Slide 1

Is the Future in the Cloud?

Frank Ono COO,CIOEnterprise Networking Solutions, Inc.1AgendaCloud primerEmergence of Cloud ServicesWhats the Problem?Business Paradigm ShiftValue DriversCalculating Return on InvestmentRisk AssessmentCloud Strategies

Worlds information is doubling every two yearsIDC iView "Extracting Value from Chaos," June 2011, sponsored by EMC. http://www.slideshare.net/Zenoss/100-best-cloud-data-stats-of-2011so-far3

1.8 trillion gigabytes will be created and replicatedIDC iView "Extracting Value from Chaos," June 2011, sponsored by EMC. 4

70% of IT budgets are typically spent onmaintaining current IT infrastructures, and only 30% are typically spent on new capabilities.IBM White Paper Capturing the Potential of the Cloud," June 2010 5

15% of data centers dont have any backup or recovery plan, 30% dont have backup sitesAFCOM survey of 360 data center managersURL: www.pcworld.idg.com.au/article/385766/data_center_double_dutyDeclare and Go6

Only 26% of respondents reported any decrease in hiring based on cloud adoption2011 North Bridge Venture Partners Future of Cloud Computing SurveyURL:www.businesswire.com/news/home/2011/20110622006602/en/future-cloud-computing-survey-reveals-drivers-cloud.7

Cloud Primer

Cloudsare tiny drops of condensing clear water vapor and/or ice crystals that settle on dust particles in the atmosphereOne of the key distinctions between a traditional datacenter and server environment and a private cloud is the abstraction of physical resources such as servers, networks and disks. These are placed into higher-level, logical groupings such as resource pools, fault domains, upgrade domains and so on. These logical groupings are mapped to physical infrastructure and help you make intelligent provisioning and management decisions.8What is Cloud?Utility computing/pay for what you useOutsourced manageability and maintenanceEasily adjusts to fluctuating and unpredictable business demandCloud PrimerPrivateServes a single organizationCan be internally managed or outsourcedServices built upon virtualized, managed infrastructureSelf service provisioning of resourcesUsage metering for cost allocationCloud PrimerPublicServes multiple tenantsComprised of one or more data centersUtility consumption modelCommoditization of servicesE-mailStorageSoftwareCPU, RAM, network bandwidthCloud PrimerHybridCombination of local and remote resourcesMay rely heavily on bandwidthStrategic alternative to pure private or pure public cloudCan be used as a Proof of Concept (POC)Emergence of Cloud ServicesInfrastructure as a ServicePlatform as a ServiceSoftware as a ServiceDisaster Recovery as a ServiceStorage as a ServiceNetwork as a ServiceCommunications as a ServiceDatabase as a ServiceMonitoring as a ServicePrinting as a Service..What is the Problem?Increasing Scope and Complexity of Business NeedsInability to Satisfy and Sustain Staffing DemandsAging WorkforceBudgetary Constraints

= Doing More with LessBusiness Paradigm ShiftOwned Assets vs. Subscribed ServicesTechnology Driven vs. Business DrivenBroad and Deep IT Skills vs. Specialized ServicesLong Deployment Cycles vs. Real Time DeliveryValue DriversPrivateStandardized service deliveryOptimized utilizationReduced cost of power, cooling and real estateImproved manageabilityReliability and fault tolerance

Public/HybridAccess to skilled professionals and services/applicationsOpex vs. CapexRapid deploymentProof of Concept (Try before you buy)IT tends to think about IT investments in terms of cost-recovery, which is a wonderful thing. But the biggest benefit of private cloud computing is not going to be lower costs.

Thomas Bittman, Gartner GroupCalculating ROIIT BudgetsSystem upgradesTechnology refreshTechnology initiativesManagement efficienciesCost benefits of scaleBusiness agilityLower riskRisk AssessmentUltimately, you can outsource responsibility but you can't outsource accountability.

Cloud Computing Benefits, risks and recommendations for information security ENISA http://www.enisa.europa.eu/activities/risk-management/files/deliverables/cloud-computing-sme-survey18Risk AssessmentSecurity/PrivacyData protection standardsAudit standardsEnd to end encryptionEncryption at restLiabilitySecurity breachesNotificationRemedies

The parties to a contract should pay particular attention to their rights and obligations related to notifications of breaches in security, data transfers, creation of derivative works, change of control, and access to data by law enforcement entities.

Because the cloud can be used to outsource critical internal infrastructure, and the interruption of that infrastructure may have wide ranging effects, the parties should carefully consider whether standard limitations on liability adequately represent allocations of liability, given the parties use of the cloud, or responsibilities for infrastructure.

Until legal precedent and regulations address security concerns specific to cloud computing, customers and cloud providers alike should look to the terms of their contract to effectively address security risks. 19Risk AssessmentPortability of dataDelivering on promises (SLA)Audit complianceService termination or failureIntegration

20Cloud Strategy TakeawaysBusiness-focused IT objectivesFind the balance between fixed and variable costsInfrastructure agilityTry before you buy21

Questions?