Pricing Models for Cloud Computing Services, a SurveyEditor IJCATR
Recently, citizens and companies can access utility computing services by using Cloud Computing. These services such as
infrastructures, platforms and applications could be accessed on-demand whenever it is needed. In Cloud Computing, different types of
resources would be required to provide services, but the demands such as requests rates and user's requirements of these services and
the cost of the required resources are continuously varying. Therefore, Service Level Agreements would be needed to guarantee the
service's prices and the offered Quality of Services which are always dependable and interrelated to guarantee revenues maximization
for cloud providers as well as improve customers' satisfaction level. Cloud consumers are always searching for a cloud provider who
provides good service with the least price, so Cloud provider should use advanced technologies and frameworks to increase QoS, and
decrease cost. This paper provides a survey on cloud pricing models and analyzes the recent and relevant research in this field.
Exploring potential of ng cost of infrastructure m skilton sept 23 2014 v1Mark Skilton
Next generation digital ecosystems and the impact of costs and monetization strategies. Part of the Next Generation Infrastructure Forum, Ovumn, London September 23, 2014
This document discusses satellite managed services, which refers to proactively managing customers' satellite networks end-to-end through ongoing monitoring and maintenance according to service level agreements. The benefits of this model include allowing companies to focus on their core business instead of network operations, providing predictable costs through monthly fees, and reducing capital investment needs through outsourcing expertise. As satellite networks become more complex with new technologies like high throughput satellites, the value of outsourcing network management to expert providers will increase.
IBM and Jamcracker have partnered to provide communication service providers with a cloud service brokerage solution that allows them to aggregate their own cloud services with those of third parties and offer unified delivery, management, billing and support for customers. The solution enables service providers to transform into cloud service providers and generate new revenue streams through cloud service delivery and management. It provides a single platform for provisioning, authentication, access management and support across various cloud offerings.
The document discusses the opportunity for unified service delivery to SMB and SME markets. It notes that SMB IT spending is increasing faster than large enterprises and that 75% of North American SMBs subscribe to bundled services for lower costs and single sourcing. Unified service delivery provides customers a one-stop shop, providers increased stickiness and ARPU, and solution vendors an expanded distribution channel through bundling existing offerings.
How Cloud Service Providers Can Effectively Monetize and Deliver the Ultimate...Comverse, Inc.
1. CSPs face challenges in monetizing cloud services including becoming a commodity, poor client satisfaction from billing, and missed revenue opportunities.
2. Effective monetization is key to minimizing risks, developing sustainable business models, and creating market differentiation for CSPs.
3. Billing models for CSPs must be flexible, value-based, and reflective of dynamic consumption patterns to meet enterprise needs and avoid issues like "bill shock".
This document discusses how next generation cloud technology can help service providers compete in the business broadband market for small and medium enterprises (SMEs) and distributed enterprises. It notes that price erosion has led to commoditization of broadband services, impacting revenues. Cloud services that efficiently and profitably deliver security and infrastructure management services can help differentiate providers and attract customers. Critical factors for successful cloud services include flexibility, ease of use, scalability, and centralized delivery from any device.
ADAPTIVE MULTI-TENANCY POLICY FOR ENHANCING SERVICE LEVEL AGREEMENT THROUGH R...IJCNCJournal
The appearance of infinite computing resources that available on demand and fast enough to adapt with
load surges makes Cloud computing favourable service infrastructure in IT market. Core feature in Cloud
service infrastructures is Service Level Agreement (SLA) that led seamless service at high quality of service
to client. One of the challenges in Cloud is providing heterogeneous computing services for the clients.
With the increasing number of clients/tenants in the Cloud, unsatisfied agreement is becoming a critical
factor. In this paper, we present an adaptive resource allocation policy which attempts to improve
accountable in Cloud SLA while aiming for enhancing system performance. Specifically, our allocation
incorporates dynamic matching SLA rules to deal with diverse processing requirements from
tenants.Explicitly, it reduces processing overheadswhile achieving better service agreement. Simulation
experiments proved the efficacy of our allocation policy in order to satisfy the tenants; and helps improve
reliable computing.
Pricing Models for Cloud Computing Services, a SurveyEditor IJCATR
Recently, citizens and companies can access utility computing services by using Cloud Computing. These services such as
infrastructures, platforms and applications could be accessed on-demand whenever it is needed. In Cloud Computing, different types of
resources would be required to provide services, but the demands such as requests rates and user's requirements of these services and
the cost of the required resources are continuously varying. Therefore, Service Level Agreements would be needed to guarantee the
service's prices and the offered Quality of Services which are always dependable and interrelated to guarantee revenues maximization
for cloud providers as well as improve customers' satisfaction level. Cloud consumers are always searching for a cloud provider who
provides good service with the least price, so Cloud provider should use advanced technologies and frameworks to increase QoS, and
decrease cost. This paper provides a survey on cloud pricing models and analyzes the recent and relevant research in this field.
Exploring potential of ng cost of infrastructure m skilton sept 23 2014 v1Mark Skilton
Next generation digital ecosystems and the impact of costs and monetization strategies. Part of the Next Generation Infrastructure Forum, Ovumn, London September 23, 2014
This document discusses satellite managed services, which refers to proactively managing customers' satellite networks end-to-end through ongoing monitoring and maintenance according to service level agreements. The benefits of this model include allowing companies to focus on their core business instead of network operations, providing predictable costs through monthly fees, and reducing capital investment needs through outsourcing expertise. As satellite networks become more complex with new technologies like high throughput satellites, the value of outsourcing network management to expert providers will increase.
IBM and Jamcracker have partnered to provide communication service providers with a cloud service brokerage solution that allows them to aggregate their own cloud services with those of third parties and offer unified delivery, management, billing and support for customers. The solution enables service providers to transform into cloud service providers and generate new revenue streams through cloud service delivery and management. It provides a single platform for provisioning, authentication, access management and support across various cloud offerings.
The document discusses the opportunity for unified service delivery to SMB and SME markets. It notes that SMB IT spending is increasing faster than large enterprises and that 75% of North American SMBs subscribe to bundled services for lower costs and single sourcing. Unified service delivery provides customers a one-stop shop, providers increased stickiness and ARPU, and solution vendors an expanded distribution channel through bundling existing offerings.
How Cloud Service Providers Can Effectively Monetize and Deliver the Ultimate...Comverse, Inc.
1. CSPs face challenges in monetizing cloud services including becoming a commodity, poor client satisfaction from billing, and missed revenue opportunities.
2. Effective monetization is key to minimizing risks, developing sustainable business models, and creating market differentiation for CSPs.
3. Billing models for CSPs must be flexible, value-based, and reflective of dynamic consumption patterns to meet enterprise needs and avoid issues like "bill shock".
This document discusses how next generation cloud technology can help service providers compete in the business broadband market for small and medium enterprises (SMEs) and distributed enterprises. It notes that price erosion has led to commoditization of broadband services, impacting revenues. Cloud services that efficiently and profitably deliver security and infrastructure management services can help differentiate providers and attract customers. Critical factors for successful cloud services include flexibility, ease of use, scalability, and centralized delivery from any device.
