Pace University Executive MBA Program class on Global Corporate Diversification Strategy
Microsoft’s top management team has hired your consulting firm to help them develop a corporate strategy. They want you to deliver information and recommendations to maximize the effectiveness of their portfolio. We will make recommendations on:
1. Diversification into new product markets and geographic markets.
2. Disposition of specific divisions or product lines.
2. Executive Summary
• Provide mobile cloud based security capabilities for large and
small and midsize businesses (SMB) and the general public
• Invest in mobile cloud computing platform and develop
applications across platforms which are managed by the cloud
• Continue to build a unified experience using cloud as a platform
4. Market GrowthTrends
• High-growth market reaching $4.13 billion by 2017
• 15% of IT budget dedicated to cloud security
• Growth will be driven by small-to-mid sized business
• Mobile and network cloud security spending to grow 20%
5. Cloud Security Challenges
• Data breach
• Data Loss
• Traffic hijacking and malicious insiders
• Insecure Application Programming Interface (API’s)
• Denial of service
• Insufficient due diligence
6. Acquire Security Driven Capabilities
• System based encryption
• Security tokenization
• Security information and event management (SIEM) tools
• System vulnerability assessment tools
• Fire walls for web based applications
7. Cloud Access Security Brokers (CASBs)
for commercial enterprises
• By 2016, 25% of enterprises will secure access to cloud-based
services using a CASB platform
• CASB’ already support MSFT applications
• e.g., Office 365 and Azure
• CASB’ already service same client base
• e.g., financial services, healthcare, retail, and government
• CipherCloud, Perspecsys, Addallom Labs, Armor 5, CloudMask,
Ncrypted Cloud, Skyhigh Networks, Netskope
8. Mobile Security Recommendations
• Partner with mobile cloud security companies to bring enterprise
grade threat protection and policy controls to mobile devices
• Invest in mobile cloud computing platform, to combine mobile
devices and cloud computing to create a new infrastructure
• Develop a new high-security tablet as a its continuing efforts to
expand its base with business and government customers
10. Restrictions on Cross-Border DataTransfers
• A number of countries restrict the transfer or sharing of personal
information beyond there borders
• Restrictions present significant challenges for multinational
companies seeking to move their data to the cloud
11. Offer Geographic-Specific Clouds
• Continue to grow Cloud OS Network delivering services built on
the Microsoft Cloud Platform
• Continue to build data centers in countries where demand for
localized cloud data centers is high to remain competitive and
operate without interference e.g., Germany
13. Mobile Recommendations
• Continue t0 invest in mobile cloud computing platform, to
increase share of MCC business & EM
• Continue to develop centrally coordinated applications that can
be deliver to any device (OS) and are managed in the cloud
• Improve device, mobile offering resources and communications
to increase market share to win in emerging markets
14. Mobile Data Demand
• Global connectivity
• Based on the trends, mobile
will help push internet
penetration beyond 50% of
the world’s population during
mid to late 2016
• Source: Ericsson Mobility Report, Q4
2014.
15. Internet of Everything:
Potential Impact on Cloud
• Globally, the data created by IoE devices will reach 403 ZB per
year (33.6 ZB per month) by 2018
• Globally, the data created by IoE devices will be 277 times higher
than the amount of data being transmitted to data centers from
end-user devices and 47 times higher than total data center
traffic by 2018
16. Consumer Cloud Storage
• By 2018, 53 % (2 billion) of the consumer Internet population will
use personal cloud storage
• Globally, consumer cloud storage traffic per user will be 811 MB
per month by 2018
17. Hardware Business Model Changing
• Emerging market dominance
• The number of active mobile connections surpassed the total
world population
• App revenues are expected to grow to $76.52 billion in 2017
19. App revenues expected to grow to $76.52 billion US
dollars by 2017
8.32
18.56
26.68
34.99
45.37
58.21
76.52
2011 2012 2013 2014 2015 2016 2017
APP Revenue
Revenue in billion U.S. dollar
494.5
725.3
1,019.7
1,300.4 1,284
1,435
1,579
2011 2012 2013 2014 2015 2016 2017
Smartphone Sales
Shipments in million units
vs.
