The Question is not "If", but "How, Where & When"

1. the way we see it
The Cloud: Time for
Delivery
The Question is not “If”, but “How, Where & When”

3. the way we see it
Have we reached
a game-changing moment?
The current mood in the industry
is one of confusion. Are the new Three big game-changing Capability Clusters
technologies of cloud, mobility,
and big data, as many in IT would
say, an evolution of what we do
today? Or is there a game-changing
revolution in play as many in the
business world seem to think? As Mobility
Any Connection
this paper demonstrates, both sides Any Device
are in fact correct, but only because Any Service
they have totally different views as
to what clouds can deliver to their
respective areas of responsibility.
The challenge for businesses and Cloud Big Data
Computer Ressources Real-Time Information
governments is that both sides of the Applications and Services And Intelligence
Cloud are required for their success On Demand Storage and Search
in meeting changing expectations
externally and internally.
The leaders of the ‘for’ and ‘against’
are thin client vendors and those
vendors still heavily dependent
on thick clients, meaning PCs,
respectively (thin clients depend
use the term ‘innovation’ to define a
on the majority of the computing
generation of new business models
to be done by another computer).
that allow them to access and sell
As enterprise IT, as we currently
to their markets in new ways. The
understand it and use it, is built
solutions that they want to deploy
on thick client, client-server
are only possible because we have
applications then it’s a fair argument
new capabilities by using the new
that we continue to need PCs, but
technologies together with different
conversely the business people,
development and deployment
whilst acknowledging the need for
methods that radically change
enterprise IT, are looking to escape
time and costs. Cloud technology
its model to take advantage of new
provides the key to delivering
‘online’ business solutions. Therefore,
this, with mobility and big data
solutions using the Internet, the Web,
technology playing supporting roles.
and services on demand from ‘clouds’
in a ‘mobility’ context of devices with
Andy Mulholland
wireless connectivity are all based on
Global Chief Technology Officer
thin clients, and take place in a Web
& Corporate Vice President,
environment surrounded by ‘big data’.
Capgemini
It’s the term ‘business solutions’ rather
than ‘technology products’ that gives
the real clue to answer the question
of whether this is a true game-
change or not. Business managers
The Cloud: Time for Delivery 3

4. least embrace that same spirit.
All enterprises and public agencies
face a series of game-changing
shifts as a result of new technology
infrastructures, devices and
behaviors. Much of this is being
driven by people, either as customers,
employees, or citizens actively using
their personal technology devices
in an increasingly ‘digital’ society
developing new expectations.
Businesses and governments find
themselves being ‘driven’ by these
expectations rather than in the
case of internal IT being able to
decide when and in what to invest.
Cloud has the potential to help
businesses and governments
meet their challenges by offering
increased agility and lower costs.
Of course, this potential will
only be realized after enterprises
The Question is not “If”, but Many papers have focused on start taking the steps needed to
“How, Where & When” explaining and advocating the seize the Cloud opportunity.
Talk about cloud computing has technical features of the Cloud. Here
become ubiquitous, both inside and we will take a different view – looking The key questions for decision
outside organizations. The question at what cloud means for the overall makers should now be:
for businesses and governments strategy of the organization. To do ■■ How do we start using the Cloud?
is no longer if cloud is a tool for this we will focus on how clouds ■■ Where are the best
improvement, but how to take action can be part of business solutions opportunities for doing so?
to maximize the advantage of cloud to the challenges that companies ■■ When can we realize
to address contemporary challenges. and government departments face, benefits from the Cloud?
rather than on the different types
The marketing hype around cloud of cloud on offer, or the underlying This paper introduces some of the
has left many skeptical, confused and technologies involved. In this paper, tools we can use to answer these
cautious about how to use cloud in we have used easily-recognized questions, so that companies and
the private and public sectors, and examples from the public sector for public agencies can start taking
what using it might mean in practice. consistency and at the end we provide advantage of the Cloud – individually
With such feelings, it is perhaps a brief technology outline of cloud and collectively. But first let us close
not surprising that the response to computing, mobility and big data in this introduction with two questions
cloud computing has been slow, and respect of their linked functionality. that reveal the two very different
the evidence of results is hard to aspects of cloud technology:
come by. Early adopters who have Many organizations face challenging
succeeded in creating differentiation times with reduced spending, 1. Do business users buy Apple
in their industry are not inclined more demanding customers and iPads to use internal enterprise
to share their experiences. Like citizens, and sustained, profound IT better, or to escape the
the meteorological clouds above demographic change. Corporations limitations in order to use new
us, the reality of cloud computing and governments are now acutely services and do new things?
is hard to pin down: used either to aware that doing the same things 2. Has the IT department changed
re-brand a technology offering or to slightly better will not be enough to its methods of operation by using
conceal the lack of any real business control budgets and meet customers’ virtualization to embrace new
solution. However, as more private and citizens’ expectations. New development and testing methods?
and public enterprises make use of approaches are needed that will
the Cloud, both the distinctiveness deliver better products and services
of the offering and the reality of that are ‘twice as good, in half
the benefits are becoming clearer. the time, for half as much’ – or at
4

