Smart business - is cloud part of the problem or part of the solution

SMART BUSINESS WWW.CONSALTA.SI
WWW.CONSALTA.SI
PRESENTER: DAVID BALAZIC 2015 FEBIs Cloud part of the Problem or part of the Solution?
SMART BUSINESS - DPA

OUR JOURNEY FOR TODAY
MORNING INTO THE CLOUD
INTRO
WHY SHOULD
YOU CARE
ABOUT CLOUD?
THE TRENDS
FINGING THE
RIGHT BALANCE
GOOD
PRACTICES

Consalta Ltd.
An internationally renowned IT business enablement consultancy specializing in helping IT companies
build their Cloud go-to-market strategy.
Clients700+
Engagements140+
Countries29+
Continents5
Mission1
CONSALTA

David Balazic
• Chief Client Satisfier
• Senior Consultant
• Managing partner
• Entertainment industry
• Energy market
• Microsoft
• Consalta
• Electrical Engineering
• Sales and Marketing
• Executive MBA –
Business management
• Family
• Friends
• Sport
• Cloud computing 
ROLE@CONSALTA WORK
BACKGROUND PLEASURE

SMART BUSINESS
David Balazic, Consalta Ltd
WHY SHOULD YOU CARE ABOUT THE
CLOUD?

CHALLENGES of today’s IT
Application
architecture
Application
procurement
Application
usage
Changing
business
environment

CHALLENGE #1: today’s application architecture
APPLICATION: Business Logic, Code & Data
APPLICATION SOFTWARE: Web Servers, Databases, Messaging,
Workflow…
OPERATING SOFTWARE: Networking, Storage, Compute…
HARDWARE: Servers, Switches, Load Balancers etc…
EACH APPLICATION:
• Many hardware & software components to install, configure, manage
• Hardware and software is dedicated to the application
• Scaled and architected for worst possible scenario
• Always ON
• Multiple environments: Dev, Test, Pre-prod, Prod
BUSINESS VIEW:
EXPENSIVE
IN-FLEXIBLE
UNDER UTILIZED
TAKES TOO LONG

CHALLENGE #2: today’s application procurement
IT
Marketing
Finance
Sales

APRIL 2013MAY 2013JUNE 2013JULY 2014SEPTEMBER 2014

Hardware
Vendor
Software
Vendor
Services
Vendor
IT

CHALLENGE #3: today’s application usage
Predictable Bursting
Services with micro seasonality
trends
Peaks due to periodic
increased demand
IT complexity and wasted
capacity
Server/Software Cost
Unpredictable Bursting
Unexpected/unplanned peak in
demand
Sudden spike impacts
performance
Can’t over provision for extreme
cases
Growing Fast
Successful services needs to
grow/scale
Keeping up w/ growth is big IT
challenge
Cannot provision hardware fast
enough
On and Off
On & off workloads (e.g. batch
job)
Over provisioned capacity is
wasted
Time to market can be
cumbersome

• walmart.com
• target.com
• toysrus.com
• barnesandnoble.com
Source: Alexa
~4x normal load
(Holiday shopping)
Jan 2011 Jan 2012
• turbotax.com
• taxcut.com
• hrblock.com
• taxact.com
~10x normal load
(Tax season)
Jan 2011 Jan 2012
Source: Alexa
CHALLENGE #3: real world examples

CHALLENGE #4: Changing business environment
BUSINESS IS
INCREASINGLY
DEPENDENT OF IT
PRESSURE ON
BUDGETS AND RISK
OF INVESTING
CHANGING WORKING
ENVIRONMENT –
WORK FROM
ANYWHERE
GLOBAL
COMPETITION WITH
PRESSURE ON
PRODUCTIVITY

SMART BUSINESS
David Balazic, Consalta Ltd.
THE TRENDS

The world is changing has changed
SMAC generation – Social Mobile Analytics and Cloud
• 1,3 billion world’s
mobile worker
population will be
reached by 2015
• 65% of companies
are deploying at least
one social software
tool
MOBILITY SOCIAL
• 70% of business are
either using or
investigating cloud
computing solutions
CLOUD
• Big Data market is
growing 40% every
year to reach $17
billion by 2015
ANALYTICS
1,3B $17B70%65%

