Copyright 2009 Archistry Limited. All Rights Reserved. Getting Your Head in the Clouds Andrew S. Townley Founder & Managing Director Archistry Limited 22 September 2009
May 09, 2015
Copyright 2009 Archistry Limited. All Rights Reserved.
Getting Your Head in the Clouds
Andrew S. TownleyFounder & Managing DirectorArchistry Limited22 September 2009
Public Information Copyright 2009 Archistry Limited. All Rights Reserved.
Introductions
SOA for E-Government2006
2007
2006
Adoption Forum 2006
Symposium 2007
2008
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Agenda
■ What is cloud computing?
■ What matters to your organisation?
■ What value can you realise from the cloud?
■ What are the risks and challenges of the cloud?
■ How can you get into the cloud?
4 Public Information Copyright 2009 Archistry Limited. All Rights Reserved.
Agenda
■ What is cloud computing?
■ What matters to your organisation?
■ What value can you realise from the cloud?
■ What are the risks and challenges of the cloud?
■ How can you get into the cloud?
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via theInternet
Cloud Computing is...
Datacentre Hardware& Systems Software
Accessed anytime,anywhere
& on-demand
Applications Deliveredas Services
+
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But, isn't that...
IaaS
SaaS
PaaS
Outsourcing
InternetIntegration
ManagedServices
ApplicationServiceProviders
ServiceCommercePlatform
ServiceOrientedArchitecture
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But, isn't that...
IaaS
SaaS
PaaS
Outsourcing
InternetIntegration
ManagedServices
ApplicationServiceProviders
ServiceCommercePlatform
ServiceOrientedArchitecture
Oh, Hell...It's a technology thing, isn't it?
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Not completely...
■ Organisational DNA changes required■ Not just an IT issue:
● Legal● Human Resources● Marketing & Sales● Research & Development● ...etc.
■ How you work with others
Oh, and that technology thing too...
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What's the Point?
■ IT as a utility:● Inexpensive● Pay-as-you-go● Scalable availability● Self-service access● Ubiquitous access● Reliability
■ Capabilities & relationships
Focus on the core business
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Why Now?
1 Illusion of on-demand, infinite resourceseliminates the need for long-term resource planning
2 No up-front commitmentsstart small and increase consumption as necessary
3 Pay-per-use for short-term needsdrives efficiency and conservation of resources
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Alphabet Soup
■ SaaS – software as a service
■ PaaS – platform as a service
■ IaaS – infrastructure as a service● Software infrastructure● Hardware infrastructure
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Cloud Models
Image source: MWD Advisors, http://www.mwdadvisors.com/blog/2009/07/seven-elements-of-cloud-value-public-vs.html
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Cloud Models
Image source: MWD Advisors, http://www.mwdadvisors.com/blog/2009/07/seven-elements-of-cloud-value-public-vs.html
Hybrid clouds blend both models to meet specific business needs
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Cloud Caveats
Our definition
Is a “Private Cloud” really a cloud at all?
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Agenda
■ What is cloud computing?
■ What matters to your organisation?
■ What value can you realise from the cloud?
■ What are the risks and challenges of the cloud?
■ How can you get into the cloud?
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Profitability
CO
ST
CO
ST
PR
OD
UC
TIO
NP
RO
DU
CT
ION
PR
ICE
SP
RIC
ES
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Value Disciplines
OperationalExcellence
CustomerIntimacy
Product / ServiceLeadership
Adapted from “Customer Intimacy and Other Value Disciplines”, Harvard Business Review, Jan/Feb 1993 by Treacy and Wiersema
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Value Disciplines
CustomerIntimacy
Product / ServiceLeadership
Adapted from “Customer Intimacy and Other Value Disciplines”, Harvard Business Review, Jan/Feb 1993 by Treacy and Wiersema
OperationalExcellence
You've gotta do them all, but you can only focus on one!
