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Cloud Computing Impact on Business

Cloud Computing: Impact on business

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Page 1: Cloud Computing: Impact on business

Cloud Computing

Impact on Business

Page 2: Cloud Computing: Impact on business

Cloud Computing - Baseline

What? Pooling of Elastic Computing infrastructure with the intent of achieving

economies of scale and optimum utilization via on-demand provisioning.

Why? Underutilization, redundancy, opportunity cost, overheads,

heterogeneity, spiky and distributed workloads

How? • Infrastructure-as-a-Service (Compute, Storage, Database, Network, Bandwidth)

• Platform-as-a-Service (OS, Services, Messaging, Events to build custom apps)

• Software-as-a-Service (Multi-tenant Software Application, Configurable)

• Public Cloud (Amazon, Rackspace, Telcos )

• Private Cloud

• Community, Industry and Hybrid Clouds

Page 3: Cloud Computing: Impact on business

Economic Value

Cost Model

• CAPEX v OPEX

• Chargebacks

• Depreciation

• Reallocate Budget

• Ramp Costs with usage

• Sunk cost of existing

infrastructure investments

Agility

• No IT logjam

• Quick Project Ramp

• Use-and-Dispose

• New Businesses Models

• Reallocate Resources

• Capacity to handle varying

workloads

Page 4: Cloud Computing: Impact on business

New Realities

• Standard Boilerplate Agreements unlike highly negotiated ones in the past

• FUD created by entrenched vendors with vested interests about losing control and cloud outage

• New set of Cloud Integrators to evaluate. • New set of tools to manage clouds • IT Audit process need to accommodate Cloud

Page 5: Cloud Computing: Impact on business

After saying all those nice things …

• It is definitely not cheap over long term

• Factor Redundancy

• Early Stage vendors might go away

• Lack of Security standardization

• Complex Regulatory compliance

• Force Majeure

• Data Replication/Retention

• M&A in Cloud Vendors