IDC Predictions 2015
IT Market Value Shifting to the 3rd Platform
• Worldwide ICT spending
– Worldwide ICT spending will grow
3.8% in 2015 to more than $3.8
trillion
• 3rd Platform will dominate growth
– The 3rd Platform will account for
one third of global ICT spending in
2015 and 100% of spending growth.
• 3rd Platform will cannibalize 2nd
Platform
– Spending on the 2nd Platform
expected to slip into recession by
the end of the year

IDC Predictions 2015
The 3rd Platform Disrupts All Industries
• 3rd Platform disruption in all
industries
– By 2018, 1/3 of share leaders in
virtually all industries will be
replaced by new and incumbent
3rd Platform players
• IT buyer profile continues to shift
to business executives
– In 2014, and through 2017, IT
spending by groups outside of IT
departments will grow at more
than 6% per year.
Source: IDC

Global Mobile Traffic as a % of Total Internet Traffic

GARTNER: Cloud computing 2014
Public Cloud services spending and growth
Source: Gartner

SMART BUSINESS
FINDING THE RIGHT BALANCE

Enterprise Cloud Adoption
Distilling hype from reality
Source: Everest Group & Cloud connect

IT market evolution
Service oriented business model
of IT delivery
Traditional IT
business model
Application
Streaming
Subscription
Local
Infrastructure
Subscription
Multi-Tenant
Platform
Subscription
Single-
Tenant
Platform
Subscription
Perpetual
Hosted
Platform
Perpetual
Local
Infrastructure
Alongside not
“instead of”
traditional business

GARTNER’s advice to the customer of IT
What Should You Do Tomorrow!
Source: Gartner

Common Discussions
• Websites
• Mobile Apps
• “Gamification”
• Marketing
Campaigns
• Finance Projects
• Going global
• Reaching a new
demographic
• Cost/financial
optimization
• Way to align IT
department to
business
dynamics
• Identify
antiquated
systems
• Alleviate
bottlenecks

Benefit 1. Flexibility
• In technology world constant is the
only change. Yes, you heard it right.
• Demands of a business change with
time and so does the cloud-based
solution. Don’t worry as it won’t
raise your TCO (total cost of
ownership) budget.

Benefit 2. Disaster recovery
• Say goodbye to complex disaster
recovery plans. Businesses relying
on cloud computing enjoy four
times faster data recovery that their
counterparts.
• Interestingly, mid-sized businesses
had the best recovery times of all,
taking almost half the time of larger
companies to recover.

Benefit 3. Automatic software updates
• New productivity features, security
patches and updates are
automatically added to a business
suite.
• Free up your critical time and
resources for other tasks.

Benefit 4: Cap-Ex Free
• Much lower upfront cost. Just pay
for what you use and in a monthly
or annual subscription.
• Reduce project start-up costs and
predictable ongoing operating
expenses.

Benefit 5: Increased collaboration
• Unleash the power of WE. Let your
people work together and drive
growth.
• Companies investing in
collaboration technology had a
400% return on investment.

Benefit 6: Work from anywhere
• “42% of working adults would give
up some of their salary if they could
telecommute, and on average they
would take a 6% pay cut”, say
experts.
• Work from home or BYOD – support
everything & fuel productivity

Benefit 7: Better control
• "73% of knowledge workers
collaborate with people in different
time zones and regions at least
monthly" – believes Adobe.
• With cloud computing in place all
files & documents are available in a
central location to be accessed by
every authorized user. Thus,
improve collaboration, increase
efficiency and push ROI.

Benefit 8: Security
• “800,000 laptops are lost each year
at airports alone. Something really
horrible resulting in data loss”
quoted businessweek.com
• Say NO to data loss with cloud
computing.

Benefit 9: Competitiveness
• “Organizations adopting cloud
reported almost double the revenue
growth and nearly 2.5 times higher
gross profit growth than
counterparts” – says IBM
• Offer enterprise-class technology to
your workforce.