ADAPTIVE MULTI-TENANCY POLICY FOR ENHANCING SERVICE LEVEL AGREEMENT THROUGH R...IJCNCJournal
The appearance of infinite computing resources that available on demand and fast enough to adapt with
load surges makes Cloud computing favourable service infrastructure in IT market. Core feature in Cloud
service infrastructures is Service Level Agreement (SLA) that led seamless service at high quality of service
to client. One of the challenges in Cloud is providing heterogeneous computing services for the clients.
With the increasing number of clients/tenants in the Cloud, unsatisfied agreement is becoming a critical
factor. In this paper, we present an adaptive resource allocation policy which attempts to improve
accountable in Cloud SLA while aiming for enhancing system performance. Specifically, our allocation
incorporates dynamic matching SLA rules to deal with diverse processing requirements from
tenants.Explicitly, it reduces processing overheadswhile achieving better service agreement. Simulation
experiments proved the efficacy of our allocation policy in order to satisfy the tenants; and helps improve
reliable computing.
Cloud is one of that kind of digital services that is already here and materialized. Cloud services landscape is becoming more and more dense but still there is a chance for telecom players to take part in that field. Unfortunately, Communication Service Providers are late to come in and therefore it is not sufficient to put computing capacities and just sell them anymore. The economy of scale reached by current industry leaders can barely be beaten even by the largest CSPs. Therefore, some other smarter options should be found to compete with likes of Amazon, Microsoft and Google. This ppt paper is just an effort to think of CSPs role in cloud services domain and any ideas and suggestions for further discussion is very welcome.
Thank you!
This document discusses how business model innovation for digital enterprises can be supported through the use of value models. It describes a modeling language called VDML (Value Delivery Modeling Language) that provides an underlying representation of business model innovation frameworks. VDML allows for the representation of value networks and business activity networks to support business model innovation. The document outlines how VDML relates to other areas like product, process and service innovation and how it can support business model analysis and simulation through a cloud-based platform.
1) The document proposes an agent-based economic model for analyzing interactions between consumers and clouds (consumer-to-cloud) and between clouds (cloud-to-cloud) in an intelligent intercloud system.
2) For consumer-to-cloud interactions, a novel negotiation protocol and strategy called adaptive concession rate (ACR) and minimally sufficient concession (MSC) is developed.
3) For cloud-to-cloud interactions, a four-stage interaction protocol and strategies for cloud agents that result in coalition formation and fair division of payoffs are developed.
In this e-zine, we’ve assembled fresh thinking and ideas about the solutions and services that create revenue opportunities and support emerging business models for providers.
1. Service science, management, and engineering (SSME) is an interdisciplinary approach to studying, designing, and implementing complex service systems.
2. SSME aims to make productivity, quality, compliance, sustainability, learning rates, and innovation more predictable for organization-to-organization services.
3. There are several frameworks for conceptualizing service systems, including considering the front stage customer experience separately from the back office operations.
The document discusses various business models for mobile operators to generate revenue through monetizing subscriber data. It outlines moving from a carrier-centric to a user-centric model where operators form ecosystems to share revenue. A monetization integrated model is proposed to target customer segments with propositions based on usage data to increase ROI. Co-opetition as a strategy is discussed where operators cooperate to enlarge the market but compete on market share. Ideas for revenue-sharing models and cooperative awareness campaigns are provided.
This document discusses using soft computing techniques to evaluate coordination in supply chains. It proposes a fuzzy analytic hierarchy process (FAHP) model to measure the extent of coordination (EC) based on four coordination mechanisms: contracts, information sharing, information technology, and joint decision making. The EC is calculated as a weighted sum of the crisp scores of the four mechanisms, where the weights are determined from pairwise comparisons in the AHP. The model provides a way to quantitatively assess coordination across a supply chain and analyze different coordination scenarios. It is demonstrated through a numerical example involving order quantities and performance measures at different supply chain levels.
This white paper discusses various models for telecom operators to optimize their tower assets through sharing arrangements. It identifies six main business models for tower sharing, ranging from regulated facilities sharing, where regulators force dominant operators to share towers, to independent tower companies and tailored transactions. The key driver for success is achieving a tenancy ratio above 1.5 tenants per tower to ensure positive returns. Factors like regulatory environment, market dynamics, and the operator's objectives will determine the optimal transaction structure in each case.
Broadband service quality - rationing or markets?Martin Geddes
"Net neutrality" is implicitly framed as a debate over how to deliver an equitable ration of quality to each broadband user and application. This is the wrong debate to have, since it is both technically impossible and economically unfair. We should instead be discussing how to create a transparent market for quality that is both achievable and fair.
The document discusses the UK Public Sector ICT Strategy and the Public Sector Network (PSN) vision. The PSN aims to create a single, seamless network for the public sector through common standards and procurement. This will improve interoperability, drive efficiency savings, and create a new marketplace for network services. The PSN is expected to reduce costs by up to 34% annually (£500M) through reduced duplication and more intelligent procurement.
This document discusses service strategy and how cloud computing will shape future IT service strategies. It notes that service strategy provides guidance on prioritizing investments to improve services over the long term. The cloud allows services to be provided on-demand over the internet on a pay-per-use basis, giving customers flexibility and scalability. Cloud services have characteristics like on-demand access, resource pooling, rapid elasticity, and usage monitoring. The document outlines the types and components of cloud services, including software as a service, platform as a service, infrastructure as a service, private cloud, public cloud, and hybrid cloud models. It emphasizes that service strategy and governance are important for defining cloud service standards, content, and delivery mechanisms.
Because successful Innovation is new to so much of the business, it makes us think about how to manage it with a "new" process. But ultimately, the secret to making innovation really meaningful could lie in teaching the new dogs old tricks.
This presentation is on importance on Cloud Computing, Service Delivery Platforms in shaping the service delivery and consumption in a networked world, detailing how cloud and SDP solution providers should address the market requirements and how to sell such solutions to both to Operators and Enterprises, it is generic in nature but applies to specific issues in North America and Latin America.
This is about networked future, that applications ( services) to consumers what will be driving revenue for any business in the future. Connectivity will soon become a commodity, The future is in how one can address end users service demands in a cost efficient, dynamic, efficient and specialized way with evolving technology and requirements of speed and flexibility, and interoperability. On Anywhere, Anytime, Any device.
This Presentation was done to HP CMS Management in January 2013
Service performance and analysis in cloud computing extened 2Abdullaziz Tagawy
This is a study to the research paper (Service Performance and Analysis in Cloud Computing) by Kaiqi Xiong and Harry Perros in the class related to the course of EC636 Stochastic and Random Process in Tripoli University-Engineering faculty-Computer Engineering Department.
You can find this paper in (https://ieeexplore.ieee.org/document/5190711)
Superfast or superfit? The case for UK broadband policy reformMartin Geddes
This is a critical moment for UK digital infrastructure policy. The context is one of rapid political, market and technological change. As a nation, we face important decisions over topics like post-Brexit regulation, universal service delivery, Openreach independence, TETRA replacement and 5G readiness. The imperative is to reflect on whether our historic approaches will meet our future needs. Where we anticipate a shortfall, we must act to protect our long-term national interest.
This paper aims to educate policymakers about one specific shortfall: the growing ‘capability gap’ between broadband demand and supply.
It makes two recommendations.
This unwanted situation is avoidable by two readily attainable changes in our policy approach.
Firstly, our policy metrics need to reflect the readiness of broadband infrastructure to support both present and future demand.