5. the way we see it
The ‘Inside-Out’ and ‘Outside- Some of the technologies taken
In’ Models for the Cloud from the full spectrum of cloud
The two questions illustrate one of the computing such as virtualization
biggest challenges in understanding are understood and can be used to
cloud computing; the reality that it improve operating efficiency and cost
has two very different capabilities. of this traditional IT environment.
One is focused on the ‘front office’ This leads to the belief that clouds are
and doing business with the external an evolution of the existing IT model
world which Capgemini calls as it is used in the enterprise today.
‘outside-in’ and business managers see
as a revolution in terms of an entirely Therefore the quick answer for
new set of opportunities. And the IT organizations is: ‘disaggregate,
other is to enhance the operational consolidate, and share’.
capabilities of internal enterprise
IT in supporting the ‘back office’ ■■ ‘Outside-in’ – how to respond
referred to as ‘inside-out’ which is an to change that is happening at
evolution of the current technologies. the borders of, and outside, the
organization? Both the private
These two models allow us to separate and public sectors also face
the different challenges that cloud pressure from outside; from the
computing can be used to address changing shape of customer and
in any organization manufacturing citizen behavior and demands.
products or delivering services: ‘Outside-in’ is based on Internet-
Web architecture characterized as
■■ ‘Inside-out’ – what to do with loose-coupled, stateless and non-
existing operations focusing deterministic. In the ‘outside-in’
largely on cost? Businesses and approach the relevant users and
public agencies deliver hundreds of devices are moved outside the
applications, many of which have existing secure IT environment,
been designed and implemented and will co-exist together on a
in isolation – all with their own cloud that permits loose-coupled,
systems, and with significant stateless, consumption of ‘services’
investment. However, the activities supported from this shared
of enterprise IT can be defined cloud. The periodic need to access
as ‘inside-out’ as they start from, email, and a handful of enterprise
and are focused on, activities applications can be handled with
‘inside’ the enterprise and reach true thin clients working from
towards the outer edge defined ‘outside-in’, thus preventing the
by the firewall. The few activities data, system, or application from
requiring ‘outside’ access i.e. use of being vulnerable in the same
the Internet and Web, are managed way as if these devices and users
on the ‘inside’ governance model were working from ‘inside-out’
of traditional IT. As the number and requiring everything to be
and scope of ‘outside’ requirements ‘brought inside’ the secure zone.
from the business grow so do the This model can also accommodate
number of ‘issues’. Part of this is customers bringing their own
down to the ‘outside’ technologies devices, agile business and other
of cloud, mobility, and big data ways that the requirement for a
being completely different to new business model is expressed.
the ‘inside’ technologies which
are built around using client- Managers in the business world
server to support a close-coupled, believe that this is a game-changing
state-full, or data-centric, revolution in the front office and
deterministic environment. alters how organizations engage with
clients, customers and the public.
The Cloud: Time for Delivery 5

6. ‘Inside-Out’: The evolution of IT The quick answer for ■■ Maintaining service levels within
systems organizations is: ‘start small, be the same underlying process
nimble, and remain innovative.’ ■■ Moving through virtualization,
■■ Internally focused on back
office transactions
consolidation (and
So, have we reached the game- potentially transformational
■■ Reduce the capital and
changing moment that business outsourcing), to cloud
operating costs of existing
managers want? Clearly the ■■ Increasing the flexibility of
systems
answer is yes, as clouds enable legacy systems and reducing the
■■ Improve operational a revolutionary new approach to cost of introducing changes.
performance of technology and engaging with their markets, but
business equally the IT management is correct An example of this evolutionary
■■ Standardization and as certain technologies from the approach to existing systems can
rationalization of estate to Cloud can be applied to traditional be seen in Capgemini’s work with
improve manageability IT to reduce costs and improve the Scottish pan-government
■■ Increase flexibility and agility to
operations in an evolutionary procurement function.
respond to change manner. So to summarize:
‘Outside-In’: Using cloud to help
■■ Reduce the cost of systems
‘Inside-out’: Using cloud to help with ‘outside-in’ is a revolution
change to meet future
with the ‘inside-out’ is an evolution in the front office. It’s about:
requirements
of IT in the back office. It’s about:
■■ Refine cost allocation ■■ Embracing and innovating
■■ Create possibilities for sharing ■■ Streamlining what is in place now with new delivery models
various elements as in ‘X’aaS ■■ Smooth migration, maintaining ■■ Engaging and enrolling
■■ Often driven by the efficiency
reliability and consistency the customer in the
and effectiveness of IT systems ■■ Ensuring legacy integration service delivery chain
(sometimes perceived as a ‘spaghetti’ is not simply migrated ■■ Responding to user demand, policy
“cost-saving” model) to the Cloud equivalent change, and customer behavior
‘Inside-Out’ versus ‘Outside-In’
Social Website
Market
Customers
‘Outside-In’
Suppliers
IT Ap ication
pl
S
ec
u rity
Partners
Border
‘Inside-Out’
Back Office IT Web & Cloud Services
Cost reduction and Innovation in business models
process automation Front Office
Market and information
value producing
6

7. the way we see it
InnoEnergy
“ We want to improve ‘connectedness’: making it
easier to find, approach, understand, and connect
with others. We are looking for persistent virtual
environments, in which participants can create,
organize and share information, as well as find,
”
connect and interact with each other.
Johan Torbjörnsson
CIO KIC InnoEnergy
InnoEnergy is a joint venture between a number of pan-European technology,
energy and academic organizations.
The goal of InnoEnergy is to connect more than 1,500 energy scientists right
across Europe in order to encourage innovation and bring new research and ideas
‘Outside-In’: The revolution of
to market to enable a climate-neutral Europe by 2050. In doing so, the aim is to business capabilities
help new SME businesses emerge. This requires levels of pan-EU collaboration
that were not currently in place, and were not ICT-enabled. A cloud-based
collaboration platform has recently been created to effectively connect this
community. ■■ Externally focused on front
office doing business in ‘the
market’
■■ Shift the focus to customer-
centric joined-up services
■■ Enabling integrated services that cloud-hosted platform allows ■■ Actively engage customers
meet the customer’s desire to the community to connect and
■■ Reduce time, cost and
experience joined-up services collaborate in pursuit of its goal to
complexity of providing all
that make sense to them achieve climate neutrality by 2050.
forms of services
rather than on the enterprise’s
internal organization These two models – ‘inside-out’ ■■ Reduce the cost of introducing
Enabling the blending of and ‘outside-in’ – operate in tandem, innovative models
■■
enterprise services with social each addressing a different set ■■ Reduce cost-to-serve through
networks or other private services of challenges, each using cloud new models that better fit with
■■ Being agile in creating new technology, but in fundamentally customers
solutions using cloud different ways. Confusion between ■■ Pay only for the computational
■■ Composing services from these two very different aspects lies services needed when they are
available cloud elements. at the heart of ‘cloud confusion’ and needed with automatic cost
is frequently reinforced by technology allocation
An example of a new service created vendors pushing their products
■■ Improve customer engagement
out of cloud-based components rather than business solutions. in pursuit of better outcomes
in an agile way is the InnoEnergy
■■ Integrate with social and
collaboration platform. InnoEnergy’s
business networking to improve
goal is to support the generation and
outcomes
commercialization of innovations
created by a large internationally- ■■ Driven by the service and
based community of scientific the business (perceived as
researchers on sustainable energy “business efficiency”)
systems across Europe. This
The Cloud: Time for Delivery 7

