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ADOPTING THE CLOUD – HOW
WILL YOU STAY IN CONTROL?

CHIEF TECHNOLOGY OFFICERS’ COUNCIL
INTELLECT 25TH FEBRUARY 2013


John Glover
john.glover@inovem.com
INOVEM - I KNOW WHO?
IN-HOUSE APP STORES = CONTROL?


                 "Apps downloaded from public app
                 stores for mobile devices disrupt IT
                 security, application and procurement
                 strategies," said Ian Finley, research
                 vice president at Gartner.

                 "Bring your own application (BYOA) has
                 become as important as bring your own
                 device (BYOD) in the development of a
                 comprehensive mobile strategy, and the
                 trend toward BYOA has begun to affect
                 desktop and Web applications as well."
PUBLIC VS PRIVATE APP STORES?

                     • Where would the iPhone be
                      without the Apple App Store?

                     • IaaS providers look to add
                      value to their private cloud
                      clients

                     • Cloud service integration –
                      Private & Public cloud?
THE UK PUBLIC SECTOR G-CLOUD
Objectives
 • Create CloudStore for pre-accredited services
 • Simpler, quicker procurement
 • Adoption of shorter-term contracts
 • Improved cost transparency
 • Reduce risk ICT deployment
 • Try-before-you-buy
 • Increased levels of business for SMEs
 • Public sector cost savings
 • Agility
COLLABORATION IS USER DRIVEN
New ways of working often require a culture
change – top-down and bottom-up
• There needs to be a reason to collaborate
• Not a one-size-fits all approach
  –   Project Management
  –   Deal Rooms
  –   Business Intranets
  –   Client/Partner Extranets
  –   Special interest Communities
  –   Bid Management Workspaces
  –   Virtual Committee Rooms
  –   Social Networks?

• Empowerment of users (web 2.0)
• Innovation, experimentation and idea generation
• Growth in users = exponential increase in value
• Start small, THINK BIG!
DRIVERS FOR CHANGE?
User frustrations with Top-Down approach:
• Time to specify, develop and deploy
• Paralysis by analysis
• Expensive consultants
• Procurement methods/timetable
• Control & Red Tape
• Fit-for-purpose
• Flexibility and enhancement


• Personal experiences of App Stores
• User choice
• Departmental ICT budgets
• BYOD / BYOA?
TOP-DOWN VS BOTTOM-UP?

                  ICT
                               ?
                                                                                ICT
  Requirements




                               Policies/ Support
                 Pilot
                  Deployment




                                                                Business users




                                                                   Innovation


                                                                                      Innovation
                                                   Innovation




                                                                                                   Innovation
       Business users                                           Prototypes
THE CLOUD – IDEAL FOR INNOVATORS
Technology Adoption – don’t fight the stats!
• Early end-user involvement
• Instant deployment
• Prove and fine tune your business case
• Agility
• Flexibility
• Better cost-control
• Perfect your approach to governance
• Avoid costly mistakes
• Benefit from creativity
PAYING FOR UTILITY COMPUTING

• How do you pay for your utilities?               “Utility computing is the packaging
                                                   of computing resources, such as computation,
• How will you pay for Cloud services?             storage and services, as a metered service. This
                                                   model has the advantage of a low or no initial
• Deal making – a matter of budgeting              cost to acquire computer resources;
                                                   instead, computational resources are essentially
  convenience, fixed cost and certainty?           rented.” - Wikipedia
• Negotiated deals often lead to
  differential pricing

• Cloud pricing models differ
  –   Flat rates
  –   Bundles (users/functionality)
  –   Is volume discounting included?
  –   User activity (Collaborate/Consult/Inform)
  –   Request a Quote !?

• Call-off purchase orders
• Enterprise options/upgrades
  – What is the Extended Enterprise?
ARE YOU PAYING TOO MUCH?

                               100.0%
                                        Technology Adoption S-Curve
Negotiated
                                90.0%
Enterprise
deal                            80.0%
                                                                         VENDOR
             Service take-up




                                70.0%                                   EXPOSURE?
                                60.0%                                                Saving
                                50.0%
                                            CUSTOMER
                                           OVER-PAYMENT                              Waste
                                40.0%
                                                                                      Units
Initial                         30.0%
                                                                     Flexible       Purchased
obligation                      20.0%                             pay-as-you-go
                                        Ordered too much
                                10.0%                                contract
                                 0.0%
                                                           Time
DISRUPTIVE SALES & MARKETING

• Avoid ‘Gate Keepers’
• Circumvent ITTs and lengthy
 procurement

• Influence buyers/specifications
  – Use in-bound B2B marketing

• Find ‘White Knights’
• Reduce barriers to entry
  –   Instant access
  –   Free trials
  –   Free apps
  –   Departmental/project spend