Secondly, the money needs to move to incentivise the right market behaviours to create a correspondingly fit-for-purpose supply.
When these reforms are enacted together, this will help to position the UK with a world-class infrastructure ready to attract capital and talent on a global scale.
Capgemini cloud expoeurope jan 25 2012 m skilton v1.4Mark Skilton
The document discusses cloud computing and provides examples of cloud implementations. It begins with an overview of cloud computing trends globally and how cloud is evolving around the world. It then provides examples of four cloud implementations:
1) InnoEnergy, a pan-European energy innovation platform built on a cloud-based collaboration platform.
2) Information Pool, a Dutch emergency response data sharing system that enables agencies to exchange data on a single cloud platform.
3) A UK Department for Education implementation of a large Microsoft SharePoint platform to support information management and collaboration.
4) eProcurement Scotland, a multi-agency procurement solution used across the Scottish public sector that evolved into a private cloud platform.
Knowing where the safe zone is ovum october 22 2013 Mark Skilton
2nd Annual Identity and Access Management Conference - Ovum Forum 22 October 2013 , London. Dissuccing concepts and examples of Identity management perimeterization.
Cloud is one of that kind of digital services that is already here and materialized. Cloud services landscape is becoming more and more dense but still there is a chance for telecom players to take part in that field. Unfortunately, Communication Service Providers are late to come in and therefore it is not sufficient to put computing capacities and just sell them anymore. The economy of scale reached by current industry leaders can barely be beaten even by the largest CSPs. Therefore, some other smarter options should be found to compete with likes of Amazon, Microsoft and Google. This ppt paper is just an effort to think of CSPs role in cloud services domain and any ideas and suggestions for further discussion is very welcome.
Thank you!
This document discusses how business model innovation for digital enterprises can be supported through the use of value models. It describes a modeling language called VDML (Value Delivery Modeling Language) that provides an underlying representation of business model innovation frameworks. VDML allows for the representation of value networks and business activity networks to support business model innovation. The document outlines how VDML relates to other areas like product, process and service innovation and how it can support business model analysis and simulation through a cloud-based platform.
1) The document proposes an agent-based economic model for analyzing interactions between consumers and clouds (consumer-to-cloud) and between clouds (cloud-to-cloud) in an intelligent intercloud system.
2) For consumer-to-cloud interactions, a novel negotiation protocol and strategy called adaptive concession rate (ACR) and minimally sufficient concession (MSC) is developed.
3) For cloud-to-cloud interactions, a four-stage interaction protocol and strategies for cloud agents that result in coalition formation and fair division of payoffs are developed.
In this e-zine, we’ve assembled fresh thinking and ideas about the solutions and services that create revenue opportunities and support emerging business models for providers.
1. Service science, management, and engineering (SSME) is an interdisciplinary approach to studying, designing, and implementing complex service systems.
2. SSME aims to make productivity, quality, compliance, sustainability, learning rates, and innovation more predictable for organization-to-organization services.
3. There are several frameworks for conceptualizing service systems, including considering the front stage customer experience separately from the back office operations.
The document discusses various business models for mobile operators to generate revenue through monetizing subscriber data. It outlines moving from a carrier-centric to a user-centric model where operators form ecosystems to share revenue. A monetization integrated model is proposed to target customer segments with propositions based on usage data to increase ROI. Co-opetition as a strategy is discussed where operators cooperate to enlarge the market but compete on market share. Ideas for revenue-sharing models and cooperative awareness campaigns are provided.
This document discusses using soft computing techniques to evaluate coordination in supply chains. It proposes a fuzzy analytic hierarchy process (FAHP) model to measure the extent of coordination (EC) based on four coordination mechanisms: contracts, information sharing, information technology, and joint decision making. The EC is calculated as a weighted sum of the crisp scores of the four mechanisms, where the weights are determined from pairwise comparisons in the AHP. The model provides a way to quantitatively assess coordination across a supply chain and analyze different coordination scenarios. It is demonstrated through a numerical example involving order quantities and performance measures at different supply chain levels.
This white paper discusses various models for telecom operators to optimize their tower assets through sharing arrangements. It identifies six main business models for tower sharing, ranging from regulated facilities sharing, where regulators force dominant operators to share towers, to independent tower companies and tailored transactions. The key driver for success is achieving a tenancy ratio above 1.5 tenants per tower to ensure positive returns. Factors like regulatory environment, market dynamics, and the operator's objectives will determine the optimal transaction structure in each case.
Broadband service quality - rationing or markets?Martin Geddes
"Net neutrality" is implicitly framed as a debate over how to deliver an equitable ration of quality to each broadband user and application. This is the wrong debate to have, since it is both technically impossible and economically unfair. We should instead be discussing how to create a transparent market for quality that is both achievable and fair.
The document discusses the UK Public Sector ICT Strategy and the Public Sector Network (PSN) vision. The PSN aims to create a single, seamless network for the public sector through common standards and procurement. This will improve interoperability, drive efficiency savings, and create a new marketplace for network services. The PSN is expected to reduce costs by up to 34% annually (£500M) through reduced duplication and more intelligent procurement.
This document discusses service strategy and how cloud computing will shape future IT service strategies. It notes that service strategy provides guidance on prioritizing investments to improve services over the long term. The cloud allows services to be provided on-demand over the internet on a pay-per-use basis, giving customers flexibility and scalability. Cloud services have characteristics like on-demand access, resource pooling, rapid elasticity, and usage monitoring. The document outlines the types and components of cloud services, including software as a service, platform as a service, infrastructure as a service, private cloud, public cloud, and hybrid cloud models. It emphasizes that service strategy and governance are important for defining cloud service standards, content, and delivery mechanisms.
Because successful Innovation is new to so much of the business, it makes us think about how to manage it with a "new" process. But ultimately, the secret to making innovation really meaningful could lie in teaching the new dogs old tricks.
This presentation is on importance on Cloud Computing, Service Delivery Platforms in shaping the service delivery and consumption in a networked world, detailing how cloud and SDP solution providers should address the market requirements and how to sell such solutions to both to Operators and Enterprises, it is generic in nature but applies to specific issues in North America and Latin America.
This is about networked future, that applications ( services) to consumers what will be driving revenue for any business in the future. Connectivity will soon become a commodity, The future is in how one can address end users service demands in a cost efficient, dynamic, efficient and specialized way with evolving technology and requirements of speed and flexibility, and interoperability. On Anywhere, Anytime, Any device.
This Presentation was done to HP CMS Management in January 2013
Service performance and analysis in cloud computing extened 2Abdullaziz Tagawy
This is a study to the research paper (Service Performance and Analysis in Cloud Computing) by Kaiqi Xiong and Harry Perros in the class related to the course of EC636 Stochastic and Random Process in Tripoli University-Engineering faculty-Computer Engineering Department.
You can find this paper in (https://ieeexplore.ieee.org/document/5190711)
Superfast or superfit? The case for UK broadband policy reformMartin Geddes
This is a critical moment for UK digital infrastructure policy. The context is one of rapid political, market and technological change. As a nation, we face important decisions over topics like post-Brexit regulation, universal service delivery, Openreach independence, TETRA replacement and 5G readiness. The imperative is to reflect on whether our historic approaches will meet our future needs. Where we anticipate a shortfall, we must act to protect our long-term national interest.
