THE BUSINESS CASE BEHIND CLOUD COMPUTING
EMA - Fresh TechnologyJames ValentineApril 27th 2010
Commercial in confidence | Copyright© 2010 Fronde Systems Group Limited
2
Agenda
What exactly is cloud computing?The “Cloud Continuum”The Risks and Rewards of the cloudDetermining what parts of your business can operate in the cloud
About Fronde
NZ based IT services company IT Systems integrator and mobile
products company Focus on Cloud Computing:
Google Enterprise PartnerMicrosoft Gold PartnerSalesforce.com PartnerAnd more…
Commercial in confidence | Copyright © 2009 Fronde Systems Group Limited
3
Commercial in confidence | Copyright© 2009 Fronde Systems Group Limited
4
Cloud Computing Definition #1
Cloud computing is a style of computing in which dynamically scalable and often virtualized resources are provided as a service over the Internet.
Users need not have knowledge of, expertise in, or control over the technology infrastructure "in the cloud" that supports them.
Wikipedia
Commercial in confidence | Copyright© 2009 Fronde Systems Group Limited
5
Cloud Computing Definition #2
1. The service is accessible via a web browser or web services API.
2. Zero capital expenditure is required to get started.
3. You pay only for what you use as you use it.
Cloud Application Architectures, O’Reilly – George Reese
Commercial in confidence | Copyright© 2009 Fronde Systems Group Limited
6
Cloud ComputingA simple analogy
Commercial in confidence | Copyright© 2009 Fronde Systems Group Limited
7
What is all the fuss about?Cloud Computing
Commercial in confidence | Copyright© 2010 Fronde Systems Group Limited
8
“The Cloud Continuum”
THE CLOUD CONTINUUM
SaaS PaaS IaaS Traditional
Google App EngineGoogle Apps
SalesForce.com / Force.com
Amazon EC2
Virtualisation“Tin”
Microsoft Azure
Xero
Microsoft BPOS
Hosted Email
Data-centre Hosting
Commercial in confidence | Copyright© 2010 Fronde Systems Group Limited
9
Software-as-a-Service
Typically Line of Business applications (e.g. CRM, mail, collaboration, HR, accounting)
Usually a $ per user per month charging model.
Centralized feature updating – no patches and upgrades / features available to all users immediately.
Commercial in confidence | Copyright© 2010 Fronde Systems Group Limited
10
Software-as-a-Service cont.
Gives small businesses / start-ups access to enterprise grade software.
Either limited customisation or customisation is completely proprietary to the solution.
A number of providers offer both SaaS and installed versions of their software
Commercial in confidence | Copyright © 2009 Fronde Systems Group Limited
11
Using Software-as-a-ServiceCase Study: Fronde!
Commercial in confidence | Copyright© 2010 Fronde Systems Group Limited
12
Comparing Costs of On-Premise and SaaSOn PremiseUp front Licence FeeCustomisation & ConfigurationHardware purchase and InstallationHosting costsOff-site BackupsHigh Availability / ReplicationUpgradesSupport and maintenance
SaaSMonthly “Subscription”Customisation & ConfigurationEnd user supportBandwidth Costs
Commercial in confidence | Copyright© 2009 Fronde Systems Group Limited
13
Business Value – not just Cost
Make IT efforts add value to your organisation
Allow your organisation to act at Enterprise scale
Allow your organisation to expand seamlessly
Commercial in confidence | Copyright© 2009 Fronde Systems Group Limited
14
Business Value – not just Cost
Reduce security and compliance costs
No upgrades – ever. Improve service availability and
reliability Transition from CapEx to OpEx
The case against cloud computing?
Risk: Legal, regulatory, and business
Connectivity and bandwidth Security and privacy Difficulty of managing cloud
applications
Commercial in confidence | Copyright © 2009 Fronde Systems Group Limited
15
The case against cloud computing?
Current enterprise apps can't be migrated conveniently
Lack of Service Level Agreement Lack of cost advantage for cloud
computing
Commercial in confidence | Copyright © 2009 Fronde Systems Group Limited
16
Considerations for moving an application to the cloud?
Does it add value or innovation to your business?
Does it need to be easily available to a geographically dispersed or highly mobile workforce?
Are you facing a software upgrade or hardware refresh?
Commercial in confidence | Copyright © 2009 Fronde Systems Group Limited
17
Considerations for moving an application to the cloud?
Is it something that will start small and grow? Start large and shrink?
Does it have fluctuations in demand?
Are you experiencing availability or reliability issues that are affecting business productivity?
Commercial in confidence | Copyright © 2009 Fronde Systems Group Limited
18
Future Trends
Emergence of local “private cloud” and “government cloud” offerings
“Cloud Enabled” versions of existing software to complement on premise offerings
Platform as a Service frameworks and offerings to mature.
Commercial in confidence | Copyright © 2009 Fronde Systems Group Limited
19
Future Trends cont.
Second cable into NZ to further improve latency and performance of cloud applications
Device / access independence
Commercial in confidence | Copyright © 2009 Fronde Systems Group Limited
20
Call to Action
Identify IT “complexity knots” in your organisation and see if cloud computing could eliminate them.
Look at the time your IT resources are spending on activities that are non-“value add”.
Commercial in confidence | Copyright © 2009 Fronde Systems Group Limited
21
Questions?
Commercial in confidence | Copyright © 2009 Fronde Systems Group Limited
22