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Facilitator: Dr. Tushar K. Hazra Speakers: Marc Crudgington, Nikita Reva, & Michael Bennett The Business of Cloud Computing 2012: From Transformation to Sustainability May 21 – 22, 2012 THE BUSINESS CLOUD WORKSHOP: A Roadmap to The What, Why and How

Business Of Cloud Computing Workshop Final

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Cloud Computing presentation given by myself and three others during a workshop, The Business Cloud Workshop: A Roadmap to The What, Why and How,at a Cloud Computing conference, The Business of Cloud Computing 2012 held on May 21-22 in Dallas, TX.

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Page 1: Business Of Cloud Computing Workshop Final

Facilitator: Dr. Tushar K. Hazra Speakers: Marc Crudgington, Nikita Reva,

& Michael Bennett

The Business of Cloud Computing 2012:From Transformation to SustainabilityMay 21 – 22, 2012

THE BUSINESS CLOUD WORKSHOP: A Roadmap to The What, Why and How

Page 2: Business Of Cloud Computing Workshop Final

AgendaAn Overview

Workshop Topic and FormatIntroduction of SpeakersUnderstanding Attendee Interests

Part I: IntroductionSetting the Stage for the Workshop

Part II: Cloud Computing as EnablerMaking Cloud Work for You

Part III: Cloud Decisions for Your EnterpriseBuilding on Clouds – what You Should or Must Consider

Part IV: Roundtable DiscussionsSharing Thoughts, Observations, and Lessons Learned

2

Page 3: Business Of Cloud Computing Workshop Final

An OverviewWorkshop Topic and Format

Foundation to PracticeDifferent PerspectivesSharing Knowledge and Experience

Introduction of SpeakersTushar K. HazraMarc CrudgingtonNikita RevaMichael Bennett

Understanding Attendee Interests

3

Page 4: Business Of Cloud Computing Workshop Final

Part I: Introduction

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Setting the StageFoundationDefinitions

What, How, and WhyPublic, Private, Community, and Hybrid

Benefits and LimitationsKey Areas for You to Consider

Cloud ArchitectureCloud StrategyCloud Architecture GovernanceCloud Security

Page 5: Business Of Cloud Computing Workshop Final

Business of The Cloud – Few QuestionsAre You Using Cloud Computing?

If Yes, Why?If Not, Why Not?

What Type of Cloud are You Using?Public, Private, Community or Hybrid

What has been your experience like so far?What are some of the lessons you have learned?

5

Page 6: Business Of Cloud Computing Workshop Final

Business of The Cloud – FoundationFundamentals & Recapitulation

What is Cloud Computing?Shift in Computing Paradigms

Components of Cloud ComputingLayered ArchitectureService Models

Cloud Architecture for EnterpriseCloud StrategyCloud Architecture Governance

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Page 7: Business Of Cloud Computing Workshop Final

Fundamentals• What is Cloud Computing?

As NIST defines – “Cloud computing is a model for enabling convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction.”

7

Page 8: Business Of Cloud Computing Workshop Final

FundamentalsWhat is Cloud Computing?Five Key Characteristics

On-demand self serviceUbiquitous network accessLocation-independent resource poolingRapid elasticityPay per use

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Page 9: Business Of Cloud Computing Workshop Final

Fundamentals• What is Cloud Computing?

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Application

Platform Architecture

Virtualized Infrastructure

Hardware

Facility

Consumer

SaaS

PaaS

IaaS

Co L

o

Provider

SaaSPa

aSIaaSCo

Lo

Adapted from NIST Model

Page 10: Business Of Cloud Computing Workshop Final

FundamentalsWhat Cloud Computing is NOT…

Cloud computing is NOT an alternative to your internal IT• Don’t forget to manage your key IT resources

Cloud computing is NOT another form of outsourcing• SLAs with your cloud providers require clear and

transparent oversight

Cloud computing is NOT same as Web services• Cloud computing and SOA has a relationship

