Trust and Transformation: Peter Coffee at Cloud@KM 20110503


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Presentation by Peter Coffee of to the Cloud Computing @ KM conference in Tysons Corner, Virginia, 3 May 2011, concerning cloud adoption in public sector and enterprise with attention to security, reliability, developer productivity and facilities for using social media based on Platform as a Service and a multi-tenant architecture

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Trust and Transformation: Peter Coffee at Cloud@KM 20110503

  1. 1. Trust and Transformation: The Compelling Case for the Cloud <ul><li>Peter Coffee </li></ul><ul><li>VP / Head of Platform Research </li></ul><ul><li> inc. </li></ul>
  2. 2. Safe Harbor Safe harbor statement under the Private Securities Litigation Reform Act of 1995: This presentation may contain forward-looking statements that involve risks, uncertainties, and assumptions. If any such uncertainties materialize or if any of the assumptions proves incorrect, the results of, inc. could differ materially from the results expressed or implied by the forward-looking statements we make. All statements other than statements of historical fact could be deemed forward-looking, including any projections of subscriber growth, earnings, revenues, or other financial items and any statements regarding strategies or plans of management for future operations, statements of belief, any statements concerning new, planned, or upgraded services or technology developments and customer contracts or use of our services. The risks and uncertainties referred to above include – but are not limited to – risks associated with developing and delivering new functionality for our service, our new business model, our past operating losses, possible fluctuations in our operating results and rate of growth, interruptions or delays in our Web hosting, breach of our security measures, risks associated with possible mergers and acquisitions, the immature market in which we operate, our relatively limited operating history, our ability to expand, retain, and motivate our employees and manage our growth, new releases of our service and successful customer deployment, our limited history reselling products, and utilization and selling to larger enterprise customers. Further information on potential factors that could affect the financial results of, inc. is included in our annual report and on our Form 10-Q for the most recent fiscal quarter: these documents and others are available on the SEC Filings section of the Investor Information section of our Web site. Any unreleased services or features referenced in this or other press releases or public statements are not currently available and may not be delivered on time or at all. Customers who purchase our services should make the purchase decisions based upon features that are currently available., inc. assumes no obligation and does not intend to update these forward-looking statements. In Other Words: Everything That You See Here is Real
  3. 3. All Cloud Models Simplify Something Cloud Platform for Consumer Apps Infrastructure as a Service Non-Relational Database Python or Java Server Basic Web frameworks lower ISVs’ barriers to market entry Pure APIs invite focus on competitive advantage Cloud Platform for Enterprise Apps Infrastructure as a Service Full Relational Database Integration as a Service Logic as a Service UI as a Service Servers as a Service Infrastructure as a Service Virtualization enables scale (but preserves or compounds complexity) VM VM VM VM
  4. 4. <ul><ul><li>Moving toward an ideal: “Zero, One, Infinity” * </li></ul></ul><ul><ul><li>0 On-premise infrastructure Acquisition cost Adoption cost Support cost </li></ul></ul><ul><ul><li>1 Coherent and resilient environment – not a brittle “software stack” </li></ul></ul><ul><ul><li> Scalability in response to changing need </li></ul></ul><ul><ul><li>Integratability/Interoperability with legacy assets and other services </li></ul></ul><ul><ul><li>Customizability/Programmability from data, through logic, up into the user interface without compromising robust multi-tenancy </li></ul></ul><ul><ul><li>* From The Jargon File : “Allow none of foo , exactly one of foo , or any number of foo ” </li></ul></ul>What True Clouds Have in Common
