CLOUD BILLING:
ENABLING
CONSUMERS FOR PAY
FOR WHAT THEY USE
The Cloud Market Scenario is Complicated

+ local providers… too many competitors?
3
Bad Signs: Gartner Hype Cycles
2008
2009
2010
2011

4
Bad Signs: High Impact Failures
• Lightnings
• Power Outages
• Connectivity Issues
• Data Losses

• Unauthorized Accesses
• Tricky SLAs
• …
The Scream, Edvard Munch (National Gallery, Oslo)

5
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

6
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

7
Good Signs: Who Is Driving Cloud Adoption?

Service Level

IT
Operations

Developers

Business

Early Adopters

8

Fast and
Cheap
Deployments

Looking for…

Maturity
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)

9
Cloud Stack and Customers

SaaS
External
Customers

PaaS
IaaS
10

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

11

Individuals
Customer Satisfaction

PWC

12

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

13

13
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”

14
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

15

Advisory Council
Cloud Billing Alternatives
Per Resource Consumed
(Cost Center)
 Processor
 Memory
 Virtual Machine
 Bandwidth
 Storage
 Vlans
 Virtual Datacenters
 …
16

Resource
Billing
simple

Unadaptable

complex

Difficult to
understand
flat rates

Expensive for
customers

Unprofitable

discounts
16
Cloud Billing Alternatives
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…
17

17
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?
18
Contact: emendezpolo@gmail.com
Cloud Billing: Enabling consumers for pay for what they use

Cloud Billing: Enabling consumers for pay for what they use

  • 1.
  • 3.
    The Cloud MarketScenario is Complicated + local providers… too many competitors? 3
  • 4.
    Bad Signs: GartnerHype Cycles 2008 2009 2010 2011 4
  • 5.
    Bad Signs: HighImpact Failures • Lightnings • Power Outages • Connectivity Issues • Data Losses • Unauthorized Accesses • Tricky SLAs • … The Scream, Edvard Munch (National Gallery, Oslo) 5
  • 6.
    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 6
  • 7.
    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 7
  • 8.
    Good Signs: WhoIs Driving Cloud Adoption? Service Level IT Operations Developers Business Early Adopters 8 Fast and Cheap Deployments Looking for… Maturity
  • 9.
    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) 9
  • 10.
    Cloud Stack andCustomers SaaS External Customers PaaS IaaS 10 Internal Services Computing Storage Network
  • 11.
    Not Only OneSize Fits All Blackbox Product Internal VAS Deployment Internal IT Usage Adapt to Customer Needs Enterprise SMB 11 Individuals
  • 12.
  • 13.
    We Know WhatWe Have To Do     CoBIT 4.1 ITIL / ISO 20000 ISO 27001 US NIST 800-53 Copyright © 2011 Cloud Security Alliance 13 13
  • 14.
    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” 14
  • 15.
    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 15 Advisory Council
  • 16.
    Cloud Billing Alternatives PerResource Consumed (Cost Center)  Processor  Memory  Virtual Machine  Bandwidth  Storage  Vlans  Virtual Datacenters  … 16 Resource Billing simple Unadaptable complex Difficult to understand flat rates Expensive for customers Unprofitable discounts 16
  • 17.
    Cloud Billing Alternatives PerService (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… 17 17
  • 18.
    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? 18
  • 19.