Cloud Computing Key Trends

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    Kishore S. SwaminathanChief ScientistAccenture

    Sanjeev Narsipur

    Lead, IT Strategy and TransformationAccenture

    Cloud Computing: Key Trends

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    It seems as if cloud computing ismostly about efficient allocationof computer resources andcapabilities, but that is onlypart of the story. To understandits powerful and long-term

    potential, we need to shift ourfocus elsewhere. In this article,we look at the bigger picture forenterprise users and examinewhy cloud computing has thepotential to change the IT and

    business landscape.

    Cloud Basics

    Cloud computing is a modelor, as some call it, styleof computing that givessubscribers on-demand accessto configurable computingresources as a service via theInternet. Consequently, BusinessProcess as a Service (Baas),Software as a Service (SaaS),Platform as a Service (PaaS),and Infrastructure as a Service

    (IaaS) can be dynamicallyprovisioned and then releasedwith minimal managementeffort or involvement of theservice provider.

    Although not quite as simpleas turning your electricalswitch on and getting billed forelectricity usage, the analogymakes a pointyou pay only forthose hardware and softwareresources and capabilities (inthe cloud) that you use. Today,we live in a world where usersexpect technology to adaptto their needs, and not theother way around. So the mostdesirable situation is for cloudservices to be intuitive, user-

    friendly and in keeping with thebusiness objectives and industryneeds of clients.

    Given the diversity in theexpectations of enterprise users,their security requirements andobjectives, cloud providers areoffering services to their clientsunder four broad operational

    modelsprivate, public,community and hybrid.

    From Concept toRealityA common misconceptionabout cloud computing is thatit is a do-it-yourself modelfor business and IT services,

    requiring no customizationat all. While it is true thatcompanies do not have theheadache of investing inand managing on-premise ITresources, cloud computingis by no means a plug-and-play or turnkey solution. Atthe very least, it will require ITexecutives to manage multiple

    external cloud providers and aninternal IT environment, whichis likely to be a combination ofold and legacy applications andnew applications that run ina virtualized environment (aninternal cloud). Since at present,the integration of such servicesis not part of the technicalor business models of cloudproviders, enterprise users willneed to seek out integrationservices elsewhere.

    Another view you are likelyto come across is that cloudcomputing will eliminatethe need for outsourcingor integration services. Asexplained above, companies willneed to manage a complex andhybrid IT environment. They will,therefore, need help in:

    Overcoming a numberof concerns pertaining toinformation security, dataintegrity, speed, efficiency andservice availability

    Designing business models

    that are more dexterous andagile because they can adapttheir very business design onthe fly and are based on servicesfrom multiple providers

    Designing industrial scaleapplications and servicesthat are readily and securelyconfigurable in accordancewith their specific environment,

    needs and business goals

    For these reasons, the importantintegration and advisory rolesplayed by some outsourcingproviders is likely to continuein the near future and in alllikelihood usher in a totally newera of outsourcing. Furthermore,we may even see strong

    collaboration between serviceproviders and clients aimed atinnovation.

    In the conventional model,the main aim of integrationservices is to ensure thatmultiple vendors work togetherto manage basic services ina common and consistent

    way. In the cloud computingenvironment, integration isabout ensuring data consistencyacross multiple services, a taskthat calls for an understandingof the end-to-end businessprocess at a company. Theseaspects will become the focusand point of differentiation forcloud providers in the future.

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    Cloud to Serve anEntire IndustryCloud computing hasthe potential of giving acomprehensive view of the

    disparate segments of anindustry and increasing thescope of business-to-businessinitiatives. You may recall thatin the 1980s when ElectronicData Interchange (EDI) allowedinter-dependent segments ofan industry to share data, verycomplex supply chains could bemanaged. In the travel industry,airlines, car rental companiesand hotels could shareinformation to provide travelersan integrated travel experience.However, since the businesslogic was hardwired amongsystems, information sharingwas limited only to a smallnumber of business partners.

    As the practice of cloudcomputing matures, the dataand process divide betweenand among companies is likelyto narrowdevelopment thatwill transform the IT landscapein fundamental ways. Thatis because the moment acompanys IT systems migrateoutside the firewall, they cancommunicate and exchange

    information freely withother IT systems to executebusiness processes acrosscompany borders. Thanks tointegration standards suchas web services and service-oriented architecture, cloudcomputing can facilitate theon-demand configurationand re-configuration of inter-

    enterprise business processes atan industrial scale.

    In other words, cloud computingmakes it very easy forcompanies to configure businessprocesses that integrate internalcomponents and many externalcomponents into complex yet

    fluid processes around theirbusiness needs.

    Today, many industries arefragmented and too small insize to invest in sophisticatedbusiness applications andIT capabilities. For instance,the construction industrycomprises architects, builders,

    workers, material suppliers,construction equipment makers,warehouses, operators, buildinginspectors and many otherentities. These segments arepresently underserved by theIT service providers, given thatdata centers and applicationssupport the needs of (mostlylarge) companies from withinthe confines of their respectivefirewallendoskeleton modelof ITinstead of providing thesame support from outside thefirewallexoskeleton model ofITthe modus operandi of cloudcomputing.

