The Cloud: Today’s Realities and What It Means to You Jeff Kaplan Managing Director THINKstrategies, Inc

The Cloud: Today’s Realities and What It Means to You

Jeff KaplanManaging Director

THINKstrategies, Inc.

22

Agenda

Today’s Cloud Realities

Redefining the Role of IT

Fulfilling Your New Responsibilities

Becoming Your Own Cloud Service Provider

How to Measure Success

A Look Forward

©2012, THINKstrategies, Inc. www.thinkstrategies.com

33

Why We Are Here…Technology Has Too Often Inhibited Success


44

Deployment Challenges 31.1% SW projects cancelled before completed. 52.7% of projects cost nearly 190% of original estimates.

Operational Costs Maintenance & management costs >10x original license fee. Escalating hardware & staff support costs. Over provisioning/under-utilization of SW licenses.

Economic/Budgetary Pressures Need to reduce IT costs, increase business benefits. Need to increase utilization to gain greater ROI.

The Shortcomings of Legacy, On-Premise Apps


55

Today’s Perfect Storm

TheEconomy

EnablingTechnologies

ShiftingCustomer Attitudes


66

Macro-Market Forces Driving Cloud Demand

Economic Pressures

Key Challenges

Escalating Customer Expectations

ChangingWorkforceDynamics

Globalization& Growing

Competition


77

BYOD & Mobility ChangingIT Acquisition Process


88

Changing Customer Needs/Expectations

Old,

Fixed, Capital Investment

Complexity, Customization

Centralized, On-Premise

Top-Down Procurement

High TCO, Low ROI

Internal Support

Outsourcing

New,

Flexible, Operating Expense

Simplicity, Utilization

Mobile, On-Demand

Bottom-Up Adoption

Rapid Time-to-Value

3rd Party Services

Out-Tasking


99

Market Shift to ‘Out-Tasking’ Services

Cloud ComputingSaaSManaged Services


1010

How SaaS and ASP/Hosting Differ

Customer Application

ASP/Hosting Company

Same legacy applications Upfront perpetual license Still inflexible architecture Limited accessibility Single-instance, inefficient

Little perceived economic value.


1111

Why ASPs/Simple Hosting Fails

Multiple Customers

ASP/Hosting Company

Updates/Upgrades

Too Complex

Not Scalable

Limited Value-Add


1212

SaaS = The Advantage of Multi-Tenancy

SaaS Vendor


1313

SaaS & Social Networks Redefining Enterprise Apps


1414

Re-Thinking BI in the Cloud

Source: Gartner EXP (January 2011)


1515

New BI/Analytics ChallengesOld Challenge:

Collecting & Analyzing Internal Data Continuously

Customers Partners

Suppliers Salespeople

Operations Support

New Challenge:Sharing Information &

Insight Globally


1616

Traditional Barriers to BI/Analytics Success

SBU1 SBU

2SBU

3

SBU4


1717

Converting Data Into Actionable Intelligence

SBU1 SBU

2SBU

3

SBU4


1818

Common SaaS Adoption Patterns:Front- to Back- to Inter-Office Apps

BUSINESS APPLICATIONS

ERPFinance

…

Front Office Inter-EnterpriseBack Office

CollaborationCRM/SFA

…

ProcurementSupply-Chain

…


1919

SaaS Expands from Business Appsto Industry Solutions



…


…

ERPFinance

…


Financial Services…

Government…

Manufacturing…

Vertical Market/Industry-Specific Solutions


2020

SaaS Expands from Business Apps to IT Management



…


…

ERPFinance

…


SecuritySystems Mgmt

…

Network MgmtRemote Access

…

Data ProtectionStorage

…IT Management


2121

Public Private Hybrid CommunityDeployment

Models

ServiceModels

Software as a Service (SaaS)

Platform as a Service (PaaS)

Infrastructure as a Service (IaaS)

EssentialCharacteristics

On-Demand Self Service

Broad Network Access

Resource Pooling

Rapid ElasticityMeasured Service

SaaS Success Breeding More Cloud Services


2222

PaaS: Changing App Development Process

App Engine


2323

Amazon Transforming Acquisition & Use of Computing Power

Amazon Web Services Offering Free Usage Tier, New AWS customers can run free EC2 instance for a year.

