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Business Perspectives on Cloud Computing
The document discusses business perspectives on cloud computing. It recommends that organizations assess cloud computing from financial, risk, and strategic perspectives. Specifically, it suggests starting early, engaging stakeholders, finding quick wins to prove value, and preparing for long-term adoption and disruption. The document also warns not to underestimate integration challenges when moving to the cloud.
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Business Perspectives on Cloud Computing
- 1. Business Perspectives on Cloud Computing John Rhoton Digital Trends 2011, Athens Green ICT and Cloud Computing 30/11/2011 John Rhoton – Digital Trends 2011 1
- 2. Agenda • Assessment – Financial, Risk, Strategic • Adoption • Challenges • Guidance 30/11/2011 John Rhoton – Digital Trends 2011 2
- 3. Business Perspective onDefinition Cloud Computing is a set of technologies that help to achieve three business objectives: • Cost reduction – Virtualization, Multi-tenancy, Automation, ... • Business flexibility – On-demand, Utility-pricing, Elasticity, ... • Focus on core competency – Internet delivery, Off-premise execution, Outsourced operation, ... 30/11/2011 John Rhoton – Digital Trends 2011 3
- 4. Two views oftechnology evolution No pivotal innovation vs. Very disruptive impact Network effects Competitive THEN Economy Price • Application Service Provider of Scale • Web Hosting Service • Managed Hosting Service NOW Accelerated • Software-as-a-Service Improved development • Platform-as-a-Service functionality • Infrastructure-as-a-Service Multi-tenancy. Virtualization. Utility billing. These aren’t new – Increased Adoption just a gradual evolution. The right conditions can create market disruption for evolutionary improvements. 30/11/2011 John Rhoton – Digital Trends 2011 4
- 5. Financial Assessment • Software • Hardware • Facilities • Operations 30/11/2011 John Rhoton – Digital Trends 2011 5
- 6. Risk Assessment • Data leakage • Rogue clouds • Data loss – Employee dissatisfaction • Service loss – Unmanaged applications – Insecure data • Compliance • Lock-in • Competitive disadvantage • Internal risks Many organizations greatly underestimate the capability and motivation of the cloud providers to address these risks. They also overestimate their own ability to eliminate these risks from internal implementations. 30/11/2011 John Rhoton – Digital Trends 2011 6
- 7. Strategic Assessment •IT Support – Intellectual Property – Knowledge Management – Service Delivery • Agile Enterprise – Core competency – Modular services – Ecosystem 30/11/2011 John Rhoton – Digital Trends 2011 7
- 8. Private to hybridevolution • Resource Efficiencies • Operational Efficiencies • Sourcing Efficiencies 30/11/2011 John Rhoton – Digital Trends 2011 8
- 9. Candidate applications Lowrisk, high return • Test and Development • Externalised applications – Isolate threats, malware • Redundancy – Geographical – Organizational – Technological 30/11/2011 John Rhoton – Digital Trends 2011 9
- 10. Design challenges • Integration • User management • Reliability • Governance / SLAs • Security The most common cause of failure is underestimating these challenges 30/11/2011 John Rhoton – Digital Trends 2011 10
- 11. Concerns and riskmitigation Risk Mitigation Data leakage Encryption Data loss Multi-source, backup Vendor Standards, multi-source, lock-in backup, exit strategy Service loss SLA, audit, certifications Compliance SLA, audit, certifications 30/11/2011 John Rhoton – Digital Trends 2011 11
- 12. New trust basis Employees Contractors • Personal observation Physical • Personal experience Segmentation Access controls • Human Insight Partners Suppliers Auditors • Public verification Virtual Public Scrutiny Segmentation • Contracts Encryption • Compensation Experts Access controls Legal Counsel 30/11/2011 John Rhoton – Digital Trends 2011 12
- 13. Words of Advice • Start early • Engage everyone – Users, HR, Legal, Procurement,… • Be skeptical of the skeptics • Find Quick wins – Cheap, low-risk • Prepare for the long term 30/11/2011 John Rhoton – Digital Trends 2011 13
- 14. Summary • Assesscloud computing from financial, risk and strategic perspectives • Be prepared for disruption – Requires new trust strategy • Don’t underestimate the challenges • Accept the inevitable 30/11/2011 John Rhoton – Digital Trends 2011 14
- 15. Thank you! John Rhoton john_rhoton@symantec.com, john.rhoton@gmail.com xing.com/profile/John_Rhoton linkedin.com/in/rhoton amazon.com/John-Rhoton/e/B001K8TFW0 slideshare.net/rhoton 30/11/2011 John Rhoton – Digital Trends 2011 15