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The CEO's Agenda
Excerpted from The Conference Board's CEO Challenge 2007: Top 10 Challenges (http://www.conference-board.org/publications/describe.cfm?id=1362)Excerpted from The Conference Board's CEO Challenge 2008: Top 10 Challenges (http://www.conference-board.org/publications/describe.cfm?id=1569)
Excellence in execution
Sustained top-line growth
Consistent strategy execution
Profit growth
Talent management
Customer loyalty & retention
Speed, flexibility & adaptability
Corporate reputation
Innovation & creativity
Speed to market
Excellence in execution
Consistent strategy execution
Speed, flexibility & adaptability
Global economic performance
Financial risk (incl. liquidity)
Sustained top-line growth
Customer loyalty & retention
Improving productivity
Business confidence
Profit growth
1
2
3
4
5
6
7
8
9
10
2007 Survey 2008 SurveyOperations Customers Innovation
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Your Execution Approach
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Extends Stage 3
Business services
IT innovation
IT/Business feedback loop
Your EA Maturity Level
Based on research from MIT Sloan School’s Center for Information Research and IMD involving nearly 500 companies from 1995-2005
Local investments
Local structures
Local processes
Basic IT automation
High costs
Local IT automation
Start shared infrastructure
Start platform reduction
Technology & delivery standards
Lower costs
Enterprise view
Centralized data
Standardized interfaces
Reusable processes
Enterprise systems
Business Silos
StandardizedTechnology
Optimized Core
Business Modularity
SOA
Cloud
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Agenda
■ What is cloud computing?
■ What matters to your organisation?
■ What value can you realise from the cloud?
■ What are the risks and challenges of the cloud?
■ How can you get into the cloud?
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It Depends on Who You Are
vs.
SME = 99.9%( > 16M )
of EU businesses LE = 0.1 % (~17,000)of EU businesses
Figures from ENSI - The European Network for SME Research (1994), European Observatory for SMEs: Second Annual Report, ENSI authors and publishers. The Netherlands.
Yearly technology spend:~ $100,000 - $400,000
Yearly technology spend:~ $2M - $50M+
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SME Adoption Drivers
■ Cashflow and survival● Manage utilities and facilities costs● Economies of scale● Pay-as-you-go pricing
■ Avoid Microsoft licensing fees
■ “One stop shop” approach
■ Exposure as end-users
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Enterprise – Costs
Human cost per server €500/yr~100 servers / admin
€0.25/yr~200,000 servers / admin
Internal IT Cloud
Network bandwidth costs $500/Mb $12/Mb
Storage costs $3.75/GB $0.10/GB
CAPEX investment for 18extra months of IT capacity
$4.3M $0
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Enterprise – Productivity
■ On-demand compute resourcesOn-demand compute resources● Eli Lilly able to parallelize ~20M compute tasks/monthEli Lilly able to parallelize ~20M compute tasks/month● Significant decrease in cycle times to get resultsSignificant decrease in cycle times to get results
■ Dynamic collaboration environmentsDynamic collaboration environments● Support “anytime, anywhere” accessSupport “anytime, anywhere” access● Multi-user, realtime co-creation of deliverablesMulti-user, realtime co-creation of deliverables● No internal IT set-up time or costNo internal IT set-up time or cost
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Mapping Value Disciplines
CustomerIntimacy
Significant cost reductionsApplication consolidationMature sales & marketing vendors
OperationalExcellence
Streamlined & shared processesCost reductions
Product /Service
Leadership
Easier & quicker collaborationSupports more open innovationReduced time to market
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Agenda
■ What is cloud computing?
■ What matters to your organisation?
■ What value can you realise from the cloud?
■ What are the risks and challenges of the cloud?
■ How can you get into the cloud?
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The Cloud Reality
Your AppsYour Apps@ time @ time ttYour AppsYour Apps@ time @ time t + nt + n
70% of IT execs rated cloudsecurity risks “very significant”
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BCCIA Analysis Framework
■ Business Execution
■ Compliance
■ Confidentiality
■ Integrity
■ Availability
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Business Execution Risks
■ Who guarantees the SLAs?
■ Will a “one size fits all” SLA work for me?
■ What happens if we don't pay our bill?