21. MCCTrends for Devices
• Connected Homes and Offices: Smart Buildings and home device
management
• Television Evolution: 4K and mobileTV available for everyone
• Energy Management: New energy saving control devises and
applications that allow for energy efficient operation
• Wearables: Accessories and complements to smart phone operation
• Health care: application of MCC to healthcare industry
22. Connecting Cars
• Microsoft Azure helps Ford Motor Co. to automatically update
software
• Wi-Fi
• Ford is using a hybrid cloud
• Changing consumer’s mindset and experience
• Update car’s navigation system, contacts, audio system and
center touch screen
24. Ecosystem Challenges
• Microsoft has lacked a coherent ecosystem from which to create
a unified experience
• Microsoft's media system is very strong in some areas such as
gaming, and very weak in others, such as videos, music and social
25. Recommendation
• Invest in top selling gaming titles, universal apps, to attain a
younger demographic to upsell Microsoft products
• Gives Microsoft an installed base to upsell as customers move to
smartphones, tablets, PCs, enterprise applications, and cloud
• Incentivize developers to create their own ecosystems within the
Microsoft environment
• Integrate video streaming, digital audio and social media into
Xbox and across platforms
26. Purchase/Integrate Netflix
• A content/media cloud company like Netflix would significantly
boost Microsoft’s position in content and home entertainment
• Natural tie-ins to the Xbox business beyond the current
Netflix apps
• Netflix would make Microsoft more social, more mobile and
more cool
• Microsoft deep pockets would allow Netflix to go after more
content and break into more international markets
27. Purchase LinkedIn
• LinkedIn’s business focus fits with Microsoft’s strength in
enterprise technology
• Microsoft gets more social
• LinkedIn focuses on corporate offerings
• Microsoft could leverage existing relationships to push new
LinkedIn offerings to big customers
28. Purchase/Integrate Foursquare
• Fill Point of Interest gaps and as a foundation for building a
much better, more comprehensive database
• Mobile maps has become multifaceted
• Less about directions and more about how to live
• Combine with Bing; enrich its offerings
• Microsoft has struggled to build a presence in mobile; crucial
for a robust future
29. Purchase/Integrate Pandora
• Microsoft could turn it into an important part of its growing
digital media offerings
• Microsoft would go from being a fledgling player in a crowded
niche, to the king of the hill with Pandora
• Microsoft would help Pandora with distribution; only available in
the US, Australia, and New Zealand
• New advertising channels for Microsoft
• Utilize user data from other Microsoft products to get the best
advertisements to the user
30. Conclusion
• Mobile cloud based security is high growth market
• Mobile cloud computing is the future
• Creating a unified Microsoft experience is the key to upselling its
products
Notas del editor
Good afternoon! We are Pace Consulting group, my name is Omair Alam and these are my colleagues: Bill Burkey, Diana Davitadze, Stephanie Diaz and Byron Rocha. The question our team has wrestled with over the last few weeks, is what belongs in a mobile first, cloud first Portfolio: In other words what business should Microsoft be in?
There is no question that the the world is becoming more mobile, and the cloud has made information is more fluid.
What our presentation will address is how to maximize the effectiveness of Microsofts mobile, cloud portfolio.
Our team has determined that In order to maximize the effectiveness of Microsofts Mobile first, cloud first portfolio: Microsoft needs to do the following:
Provide mobile cloud based securities for large and midsize businesses and the general public
Invest in mobile cloud computing platform and develop applications across platforms which are managed by the cloud
Continue to build a unified experience using cloud as a platform. Something that has been a challenge.