• Empower users where possible
• Encourage referrals
• Central record of procurement?
  – Audit?
BUT WE HAVE RESPONSIBILITIES
Things cloud SaaS vendors should provide:
• Security accreditation
  – Independently ISO 27001 audit
  – Independently penetration tested
  – Regular security audits

• Service reliability
  – Independent and transparent monitoring
  – Service credits against contractual SLA

• Total price transparency
  – License cost calculator

• Responsive end-user support desk
• Web accessibility
  – Helping you meet you legal obligations

• Enterprise upgrade
  – To put you back in control
USER CHOICE/EMPOWERMENT
How will you help your business users navigate through the maze of cloud
apps and services?
OUR CLOUD SUPPLIER CHECKLIST

• Classification of data stored?            • Security breach reporting?
  – Public, internal use, confidential
                                            • Back-ups?
• ISO 27001 accreditation by UKAS?
                                            • Business continuity?
  – Service or infrastructure only?

• Insurances?                               • Data export?
• SLA ?                                     • Termination costs?
• NDA?
                                                         CRM               B2B
• Contract – standard terms or custom?
• Data location?
• Data protection, Safe Harbor?          Help                  INOVEM
                                         Desk                   Kahootz
• Staff vetting?
                                                                             IaaS
• Levels of support?                            Social
                                                Media
CLOUD COMPUTING PRINCIPLES

• Cloud First?                                            • Interoperability
• Use Proven Solutions                                    • Scalability / Elasticity
• Sharing of Cloud Resource                               • Business Continuity
• Level of Risk                                           • Cloud Proof of Concept
• Transparency of Information Handling                    • Ongoing Management
• Data Use and Disclosure
• Information Security Management
  System (ISMS)

• Data Portability / Service Transition
• Ease of Use

                         “The consumer of a service will identify the BIL of their
                     information and, from an IA perspective, will look for a service
                         that has security accreditation that ensures that BIL of
                            information will be appropriately risk managed.”
ENTERPRISE EXTRAS?

• Technical                       CTO/CIO/Procurement responsibilities?
 –   Single sign-on               • Internal CloudStore supplier manager
 –   Domain IP locking
 –   Systems integration          • Contract management
 –   Custom secure URL
                                  • Data assurance
 –   API integration support
 –   Deeper site administration   • Cloud use policies
• Contractual                     • Systems integration
 –   Service credits
 –   Improved SLA
                                  • Performance management
 –   Custom terms                 • Promotion of best practice?
 –   Telephone support
                                  • Central support desk?
• Services
 –   Site consolidation support
 –   Product white-labelling
 –   Data importing/exporting
 –   Account management
 –   Performance reviews
 –   Implementation services
DISCUSSION
Adopting the Cloud – How will you stay in control?
• In the short-term cloud app vendors can go around you by selling point solutions
• In the long-term we need to work together to deliver Enterprise-level solutions
• What services and support do you and your organisation want from us?
• What are your views regarding Private vs Public cloud app stores?
• How do you want to pay for Cloud resources - Deal or no Deal?

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INOVEM Intellect CTO Council 20130225

