Cloud & Virtualisation Conference

Cloud Computing
One size fits all … and other
Myths

Kamal Ramsingh : Technology Services Leader

@CIOAnywhere

©2012 Deloitte. All rights reserved

The Current Cloud
Truths we’ve come to realise

© 2012 Deloitte Touche Tohmatsu Limited

Hyper-Hybrid Cloud

Hybrid cloud model will be a dominant approach for large enterprise
(private & public clouds) with the emergence of competency based
clouds

As the services catalogue grows within the enterprise, there is a
need for integration, monitoring and management capabilities –
multi-cloud, multi-provider.

An emerging need for the subscriber
and their ecosystem of providers to
be able to share services for
integration, workflow, business rules
and business policy – cloud-to-
cloud, in the cloud!


New Businesses

The Cloud
provides a
launch pad for
new agile
businesses who
can take
advantage of
the quick “go-to-
market” and
scalability of
cloud
computing.


New Business Models

Cloud
Computing has
intrinsically
changed the
way in which
businesses
operate. They
are more
agile, efficient
and profitable.


New Jobs

Cloud Computing
does not take
employment away
– but rather offers
additional
employment as
new skills and
specialities are
essential.


Service Delivery
Cloud Computing
has
revolutionised the
way in which
services are
delivered. They
are flexible, on-
demand and
cost-effective.
This is critical for
SMMEs as well
as the Public
Sector in Africa.


The Cloud Promise
Managed Optimism


The Cloud Promise

Support of
Business
Imperatives
Readiness
and Maturity Alignment
to Strategic
WHY ? Applications/ Position
Process
Architecture

Risks

Maturity of
Industry
Segment Regulatory
and
WHAT? Compliance

HOW? UNDERSTAND YOUR VALUE
AND READINESS PROFILE


Assess Your Cloud Readiness

Alignment to Strategic Position

1. Does your business model lend itself to collaboration
2. Is there high geographic dispersion of operations with common applications
3. Stage of Growth

Should time to market be a significant driver of
success in your industry and technology a key
determinant of getting products /services to market
quickly; then cloud is highly relevant for you.

Mis-aligned Aligned
Limited value Business value
save for creation more
possible Price feasible
Predictability through cloud



Maturity of your industry segment

1. Are you operating in an industry / segment where growth is still intense
2. Is the differentiation based on product innovation and service level
3. Barriers to entry low for this sector

Industry segments that are mature demand innovation in
order for organisations to remain profitable. Organisations
in this space will find it necessary to explore and introduce
cloud computing offerings as internal as well as client
facing solutions.

Growing Mature
Potential Cloud
differentiation represents a
value limited key catalyst for
innovation


Support of Business Imperatives
1. Is there a business imperative for agility and scale
2. Will potential savings be relevant
3. Will the be an opportunity to increase focus on core capabilities
4. Will there be tax implications to a cloud initiative

Cloud is a disruptive technology and its adoption will
have significant impact on the way that business and
IT is operated. Strong leadership is required to
ensure the necessary management teams are
committed to the critical changes.

Low Support Visible Support
Value will be Greater change of
constrained if seeing cloud as a
cloud is potential business
another IT value enabler
project © 2012 Deloitte Touche Tohmatsu Limited


Complexity of Applications / Process Architecture

1. Are processes supported my homogenous applications or several point solutions
2. Similar consideration for platforms and infrastructure
3. Is there a strong integration architecture and discipline

Extracting part of a process / discrete application
to be placed outside the firewall is easier done
within a mature integration discipline

Complex Homogenous
Better suited for Harder to
cloud embed cloud



Regulatory & Compliance Constraints

1. High levels of client and internal data disclosure
2. External regulatory structures
3. Internal Compliance / Controls

Organisations who deal with highly sensitive
data or are in highly regulated industries need
to be certain that cloud computing is a
suitable solution for them.

High Regulation Less Regulation
Ability to execute Higher value /
clouds solution return as less
may be harder / complexity during
longer – reduces deployment
value © 2012 Deloitte Touche Tohmatsu Limited


Business / IT Risks

1. Market and Reputational – e.g. Media scrutiny on transactions
2. Technical
3. Security and Privacy

Strong IT governance is required to ensure
that IT decisions pertaining to Cloud are
done in a timely manner and include the
relevant stakeholders, e.g. changing Cloud
providers, expanding / extending Cloud use.

Un-governed Mature
Business risk Easier to
levels are high manage
– may offset transition –
value may impede


IT Readiness and Scale

1. Data Analytics and Information Management
2. IT Infrastructure
3. IT Sourcing & Vendor Management

Smaller units have the ability to move and react
quickly will able to take advantage of reduced costs
and the agility of cloud quicker.

Small and Mature
Flexible More
Possible faster resistance with
adoption to reduced value
cloud demands creation

Where to from here …
1. Organisations absorb change and realise
business value at different rates. Cloud
initiatives need to be recognised for the change
agents they are ... and managed accordingly

2. Cloud computing needs to seek out business
value and rapidly move beyond a technical
conversation.

3. An objective view on Cloud Readiness should
drive the rate and pace of adoption ... Low
hanging fruit

4. The path to hyper-hybrid will likely lead to
custom extensions of initial cloud
services, increased interfaces to core back-
office systems and data, and the pursuit of
SaaS application capability cloud offerings.

For additional information, please contact:

Kamal Ramsingh
Technology Leader : Deloitte Consulting
kramsingh@deloitte.co.za

@CIOAnywhere


Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and
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© 2012 Deloitte & Touche. All rights reserved. Member of Deloitte Touche Tohmatsu Limited

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