Industry Disruption & Cloud

Computing

Andrew Milroy, VP, ICT Practice

June 2012

Twitter:andy1994

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Agenda

Economic and political uncertainty

Disruption and Cloud Computing – Airlines

Disruption and Cloud Computing – Mining

Some other industries being transformed by Cloud

Computing

Conclusion

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Growing Economic and Political Uncertainty

Euro crisis spreads and puts the

world economy at risk

US economy’s kiss of debt

Global economy flirts with

depression

Why is Egypt rioting?

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Adoption level and type of cloud

Cloud Adoption in Australia

Source: Frost & Sullivan Analysis

N = 600

Adoption level has increased by 8 percentage points from Aug/Sep 2010.

Hybrid Clouds offering a blend of Cost Savings and Security witnessed

highest adoption.

57%

18%

3%

22%

43%

Not adopted Public cloud Private cloud Hybrid cloud

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Cloud Computing: Perception and Usage Trends, Australia

Source: Frost & Sullivan N = 100

1%

6%

7%

3%

5%

17%

16%

29%

26%

16%

41%

46%

33%

38%

38%

35%

26%

28%

27%

33%

6%

6%

3%

6%

8%

At this stage, the risks of cloud faroutweigh the benefits

I believe that Cloud computing is going toshrink IT teams and make some jobs

redundant

There is more pressure on me from thetop management to procure Cloud

services

Public Clouds are less secure than privateclouds

Cloud computing is my # 1 priority forcurrent/future fiscal year

Strongly disagre Somewhat disagree Neutral Somewhat agree Strongly agree

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• LCC subsidiary of Qantas. • Growth constrained by limited assets at airports, sometimes physical space. • Increasing passenger throughput is key to LCCs. • Jetstar is targeting 100% self service check-in. • Shortens queues and increases customer satisfaction. • Jetstar operates with only 5 FT IT staff. • IT department manages suppliers and provides services to the business. • Not an SMB. Revenues of A$2.6 billion in FY2011. Other LCCs doing something similar. Full service carriers starting to follow.

Cloud

Transformation

Traditional Check-In

Self Service

Airline Industry Disruption Case Study – Jetstar

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Some Key Changes Driven by Cloud Transformation

• Scalability. Self service has

increased check-in

passenger throughput by

75% in asset constrained

airports.

• Need for fewer and fewer IT

staff.

• Rapid/instant provisioning

of new services.

• IT staff become managers

of processes and providers

of services.

• Saves costs while

improving

customer experience.

• Growth constrained by

restricted assets at airports.

• Time consuming check-in

procedure.

• Need for more IT support.

• More difficult to include

value added services such

as better seating.

• Jetstar has always had an

outsourced model but still

needs to ‘sell’ importance

of IT.

Cloud

Transformation

Before After

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• Chose HP for a four year IT transformation deal, including setting up a private cloud.

• Faced challenges with legacy systems brought together by acquisition of Oz Mineral assets by China Minmetals.

• The centralization of servers and storage in phase 1, with workplace and service desk added in phase 2.

• Dynamic provisioning of preconfigured IT resources for business agility.

• Strong growth in business due to boom in mining industry – need IT to support growing demands.

• Consistent workplace and helpdesk experience across locations; better experience for employees and customers.

Cloud

Transformation

Legacy IT Systems

Flexible and Agile Resource Provisioning

Mining Industry Disruption Case Study – Minerals and

Metals Group

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Some Key Changes Driven by Cloud Transformation

• Implementation of a

common platform of IT

systems across the

combined entity.

• Cloud-based provision of

resources offering

business agility to support

growth across the globe.

• Greater flexibility for

employees.

• Consistent helpdesk

experience across global

locations.

• Centralized IT infrastructure

away from mines.

• Legacy systems due to

combinations of disparate

IT systems of combining

entities.

• Manual provisioning of IT

resources. Slow process.

• Disparate IT systems.

• Employee mobility was

restricted.

• Inconsistent helpdesk

experience.

• IT infrastructure co-located

with Mines.

Cloud

Transformation

Before After

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Value Proposition of Cloud Computing in the Government

Sector

Reduction in

ICT Spending

Government agencies can create a central pool of shared resources

– software and infrastructure. Consolidation of resources through

cloud computing is more cost effective reduces ICT spending.

Agility With a centralized infrastructure, cloud computing offers agility to

respond to changes in demand for different departments and

agencies.

Access to Most

Updated

Technology

All agencies have access to updated software and hardware

technology, with onus of upgrading on the service provider.

Elimination of

Procurement &

Maintenance

Elimination for the need to procure, monitor and maintain IT

resources reduces the need for IT staff and allows the

government/agencies to focus on their core areas of work.

Universal

Resource

Access

Delivered through the Internet enabling universal access to

resources. Helps in establishing a common platform for all its

eGovernment initiatives, one that is easily accessible by the citizens

as well.

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• Tablets and smartphones offer more and more functionality. • They are displacing PCs. • Cloud computing is driving this transformation.

• Data stored in the cloud. • Apps use local capabilities and integrate with cloud resources.

Cloud Computing Disrupts IT

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Banking

Utilities

IT

Media

Retail

Healthcare

Smart Grids

Post PC Era

Content Streaming, eBooks

Virtual Stores and more eCommerce

EMR and Point of Care Solutions

Branchless Banking

Industry Cloud Driven Disruption

Some other Industries being Disrupted by Cloud Computing

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Conclusion

• Economic uncertainty will drive innovation and new ways of

using technology

• Cloud Computing becomes a business issue

• IT departments will shrink, provide business services and

manage processes

• Cloud computing has been transforming businesses and

industries for several years. This will continue, but at a

faster rate than before

Global Growth Partnership Company

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