De nombreuses définitions existent au sujet du Cloud Computing et les fournisseurs les cadrent selon une perspective technique, faisant passer le concept à un mot à la mode (Buzz word) égarant ainsi les décideurs, hommes d'affaires et leur laissant une idée confuse de son importance concurrentielle pour l'entreprise.
Ce livre blanc interactif a pour intention d'expliquer le concept du "Cloud Computing", la définition du concept et les technologies principales sur lesquelles le Cloud Computing est fondé.
Il vous présentera les contraintes et les facteurs de l'environnement d'aujourd'hui qui peuvent motiver l'adoption réussie du Cloud Computing dans la stratégie d‘une entreprise.
1. Cloud Computing :
Definition& Impact on the Business
Juvénal CHOKOGOUE M
Consultant on Applied Data-Processing Methods for
Decision Help-Making
• CO-DE-0001
• [06/21/2013]
2. Module Overview
• The New Challenge of Business…
• What this module Stands for ?
• Who is this module for ?
• Before battle begins
• The New Corporate Business Structure : From Hierarchical
Model to Network Model
• Cloud Computing : A Business Strategy based on Agility
• Key Technologies used in Cloud Computing
• Differences between IaaS, PaaS and SaaS
• Implication of the transition to Cloud Computing
• What Should I remember ?
• Some Cloud Providers
• Bibliography & Resources
• About me
3. The New Economic Challenge…
Today’s businesses face rapidly changing conditions, new technology, new competitive forces
and new consumer trends. As we look at the horizon, we see dramatic change standing out : Volatility is
here to stay.
Scaling operations up and down as conditions changes and ability to pivot quickly and
address new threats or opportunities are what make companies successful in today’s economy.
Today’s market volatility is increasing. Products have life cycles measured in months or a
couple of years at most. Technology and consumer preferences are rapidly evolving. New fashions and
new products and whole product categories pop up without warning, drastically altering traditional
customer buying patterns. Not only is product demand hard to estimate, but so too are the costs of
everything from raw materials to labor and transportation. The real-time global economy of the twenty-first
century is a very different world from that of the last century.
Today, responsiveness and flexibility are key words for success. But to effectively implement
flexibility and responsiveness into their business, organization's strategies MUST find a way to shift sunk
costs into variable costs. In that way, as operating costs rise as business activity rises, and costs will also
drop as activity drops and costs won’t rise at all if expected activity levels don’t materialize or a new
product doesn’t take off.
So, let’s find a way to build a computing model flexible enough to support this new business
environment volatility.
4. What this module Stands for ?
This module is an interactive White Paper which intend to explain the meaning of “Cloud
Computing”, the definition of the concept and the key technologies that cloud computing is
built on.
The module will show you today’s organization constraints and factors that can motivate
successful adoption of Cloud Computing in an organization strategy.
It will present some implications of transition to Cloud Computing in the way that today’s
businesses are driven.
At the end, the module will provide the impact of Cloud Computing in the IT work and any
professional work.
We expect that, by the end of the module, you will have understood at least what the Cloud
Computing is, where it does fit, and what can be its implications in your organization or in
your professional life.
So, Keep Reading…
5. Who is this module for ?
This module has been built for every one, from professionals to students who want to
have a clear idea about the concept of Cloud Computing, its implications in today’s
business and more importantly, its consequences in the labor.
So, if you are an IT professional, this module will be very useful to you, because it
presents to you core technologies of Cloud Computing and drastic changes brought by
the it in your profession.
If you are a decision maker, you will be thankful to this module, because it presents
specifically to you business models that you can adapt to your company to face new
markets threats and a set of new technologies that comprehension can help you to build
a more robust strategy for your business.
If you are an Information Worker or a business analyst, this module will help you to
understand the strange word that “Cloud Computing” is, how you can take advantage of
Cloud Computing to improve your daily work and most importantly it will help you to
prepare yourself to the future consequences of adoption of Cloud Computing by your
company.