UBS Securities predicts AWS revenues =$750M in 2011, $2.5 billion in 2014


2424

Maturing Corporate Adoption Programs

Ad-hoc, Business End-User/SBU Adoption;

IT Avoided.

Planned Enterprise-Wide, Business-Driven Adoption;

IT Involved.


2525

Evolution Of Customer ConcernsC

om

ple

xit

y

Time

Reliability

Security/Privacy

Interoperability/Integration

Governance/Compliance/Control

Innovation/Competitive Advantage

Support


2626

Everyone’s Reality:A Hybrid World

Balancing,

Multiple Development Platforms

Various Delivery Architectures

Growing Data Integration Options

New Deployment Alternatives


2727

CustomerExperience

The Added Dimension of SaaS/Cloud Computing

Communications Collaboration

Community


2828

The New Level of Valuein the SaaS/Cloud Market

Dynamic toolkit clearinghouse

Continuous updates, new ideas

Real-time, aggregated data

Meaningful benchmark studies

Practical best practices forums

User “Club” w/special privileges.


2929

New Deployment Models:Data Residency Option (DRO)


3030

Recent Acquisitions,New Cloud Battlegrounds


3131

Changing Channels


3232

Redefining the Role of IT

Shifting from SW/System Managementto Service & Vendor Management


3333

Service Transparency Key


3434

Picking the Right Path to Success

Limited

Internal IT

Internal Private Cloud

Hybrid Cloud Services

Public Cloud Services

Business Benefits

Level of

Con

trol

High

High

Low


3535

Cloud Deployment Alternatives

Vertical Markets

Service Delivery Model

Tim

e to

Valu

eC

ost

SMBs EnterprisesCustom

Standard

Complex

SimplePublic Private

Community

Hybrid


3636

Succeeding in the Cloud

Encourage input & ideas.

Evaluate various alternatives.

Engage Executives, SBUs & End-Users.

Employ incrementally.

Embrace the Cloud.

The Five E’s of Cloud Mgmt.


3737

Service Management in the Cloud Automate

Monitor

Measure

Iterate

Communicate

Repeat

Continuously,


3838

Attaining Ultimate Cloud ValueV

alu

e

Time

Reduced Costs

Accelerated Deployment

Greater Functionality

Higher Productivity

Customization/Innovation

Gaining CompetitiveAdvantage

Quicker Time-to-Value


3939

Summary of Cloud Market Evolution

v1.0 v2.0

• Focus on individual user

• Standalone point apps

• Horizontal applications

• Emphasis on ease of use/price/TCO

• One size fits all, limited customization capabilities

• Limited interoperability

• Cloud only, single direction

• Proliferation of providers

• Emphasis on solution

• Best-of-Breed Win

• Focus on the enterprise

• Scalable, secure platforms

• Vertical/industry solutions

• Emphasis on added functionality/ROI

• Multiple configurations, greater flexibility/versatility

• Greater integration capabilities

• Bi-direction location independence

• Industry shake-out & consolidation

• Emphasis on service management

• Strategic Sources Win


4040

Summary & Recommendations

The cloud is for real & growing fast. Ad-hoc, end-user/SBU adoption everywhere.

It’s time to act. Initiate trials, measure success, expand.

Redefine your role & relationships. Encourage greater input and sharing

Become a Cloud service provider. Evaluate, recommend, aggregate and manage.

Create new forms of value.Leverage new service management capabilities & resources..


4141

Good Luck!

For more information, [email protected]


Documents

The Cloud: Today’s Realities and What It Means to You Jeff Kaplan Managing Director THINKstrategies, Inc