Cloud computing: What you need to know as an Australian Finance Director. Presentation made to 2nd Annual Future of Cloud Computing in Financial Services Conference in Sydney and Melbourne - September 2011 All rights reserved: FST Media and Rob Livingstone Advisory

1. 2nd Annual Future of Cloud Computing in Financial Services Cloud computing: What you need to know as an Australian Finance Director ROB LIVINGSTONE, Fellow, Faculty of Engineering and Information Technology Sydney 16th September 2011

2. A Perspective on Cloud MauritsCornelis Escher (1898-1972) - most famous for his artworks of so-called impossible structures, such as Ascending and Descending, Relativity, his Transformation Prints and more Relativity by M. Escher

3. A Perspective on Cloud MauritsCornelis Escher (1898-1972) - most famous for his artworks of so-called impossible structures, such as Ascending and Descending, Relativity, his Transformation Prints and more Relativity by M. Escher

5. No defined standards

8. Plain English, with a commercial, not IT focus

10. By vendors and PR feeding media

11. By vendor affiliates

12. By system integrators (mostly certified in specific technologies)

13. Analysts at too high a level to be practical in the specificsStressed Cloud implementations not visible, resulting in a biased view that Cloud is quick, easy and lowers cost. There’s so much confusion and ‘Hype’ at the moment

14. What I’ll be covering: The next few years – a transition from confusion to calm Migrating to public Cloud …. ‘a ready-reckoner’. The consumerisation of IT The intrinsic appeal of Cloud to organisations Some Key considerations The future is now Questions and discussion

16. The various components are all run by an external party, and you do not own anything, other than the data that you load into the system.The primary attributes of Cloud systems are: You subscribe to the service The system is accessed via the Internet You neither have control nor title over the Cloud system You have limited to full title over the data that you upload The system is scalable (within limits)

17. Next few years – from confusion to calm “There are known knowns. These are things we know that we know. There are known unknowns. That is to say, there are things that we know we don't know. But there are also unknown unknowns. There are things we don't know we don't know” - Former US Defense secretary Donald Rumsfeld , 2002 Let’s start our Cloud journey to turn the unknowns into knowns!

18. Next few years – from confusion to calm Gartner Hype Cycle 2006 – Cloud not even mentioned

19. Next few years – from confusion to calm Gartner Hype Cycle 2011 – Cloud has very it’s own cycle

20. 2. Migrating to public Cloud: A ‘ready-reckoner’. If the answer to these questions are YES, then you should be able to progress relatively swiftly through your journey to Cloud computing : Is this a completely new system?... AND…… Will the system always be standalone? (i.e. you do not need to build any system interfaces) Are your business requirements likely to remain relatively static? If the vendor goes out of business do you have a workaround? Is the migration cost (Incl. write-off) for outgoing systems minimal? Are the Cloud system boundaries clearly defined? Are managerial accountabilities clearly defined and assigned? Is there an immediate ‘crisis’ on your hands and Cloud is the only realistic alternative given its immediate availability? Are you comfortable in having your data (possibly) resident in a foreign legal jurisdiction?

21. 2. Migrating to public Cloud: A ‘ready-reckoner’. If the answer to these questions are YES, then you should be able to progress relatively swiftly through your journey to Cloud computing : Is your data in the Cloud free from any state or federal record retention laws? Can you manage, maintain and configure the system without the need for IT programmers or other IT specialists? Can you implement the system without a major re-design of your business processes? Is your data free from specific legislation (Eg Privacy Act) or is not subject to contractual obligations (eg major customer contract)? Are you happy placing your most sensitive / critical and important intellectual property in the Cloud? Are you looking to use the Cloud system for a short period of time only? (ie: Serving a short term need such as a major project)

22. 3. The consumerisation of IT … also known as the ‘democratisation’ of IT Fuelled by Cloud and pervasively accessible web based applications as an individual …. I see it, I like it, I want it, I buy it (or it’s free!), I use it – Now!

24. Personal choice and immediacy reigns supreme

25. Buy it / use it without necessarily a long term in mind

26. ‘Apps’ – for iPhone™, Android™, etcFor enterprises, however, this presents a number of challenges for the unwary

29. Records management

30. Security

31. Risk

32. Cost

33. Commercial, legal and contractual

34. Vendor contracts

35. Regulatory

38. Singapore, Russia and others have similar legislation

40. Payroll, Tax, OH&S, etc

45. 5. The key considerations for organisations: Commercial, legal and contractual

47. Lower cost?

55. Corporations Act 2001

56. Australian Standard AS ISO 15489 - Records Management

57. Australian Prudential Regulation Authority

59. 5. The key considerations for organisations: Governance: Change and version Control You get to take what is given …..

62. the value

63. the risk

64. when to buy

65. what to buy, and