If you are a student or interested, you will benefit all the advantages listed above and will
gain a good understanding of “Cloud Computing”.
6. Before battle begins
information provided here is for informational purposes only and represents my current point of view as
of the date of this presentation. Due to changing conditions of market, information provided here can be
modify or obsolete, it should not be interpreted to be a commitment and I cannot guarantee the accuracy
of any information provided after date of this presentation.
Contents of websites provided here can be modify or change, or the website itself can be unavailable
after the publication of this presentation. So I can not MAKES warranties, express, implied or statutory, as
to the information in this presentation.
Product names related here are or may be registered trademarks and/or trademarks in the U.S. and/or
other countries.
Feel free to share this module with anyone you know, from your colleagues to your friends, but in this
case, don’t forget to mention the name of the author .
You can use and change the content of this module at your own but I will not be responsible of it content
in this case.
This module is not for sale, If you intend to use it to your own, please, don’t commercialize it !
7. The New Corporate Business
Structure :
From Hierarchical Model to Network
Model
8. “Supply creates its own demand, one can not have overproduction”. You surely remember this
sentence from Jean Baptiste SAY. JB SAY said that in the eighteenth century; At that time product
demand was reasonably predictable and stable; so companies had just to allocate labor and capital to
optimize production and Return On Investment (ROI). In that context, ability to lower transaction costs,
product cost and gain efficiencies from economies Of scale were enough to be successful.
Since it was possible to make reasonably reliable predictions of customer demand and prices for labor
and raw materials, companies gather themselves into huge and vertically integrated conglomerates. In
that way, they were able to make large capital investments in plant and equipment to achieve economies
of scale and meet demand for their products at the lowest per-unit costs, and thus earn the greatest
profits.
They paid for these investments and their resulting high fixed costs through increases in productivity that
enabled them to produce greater and greater amounts of standard goods and services at lower and
lower costs.
Naturally, this leads to tendency to organize themselves as hierarchical pyramids where most people are
powerless workpeople who just follow orders while the important decisions are made by a small group of
powerful executives at the top of the pyramid.
But that, that was Before !
9. The Hierarchical Pyramid Model
Decision-Maker
Control
Business Units
Orders
Information
In Centrally controlled hierarchies, People at the top of
corporate hierarchies are overwhelmed by the sheer
volume of decisions they have to make; they are too far
away from the scene of the action to really understand
what’s happening; and by the time decisions are made
the actions are usually
too little and too late
Centrally controlled hierarchies
move SLOWLY because only a
few people know
what the strategy is and
everybody else waits for
permission to act
10. But Today, businesses face rapidly changing conditions, new technology, new competitive
forces and new consumer trends. Market volatility is increasing. Scaling operations up and down as
conditions changes and ability to pivot quickly and address new threats or opportunities are what make
companies successful in today’s economy.
Today Products have life cycles measured in months or a couple of years at most. Technology
and consumer preferences are rapidly evolving. Not only Product demand is hard to estimate, but so too
are the costs of everything from raw materials to labor and transportation. The real-time global economy
of the twenty-first century is a very different world from that of the last century.
Today, responsiveness and flexibility are key words for success. Companies need to be agile
and they can no longer follow the traditional hierarchical model where there is such a high fixed costs
and a decision-making bottleneck at the top of the organization. They need something more agile,
something that can help them turn fixed costs into variable cost. Like this, as operating costs rise as
business activity rises, and costs will also drop as activity drops and costs won’t rise at all if expected
activity levels don’t materialize or a new product doesn’t take off.
Now instead of a small group of executives telling everybody else what to do, people should
have authority to figure out for themselves what to do. People should be motivated to coordinate,
cooperate, and collaborate with each other by a financial incentive system that rewards them for their
common successes instead of rewarding each manager for their individual successes.
The evolution of corporate organization structures like this is driven by the convergence of
economic necessities with technological capabilities :That is where “Cloud Computing” comes in to play !