  5. 5. <ul><li>Currently used in critical service sectors </li></ul><ul><ul><li>53% of high-tech firms </li></ul></ul><ul><ul><li>40% of financial services firms </li></ul></ul><ul><ul><li>37% of legal services providers </li></ul></ul><ul><ul><li>35% of retail firms </li></ul></ul><ul><ul><li>32% of health care providers </li></ul></ul><ul><ul><li>32% of manufacturers </li></ul></ul><ul><ul><li>29% of educational institutions </li></ul></ul><ul><li>Plans for expanded use across the board </li></ul><ul><ul><li>73% of health care providers </li></ul></ul><ul><ul><li>75% of government agencies </li></ul></ul><ul><ul><li>75% of high-tech firms </li></ul></ul><ul><ul><li>70% of all current users </li></ul></ul><ul><li>Sources: Accenture, Mimecast surveys of US/Canada IT decision makers </li></ul>Adoption is Broad: Expansion is Rapid
  6. 6. Culture & Education Political Campaigns & Advocacy Economic Development Defense & Public Safety Health & Human Services General Government Transportation Science & Environment Clouds in Public Service: No “Forbidden Zones”
  7. 7. True Clouds Enable Transforming Scalability <ul><li>134,077 Registered Users </li></ul><ul><li>1.4 M Votes </li></ul><ul><li>52,015 Ideas </li></ul>10M Page views 1.8TB Volume 39.3M Hits Constituent Engagement Portal Concept to Live in Three Weeks Zero to Peak in One Hour
  8. 8. Coherent Code Base and Managed Infrastructure Your Clicks Your Code Metadata representations: Rigorously partitioned data, logic and customizations for multiple customers Build strategic applications Customize any aspect Upgrade when convenient Preserve IP control The Metadata Model: Clouds Can Customize User Interface Logic Database
  9. 9. Common Code Base Eases Upgrades Customers decide when (or whether) to adopt new features Customizations move forward without regression or breakage Vendor resources are not diluted by need to support legacy versions of products A Better Upgrade Path for Everyone “ Windows 7 is now at 22.31%, up 1.44 points from December. However, XP and Vista are losing share faster than Windows 7 can gain (XP is down to 55.26% and Vista down to 11.66%)” Tom’s Guide, 3 Feb 2011
  10. 10. Coherent Code Base and Managed Infrastructure Selectively exposed data, logic and customizations Click to Connect Your Clicks Your Code User Interface Logic Database Salesforce to Salesforce Sharing
  11. 11. Cloud Platforms Can Offer Developer Leverage A path of least resistance to high-function applications > 1 Billion Lines of Cloud Logic Unlimited Real-Time Customization Granular Security & Sharing 245,000 Workflow Rules and Approvals 312,000 UI Customizations Real-Time Mobile Deployment Real-Time Websites Integrated Content Library Integrated Analytics & Data Quality Integrated Analytics & Data Quality Aids 800+ Integrated Applications Multi-Tenant Kernel Proven Reliability Real-Time Upgrades ISO 27001, SAS 70 Type II Certified Security Proven Scalability (15 billion transactions/Q2) Real-Time Transparent System Status 3 Global Data Centers & Disaster Recovery Proven Real-Time integration Real-Time Sandbox Environments Real-Time Query Optimizer Salesforce to Salesforce Sharing Salesforce to Salesforce Sharing
  12. 12. Cloud Development: reinvented, not just relocated <ul><li>Nucleus Research analyzed deployments: found average 4.9 times faster development (range 1.5x-10x) versus Java or .Net </li></ul><ul><ul><li>Custom objects </li></ul></ul><ul><ul><li>Administrative tools </li></ul></ul><ul><ul><li>Workflow engine </li></ul></ul><ul><ul><li>Pre-tested platform </li></ul></ul><ul><li>Galorath Inc. compared developers’ productivity to Java development </li></ul><ul><ul><li>Requirements definition time reduced 25% due to rapid prototyping </li></ul></ul><ul><ul><li>Testing effort reduced by (typically) more than 10% </li></ul></ul><ul><ul><li>Development productivity of new code 5x greater </li></ul></ul><ul><ul><li>Overall project cost 30-40% less </li></ul></ul><ul><li>CustomerSat sampled more than 1,100 development teams during summer 2009 </li></ul><ul><ul><li>Average experience: 4 applications deployed to date </li></ul></ul><ul><ul><li>Average project cost savings: 48% </li></ul></ul><ul><ul><li>Average project acceleration: 5.1x </li></ul></ul>