We all know corporate security is more important than ever. Nearly every day there are more headlines about breaches, fraud and data loss. Some of the recent examples involve JPMC, Anthem Health and Target. Now let us take a look at Cloud Security market trends.
The cloud-based security services market, which includes secure email or web gateways, identity and access management (IAM), remote vulnerability assessment, security information and event management. This market is showing a high growth rate and is to is expected to hit $4.13 billion by 2017.
Currently 15% of companies' IT security budgets will be dedicated to security delivered as a service.
And growth is likely to come because of the adoption of these cloud-based security services by small- to-mid-sized business (SMB) in particular
According to SNS Research the mobile device and network security investments estimated to grow at a compound annual growth rate of almost 20 percent over the next several years, mobile security will continue to be an increasingly hot topic for both enterprise users and the general public
Source: Cloud Security Alliance (CSA) has identified 9 top threats to cloud computing security.
Data breaches:
Hackers can use side-channel timing information to extract private cryptographic keys in use by other VMs on the same server.
If a multitenant cloud service database isn't designed properly, a single flaw in one client's application could allow an attacker to get at not just that client's data, but every other clients' data as well.
The challenge in addressing this threats of data loss and data leakage is that "the measures you put in place to mitigate one can exacerbate the other," according to the report. You could encrypt your data to reduce the impact of a breach, but if you lose your encryption key, you'll lose your data. However, if you opt to keep offline backups of your data to reduce data loss, you increase your exposure to data breaches.
Data Loss: the second-greatest threat in a cloud computing environment the prospect of seeing your valuable data disappear into the ether without a trace. A malicious hacker might delete a target's data out of spite -- but then, you could lose your data to a careless cloud service provider or a disaster, such as a fire, flood, or earthquake. Compounding the challenge, encrypting your data to ward off theft can backfire if you lose your encryption key.
Data loss isn't only problematic in terms of impacting relationships with customers, the report notes. You could also get into hot water with the feds if you're legally required to store particular data to remain in compliance with certain laws, such as HIPAA.
Traffic Hijacking and malicious insiders: The third-greatest cloud computing security risk is account or service traffic hijacking. Cloud computing adds a new threat to this landscape, according to CSA. If an attacker gains access to your credentials, he or she can eavesdrop on your activities and transactions, manipulate data, return falsified information, and redirect your clients to illegitimate sites. "Your account or services instances may become a new base for the attacker. From here, they may leverage the power of your reputation to launch subsequent attacks," according to the report. As an example, CSA pointed to an XSS attack on Amazon in 2010 that let attackers hijack credentials to the site.
Insecure Application programming: Fourth on the list of threats are insecure interfaces and APIs. IT admins rely on interfaces for cloud provisioning, management, orchestration, and monitoring. APIs are integral to security and availability of general cloud services. From there, organizations and third parties are known to build on these interfaces, injecting add-on services. "This introduces the complexity of the new layered API; it also increases risk, as organizations may be required to relinquish their credentials to third parties in order to enable their agency," the report notes.
CSA's advice here is for organizations to understand the security implications associated with the usage, management, orchestration, and monitoring of cloud services. Weak interfaces and APIs can expose an organization to such security issues pertaining to confidentiality, integrity, availability, and accountability.
Denial of service ranks as the fifth-greatest security threat to cloud computing. DoS has been an Internet threat for years, but it becomes more problematic in the age of cloud computing when organizations are dependent on the 24/7 availability of one or more services. DoS outages can cost service providers customers and prove pricey to customers who are billed based on compute cycles and disk space consumed. While an attacker may not succeed in knocking out a service entirely, he or she "may still cause it to consume so much processing time that it becomes too expensive for you to run and you'll be forced to take it down yourself," the report says.
Insufficient due diligence; that is, organizations embrace the cloud without fully understanding the cloud environment and associated risks. For example, entering the cloud can generate contractual issues with providers over liability and transparency. What's more, operational and architectural issues can arise if a company's development team isn't sufficiently familiar with cloud technologies as it pushes an app to the cloud. CSA's basic advice is for organizations to make sure they have sufficient resources and to perform extensive due diligence before jumping into the cloud.