8. Cloud has the potential to impact the
eProcurement Scotland
widest possible range of functions
Evolution or Revolution?
and services. It offers a potentially
radical approach to transforming the
way in which organizations operate.
Launched in 2002, eProcurement Scotland (ePS) is, in essence, a private cloud. But notice the use of the terms
‘access to services’ and ‘common
Over time ePS has evolved into a scalable, ‘as-a-service’, multi-tenant and partially
data’, representing the two other
pay-per-consumption system. As a result it displays all of the five NIST cloud
technologies that align with clouds,
characteristics; indeed it was a cloud before the term was widely used.
primarily in the ‘outside-in’ model
The ePS platform now processes more than £3.6bn per year, representing about representing ‘mobility’ of people and
one third of total public procurement spend. According to Audit Scotland, the devices to access the ‘big data’ of the
system generated annual savings of £454m in 2008/9. Over 1.6 million transactions common shared environment. This
go through the system annually, and it is used by over 65,000 registered users and is in contrast with the fixed nature
more than 93,000 suppliers. of the desktop model and internal
database of ‘inside-out’ where even
This cloud platform has enabled ePS to take an evolutionary approach to replacing
a notebook PC is still managed and
existing procurement arrangements. The idea of ePS was revolutionary in the way
provisioned as if it were a fixed
it reconfigured existing practice, but wisely it did not demand an instant revolution
desktop inside the firewall. Equally,
for all of the Scottish public sector.
the term ‘big data’ in ‘inside-out’
tends to mean the ability to make
available more computing power
to analyze existing internal data in
The challenge is to work more depth. By contrast, think of
out how to use both cloud the ubiquitous Apple iPad which can
perspectives in the right connect anywhere, at any time, by
context wireless, and consumes ‘apps’ from
It’s true that the private and public the Apple Cloud as an example of
sectors each cover an extraordinarily ‘outside-in’. The huge amount of data
wide range of services. So each that makes up the Web is, of course,
organization will need to tailor its the basis of the term ‘big data’.
approach to cloud to get the most
out of the opportunities it presents. eProcurement Scotland illustrates
how organizations can realize
To benefit from cloud, an organization significant benefits by taking a multi-
will need to look at how both of agency approach. This procurement
the above approaches apply to their solution is used by a huge range of
circumstances. Maximizing the Scottish public bodies, from council
benefits requires taking a holistic offices to hospitals and school
view across all the functions of the kitchens. While public bodies in
organization, and perhaps those
of other companies, agencies and
partners. This may involve providing Government Cloud Strategy
simpler access to services for
customers over a shared platform,
embracing social media tools as part Governments are already working
of the set-up. On the other hand actively to understand how cloud
it might support a supply net in a will change their context at a high
complex manufacturing industry level.
stretching from a shared environment
for common data and processes. Capgemini continues to work at
It could, in government, involve the forefront of cloud strategy
providing one version of common development with a number
processes (like payments) across of governments including the
agencies, or consolidating many of UK, Netherlands and the US,
the common corporate functions and as well as with the European
systems into one cloud-provisioned Commission.
service orchestration platform.
8

9. the way we see it
Scotland are strongly encouraged
to use the system, it is not enforced
top down. Instead, the system is
used based on its effectiveness. This
evolutionary approach has only been
possible because the platform was set
up with an awareness of the entire
Scottish public sector ecosystem
and the appreciation that not all
agencies would use it from the start.
Governance, Security and Mobility
It is this point, with the
understanding of the previous
sections in terms of both the roles
of clouds and the basic technology,
that we should address the most
fundamental and troubling aspect
of clouds in many people’s minds,
security. Once again this falls
into two different challenges: the
internally focused world of traditional
IT concerned about moving enterprise
applications and therefore enterprise
data outside the enterprise firewall
to be run in an external facility
‘as a service’; and a very different Instead they want to participate in
challenge about supporting people external communities, use the Web
using mobility devices externally in its broadest sense for real-time
for new business requirements. information, and consume selected
services from ‘App Shops’, at least,
Once again the difference between and an increasing percentage move
‘inside-out’ and ‘outside-in’ business to generate completely new business
activities and the enabling activities hosted on clouds from
technologies has a profound effect on Amazon, Google, and others. These
the solution. The matter of moving activities focus on interaction with,
enterprise data onto external service and between, ‘people, events and real-
centers can be risk assessed with time data’ to use a common phrase
methods that are little more than often associated with the topics
a variation of existing techniques, of mobility, clouds and big data.
but the rapid growth in external
mobility around people using a Most importantly, these activities
wide variety of devices connected can be summarized as centered
by wireless is a very different issue. outside the enterprise, outside the
It’s back to the question posed at firewall, and outside the traditional
the beginning of this paper: ‘Do enterprise application technology
business users buy Apple iPads to of IT, with only a very few activities
use internal enterprise IT better, or at all requiring to connect ‘inside’
to escape the limitations in order to the enterprise. The primary focus
use new services and do new things?’ and value comes from external or
activities ‘outside’ the enterprise
Business people with iPads, and there is a limited secondary
smartphones or Android tablets are need around connecting ‘inside’ the
not looking to connect to, and use, enterprise to a handful of services
the existing enterprise applications, such as email. An additional point
except for email and maybe a is that the user might be mobile
couple of other specific applications. or traveling outside the enterprise,
The Cloud: Time for Delivery 9