■ How much risk transparency provided?
■ Do we really own our data?
■ Will it be practical to switch providers?
■ Can I set maximum spend limits?
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Compliance Risks
■ Where in the world is my app and data?
■ Can I limit sharing/scalability to certain localities?
■ What legal jurisdictions apply to my data?
■ Are we still compliant with all software licenses?
■ What happens when the vendor gets sued?
■ What does PCI in the cloud really mean?
■ What about HIPPA, SOX, BASEL II, etc.?
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Confidentiality Risks
■ What other apps and orgs share infrastructure?
■ What transmission & storage controls possible?
■ Is my data classified appropriately for the cloud?
■ In what cases can the vendor share data?
■ Do the terms change after acquisition?
■ What happens if vendor goes bust?
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Data Integrity Risks
■ What's my archive/restore plan?
■ How many copies of data will we have?
■ Where is the “master” data now?
■ Can we map all of the new data flows?
■ Will we know if cloud data has been modified?
■ What gets added to our data by the vendor?
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Availability Risks
■ What happens in DoS/DDoS at vendor?
■ Do I know how much I can actually consume?
■ What isolation exists between customers?
■ How & when do upgrades/maintenance happen?
■ How do I measure/manage/throttle use?
■ Is the data model available?
■ Is it cost-prohibitive to get my data?
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What Can You Do?
■ Policies are key● Services tied to classification levels● Integrate business & security planning
■ Vendor management● Be explicit in the details● Have a clear exit strategy● Understand liability
■ Incidents not just about you■ Have a strong federated IdM story
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What Can You Do?
■ Policies are key● Services tied to classification levels● Integrate business & security planning
■ Vendor management● Be explicit in the details● Have a clear exit strategy● Understand liability
■ Incidents not just about you■ Have a strong federated IdM story
Above all: be flexible and prepared to adapt to new ways of thinking!
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Agenda
■ What is cloud computing?
■ What matters to your organisation?
■ What value can you realise from the cloud?
■ What are the risks and challenges of the cloud?
■ How can you get into the cloud?
39 Public Information Copyright 2009 Archistry Limited. All Rights Reserved.
Start Now!
■ What can you move in 3-6 months?● Understand what you have now● Identify what commodity services you have● Identify the services that add real business value
■ How can you leverage the cloud to innovate?● Examine the existing organizational structures● Plan to build future applications differently● Identify what can get you closer to your customers
■ How much altitude can you actually manage?
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References
■ Armbrust, M, et al., Above the Clouds: A Berkeley View of Cloud Computing, http://d1smfj0g31qzek.cloudfront.net/abovetheclouds.pdf
■ Burton Group, Catalyst 2009 North America, Cloud Computing track, 2009-06-29.
■ Knorr, E, et al., “What cloud computing really means”, InfoWorld, 2008-04-07, http://www.infoworld.com/d/cloud-computing/what-cloud-computing-really-means-031
■ New Zealand Ministry of Economic Development, SMEs Internationally, Last update: 2007-07-30, http://www.med.govt.nz/templates/MultipageDocumentPage____3118.aspx
■ Preston, R., “Down to Business: Customers Fire A Few Shots at Cloud Computing”, Information Week, 2008-06-14, http://www.informationweek.com/news/services/data/showArticle.jhtml?articleID=208403766&pgno=2&queryText=&isPrev=
■ Ross, J.W., P. Weill, and D. C. Robertson. Enterprise Architecture as Strategy -- Creating a Foundation for Business Execution. Harvard Business School Press, Boston, MA, 2006.
■ Treacy, M., F. Wiersema, “Customer Intimacy and Other Value Disciplines,” Harvard Business Review, January/February 1993, pp. 84-93.
■ Urquhart, J., “The three routes to cloud computing's future”, cnet news, 2009-03-16, http://news.cnet.com/8301-19413_3-10196722-240.html
■ Weill, P., J.W. Ross. IT Governance: How Top Performers Manage IT Decision Rights for Superior Results. Harvard Business School Press, Boston, MA, 2004.
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