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Page 11: Business Of Cloud Computing Workshop Final

Recapitulation – Shift in Computing Paradigms

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Mainframe Computing

PCComputing

NetworkComputing

Internet Computing

Grid Computing

CloudComputing

Six Computing Paradigms

Page 12: Business Of Cloud Computing Workshop Final

Recapitulation – Six Computing Paradigms

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• Evolution

1. Mainframe Computing

User Terminal Mainframe

User PC

2. PC Computing

User PCServer

Server3. Network Computing

Page 13: Business Of Cloud Computing Workshop Final

Recapitulation – Six Computing Paradigms

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• Evolution (Continued)

User PC

Server

Server

4. Internet Computing

Internet

User PC

5. Grid Computing Grid

User PC

6. Cloud ComputingCloud

Page 15: Business Of Cloud Computing Workshop Final

Components of Cloud Computing

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• Layers and Service ModelsApplication

SaaS

PlatformPaaS

InfrastructureIaaS

Virtualization

Servers & StoragedSaaS

Development Resources – development platform, software components, design tools, compilers, testing suites

Application Resources – typically delivered over the platform of the Web – application components at enterprise level

Infrastructure Resources – servers, disks, machines, CPU – also network, routers and switches

Page 16: Business Of Cloud Computing Workshop Final

Cloud Computing for Enterprise

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Common Types of CloudsPublic – Cloud infrastructure is owned by one provider

Providing services to large industry group or public

Private – Cloud infrastructure is owned or leased by one organization

Services are consumed by the same organization

Hybrid – Cloud infrastructure is combination of two or more cloudsCommunity – cloud infrastructure is shared by several organizations with shared concerns such as mission, security requirements, policy and compliance considerations

Page 17: Business Of Cloud Computing Workshop Final

Cloud Architecture for Enterprise

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Best Practices to Follow before Considering Cloud Computing for Your Enterprise

Assess the business situation firstUnderstand and never underestimate the risksConsider safety measures in the use of cloud computingRecognize the connection of cloud computing with other Web technologies

Page 18: Business Of Cloud Computing Workshop Final

Cloud Architecture for Enterprise

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Enterprise Architecture Measurement & Maturity

BusinessStrategy

ITStrategy

BusinessArchitecture

ITArchitecture

EnterpriseArchitecture

EnterpriseStrategy

Information(Data)

Architecture

TechnologyArchitecture

(Infrastructure)

Application(SOA)

Architecture

drives

drives

influences

influencesguid

es

ArchitectureDomains

Operations/Execution

BusinessPortfolio

Transition &Operations

Support

ProgramManagement

BusinessDrivers

Enterprise Architecture Governance

Focus Shifts From Strategy Formulation to Solution Deployment

Business Value

Delivery

supports

Create Cloud Value Proposition

Formulate Cloud Strategy

Supports

Facilitate Cloud Planning

Support Cloud

Deployment

Strategic Planning Solution Delivery

Page 19: Business Of Cloud Computing Workshop Final

Cloud Architecture for Enterprise

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Steps to Offer Architectural Support to Your Enterprise for Cloud Computing

Create Cloud Value Proposition – work closely with business organizations to make a business caseFormulate Cloud Strategy – recognize the scope, limitations, benefits and risks associated with potential cloudsFacilitate Cloud Planning – ready business and IT organizations to embrace cloud computing – prepare a roadmap for cloud transitionSupport Cloud Deployment – identify, evaluate and select right cloud provider(s)

Page 20: Business Of Cloud Computing Workshop Final

Cloud Computing for Enterprise

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BenefitsCostOptimal Network UsageInnovativeExpandabilitySpeed to implementation or deploymentGood for environment

LimitationsSecurity concernsControl delegationReturn on investment on existing IT assetsOpennessComplianceService level agreements

Page 21: Business Of Cloud Computing Workshop Final

21

BREAK

Page 22: Business Of Cloud Computing Workshop Final

Part II: Cloud Computing as Enabler

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Making Cloud Work for YouInnovation and Cloud

When Can an Enterprise Leverage them?What are the Risks, Issues, and Concerns?