10. such as a sales person, or service This is an understandable governance
engineer, and using a wider range requirement to secure and protect the
of devices, so the term ‘mobility’ is systems and data of the enterprise
being used to define any device that that should be safely protected within
does not have a ‘fixed’, usually wired, the firewall, and for back office
connection service to the IT-managed workers requiring access to enterprise
corporate network. All of which is IT it is a correct solution. But for
further underlined by the differences, front office and mobile workers
which are indeed so critical a point whose focus and area of activities is
that we will state them again. external and online it is a severe and
often unworkable solution leading
Furthermore, there are differences them to choose to use their own
between the technologies and devices with suitable configuration
architectures used internally and for the outside-in environment
externally. Using the definition of of their working environment.
‘inside-out’ the model of traditional
IT is around monolithic enterprise Actually it is the very differences
applications using client-server that support the solution to these
to support a close-coupled, state- challenges: the new technologies
full, or data-centric, deterministic of mobility, big data and clouds are
environment whereas the ‘outside-in’ about enabling and supporting the
is based on Internet-Web architecture ‘outside-in’ users without infringing
characterized as loose-coupled, the enterprise security model. To
stateless and non-deterministic. Each do this, however, means moving
and every important technology them outside the enterprise firewall
characteristic is exactly reversed, as is and thereby removing the risk of
the purpose that the business user, or enterprise data being accessed
manager, wants to make of it. Little externally, or needing to allow other
wonder the security and governance users from different enterprises to
risks seem daunting when we try to pass through your enterprise firewall.
apply conventional ‘inside-out’ IT
security to the new ‘outside-in’ world. In adopting an ‘outside-in’ approach
the relevant users and devices are
Pushing the boundaries of the moved outside the existing secure
internal IT world enterprise IT environment to co-exist
The first wave of mobile solutions together using clouds to provide the
provided an extension to the internal loose-coupled, stateless consumption
IT world of applications for remote of ‘services’ on demand that are at the
working, e.g. at home, on the heart of this new environment. Office
enterprise applications and data by services such as word processing,
effectively extending the firewall to spreadsheets etc. can be provided
include the remote PC using a Virtual as on demand services from clouds
Private Network, VPN, connection, such as Microsoft Office 365, and
and by ensuring that the PC was even necessary elements of ERP
‘locked down’ to ensure the internal IT can be similarly provided by SAP
governance was maintained. Locked- Business OnDemand or similar
down enterprise PCs used in this services. And for custom services
manner support ‘inside-out’ working and social CRM, Salesforce.com
practices, and continue to control and extends the capability to include
limit the users’ ability to participate development and deployment
in the unstructured external world services. This model can also
of tools, sites and services that form accommodate customers, suppliers,
the online external world. The new collaborators, and employees wanting
wave of mobility driven by the users’ to ‘bring your own’ devices, agile
‘bring your own’, BYO, devices is business on innovative business
specifically designed to overcome the models and all the other ways
limitations of this approach in terms that business is looking to work
of external access and technology. externally to create new value.
10

11. the way we see it
Understand the Differences Between Secure, Structured IT and Web Working
Social Website
Insecure, Market
Secure, Structured Unstructured Input Open,
Data Transformation Unstructured Interactions
and Management Social Network in Front Offices
& Collaboration
Customers
Structured
IT Ap ication
pl Responses
S Suppliers
ec
Secure,
urity
Structured Capture
Knowledge Partners
Border
Management
Back Office IT Web & Cloud Services
Cost reduction and Innovation in business models
process automation Front Office
Market and information
value producing
‘Outside-in’ is a completely the gateways between ‘outside-in’
different way of thinking about and ‘inside-out’ to ensure that the
the requirement, delivery and enterprise gains cohesive leverage in
deployment model, but given that all its activities. This is more likely
this is a completely new generation to be achieved successfully by the
of technologies with nothing enterprise IT side understanding
in common with the principle exactly what is required from their
enterprise IT applications, that are tightly regulated side, but at the
being used in a completely different same time they must take good care
way by business, this should be to ensure that they don’t ‘lock down’
expected. After all, the last big shift and use inappropriate governance on
to using PC Network technology the ‘outside-in’ users and activities.
changed every aspect of the Mini
Computer requirement, delivery and
deployment model in the early 1990s
to the model we understand today
as enterprise IT. This is the cloud
computing revolution that business
managers see and are pressing ahead
to adopt as they can literally bypass
the IT function if they choose.
The real challenge that underlies
the success of an enterprise in
adopting ‘outside-in’ is to understand
how to define, build and operate
The Cloud: Time for Delivery 11