This paper aims to educate policymakers about one specific shortfall: the growing ‘capability gap’ between broadband demand and supply.
It makes two recommendations.
This unwanted situation is avoidable by two readily attainable changes in our policy approach.
Firstly, our policy metrics need to reflect the readiness of broadband infrastructure to support both present and future demand.
Secondly, the money needs to move to incentivise the right market behaviours to create a correspondingly fit-for-purpose supply.
When these reforms are enacted together, this will help to position the UK with a world-class infrastructure ready to attract capital and talent on a global scale.
Capgemini cloud expoeurope jan 25 2012 m skilton v1.4Mark Skilton
The document discusses cloud computing and provides examples of cloud implementations. It begins with an overview of cloud computing trends globally and how cloud is evolving around the world. It then provides examples of four cloud implementations:
1) InnoEnergy, a pan-European energy innovation platform built on a cloud-based collaboration platform.
2) Information Pool, a Dutch emergency response data sharing system that enables agencies to exchange data on a single cloud platform.
3) A UK Department for Education implementation of a large Microsoft SharePoint platform to support information management and collaboration.
4) eProcurement Scotland, a multi-agency procurement solution used across the Scottish public sector that evolved into a private cloud platform.
Knowing where the safe zone is ovum october 22 2013 Mark Skilton
2nd Annual Identity and Access Management Conference - Ovum Forum 22 October 2013 , London. Dissuccing concepts and examples of Identity management perimeterization.
Digital security and the IT Department cw500 M Skilton May 22 2014 London v1Mark Skilton
“Data protection, privacy and the IT department – how to manage the proliferation of data in your organisation”
Hosted by Brian Glick, Editor-in-Chief Computer Weekly.
Speaker lineup
Mark Skilton, Professor of Practice Information Systems and Management at Warwick Business School
Mike Cope, IT Director at University College London
Keith Bucknall, Head of Strategy, Architecture & Infrastructure at Equity Insurance Group
The CW500 Club from Computer Weekly is a private members’ club for senior IT professionals and leading industry figures. Membership is by invitation only and allows access to premium content for IT leaders and a monthly networking event held at the Waldorf Hilton
Aldwych, London, WC2B 4DD
Visualization of an digital ecosystem capgemini m skilton v1Mark Skilton
Presentation on Digital ecosystem visualizatio and design using CIEL Cloud Intercative Ecosystem Lanuage concepts and approaches. The ideas support next generation cloud enables digital ecosystem design, multi-service XaaS, multi-systems vision design and Internet of Things concepts.
Role of data integration in enabling your digital business march 18 12 noon v1Mark Skilton
This document discusses the role of data integration in enabling digital business. It begins with an agenda for the session which includes exploring thought leadership on the impact of digitization and data integration. The document then discusses how digitization is affecting various industries and trends in technologies like mobile, social, cloud, and big data. It emphasizes that digital solutions need to be designed holistically and in context of the customer experience and business processes. The final sections provide a case study on how to think of a business holistically as a digital business and how this shifts the business model and value creation.
Building a digital enterprise – some practitoner views M.Skilton may 2015 v2Mark Skilton
The session discusses current digital maturity readiness, followed by three examples of digital business models and concludes with an exploration of next generation spatial-temporal transformational thinking for digital ecosystem design.
• “Digital barometer” showing the leadership, cultural and organizational challenges facing businesses and practitioners as they grapple with the “digital economy” paradigm shift.
• Examples of a Digital Business Model and its ramifications for the marketplace and the wider technological, economic and social ecosystem. - Hilton International, Coca Cola Enterprise, MasterCard
• Some concluding remarks will explore the challenges and opportunities that practitioners are looking for answers and direction for best practices in digital business.
Creating value in the digital economy Prof Mark Skilton May 2014 Mark Skilton
The concepts of digitization, the digital economy and digital architecture prafctices for value creation. The talk covers the following topics
-Physical economy, digital economy and role of digital -ecosystems
-Multisided market platforms (MSPs)
-Open Platform 3.0TM
-Generative Platforms and Modular architecture
-Design Lessons
The rise of digital ecosystems m skilton june 11 2014 conected suplychain li...Mark Skilton
The rise of digital ecosystems explores how digitial technologies are changing the shape of enterprises. The emergence of new spatial-time workspaces are being created by digital technologies that are transforming physical suppl chains into new forms of digital enterprise.
Capgemini Cloud Assessment is a Cloud agnostic, vendor aware methodology that focuses on low risk, high return business transformation. Additionally, it reduces TCO and provides an early view of ROI.
This closed loop assessment leverages pre-built accelerators such as ROI calculators, risk models and portfolio analyzers utilizing our deep partner ecosystem. We deliver an end state architecture, business case and deployment roadmap in just six to eight weeks.
Digital transformation and the role of cloud computing Capgemini Mark Skilt...Mark Skilton
This document discusses digital transformation and the role of cloud computing. It begins with an overview of the unprecedented pace of change and how technology shifts are not incremental. It then provides examples from a Capgemini report on cloud adoption trends. The remainder of the document focuses on a case study of a large pharmaceutical company exploring a cloud strategy to address business needs and challenges around dynamic workloads, operating pressures, and stakeholders. It discusses considerations around security, operating models, roadmaps, service models, and the right type of cloud computing model.
The connected economy mark skilton july 15 bright talk v2Mark Skilton
This document discusses building data value in the connected economy and provides insights and practical examples. It covers topics like the shifting value of data, new business models driven by data analytics in industries like payments and ebooks. It also discusses tools and models for monetizing digital businesses by leveraging customer data through platforms and experiences across physical and digital spaces. Practical approaches are presented for understanding industry economics and designing digital enterprises.
Big data and digital ecosystem mark skilton jan 2014 v1Mark Skilton
The convergence of data and technology in business has created a range of digital experiences that are revolutionizing all industries and organization.
This is not just a “top and tail” exercise of innovation and development resulting in quick fixes for parts of your organization to launch marketing services on a mobile device or data analysis but needs to be taken into a serious framework for your operating strategy that drives all touch points in the front and back of your organization. Often “technoconfusion” is created or even encouraged with lots of technologies and integration layers which result in a piecemeal digital strategy for business performance and an ineffective business case and governance process. Often the results are seen in lack of data visibility, increasing costs of platform integration and complex services and contractual issues limiting longer term choice.
The realities of the digital world are more subtle and expansive in 2014 and beyond; the old style of layers of technology is giving way to a new era of digital modularity of systems and devices that enable generative business growth effects from self-service and massive scaled social and marketplace services. This is born out with the exponential scaling of open APIs, massive data and social networking and the growth of a range of internet enabled modular devices and cloud enabled platforms.
Takeaways
§ This session looks at the trends driving industry today.
§ It introduces work on the Open Platform 3.0 from the open group. http://www.opengroup.org/subjectareas/platform3.0
§ It includes an analysis of trends in technology and the emerging patterns and roles of big data in an end to end operating context of your organization.
§ We conclude with a modern framework for a modular and generative digital ecosystem strategy and the focus for next generation platforming and services.
1. The document discusses how cloud computing represents a paradigm shift that changes how applications are developed, deployed, maintained, and consumed. It allows companies to access IT resources at a lower cost with more flexibility.
