Cloud computing and impact on the business

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    18-Dec-2014

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De nombreuses dfinitions existent au sujet du Cloud Computing et les fournisseurs les cadrent selon une perspective technique, faisant passer le concept un mot la mode (Buzz word) garant ainsi les dcideurs, hommes d'affaires et leur laissant une ide confuse de son importance concurrentielle pour l'entreprise. Ce livre blanc interactif a pour intention d'expliquer le concept du "Cloud Computing", la dfinition du concept et les technologies principales sur lesquelles le Cloud Computing est fond. Il vous prsentera les contraintes et les facteurs de l'environnement d'aujourd'hui qui peuvent motiver l'adoption russie du Cloud Computing dans la stratgie dune entreprise.

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<ul><li> 1. Cloud Computing : Definition&amp; Impact on the Business Juvnal CHOKOGOUE M Consultant on Applied Data-Processing Methods for Decision Help-Making CO-DE-0001 [06/21/2013] </li> <li> 2. Module Overview The New Challenge of Business What this module Stands for ? Who is this module for ? Before battle begins The New Corporate Business Structure : From Hierarchical Model to Network Model Cloud Computing : A Business Strategy based on Agility Key Technologies used in Cloud Computing Differences between IaaS, PaaS and SaaS Implication of the transition to Cloud Computing What Should I remember ? Some Cloud Providers Bibliography &amp; Resources About me </li> <li> 3. The New Economic Challenge Todays businesses face rapidly changing conditions, new technology, new competitive forces and new consumer trends. As we look at the horizon, we see dramatic change standing out : Volatility is here to stay. Scaling operations up and down as conditions changes and ability to pivot quickly and address new threats or opportunities are what make companies successful in todays economy. Todays market volatility is increasing. Products have life cycles measured in months or a couple of years at most. Technology and consumer preferences are rapidly evolving. New fashions and new products and whole product categories pop up without warning, drastically altering traditional customer buying patterns. Not only is product demand hard to estimate, but so too are the costs of everything from raw materials to labor and transportation. The real-time global economy of the twenty-first century is a very different world from that of the last century. Today, responsiveness and flexibility are key words for success. But to effectively implement flexibility and responsiveness into their business, organization's strategies MUST find a way to shift sunk costs into variable costs. In that way, as operating costs rise as business activity rises, and costs will also drop as activity drops and costs wont rise at all if expected activity levels dont materialize or a new product doesnt take off. So, lets find a way to build a computing model flexible enough to support this new business environment volatility. </li> <li> 4. What this module Stands for ? This module is an interactive White Paper which intend to explain the meaning of Cloud Computing, the definition of the concept and the key technologies that cloud computing is built on. The module will show you todays organization constraints and factors that can motivate successful adoption of Cloud Computing in an organization strategy. It will present some implications of transition to Cloud Computing in the way that todays businesses are driven. At the end, the module will provide the impact of Cloud Computing in the IT work and any professional work. We expect that, by the end of the module, you will have understood at least what the Cloud Computing is, where it does fit, and what can be its implications in your organization or in your professional life. So, Keep Reading </li> <li> 5. Who is this module for ? This module has been built for every one, from professionals to students who want to have a clear idea about the concept of Cloud Computing, its implications in todays business and more importantly, its consequences in the labor. So, if you are an IT professional, this module will be very useful to you, because it presents to you core technologies of Cloud Computing and drastic changes brought by the it in your profession. If you are a decision maker, you will be thankful to this module, because it presents specifically to you business models that you can adapt to your company to face new markets threats and a set of new technologies that comprehension can help you to build a more robust strategy for your business. If you are an Information Worker or a business analyst, this module will help you to understand the strange word that Cloud Computing is, how you can take advantage of Cloud Computing to improve your daily work and most importantly it will help you to prepare yourself to the future consequences of adoption of Cloud Computing by your company. If you are a student or interested, you will benefit all the advantages listed above and will gain a good understanding of Cloud Computing. </li> <li> 6. Before battle begins information provided here is for informational purposes only and represents my current point of view as of the date of this presentation. Due to changing conditions of market, information provided here can be modify or obsolete, it should not be interpreted to be a commitment and I cannot guarantee the accuracy of any information provided after date of this presentation. Contents of websites provided here can be modify or change, or the website itself can be unavailable after the publication of this presentation. So I can not MAKES warranties, express, implied or statutory, as to the information in this presentation. Product names related here are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. Feel free to share this module with anyone you know, from your colleagues to your friends, but in this case, dont forget to mention the name of the author . You can use and change the content of this module at your own but I will not be responsible of it content in this case. This module is not for sale, If you intend to use it to your own, please, dont commercialize it ! </li> <li> 7. The New Corporate Business Structure : From Hierarchical Model to Network Model </li> <li> 8. Supply creates its own demand, one can not have overproduction. You surely remember this sentence from Jean Baptiste SAY. JB SAY said that in the eighteenth century; At that time product demand was reasonably predictable and stable; so companies had just to allocate labor and capital to optimize production and Return On Investment (ROI). In that context, ability to lower transaction costs, product cost and gain efficiencies from economies Of scale were enough to be successful. Since it was possible to