A New Reality: Cloud IT and Cloud Business

A New Reality

: Cloud IT

and Cloud Business

Westin Times Square

New York, New York

10 May 2011

Bill McNee

Founder and CEO

Saugatuck Technology

bill.mcnee@saugatucktechnology.

com

Session Agenda

Ø

Welcome to the Cloud Business Summit

–

Review of Conference Agenda

–

Logistics

Cloud Business Summit Agenda – Morning

Welcome Remarks

Opening Keynote: A New Reality: Cloud IT and Cloud Business

Featured Presentation: Realizing the Benefits of Cloud Computing

CIO/CTO Panel: Transitioning to the Cloud

Ø  Moderator: Bruce Guptill, SVP and Head of Research, Saugatuck Technology

Ø  Panelists: James Powell, CTO, Thomson Reuters, Pat Toole, Corporate VP and CIO, IBM, Manesh

Patel, SVP and CIO, Sanmina-SCI, Chris Perretta, EVP and CIO, State Street Bank

Mid-Morning Break

Fireside Chat: The Cloud and Business Services – New Opportunities, New Challenges

Ø  Host: William McNee, Saugatuck Technology

Business Strategy Panel: Opportunity and Risk in the Cloud

Ø  Moderator: Mike West, VP and Distinguished Analyst, Saugatuck Technology

Ø  Panelists: John Schloff, VP Global Strategy, Pitney Bowes, James Knight, EVP and Global CIO, Chubb

& Son, Gary Lynch, Managing Director Supply Chain Risk Mgmt, Marsh, Hubert Gassner, CFO, Invensys Controls

Cloud Business Summit Agenda – Afternoon

Breakout 1: Business Applications and the Cloud: From the Fringe to the Core

[Broadway Ballroom]

Ø  Moderator: Lee Geishecker, VP, Saugatuck Technology

Ø  Panelists: Rick Nucci, CTO, Dell Boomi, James Powell, CTO, Thomson Reuters, Steven John,

Strategic CIO, Workday, Francois Torcque, Sr. Director, Philips

Breakout 2: Public and Private Clouds – Myths and Truths

[Belasco]

Ø  Moderator: Charlie Burns, VP, Saugatuck Technology

Ø  Panelists: Chris Bird, Chief Architect, Sabre, Robert McNeill, VP, Saugatuck Technology, Joanne

Olsen, SVP of On Demand, Oracle, Scott Skellenger, Sr. Director, Illumina

Fireside Chat: Extending the Reach of Business Applications

[Broadway Ballroom]

Ø  With Nicholas Cumins, Senior Vice President, On-Demand, SAP

Ø  Host: Mike West, Saugatuck Technology

Mid-Afternoon Break

Featured Presentation: Cloud Wars: Do Empowered Users Really Want to Avoid IT?

Innovation Panel: What’s Next for, and From, the Cloud?

Ø  Panelists: Jason Maynard, Senior Technology Analyst, Wells Fargo, Evangelos Simoudis, Managing

Director, Trident Capital, Susan Nunziata, Editor-in-Chief, CIO Insight, Lisa Piece, Strategy Consultant, Saugatuck

Conference Sponsors – A Special Thank You

Platinum Sponsors

Gold Sponsors

Opening Remarks

What is “the Cloud”?

Ø

New York Times – Sunday, May 8

(

Sunday Business

section)

–

“Cloud computing [is where] a company’s computer functions are performed

in an offsite network, allowing it to perform tasks on a large scale and handle

a huge amount of Internet traffic.”

CEO, Grid Dynamics

Ø

Wikipedia Definition

–

Cloud computing

refers to the provision of computational resources on

demand via a computer network.

Ø

NIST Definition

–

Cloud computing

is a model for enabling ubiquitous, 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.

–

Essential Characteristics:

on-demand self-service; broad network

Saugatuck’s Cloud EcoStack™

What Is It? What Is In It? Who Is In It?