2. It outlines four success factors for European ICT providers to succeed in the cloud economy: understanding cloud as an ecosystem, leveraging large networks, benefiting from small/medium enterprises, and supportive industry policies.
3. The recommendations are to create a common EU legal framework for clouds, support a European cloud computing standard, promote cloud research, support cloud adoption by SMEs, position the public sector as pioneering users, and maintain progress.
Closing the gap in your cloud ecosystem capgemini mark skilton v1Mark Skilton
The presentation discusses various gaps that exist between the current state of cloud computing technologies and ecosystems and their potential. It identifies gaps in areas such as standards, portability, integration, security and vertical industry adoption. It argues that closing these gaps will require continued evolution of standards to improve semantics, usability, and data portability across heterogeneous cloud solutions and systems.
El documento describe el trabajo del Grupo GRIAL de la Universidad de Salamanca y su enfoque en los ecosistemas tecnológicos y la educación abierta. El Grupo GRIAL es interdisciplinario e investiga temas como sistemas de aprendizaje interactivo, tecnologías para el aprendizaje, web semántica y metodologías de aprendizaje en línea. También se discuten los conceptos de ecología, ecosistemas tecnológicos y educación abierta, destacando la importancia de compartir el conocimiento
This document discusses cloud computing and its impact on IT organizations. Some key points:
- Cloud computing enables pay-for-use models, flexibility over rigid investments, and quicker implementation of business applications. It is driving a major shift from on-premise to cloud-based services.
- By 2015, over half of new enterprise IT spend and over 60% of new workloads are expected to be cloud-based or hybrid. SaaS is driving adoption while PaaS enables custom solutions.
- Cloud providers like Amazon Web Services, Google Apps, and Salesforce innovate rapidly with new features and services released frequently. This continuous innovation model contrasts with traditional enterprise IT.
- Moving to
New Business Models in the Digital EcosystemNUS-ISS
1) Irene C L Ng is a professor of marketing and service systems at the University of Warwick who studies new business models in the digital ecosystem.
2) She discusses how value is created contextually through the competency and availability of offerings to enable resources for customers. Ownership is no longer the only way for customers to access value from products and services.
3) Ng analyzes how business models must change in the digital economy, using the music industry as an example, to remain tightly coupled with customer consumption contexts and experience spaces where value is created.
This document outlines a presentation on designing business models and business ecosystems. The presentation covers modeling your own business and common business models using frameworks like the business model canvas. It also discusses modeling your business ecosystem and provides key lessons. Sample slides are provided that define business model frameworks, compare different frameworks, and provide guiding questions for using the business model canvas to model a business. Common business models like one-time sales and subscription models are illustrated using the business model canvas.
This document discusses ecosystems and digital business models. It provides examples of how Apple and Google built large app ecosystems through their iOS and Android platforms. It describes how ecosystems create "black oceans" where competition is nearly impossible. It introduces the concept of asymmetric business models, where companies generate profits in a different industry than where they create value. The document presents a three-step recipe for digital business models and provides examples from Apple, Google, Amazon, and WeChat.
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Identifying successful business models to drive monetization of your cloud service capgemini mark skilton v1
1. Identifying successful business models to drive
monetization of your cloud service
Mark Skilton
CloudExpo2011 West
November 2011
2. | Infrastructure Services
Agenda
Identify how to target growth markets and value propositions for
cloud business models
Introduce a monetization strategies framework for targeting
successful ROI from cloud computing
Identify real examples of business models to take existing traditional
and cloud services towards improved business performance and
cash-flow
2
4. | Infrastructure Services
On-demand characteristics
Communities,
Markets &
Channels
Incremental
Demand
Homogeneous/
Heterogeneous
Platforms &
Business
Environments
12
11
10
9
8
7
6
5
4
3
2
1
Individual
Demand
Aggregate
Demand
Time
Service use, user churn
Consumer/ Buyer
Community size
Number
of Vertices (Nodes)
Number of
User Relationships
Number of channels / access to service
Number of interacting relationships (demand/supply behavior)
evaporation
expansion
5. | Infrastructure Services
Value Propositions – on-demand characteristics
Faster
Better
Cheaper
Cost and time
To provision
1:5 to 10
1:300 to 500
TCA
Provisioning,
de-provisioning
1:5 to 10
1:300 to 500
Virtualization
TCO - sourcing
1:10 to 20
1:30 to+ 50
Examples
6. | Infrastructure Services
Some definitions - Cloud Ecosystems
Are made up of communities, consumers, buyers, vendors, providers and
intermediaries (brokers, aggregators, orchestrators, carriers..)
These can be describes as nodes (vertices), resources, relationships and various
interactions
Process
automation
Business Network
Market Channels
Affiliate, business
Network
Hosting
Versus
Cloud
Cloud is
not just
hosting
Mash-ups
On-demand
processes How to create
Business
Functions in
Cloud
Aggregators / brokers
of cloud-on-demand
Source: CIEL
7. | Infrastructure Services
Value Dynamics in Cloud Ecosystems
There are groups of
Users that consume
Similar Value Propositions
We see architecture as
a design of topologies in
Cloud Networks and
interactions.
This is related to the
Community network
effects and the properties
of dynamic consumption
patterns
Value
proposition
Consumed
Value
Faster
Better
Cheaper
Delivery
Value
Triskelion
matrices
Cluster
Community
Consumption
PatternVertices, variables
Value footprint
8. | Infrastructure Services
Creation of Value networks in Cloud Ecosystems
F = Faster, B = Better, C = Cheaper
F
F
F
F
F
F
Group Cluster seeking
Faster Value Proposition
C
C
C
Group Cluster seeking
Cheaper Value Proposition
F,C
F,C
F,C
F,C
C,B
C,B
C,B
C,B
C,B
C,B
Group Cluster seeking
Faster, Cheaper Value Proposition
Group Cluster seeking
Cheaper, Better Value Proposition
e.g. SaaS
e.g. IaaS
9. | Infrastructure Services
Cloud Ecosystems
Competition in this context has a
different meaning because you
are considering focus between
different communities and
demand and supply densities.
The gateways and channels
become key distribution model
issues
The multiplexing of resources
become a key deployment
availability issue
We see this everyday in our
lives ; Traveling through a city
from
one district to another.
This is a fractal property of
ecosystems . Small scale and
large scale. Physical and virtual
resources and relationships
change in cloud ecosystems
Demand and Supply Densities
interrelationships
Community 1
clusters
Community 2
Ecosystem boundaries
Common
Demand
and
Supply
Pattern
Characteristics
Feedback loops
Diversity factors
Behavior Science
10. | Infrastructure Services
Value dynamics in Ecosystems
Clusters of common services with similar Value Proposition Characteristics
These are 3 dimensional
in the ecosystem space
Topological size
Of these can be used
represent clusters of
Consumers
Ecosystem “Triskelion”
11. | Infrastructure Services
Topology of ecosystem shapes
Real world systems often exhibit pattern behavior
Topology of triskelion lattice
transformations
http://www.ncbi.nlm.nih.gov/pmc/articles/PMC1225879/?page=10
Adapted from Toplogical mechanisms involved in the formation of clathrin proteins
Evolution of Clusters in ecosystems Multi-clusters
12. | Infrastructure Services
Prototype Experimental Design of Ecosystem
Dashboards - Cloud Triskelions
Topological representation of Value to metrics focus
Semiotic representations of Cloud Ecosystems
Faster
Cheaper
Time
Cost
Lower
percentile
Upper
percentile
Performance
Metrics – ROIValue Proposition
Better Current Value
Community Size &
Dynamics
Market Value
Upper
percentile
Use of 3D Visualization representation
14. | Infrastructure Services
How do we measure Value Proposition ?
