Cloud Computing

2A division of Konica Minolta Business Solutions USA Inc.

What is Cloud Computing?

A model for enabling convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction.

In short, “computation as a…utility”

3A division of Konica Minolta Business Solutions USA Inc.

Why is it called “the Cloud”?

The term “Cloud” comes from the cloud symbol on a network designer’s flowchart. This symbol is used to denote the Internet as a definition for a packet of information.

4A division of Konica Minolta Business Solutions USA Inc.

Characteristics of a Cloud

Simple Users do not need to understand the underlying technology

infrastructure. Business Centric

Users buy capabilities, not resources. Elastic

Services are available as needed. Use only as much or as little as needed.

Scalable Users can access more power and capacity without adding complexity

Universally Accessible Access does not depend on the users location. Available via internal or

external connections.

5A division of Konica Minolta Business Solutions USA Inc.

Business Case for Cloud Services

Cost Reduction Scalability and Elasticity Security Increased Performance Mobility Reduced Environmental Impact Disaster Recovery Turn Fixed Cost into Variable Cost Peace of Mind

6A division of Konica Minolta Business Solutions USA Inc.

3 Primary Cloud Service Models

Software as a Service (SaaS) Use provider’s applications over a network

Platform as a Service (PaaS) Deploy customer-created applications to a cloud

Infrastructure as a Service (IaaS) Rent processing, storage, network capacity, and other

fundamental computing resources

7A division of Konica Minolta Business Solutions USA Inc.

4 Primary Cloud Deployment Models

Private Cloud Enterprise owned or leased

Community Cloud Shared infrastructure for specific community

Public Cloud Sold to the public Mega-scale infrastructure

Hybrid Cloud Composition of two or more of the above

8A division of Konica Minolta Business Solutions USA Inc.

Cost Reductions

Capital expenditures are reduced since investment in hardware/software is made by the service provider

Operating expenditures are reduced since operation and maintenance of the IT infrastructure has been moved to the service provider

Facility costs (square footage, HVAC, power, security, etc.) are significantly reduced

9A division of Konica Minolta Business Solutions USA Inc.

Mobility

The functionality provided by the cloud should be available to the business wherever its personnel are based and via multiple access methods – from the desktop, a remote laptop, a mobile device, or a web browser.

Simply put, a computing device needs only to connect via some type of network and, once it has connected, it can access the full computing power of the cloud.

Connected employees can access up-to-date information and work on the same document or project simultaneously with others without spending time sending, receiving, or synchronizing.

10A division of Konica Minolta Business Solutions USA Inc.

Why Cloud Computing?

Increased Reliability The cloud runs on systems that are extremely reliable and redundant

Increased Scalability Providers add capacity when and where needed

Cost Reduction Both capital and operating expenditures are reduced

Environmentally Friendly Carbon footprint is reduced by eliminating individual server purchases

Portability/Accessibility Files and software are available anywhere there is an Internet connection

Efficient Use of Computer Resources Reduction in CPU/server slack time

Versionless Software Updates to software are constant and transparent to the user.

11A division of Konica Minolta Business Solutions USA Inc.

Key Considerations

Total Cost of Ownership (TCO) Hardware and Infrastructure Savings CapEx and OpEx Ratio Shifting Security Implications Service Provider Stability Service Level Agreements

12A division of Konica Minolta Business Solutions USA Inc.

Total Cost of Ownership (TCO)

A data center is one of the most financially concentrated assets of any organization and holistically assessing its true TCO is difficult. These costs are typically spread across several departments which makes management of these costs and assessment of alternatives difficult.

13A division of Konica Minolta Business Solutions USA Inc.

Security Implications

Shifting data to an external cloud reduces the exposure of sensitive data (assuming a proper security regime at the provider)

Clouds make security auditing/testing simpler

Clouds make regulatory compliance (HIPAA, PCI/DSS, etc.) simpler by shifting physical security responsibility to the provider

Clouds enable automated security management

Redundancy and disaster recovery are a core service in the Cloud

14A division of Konica Minolta Business Solutions USA Inc.

Service Provider Stability

If the provider goes out of business, it may be impossible for the business user to recover their data and investment

Businesses should conduct extensive due diligence into the provider’s history and financial status before negotiating for service

Service level agreements must be executed in the event of an interruption of operations.

Unwind provisions and procedures must be clear and unambiguous

15A division of Konica Minolta Business Solutions USA Inc.

Service Level Agreements (SLAs)

Contract between customers and service providers of the level of service to be provided

Contains performance metrics

Problem management details

Contains penalties for non-performance

16A division of Konica Minolta Business Solutions USA Inc.

Final Thoughts

Cloud computing may enable businesses to save money and be more secure

Users will have the flexibility of accessing information from anywhere an Internet connection exists

Allows businesses to focus on their core competencies Eliminates concerns with version maintenance and end-of-

life declarations Shifts CapEx to OpEx and reduces both Simplifies regulatory compliance requirements