXCO, Busan, Korea
  14. 14. Cloud + Agility = Profits • Big change in telecom industry as land line phones disappear – switch to delivery of cloud services, big data and SaaS apps • Delivery of telecom / cloud computing / ICT services through single provider utilities similar to electric power utilities – 3rd Industrial Revolution • Mobile apps and social media provide real-time connections with customers and suppliers – agile response to change • Agility trumps efficiency in real-time economy • “Whoever tries the most things wins.” ? © 2013, Michael Hugos Center for Systems Innovation [c4si] 14 Cloud Expo Korea 2013 BEXCO, Busan, Korea
  15. 15. Think Big – Start Small – Deliver Quickly! “New creation is often made in the border of combining sectors and industries.” President Park Geun-hye, Korea “Do what you can, with what you have, where you are.” President Teddy Roosevelt, United States AGILE DEVELOPMENT • Use cloud, apps, smart devices • Pay-as-you-go, “Op Ex” • Agility means simple things done well, not complex things done fast Cloud • 30 – 60 – 90 day cycles • Try many things, follow success, abandon failure SaaS Apps Agile development platform for creative economy © 2013, Michael Hugos Center for Systems Innovation [c4si] 15 Cloud Expo Korea 2013 BEXCO, Busan, Korea
  16. 16. Massively Multiplayer Online Games • Thousands of players work together on complex projects • 3D virtual worlds and Heads-updisplays (HUDs) show real-time big data – agile response to change Courtesy of EVE Online (www.eveonline.com) I am working on a project to apply cloud, online games and 3D worlds to operate global supply chains… © 2013, Michael Hugos Center for Systems Innovation [c4si] 16 Cloud Expo Korea 2013 BEXCO, Busan, Korea
  17. 17. Massively Multiplayer Online Businesses • Google Earth and Google Maps provide 3D worlds • App provides HUD display of real-time operating data from global supply chains Courtesy of SCM Globe (www.scmglobe.com) Global cloud networks deliver data, send alerts and deliver SaaS apps to enable © 2013, Michael Hugos Center for Systems Innovation [c4si] 17 agile and innovative responses to unexpected events! Cloud Expo Korea 2013 BEXCO, Busan, Korea
  18. 18. Learn More Elegant solutions to complex problems. Briefing management in strategies for agility; mentoring teams in agile development. My book Business in the Cloud is available in English, Korean and Chinese Michael Hugos CENTER FOR SYSTEMS INNOVATION [c4si] www.MichaelHugos.com © 2013, Michael Hugos Center for Systems Innovation [c4si] 18 Cloud Expo Korea 2013 BEXCO, Busan, Korea

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