It is not the strongest species that survives change but the most adaptable one. Cloud computing models like IaaS, PaaS, and SaaS provide infrastructure, platforms, and applications over the internet. Companies can quickly scale their computing resources up and down as needs change.

2. It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is the most adaptable to change.

3. SaaS vs. IaaS vs. PaaS Software as a Service (SaaS) : Complete application systems delivered over the Internet on some form of "on-demand" billing system: Salesforce.com, Google Apps… Platform as a Service (PaaS) : Development platforms and middleware systems hosted by the vendor, allowing developers to simply code and deploy without directly interacting with underlying infrastructure: Google AppEngine, Microsoft Azure, Force.com… Infrastructure as a Service (IaaS) : Raw infrastructure, such as servers and storage, is provided from the vendor premises directly as an on-demand service: Amazon Web Services, GoGrid…

4. Imagine Monday: 25 000 users Tuesday: 50 000 users Thursday: 250 000 users

5. Imagine Monday: 50-100 servers Tuesday: 400 servers Wednesday: 900 servers Friday: 3400 servers

7. Cloud Power Animoto and Amazon EC2 Number of EC2 Instances 4/12/2008 Launch of Facebook modification. Amazon EC2 easily scaled up and down to handle additional traffic Peak of 5000 instances 4/14/2008 4/15/2008 4/16/2008 4/18/2008 4/19/2008 4/20/2008 4/17/2008 4/13/2008 Steady state of ~40 instances

8. 4 TB Data 100 Nodes 11 Million PDFs 100 instances x 24 hours x $0.10 / Hr = $240

10. The Internet and its attendant array of consumer devices, networks and content sources have fundamentally changed how customers, employees and partners expect to interact with the enterprise (Gartner CIO survey 2008/2009).

12. The switch Publishing is complex and limited to few traditional media and online merchants Value is created by aggregating content (portals) Easy and free publication for all Value is generated by tools allowing to publish easily Mainly narrow band Mainly Broadband 2004 2005 Traditional media Alternative media Google search Flickr Wikipedia netvibes Web 1.0 Web 2.0 Broadband is (becoming) a right in Spain and Finland

13. Technology and social factors have converged over the past few years to create a phenomenon called social computing TECHNOLOGY Cheap hardware and software reach the masses. Simple devices that anyone can operate. SOCIAL CHANGE Consumers look for cost and time efficient technologies, ways to make their voices heard. Younger techno savvy generations pioneer the use of personal networks and viral communication. Source: Forrester (2006) – Social Computing.

14. Internet statistics 100 billion clicks per day 55 trillion links It uses 5% of the global electricity 2 million emails per second 1 million IM messages per second 8 terabytes per seconde traffic 65 billion phone calls per year

15. Social Media statistics 20 hours of video uploaded every minute onto YouTube Facebook 600k new members per day 900.000 blogs posts put up every day Second Life 250k virtual goods made daily 700 million photos per day on Facebook Twitter 18 million new users per year 4 million tweets sent daily 1250 text messages per second

21. This is your new intranet

22. Identity? Facebook Connect! It’s the social graph that counts!

23. The Perfect Storm has changed Business Focus Business has been hit successively with; The Credit Crunch Globalisation of Competition Commoditisation of key Activities Customisation requirements for Products Expectations for new levels of online Services and then there is the Technology impacts around; The Ubiquitous Connectivity Social Collaboration and Networks The arrival of ‘The Cloud’ etc ….. So how do we Harness the forces of Change?

24. NEW ORGANISATIONAL PARADIGMS HOW BUSINESS TECHNOLOGY IS CHANGING COMPANIES SOCIAL(ISM)? COMMUNAL ASPECTS OF DIGITAL CULTURE TECHNOLOGY FUELED CHANGE THE FUTURE OF PRODUCT AND SERVICE MARKETING & SALES

25. So its not just Traditional IT; there are new technologies too People Internal External Applications Computers Web Services

27. Areas where traditional EA models often struggle Don’t respond to change quickly enough Aren’t aligned with current business reality Lack of focus on driving consumption (or network effects) Too centralized and isolated Expensive and resource-intensive Overengineered in the wrong places Excessively constraining.

