COMPETING IN A IT
WORLD WITH A
TELECOM
APPROACH

1
The Cloud Market Scenario is Complicated

+ local providers… too many competitors?
2
Bad Signs: Gartner Hype Cycles
2008
2009
2010
2011
2012

3
Bad Signs: High Impact Failures
• Power Outages
• Connectivity Issues
• Data Losses
• Unauthorized Accesses

• Tricky SLAs
• …

The Scream, Edvard Munch (National Gallery, Oslo)

4
Good Signs: Cloud Market Forecasts
Billion $ Spending

Predicted for Year

CISCO

43

2013

AMI PARTNERS

100

2014

IDC

72,8

2015

IBM

88,5

2015

HIS

100

2015

MarketsAndMarkets

121,1

2015

GARTNER

176,8

2015

BAIN

150

2020

FORRESTER

240

2020

5
Good Signs: CIO Troubles are Still There
• 75% - 80% of IT budget is needed
to maintain legacy. Only 20% - 25%
for new projects.
• The average workload is 15% of
deployed computing capacity.
• The average timeframe for regular
infrastructure deployment is 2-3
months.
Dilbert Calendar App Screenshot by Metranome Inc.
Dilbert by Scott Adams

6
Maturity
Service Level

IT
Operations

Developers

Business

Early Adopters

7

Fast and
Cheap
Deployments

Looking for…

Good Signs: Who Is Driving Cloud Adoption?
For telcos that have long been looking to fuse communications
technology with IT services, cloud computing provides a model that
plays to a number of their core strengths, in particular through the
utilization of communications networks as a delivery mechanism. As
demonstrated by Apple and Google's dominance over the consumer
applications and services market, the ability to provide a "one-stop
shop" for an enterprise's entire range of IT and communications
needs will be fundamental in attracting enterprises to a service.
OVUM “Enabling Telco Cloud Services” (OT00056-001)

8
Cloud Stack and Customers

SaaS
External
Customers

PaaS
IaaS
9

Internal
Services
Computing
Storage
Network
Not Only One Size Fits All

Blackbox Product
Internal VAS
Deployment

Internal IT Usage
Adapt to Customer Needs

Enterprise

SMB

10

Individuals
Customer Satisfaction

PWC

11

Navigating the Cloud
We Know What We Have To Do






CoBIT 4.1
ITIL / ISO 20000
ISO 27001
US NIST 800-53
Copyright © 2011 Cloud Security Alliance

12

12
Quality in a product or service is not what the supplier puts in. It is
what the customer gets out and is willing to pay for. A product is not
quality because it is hard to make and costs a lot of money, as
manufacturers typically believe. This is incompetence. Customers
pay only for what is of use to them and gives them value. Nothing
else constitutes quality.
Peter Drucker, “Innovation and Entrepreneurship”

13
The Service Path to Cloud
Virtualization

Consolidation

Resource
Management

Private
Cloud

Public
Cloud

“Cloud
STEPS INTO CLOUD
1.

Computing is not aMANAGEMENT
RISK technology
Define Cloud Strategy and Identify your Starting Point
that can just be turned 1. Verify process and applications independence.
on overnight”
1. ROI analysis.
2. Define security & compliance requirements
3. Resources: Be sure you have the best professionals

2.

2.

Integrations are accurately defined.

3.

Security levels are properly identified.

Define the plan
4. Enterprise architecture is healthy.
Peter Tseronis, deputy associate CIO
1. Sizing: Just a pair of web apps or the whole IT dept.?
5. Dependence
2. Management tools.
of the Energy Department and on communications.
3. Failover, High Availability and Load Balance tools.
6.
chairman of the Cost.
4. Define Phases
7. Application migrations

3.

US Federal Cloud Computing
Set up Service Management and Quality Assurance

4.

Test

5.

Prepare the handling to migrated site

14

Advisory Council
Business Model as Usual
Per Resource Consumed
(Cost Center)
 Processor
 Memory
 Virtual Machine
 Bandwidth
 Storage
 Vlans
 Virtual Datacenters
 …

Resource
Billing
simple

Unadaptable

complex

Difficult to
understand
flat rates

Expensive for
customers

Unprofitable

discounts
15
Alternate BM
Per Service
(Profit Center)











Availability Rate
Transactions Processed
Revenue share
Tech Support Class
EASY TO
DIFFICULT TO
UNDERSTAND
IMPLEMENT
Security Level
The Creation of Adam
Customer Care Tickets
M. Buonarotti, Sixtine Chapel
QoS
Services: Integration, Backup & Restore, Optimization…
Services-aaS: CRM-aaS, Billing-aaS, Tech Support-aaS…
16
The Cloud Market Scenario is Complicated

More individuals are born than can possibly
survive. The slightest advantage in one
being over those with which it comes into
competition, or better adaptation in
however slight a degree to the surrounding
physical conditions, will turn the balance.
Charles R. Darwin
The Origin of Species, c. 14