  13. 13. State and Local Transformation San Francisco’s Family Service Agency Builds HIPAA-compliant EHR and Case Management App 50% reduction in time spent on paperwork, reporting and reimbursement Eliminated 2-month wait for County reports Real-time tracking of individual client outcomes (treatments adjusted accordingly) Self-audits and tracking of clinician, program, and division productivity Automated reimbursement process though auto-population of funder forms Bob Bennett CEO
  14. 15. Threat Doesn’t Need an Outside Enemy <ul><li>&quot;There are five common factors that lead to the compromise of database information&quot;: </li></ul><ul><ul><li>ignorance </li></ul></ul><ul><ul><li>poor password management </li></ul></ul><ul><ul><li>rampant account sharing </li></ul></ul><ul><ul><li>unfettered access to data </li></ul></ul><ul><ul><li>excessive portability of data </li></ul></ul><ul><li>, October 2009 </li></ul>
  15. 16. <ul><li>Password security policies </li></ul><ul><li>Rich Sharing Rules </li></ul><ul><li>User Profiles </li></ul><ul><li>SSO/2-factor solutions </li></ul>Bottom-Up Design to be “Shared and Secure”
  16. 17. Every Act an Invocation: Granular Privilege
  17. 18. <ul><li>Data protection regulations </li></ul><ul><ul><li>Where can it be stored? </li></ul></ul><ul><ul><li>Who’s allowed to see it? </li></ul></ul><ul><li>Peel the onion of ‘compliance’ </li></ul><ul><ul><li>Anonymize, encrypt, or partition specific fields </li></ul></ul><ul><ul><li>Cloud disciplines can enhance auditability </li></ul></ul><ul><ul><ul><li>Role-based privilege assignment </li></ul></ul></ul><ul><ul><ul><li>Actions taken using granted privileges </li></ul></ul></ul><ul><li>Looking at the laws is not enough </li></ul><ul><ul><li>USA PATRIOT Act makes many fear multi-tenant model </li></ul></ul><ul><ul><li>Court rulings call for isolation of targeted data when a multi-tenant system is involved </li></ul></ul>Data Stewardship is a Practice, not a Technology
  18. 19. <ul><li>Continual Improvement </li></ul><ul><li> systems achieved 99.99% of planned availability during YE April 2011 </li></ul><ul><li>31 billion transactions in Apr’11, up 57% from 2010 </li></ul><ul><li>Maintenance shortening: “5 minute upgrade” </li></ul>Live System Status Security Best Practices Historical Performance Full Public Disclosure Amazon Google Trust is Earned by Transparency
  19. 20. Trust is Earned by Transparency
  20. 21. <ul><li>Robust infrastructure security </li></ul><ul><li>Rigorous operational security </li></ul><ul><li>Granular customer controls </li></ul><ul><ul><li>Role-based privilege sets </li></ul></ul><ul><ul><li>Convenient access control & audit </li></ul></ul><ul><li>“ Sum of all fears” scrutiny and response </li></ul><ul><ul><li>Multi-tenancy reduces opportunities for error </li></ul></ul><ul><ul><li>The most demanding customer sets the bar </li></ul></ul>Trust is Essential to Cloud Adoption
  21. 22. Cloud Integration: Not an All-or-Nothing Choice Mash-ups from Web and AppExchange Native Desktop Connectors Integration Partner Ecosystem Developer Toolkits
  22. 23. 4 Months (Oct ’06- Feb ’07) 1 Month (Dec ’06) 5 Months (Dec ’06 – May ’07) 2Q07 Deployments “ This is process lite. It gives my business users what they want, a unique app for each sales team, fundamentally reflecting their own personality. “ And yes, I get a single standard SAP integration. It’s a terrific success. ” – CIO, Fortune 500 Firm SAP Back-end Integration Customized for Diverse Sales Groups Sales Distributors EMEA Inside Sales AFS Global Sales FLPR Field Sales Cloud Integration: New Roles for Knowledge
  23. 24. “ If you take the ideal world, everything is done as a service: computing, storage, software and operations.” “ The risk for enterprises that don't start a SaaS migration strategy soon is that their IT organizational structures will be a competitive disadvantage.” Geir Ramleth CIO, Bechtel Corp.