Level

0 Cloud Technologies

Basic hardware, software, networking,

and services

Cisco, Dell, HP, IBM, Intel, Microsoft, Red Hat

Level

1 Cloud Infrastructure _Services

Infrastructure -as-a -Service (IaaS) / “Cloud

Computing” (e.g., computing, storage)

Amazon, AT&T, HP, IBM, Latisys, Microsoft, Navisite, NTT, OpSource, Peer 1, Rackspace , Savvis, Verizon Level

2 _{Cloud Platforms & Hubs}

Platform-as-a-Service (PaaS), Hosted services (e.g., analytics, business services, development,

integration, security)

Accenture, Amazon, Dell Boomi, Google, HP, IBM, Microsoft, OpSource, Oracle, Rackspace Salesforce, Savvis, Verizon,

,

Level

3 _{Cloud Business Solutions}

Software-as-a-Service

(SaaS)

ADP, Ariba, Adaptive Planning, Host Analytics, Microsoft, NetSuite, Oracle, Salesforce, SAP, SuccessFactors, Symantec, Workday Level

4 Cloud Business Services

and Operations Business Process Outsourcing, Managed Services, Systems Integration, Related Services Accenture, Cognizant,

Comcast, IBM, Perot Systems, SAP, Symantec, Tenzing , Verizon, Wipro

Cloud IT and Cloud Business

Cloud IT

Ø

Everything-as-a-Service – with a

focus around cost savings and

process improvement:

ü

Infrastructure

ü

Platform

ü

Application

ü

Business Process

ü

Integration

ü

Management

Ø

Disruptive in IT strategy, planning,

budgeting, buying, and management

– therefore disruptive to business

strategy, planning, budgeting,

buying, and management

Ø

Key Challenge: The Hybrid Portfolio

Cloud Business

Ø

New ways of doing business

Ø

New business opportunities

Ø

Driven by:

ü

Low barriers to entry

ü

Proven offerings from providers with

viability and vision

ü

Assimilation, standardization, and

management of Cloud

ü

Previously-unrealized levels of business

+ IT integration in funding, planning,

management, and operations

Ø

Key Challenges:

ü

Identifying Opportunities

ü

Assessing ROI / Benefits

ü

Acquiring Cloud Solutions

ü

Managing

Resources

Summary Trends

Ø

Today’s economic situation continues to favor the Cloud

, driven by businesses that

are reshaping themselves as the global economy recovers from the Great Recession.

Ø

The Cloud – including SaaS, PaaS, IaaS and Cloud Services – will drive increasing

business and IT activity, resulting in

hybrid architectures

to manage, a new

Cloud IT

mission,

and the launch of

Cloud-enabled Business Services

by traditional businesses.

Ø

Though most enterprises may lag in embracing both PaaS and IaaS, partly because the

Public Cloud lacks formal standards,

Private Clouds are increasingly of interest,

especially to larger enterprises

.

Ø

Except for a handful of discrete offerings,

PaaS is still very immature, and not yet

“enterprise ready” for serious,

mainstream

applications development

– but will

evolve to become much more robust and credible by 2013-2015.

Ø

Through 2015, SaaS will continue to dominate Cloud IT spending

, including business

apps, social computing and mobility solutions, key aspects of the boundary-free enterprise.

Ø

Integration and workflow in the Cloud

– primarily with on-premise systems – will remain

a critical capability and requirement, especially for hybrid large enterprise environments.

Ø

Cloud Services Providers (including Cloud Enablers and traditional service providers

aggressively pursuing the Cloud) will flourish

– as they embrace SaaS, PaaS, IaaS

and BPaaS – serving ISVs migrating to the Cloud and enterprises reshaping themselves.

The Evolving Cloudscape

Source: Saugatuck Technology

The Rise of Cloud IT and Cloud Business

A d o p ti o n Low High Wave I: 2001-2006 Cost-Effective Software Delivery

SaaS 1.0

Early SaaS Adoption

•  Stand-alone Apps

•  Multi-tenancy

•  Limited Configurability

•  Focus on TCO / rapid deployment

Wave II: 2005-2010

Integrated Business Solutions

Mainstream SaaS Adoption

•  Integrated w/ Business

•  SaaS Integration Platforms

•  Business Marketplaces and SaaS Ecosystems

•  Customization Capability •  Focus on Integration

SaaS 2.0

Ubiquitous SaaS Adoption

•  Focus on Business Transformation

•  ISV to SaaS Enablement

•  Server and Application Virtualization

•  SaaS Development Platforms (PaaS)

•  Public Cloud Infrastructure (IaaS)

•  Cloud Collaboration Platforms

•  Customized, Personalized Workflow

2006 2007 2008 2009 2010 2011 2012 2013

2004 2005 2014 2015 2016

2003

Cloud IT Era

Post-SaaS Adoption

•  End-to-End Cloud Business Processes

•  Intelligent Hubs Linking Platforms

•  Virtualization on Mobile Devices

•  Elastic Cloud Infrastructure

•  Standards for Workload Portability

•  SLAs for Composite Service Offerings

•  Support at Business Process Level Wave IV: 2011-2016

Measured, Monitored, Managed Business Processes Cloud IT Gestation Period •  SaaS Moves to the Core •  PaaS Not Yet

Mainstream •  IaaS at the

Margins •  Momentum

Grows with Large Enterprises

Through 2015,

the largest driver of Cloud IT workloads will continue to be

Software-as-a-Service (in all of its forms, including business apps, social computing and mobile solutions).

