Transformational Benefits of the Cloud
Information & Communication technology
October 2013
Fifth Generation of Computing
1970s
1980s
1990s
2000s
2010+
Mainframe
Client‐Server
Web
SOA
Cloud
80%
of new commercial enterprise apps will be deployed on cloud platforms in 2013$241B
predicted cloud computing market in 2020Which of the following best describes your long term expectations for cloud computing at your organisation over the next 5 years?
Long‐term Outlook Shows one quarter Will Have Majority of IT Ops in the Cloud
Currently In 18 months
Private Cloud Public Cloud Community Cloud
Growth Expected for All Models
Approximately, what per cent of your organization’s total IT environment (data, applications, infrastructure, etc.) presently resides in each of the following, and will in 18 months?
Which of the following best describes your organization’s current stance on cloud deployments?
Still Evaluating What to Host in the Cloud
Conventional Capacity Utilization ‐ Inefficiencies
TIME IT CAP A C ITY Actual Load Allocated IT‐capacities “Waste“ of capacities “Under‐supply“ of capacities Fixed cost of IT‐ capacities Load Forecast Barrier for innovationsCapacity Utilization curve – Cloud Environment
Actual Load Allocated IT capacities Reduction of initial investments Reduction of “over‐supply“ No “under‐supply“ Possible reduction of IT‐ capacities in case of reduced loadTime
IT
CAP
A
CITY
Load ForecastMetrics that translate the indicators of the capacity‐utilization curve to transformational benefits to the business Margin enhancement Dynamic Usage Compliance Speed of cost reduction Optimize Ownership Rapid Provisioning
Business Metrics from Capacity Utilization Curve
Workload Patterns Optimal For Cloud
Usage C o mpute Time Average Inactivity Period • On & off workloads • Over provisioned capacity is wasted • Time to market can be cumbersome C o mpute Time Average Usage • Unexpected/unplanned peak in demand • Sudden spike impacts performance • Can’t over provision for extreme cases Average Usage C o mpute Time • Successful services needs to grow/scale • Keeping up w/ growth is big IT challenge • Complex lead time for deployment C o mpute Time Average Usage • Services with micro seasonality trends • Peaks due to periodic increased demand • IT complexity and wasted capacity “On and Off” “Growing Fast” “Unpredictable Bursting” “Predictable Bursting”Etisalat view of Cloud transformational impact
Define and create the capabilities that IT will offer › Strategic planning › Organization › Governance › Architecture and planning › Competency › Metrics and process excellence Manage Define Deliver Align Manage Define Deliver Align On premise computing Cloud computing Align IT capabilities with needs and priorities › Relationship management › Business initiatives › IT value › Program prioritization › Demand management › Service level management › Strategic sourcing Deliver high quality IT solutions and on‐going service Manage IT › Solution delivery › Solution maintenance › Transaction processing › Process improvement › Infrastructure readiness •Hardware •Databases •Networks › Management reporting › Asset management › Payroll and benefits › Regulatory and internal audit compliancePrivate (On‐Premise) Private (On‐Premise) Storage Server HW Networking Servers Databases Virtualization Runtimes Applications Security & Integration Yo u manag e Infrastructure (as a service) Infrastructure (as a service) Storage Server HW Networking Servers Databases Virtualization Runtimes Applications Security & Integration Manag ed by v endor Yo u manag e Platform (as a service) Platform (as a service) Storage Server HW Networking Servers Databases Virtualization Runtimes Applications Security & Integration Manag ed by v endor Yo u manag e Software (as a service) Software (as a service) Storage Server HW Networking Servers Databases Virtualization Runtimes Applications Security & Integration Manag ed by v endor
Cloud Service Types
The path and pace of transformation or
migration to cloud vary by industry
Business v alue ‐addEarly Adoption Wide‐spread use Full Maturity Low Medium High Banking Electronics & high Tech Capital Markets M&E Health Pharmaceutical CPG Government Retail Communications Insurance Utilities Automotive Energy Transport Hospitality Trajectory < 1 1 ‐ 2 +2 Years to next phase Some industry resources lagging due to heavy legacy, while others are leading adopter Source: Accenture Enterprise Architecture & Cloud Computing 2013
10% 9% 20% 12% 24% 5% 2% 5% 4% 19% 14% 40% $10 million or more $5 million to $9.9 million $1 million to $4.9 million $500,000 to $999,999 $100,000 to $499,999 $50,000 to $99,999 Less than $50,000 1,000+ <1,000
Enterprise Organisations Investing Significantly More
Source: 2013 IDG Enterprise Cloud Computing Study Approximately how much will your organization invest in cloud‐based services computing (including software, services training and other related costs) in the next 12months?Lower TCO: A Top Internal Selling Point
Which of the following arguments or rationales have proven most effective in helping you to sell the benefits of cloud to internal stakeholders at your
company/organization?
Enabling business Continuity Greater flexibility to react to changing market conditions Speed of deployment Improving customer support or services reducing resource waste Enabling innovation Savings on CAPEX Gaining a competitive advantage Expanding revenue opportunities Need for real‐time information Replacing on‐premise legacy technology Development of new products or services 43% 40% 39% 38% 37% 33% 33% 31% 31% 29% 27% 24% 41% 38% 44% 41% 41% 42% 42% 38% 31% 39% 45% 41% 10% 12% 12% 13% 14% 16% 17% 17% 21% 19% 16% 22% 2% 5% 2% 3% 5% 4% 5% 8% 7% 7% 7% 7% 4% 5% 3% 5% 3% 5% 3% 6% 10% 6% 5% 6%
Very important Somewhat important Not very important Not at all important Not Applicable
Business Continuity & Speed of Deployment
are Top Drivers
How important are the following as business drivers of investment in cloud computing technology?
Cloud Accelerating IT Business Value
How is the use of cloud computing technology impacting the following at your organisation? 56% 56% 54% 54% 50% 49% 49% 46% 31% 12% 4% 8% 6% 9% 6% 14% 25% 8% 32% 27% 26% 23% 24% 22% 30% 24% 14% 24% 18% 48% 14% 13% 16% 15% 14% 13% 12% 22% 19% 13% Access to critical business data & application IT innovation Employee collaboration IT agility Demand of new applications Need for specialised IT skills IT complexity End user satisfaction IT costs IT headcountIncreasing Decreasing No Impact Not sure
Experiment Non‐critical Use Full Production Transformed IT IaaS | PaaS | SaaS Private | Hybrid Clouds Payment Models Education Transition Integration Workflow Change Customization/ Rearchitecture Policies/Procedure s Proof of concept
Cloud Adoption Progression for End Users
EXPERIMENT: End users will gain education on cloud providers, the cloud ecosystem, and cloud business models. Any testing of cloud systems will in large part be done in the public cloud. NON‐CRITICAL USE: End users will select a system that is not business critical and does not contain sensitive data for a cloud transition. Some end users may begin building private clouds if the long‐term strategy includes that model. FULL PRODUCTION: End users will securely move business‐critical systems into the cloud. At this stage, companies will begin moving architecture and applications between cloud systems and/or on‐ premise systems to find the optimal mix. TRANSFORMED IT: End users will adopt new practices and policies for cloud‐enabled IT. Applications will be customized or rebuilt for cloud use, and processes will reflect greater flexibility and availability of IT systems. Public Clouds Provider Switching SecuritySpeed of Cost Reduction
Cost of Adoption/De‐Adoption
The speed and rate of change of cost reduction can be much faster using Cloud Computing than traditional investment and divestment of IT assets
Optimise ownership use
A key aspect of moving to Cloud Computing is the ability to select hardware, software, and services from defined design configurations to run in production