Cloud and Mobile Computing – The ConnectionWhat Effect They May Have on Each OtherWhat you must be aware of?

Cloud, Big Data and the EnterpriseWhat are the key challengesWhat works and what doesn’t??

Page 23: Business Of Cloud Computing Workshop Final

Part II: Cloud Computing as Enabler

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Innovation and Cloud: When Can an Enterprise Leverage them?

New Business Enablement (division, acquisition, spin-off)Transitioning Applications (new implementation, changing vendors, new version)Company Culture Shift (legacy mindset to cutting edge)Small Business/Start-upThe Business Demands Cloud (internal/client)IT Fails To Meet Needs

MC

Page 24: Business Of Cloud Computing Workshop Final

Part II: Cloud Computing as Enabler

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• Innovation and Cloud – What are the Risks, Issues, and Concerns?

Unmet financial objectives (think short-term and long-term)Lack of Service Orientation (processes, interfaces, applications)Legal, Contractual, Compliance (force majeure, privacy, regs.)Cultural Fit (within IT, within the enterprise, customer/clients)Provider Quality (not meeting SLA’s, bandwidth, existence)Security (not insecure just adapt to cloud, internal concerns)

There is no such thing as AaaS (Accountability as a Service)

MC

Page 25: Business Of Cloud Computing Workshop Final

Cloud and Mobile Computing – The Connection

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What effect they have on each otherCloud enables delivery of very rich applications to a mobile workforce. (expansion of capabilities). Mobile devices enable ubiquitous connectivity to these capabilities. Any device, Any time, Any where.Introduces new risks of data loss and threats. Increased threat of IP theft.The consumerization trend had added BYOD to the mix.Connect personal devices to company clouds.Segregate personal and company data on mobile devices.

NR

Page 26: Business Of Cloud Computing Workshop Final

Cloud and Mobile Computing – The Connection

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What you must be aware ofYour cloud can walk away in your former employees pocketCannot avoid this disruptive trend.Employees are trying to access corporate systems and cloud from their mobile devices. Security and compliance requirements apply to mobile devices.Must assess the risk and devise a strategy.Strike a balance between security and productivity

NR

Page 27: Business Of Cloud Computing Workshop Final

Part II: Cloud Computing as Enabler

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Cloud, Big Data and the Enterprise: What are the key challenges?

Volume, velocity, variety, valueData growth (over 2220 petabytes/day, 1 petabyte = 1000 terabytes, 1 terabyte = 1000 gigabytes)Technical Talent (data architects, data scientists)Business value (transferring data to ROI, revenue, profit)Focus regarding current issues

MC

Page 28: Business Of Cloud Computing Workshop Final

Part II: Cloud Computing as Enabler

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Cloud, Big Data and the Enterprise – What works and what doesn’t

Plan for all dimensions of data (strategic value, future needs, operational effectiveness, regulations, redundant data, ROI Data patterns for better decision makingBig Data to specific business goalsCreate a Center of Excellence (knowledge transfer)Plan for PerformanceUtilize governance to overcome lack of skillsCloud: DaaS (try before buy, lead with data not apps, internal, quality focus, training, measure results

MC

Page 29: Business Of Cloud Computing Workshop Final

Business of The Cloud – Questions for Attendees

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Innovation and Cloud What are some ways your Enterprise has utilized cloud?Have you experienced the business going around IT to implement cloud solutions?Has anyone had an issue with a vendor that caused the relationship to end or was a major disruption?Are there risks/concerns not mentioned or what do you view as the greatest risk/concern? Why?