11. The Network Model : A Model of
Responsive Organization
Business
Unit 2
Coordination
In a responsive organization, Enterprise Coordinator
says WHAT. Business Units are free to choose HOW
Business
Unit 1
Business
Unit 4
Business
Unit 3
Business
Unit 5
New
Unit 2
Coordination requires
everybody to know what
the strategy is and have
authority to act.
Business units
become new
coordinators to
support expansion
into new market
New
Unit 1
13. In volatile time like today, Business models with high fixed costs are much riskier than they used to be.
Reactiveness generate efficiency; a better strategy is to shift fixed costs into variable costs. A responsive
model gives flexibility to adapt to changes as quickly as they happen.
A lot of companies have high fixed operating costs because of IT investments in computers, business
application systems, data centers and staff needed to run the technology and systems. Or investment in
IT cannot be easily reconfigured to adapt to changes. Ironically, these IT systems are a critical factor in
any company’s ability to be agile and responsive.
Recent studies shows that about 70 to 80 % of company IT budgets goes to the operation and
maintenance of existing systems and data centers. So in many organizations, there isn’t much money
available to design and develop new systems.
Given this situation, consider this axis of reflections:
“What if companies could outsource their IT Infrastructure with all ongoing costs to a highly specialized
provider ? If companies cannot have to worry anymore about all of the financial and operational
overhead associated with building and operating their own data centers, would they then be able to
focus more on what they do as a business? “
Companies have today the big opportunity to reduce IT Costs by reducing unused IT Infrastructure
capacity through what is called CLOUD COMPUTING.
In effect, some companies (providers) are now offering their computing power and software
applications on a Pay-as-you-go basis. With this opportunity, companies can now power their business
operations with a “flexible and Scalable Computing Platform “ !
14. What is Cloud Computing Anyway !?
There is numerous definitions about Cloud Computing and Vendors are constantly framing cloud from
an IT perspective, and fighting over confusing cloud definitions, leaving business leaders unclear of the
corporate or competitive importance. But here are some definitions :
- IDC (International Data Corporation) : “Consumers and business products, services and solutions
delivered and consumed in real time over the internet”.
- IBM : “Cloud computing is a pay-per-use consumption and delivery model that enables real-time
delivery of configurable computing resources (for example, networks, servers, storage, applications,
services). Typically, these are highly scalable resources delivered over the Internet to multiple
companies, which pay only for what they use.”
- Microsoft : “An approach to computing that’s about internet scale and connecting to a variety of
devices and endpoints”
- Jeff KAPLAN : ‘‘ . . . a broad array of web-based services aimed at allowing users to obtain a wide
range of functional capabilities on a ‘pay-as-you-go’ basis that previously required tremendous
hardware/software investments and professional skills to acquire.’’
In a Cloud Computing architecture, one or more companies provide online Computing resources
(Services) to another companies that the latter pay on a “pay-as-you-go” basis.
15. What is Cloud Computing Anyway !?
The Cloud computing has three widely agreed particular characteristics :
1) Practically unlimited computing resources: Resources like computing power, data
storage space, networks, servers are available on demand as needed.
2) No long-term commitments: Computing resources are immediately available and
they may be used as long as needed and then retired because they are acquired on a
month-to-month or even a minute-to-minute basis.
3) Pay-as-you-go cost structure: Because there are no long-term commitments, the cost
of cloud computing resources is a variable cost, not a fixed cost; cost fluctuates
depending on the amount of usage.
17. Key Technologies used in Cloud Computing
Since the Cloud Computing is still evolving, there is a lot of confusion and definitions in
the industry when talking of it. But It is important you realize that as a concept, the term “Cloud
Computing” is just a metaphor for computing resources that companies and users access without the
need to know exactly where that hardware and software are physically located.
The Cloud Computing is set up of three components layers :
₋ SaaS (Software-as-a-Service) : whereby a software provider delivers and hosts an application,
without the need for the customer to house and maintain the application in its own data center.