12. A Real Example: Digital Transformation
The operating authority of a major airlines, baggage handler, food services, satisfaction and most likely the lower their
airport is facing demands to improve etc., etc., – will show each separately their costs through optimizing their responses.
the operational management of its individual enterprise’s planned activity However, to do so is both a highly people-
increasingly congested airport, both to from their secure and closed enterprise centric – using real-time data ending in
improve real-time efficiency in the face IT. In each enterprise the data comes from a ‘work around’ – solution, or process,
of the increasing number of unplanned the central ERP systems out to the edge to suit the circumstances, and a shift in
events (late arriving aircraft, lost baggage, of the enterprise in the form of structured the technology or IT model. This is where
etc), and the expectations of passengers non real-time information to show what the crucial difference between ‘inside-
and airlines that information flows will should happen, and if it does happen then out’ enterprise IT, with its governance
be provided both in a more timely way the whole ecosystem will be synchronized and security needs and using a new
and in different people-oriented formats, and ‘resource planning’ will have business and technology model based on
or feeds. Already in the airline industry, succeeded. Deploying mobility based clouds, mobility and big data to enable
there have been several announcements on existing enterprise applications may ‘outside-in’, provides the answer.
of airlines individually deploying large allow more freedom to permit staff to work
Shifting the ‘on tarmac’ front office
numbers of tablets or smartphones to away from fixed desks, but still limits the
operational staff outside the firewall
improve ‘operating efficiency’ to frontline information to the supposed ‘schedule’ of
and supporting them on a common
staff. In plain language this means using activity.
shared cloud with the other members of
mobility to allow staff to deal with the
The operational improvement challenge their working ecosystem (shown in the
many unplanned events, from missing
that needs to be addressed is that in diagram around servicing the aircraft
passengers to lost luggage, finding the
the ‘real’ world a series of unforeseen on the ramp between flights) creates a
passenger steps to replenishing food and
events occur that, to be solved, require revolutionary improvement in operational
drink, etc. for a last-minute change in the
the staff of the companies involved to be capability in their prime function. The
gate an aircraft arrives at etc.
notified of each event and to be able to individual enterprise employees are now
The existing, and traditional ‘inside-out’ interact together to solve each event in able to function as a collaborative team
IT systems of all the various members of an optimal way. The better any business sharing information, communicating,
an airport ecosystem – airport operator, can do this the higher their customer planning and organizing in real-time
Cloud-based Services
IT Ap cation
pli
S
Real-time operations and reactions
ec
u
between staff sharing information
rity
and communications
Border
Back Office IT IT Ap cation
pli
S ‘Outside-In’
ec
u
IT Ap cation
pli
rity
S
Border
ec
u rity
Border
Back Office IT
IT Ap cation
Back Office IT pli
S
IT Ap cation
pli
ec
S
u rity
ec
Border
u rity
IT Ap cation
pli
S
Border
ec
Traditional IT Applications
u
Back Office IT
rity
Individual synchronized predictions
Border
on plane scheduled arrival and
activities with staff inside the firewall
Back Office IT
‘Inside-Out’
Back Office IT
12

13. the way we see it
Cloud is much more than just Planning for the impact of cloud
technology across all these areas does not
The ‘outside-in’ cloud has an impact imply that this impact will come
well beyond the narrow confines of instantaneously or that the adoption
using information and data that is technology. Cloud services are part of cloud needs to come all at once.
not part of their enterprise internal IT of the Internet-Web model, indeed The technical migration will vary
systems, and therefore bypassing the this is where the key technologies by area and may take years in some
necessary restrictions imposed by come from, and have embedded areas, yet happen overnight in
‘inside-out’ traditional IT. Neither does themselves in the everyday business others. In particular, ‘inside-out’
this approach require any of the people and personal lives of literally a world and ‘outside-in’ have very different
involved to be present in each other’s of users. Services like Google Search value propositions and timescales.
existing enterprise IT systems, the are such an intrinsic part of everyday However, in planning for all the
current barrier to addressing this kind of life that it is hard to imagine a part specific actions it is important to step
transformation. of life they don’t affect in some way, back and consider the bigger picture.
or what we did before they existed.
There is still a need for those working
A cloud strategy is far more than
‘outside-in’ to handle the ‘in’ part even
To work out how to make best use a technical strategy, it is a strategy
if it is a secondary focus, for instance
of cloud we need to take a holistic for the transformation of the entire
to see what was planned to happen
view. Only by looking across the enterprise, hence the increasing usage
for comparison purposes, or to update
full spectrum of environmental of the term ‘digital transformation’
records on what has been the final
conditions is it possible to make of business. It involves business
outcome. This does not necessarily
the right judgments about an people in new roles demanding a
mean providing a full enterprise
organization’s cloud adoption strategy. revolution in business capabilities
application on their machine with the
It changes the user proposition; legal as well as the existing people and
corresponding concerns of access and
conditions and risk exposure differ; roles looking to carry out the
security; instead it means the adoption
policies may need to be altered or ongoing evolution of operating
of thin client models working solely in
created; working practices will change efficiency. And in turn that demands
the presentation layer of the browser.
(for instance aligning financial or HR new development techniques
Browser-based ‘representation’ of data
processes with other organizations and methods that match the new
avoids the issues concerning moving
in order to use similar cloud- expectations as well as delivering
enterprise data outside the enterprise
provisioned processes); assets convert the existing applications for less.
and placing it at risk.
from capital to operating legers; the
‘Outside-in’ workers are free to use new whole economic basis can change
sources of information from the cloud/ from ‘own’ to ‘pay as you consume’.
big data environment too, such as the
very successful iFly app. iFly can be
loaded onto a smartphone or tablet and,
on initiating, connects to the iFly cloud
service, which in real-time orchestrates
the unstructured information on any
particular flight and answers queries that
airline staff are unable to answer through
their own internal IT systems. There are
many stories of passengers using iFly to
inform airline staff of the status of their
own aircraft and flights at chaotic times
such as winter storms creating havoc
with the planned schedules.
The Cloud: Time for Delivery 13