  • 1. ADOPTING THE CLOUD – HOW WILL YOU STAY IN CONTROL? CHIEF TECHNOLOGY OFFICERS’ COUNCIL INTELLECT 25TH FEBRUARY 2013 John Glover john.glover@inovem.com
  • 2. INOVEM - I KNOW WHO?
  • 3. IN-HOUSE APP STORES = CONTROL? "Apps downloaded from public app stores for mobile devices disrupt IT security, application and procurement strategies," said Ian Finley, research vice president at Gartner. "Bring your own application (BYOA) has become as important as bring your own device (BYOD) in the development of a comprehensive mobile strategy, and the trend toward BYOA has begun to affect desktop and Web applications as well."
  • 4. PUBLIC VS PRIVATE APP STORES? • Where would the iPhone be without the Apple App Store? • IaaS providers look to add value to their private cloud clients • Cloud service integration – Private & Public cloud?
  • 5. THE UK PUBLIC SECTOR G-CLOUD Objectives • Create CloudStore for pre-accredited services • Simpler, quicker procurement • Adoption of shorter-term contracts • Improved cost transparency • Reduce risk ICT deployment • Try-before-you-buy • Increased levels of business for SMEs • Public sector cost savings • Agility
  • 6. COLLABORATION IS USER DRIVEN New ways of working often require a culture change – top-down and bottom-up • There needs to be a reason to collaborate • Not a one-size-fits all approach – Project Management – Deal Rooms – Business Intranets – Client/Partner Extranets – Special interest Communities – Bid Management Workspaces – Virtual Committee Rooms – Social Networks? • Empowerment of users (web 2.0) • Innovation, experimentation and idea generation • Growth in users = exponential increase in value • Start small, THINK BIG!
  • 7. DRIVERS FOR CHANGE? User frustrations with Top-Down approach: • Time to specify, develop and deploy • Paralysis by analysis • Expensive consultants • Procurement methods/timetable • Control & Red Tape • Fit-for-purpose • Flexibility and enhancement • Personal experiences of App Stores • User choice • Departmental ICT budgets • BYOD / BYOA?
  • 8. TOP-DOWN VS BOTTOM-UP? ICT ? ICT Requirements Policies/ Support Pilot Deployment Business users Innovation Innovation Innovation Innovation Business users Prototypes
  • 9. THE CLOUD – IDEAL FOR INNOVATORS Technology Adoption – don’t fight the stats! • Early end-user involvement • Instant deployment • Prove and fine tune your business case • Agility • Flexibility • Better cost-control • Perfect your approach to governance • Avoid costly mistakes • Benefit from creativity
  • 10. PAYING FOR UTILITY COMPUTING • How do you pay for your utilities? “Utility computing is the packaging of computing resources, such as computation, • How will you pay for Cloud services? storage and services, as a metered service. This model has the advantage of a low or no initial • Deal making – a matter of budgeting cost to acquire computer resources; instead, computational resources are essentially convenience, fixed cost and certainty? rented.” - Wikipedia • Negotiated deals often lead to differential pricing • Cloud pricing models differ – Flat rates – Bundles (users/functionality) – Is volume discounting included? – User activity (Collaborate/Consult/Inform) – Request a Quote !? • Call-off purchase orders • Enterprise options/upgrades – What is the Extended Enterprise?
  • 11. ARE YOU PAYING TOO MUCH? 100.0% Technology Adoption S-Curve Negotiated 90.0% Enterprise deal 80.0% VENDOR Service take-up 70.0% EXPOSURE? 60.0% Saving 50.0% CUSTOMER OVER-PAYMENT Waste 40.0% Units Initial 30.0% Flexible Purchased obligation 20.0% pay-as-you-go Ordered too much 10.0% contract 0.0% Time
  • 12. DISRUPTIVE SALES & MARKETING • Avoid ‘Gate Keepers’ • Circumvent ITTs and lengthy procurement • Influence buyers/specifications – Use in-bound B2B marketing • Find ‘White Knights’ • Reduce barriers to entry – Instant access – Free trials – Free apps – Departmental/project spend • Empower users where possible • Encourage referrals • Central record of procurement? – Audit?
  • 13. BUT WE HAVE RESPONSIBILITIES Things cloud SaaS vendors should provide: • Security accreditation – Independently ISO 27001 audit – Independently penetration tested – Regular security audits • Service reliability – Independent and transparent monitoring – Service credits against contractual SLA • Total price transparency – License cost calculator • Responsive end-user support desk • Web accessibility – Helping you meet you legal obligations • Enterprise upgrade – To put you back in control
  • 14. USER CHOICE/EMPOWERMENT How will you help your business users navigate through the maze of cloud apps and services?
  • 15. OUR CLOUD SUPPLIER CHECKLIST • Classification of data stored? • Security breach reporting? – Public, internal use, confidential • Back-ups? • ISO 27001 accreditation by UKAS? • Business continuity? – Service or infrastructure only? • Insurances? • Data export? • SLA ? • Termination costs? • NDA? CRM B2B • Contract – standard terms or custom? • Data location? • Data protection, Safe Harbor? Help INOVEM Desk Kahootz • Staff vetting? IaaS • Levels of support? Social Media
  • 16. CLOUD COMPUTING PRINCIPLES • Cloud First? • Interoperability • Use Proven Solutions • Scalability / Elasticity • Sharing of Cloud Resource • Business Continuity • Level of Risk • Cloud Proof of Concept • Transparency of Information Handling • Ongoing Management • Data Use and Disclosure • Information Security Management System (ISMS) • Data Portability / Service Transition • Ease of Use “The consumer of a service will identify the BIL of their information and, from an IA perspective, will look for a service that has security accreditation that ensures that BIL of information will be appropriately risk managed.”
  • 17. ENTERPRISE EXTRAS? • Technical CTO/CIO/Procurement responsibilities? – Single sign-on • Internal CloudStore supplier manager – Domain IP locking – Systems integration • Contract management – Custom secure URL • Data assurance – API integration support – Deeper site administration • Cloud use policies • Contractual • Systems integration – Service credits – Improved SLA • Performance management – Custom terms • Promotion of best practice? – Telephone support • Central support desk? • Services – Site consolidation support – Product white-labelling – Data importing/exporting – Account management – Performance reviews – Implementation services
  • 18. DISCUSSION Adopting the Cloud – How will you stay in control? • In the short-term cloud app vendors can go around you by selling point solutions • In the long-term we need to work together to deliver Enterprise-level solutions • What services and support do you and your organisation want from us? • What are your views regarding Private vs Public cloud app stores? • How do you want to pay for Cloud resources - Deal or no Deal?