₋ PaaS (Platform-as-a-Service) : which is a development environment where a developer can create
and develop applications on a provider’s computing environment, thereby eliminating the need to
find company-owned infrastructure for the development.
₋ IaaS (Infrastructure-as-a-Service) : which allows companies to essentially rent data center
environment without the need and worry to create and maintain the same data center footprint in
their own company.
It is important to note that these 3 types of services /Layers may exist independently of one another
or combined with one another. SaaS offerings needn’t be developed upon PaaS offerings although
solutions built on PaaS offerings are often delivered as SaaS. PaaS offerings also needn’t expose IaaS
and there’s more to PaaS than just running platforms on IaaS.
19. Differences between IaaS, PaaS and SaaS
Differences and relationship between IaaS, PaaS, and SaaS.
Here’s another way to look at the cloud services taxonomy and how this taxonomy maps to the
components in an IT infrastructure.
20. Implication of the transition to Cloud Computing
In his controversy 2003 Harvard Business Review article titled, ‘‘IT Doesn’t Matter ”, Nicholas
Carr states that “the IT function, which in the past has focused on IT as a business input, wasn’t really
directly influencing what you were selling anyway.” That is to say that, the traditional IT functions such as
starting data centers & Servers, maintaining legacy application systems, network administration... do not
provide any competitive advantage; So companies are finding ways to shift most of traditional IT
activities out of corporate IT. Here are some implications of that fact into IT function and overall
business:
DELL states that, with the adoption of the cloud, “everyone becomes a knowledge worker”.
As a matter of fact, the Cloud offers necessary automation and control to workers to essential
applications and data. Therefore, we will create more knowledge and foster greater collaboration than
ever imagined. Knowledge, a highly prized asset and competitive differentiator for business, will not
longer be limited only to a subset of workers, but for every worker.
because of all kinds of economic opportunities driven by the Cloud Computing and due to
the fact that Cloud frees IT Staff of traditional functions, IT will be used to pursue more strategic tasks
and higher priority outcomes, therefore the value of IT Workers will come from their ability to
proactively deliver the information systems that their business units need to achieve their profit
objectives
More over, Since IT operations are no longer competitive differentiators, it is very probable
that companies will delegate traditional IT work to a smaller group of Cloud Service providers that
specialize in getting it done better than the in-house team largely because the providers can deliver
higher levels of service at lower costs than if companies continue to operate them internally.
21. So, only IT Workers who know how to apply the core set of IT Techniques to directly add value to
business will are probably those who will stay in company. A key finding from a 2012 Economist
Intelligence Unit study found, “Almost six in ten (57%) of executives surveyed expect their IT function
to change significantly over the next three years; 12% predict a ‘complete overhaul ” “.
As a result of fact, company’s Staff will be largely setup of only specialized Business Process people
whose work add value directly to company’s product. Note that, due to the level of expertise require
to handle Cloud computing technologies, Cloud service providers will need IT workers with very high
level of master in order to provide their services efficiently. But as Rick Pittard states: “People focused
on building and operating data centers often don’t realize how much things have changed in the last
few years.’’
So, it is very probable that, with adoption of the Cloud Computing, people, who setup the workforce
of the market should be : either a Specialized and Highly focused Business Process people, or a
Highly-Specialized IT master. So, be careful not to be of those who : ‘‘have always done it in this way.’’,
because companies need today to be responsive !
In conclusion, Leasing capacity from IT service providers will probably increasingly become
a more attractive financial option to most organizations and it is very probable that with the
progressive adoption of the Cloud Computing, companies will outsource more and more of their basic
IT operations. This will in turn enable them to shift of their time and attention to find ways to use IT
to deliver much more concentrated competitive advantage than ever before. So, “IT profession as we
have known it for the last several decades is dying !”
22. What Should I remember ?
• For Business Professionals & Decision-Makers :
₋ The new economic market obligate companies to be Agile. Business Agility is the ability to
make continuous incremental changes and adjustments in operating procedures so that
the company can respond as new business conditions arise.
