The cloud computing gold rush - distinguish black sheep from business chances

The cloud computing gold rush - © 2012 Skilltower Institute - www.skilltower.com 1

The Cloud Computing Gold RushThe Cloud Computing Gold Rush

How to distinguishHow to distinguish black sheep fromblack sheep from

real business chancesreal business chances

Joerg OsarekJoerg Osarek Andreas WolskeAndreas Wolske

the uptime* companymanagedhosting.de


Agenda

Introduction: Joerg Osarek and Andreas Wolske

cloud computing: Possibillities and examples for SME

strategic comparison:Development, deployment and management of IT systems

Black sheep and sustainable business chances

Considerations about successful cloud computingfor your enterprise


Introduction: Joerg Osarek

The world's firstThe world's firstIT AvantgardeIT Avantgarde

NetworkNetworkGame Game

changing changing technologies technologies

IT &BusinessStrategy

ITManage-

ment

IT Archi-tecture

Cloud Cloud ComputingComputing

www.its-people.deCo-Founder & Partner

www.skilltower.comFounder & CEO

http://www.its-people.de/

http://www.skilltower.com/


Introduction: Andreas Wolske

the uptime* companymanagedhosting.de

Co-Founder & CEO der managedhosting.de GmbH

VMware vCloud Powered Powered Partner

Datacenter- und IT- Architectures

"Cloud Computing" since 2007


Let's dive into cloud computing

What is cloud computing?

Possibilities of cloud computing for SMEs (small and medium enterprises)

Some cloud computing business examples


What is cloud computing?

... it isn't new: IT- outsourcing, ASP, dynamic data center

"Cloud computing offers the use an abstract IT infrastructure (e.g. computing power, storage, network capacity or ready to use software) adapted dynamically to your needs and available over a network."

IaaS (Infrastructure as a Service)

PaaS (Platform as a Service)

SaaS (Software as a Service)

XaaS (Everything as a Service e.g. HuaaS)

Public-, private-, hybrid- & community cloudBildquelle: WikiPedia


Cloud Computing: Only the next hype?

Bild: http://geekandpoke.typepad.com/.a/6a00d8341d3df553ef0128764d3aef970c-800wiAutor: [email protected], Geek & Poke , Lizenz: http://creativecommons.org/licenses/by-nd/2.0/de/

Quelle: http://geekandpoke.typepad.com/geekandpoke/2009/12/from-hype-to-hype.html

Do you remember

the SOA-hype?


Possibilities of cloud computing for SMEs

classic IT

Fotos: © #359460 NatashaOwen, #945983 DanielSainthorant, #7058491 LeoDeep – Fotolia.com ; Anpassungen © Jörg Osarek



classic IT IT with cloud computing




classic ITclassic IT

+-fix costs+-fix costs

-often slow and unpredictable-often slow and unpredictable

-growing complexity -growing complexity (Function, security, legal)(Function, security, legal)

-maintenance complex or -maintenance complex or halfheartedhalfhearted

-often IT is not core business-often IT is not core business

IT with cloud computingIT with cloud computing

+++speed, virtualization+++speed, virtualization

++elasticity, on demand++elasticity, on demand

+fast development and mgmt+fast development and mgmt

+security, -risk+security, -risk

+business cooperations+business cooperations

+- variable costs+- variable costs

+- complexity reduction (partly)+- complexity reduction (partly)




classic ITclassic IT

Getting slower, more Getting slower, more expensive, SME is left behindexpensive, SME is left behind

Slows down the innovation of Slows down the innovation of the SME's core business the SME's core business modelmodel

IT with cloud computingIT with cloud computing

lets SMEs innovate simplified, lets SMEs innovate simplified, fast and effectively to fast and effectively to approach new business approach new business niches with global outreach niches with global outreach and reduced risksand reduced risks

... if done right!... if done right!



Cloud computing business examples

Business process

Application

Middleware

Operating System

Network

Data center

Server & Storage



business performance

IT- resources

No. of users, server, storage,demanded bandwidth

salaries, management costLeasing or write-offs

loss of productivity due to missing IT resources

shrinking margin due toover capacities

Hig

h in

vest

men

t



business performance

IT- resources


salaries, management costLeasing or write-offs

setu

p c

ost

s

high quality by dynamic resource allocation

demand oriented cost structure



commision based business performance

IT resources


flexible cost structure basedon demanded resourcesse

tup

cost

s

high quality by dynamic resource allocation

demand oriented cost structure

fast availibility & stand by resources


IT strategy comparison

Development, deployment and management of IT systems

wrongwrong

correctcorrect

Today (cloud)Today (cloud)



yesterday's extreme:yesterday's extreme:

handcrafted IT:handcrafted IT:

The CEO's son somehow The CEO's son somehow put this stuff together.put this stuff together.