28. The architecture “stack” is bigger now

30. Capgemini’s Crown model Pressure for Business Change Pressure for IT Stability Comply The Enterprise Transactions and Data; ERP and Legacy Applications Organize The use of SOA to achieve cohesive executions Differentiate A Business Manager’s Customizable Solution Personalize An Individual’s use of the capabilities of Web 2.0

31. A Services Governance Model – with the Business! Business and Technology Architecture Governance Model Personalise An Individual’s capability to choose their ‘experience’ in how they wish to ‘Interact’ and ‘collaborate’ Differentiate A Manager’s capability to build locally unique ‘differentiating’ capabilities both externally and internally Organise (SOA) Common, shared core processes that support each differentiated offer above, and connect to transactional IT applications below Comply (ERP, etc.) Traditional Enterprise Applications with organised procedures and data integrity, keeping compliant business results Loose Coupled Business Technology SOA the coupling layer between both Tight Coupled Information Technology

32. There is an Interesting Inversion in this … Business and Technology Architecture Governance Model Personalise An Individual’s capability to choose their ‘experience’ in how they wish to ‘Interact’ and ‘collaborate’ Differentiate A Manager’s capability to build locally unique ‘differentiating’ capabilities both externally and internally Organise (SOA) Common, shared core processes that support each differentiated offer above, and connect to transactional IT applications below Comply (ERP, etc.) Traditional Enterprise Applications with organised procedures and data integrity, keeping compliant business results Loose Coupled Business Technology SOA the coupling layer between both Tight Coupled Information Technology Cost or Value? $1 $2 $3 Margin $1 $2 $3 Revenue

33. What the heck are Mashups? An enterprise mashup is a custom application rapidly assembled by (or in close collaboration with) business users in short timescales to meet immediate business needs. Typically, they combine data, functionality or processes from multiple existing internal or external IT assets to create innovative business value. An enterprise mashup platform is software infrastructure that provides tools to rapidly assemble widgets in a visual environment thereby allowing easy combination of data, functionality and processes, even by business users.

35. Impacts on the business operating model Infrastructure-as-a-Service (IaaS) Platform-as-a-Service (PaaS) Software-as-a-Service (SaaS) Business Process Outsourcing (BPO) Internal Software + Service & traditional outsourcing E.g. Finance BPO, Payroll Their people, process, application, platform + Infrastructure E.g. Salesforce.com, Google Apps Their application, platform & Infrastructure Yourpeople, process and operation E.g. Force.com, Gigaspaces & Appistry Their platform & Infrastructure Your application, people & process E.g. Amazon Web Services Their infrastructure, operations & support Your application, platform & processes You own everything Infrastructure, platform, app’s & process. Contract parts of activities to partners Commoditisation Degree of control A balance of Control and Standardization

36. Types of Multitenancy in the Cloud App App App Application Host In Cloud IaaS / PaaS Create Own IP Version of App Multi-Tenant Reseller Model Resell Multiple Versions of IP App App Application Host In Cloud IaaS / PaaS POC – 1 App Latency Speed Response Multi-Tenant Infrastructure Sustain Model Move over Groups of Apps Applications & Infrastructure Maintenance Portfolio Assessment & Migration

37. Types of Multitenancy in the Cloud App Application Host In Cloud SaaS Multiple Tenants Of the single Application PaaS API Multi-Tenant Software Usage Model Multiple Tenant versions Meta Model conversion App App Application Host In Cloud IaaS / PaaS Multi-Tenant Application instances Model Multiple OS VMIs of App

38. Transparency : the provisioning boundary shifts in the Cloud to a shared model increasing security needs Device Network IP/MAC Auth ID App OS Image Physical Server URL TCP/IP SaaS PaaS IaaS APaaS Provision level Abstraction Increased Shared Exposure + Increased Physical Boundaries Domain ID

39. Monitoring becomes more important

40. What is your SLA Using 5 services with a guaranteed uptime of 99% will result in a guaranteed uptime at your site of 95%

41. The Required Future Business Model

42. The Architecture over a PaaS delivering by SaaS Degree of Ready Built PDFA

43. DOING BUSINESS IN A NEW WAY Examples

44. Lego factory Lego had traditionally been surrounded by a highly active constellation of Lego User Groups - fan communities comprising of both adult and young members These groups maintained large online presence; operated independently of the company; exchanged and showed creative toy designs and models amongst themselves Lego needed to move out of closed proprietary mode and adapt a participative strategy for customer interaction, which would utilize existing user creativity in product design BACKGROUND Lego launched the Lego Factory ( http://factory.lego.com ) – an online model of engagement for potential and existing Lego users, which allows users to design, share and buy their own customized LEGO models SOLUTION Through the Lego Factory, the company has taken a step further in the evolution of user involvement, building strong brand relationship The initiative has created high levels of awareness and interest with the consumers The initiative has put Lego a step ahead of competition by moving out of closed proprietary content mode and involving fresh ideas from consumers and community for New Product Development BENEFITS THE LEGO FACTORY WEBSITE Users interested in custom-designing their own Lego models have to download and install the ‘ Lego Digital Designer ’ – In the designer, the user can drag and drop to create a virtual toy design Once the user has created a design, he can upload the same to the online gallery Lego approves all designs before they are added to the online gallery, to filter out models for appropriateness for all age groups Designer users can then order the bricks needed to make their model, and also customize their own box for the model Other users on the site can buy uploaded designs in the gallery, and will receive both the bricks for the model as well as the building instructions Source: MRD Lab Analysis. Capgemini, “ECR Europe Conference: Future Consumer Presentation”, May 2008. coBrandit.com, “Lego Co-creation Presentation by Mark Hansen: Video”, September 2006. Crowdsourcingdirectory.com, “Co-Creation in Lego Factory”, September 2007. European Centre for the Experience Economy, “Lego’s participative army marches on”, April 2008.