14. The Six Key Roles Using to exploit breakthroughs and a key must understand how to map one
Technology role of the Chief Innovation Officer to the other. As an example, if
Cloud value comes about through is to ‘manage’ the innovation into front office staff are moved outside
bringing business and technology a coherent digital transformation. the firewall into the ‘outside-in’
together, to address both ‘inside- environment then services such as
out’ and ‘outside-in’ potential. The back office is the home of office automation tools will need
traditional centralized IT and needs to be provisioned accordingly i.e.
It is thus imperative to consider to use ‘inside-out’ cloud technologies shifting from Enterprise Microsoft
the different types of internal users to address the challenges of the: Office to online Microsoft Office
and stakeholders. We have grouped 4. CFO – The financial functions 365, which is optimized for mobility
them into a set of six generic role are concerned with ensuring clients, and permits data sharing
types, each with their own needs, continued compliance and and collaboration on a cloud.
views and challenges. Three roles keeping a tight rein on IT projects
represent the ‘front office’ who want that could have expensive Developing and deploying
to exploit the ‘outside-in’ revolution or unforeseen outcomes. At applications and services
in business capabilities and three present, budget cuts are the Understanding the difference between
‘back office’ who are concerned with dominant item on the CFO ‘inside-out’ with its monolithic
evolutionary improvement using agenda so consolidation and applications deployed through client-
‘inside-out’ technology improvements. sharing of resources is an server, and ‘outside-in’ with its masses
attractive consideration. of constantly changing services
Driving the ‘outside-in’ business 5. CIO – The traditional IT function consumed from clouds leads to the
‘digital transformation’ are the: is responsible for ensuring the understanding that several different
1. CEO – The CEO seeks new consistent delivery of critical types of software development and
markets and business streams to IT services. Currently the CIO deployment during different lifecycles
grow revenues and increase profits is under pressure to deliver will be needed alongside flexible,
based on innovative business significant savings to help robust and well-managed operations.
models to find and ‘service’ their control budgets and needs
existing and new customers. to find a significant new way TechnoVision, the Capgemini
2. Business Users and Managers to address this in the already methodology for aligning the
– A new generation of digital- tightly managed IT operations. development of technologies with
savvy users and their managers 6. Corporate Services – Another their impact on business, addressed
are importing their knowledge role that has different titles but a this through a simple metaphor based
and expectations in the use of common objective of looking at on four different modes of transport
Web-based ‘services’ on a wide ways to ‘outsource’ whatever is and a hub to better understand five
variety of devices into their roles. a non-differentiating corporate different styles of applications and
These people have already started service. This can range from services that are recognizable:
to exploit cloud-based services, traditional operations outsourcing 1. The TRAIN is a stable, robust
adopted their own mobility to more specialist elements mode of mass transportation. It is
devices, and are making use of such as hardware operations, not flexible but reaches its goal in a
the big data available externally. core functions such as email, or predictable, straightforward way. It
They will drive the enterprise into even business processes such is based on an infrastructure that
new and profitable exploitations. as invoicing and HR that can is designed and built to last for
3. “Chief Innovation Officer” – use shared cloud-based services. decades, and everybody who uses
While the job has many different New procurement functions and that train travels in the same way
titles, most organizations have capabilities will develop within from A to B. The functionality is
smaller groups trying to find new this role to manage the new tasks provided in a highly efficient and
and innovative ways of delivering associated with cloud deployment. standardized way. Many people
for customers. These small groups will be affected when trains do not
have distinctive application and The views, needs and concerns of run. The train is akin to ‘inside-out’
IT needs. They are, in essence, these different perspectives must IT because trains depend on their
inventing the future – and thus at all be considered and built into own infrastructure being built and
times are cannibalizing the present. a cloud strategy. And they are all operated solely for their benefit as
However, such behavior can users of business applications and an overhead.
ultimately damage the enterprise technologies, albeit in different Example: The internal ERP system
as it will lack cohesion in its efforts ways and to different extents. We of a large process-centric department
14

15. the way we see it
Development & Deployment
System SAAS Methodology Acceleration Factories Pricing
environments solutions centers
Personalize Apps Business SCRUM Rapid BI Reports Per Report
An individual’s capability to choose BOBJ Explorer Rapid Design Innovation Apps Factories Per App
their ‘tools’ and how they wish Roambi & Visualization Workshop Menu Card
to ‘interact’ and ‘collaborate’ AppStore
SCOOTER
NetWeaver BPM Cordys BPM SCRUM Rapid BPM Services As a service
Cordys Rapid Design Innovation Per
Differentiate Duet Enterprise & Visualization Workshop functionpoint
A Manager’s capability to build locally SharePoint Rapid Solution Menu Card
unique ‘differentiating’ capabilities 2010 Workshop
CAR
both externally and externally
to create revenue NetWeaver Force.com Common Rapid Solution PI Factory Price per
Sybase Business Reference Workshop interface
ByDesign Architecture As a service
Core Competences (CORA)
HUB
Common, shared core processes
that support each differentiated offer CRM Sales on Deliver Rapid Solution BI (Cubus) As a Service
above, and connect to transactional SRM Demand Rapid Design Workshop Menu Card
IT applications below
SalesForce.com & Visualization Fixed Price
SCRUM
BUS
Comply (ERP, etc.) ERP Business Deliver Rapid Solution Remote As a Service
Traditional Enterprise Applications with ByDesign Workshop Design & Menu Card
organized procedures and data integrity, Configuration Fixed Price
keeping compliant business results
TRAIN
would be a good example of this 3. The CAR is also an agile means of
type of high reliability application. transport but unlike the scooter
2. The SCOOTER by contrast it will support a group of people
represents the complete alternative with a common destination again
being a lightweight, extremely using the public infrastructure.
flexible, individual and very There are many different types
personal method of transport. The of cars, and their owners can
infrastructure for the scooter, both configure and adapt them to reflect
roads and parking, is already in the aspects of their particular likes
place as a public utility just like and dislikes or requirements.
the Internet and Web. It can be Example: A workgroup tasked with
used for the “last mile,” bringing the development and support of a
you to places even cars cannot new product offering which is both
reach. In crowded areas, scooters a short-term task and requires
are faster than any other means active access to and participation Three key actions from today
of transport. It is easy to rent a within the external world.
scooter – just for a day or so – 4. The BUS is also a relatively stable
and explore parts of the city in a mode of mass transportation, but 1. Appoint a leader for cloud
flexible, cost-effective way. clearly with more flexibility. A bus – Or one for ‘inside-out’ and
Example: An example of this can take a detour if circumstances one for ‘outside-in’
lightweight, flexible approach require, and it can be used for
would be a knowledge worker alternative purposes on top of the 2. Set out a strategic roadmap
utilizing a collection of services in a fixed schedule. Moreover, it usually – Involving business and
personal ‘mash up’ to achieve high connects directly with the train technology
personal value almost certainly in system. Buses can be used as both 3. Select a place to pilot cloud
the external world of ‘outside-in’. public and private vehicles, i.e.
The Cloud: Time for Delivery 15