Retrieved at http://www.infoworld.com/article/2613560/cloud-security/cloud-security-9-top-threats-to-cloud-computing-security.html?page=2
We believe acquiring security driven capabilities will enhance and add long term value to MSFT competitive advantage. MSFT clients need new intelligent solutions to help them defend against security breaches. These capabilities include:
Cloud Access Securities Broker posses these capabilities. CASB are placed b/w clients and cloud service providers to consolidate multiple types of security policy enforcement.
authentication in layered mobile computing environments to ensure proper implementation, maintenance, and monitoring of secure mobile devices.
Privacy remains an important inhibitor in the deployment of all forms of cloud-based services. This is particularly true in those regions and countries with strong regulatory requirements.
Quite simply the technology has not gained wide acceptance.
A number of countries, including those in North Africa, Latin America, the Middle East and all of Europe restrict data transfer or sharing of personal information beyond there border. These restrictions present significant challenges for multinational companies seeking to move their data to the cloud.
Recognizing these challenges some providers are starting to offer geographic specific clouds in which data are maintained within a given country or jurisdiction.
(Some U.S. providers have certified to the U.S.-European Union Safe Harbor program, in order to accommodate EU-based customers. However, as the Safe Harbor only permits transfers from the EU to the United States, it is not a global solution.)
For example , all the European Economic Area (EEA) Member States and certain neighboring countries (including Albania, the Channel Islands, Croatia, the Faroe Islands, the Isle of Man, Macedonia, Russia, and Switzerland), as well as countries in North Africa (e.g., Morocco), the Middle East (e.g., Israel), Latin America (e.g., Argentina and Uruguay), and Asia (e.g., South Korea)—
.
We believe Microsoft should be prepared to respond to regulatory changes and localized demands by:
Continue to grow Cloud OS Network which consists of "a worldwide consortium of more than 25 cloud service providers delivering services built on the Microsoft Cloud Platform:
(Windows Server with Hyper-V, System Center and the Windows Azure Pack”)
Second continue to build data centers in countries where demand for localized cloud data centers high to remain competitive and operate without interference.
Right now Azure operates out of 17 regions around the world and currently MSFT has Europe data centers in Ireland and Netherlands. However, there are opportunities in Countries such as Germany and France whom demanding their own cloud data centers.
Retrieved at http://www.eweek.com/cloud/microsoft-unveils-global-cloud-os-partner-network.html
Retrieved at http://azure.microsoft.com/en-us/regions/
Retrieved at http://www.gartner.com/it-glossary/cloud-access-security-brokers-casbs
Source: http://www.sociallyawareblog.com/2014/10/29/privacy-in-the-cloud-a-legal-framework-for-moving-personal-data-to-the-cloud/
Global data center traffic will triple by 2018 to reach 8.6 zettabytes most of the growth coming from cloud traffic which will quadruple by.
Before organizations implement a comprehensive mobile cloud security strategy, it’s important to understand how employees BYOD and ppl are using technology to perform business tasks and how security gaps can be filled to safeguard sensitive information from malicious software,
Rapid expansion of cloud computing is increasing data center virtualization which provides services that are flexible , fast to and efficient.
widespread adoption of multiple devices
authentication in layered mobile computing environments to ensure proper implementation, maintenance, and monitoring of secure mobile devices.
The mobile cloud market is fast gaining momentum primarily due to the convenience provided by the mobile cloud apps and services to the users. The present times has seen an extensive rush in the adoption of mobile cloud as it provides users the access to any content simply on a click over one's mobile phone. Further, the mobile cloud market is also growing in pace as users are becoming more responsive towards adapting applications and services pertaining to the mobile cloud.
ubiquitous connectivity’ will gather even more pace during 2015, as cheaper handsets and more affordable data connections reach further around the world "The reason for emerging market dominance of smartphone growth in the next year is that pricing is reaching the sweet spot of $30 to $50 (around £18 to £30). This brings a major population segment (earning $2,000 to $4,000) into the market.”
