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Cloud-Computing :Why Industries
Should Look To It
A guide for Managers




Sanyam Goyal
July, 2009
Agenda
  Challenges/Problems with Current Industries

            •    CapEx. Vs OpEx.

            •    Balancing Resources and Cost

            •    Tedious Software Cycle



  How can we solve the problem

            •    Cloud Computing as a Solution



  Benefits of using cloud-approach

            •    Ensuring Security and Reliability


  Cloud Vs On-Premise IT


  The Deloitte Approach


  Conclusion
Copyright © 2007 Deloitte Development LLC. All rights reserved.   1
Challenges with Current IT Model of industries

    Capital Expenditure(CapEx) and Operational
    Expenditure (OpEx)
       – High capital expenditure, high startup cost
       – Operational expenditure at low volume is not optimal

                                                                  •   Equipment
                                                                  •   Installation         •   Maintenance
                                                                  •   Floor Space          •   Power
                                                                  •   Software Licensing   •   Network Operation
                                                                  •   Software             •   Failures
                                                                      Development          •   Other Services


                                                                      CapEx                    OpEx
Copyright © 2007 Deloitte Development LLC. All rights reserved.                                                    2
Challenges with Current IT Model of industries

Balancing Resources and Cost


  Resource Utilization and Peak Performance
    • Ensuring acceptable peak performance requires extra
      capacity
    • This results in resources being underutilized most of the
      time
  Scaling Up
    • Scaling up to meet new demands is a lengthy and
      expensive process
    • Matching capacity with demand is challenging

Copyright © 2007 Deloitte Development LLC. All rights reserved.   3
Challenges with Current IT Model of industries

Tedious Software Management Cycle

•       Licensing Cost
•       Running cost of maintenance                                           Licensing
        and failures
•       Cost of updating software
•       Upgrades to newer software                                Upgrading               Maintenance
        takes time and money



                                                                       Updates        Failures




Copyright © 2007 Deloitte Development LLC. All rights reserved.                                         4
How can we solve the problem ?
• Use Assets as Service
       – SaaS (Software as a Service)
       – PaaS (Platform as a Service)
       – IaaS (Infrastructure as a Service)
•          Pay based on utility just like paying a taxi bill
•          Internet based subscription offering
•          On-demand Service Offering




Copyright © 2007 Deloitte Development LLC. All rights reserved.   5
Cloud Computing : A Solution


Infrastructure As A
Service
                                                                    IaaS PaaS                   Platform As A Service
                                                                                                • Software stack as service
• Servers, data-Centers                                                                         • Supports complete software
•Dynamic and Flexible                                                                           development cycle
scaling of resources                                                                            • Dynamic runtime resource
                                                                                                allocation
                                                                       SaaS
                                                                     Software As A Service
                                                                     • Remote access to
                                                                     traditionally on-site
                                                                       software
                                                                     • Simple client software
                                                                     (eg. Web Browser)
                                                                     • Subscribe or pay as
                                                                     much as you use
  Copyright © 2007 Deloitte Development LLC. All rights reserved.                                                       6
Benefits of using cloud-approach
• A single provider serves many clients
       – Economies of scale
       – Dynamic capacity
         provisioning
       – No maintenance cost for
         clients




Copyright © 2007 Deloitte Development LLC. All rights reserved.   7
Benefits of using cloud-approach

                                                                              Licensing,
                                                                             Maintenance,
                                 Ubiquitous Access
                                                                             Upgrading of
                                                                               Software

                                                                  Service
                                                                  Provider



                                 Latest Technology                     Secure Infrastructure




Copyright © 2007 Deloitte Development LLC. All rights reserved.                                8
Security and Reliability
       Service providers have the following features
       to ensure security and reliability -
       Security
                • Data encryption
                • Access Control
                • Dedicated Resources

       Reliability
                • Service Level Agreement
                • Redundancy




Copyright © 2007 Deloitte Development LLC. All rights reserved.   9
Cloud Vs On-Premise IT
                                           Cost Saving in Operating Expenditure (OpEx)                              Data Based on the
                                                                                                                    study from various
                                                                                                                    cloud-offering and a
                                                                                                                    typical Industry
Reduce TCO of                                                                                                       Requirements
Software by
                                             Real Estate                                   Cloud
50% by
leveraging                                                                                 On Premise
Software as a                                     Electricity
Service &
Platform as a                              Maintenance
Service
                                              Staff Salary
                                                                                                                    100TB of storage
Reduces time-to-                                Bandwidth                                                           space on cloud can
market from 6-8                                                                                                     save $1M per year
weeks to few min                                      Storage                                                       by leveraging
by leveraging                                                                                                       Storage as a Service
Infrastructure as a             Computing Power
Service
                                                                     0   2   4   6    8   10 12
                                                                                     x 100000 Rs
       Analysis by Infosys-Labs
                                                                                           Courtesey:infosysblogs
   Copyright © 2007 Deloitte Development LLC. All rights reserved.                                                                         10
The Deloitte Approach
• Consider These When choosing a Service Provider
       –     Privileged user access.
       –     Regulatory compliance.
       –     Data location
       –     Data segregation
                • Tested encryption techniques
       – Recovery
                • Reliable backup plans
       – Long-term viability
• Study of both CapEx and OpEx
• Make Decision based on TCO benifits
Copyright © 2007 Deloitte Development LLC. All rights reserved.   11
Conclusion

       • Cost Effective solutions
       • Importance reflected in its growth rate
       • Allows businesses to focus on innovation and
         business logic instead of IT issues
       • Provides competitive advantage for early
         adopters
       •IT Giants have understood the importance and
       entered the market



Copyright © 2007 Deloitte Development LLC. All rights reserved.   12
Copyright © 2007 Deloitte Development LLC. All rights reserved.