Business and Operating Metric
Choice of Metrics drives
Monetization
Strategies
How we develop
Revenue /
Value
from the offer
Delivery
patterns
Consumption
patterns
How we Measure
Specific
performance and
Value
Value proposition
Macro and Micro
Economic
Positioning
Understand what
markets are we in ?
Growth Markets
and economics
15. | Infrastructure Services
Targeting growth markets
Properties of On-DemandMarket Enterprise Demand profiles
Small
Companies
SMBs
Large
companies
Small
Demand
Sizes
Large
Demand
Sizes
Core Infrastructure
Services
Value Added
Services
Agile
Rapid
Structural
Stoic
Community
Size
potential
Supply
size
potential
Augmented
services
Structural
Cloud
services
Institutional
Utility
servicesMarket
Dynamics
Buyer/
Consumer
“Consulting”
“reseller”
“Provisioning
engines”
“brokers”
Buyer/
Consumer
Vendor/
Provider
Tend to be Micro Macro strategy focused
16. | Infrastructure Services
Market on-demand Profiles- macro-economic view
Market Enterprise Demand
Small
Companies
SMBs
Large
companies
Market
Dynamics
New
Markets
Existing
Markets
Rapid
growth
Tech kill
refresh
Incremental Change
Disruptive Jump Change
Offer transition to on-demand
Step change through on-demand
channel exploitation
18. | Infrastructure Services
Some definitions – Individual Agents
18
Our focus on
this session is
on Vendors and
Provider
on-demand
Monetization
strategies (how
to make money)Vendor
Provider
Buyer
Consumer
Broker
Orchestrator
Carrier
Aggregator
19. | Infrastructure Services
BUSINESS MODEL – INDIVIDUAL AGENTS
19
Vendor Provider
P & L
Center
Cost
Center
Product Manager
VP of Sales
VP of Strategy
Portfolio Manager
Product Marketing
Manager
CFO
..
CIO
CTO
Delivery Manager
Operations
Manager
Controller
Program Manager
..
Definition of propose
and actual Sale
of Cloud Products
Delivery & support
of Cloud
Services
Cloud Products Cloud Products
Vendor
Provider
Provider
P&L
Cost Center
Cost Center
In-house Providers in a Vendor Business
External Providers to a Vendor Business
Vendor P&L
Provider
Provider
Cost Center
Cost Center
buyer buyer Buyer
relationship
e.g. Buyer
(internal
Cross
charge)
relationship
e.g.
Consumer
(internal
group cost)
relationship
Key
Provider
Roles
Key
Vendor
Roles
20. | Infrastructure Services
CLOUD DELIVERY MODELS
20
CIEL Framework symbolsF
Vendor
Vendor
Provider
Provider
Multiple Vendor
Cloud Product
External Hosted Provider
Vendor Cloud Product
Own Vendor Hosted
Cloud Product
Vendor
Vendor
Single Vendor
Cloud Product
Vendor
Vendor
Shared Pool
Service
Single
or multiple
Buyer/
Vendor
Provider
Vendor
Provider Single
or multiple
Provider
e.g. Facilitator,
reseller agency
e.g. Broker e.g. Aggregator
e.g. Managed
Complete Cloud
Service
e.g. Community
Cloud
Co-location
Provider
Buyer
Vendor
Single
or multiple
e.g. Dedicated
Capacity Cloud
Service
Provider
Vendor
Vendor Provider
Single
or multiple
Multiple Vendor-Provider
Market
e.g. Orchestrator
reseller
= a real business entity
Are there different management of cost models
for Operations Directors ?
Delivery Model Metrics = Outcome metrics + key Operating metrics stages
QoS
21. | Infrastructure Services
CLOUD DEPLOYMENT MODELS
21
Each of these delivery models will aim to serve a one to many demand pattern but
could be either open shared or closed, dedicated deployments
Secure
Private Cloud
Dedicated
Private Cloud
Multi-tenant
Private Cloud
Multi-tenant
Public Cloud
Open Source Cloud Hybrid Cloud
Highly sensitive
mission critical systems
Secure marketplace & portal
services , B2B, B2C
Shared secure marketplace & portal
services B2C
Non-critical
Public services
Monitor, run and secure the cloud service
Open source can be hosting public and private
environments and subject to OCI CC license agreements
Hybrid cloud is a combination of
private and public clouds
And legacy. It can be a bridge to
other cloud services or as a
platform for managed cloud services
Channel
strategies
Delivery
strategies
22. | Infrastructure Services
SOME DEFINITIONS – STRATEGY FRAMEWORK
22
Value Proposition – is the offer
value defined by the customer
Monetization Strategy is
capabilities that generate
revenue in a market
(internal market, external market
to the enterprise)
Performance metrics are used
to measure how the value is
delivered and expectations met
Investor expectations include
margin, ROI and capability
Offer
Cloud Product and/or Service
Value
Proposition
Monetization
Strategies
Performance
Metrics
Operating
Model
Investor
Expectations
23. | Infrastructure Services
BUSINESS OFFER PLANNING LIFECYCLES
23
Product
Portfolio
Operating
Portfolio
Investment
Portfolio
Strategic
Portfolio
New Product
Development
Business Case
Markets
Analysis
Decision
Analysis
Metrics
Analysis
Decision trees,
process fit
Benchmarking
Market projections
Investment decisions
How well Products meet
Business expectations ?
Offer
Strategy
What can
be delivered ?
What is
required ?
Demand
Supply
24. | Infrastructure Services
CLOUD PRODUCT & SERVICES –
ON-DEMAND MONETIZATION STRATEGIES
24
Micro economics Macro economics
Identifying factors that affect pricing
and volume availability and
performance in specific markets
Identifying factors that affect overall
performance, structure and behavior
across and within markets.
Operating demand
and supply, bundling
capabilities
Market channel,
business process
and supply chain
capabilities
Capital funding,
contract, IP
methods
capabilities
Demand and supply
between individual agents
consumers, buyers, vendors, providers
and other firms in the industry
Total economic
environment
Local, national, regional
and global economies
Trading
domains
and finance
rules
Income
and Output
Consumption
and
Consumer
Behavior
25. | Infrastructure Services
ON-DEMAND MONETIZATION STRATEGIES
- MICRO ECONOMIC
25
Types of
Monetization
Strategies
Operational
Monetization
Strategies
Operating demand
and supply, bundling
capabilities
Market channel,
business process
and supply chain
capabilities
Capital funding,
contract, IP
methods
capabilities
That can enable monetization of on-demand cloud products and
services
Focus on Cloud
Offer overall
performance
These monetization strategies
are levers that you can pull or push
inside your own company as ways
to generate revenue and
profitability.
There are also other monetization
strategies that consider the
environment and ecosystems that
you are operating in.