If the CEO's son is absent, If the CEO's son is absent, chaos arises.chaos arises.

In the basement connected to In the basement connected to short-circuit socketsshort-circuit sockets

"What's the heck? it works!""What's the heck? it works!"

only oral requirements, only oral requirements, no documentationno documentation

development on production development on production systemsystem

security by obscuritysecurity by obscurityENIAC ©: Public Domain



yesterday's extreme:yesterday's extreme:

perfect example IT with risk perfect example IT with risk of fritteringof frittering

If you did this the last 30 If you did this the last 30 years, you are broke or you years, you are broke or you have a monopoly.have a monopoly.

always bought top software always bought top software suitessuites

customized by hundreds of customized by hundreds of consultantsconsultants

redundant hardwareredundant hardware

always vacation replacementsalways vacation replacements

100% documentation100% documentation© Jörg Osarek



strike balance yesterdaystrike balance yesterday fast and agile IT fast and agile IT implementation reacting to implementation reacting to market demandsmarket demands

pragmatic balance for pragmatic balance for processes, documentation, processes, documentation, separated environments separated environments (develop, test, production)(develop, test, production)

sufficient redundancy in sufficient redundancy in technology and stafftechnology and staff

© Jörg Osarek



Leave your fingers off.Leave your fingers off.technically and legallytechnically and legallycompletely insecure!completely insecure!

today‘s extreme in the cloud: 2 false advisestoday‘s extreme in the cloud: 2 false advises

You are leftYou are leftbehindbehind



Leave your fingers off.Leave your fingers off.technically and legallytechnically and legallycompletely insecure!completely insecure!

today‘s extreme in the cloud: 2 false advisestoday‘s extreme in the cloud: 2 false advises

You are leftYou are leftbehindbehind

Welcome to the cloud.Welcome to the cloud.You may now switch offYou may now switch off

your brain.your brain.

ChaosChaosemergesemerges



strike balance todaystrike balance today same as yesterday: same as yesterday:

fast and agile IT implementation reacting to fast and agile IT implementation reacting to market demandsmarket demands

pragmatic balance for processes, pragmatic balance for processes, documentation, separated environments documentation, separated environments (develop, test, production)(develop, test, production)

sufficient redundancy in technology and staffsufficient redundancy in technology and staff

NEW!: professionalization NEW!: professionalization and specialization required and specialization required due to increased IT due to increased IT complexity! complexity! (in house or outsourced)(in house or outsourced)

competitivecompetitiveadvantageadvantage


Black sheep and real business chances

What black sheep whisper in your ear

How to recognize sustainable chances for the development of your business


SuperDuperSuperDuperCloudCloud

Your businessYour businessyour futureyour future

Black sheep and real business chances

For the black sheep you are only one of For the black sheep you are only one of many customers. For you it might be many customers. For you it might be your life's work!your life's work!

Careful if somebody promises a rose Careful if somebody promises a rose garden.garden.

Cloud computing must follow your Cloud computing must follow your business, not your business the cloud.business, not your business the cloud.


Black sheep

Access control: where is my data located? Can I acess it anytime? Data loss?

Compliance:insufficient multi tenancy, violated governance rules

Service providers:broke provider, unknown subcontractors

(in Germany) the CEO is held responsible for following all IT policies – also when using the cloud.


How to recognize real business chances

Significant potential for cost saving by using IT resources dynamically

allows real agility and creation of value for your IT

meaningful integration of IaaS, PaaS and SaaS

hybrid models with "guarantee of mobility"

Bottom Line: Cloud- Computing is meaningful if it allows high business agility, a infrastructure that is stable and available anytime, combined with reduced costs.


Considerations about a successful cloud

Considerations about successful cloud computingfor your enterprise

Navigation to your goal...

Legal aspects, server location and more

symmetrical business partnering

four-leaf clover for change projects: business, people, technology, corporate governance



"Beware of salesmen that have answers to all of your problems

without having asked you a single question!"

Chuck Ian Gordon



If somebody wants to help you getting to your goal

he must know your position (your situation).

"One size fits all" will fail!



Vendors and service providers

Salesforce (SaaS)

Amazon S3 , EC2 and AWS (Combination of IaaS and PaaS)

Microsoft Azure (PaaS)

VMware vCloud Services

Other providers (GoGrid, Rackspace etc.)