MC

Page 30: Business Of Cloud Computing Workshop Final

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BREAK

Page 31: Business Of Cloud Computing Workshop Final

Part III: Cloud Decisions for Your Enterprise

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Building on Clouds: What You Should or Must Consider Business and IT AlignmentThe Role of a CIO• Responsibilities and Accountabilities• An Action Plan – What, How, When, Why

Building a Right Team• Who is on Your Team?• Who Should be on the Table? And, Why?

Law and Order in CloudsWhat Goes in Cloud SLA?What is Cloud Governance? Who is in it???

Page 32: Business Of Cloud Computing Workshop Final

Building on Clouds

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What You Should or Must Consider in Business and IT Alignment

Variable vs. fixed (flexible, deliver value, development)Time-to-Benefit reduced (user base, IT responsive) Refocus IT resources (technologists/operators to strategist/architects) Information assets vs. hardware assets– Data management (contents, business rules, processes,

quality)

IT Center of Excellence– ROI focus, project management, business partner, imbed IT

MC

Page 33: Business Of Cloud Computing Workshop Final

Building on Clouds

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The Role of a CIOResponsibilities and Accountabilities

Business acumen (change agent, value delivery, partner)Technologist to Strategist (articulate value, identify needs, revenue streams, Chief Risk Officer)IT operations (manage staff, reallocate/retrain, relationships)Business (educator, business optimizer, governance)

MC

Page 34: Business Of Cloud Computing Workshop Final

Part III: Cloud Decisions for Your Enterprise

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Building on Clouds: An Action Plan – What, How, When, Why

Vision (benefits, how it will transpire, end goal)Link to Business (operational value, cost savings, segment vision into action items)Portfolio Analysis (cloud ready, cloud future, not cloud, benefits for each)Materialize Strategy (how it will enable business, value delivery, why or why not cloud)Road Map Creation (financial analysis, technology change, IT personnel assessment, types of cloud/s, vendor, meet goals)

MC

Page 35: Business Of Cloud Computing Workshop Final

Part III: Cloud Decisions for Your Enterprise

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Building on Clouds: An Action Plan – What, How, When, Why (Continued)

Contingency Plan (plan for change, plan for resistance, plan for roadblocks, plan for failure)Execute Plan (IT staff changes, IT/business interaction, vendor management, start simple/small)Training (end user training, vendor/IT relationship building, executive briefings)Metrics (progress of implementation, value achieved, cost savings, stakeholder value) Re-assess (to improve, to avoid, what was missed)

MC

Page 36: Business Of Cloud Computing Workshop Final

Part III: Cloud Decisions for Your Enterprise

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Building the right teamWho is on your team? Who should be at the table?Avoid redundant solutions and ‘Cloud Creep’. – Business

• Key business stakeholders.

– IT• Account Management-Face of IT to the business• Commercial-Vendor mgmt• Legal-Contractual agreements• Executive Steering Body-Risk council• Senior Mgmt-Leadership• Enterprise Architecture-Solution Feasibility and Integration• Security Specialists-Assess Security

Engage others as necessaryNR

Page 37: Business Of Cloud Computing Workshop Final

Part III: Cloud Decisions for Your Enterprise

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Building the right processWhat should be the process?Establish gates to assess Cloud

GOVERNANCE GATE

Top 3 Boxes Green

FEASIBILITY GATENone of 12 Boxes Red

PROJECT CLOSE GATE

All 12 Boxes Green

Sponsorship Benefits Case Business StrategyFunctionality Usability and Access Solution MaturityScalability/Flexibilty Support and

StandardizationInteroperability

Security and Compliance

Information Management

Performance

NR

Page 38: Business Of Cloud Computing Workshop Final

Part III: Cloud Decisions for Your Enterprise

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Security in the CloudWhy traditional security does not work?• Traditional Information Security focuses on protecting

your moat.• The cloud is not a moat. The cloud is ubiquitous.

How to define a strategy for assessing Cloud.• Avoid the rain. Build a strategic Cloud Assessment

Program.• Do not reinvent the wheel. Leverage industry

recognized Guidance.