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Cloud Computing Presentation

  • 1. Cloud-Computing :Why Industries Should Look To It A guide for Managers Sanyam Goyal July, 2009
  • 2. Agenda Challenges/Problems with Current Industries • CapEx. Vs OpEx. • Balancing Resources and Cost • Tedious Software Cycle How can we solve the problem • Cloud Computing as a Solution Benefits of using cloud-approach • Ensuring Security and Reliability Cloud Vs On-Premise IT The Deloitte Approach Conclusion Copyright © 2007 Deloitte Development LLC. All rights reserved. 1
  • 3. Challenges with Current IT Model of industries Capital Expenditure(CapEx) and Operational Expenditure (OpEx) – High capital expenditure, high startup cost – Operational expenditure at low volume is not optimal • Equipment • Installation • Maintenance • Floor Space • Power • Software Licensing • Network Operation • Software • Failures Development • Other Services CapEx OpEx Copyright © 2007 Deloitte Development LLC. All rights reserved. 2
  • 4. Challenges with Current IT Model of industries Balancing Resources and Cost Resource Utilization and Peak Performance • Ensuring acceptable peak performance requires extra capacity • This results in resources being underutilized most of the time Scaling Up • Scaling up to meet new demands is a lengthy and expensive process • Matching capacity with demand is challenging Copyright © 2007 Deloitte Development LLC. All rights reserved. 3
  • 5. Challenges with Current IT Model of industries Tedious Software Management Cycle • Licensing Cost • Running cost of maintenance Licensing and failures • Cost of updating software • Upgrades to newer software Upgrading Maintenance takes time and money Updates Failures Copyright © 2007 Deloitte Development LLC. All rights reserved. 4
  • 6. How can we solve the problem ? • Use Assets as Service – SaaS (Software as a Service) – PaaS (Platform as a Service) – IaaS (Infrastructure as a Service) • Pay based on utility just like paying a taxi bill • Internet based subscription offering • On-demand Service Offering Copyright © 2007 Deloitte Development LLC. All rights reserved. 5
  • 7. Cloud Computing : A Solution Infrastructure As A Service IaaS PaaS Platform As A Service • Software stack as service • Servers, data-Centers • Supports complete software •Dynamic and Flexible development cycle scaling of resources • Dynamic runtime resource allocation SaaS Software As A Service • Remote access to traditionally on-site software • Simple client software (eg. Web Browser) • Subscribe or pay as much as you use Copyright © 2007 Deloitte Development LLC. All rights reserved. 6
  • 8. Benefits of using cloud-approach • A single provider serves many clients – Economies of scale – Dynamic capacity provisioning – No maintenance cost for clients Copyright © 2007 Deloitte Development LLC. All rights reserved. 7
  • 9. Benefits of using cloud-approach Licensing, Maintenance, Ubiquitous Access Upgrading of Software Service Provider Latest Technology Secure Infrastructure Copyright © 2007 Deloitte Development LLC. All rights reserved. 8
  • 10. Security and Reliability Service providers have the following features to ensure security and reliability - Security • Data encryption • Access Control • Dedicated Resources Reliability • Service Level Agreement • Redundancy Copyright © 2007 Deloitte Development LLC. All rights reserved. 9
  • 11. Cloud Vs On-Premise IT Cost Saving in Operating Expenditure (OpEx) Data Based on the study from various cloud-offering and a typical Industry Reduce TCO of Requirements Software by Real Estate Cloud 50% by leveraging On Premise Software as a Electricity Service & Platform as a Maintenance Service Staff Salary 100TB of storage Reduces time-to- Bandwidth space on cloud can market from 6-8 save $1M per year weeks to few min Storage by leveraging by leveraging Storage as a Service Infrastructure as a Computing Power Service 0 2 4 6 8 10 12 x 100000 Rs Analysis by Infosys-Labs Courtesey:infosysblogs Copyright © 2007 Deloitte Development LLC. All rights reserved. 10
  • 12. The Deloitte Approach • Consider These When choosing a Service Provider – Privileged user access. – Regulatory compliance. – Data location – Data segregation • Tested encryption techniques – Recovery • Reliable backup plans – Long-term viability • Study of both CapEx and OpEx • Make Decision based on TCO benifits Copyright © 2007 Deloitte Development LLC. All rights reserved. 11
  • 13. Conclusion • Cost Effective solutions • Importance reflected in its growth rate • Allows businesses to focus on innovation and business logic instead of IT issues • Provides competitive advantage for early adopters •IT Giants have understood the importance and entered the market Copyright © 2007 Deloitte Development LLC. All rights reserved. 12
  • 14. Copyright © 2007 Deloitte Development LLC. All rights reserved.