What is the advantage for your IT?

Where in your company do you profit most?


Legal aspects (Germany)

provider dependency

Microsoft Azure and Amazon offer few "ways back"

VMware vCloud Services as neutral eco system

guarantee of service relocation to another vendor

physical sovereignty for your data: Do you have data access in a reusable format anytime?

data protection and availability

server location and court of jurisdiction of the provider

details of contract with the provider and his subcontractors


symmetrical business partnering

Arm wrestling withArm wrestling withKing Kong isn't wise!King Kong isn't wise!

Exception: Exception: Convenience products, where Convenience products, where provider change is easy.provider change is easy.

Partnering rule of thumb:Partnering rule of thumb:small with small,small with small,medium with medium,medium with medium,large with largelarge with large

Quelle: Quelle: http://commons.wikimedia.org/wiki/File:Kingkongedo38.jpghttp://commons.wikimedia.org/wiki/File:Kingkongedo38.jpg Public Domain Public Domain

http://commons.wikimedia.org/wiki/File:Kingkongedo38.jpg


four-leaf clover for change projects

the four (Cloud-) success factorsthe four (Cloud-) success factors

Technological aspectsTechnological aspects■ e.g. Data security, e.g. Data security,

■ availability, availability,

■ Server location (access from US authorities)Server location (access from US authorities)German: Datenschutz in der Euro Cloud: http://www.heise.de/artikel-archiv/ct/2011/16/49_kiosk und http://www.heise.de/newsticker/meldung/Auch-Google-uebermittelt-europaeische-Daten-an-US-Behoerden-1319347.html )

People aspectsPeople aspects■ resistance in IT department and from CIO in resistance in IT department and from CIO in

medium enterprisesmedium enterprises

■ You must win employees for the new solutionsYou must win employees for the new solutions

Business-Case Business-Case ■ for the SMEfor the SME

■ for its customersfor its customers

Legal aspectsLegal aspects■ liability managementliability management

■ contract managementcontract management

■ compliancecompliance

■ ......

© Kurhan - Fotolia.com 6659463 © Marc_Dietrich - fotolia.com 2446638

© Jörg Osarek


four-leaf clover for change projects

the four (Cloud-) success factorsthe four (Cloud-) success factors

Technological aspectsTechnological aspects■ e.g. Data security, e.g. Data security,

■ availability, availability,

■ Server location (access from US authorities)Server location (access from US authorities)German: Datenschutz in der Euro Cloud: http://www.heise.de/artikel-archiv/ct/2011/16/49_kiosk und http://www.heise.de/newsticker/meldung/Auch-Google-uebermittelt-europaeische-Daten-an-US-Behoerden-1319347.html )

People aspectsPeople aspects■ resistance in IT department and from CIO in resistance in IT department and from CIO in

medium enterprisesmedium enterprises

■ You must win employees for the new solutionsYou must win employees for the new solutions

Business-Case Business-Case ■ for the SMEfor the SME

■ for it's customersfor it's customers

Legal aspectsLegal aspects■ liability managementliability management

■ contract managementcontract management

■ compliancecompliance

■ ......

© Kurhan - Fotolia.com 6659463 © Marc_Dietrich - fotolia.com 2446638

© Jörg Osarek

Compliance and Corporate Governance incl. ISG (Information Security Governance)

Important:Balance between security and freedom.

Too many restrictions destroy motivation and creativity* of employees leading to opposition or sabotage.

(*the most powerful energy source an enterprise has)


SummaryPossibilities of cloud computing

Great added value: speed, flexibility, costs following the business performance.

IT strategy yesterday and today

Old IT virtues remain. Additionally important (complexity): Professionalization and specialization (external or internal)

Black sheep

are discovered by "One size fits all"-offers and by huge amount of fine print in contracts.Real business chances follow your business needs.

Cloud success factors

symmetry of power + clover-leaf (people, business, legal, technology)

balancebalanceFind yourFind your

Your business,Your business,your futureyour future


Contact

Skilltower Institute

Joerg OsarekFounder and CEO

Triftstr. 30D-61350 Bad HomburgGermany

mailto:[email protected].: +49(0)151-23 0 24 333

www.skilltower.com

managedhosting.de GmbH

Andreas WolskeGeschäftsführer

Friedrichstraße 191D-10117 BerlinGermany mailto:[email protected] Tel.: +49 30 202364 910

www.managedhosting.de

mailto:[email protected]

http://www.skilltower.com/

mailto:[email protected]

http://www.managedhosting.de/

Technology

The cloud computing gold rush - distinguish black sheep from business chances