  24. 25. Cloud Computing: Most Sustainable IT Model in the World Carbon Footprint (g. CO 2 / transaction) 95% lower carbon intensity Energy Efficiency Comparison: Transactions , not Cycles or Servers On-Premise 64% lower carbon intensity Private Cloud *Estimated avoided carbon emissions from customers running applications on the multi-tenant cloud as opposed to running on-premise servers. Actual carbon emissions savings could vary. Based on WSP comparison model and research commissioned by, March 2011. green.
  25. 26. <ul><li>If we talk about cost reduction, the most I can do for you is cut your IT spending by 100%. Then we’re done. </li></ul><ul><li>If we talk about value creation, I can keep on delivering value with no upper bound. That’s a much more interesting conversation. </li></ul>The Cloud’s Lower Cost is Compelling. So What? If you want cheap IT, go ahead. You won’t be in business next year. Your competitors will do projects with attractive ROI, while you spend less, and you won’t be competitive in service or performance. Demand curves slope downwards. Better apps at lower cost will expand demand and grow total IT spending. And that’s OK.
  26. 27. <ul><li>True Cloud Storage as a Service </li></ul><ul><ul><li>No one can sell you a hard drive that tells you when your data’s out of date </li></ul></ul><ul><ul><li>In the cloud, your storage can be self-cleaning </li></ul></ul><ul><li>True Cloud Customer Support as a Service </li></ul><ul><ul><li>No one can build you a call center that knows everything your customers know…and everything they’re saying to each other about you </li></ul></ul><ul><ul><li>In the cloud, your service center can interact with social nets </li></ul></ul><ul><li>True Cloud Application Platform as a Service </li></ul><ul><ul><li>No one can give you a local development platform that automatically deploys your applications onto every new portable device </li></ul></ul><ul><ul><li>In the cloud, apps can acquire new features and support new devices at zero cost to the developer </li></ul></ul>Don’t Settle for “Same Function, Lower Cost”
  27. 28. Email Users Social Networking Users Global Users (MM) Social Networking Users Surpass Email Users on 7/09 Source: Morgan Stanley Internet Mobile Report, December 2009 Data is for unique, monthly users of social networking and email usage. Users Demand New Application Models
  28. 29. <ul><li>What is the organization’s mission? </li></ul><ul><li>What information supports that mission? </li></ul><ul><li>Where does it originate? </li></ul><ul><li>Who holds it? </li></ul><ul><li>Who can see it? </li></ul><ul><li>What events change it? </li></ul><ul><li>When is that important? </li></ul><ul><li>How do people know? </li></ul><ul><li>How can people act? </li></ul>The Map to “Securely Social”
  29. 30. <ul><li>Where are key players already having conversations? </li></ul><ul><li>What facilities exist for tapping that stream? </li></ul><ul><li>What are the cultural norms of that community? </li></ul><ul><li>When should you be present? </li></ul><ul><li>How should you participate? </li></ul><ul><li>Who will represent you? </li></ul><ul><li>How will that process scale? </li></ul><ul><li>What will you learn? </li></ul><ul><li>How will you change? </li></ul>The Map to “Securely Social”
  30. 31. <ul><li>It’s hard to add security to a tool that shares by default </li></ul><ul><li>It’s possible to add social tools to a proven trust model </li></ul>Enterprise Clouds Enable Secure Communities Profiles File Sharing App Updates Groups Status Updates Security & Sharing Model Real-time Analytics Feeds Mobile
  31. 32. Addressing the Crucial Concerns <ul><li>“ I’m not sure you’re secure ” </li></ul><ul><ul><li>PaaS responds to new threats with world-class security tools and practices </li></ul></ul><ul><ul><li>Service model improves privilege management and audit-trail ability </li></ul></ul>
