The Push and Pull of the Cloud. TPI Cloud Computing Overview. April 5 th 2011

The Push and Pull of the Cloud….

TPI Cloud Computing Overview

The Biggest Opportunity and Threat Since the

Internet…. Client and Market perspectives

Public Cloud

External services available on the Internet from

a third-party service provider

Private Cloud / Community ?

A Cloud Computing environment available on a

private network. Offers security and enterprise

reliability but loses the utilization benefit of the

public cloud.

Hybrid Cloud

Promise of Cloud Computing



Low or no capital expense



Very fast provisioning of services



Flexible capacity to quickly adapt to changes in demand



Lower operating costs



Reduced or no installation of releases, patches and

upgrades

Cloud Computing: A Common Definition

“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.”

According to the National Institute of Standards and Technology, Cloud

Computing is defined as:

Characteristics

•

Self-service

•

Broad network access

Cloud Strategy

Only 1 out of 20 clients have completed a strategy, and only 1 in five

have the internal resources to develop their cloud strategies.

31%

27%

21%

16%

5%

Completed strategy

Will evaluate on a point

solution basis

Currently developing strategy

Haven't formalized

discussions

Cloud not on company radar

n=103

Have qualified

people internally,

22%

Will seek outside

assistance, 71%

Don't know, 8%

Goals for Cloud Computing

Cost management is the primary value driver for clients considering

cloud strategies, taking 4 of the top 6 slots.

81%

73%

64%

63%

48%

41%

38%

34%

32%

32%

26%

25%

19%

18%

10%

3%

Scale with business demand

Drive cost reductions

Increase flexibility

Pay only for what we use

Align cost with value

Reduce capex

Decrease time to market

Increase infra utilization

Access to new features

Improve customer service

Decrease licensing mgmt

Standardized platforms

Improve competitive advantage

Improve reliability

Decrease reliance on IT

Risks in the Cloud

Data security is the largest concern as the market has yet to address

enterprise security requirements. Clients are responding by focusing on

private cloud or service provider hosted services.

78%

51%

49%

49%

48%

34%

33%

29%

27%

26%

25%

25%

11%

Data security

Failing regulatory requirements

Integration risks with legacy systems

Unclear who has access to my data

Disaster recovery

Co-mingling of data

Up-time availability

Connectivity / bandwidth

Service provider viability

Unclear where data is stored

Response time

Migration to different service

The Client View



Needed Agility



Capacity on

demand



Scalability



Speed to Market



Flexibility



Lower Capital



Cost savings



Social Changes



Komatsu Australia has signed

up with Telstra for its

communications needs and

has migrated to the telco’s

managed ICT Infrastructure as

a Service platform. In addition,

Telstra will manage hardware

and software.



Moving to enterprise utility

computing will give Komatsu

scalable computing power and

storage via a shared

environment within the Telstra

cloud allowing the company to

add new servers or extra

storage capacity on demand.

Previously it took Komatsu up

to two months to deliver the

same capability through

traditional hardware partners.



The bank’s chief information

officer Michael Harte, in a

recent speech to the

Committee for Economic

Development in Australia

(CEDA), said that the bank will

never buy another data centre.

CBA will never buy another

rack or server or storage

device or network device again

and I will never let any

organisation that I work for get

locked into proprietary

hardware or software again. I'll

never tell the bank’s teams in

the business that it will be

weeks to get them hardware

provision.

Komatsu signs Telstra for

five years

Computerworld 29 April, 2010

CBA recruits for shared

tech infrastructure

3 May 2010 – Australia

Drive to the private cloud

Get ready for niche, specialized clouds that companies will adopt to

pick and choose from based on their individual needs.

IDC August 2010

•

45 per cent will look to private standardization,

• 45 per cent will look to automation,

• 26 per cent will adopt private service level management, and

• 19 per cent will look at private self service models.

The swing is expected to continue exponentially, with 95 per cent of

companies adopting a virtualized private cloud by 2014.

Gartner August 2010

Client Challenges

Ensuring quality end to end service at a fair price, in a swiftly evolving

environment. In other words – nothing new, yet everything is new.

Connectivity / Reliability / Interoperability

Ability to Exit Current Relationships

Performance Aggregation and end-to-end Service Delivery

Security Maturity

Application Portfolio Constraints

Metering and Service Cost Management

Pricing and TCO

Viability of Business Case

Software Licensing Agreements

Service Provider Challenges

The challenges are almost the same – but from a different perspective

Service

Consistency,

Stability,

Leverage

Financial

viability

Connectivity / Reliability / Interoperability

Ability to Exit Current Relationships

Performance Aggregation and end-to-end Service Delivery

Security Maturity

Application Portfolio Constraints

Metering and Service Cost Management

Pricing and TCO

Viability of Business Case

Cannibalization

Pre-Cloud Considerations



Consolidation



Standardization



Simplification



Virtualization (of infrastructure)



Modernization (of applications)

Creating the ability to strategically place technology services

Cloud Adoption Challenges: Pricing



IaaS cloud pricing typically addresses:



Unit rates



Infrastructure to support the specific unit rate



Expenses often not included in a cloud provider’s price:



Integration of cloud service with retained environment



Service desk and technical support resources



Migration costs to cloud



Additional network bandwidth



Remaining book value of stranded assets and software



Remaining amortization of applications



Cost of fulfilling minimum volume commitments in current contracts



Costs of partial termination of existing contracts



Staff to manage additional provider contracts

Cloud Adoption Challenges: Security



Need to assess “traditional” security at cloud provider



Data center infrastructure, operations and processes



Recovery Time Objectives (RTO) and DR-BC practices/policy



Security practices, hiring policies, employee non-disclosures



Incident response and notification policies



Client data security considerations include



Access to sensitive data and intellectual property



Geographic location requirements (“anchoring”)



Access for legal discoverability, compliance, audit

Security concerns focus both on the provider’s internal security and