•Worldwide social media users exceeded 2 billion back in August;
•Worldwide penetration of mobile phones passed 50% in September;
•The number of global internet users passed 3 billion in early November;
•The number of active mobile connections surpassed the total world population (January)
Mobile Internet
Mobile’s share of global web traffic leapt 39% since the same time last year, with one-third of all web pages now served to mobile phones:
Despite these slow speeds, data reported by Ericsson in its latest Mobility Report suggest that the average global mobile connection uses around 900MB of data every month, with total monthly global data traffic rapidly approaching 3 exabytes – i.e. 3 billion gigabytes:
**Cisco Global Cloud Index:2013 - 2018
● Globally, the data created by IoE devices will reach 403 ZB per year (33.6 ZB per month) by 2018, up from 113.4 ZB per year (9.4 ZB per month) in 2013.
● Globally, the data created by IoE devices will be 277 times higher than the amount of data being transmitted to data centers from end-user devices and 47 times higher than total data center traffic by 2018.
Consumer Cloud Storage
● By 2018, 53 percent (2 billion) of the consumer Internet population will use personal cloud storage, up from 38 percent (922 million users) in 2013.
● Globally, consumer cloud storage traffic per user will be 811 megabytes per month by 2018, compared to 186 megabytes per month in 2013.
Multiple-Device Ownership
● North America, followed by Western Europe, had the highest average number of fixed devices per user, while Middle East and Africa, followed by Latin America, had the highest average number of mobile devices per user.
Cisco Global Cloud Index:2013 - 2018
1. saturation of mobile devices in top markets. ."Global smartphone sales are set to grow by 18% this year, That growth will be driven by developing markets, led by India, China and Indonesia. The US, Japan and the UK last year were among the top five smartphone growth markets by value, will be knocked out the top 10 next year.
forecasts show seven new entries in the top 10 smartphone markets for 2015, in terms of growth by value - and these are all emerging markets, which have overtaken developed markets where smartphone saturation is nearing completion.
2.projected revenues of mobile app stores worldwide from 2011 to 2013 with forecast until 2017. In 2012, the global mobile app revenues amounted to 18.56 billion US dollars and are expected to grow to 76.52 billion US dollars in 2017.
This chart completes the global device unit growth from 2014-2019 with the mobile data traffic compound annual growth rate during the same period of time. Whereas the smartphone device growth will only increase by 16.7%, the correlating data traffic will grow by 60.1%
This statistic presents information on the projected revenues of mobile app stores worldwide from 2011 to 2013 with forecast until 2017. In 2012, the global mobile app revenues amounted to 18.56 billion US dollars and are expected to grow to 76.52 billion US dollars in 2017.
According to the forecast, more than 1.28 billion smartphones will be shipped worldwide in 2014. By 2018, the number is expected to climb to over 1.87 billion.
There were a number of cross-platform mobility partnerships, with IBM and Apple partnering to deliver enterprise iOS apps, Google and Samsung working together for a new enterprise container on Android devices, BlackBerry teaming with Samsung on BlackBerry Enterprise Service and Microsoft making inroads with several partners around Office 365 and cloud platforms.
According to the GSMA which organizes the Barcelona show, the number of unique mobile subscribers worldwide now stands at 3.66bn, up 5.38%on the year thanks entirely to continued growth in developing markets. Mobile industry revenue over the past year grew by a relatively modest 3.75%to $1,130bn. Most significantly however, average revenue per subscriber declined by just under 4 per cent to $12.15.