make reasonably reliable predictions of customer demand and prices for labor and raw materials, companies gather themselves into huge and vertically integrated conglomerates. In that way, they were able to make large capital investments in plant and equipment to achieve economies of scale and meet demand for their products at the lowest per-unit costs, and thus earn the greatest profits. They paid for these investments and their resulting high fixed costs through increases in productivity that enabled them to produce greater and greater amounts of standard goods and services at lower and lower costs. Naturally, this leads to tendency to organize themselves as hierarchical pyramids where most people are powerless workpeople who just follow orders while the important decisions are made by a small group of powerful executives at the top of the pyramid. But that, that was Before ! </li> <li> 9. The Hierarchical Pyramid Model Decision-Maker Control Business Units Orders Information In Centrally controlled hierarchies, People at the top of corporate hierarchies are overwhelmed by the sheer volume of decisions they have to make; they are too far away from the scene of the action to really understand whats happening; and by the time decisions are made the actions are usually too little and too late Centrally controlled hierarchies move SLOWLY because only a few people know what the strategy is and everybody else waits for permission to act </li> <li> 10. But Today, businesses face rapidly changing conditions, new technology, new competitive forces and new consumer trends. Market volatility is increasing. Scaling operations up and down as conditions changes and ability to pivot quickly and address new threats or opportunities are what make companies successful in todays economy. Today Products have life cycles measured in months or a couple of years at most. Technology and consumer preferences are rapidly evolving. Not only Product demand is hard to estimate, but so too are the costs of everything from raw materials to labor and transportation. The real-time global economy of the twenty-first century is a very different world from that of the last century. Today, responsiveness and flexibility are key words for success. Companies need to be agile and they can no longer follow the traditional hierarchical model where there is such a high fixed costs and a decision-making bottleneck at the top of the organization. They need something more agile, something that can help them turn fixed costs into variable cost. Like this, as operating costs rise as business activity rises, and costs will also drop as activity drops and costs wont rise at all if expected activity levels dont materialize or a new product doesnt take off. Now instead of a small group of executives telling everybody else what to do, people should have authority to figure out for themselves what to do. People should be motivated to coordinate, cooperate, and collaborate with each other by a financial incentive system that rewards them for their common successes instead of rewarding each manager for their individual successes. The evolution of corporate organization structures like this is driven by the convergence of economic necessities with technological capabilities :That is where Cloud Computing comes in to play ! </li> <li> 11. The Network Model : A Model of Responsive Organization Business Unit 2 Coordination In a responsive organization, Enterprise Coordinator says WHAT. Business Units are free to choose HOW Business Unit 1 Business Unit 4 Business Unit 3 Business Unit 5 New Unit 2 Coordination requires everybody to know what the strategy is and have authority to act. Business units become new coordinators to support expansion into new market New Unit 1 </li> <li> 12. Cloud Computing : A Business Strategy based on Agility </li> <li> 13. In volatile time like today, Business models with high fixed costs are much riskier than they used to be. Reactiveness generate efficiency; a better strategy is to shift fixed costs into variable costs. A responsive model gives flexibility to adapt to changes as quickly as they happen. A lot of companies have high fixed operating costs because of IT investments in computers, business application systems, data centers and staff needed to run the technology and systems. Or investment in IT cannot be easily reconfigured to adapt to changes. Ironically, these IT systems are a critical factor in any companys ability to be agile and responsive. Recent studies shows that about 70 to 80 % of company IT budgets goes to the operation and maintenance of existing systems and data centers. So in many organizations, there isnt much money available to design and develop new systems. Given this situation, consider this axis of reflections: What if companies could outsource their IT Infrastructure with all ongoing costs to a highly specialized provider ? If companies cannot have to worry anymore about all of the financial and operational overhead associated with building and operating their own data centers, would they then be able to focus more on what they do as a business? Companies have today the big opportunity to reduce IT Costs by reducing unused IT Infrastructure capacity through what is called CLOUD COMPUTING. In effect, some companies (providers) are now offering their computing power and software applications on a Pay-as-you-go basis. With this opportunity, companies can now power their business operations with a flexible and Scalable Computing Platform ! </li> <li> 14. What is Cloud Computing Anyway !? There is numerous definitions about Cloud Computing and Vendors are constantly framing cloud from an IT perspective, and fighting over confusing cloud definitions, leaving business leaders unclear of the corporate or competitive importance. But here are some definitions : - IDC (International Data Corporation) : Consumers and business products, services and solutions delivered and consumed in real time over the internet. - IBM : Cloud computing is a pay-per-use consumption and delivery model that enables real-time delivery of configurable computing resources (for example, networks, servers, storage, applications, services). Typically, these are highly scalable resources delivered over the Internet to multiple companies, which pay only for what they use. - Microsoft : An approach to computing thats about internet scale and connecting to a variety of devices and endpoints - Jeff KAPLAN : . . . a broad array of web-based services aimed at allowing users to obtain a wide range of functional capabilities on a pay-as-you-go basis that previously required tremendous hardware/software investments and professional skills to acquire. In a Cloud Computing architecture, one or more companies provide online Computing resources (Services) to another companies that the latter pay on a pay-as-you-go basis. </li> <li>...</li></ul>