These strategies recognize the
behaviors and influences of
networks and connected spaces
Ts & Cs
Monetization
Strategies
Growth
Monetization
Strategies
26. | Infrastructure Services
CASE STUDY 1 – MICRO-ECONOMICS
PUBLISHED USE CASE : MODERNIZATION
26
Modernization
Cloud Service
Crowd
Innovation
Sourcing
Mobile
Device
Fat
(Client)
DeviceLight
(Client)
Device
Cloud Service
Provider
Legacy
Systems
Migration
service
Consumer/
buyer
Company
Virtual
Workflow
Workflow
Modernize Business Processes
Modernize Applications
Modernize Infrastructure
CatalogCloud
Infrastructure
Cloud
Applications
T
S
B
E
Environments
Process Governance
Search and UI
Shop and/or
Build
Market agent access
and dynamics ?
End to end Service
Management ?
Data Management ?
Vertical integration ?
Horizontal integration ?
Business Processes ?
In-house, external ?
Competitor agent
behaviors?
Efficiency , cost
effectiveness ?
Case study Source: The Open Group
27. | Infrastructure Services
ON-DEMAND MONETIZATION STRATEGIES
- MACRO ECONOMIC
27
Monetization Strategy is capabilities that generate revenue in a market
(internal market, external market to the enterprise)
Types of
Monetization
Strategies
Community
Monetization
Strategies
Channel
Monetization
Strategies
Industry
Standardization
Monetization
Strategies
Community
identity, feedback
Connections
capabilities
Structure
of channels
to markets,
Channel mix
Capabilities
Access
specialization,
reward, consistency
and interoperability
That can enable monetization of on-demand cloud products and
services
Focus on Cloud
Offer overall
performance
These monetization strategies
are more focused on macro
behaviors and scale of monopolies
between participants and
geographic locations.
These exist in physical and virtual
spaces in digital networks.
28. | Infrastructure Services
CASE STUDY 2 – MACRO ECONOMICS
PUBLISHED USE CASE: BUSINESS ACTIVITY REPORTING
Communities ?
Channels ?
Mix of products &
services attractiveness?
Interactivity ?
Portability &
Interoperability ?
Emerging & growth
markets ?
Differentiators ?
Barriers ?
Process abstraction,
flexibility , agility,
workloads
28
Composite
Report
Builder
Report
Service
“Shop”
Composite
Report
Buinder
Cloud
Aggregate
Report
Store
Operations
Stakeholders
Finance
Stakeholders
General
Inquries
Monetize
the
service
Interaction
based on
common
reporting
views
Reporting via
direct API
services or
throughaggre
gation
T
S
B
E
Cross-Company
Organizational
Units
Business Activity
Reporting Cloud
Service
Stakeholder
Community
External
Internet
inquiries
GovernanceGroup
Feedback
Feedback
Resources,
Servers,
Storage
Case study Source: The Open Group
29. | Infrastructure Services
ON-DEMAND MONETIZATION FRAMEWORK
29
On-demand Monetization Strategies
Differentiators and competitiveness of on-demand offers need to consider
both micro and macro economic strategies. Defining sustainable pricing
and market channels needs to be aware of how the macro environment works
in on-line digital domains and digital markets
Macro-economic Micro-economic
30. | Infrastructure Services
Micro-economic
On-demand Monetization Strategies
Operational Monetization strategies
1. Fractionalization
o Divide resources for optimal loading
o Portfolio cost optimization / savings
2. High Productivity
o Leverage resources
o Higher operating margin
3. High Volume
o Mass consumption
o Exploit price-demand curves
4. High Yield
o Complementary usage of resources
o Thin provisioning
5. Niche
o Scare resources / skills / knowledge
o Knowledge leverage
6. Crowdsourcing
o User sourced and developed resources,
ideas, knowledge, skills
o Co-innovation, collaboration
7. Litigation
o Patent leverage
o Trolling, market positioning
Growth Monetization strategies
1. Horizontal Market expansion
o Geo, size, industry
o Cross-selling, annuity selling
2. Vertical Market expansion
o Supply chain, stakeholders
o Cross-selling, annuity selling
3. Horizontal Service Expansion
o Within one Business Process & IT stack
o Aggregation
4. Vertical Service Expansion
o Adjacent Business Processes with similar
requirements
o Aggregation
Terms and Conditions Monetization
strategies
1. Innovative billing
o Creative pricing, advertising and charging
o Financial engineering
2. Financing
o Capex sourcing
o Risk allocation
31. | Infrastructure Services
Macro-economic
On-Demand Monetization Strategies
Community Monetization strategies
1. Community
o Boundary creation, management and
containment
o Group behavior, membership, values,
brand
2. Reward / Feedback
o Incentives and feedback reinforcement
experience
o Preference targeting
Channel Monetization strategies
1. Channel mix
o Resource / market awareness balance
o Portfolio mix
2. Gateway ownership
o Access methods
o Addressable market
Industry standardization Monetization
strategies
1. Standardization
o Access specialization
o Product / service grouping consistency
2. Propagation
o Market Portability and interoperability
o Governance domain controls
32. | Infrastructure Services
CLOUD PRODUCTS & SERVICES - METRICS
32
Types of Cloud
Metrics
Operational Growth Ts & Cs
Cloud Vendor
Metrics
P & L
Performance
Cost
Performance
Cloud Provider
Metrics
Focus on Cloud
Offer overall
performance
Focus on Cloud
product revenue
growth, P&L and
competitive, value
for money factors
Focus on Cloud
Delivery performance,
quality of service,
Operating cost,
Sourcing mix (delivery
Portfolio) and
Operating Investment
Budget decisions to
maintain and
build competitive,
value for money factors
Operational
Effectiveness
& Efficiency,
Bundling
Metrics
Sourcing
Pricing & SLA
Effectiveness
(external) –
Buy / Build
Delivery QoS Cost
Sourcing MixTimeliness
SLA/OLA
Flexibility
Metrics
Cost of QualityDemand Mix
(short/long term
demand flow)
Market
and Process
service
Metrics
Summary
Operating
efficiency
metrics
Pricing
and
Contractual,
risk/security/
Compliance value;
IP and Copyright
Metrics
Automation
& New/Maintenance
Investment mix
metrics
Security &
Compliance
Cost of security
Cost of
Compliance
Value of
Compliance
Cloud Buyer
Metrics
Cloud Consumer
Metrics
Maturity of your organization ?
Maturity of your partnerships, advisors ?