+ local providers… too many competitors?
17
Contact: emendezpolo@gmail.com
18
19

Network Centric Cloud: Competing in a IT World with a Telecom Approach

  • 1.
    COMPETING IN AIT WORLD WITH A TELECOM APPROACH 1
  • 2.
    The Cloud MarketScenario is Complicated + local providers… too many competitors? 2
  • 3.
    Bad Signs: GartnerHype Cycles 2008 2009 2010 2011 2012 3
  • 4.
    Bad Signs: HighImpact Failures • Power Outages • Connectivity Issues • Data Losses • Unauthorized Accesses • Tricky SLAs • … The Scream, Edvard Munch (National Gallery, Oslo) 4
  • 5.
    Good Signs: CloudMarket Forecasts Billion $ Spending Predicted for Year CISCO 43 2013 AMI PARTNERS 100 2014 IDC 72,8 2015 IBM 88,5 2015 HIS 100 2015 MarketsAndMarkets 121,1 2015 GARTNER 176,8 2015 BAIN 150 2020 FORRESTER 240 2020 5
  • 6.
    Good Signs: CIOTroubles are Still There • 75% - 80% of IT budget is needed to maintain legacy. Only 20% - 25% for new projects. • The average workload is 15% of deployed computing capacity. • The average timeframe for regular infrastructure deployment is 2-3 months. Dilbert Calendar App Screenshot by Metranome Inc. Dilbert by Scott Adams 6
  • 7.
    Maturity Service Level IT Operations Developers Business Early Adopters 7 Fastand Cheap Deployments Looking for… Good Signs: Who Is Driving Cloud Adoption?
  • 8.
    For telcos thathave long been looking to fuse communications technology with IT services, cloud computing provides a model that plays to a number of their core strengths, in particular through the utilization of communications networks as a delivery mechanism. As demonstrated by Apple and Google's dominance over the consumer applications and services market, the ability to provide a "one-stop shop" for an enterprise's entire range of IT and communications needs will be fundamental in attracting enterprises to a service. OVUM “Enabling Telco Cloud Services” (OT00056-001) 8
  • 9.
    Cloud Stack andCustomers SaaS External Customers PaaS IaaS 9 Internal Services Computing Storage Network
  • 10.
    Not Only OneSize Fits All Blackbox Product Internal VAS Deployment Internal IT Usage Adapt to Customer Needs Enterprise SMB 10 Individuals
  • 11.
  • 12.
    We Know WhatWe Have To Do     CoBIT 4.1 ITIL / ISO 20000 ISO 27001 US NIST 800-53 Copyright © 2011 Cloud Security Alliance 12 12
  • 13.
    Quality in aproduct or service is not what the supplier puts in. It is what the customer gets out and is willing to pay for. A product is not quality because it is hard to make and costs a lot of money, as manufacturers typically believe. This is incompetence. Customers pay only for what is of use to them and gives them value. Nothing else constitutes quality. Peter Drucker, “Innovation and Entrepreneurship” 13
  • 14.
    The Service Pathto Cloud Virtualization Consolidation Resource Management Private Cloud Public Cloud “Cloud STEPS INTO CLOUD 1. Computing is not aMANAGEMENT RISK technology Define Cloud Strategy and Identify your Starting Point that can just be turned 1. Verify process and applications independence. on overnight” 1. ROI analysis. 2. Define security & compliance requirements 3. Resources: Be sure you have the best professionals 2. 2. Integrations are accurately defined. 3. Security levels are properly identified. Define the plan 4. Enterprise architecture is healthy. Peter Tseronis, deputy associate CIO 1. Sizing: Just a pair of web apps or the whole IT dept.? 5. Dependence 2. Management tools. of the Energy Department and on communications. 3. Failover, High Availability and Load Balance tools. 6. chairman of the Cost. 4. Define Phases 7. Application migrations 3. US Federal Cloud Computing Set up Service Management and Quality Assurance 4. Test 5. Prepare the handling to migrated site 14 Advisory Council
  • 15.
    Business Model asUsual Per Resource Consumed (Cost Center)  Processor  Memory  Virtual Machine  Bandwidth  Storage  Vlans  Virtual Datacenters  … Resource Billing simple Unadaptable complex Difficult to understand flat rates Expensive for customers Unprofitable discounts 15
  • 16.
    Alternate BM Per Service (ProfitCenter)          Availability Rate Transactions Processed Revenue share Tech Support Class EASY TO DIFFICULT TO UNDERSTAND IMPLEMENT Security Level The Creation of Adam Customer Care Tickets M. Buonarotti, Sixtine Chapel QoS Services: Integration, Backup & Restore, Optimization… Services-aaS: CRM-aaS, Billing-aaS, Tech Support-aaS… 16
  • 17.
    The Cloud MarketScenario is Complicated More individuals are born than can possibly survive. The slightest advantage in one being over those with which it comes into competition, or better adaptation in however slight a degree to the surrounding physical conditions, will turn the balance. Charles R. Darwin The Origin of Species, c. 14 + local providers… too many competitors? 17
  • 18.
  • 19.