the cloud: today’s realities and what it means to you jeff kaplan managing director...
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The Cloud: Today’s Realities and What It Means to You
Jeff KaplanManaging Director
THINKstrategies, Inc.
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Agenda
Today’s Cloud Realities
Redefining the Role of IT
Fulfilling Your New Responsibilities
Becoming Your Own Cloud Service Provider
How to Measure Success
A Look Forward
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Why We Are Here…Technology Has Too Often Inhibited Success
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Deployment Challenges 31.1% SW projects cancelled before completed. 52.7% of projects cost nearly 190% of original estimates.
Operational Costs Maintenance & management costs >10x original license fee. Escalating hardware & staff support costs. Over provisioning/under-utilization of SW licenses.
Economic/Budgetary Pressures Need to reduce IT costs, increase business benefits. Need to increase utilization to gain greater ROI.
The Shortcomings of Legacy, On-Premise Apps
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Today’s Perfect Storm
TheEconomy
EnablingTechnologies
ShiftingCustomer Attitudes
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Macro-Market Forces Driving Cloud Demand
Economic Pressures
Key Challenges
Escalating Customer Expectations
ChangingWorkforceDynamics
Globalization& Growing
Competition
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BYOD & Mobility ChangingIT Acquisition Process
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Changing Customer Needs/Expectations
Old,
Fixed, Capital Investment
Complexity, Customization
Centralized, On-Premise
Top-Down Procurement
High TCO, Low ROI
Internal Support
Outsourcing
New,
Flexible, Operating Expense
Simplicity, Utilization
Mobile, On-Demand
Bottom-Up Adoption
Rapid Time-to-Value
3rd Party Services
Out-Tasking
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Market Shift to ‘Out-Tasking’ Services
Cloud ComputingSaaSManaged Services
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How SaaS and ASP/Hosting Differ
Customer Application
ASP/Hosting Company
Same legacy applications Upfront perpetual license Still inflexible architecture Limited accessibility Single-instance, inefficient
Little perceived economic value.
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Why ASPs/Simple Hosting Fails
Multiple Customers
ASP/Hosting Company
Updates/Upgrades
Too Complex
Not Scalable
Limited Value-Add
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SaaS = The Advantage of Multi-Tenancy
SaaS Vendor
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SaaS & Social Networks Redefining Enterprise Apps
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Re-Thinking BI in the Cloud
Source: Gartner EXP (January 2011)
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New BI/Analytics ChallengesOld Challenge:
Collecting & Analyzing Internal Data Continuously
Customers Partners
Suppliers Salespeople
Operations Support
New Challenge:Sharing Information &
Insight Globally
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Traditional Barriers to BI/Analytics Success
SBU1 SBU
2SBU
3
SBU4
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Converting Data Into Actionable Intelligence
SBU1 SBU
2SBU
3
SBU4
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Common SaaS Adoption Patterns:Front- to Back- to Inter-Office Apps
BUSINESS APPLICATIONS
ERPFinance
…
Front Office Inter-EnterpriseBack Office
CollaborationCRM/SFA
…
ProcurementSupply-Chain
…
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SaaS Expands from Business Appsto Industry Solutions
BUSINESS APPLICATIONS
CollaborationCRM/SFA
…
ProcurementSupply-Chain
…
ERPFinance
…
Front Office Inter-EnterpriseBack Office
Financial Services…
Government…
Manufacturing…
Vertical Market/Industry-Specific Solutions
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SaaS Expands from Business Apps to IT Management
BUSINESS APPLICATIONS
CollaborationCRM/SFA
…
ProcurementSupply-Chain
…
ERPFinance
…
Front Office Inter-EnterpriseBack Office
SecuritySystems Mgmt
…
Network MgmtRemote Access
…
Data ProtectionStorage
…IT Management
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Public Private Hybrid CommunityDeployment
Models
ServiceModels
Software as a Service (SaaS)
Platform as a Service (PaaS)
Infrastructure as a Service (IaaS)
EssentialCharacteristics
On-Demand Self Service
Broad Network Access
Resource Pooling
Rapid ElasticityMeasured Service
SaaS Success Breeding More Cloud Services
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PaaS: Changing App Development Process
App Engine
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Amazon Transforming Acquisition & Use of Computing Power
Amazon Web Services Offering Free Usage Tier, New AWS customers can run free EC2 instance for a year.
UBS Securities predicts AWS revenues =$750M in 2011, $2.5 billion in 2014
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Maturing Corporate Adoption Programs
Ad-hoc, Business End-User/SBU Adoption;
IT Avoided.
Planned Enterprise-Wide, Business-Driven Adoption;
IT Involved.
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Evolution Of Customer ConcernsC
om
ple
xit
y
Time
Reliability
Security/Privacy
Interoperability/Integration
Governance/Compliance/Control
Innovation/Competitive Advantage
Support
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Everyone’s Reality:A Hybrid World
Balancing,
Multiple Development Platforms
Various Delivery Architectures
Growing Data Integration Options
New Deployment Alternatives
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CustomerExperience
The Added Dimension of SaaS/Cloud Computing
Communications Collaboration
Community
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The New Level of Valuein the SaaS/Cloud Market
Dynamic toolkit clearinghouse
Continuous updates, new ideas
Real-time, aggregated data
Meaningful benchmark studies
Practical best practices forums
User “Club” w/special privileges.
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New Deployment Models:Data Residency Option (DRO)
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Recent Acquisitions,New Cloud Battlegrounds
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Changing Channels
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Redefining the Role of IT
Shifting from SW/System Managementto Service & Vendor Management
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Service Transparency Key
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Picking the Right Path to Success
Limited
Internal IT
Internal Private Cloud
Hybrid Cloud Services
Public Cloud Services
Business Benefits
Level of
Con
trol
High
High
Low
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Cloud Deployment Alternatives
Vertical Markets
Service Delivery Model
Tim
e to
Valu
eC
ost
SMBs EnterprisesCustom
Standard
Complex
SimplePublic Private
Community
Hybrid
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Succeeding in the Cloud
Encourage input & ideas.
Evaluate various alternatives.
Engage Executives, SBUs & End-Users.
Employ incrementally.
Embrace the Cloud.
The Five E’s of Cloud Mgmt.
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Service Management in the Cloud Automate
Monitor
Measure
Iterate
Communicate
Repeat
Continuously,
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Attaining Ultimate Cloud ValueV
alu
e
Time
Reduced Costs
Accelerated Deployment
Greater Functionality
Higher Productivity
Customization/Innovation
Gaining CompetitiveAdvantage
Quicker Time-to-Value
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Summary of Cloud Market Evolution
v1.0 v2.0
• Focus on individual user
• Standalone point apps
• Horizontal applications
• Emphasis on ease of use/price/TCO
• One size fits all, limited customization capabilities
• Limited interoperability
• Cloud only, single direction
• Proliferation of providers
• Emphasis on solution
• Best-of-Breed Win
• Focus on the enterprise
• Scalable, secure platforms
• Vertical/industry solutions
• Emphasis on added functionality/ROI
• Multiple configurations, greater flexibility/versatility
• Greater integration capabilities
• Bi-direction location independence
• Industry shake-out & consolidation
• Emphasis on service management
• Strategic Sources Win
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Summary & Recommendations
The cloud is for real & growing fast. Ad-hoc, end-user/SBU adoption everywhere.
It’s time to act. Initiate trials, measure success, expand.
Redefine your role & relationships. Encourage greater input and sharing
Become a Cloud service provider. Evaluate, recommend, aggregate and manage.
Create new forms of value.Leverage new service management capabilities & resources..
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Good Luck!
For more information, [email protected]
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