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The Business Case behind Cloud Computing - The risks and rewards
- 1. THE BUSINESS CASE BEHIND CLOUD COMPUTING EMA - Fresh Technology James Valentine April 27th 2010
- 2. Agenda What exactly is cloud computing? The “Cloud Continuum” The Risks and Rewards of the cloud Determining what parts of your business can operate in the cloud Commercial in confidence | Copyright© 2010 Fronde Systems Group Limited 2
- 6. And more…Commercial in confidence | Copyright © 2009 Fronde Systems Group Limited 3
- 7. Cloud Computing Definition #1 Cloud computing is a style of computing in which dynamically scalable and often virtualized resources are provided as a service over the Internet. Users need not have knowledge of, expertise in, or control over the technology infrastructure "in the cloud" that supports them. Wikipedia Commercial in confidence | Copyright© 2009 Fronde Systems Group Limited 4
- 8. Cloud Computing Definition #2 The service is accessible via a web browser or web services API. Zero capital expenditure is required to get started. You pay only for what you use as you use it. Cloud Application Architectures, O’Reilly – George Reese Commercial in confidence | Copyright© 2009 Fronde Systems Group Limited 5
- 9. Cloud ComputingA simple analogy Commercial in confidence | Copyright© 2009 Fronde Systems Group Limited 6
- 10. What is all the fuss about? Commercial in confidence | Copyright© 2009 Fronde Systems Group Limited 7 Cloud Computing
- 11. “The Cloud Continuum” Commercial in confidence | Copyright© 2010 Fronde Systems Group Limited 8 The Cloud Continuum SaaS PaaS IaaS Traditional Microsoft BPOS Microsoft Azure Virtualisation “Tin” Google App Engine Google Apps Amazon EC2 SalesForce.com / Force.com Hosted Email Data-centre Hosting Xero
- 13. Usually a $ per user per month charging model.
- 14. Centralized feature updating – no patches and upgrades / features available to all users immediately.Commercial in confidence | Copyright© 2010 Fronde Systems Group Limited 9
- 16. Either limited customisation or customisation is completely proprietary to the solution.
- 17. A number of providers offer both SaaS and installed versions of their softwareCommercial in confidence | Copyright© 2010 Fronde Systems Group Limited 10
- 18. Commercial in confidence | Copyright © 2009 Fronde Systems Group Limited 11 Using Software-as-a-ServiceCase Study: Fronde!
- 19. Comparing Costs of On-Premise and SaaS On Premise SaaS Up front Licence Fee Customisation & Configuration Hardware purchase and Installation Hosting costs Off-site Backups High Availability / Replication Upgrades Support and maintenance Monthly “Subscription” Customisation & Configuration End user support Bandwidth Costs Commercial in confidence | Copyright© 2010 Fronde Systems Group Limited 12
- 20. Business Value – not just Cost Make IT efforts add value to your organisation Allow your organisation to act at Enterprise scale Allow your organisation to expand seamlessly Commercial in confidence | Copyright© 2009 Fronde Systems Group Limited 13
- 21. Business Value – not just Cost Reduce security and compliance costs No upgrades – ever. Improve service availability and reliability Transition from CapEx to OpEx Commercial in confidence | Copyright© 2009 Fronde Systems Group Limited 14
- 22. The case against cloud computing? Risk: Legal, regulatory, and business Connectivity and bandwidth Security and privacy Difficulty of managing cloud applications Commercial in confidence | Copyright © 2009 Fronde Systems Group Limited 15
- 23. The case against cloud computing? Current enterprise apps can't be migrated conveniently Lack of Service Level Agreement Lack of cost advantage for cloud computing Commercial in confidence | Copyright © 2009 Fronde Systems Group Limited 16
- 24. Considerations for moving an application to the cloud? Does it add value or innovation to your business? Does it need to be easily available to a geographically dispersed or highly mobile workforce? Are you facing a software upgrade or hardware refresh? Commercial in confidence | Copyright © 2009 Fronde Systems Group Limited 17
- 25. Considerations for moving an application to the cloud? Is it something that will start small and grow? Start large and shrink? Does it have fluctuations in demand? Are you experiencing availability or reliability issues that are affecting business productivity? Commercial in confidence | Copyright © 2009 Fronde Systems Group Limited 18
- 26. Future Trends Emergence of local “private cloud” and “government cloud” offerings “Cloud Enabled” versions of existing software to complement on premise offerings Platform as a Service frameworks and offerings to mature. Commercial in confidence | Copyright © 2009 Fronde Systems Group Limited 19
- 27. Future Trends cont. Second cable into NZ to further improve latency and performance of cloud applications Device / access independence Commercial in confidence | Copyright © 2009 Fronde Systems Group Limited 20
- 28. Call to Action Identify IT “complexity knots” in your organisation and see if cloud computing could eliminate them. Look at the time your IT resources are spending on activities that are non-“value add”. Commercial in confidence | Copyright © 2009 Fronde Systems Group Limited 21
- 29. Questions? Commercial in confidence | Copyright © 2009 Fronde Systems Group Limited 22 James.Valentine@fronde.com 021582253
Editor's Notes
- Nicholas Carr’s book The Big Switch: Rewiring the World, from Edison to Google. In that book the author chronicles the evolution of electric power from being self-generated by factories located on the banks of rivers and by individual cities for their own use and then later evolving to the utility model where extensive distribution systems allow power to be generated centrally and then distributed to cites, factories and homes. His thesis, shared by others, is that computing is evolving toward that utility model.