Key drivers shift from “better, faster and cheaper” to “transforming the enterprise.”

Key Challenges / Common Pitfalls for Large Enterprises

Ø

Key Challenges:

–

IT Asset Management

–

Understanding and Managing Risk

–

Integration: Data, Security, Processes (internal and external)

–

Opportunity Recognition and Execution

Ø

Common Pitfalls in the Cloud Transition:

–

No formal planning process

–

Missing or poor governance structure

–

Poor or missing responsibility matrix

–

Neglecting or underestimating HR challenges

–

No project management office (PMO)

–

Missing or incomplete inventory of assets

–

Lack of operational oversight

–

Few relevant SLAs

–

Poor communication to constituencies

Best Practices from Early Adopters

Challenge Best Practices

Risk Management Identify and evaluate operational and contractual risks, execute risk avoidance and _{mitigation strategies, and monitor and report on risk exposure.}

Financial Management

Develop capital and operating budgets and rolling forecasts, monitor financial performance, perform financial analysis and manage invoicing.

Project Portfolio Management

Evaluate and monitor projects throughout their entire lifecycle (from project concept to closure) to ensure the business alignment and financial optimization of investments.

Contract Management

Maintain the contractual arrangements to ensure fit with business objectives and manage compliance through controls and audits.

Performance Management

Develop performance evaluation structure including reporting requirements, measure and analyze the business performance & execute performance improvement initiatives.

Issue Management Identify, resolve, escalate and monitor operational and contractual issues.

Stakeholder Management

Act as interface to communicate expectations, define rules for interaction and to resolve issues between the outsourcing provider and other stakeholders.

Vendor

Management

Provide a centralized office for the organization helping the business to get more out of their suppliers and ensure realization of expected value

Architecture Management

Define current and future IT policies and standards that guide the purchase, design and deployment of technology; define integration standards.

Saugatuck Technology Inc.

Ø

Saugatuck Technology provides subscription research / advisory and strategy

consulting services to senior business and IT executives, technology and

software vendors, business / IT services providers, and investors.

Ø

Our Mission is to help our clients make better business decisions and create new

business value through trusted and objective insights into the key market trends and

emerging technologies that are driving real change in enterprise IT.

Ø

Over the last few years this has included a major focus on Software-as-a-Service

(SaaS), Cloud Infrastructure, and Social Computing, among other key trends.

–

For business strategists

. We help businesses identify and frame new product and

business service opportunities made possible by the shift to the Cloud.

–

For IT executives

. We help save time and money when assessing key industry

trends, when making decisions about emerging technologies, and when deploying

and governing enterprise Cloud IT solutions.

–

For technology providers

. We help accelerate growth through our ongoing strategic

intelligence and market insight, and by identifying new business opportunities and

strategies that help win, keep and grow customers.

Ø

Our team of industry analysts and consultants are strategy and marketing experts in

enterprise software, IT services, and IT infrastructure / platforms.

Ø

Headquartered in Westport, CT with regional US research / sales locations in metro

How to Contact: Regional Sales Locations

US Locations Headquarters

Saugatuck Technology Inc. 8 Wright Street, 1st _Floor.

Westport, CT 06880 USA (P) +1.203.454.3900 Boston

222 Main Street, Unit 208 Falmouth, MA 02540 USA (P) +1.408.495.5445 Silicon Valley

Saugatuck Technology Inc.

5201 Great America Parkway, Suite 320 Santa Clara, CA 95054 USA

(P) +1.408.727.9700 US Regional Sales:

•  New England, Mid Atlantic, and Mid East:

Al.Vanek@SaugatuckTechnology.com

•  South, South East, and Mid West:

Matt.Peters@SaugatuckTechnology.com

•  West: Andrew.Jeffs@SaugatuckTechnology.com

INTERNATIONAL Germany

Saugatuck Technology Inc. Bluecherstr. 4

D 65343 Eltville am Rhein Germany

(P) +49.6123.630285

Regional Sales: Frank.Sempert@SaugatuckTechnology.com