45. P&G connect + Develop As P&G grew to a $70 billion enterprise, the global innovation model it devised in the 1980s was yielding shrinking success rates Their R&D productivity had leveled off, and innovation success rate had stagnated at about 35%, whereas innovation costs were climbing faster than top-line While P&G owned a 7500+ strong R&D team, it realized that viable product innovation was increasingly being done externally at small and midsize entrepreneurial companies BACKGROUND More than 35% of P&G’s new products have elements that originated from outside P&G, up from about 15% in 2000 R&D productivity increased by nearly 60% R&D investment as a percentage of sales is down from 4.8% in 2000 to 3.4% in 2006 P&G’s average two-month cycle of generating physical prototypes and testing them with consumers has reduced to around 24 to 48 hours BENEFITS P&G launched the ‘Connect + Develop’ initiative, tapping into a global innovation network comprising of a host of sources, right from independent innovators to virtual innovator networks such as InnoCentive Having a clear sense of consumers' needs, the company identifies promising ideas throughout this network and applies its own R&D, manufacturing, marketing, and purchasing capabilities to them to enhance the rate of innovation SOLUTION P&G’s Global Innovation Network P&G CONNECT + DEVELOP P&G identifies top 10 customer needs P&G converts them into ‘science problems and sends into the network P&G’s 7500+ R&D team work on solutions suggested and with internal communities INNOVATIONS In Areas Of Packaging, Design, Marketing Models, Research Methods, Engineering, Technology, Etc Source: MRD Lab Analysis. Harvard Business School, Working Knowledge, “P&G's New Innovation Model”. Leveraging Ideas for Organizational innovation Blog, Dr. Kevin Desouza, “ Connect & Develop Innovations the P&G Way”. P&G, “P&G Connect & Develop – Brochure”.

46. Nike+, in collaboration with Apple Nike wanted to create an immediately resonant experience for a broad target market, from marathoners to fitness joggers Nike+ was born as a multi-channel, multi-sensory marriage of Nike and Apple technologies Nike+ provides a robust platform of virtual racing, progress tracking, motivational goals and stories, global community comparison tools BACKGROUND SOLUTION 1 2 3 HEAR YOU RUN… SEE YOU RUN… CONNECT AND CHALLENGE Sensor in the shoe helps the runner hear through the iPod, the details about pace, time, distance and calories burned On docking and synchronizing the iPod, Nike+ software loads the workout statistics to their website where the user will be able to track his/her workout progress Run data can be used to track progress, set goals, motivate runners. win rewards and challenge pals or all Nike+ users Widgets for setting challenges, goals… Blog facility for Nike+ users Link to purchase Nike+ kit and other Nike gear CUSTOMER CENTRICITY THROUGH BETTER INTERACTION USING WEB 2.0 Nike+ is a unique way to engage with and promote higher levels of brand identity amongst Nike users Delivers increased value to Nike users through a unique way of collaborating Engages current and prospective Nike users with uninterrupted and targeted advertising 20% reduction in ad budgets as Nike is moving towards developing its own media network through such technological endeavors Total Sales worth $59 million and 1.8 million users August 2008; 800,000 people globally simultaneously run a 10km race in 26 cities Share of the Sports Shoe market: 2006 – 48% 2008 – 61% (12 month average) BENEFITS I I II II III III Nike.com III Source: MRD Lab Analysis. Nike+ website. ‘Nike does business 3.0’ Phill Butler, 2007.

47. CLOUD COMPUTING Example

51. Undifferentiated Heavy Lifting The 70/30 Switch of time, energy, and dollars on differentiated value creation of time, energy, and dollars on undifferentiated heavy lifting 30% 70%

52. The Capacity Planning Nightmare Infrastructure Cost $ time Large Capital Expenditure Irate calls from senior managment Traditional Hardware Actual Demand Cloud Computing Predicted Demand

54. Rick Mans [email_address] +31 6 512 10 144 http://twitter.com/rickmans http://www.linkedin.com/in/rickmans