    Since cloud providers can meetthe requirements of small as

    well as large enterprise clients,they can serve the needsof an entire ecosystem byconsolidating the process anddata flows of the segments thatcompose an industry.

    In the not too distant future,cloud computing is likely tosolidify and expand the reachof business process utilitiescompanies that provide simple,common and repetitive business

    processes such as sales taxcalculation, collection andremission on a massive scale.Today, a few such examplesexist. VeriSign provides credit-card authorization to millionsof e-commerce vendors, andPayPal provides paymentoptions to small vendors forsmall transactions. In the verynear future, we are likely to seethe rise of hundreds of suchutilities specializing by industryand geography. This, in turn, willmake enterprise systems simplerby avoiding the replicationand maintenance of commonbusiness processes.

    In the Coming

    YearsThe bigger and more impactfulcloud computing stories will beless about low IT overhead, on-demand pricing, cost reduction,flexibility, scalability, speed-to-market and high performancecomputing accruing to specificcompanies or segments of anindustry. They will, in fact,be more about how cloudcomputing is helping an entireindustry to:

    Transform the way it doesbusiness

    Operate at a much higher levelof efficiency and profitability

    Invest savings in strategicprograms

    Expand its reach acrossgeographies

    Increase the range of offerings

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    With these developments, weare likely to see the emergenceof new integrated industrybusiness models that call forgreater internal and externalcollaboration among companies

    at various levels within anindustry.

    It would not be an exaggerationto say that the future ofcloud computing is anythingbut cloudy. In fact, when themomentum picks up on anindustrial scale, it is likely torain cats and dogs!

    Accenture CloudComputing

    Center ofExcellenceAccenture has a CloudComputing Center of Excellencein Bangalore, India that serves

    clients around the world. TheCenter provides scalable andend-to-end cloud services inkey areas including IT strategy,public and private cloudinfrastructure, applicationbuild and migration into cloud,and cloud security. The Centerhas seasoned experts who arehighly knowledgeable about

    cloud technologies and haveimplemented complex cloudprojects.

    Here is how we help

    clients

    IT StrategyWe identify a clear cloud

    roadmap and prioritizesignificant opportunities acrossinfrastructure, applicationsand business processes. Thispragmatic approach ensuresalignment with the businessobjectives of our clients andhelps develop new areas of

    business.

    Infrastructure cloud:build, integrate andmanageOur cloud experts help clientsbuild agile, scalable anddynamic services from theircurrent legacy environments,integrate them seamlessly intopublic clouds and manage the

    integrated environment.

    Cloud application andSaaS solutions factoryWe provide support to clientswho want to build their ownapplications, implement pre-packaged software services orre-platform legacy applications

    onto cloud-based platforms byleveraging our expertise in

    Proprietary Methodologies

    We use proven roadmaps,Q-Cloud methodologies,Accenture Cloud Accelerator,Accenture SaaS BusinessSolutions suite andimplementation frameworks, allof which help clients minimizerisk and optimize cost

    Implementation and

    Management

    We draw on our experiencesin migrating and managingcomplex environments as wellas on our deep understanding

    of governance models whenproviding services in bothconventional and cloud basedbusiness models

    Industrialized Delivery

    For more than a decade, wehave developed our capabilitiesand cloud factories around anecosystem of cloud leaders such

    as Salesforce.com, MicrosoftAzure, Google, Amazon, vCloudand Workday, which makes usa reliable partner in the eyes ofour clients

    Cloud securityAs organizations move theirapplications and infrastructure

    into the cloud, our team ofsecurity experts help clientsthoroughly re-evaluate theirexisting security deliverymodels, architectures andprocesses to ensure that wenot only help them meet theircloud adoption objectives butalso safeguard their cloudinfrastructure, applications and

    data.

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    Research andinnovationOur vision is to innovate anddevelop services that have apositive impact on the bottom

    line of a company in the long-term. Our cloud services allowclients to reach markets thatwere previously unapproachabledue to high cost and capitalinvestment or other restrictionsand to reshape industries byutilizing innovative distributionchannels, stronger analytics andaltered competitive landscapes.

    Accenture's Cloud Program hasbeen working with industryexperts to develop industry-specific point of view (PoV)papers for the opportunities thatcloud computing will generatein the coming years. These PoVsare bound to generate interestand excitement among clientsas they will help them meet

    specific needs of their respectiveindustries.

    CareerOpportunities atAccentureIf you enjoyed reading thisarticle and would like to

    explore career opportunitiesin India with Accenture, weencourage you to visit us andlearn about vacancies, our workenvironment, benefits, careerpath and much more.

    About Accenture

    Accenture is a globalmanagement consulting,technology services andoutsourcing company, withapproximately 236,000 people

    serving clients in more than120 countries. Combiningunparalleled experience,comprehensive capabilitiesacross all industries andbusiness functions, andextensive research on theworlds most successfulcompanies, Accenturecollaborates with clients to helpthem become high-performancebusinesses and governments.The company generated netrevenues of US$25.5 billion forthe fiscal year ended Aug. 31,2011. Its home page iswww.accenture.com

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    All rights reserved.

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