Need For Mobile Devise presence
All the growth, expansion and eventual profit have been clustering around mobile devices for a while now, and having some control over them and what software they run is fundamental to ensuring your ecosystem continues to flourish
Energy management – Google Nest
Automatically update its cars’ infotainment systems by using cloud service
The system will automatically update anytime the car connects to a wifi network
Hybrid cloud which combines the features of a public and private cloud system
Customer-sensitive data, such as the owner's name and address, the vehicle's mileage, its location and how well it's running, will be stored on a private, on-premise cloud network that was built by Ford's IT department.
For the public cloud, Ford is using Microsoft Azure, which the company uses for software updates.
Ford is using cloud computing, data analytics and in-car software to change the consumer experience. Now a car's navigation, entertainment and communication systems will be refreshable. Previously, Ford's infotainment system could be updated -- but only by bringing the vehicle into a dealership or via a USB stick.
All be up updated through the cloud base
Over the past year Microsoft has made a series of acquisitions and partnerships: , Skype, Yammer, Accompli, Mojang to name a few. However, they have lacked a coherent ecosystem from which to create a unified experience. The cloud offers an opportunity to create that experience by offering a central platform from which to create a coherent ecosystem.
The cloud offers an opportunity to create that experience by offering a central platform from which to create a coherent ecosystem.
Lets not try and be someone we aren’t. Microsoft is a software company first and foremost and that should be our focus in terms of the cloud.
Microsoft’s development teams should keep pumping out their own first-party apps, ensuring that they tie into other apps and OS seamlessly and synergistically
Provides Microsoft an asset and community that could cultivate a younger demographic (Ex. Mojang)
Microsoft Office applications; make them and a thousand more available on every device powered by Microsoft's cloud infrastructure
Mojang gives Microsoft an asset and community that could cultivate a younger demographic. If you've ever seen an elementary school kid go into a Minecraft coma you know the power that Mojang has. To younger customers, Microsoft's core brand is really Xbox. If Microsoft is going to have an installed base to up sell as these customers move to smartphones to tablets to PCs to enterprise applications and cloud Minecraft is a good place to start.
Lots of industries still happily use Microsoft Office applications, and Nadella wants to make those applications and a thousand more available on every device from tablets to conference rooms to phones, powered by Microsoft's cloud infrastructure
Netflix is bigger than Bing and all of the components of Microsoft's online services. More than doubling its revenue and improving margins doesn't sound so bad. Even if Netflix would get lumped into Microsoft's Xbox-centric entertainment division, it would still be a win for another pocket of crummy margins.
CEO Reed Hastings — a former Microsoft board member
Social media has become one of the most important aspects of the Internet and of technology
LinkedIn has a market cap of about $25 billion and has proven it is able to monetize its social-media platform.
Build out special LinkedIn offerings on Microsoft devices.
CEO Satya Nadella's whole plan is to re-shape the company around "productivity" and "the cloud."
Microsoft gets access to its data, and doesn’t have to pay a meaningful price for it.
A stake in social media firm would enable the software giant to play a vital role in social media and mobile, wherein it was lagging behind its rivals including Apple.
Mobile devices will provide context, such as location and sensor data, that can be analyzed and fed back into your system. Nadella referred to this as Ambient Intelligence. This new context must be stored, analyzed and put to use within a business. It’s the concept of taking big data and making it actionable
Xbox Music, Microsoft's still-fumbling foray into the online music genre
Xbox has made major inroads in international distribution, a learning experience that would suit Pandora well
Pandora is the kind of business Microsoft could swallow relatively easily, immediately vaulting it to a market leader in digital music
Letting Microsoft products continue across platform and bring the unified experience.
In order for Microsoft, to remain competitive: they need make in roads into the cloud security market which is an emerging market and one we believe Microsoft can be successful in.
Information is becoming more fluid and efficient, Microsoft needs to be on the cutting edge with more investments in Mobile Cloud Computing.
Finally if Microsoft hope to stay competitive it needs to build an ecosystem from which to upsell its products.
If Microsoft can accomplish these goals, they will remain competitive and there future will be bright.