The Impact of Cloud Computing on the Management and IT Consulting Industry12-06-2011

© Copyright 2011 Hitachi Consulting

www.hitachiconsulting.com

Dr. Chad M. Lawler

Director of Consulting Services

Cloud Computing [email protected]

www.hitachiconsulting.com/cloud

The Impact of Cloud Computing

on the Management and IT

Consulting Industry

Best Practices Webinar

Tuesday, December 6, 2011 at 1:00 pm (ET)

mailto:[email protected]

http://www.hitachiconsulting.com/cloud


Discussion Agenda - Impacts of Cloud on Consulting

1. IT Delivery Model is Changing

2. Consulting is Changing

3. Focus is on Integration & Delivery Speed

4. New Capabilities Required

1


Cloud Shifts IT Consumption

Cloud Computing is Driving a Fundamental Shift Consumption of IT Multi-cloud is the norm with increased adoption of various & different cloud resources

Average cloud consumer will use at least 10 different cloud resources by the end of 2012

Cloud Applications & Services

80% of new commercial enterprise applications will be cloud-based in 2012

Cloud & IT service automation tools will eliminate 25% of IT labor hours by 2015

Low-cost cloud services will cannibalize 15% of top outsourcers' revenue by 2015

IT Operations Shift

20% of Businesses IT Operations will be Cloud-based by 2012

Public cloud spending will grow four times faster than overall IT spending

50% of Global 1000 will store customer-sensitive data in public cloud by 2016 Q4

SaaS & Mobile Dominance

50% of enterprise email users rely primarily on browser/tablet/mobile client by 2016

Mobile smart phones/tablet app dev projects outnumbers PC 4-to-1 by 2015

By 2016, SaaS represents 50% of the entire cloud market, $30.1 B out of the total $60 B

2

Source: Gartner, 2011, "Gartner's Top Predictions for IT Organizations and Users, 2012 and Beyond”

Source: IDC, 2011, "IDC Predictions 2012: Competing for 2020" Doc #231720


Vast Cloud Ecosystem of Numerous Cloud Services

3

Source: Cloud Times

SaaS

IaaS

PaaS


Complex Cloud Ecosystem Relationships

4

Services

Providers Cloud Services Consumers

SaaS

IaaS

PaaS

Complex Cloud Ecosystem

Community of interacting

companies & consumers selling

and using cloud services

With a complex set of technology

& business forces & relationships

Driving Shift in IT Consumption

Increase in service providers,

stakeholders & business

relationships to be managed

Need for Intermediaries

Requires integration capabilities to

connect & enable cloud potential

Cloud Service Brokers (CSB)


IT Supply Chain - Relationship Management & Service Integration

Improve IT Supply Chain

IT Organizations Must Become More Effective IT Supply-Chain Managers

IT value is largely defined by its role as the owner of the IT infrastructure

Primary value of IT is evolving from operator role, moving to managing IT supply chain

Create More Value

IT can create value for their business & better position IT as an enabler/growth driver

Must spend less time on IT issues and more focus on IT supply chain management

Emphases on managing partners, outsourced IT and cloud services providers

Relationship Management & Service Integration Focus

IT organizations will have to excel at relationship management

Become more adept at coordinating widely distributed activities and services

5


Consulting Companies/SIs as Intermediary Cloud Brokers

6

Services

Providers Cloud Services Consumers

SaaS

IaaS

PaaS

System

Integrators

VARs

Value-Add

Service

Developers

Channels

Consulting

Companies

Marketplace

Brokerage

Technologies &

Platforms

Brokers

Marketplace

Brokerage

Technologies &

Platforms

Marketplace

Brokerage

Technologies &

Platforms


Cloud Service Broker Benefits

Cloud Brokerage Service

Aggregation, integration, automation & customization of different cloud services

Simplifying procurement & implementation, providing governance, management & control

Cloud Simplification

Reduces complexity of cloud service adoption & delivery, addressing transition challenges

Automation of complex & challenging processes that inhibit cloud service on-boarding

Cloud Single Point of Ownership

Multiple cloud IaaS, Paa & SaaS solutions aggregated into a single point of ownership

Orchestration provides a single point of relationship across multiple cloud solutions

Cloud Sourcing Optimization

Improved cloud sourcing and implementation options

Orchestration and automation to simplify buying and management process

7

Automation

Aggregation

Integration

Planning

Customization

SLA Management

Contract Management

Contracting

Billing

Support

Migration

Procurement

Provisioning

Testing

Service Management


Hitachi Consulting Cloud Service Delivery Platform

8

SaaS

IaaS

PaaS

Enterprise Market IT Customers

Mid Market IT Customers

SMB IT Customers

Defense & Public Sector

• Simplification

• Aggregation

• Integration

• Automation

• Sourcing

• Procurement

• Governance

• Control

• Integrated Cloud Consulting & Brokerage Service Delivery

• Multiple Integrated Cloud IaaS, PaaS & SaaS Solutions

• Orchestration, Providing Single Ownership Across Platforms

• Integrated Cloud Services Management, Governance & Control


Impacts of Being Intermediary Cloud Brokers

Change in Service

Consulting Organizations should evolve their business, operations and delivery models

Must provide consulting services plus cloud service integration

Requires New Skills, Expertise & Methodologies

Change in Delivery

Solution Delivery Moves to the Cloud Platform

Type of Services Delivered Changes - Mobile cloud apps, Managed cloud services

Cost of Delivery and Structure Changes

Change in Speed

Increased rate of service with rapid delivery timeframes

Change in Revenue Model

Revenue model changes from one-time to consulting plus ongoing incremental revenue

9


Summary - Cloud is Changing IT Consulting

IT Delivery Model is Changing

Push IT Supply Chain to Pull IT Supply Chain

From “Inside-Out”, to “Outside-In”

Consulting is Changing

From Development & Implementation

To Aggregation, Integration & Managed Services

Focus is on Integration & Delivery Speed

From Long Solution Lifecycles

To Rapid Cloud-based Delivery Model

New Capabilities Required

Cloud Integration, Aggregation, Customization Management & Governance

Via New Service Broker & Delivery Platforms with Integrated Consulting Services

Requires New Skills, Expertise & Methodologies

10

© Copyright 2011 Hitachi Consulting 11

Dr. Chad M. Lawler

Director of Consulting Services

Cloud Computing

www.hitachiconsulting.com/cloud

[email protected]

Toll free 1.877.664.0010

http://www.hitachiconsulting.com/cloud

mailto:[email protected]

The Impact of Cloud Computing on the Management and IT Consulting Industry12-06-2011

Business

cloud shifts

cloud applications services

lowcost cloud services

cloud times copyright

public cloud spending

consumption cloud computing

entire cloud market

impact of cloud computingon