cloud billing: enabling consumers for pay for what they use

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CLOUD BILLING: ENABLING CONSUMERS FOR PAY FOR WHAT THEY USE

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Telecom Clouds cannot compete directly with ISP Clouds. They must build a new market space by serving customers

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Page 1: Cloud Billing: Enabling consumers for pay for what they use

CLOUD BILLING:ENABLING CONSUMERS FOR PAY FOR WHAT THEY USE

Page 2: Cloud Billing: Enabling consumers for pay for what they use
Page 3: Cloud Billing: Enabling consumers for pay for what they use

The Cloud Market Scenario is Complicated

+ local providers… too many competitors?3

Page 4: Cloud Billing: Enabling consumers for pay for what they use

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Bad Signs: Gartner Hype Cycles2008

2009

2010

2011

Page 5: Cloud Billing: Enabling consumers for pay for what they use

Bad Signs: High Impact Failures

• Lightnings

• Power Outages

• Connectivity Issues

• Data Losses

• Unauthorized Accesses

• Tricky SLAs

• …

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The Scream, Edvard Munch (National Gallery, Oslo)

Page 6: Cloud Billing: Enabling consumers for pay for what they use

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Good Signs: Cloud Market Forecasts

Billion $ Spending Predicted for Year

CISCO 43 2013

AMI PARTNERS 100 2014

IDC 72,8 2015

IBM 88,5 2015

HIS 100 2015

MarketsAndMarkets 121,1 2015

GARTNER 176,8 2015

BAIN 150 2020

FORRESTER 240 2020

Page 7: Cloud Billing: Enabling consumers for pay for what they use

Good Signs: CIO Troubles are Still There

• 75% - 80% of IT budget is needed to maintain legacy. Only 20% - 25% for new projects.

• The average workload is 15% of deployed computing capacity.

• The average timeframe for regular infrastructure deployment is 2-3 months.

Dilbert Calendar App Screenshot by Metranome Inc.Dilbert by Scott Adams

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Page 8: Cloud Billing: Enabling consumers for pay for what they use

Good Signs: Who Is Driving Cloud Adoption?

Business     Developers

IT  Operations

Lo

oki

ng

fo

r…

Early Adopters

Fast and CheapDeployments

MaturityService Level

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Page 9: Cloud Billing: Enabling consumers for pay for what they use

For telcos that have long been looking to fuse communications technology with IT services, cloud computing provides a model that plays to a number of their core strengths, in particular through the utilization of communications networks as a delivery mechanism. As demonstrated by Apple and Google's dominance over the consumer applications and services market, the ability to provide a "one-stop shop" for an enterprise's entire range of IT and communications needs will be fundamental in attracting enterprises to a service.OVUM “Enabling Telco Cloud Services” (OT00056-001)

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Page 10: Cloud Billing: Enabling consumers for pay for what they use

IaaSNetworkStorage

Computing

PaaS

SaaS

ExternalCustomers

InternalServices

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Cloud Stack and Customers

Page 11: Cloud Billing: Enabling consumers for pay for what they use

Adapt to Customer Needs

Blackbox Product

Enterprise SMB Individuals

Internal IT UsageInternal VASDeployment

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Not Only One Size Fits All

Page 12: Cloud Billing: Enabling consumers for pay for what they use

PWC

Navigating the Cloud12

Customer Satisfaction

Page 13: Cloud Billing: Enabling consumers for pay for what they use

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Copyright © 2011 Cloud Security Alliance

CoBIT 4.1 ITIL / ISO 20000 ISO 27001 US NIST 800-53

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We Know What We Have To Do

Page 14: Cloud Billing: Enabling consumers for pay for what they use

Quality in a product or service is not what the supplier puts in. It is what the customer gets out and is willing to pay for. A product is not quality because it is hard to make and costs a lot of money, as manufacturers typically believe. This is incompetence. Customers pay only for what is of use to them and gives them value. Nothing else constitutes quality.

Peter Drucker, “Innovation and Entrepreneurship”

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Page 15: Cloud Billing: Enabling consumers for pay for what they use

The Service Path to Cloud

STEPS INTO CLOUD1. Define Cloud Strategy and Identify your Starting Point

1. ROI analysis.2. Define security & compliance requirements3. Resources: Be sure you have the best professionals

2. Define the plan1. Sizing: Just a pair of web apps or the whole IT dept.?2. Management tools.3. Failover, High Availability and Load Balance tools.4. Define Phases

3. Set up Service Management and Quality Assurance

4. Test

5. Prepare the handling to migrated site

Virtualization ConsolidationResourceManagement

PrivateCloud

PublicCloud

RISK MANAGEMENT1. Verify process and applications independence.

2. Integrations are accurately defined.

3. Security levels are properly identified.

4. Enterprise architecture is healthy.

5. Dependence on communications.

6. Cost.

7. Application migrations

“Cloud Computing is not a technologythat can just be turned on overnight”

Peter Tseronis, deputy associate CIO of the Energy Department and

chairman of the US Federal Cloud Computing Advisory Council

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Page 16: Cloud Billing: Enabling consumers for pay for what they use

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Cloud Billing Alternatives

Per Resource Consumed

(Cost Center) Processor Memory Virtual Machine Bandwidth Storage Vlans Virtual Datacenters …

Resource Billing

Unadaptable

simple complex

Expensive for customers

Difficult to understand

Unprofitable

flat rates

discounts

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Cloud Billing Alternatives

Per Service

(Profit Center) Availability Rate Transactions Processed Revenue share Tech Support Class Security Level Customer Care Tickets QoS Services: Integration, Backup & Restore, Optimization… Services-aaS: CRM-aaS, Billing-aaS, Tech Support-aaS…

DIFFICULT TO IMPLEMENT

EASY TO UNDERSTAND

The Creation of AdamM. Buonarotti, Sixtine Chapel

Page 18: Cloud Billing: Enabling consumers for pay for what they use

The Cloud Market Scenario is Complicated

+ local providers… too many competitors?18

More individuals are born than can possibly survive. The slightest advantage in one

being over those with which it comes into competition, or better adaptation in however slight a degree to the surrounding physical

conditions, will turn the balance.

Charles R. DarwinThe Origin of Species, c. 14

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Contact: [email protected]

Page 20: Cloud Billing: Enabling consumers for pay for what they use