CLOUD COMPUTING PRIMER FOR EXECUTIVES

Cloud Computing – Who Cares?

Enables• New products, services, business models

(digital)• Faster growth (agility)• Better efficiency (not necessarily cheaper)Requires different• People • Processes• Technologies

Cloud Computing – Who Cares?

Cloud is the foundation for digital business platforms

Cloud Computing

Social Media

Data AnalyticsMobile

Credit: flickr/jenny-pics/

Cloud Computing – What is it?

IT delivered in a new way• Over the Internet• Capacity provided on an “as

needed basis” or utility• Resources provided

programmatically (API) • Some (or all) IT systems now

owned and operated by a Cloud Service Provider (CSP)

Cloud Computing – What is it?

Company

Cloud Service

Provider CompanyTraditional IT model Pure Cloud IT model

ApplicationsOS

HardwareDatacenter

USERS

ApplicationsOperating Systems

HardwareDatacenter

Users

Types of Cloud Computing

• “Unlimited” number of users• Share a common platform, e.g. Google, Amazon AWS,

Microsoft Azure, etc.Public Cloud

• Limited number of users linked by special interests, i.e. “government cloud”

Community Cloud

• Integrated combination of private, public and/or community cloud services from different providersHybrid Cloud

• User self service, highly automated• Could be on premise or hosted• Used by one or more internal organizations

Private Cloud

Types of Public Clouds

• Software as a ServiceSaaS

• Platform as a ServicePaaS

• Infrastructure as a ServiceIaaS

• Applications• Databases • Middleware• Operating sys• Virtualization• Hardware• Datacenter

• Middleware• Databases• Virtual machines• Hardware• Datacenter

Integration & Applications

• Virtual Machines

• Hardware• Datacenter

ApplicationsDatabasesMiddleware

OS

CompanyService Provider

Users & Integration

Is Amazon Web Services a IaaS or PaaS?

• The answer is – yes, to both • You can consume the platform

offerings, or just consume the infrastructure and do the rest yourself

• Many combinations of service providers are possible (and common) (Example: A SaaS company using a IaaS company for their infrastructure)

Why are There so Many Flavors of Cloud?

Proliferation

• Many application types developed over the last 50 years

• New business use cases drive new architectures

• Companies have different internal skillsets

Cloud Computing – What is it NOT?

• Virtualization• Not automated via API

• Managed services (hosting)• Off-premise (colocation)• IT Outsourcing

Cloud Value Proposition #1

Customer Intimacy

• Reach customers where they are, both virtual and physical

• Respond to customer needs in near real time

• Gain deeper insights into customer needs & buying behavior

Cloud Value Proposition #2

Business Velocity

• Quickly provision IT capacity for revenue growth• New product development• M&A integration• Geographic expansion

• Efficiently test new markets, products, business models

Cloud Value Proposition #3

Enable New Business Models

Long Tail

Multi Sided Platforms

Freemium

Open

Cloud Value Proposition #4 • Shift focus to developing and extending

core business capabilities • Gain efficiencies & move talent to value

added activities• Manage low value tasks with

automation• Utilize pooled IT resources & standard

services of cloud providers

ACCELERATE BUSINESS GROWTH

Focus on the Core

When not to use Cloud – Risk vs. Reward

• Purely for cost savings• Mission critical legacy IT

systems with:• Significant migration

cost/risk• Limited upside for business

(not strategically aligned)

Everything won’t go to the cloud

Cloud Transformation – Typical Order of Execution

Mail, Collaboration &

CRM

Web Content

Business Analytics & Decision Support

SoftwareDevelopment &

Test

Financial Reporting

DocumentManagement

Manufacturing

ERP

eCommerce

Disaster Recovery

Research and Development

Bus

ines

s C

ritic

ality

Time

• Maximize ROI, minimize time to value, increase flexibility

• Efficiently use resources

• Minimize business risk

Mobile

Q & A

?

THANK YOU