Industry Best Practices Enterprise Gap Analysis

Strategic Cloud Assessment Program

NR

Page 39: Business Of Cloud Computing Workshop Final

Business of The Cloud – Questions for Attendees

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• Building on Clouds: What You Should or Must Consider

• Has your business experience better alignment through cloud implementation?

• How have you seen the role of the CIO/IT change since adapting cloud strategies?

• What are some best practices you can share for adopting cloud?

• Building the right team • Have you found it challenging to define a strategy?• Once you have defined a strategy, have you found it challenging

to engage the right people?• Do you feel your organization has a mature understanding of

the cloud?

Page 40: Business Of Cloud Computing Workshop Final

Business of The Cloud – Questions for Attendees

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• Building the right process• Do you have a process for assessing cloud solutions, if so

what does it look like?• What are some of the best practices you can share?

• Security in the Cloud• What are you biggest concerns with Cloud Security?• How does your organization assess Cloud Security?• Some organizations feel the cost and efficiency savings

outweigh security concerns. What is your stance?• Do you implicitly trust the big players (Google,

Microsoft)?

Page 41: Business Of Cloud Computing Workshop Final

Law and Order in Clouds

Transparency– Geographic Concerns– Processes– Data Security

Practices

41

Data Security–Audit Rights–Confirmation

MB

Page 42: Business Of Cloud Computing Workshop Final

Law and Order in the Cloud: Security

HIPAAHITECH ActGLBFederal Financial Institutions Examination Council RegulationsPIPEDASOX

FTCStored Communications ActElectronic Communications Privacy ActPCI

42MB

Page 43: Business Of Cloud Computing Workshop Final

Law and Order in the Cloud: SLAsUptime

“Planned” vs. “Emergency” DowntimeReporting Measurement ToolsRemedy vs. Focusing ToolReporting PeriodTiming of MaintenancePersistent DowntimeDisastrous Downtime

Other SLAsBreak/FixHelpdeskBPO - ResponsivenessProcessingDisaster Recovery

What Happens After SLA Triggered?

43MB

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Law and Order in the CloudWarranties

Functionality/Lack of DescriptionChanging FunctionalityServicesNo Price Guarantees

DisclaimersLimitations of LiabilityIndemnitySubpoenas, Litigation Holds, Legal Process

44MB

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Law and Order in the Cloud

External GovernanceReturn of DataSuspensionLeverageMulti-tenancyPublic/Private HybridPublic Sources of Information

Internal GovernanceUnderstand DataBackup/DR PlansBreach Notification PlanTransition PlanPrivacy Pre-AuditData MapCreate Awareness

45MB

Governance, Does it Exist?

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BREAK

Page 47: Business Of Cloud Computing Workshop Final

Part IV: Roundtable Discussions

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• Sharing Thoughts, Observations, and Lessons Learned– Suggested Topics

Page 48: Business Of Cloud Computing Workshop Final

Part IV: Roundtable Discussions

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• Managing Cloud Computing at Your Enterprise– What is the due diligence process for evaluating

cloud providers?• Independent Evaluation• Internal Assessment• Incorporation of Industry best practice

– What & how Cloud Service is being Managed?• Recognition of cloud management capabilities• Consistency of the management with target

usage and users

Page 49: Business Of Cloud Computing Workshop Final

Part IV: Roundtable Discussions

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• Managing Cloud Computing at Your Enterprise – Few other areas of discussion– How are heterogeneous systems supported?– How are availability commitments ensured?– How is system integration enabled?– What is integrated within services management?– How is regulatory compliance accommodated?– How is security management implemented?

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Thank you for your time!!

Tushar K. Hazra, PhDChief Technology Offi cer & [email protected] . (443)540-2230

Marc [email protected]. (832)592-3854Nikita RevaNikita.Reva@eff em.comTel. (312)391-8825Michael BennettMbennett @edwardswildman.comTel. (312)201-2679