16. ‘outside-in’ and ‘inside-out’, in both applications described above to
cases offering an effective way for co-exist and co-ordinate with each
a larger group of people to gain the other. For example, it enables data
benefits of traveling together to a to pass from an employee’s profile
common destination. to a company’s payroll system
Example: A departmental service to ERP, or a job seeker’s profile
for providing a focused application to benefits payments to ERP.
internally, or externally a
shared services provision for a A good cloud approach combined
similarly focused activity such with existing IT supports the
as a marketing service. matrix of roles, applications and
5. All of these modes of transport services to be found across an
are tied together through a HUB, enterprise. Getting to this position,
best seen as a modern town center however, means appreciating the
venue where trains, buses, cars full impact and devising a strategic
and scooters can all conveniently set of goals against which to deliver
“dock” and people can easily immediate tactical demands. In
integrate their means of transport, particular it means recognizing
while benefiting from a host of the differences between ‘inside-out’
add-on services. and ‘outside-in’ as environments for
Example: A HUB service would governance, delivery and deployment
enable all the individual methods alongside understanding
the benefits of a well-designed
services integration strategy.
16

17. the way we see it
A Roadmap for Cloud Recognizing that this involves a
“All good in theory – so how mindset change as much as it does
to turn it into reality?” That any other, Capgemini believes that a
is the question that so many leadership community needs to come
business managers and public together collectively. This community
administration leaders are asking. may also include customers, suppliers,
The temptation to delay should be and partners who share a mutual
resisted for two simple reasons: interest in transforming an aspect of
■■ Those that are in the vanguard a market place, such as the example
of this initiative – and who are given earlier around an Airport
tackling it competently – will Operating Authority. This community
benefit earliest. With the potential should re-evaluate the context, share
for very substantial savings (it is views and concerns, and re-set the
not unusual to show a business context within which its operations
case with savings of around 25%1), and services will work. This then
they will remain in financially creates a basis for making specific
far healthier positions. And decisions about particular initiatives.
thus they will be able to service
their core role far better. Crucially, approaching this in the
■■ Change will continue regardless traditional manner with “boards,
and it risks engulfing those chairs, and briefing papers” is not as
companies and public effective as taking a far more engaging
administrations that resist, visual and story-telling (use case)
particularly with reference to approach. To that end Capgemini
the ‘outside-in’ model. You only has developed an outline framework
have to look at the extent to (see note below) for the “Journey to
which everyday people are taking Cloud in the Public Sector”. It will:
things into their own hands, ■■ Accelerate the awareness
individually and collectively. building, learning, and decision
For example, people (including making for an organization
corporate executives, public or group of agencies
servants and politicians) are using ■■ Personalize generic,
social networks like Facebook to internationally relevant private or
comment on and find out about public sector material and make it
company and government services. specific, relevant and meaningful
Both businesses and governments ■■ Enable the business and its
need a strategy to take advantage constituent services to be
of the opportunities this offers broken down into manageable
for getting customer feedback components; allow the evaluation
and informing their customers, of options and priorities to take
potential customers and the public. place; and support decision
Without this strategy such social making to phase the reconstitution
media will become an unmanaged of services in potentially
source of false information and different (cloud) models, with
aggressive criticism, but, with an potentially different partners
effective digital transformation ■■ Provide a framework for
program, existing corporations learning, and leading practice
will be able to leverage new sharing, between a corporation’s
customer opportunities leading subsidiaries or public agencies.
to increasing competitiveness.
And in the tough, global markets Cloud is here. The technology
of today, finding new ways to has matured at an exceptionally
differentiate and secure customers challenging time for companies and
is a critical success factor. public administrations. How they
choose to use it will help determine
how successfully they address these
challenges in the years to come.
1
For instance, Capgemini’s “Messaging as a Service” solution offers its customers a 50% overall cost reduction in the (client-generated) business case.
The Cloud: Time for Delivery 17