Benefit 10: Environmentally friendly
• “Adopting cloud computing results
in at least 30% less energy
consumption and carbon emissions
than using on-site servers” – believe
environmentalists.
• Decrease carbon footprint and save
EARTH.

Cloud services from a CUSTOMER perspective
BENEFITS
• Faster deployment and time to market (less
local installation and maintenance)
• Service based pricing (pay per “usage”)
• Less Financial risk & easier budgeting (lower
up-front costs & predictability)
• Reduced need for on premise resources
(servers, IT staff & skills)
• Easier upgrades (no/less on-premise software
to update)
• Affordable ad-hoc capacity (short term projects,
initiatives on departmental level…)
• Clarified provider responsibility (support,
maintenance…)
RISKS
• Requires trust in Cloud services provider
(availability and data security)
• Legal or regulatory concerns (data outside
customer’s premises)
• Loss of control & internal resources
• Can be harder to integrate (with existing on-
premises applications)
• Understanding the value (lower costs, CAPEX vs
OPEX…)
• Can have lower performance (versus on
premises deployments)

SMART BUSINESS
GOOD PRACTICES

Case study - Ministry of Education RO
Business Situation
• The Romanian Ministry of Education wanted an essential website
to perform well each July, when high school entrance exam results
were posted there.
Solution
• The ADLIC website was moved to Windows Azure for its cloud
compute resources, using Microsoft SQL Azure as the cloud
database service. This was schedule for the busy summer month’s
only and the website would run in the ministry’s data center for
the rest of the year.
Benefits
• Cost-effective performance scalability
• Improved Reliability and Availability
• Huge savings
• Turn on to scale up, turn off when not in use
• Student data stored in Ministry Data Center

Case Study – Škoda Auto

Case study - EasyJet Hybrid App
Business Situation
• easyJet wanted to reduce its dependence on expensive airport service-desk
technology and better serve customers by equipping roving agents with mobile
devices.
Solution
• easyJet used Windows Azure Service Bus to create a highly secure mobile service–
delivery platform to open up corporate applications to mobile devices at airports
all over Europe.
Benefits
• Significant anticipated saving
• Improved customer service
• Faster innovation
• Massive scalability
• High availability, data security

Case study - Slovenska industrija jekla
Business Situation
• Slovenian Steel Group (SIJ) and its six affiliate companies had
separate IT departments and maintained different email systems.
Managing such a vast IT infrastructure was drawing resources
away from core business activities
Solution
• SIJ and its affiliates migrated their IT systems to Microsoft Office
365, a cloud-based service, enabling them to focus on their core
business activities, improve communications, reduce costs, and
enhance productivity.
Benefits
• The adoption of Office 365 has enabled the SU to
• Streamline IT operations and focus on core business activities
• Improve communications
• Decrease in infrastructure costs
• and enhance productivity.

Next steps
1. Kickoff and explore
– Consultative call with Cloud Client Executive and Cloud Engineers
2. Identify
– Partner specific virtual or on-site consultations
3. Strategize
– Initiate strategic engagements customer/partner for in-depth plan development
4. Gather
– Business and technical use cases/requirements
5. Prioritize
– 2-3 day workshops available to jump-start your initiatives
6. Understand and decide
– Navigation across options to make the most informed decision with maximum value delivered to
your business
The foundation of a great Cloud plan starts with a business strategy and goals

Consalta’s experience with IT-as-a-Service
Need Solution Access
Cost per employee /
per month
Productivity and
Collaboration tools
Office365 with
OneDrive for
Business
Anywhere
(all devices)
12 €
Safely keeping documents
and files available to all team
members
Dropbox
(5.000Gb)
Anywhere
(all devices)
15 €
Customer Relationship
Management and more…
Base
Anywhere
(all devices)
13 €
SUM 40 €

Contact us
David Balazic, MBA
e: david.balazic@consalta.si
m: +386 31 699 622
Skype: davidb-consalta
in: http://si.linkedin.com/in/davidbalazic/
www.consalta.si
Samo Kanellopulos, MBA
e: samo.kanellopulos@consalta.si
m: +386 41 745 164
Skype: samok-consalta
in: http://si.linkedin.com/in/samokanellopulos

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