  32. 33. <ul><li>“ You’re a proprietary platform that makes me learn new things and locks me in forever” </li></ul><ul><ul><li>We’ve always enabled options </li></ul></ul><ul><ul><ul><li>Run local code and integrate </li></ul></ul></ul><ul><ul><ul><li>Run Java or LAMP on AWS </li></ul></ul></ul><ul><ul><ul><li>Treat us as an adjunct tool for </li></ul></ul></ul><ul><ul><ul><ul><li>Integration of multi-vendor IT </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Access to handheld devices </li></ul></ul></ul></ul><ul><ul><ul><li>We come as liberators </li></ul></ul></ul><ul><ul><li>Openness is a commitment </li></ul></ul><ul><ul><ul><li>Java (+ more to come) on Vmforce </li></ul></ul></ul><ul><ul><ul><ul><li>Familiar development model </li></ul></ul></ul></ul><ul><ul><ul><ul><li>True freedom to port up or back </li></ul></ul></ul></ul><ul><ul><ul><li>Ruby (+ more to come) on Heroku </li></ul></ul></ul><ul><ul><ul><ul><li>Not just an application </li></ul></ul></ul></ul><ul><ul><ul><ul><li>The tools to fulfill a mission </li></ul></ul></ul></ul><ul><ul><li>Leverage is essential </li></ul></ul>Addressing the Crucial Concerns
  33. 34. Nothing Happens Overnight; Nothing Goes Away ’ 50s ’ 60s ’ 70s ’ 80s ’ 90s ’ 00s PC MITS Altair IBM PC Macintosh Windows 3.x/9x/NT & Linux 1.0 Windows XP & Mac OS X Mini DEC PDP-8 DEC VAX 11/780 Sun Workstations & Servers Sun/ILM Render Farms Sun/AMD x86 Servers Niagara CPUs Mainframe IBM 701 S/360 S/370 4300 S/390 zSeries
  34. 35. Appearance Emergence Ascendance Refinement… ’ 50s ’ 60s ’ 70s ’ 80s ’ 90s ’ 00s Cloud Apps & Platforms X Window Grid Computing PC MITS Altair IBM PC Macintosh Windows 3.x/9x/NT & Linux 1.0 Windows XP & Mac OS X Mini DEC PDP-8 DEC VAX 11/780 Sun Workstations & Servers Sun/ILM Render Farms Sun/AMD x86 Servers Niagara CPUs Mainframe IBM 701 S/360 S/370 4300 S/390 zSeries
  35. 36. Cloud Credibility: Option of First Resort
  36. 37. Grants & Financial Mgmt Program & Project Mgmt Tech Transfer HR & Recruiting Constituent Engagement Vendor & Partner Mgmt Case & Records Management Shared Service Providers Business Development Call Centers / Portals Marketing & Outreach Relationship & Contact Mgmt E-Commerce Proven Performance in Many Domains
  37. 38. “ Do it yourself” vs. “Who you gonna call?” <ul><li>Potential benefits from transitioning to a public cloud computing environment: </li></ul><ul><ul><li>Staff Specialization </li></ul></ul><ul><ul><li>Platform Strength </li></ul></ul><ul><ul><li>Resource Availability </li></ul></ul><ul><ul><li>Backup and Recovery </li></ul></ul><ul><ul><li>Mobile Endpoints </li></ul></ul><ul><ul><li>Data Concentration </li></ul></ul>
  38. 39. <ul><li>You Can’t Ride a Unicorn </li></ul><ul><ul><li>It’s often said that CIOs “prefer a private cloud” </li></ul></ul><ul><ul><li>If it’s not really a choice, a preference is a fantasy </li></ul></ul><ul><ul><ul><li>The cloud is connection, not isolation </li></ul></ul></ul><ul><ul><ul><li>The cloud is agility, not stagnation </li></ul></ul></ul><ul><li>You Shouldn’t Feed a Minotaur </li></ul><ul><ul><li>Social, mobile and open IT are competitive mandates </li></ul></ul><ul><ul><li>The skills required to do it are scarce </li></ul></ul><ul><ul><li>You can’t afford to divert those resources to an aging stack </li></ul></ul><ul><li>It’s Rude to be Antisocial </li></ul><ul><ul><li>Social tools aren’t merely recreational </li></ul></ul><ul><ul><li>Events should call for attention </li></ul></ul><ul><ul><li>Content should accompany conversations </li></ul></ul><ul><ul><li>Workplace tools shouldn’t constrain contributions </li></ul></ul>Fundamental Truths of True Clouds
  39. 40. Peter Coffee VP / Head of Platform Research [email_address] Q & A?