34. | Infrastructure Services
CASE STUDY 1 – CLOUD VENDOR
BUSINESS ACTIVITY REPORTING PRODUCTS & SERVICES
34
Composite
Report
Builder
Report
Service
“Shop”
Composite
Report
Buinder
Cloud
Aggregate
Report
Store
Operations
Stakeholders
Finance
Stakeholders
General
Inquries
Monetize
the
service
Interaction
based on
common
reporting
views
Reporting via
direct API
services or
throughaggre
gation
T
S
B
E
Cross-Company
Organizational
Units
Business Activity
Reporting Cloud
Service
Stakeholder
Community
External
Internet
inquiries
GovernanceGroup
Feedback
Feedback
Resources,
Servers,
Storage
Buyer/Consumer Value
Proposition –
primary/secondary
• Better, Faster (specialist reporting)
• Faster, Cheaper (standard reporting)
Micro-economic monetization
strategy
• Primary Operating Monetization strategy
High Productivity
• Secondary Operating Monetization
strategy
High Volume
• Growth Monetization strategy
Horizontal Service integration
Vertical Market integration
Macro-economic monetization
strategy
• Communities
Company Platform users
External Partner crowd sourcing
• Channels
Public Cloud sourcing
• Standards
Industry nice specialization
35. | Infrastructure Services
CASE STUDY 2 – CLOUD BROKER / PROVIDER : MODERNIZATION
SERVICE
35
Modernization
Cloud Service
Crowd
Innovation
Sourcing
Mobile
Device
Fat
(Client)
DeviceLight
(Client)
Device
Cloud Service
Provider
Legacy
Systems
Migration
service
Consumer/
buyer
Company
Virtual
Workflow
Workflow
Modernize Business Processes
Modernize Applications
Modernize Infrastructure
CatalogCloud
Infrastructure
Cloud
Applications
T
S
B
E
Environments
Process Governance
Search and UI
Shop and/or
Build
Buyer/Consumer Value
Proposition- primary /
secondary
• Faster, Better
• Faster, Cheaper
Micro-economic monetization
strategy
• Primary Operating Monetization strategy
Fractionalization
• Secondary Operating Monetization
strategy
Niche
• Growth Monetization strategy
Vertical Service integration
Macro-economic monetization
strategy
• Communities
Company Platform users
External Partner crowd sourcing
• Channels
Public Cloud sourcing
• Standards
Industry nice specialization
Technology OS specialization ..
36. | Infrastructure Services
CASE STUDY 3 : MULTI-NATIONAL
PHARMACEUTICAL COMPANY
36
Client - Needs
• Target shared services – Medical trials web service. Currently
many trials and systems – wanted a consistent
group brand and shared service.
• SMBs attacking their core markets.
Small competitors could use 3rd party cloud them selves to develop
Medical services and sell, deliver direct into markets held by Client.
Client had invested millions in IT infrastructure to vertically integrate
to these markets but this was increasingly
no-longer was a differentiator.
• Business by-passing own central and divisional IT
departments.
Business unit IT departments and business people directly sourcing
and provisioning IT from 3rd party cloud vendors as a service.
• Inflight Cloud Pilots.
With strategic technology and strategy partners and own Client IT
Department.
Strategic Pilots – various virtualization technologies, benchmarking
and public/private cloud options.
Solutions - Needs
Selecting the right Cloud Deployment
for Workloads
Assessments and Advisory Support
Single Consistent Cloud Vision and Roadmap
ROI Score cards
Risk Assessment Reference Models
Portfolio
Workload
planning
Vision Operating
Model
Roadmap
Private Cloud Pilots, support Cloud Services
FDA / Industry
Certification &
Compliance
Organizational
Change
Management
Channel
Service
Strategies
Demand
Patterns
Supply
Patterns
Analysis
Security ,
Performance
Reliability
37. | Infrastructure Services
CASE STUDY 3 : MULTI-NATIONAL
PHARMACEUTICAL COMPANY
37
Barriers / Levers
Differentiators
Buyer /Consumer ROI Metrics
39. | Infrastructure Services
CLOUD MONETIZATION FRAMEWORK
ON-DEMAND PRODUCTS & SERVICES
39
Micro-economics
monetization strategies
Macro-economics
monetization strategies
Select your
Value Proposition
Select yourSelect your
1
2 3
Select your
Business Operating Metrics
5
Contractual/
non-contractual
Metrics
1 /4
Target Growth Markets Macro-economic
Value Propositions
Micro-economic
Value Propositions
Differentiation
Faster, better, cheaper
Buyers / Consumers Vendors / Providers
Select your
Catalog
Non-
Catalog
Off the menuOn the menu
40. | Infrastructure Services
MAKING CLOUD WORK - STANDARDS AND RESOLUTIONS
- STILL EVOLVING
40
Matching capabilities
Buyer / Consumer LifecyclesVendor / Provider Lifecycles
Catalog
Non-
Catalog
Off the menuOn the menu
Metrics
Value
Proposition
Monetization
Strategies
Negotiating Service
Provision
Purchasing processesSolution Development processes
Ecosystem choices , standards
Level of Maturity,
standards, automation
Assurance, security
41. | Infrastructure Services
UNDERSTANDING CLOUD ECOSYSTEMS
41
Design
Affiliates
Affiliates ...
Distribution
Market
Market
Sources
Government /
Federal rules – e.g.
Sales Tax
Process
automation
S
C
T
B
Business Network
Market Channels
Affiliate, business
Network
Virtual Organization
Social Organization
Super Information
Process
automation
Metadata and Cloud
Products and Services
Cloud Ecosystem
Industry,
Business &
Social
Networks
Physical &
Virtual
Business
New
channels, mix
Standards, Devices, Augmentation
Time SustainabilityPlace Feedback
42. | Infrastructure Services
Virtual
Business
Your opinion
New
channels, mix
Design
Affiliates
Affiliates ...
Distribution
Market
Market
Sources
Government /
Federal rules – e.g.
Sales Tax
Process
automation
S
C
T
B
Business Network
Market Channels
Affiliate, business
Network
Virtual Organization
Social Organization
Super Information
Process
automation
Metadata and Cloud
Products and Services
Cloud Ecosystem
A modern economy
42
Markets and
communities
Cyber attacks
Knowledge
Innovation
Green sustainability
National and global
infrastructures
National interests
Personal interests
…
44. | Infrastructure Services
SUMMARY
Identify how to target growth markets and value propositions for
cloud business models
Introduce a monetization strategies framework for targeting
successful ROI from cloud computing
Identify real examples of business models to take existing traditional
and cloud services towards improved business performance and
cash-flow
44
45. | Infrastructure Services
SYNOPSIS
Many businesses today are faced with the challenge of getting effective ROI from cloud computing. The cloud changes the
way investment and consumption models work and has upended many traditional hosting and purchasing methods towards
self service and on demand business services. It was also become a real issue in the wider picture of growth in
international competitive marketplaces, governmental legislation and citizen security.
This session will identify real examples of how customers and providers of cloud services can target better growth and ROI
from cloud computing by positioning and defining their operating model and value strategy. Specific issues and techniques
described in the session will include methods to visualize and identify what types of business models are effective in
growing cloud computing sales and demand in growth and traditional markets. This will draw upon new modeling
techniques for ecosystems and a new taxonomy for classifying key decisions for cloud business models. The session will
then introduce ways to define value propositions for cloud services in those target markets and customers and provide a
new portfolio planning framework to select and drive monetization strategies for effective ROI cash flow. Throughout the
session there will be references to real examples of cloud business models to support the guidelines for successful cloud
service business models. The work is based on actual first-hand company experience and practical developments from The
Open Group Cloud Computing Work Group led by Mark Skilton and Penelope Everall Gordon.
Session Takeaways
• Identifies how to target growth markets and value propositions for cloud business models
• Introduces a monetization strategies framework for targeting successful ROI from cloud computing
• Identifies real examples of business models to take existing traditional and cloud services towards improved business performance and
cash-flow
The views are of the author and not of the current, previous or future employers.
http://cloudcomputingexpo.com/event/session/1333
Editor's Notes
Buyers/Consumer life cycleVendor/Provider life cycle
In cloud ecosystems you can have consumers with different value proposition needs