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What stage is Cloud Computing now? How can you succeed in implementing a Cloud Strategy?
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GigaOM Structure 2011
Cloud Computing DiffusionTechniques for Accelerated Adoption
Raman Kannan
Executive Coach
Independent Consultant
+1-646-244-4943
GigaOM Structure 2011
This is a fantastic time to be
entering the business world
Bill Gates
GigaOM Structure 2011
He thought he lucked out…
• Did he? really…Gates bought DOS for 50K
• Twenty year old today can download an OS for free
• RHAT downloaded one and exited with a whopping IPO!
• You can monetize your idea free of cost – Amzn/free, googleapps
– Reach a worldwide market place using one of the many cloud operators
some totally free, others for less than the cost of pizza per month
Software is free, hardware is free … just your idea and the market place
Consider yourself luckiest so far, to be a tech nerd now…
GigaOM Structure 2011
Hurry up…!
• Nothing is still anymore
• Gates also said “business is going to change more in the next 10 years than it has in the last 50.”
• With free Cloud offerings, services will now become free – actually old news…
– Video, email, news, market info have been
free for years now
GigaOM Structure 2011
S Curve: Everett M. Rogers
Innovators pre AMZN – Condor (UWisc 1985)
Early Adaptors – 2007/8
Basecamp
Rosenblatt Securities
Innovators 2006 AMZN2.5%
13.5%
34%
Early Majority – 2010-2013
34%
Late Majority – 2010-2013
16%Laggards – 2013 and beyond
(is it safe out there crowd?)
GigaOM Structure 2011
What next?
• Domain Specific Cloud Cooperatives– Entities that cannot afford private cloud
– Industries with very strict requirements• Healthcare
• Science research – genetic, biotech, SETI, NEO search– NASA can store NEO Observation data on a read only cloud– Anyone can experiment and help detect cosmic collision 100 years in advance
• Shared Government Services – Databanks, fingerprint, criminal and other very large databases
• Finance– Regional banks, Credit Card Companies, Actuarial, Credit Rating– Securities firms like Rosenblatt – Cooptition is the word
Neither private nor public! Why Quasi?
Unmet existential industry specific requirements.
Public Cloud Operators do not get it. One size, fits all has never worked
Private cloud is too expensive to bite off on their own.
A few of them will form Cloud Cooperatives
GigaOM Structure 2011
Financial Industry
• FINRA collects a lot of data already– FINRA can operate such a cloud – why not?
– Members can subscribe and pay for the service
– Members can submit to the FINRA cloud
• Risk Management Utility– Every Firm invests in Risk Management infrastructure – colossal
waste
• market data (grows by GB every day)
– Same data every firm gathers, stores….
• don’t need the iron in the AM
– After close before CEO’s supper – need all the cycles I can get
• Valuation Service – ditto– Imagine the resulting transparency in Valuation & Risk
Management
GigaOM Structure 2011
Tipping Point – what is it?
• A transactional service that is consumer oriented just like email, youtube– Number Crunching Cloud, Random Number
Generators, why not?
• In motion already? -- Is ICloud it?– as friends and family get comfortable with
– shared music and video libraries – print libraries as well
– DARPA better be working on PetaNet
GigaOM Structure 2011
I am a Believer…
How do I go about it?Admittedly skewed by my limited experience in Wall St..
But may be relevant for other industries as well…
Because it worked for me and it is all commonsense…I think it can work – for you too.
How to successfully introduce Cloud Computing?
GigaOM Structure 2011
It is the Process! Stupid!
• Cloud Computing is an Organizational Shift
• Not an exercise in the server room!
• Engage Operations, Compliance
– Include Finance as well
• Lead them beyond buzz word/glamour of clouding
– What will they gain?
– What will they give up? Mostly risk taking!
GigaOM Structure 2011
Benefits!
– Fail safe/redundancy
• Corporate networks failed
– Cloud based Email service worked!
– Cost benefits
• No more monthly hardware purchase
• Physical limit –
– Our server room -- maxed out on amperes could not add additional servers – no more load.
– Process efficiency – location independent
• Share large datasets over a single medium
Shared vision � Shared responsibility � Firmwide outcomes!
GigaOM Structure 2011
Run Trials
• Showcase the utility of Cloud Based Apps– Basecamp or other Cloud Based – project
management tools
– CRM tools
– Google docs
– Highlight• Location independence
• Availability and reliability
Don’t make Clouding a Lewis & Clark expedition. We all admire them!.
GigaOM Structure 2011
Scenario
NYSEUS East
Shanghai
100 KB A
nalytics
Market Data100s of GB
US West/CA and Europe
PF Managers - Results
Firms can build global communication
networks! But, Why reinvent the wheel?
Clouds come with location independence.
GigaOM Structure 2011
Security
• Do away with login/password
• Everyone uses public/private key based access – much harder to break
• Channels were host/host or host/LAN VPN config – EC2 a node on your network
• VPN automatically brought up only when needed – PM tries to retrieve the numbers or NY
Engineers try to refresh data and so on.
Pay for what is used and for the duration it is used. Address security first.
GigaOM Structure 2011
Data and App Design
• Partition data– Public data on cloud (ticks for example)
– Reference data linking customers inhouse
– Customer specific data inhouse
– Move processes/analytics around
• Establish Cloud governance policy– Provisioning and access log
– Audit trail and review
Identify objections and threats – mitigate them at the earliest.
IT must be confident and proficient. You get one shot.
GigaOM Structure 2011
Consider Doing!
- Promote Cloud just like you would a database or a xerox/copier machine- Provisioning, accounting, auditing,
disconnecting and monitoring in Real Time- Distribute control, authority, ownership firmwide.
- Maintain a knowledge base of white papers and case studies of success as well as failures, cost benefit analysis – corporate wiki
- Knowledge/Educated communitiesIT as enablers/facilitators not control freaks and turf-guards.
Share the accolades, recognition and bonus if any. This will stop Lone Ranger
Business groups – they will seek and work with IT.
GigaOM Structure 2011
Donts!
• Be different this time
– No hype please
• Like SOA or OOA/P paradigm shifts
• Promise what you can deliver
• Stick to the facts and there is plenty
• Under sell and over deliver – manage expectation.
• I/T cannot know everything – be ready to prototype, implement PoC, get professional help
– Badger CISCO and AWS
– Never compromise on security or functional deliverables.
– Be prepared for setbacks/glitches along the way
» Prepare to overcome, don’t be overrun.
Thank you.