18. A Brief Technology Overview of 2. The Web: or what we might look
Clouds, Mobility, and Big Data back on as Web 1.0, followed this
Clouds: a simple explanation by providing browser technology
The topic of clouds has been a for the universal management of
recognizable part of the debate on content, a real game-changing
how to improve business using moment in terms of technology
technology for more than two years standardization suddenly
now, ample time for clarification offering real tangible benefit,
on the topic and identification of and changing how companies
the core issues and benefits. Yet could participate in the external
if anything it has become less marketplace by building Websites.
understandable with the passage 3. Web 2.0: more recently added a
of time, as the hype cycle attempts new range of technologies and
to remake almost any product or capabilities around the ability of
technique as a new technology to be people to interact, and share in
considered under the ‘cloud’ label. a new range of so called ‘social’
activities, so named because the
Here’s a simple technology roadmap universal social model created an
building up a series of changes equally radical game-change that
starting with the advent of the put people at the center rather than
Internet and the browser into applications, data or computers.
popular use in the early 1990s: 4. Cloud Services: is the latest
1. The Internet: started a profound stage of this progression adding
change by using standards to the much-needed ability to
provide a simple, yet effective, deliver processes, as universally
universal connectivity accessible services delivered in
capability that allowed anyone a standardized manner from
and anything to be contacted servers in a cloud data center
as and when needed without with a payment model based
predetermined planning and on use and an operating model
implementation of special faculties. based on simplicity in build,
and flexibility in changing the
orchestration of any process.
Just reflect for a moment on the
What is the Cloud? Why so much confusion?
importance of this last point
and consider how difficult it is
currently to achieve processes
by using the content model to
New Markets
& Revenues create forms. As social CRM
continues the transformation of
business models around ‘servicing’
customers, and marketplaces better,
Productivity of People Innovative Business Models by matching customer demands
Social Networking Digital Transformation
Front Office and responding to events in
Collaboration Servicing Customers
Internal Tablets & Smartphones Front Office Revolution optimized ways, the importance
of an effective process model to
? manage the cycle from initial
Evolution of IT Capabilities Computing Resource Shift interest to placing an order is clear.
Virtualization of Data Center Everything as a Service
Flexibility and Agility IaaS, PaaS, & SaaS But quite how does this translate
Development & Test
into the term ‘clouds’? Strangely
Back Office External enough it is simple. The above
Internal Resourcing four technology steps are all based
on using a technology model that
is described as ‘loose-coupled,
stateless and non-deterministic’.
18

19. the way we see it
In contrast, traditional enterprise inside the firewall onto an external presentation sent to it by a Web
IT applications are integrated in a device with the technology server if it is content, or by a cloud
manner described as ‘tight-coupled, focused on overcoming the need to server if it is a set of services. As a
state-full and deterministic’ allowing accommodate periodic connection practical example consider Apple,
enterprise architecture to draw and disconnection. As such a key its App Shop and its iCloud. The
diagrams which show exactly what part of their functionality was to Apple App Shop holds the ‘services’
is connected to what and for what be able to take and store data in a or ‘apps’ that a user can choose to
purpose. With the new technologies cache in the external device leading use and provides the authentication
in a loose-coupled model there to concern over the security of the for their use, a download provides
are no permanent connections device itself. This classic example of the enabling service element, but
so it’s not possible to draw up an the ‘inside-out’ model of traditional IT in apps such as iFly all the data or
enterprise architecture diagram in led to applying internal governance information is supplied as a real-
the same way. The only possibility to the first generation of external time connection under REST. In the
is to show which users and devices devices such as ‘locked down’ laptops case of a banking app this is a very
are part of the same ecosystem, then with encrypted drives. This practice secure method of separating the user
represented by a drawing of a cloud. has continued even as a second in the ‘outside-in’ environment from
generation of more sophisticated access to the secure traditional IT
It therefore follows that by definition devices – led by smartphones and applications, data and systems housed
anything based on the standard tablets – has led to a change in in the ‘inside-out’ environment.
client-server tight-coupled model what and how users work. These
cannot truly be defined as a cloud devices and their users are severely A user’s data is held on Apple iCloud
as it will not exhibit loose-coupled compromised in their functionality by in the form of cloud storage and
architecture! But some of the key these practices because they do not can be accessed by any of the user’s
technologies that make up the belong to the ‘inside-out’ world of devices; PC, iPad, iPhone, or iPod
total technology model of the traditional IT, but the now ‘outside-in’ that possess the authentication key
Cloud can be applied individually. world of the Web and clouds. thus ensuring that all activities are
Virtualization in particular can be perfectly synchronized at all times.
used highly effectively to improve The term ‘mobility’ is associated This is in very direct contrast to the
the operating efficiencies of existing with devices that are able to function older form of mobile client-server
data centers. This is a sensible and beyond the governance and delivery application, and its requirement
highly recommended approach, of ‘inside-out’ enterprise applications, for an extensive and complicated
but a virtualized server running and are able to make use of all types synchronization to maintain ‘state-
applications is not able to host of Web-based capabilities including full’ data. As such, the Cloud and
‘services’ and act as a cloud server cloud services in an ‘outside-in’ mobility are inherently part of the
without an additional specialized manner. For these devices, and the same architectural model, and
layer. This layer should conform people using them, the external that leads to the third part of the
to standards and practices such focus is predominantly on doing model around ‘unstructured’ data,
as the Open Data Center Alliance business with others, and using often referred to as big data.
to allow ‘services’ to be hosted external information from the
and orchestrated with those of Web. As the architectural model is Big Data
other businesses, or government loose-coupled, (hence the ‘mobility’ Client-server and its applications
departments, in the same manner between all resources), stateless and are data-centric and as the data
as Web servers are standardized to non-deterministic with browsers held is directly associated with
facilitate content access and ‘mashups’. as a key delivery element it is also the applications that use it via
thin client and requires hosting of tight coupling it is referred to as
We can break the technologies its services and data. The Cloud ‘structured’ and held in relational
down into four groups as shown in satisfies this requirement and indeed databases. Various forms of storage
‘What is the Cloud? Why so much enables the whole model of ‘mobility’- have been developed to handle the
confusion?’ but in time these will based as applied to ‘outside-in’. huge amounts of data an enterprise
become integrated into a cohesive set processes in its daily transactions
of capabilities as shown in ‘Integrated The term ‘stateless’ means that there and mounts up over the year(s),
Enterprise Cloud Computing’. is not a data model in the sense with data warehouses and data
of the client-server application marts, online and offline storage
Mobility environment, but rather there is what all playing their parts. At the same
The first generation of ‘mobile’ is referred to as a ‘Representation time techniques for quantifying
solutions supported the delivery of State, usually called ‘RESTful’ the data, Master Data Management,
of enterprise applications from whereby a browser displays a screen or analyzing particularly large
The Cloud: Time for Delivery 19