₋ Companies that understand how to optimize their IT Costs will achieve more agile business
model.
₋ Cloud Computing is a Business Strategy based on agility and responsiveness.
₋ Technology is an enabler of change, not the cause of it. You must see it as a platform that
supports organization’s business Process. That is to say that the Cloud Computing will be
benefit for your organization only if it is well-aligned with Business Process and
Organization objectives.
• For IT Professionals :
₋ Business Agility calls for IT Agility
₋ Cloud Computing is not only a technology, it is a part of an overarching responsive
business strategy.
₋ Cloud Computing is set up of three layers : Iaas, Paas and SaaS
₋ With adoption of cloud, IT will be used to deliver much more concentrated competitive
advantage than ever before.
23. Some Cloud Providers
Here are some cloud providers I personally know. There are some others.
- Microsoft with its AZURE platform, Office Web Apps, SkyDrive, AZURE HDInsight
- AMAZON with its Amazon Web Services, Amazon Elastic Compute Cloud (Amazon EC2)
- Google with its Google Drive, Google Compute Engine, Google Big Query, Google Prediction API
- Yahoo
- IBM
- Dell
- Orange Business Services
- Salesforce.com : we don’t present anymore these pioneer of Marketing based Cloud.
- Predixion, with its Predixion Insight, a Cloud-based Analytics.
- Citrix
- VMWARE
- Intel
25. Bibliography & Resources
Matthew Mikell, DELL Cloud Evangelist, “Cloud impacts and outcomes for business leaders: Ten
ways business will change”
http://resources.idgenterprise.com/original/AST-0090232_cloud-impacts-outcomes-for-business-leaders.
pdf
Saul J. Berman, Lynn Kesterson-Townes, Anthony Marshall, Rohini Srivathsa, IBM Institute for
Business Value, “The power of cloud : Driving Business model innovation “
http://resources.idgenterprise.com/original/AST-0063512_ibm_powerofcloud.pdf
http://ibm.com/cloud
Brousell, Lauren. “Survey: CIOs are putting the cloud first. ” CIO.com. June 14, 2011.
http://www.cio.com/article/684338/Survey_CIOs_Are_Putting_the_Cloud_First
Michael Hugos, DerekHulitzky, “Business in the Cloud : WHAT EVERY BUSINESS NEED TO KNOW
ABOUT THE CLOUD COMPUTING”, John Wiley & Sons, Inc., ISBN 978 0 470 61623 9
Jeff Kaplan, ‘‘Simplifying the Term ‘Cloud Computing’’’ Datamation.com Blog, June 25, 2009,
http://itmanagement.earthweb.com/netsys/article.php/3826921/Simplifying the Term Cloud
Computing.htm
http://WindowsAzure.com
http://www.microsoft.com/windowsazure/
International Data Corporation (IDC), September 2009
The itmWEB Site , IT Budget Allocations Benchmarks, www.itmweb.com/blbenchall.htm
Nicholas Carr, The Big Switch (New York: W.W. Norton & Company, 2009)
26. About Me
• I am a freelance/Consultant specialized on data
Processing methods, methodologies and
technologies which allow organisations managers
to make day-to-day decisions for their business.
• I analyse IT Technology and its impact on the
Business leading and then I find the right IT
Technology which can fit to the business. I am all
about allowing organisations to capture data which
business process needs to complete successfully,
transform it into information and help managers to
make better decisions.
• I develop reliable, scalable and robust solutions in
tools information workers are already familiar to;
this to reduce time spend on learning and increase
performance.
Tools you’re
already
familiar with
Data Information Knowledge
Actionable
plans
Performance
This schemas describes my
methodology to provide solutions
that transform data into performance
Contact
Mail : juvenal.corp@gmail.com
Phone : +23798546599
27. Thank you for attending, I sincerely hope
this module will be helpful for you !