Cloud Business Value

Francis Magann – Senior Customer Solutions Architect20th April 2011

24% Experienced

Cost Savings

Cloud is real

1

Some as

High as 40%

71% met or

exceeded

expectations

Source: Vanson Bourne, commissioned by Fujitsu

73% use

private clouds

Community cloud:

pay-as-you-go &

zero operational risk

Cloud Business ValueShaping the Cloud to Ensure Business Value

Francis Magann – Senior Customer Solutions Architect20th April 2011

33 Copyright 2009 FUJITSU LIMITED3

Fujitsu at a Glance

3

Established: 1935

Headquarters: Tokyo, Japan

R&D spend: US$ 2.6 billion Fujitsu Headquarters

Tokyo, Japan

*Fujitsu Group (excluding FSC) consolidated figures for fiscal year ended March 31, 2009. US$ 1 = ¥98, ¥1 =€162.

175,000 employees

70 country operations

Stock exchanges: Tokyo,

London, Frankfurt, Zurich

Fujitsu Locally

4

Regina Moran,

MD Fujitsu (Ireland)

A strong, autonomous,

local management ethos …

...all backed up by our global organisation.

local data centers

IaaS platform

Windows Azure

Software as a Service

cloud consulting

cloud application migration & development

cloud application management

providing the assurance of local accountability and responsiveness

Data Centre

Fujitsu Labs

Challenges

5

Increasing demand on IT

Reducing IT budgets

Cloud Services – A Silver Bullet?

Pay per use

Elastic &

Scalable

Opex vs.

Capex

Configure

not build

Auto

provision

6

On demand

Cloud Services

Applications

Data

Runtime

Middleware

O/S

Virtualization

Servers

Storage

Network

Infrastructure(as a Service)

Applications

Data

Runtime

Middleware

O/S

Virtualization

Servers

Storage

Network

Platform(as a Service)

Applications

Data

Runtime

Middleware

O/S

Virtualization

Servers

Storage

Network

Software(as a Service)

7

Process Process ProcessMan

ag

ed

by

Co

ns

um

er

Ma

na

ged

by C

on

su

me

rM

an

ag

ed

by S

erv

ice

Ma

na

ged

by S

erv

ice

Man

ag

ed

by S

erv

ice

8

Type Technology

Model

Cost

Model

Traditional

Data Centre

Private

Internal Cloud

Private

Trusted Cloud

Public

External Cloud

Customer-owned and dedicated IT

delivered on or off customer

premise

Customer-owned IT or

provided as an ITO service

Cloud Types

Customer-owned and dedicated IT

run as a pooled resource and sold

to customer departments (can also

be operated as an ITO in a

providers Data Centre).

Customer-owned IT or

provided as ITO with

scalability options at an

agreed price.

Run on a shared platform but for

trusted use at an identifiable

location.

Pay-per-use scalability

confined to agreements and

a minimum charge term.

Shared and highly scalable platform

(possibly with location unspecified).

Pay-per-use per hour and

rapidly scalable on demand.

Enterprise Cloud

Software as a Service

Leg

acy

Business & Enterprise

Applications

Public

External

Cloud

Private

Trusted

Cloud

Private

Internal

Cloud

Traditional

Data

Centre

Platform as a Service

Infrastructure as a Service

9

Types of Business Processes

10

Activities which

create sustainable

differentiation and

competitive

advantage

Build

Types of Business Processes

ContextCore

Activities that do

not differentiate

the company from

the customers'

viewpoint

Buy

11

Applications into the Cloud

Software as a Service

Leg

acy

Business & Enterprise

Applications

Public

External

Cloud

Private

Trusted

Cloud

Private

Internal

Cloud

Traditional

Data

Centre

Packaged

Applications

on IaaS

Core

Business

Apps on

PaaS

SaaS for

Context

Apps

End-to-End Managed Portfolio

Shared

Services

for Context

Platform as a Service

Infrastructure as a Service

Migrate

Legacy onto

IaaS

12

13

Route Cost

Improvement

Agility

Improvement

Risk

Migrate legacy to

IaaS Platform

Investment

Implement packaged

applications on IaaS

Develop “Core”

applications on PaaS

Consume “Context” as

shared services

Exploit SaaS to deliver

“Context”

High

Medium

Medium

High

High

Low

Medium

Medium

Medium

High

Low

Low

Medium

Medium

High

High - Medium

High - Medium

High - Low

Low

Low

Balancing the Options

Ideal Applications for Cloud

14

New ventures

(Online commerce,

Social, Communities &

gaming)

Data collection &

analytics

Context vs. core

Storage

Lifecycle

Seasonal peaks

Architectural Patterns

15

All-in Cloud

On-premises

plus in-cloud

Business migration

Presentation veneer

Data split

Service Oriented

Architecture (SOA)Timeline splitting

(Dev, Test & Prod...)

16

Advice on Putting Apps in the Cloud

Don’t:Simply say no to the Cloud –

there are real benefits.

Start with a major transformation

into the Cloud.

Forget the basics because Cloud

looks like it might rescue your

budget,

adopting a Public Cloud is still a

form of outsourcing.

adopting a Private Cloud is an

IT transformation.

17

Advice on Putting Apps in the Cloud

Do:

Choose a model that best suites your

circumstances.

Ensure that Cloud makes commercial sense –

analyse risks & benefits.

TCO is not everything – strategy with appropriate

enterprise quality principles: Security; Resilience;

Performance etc…

Take expert advice and procure Cloud services

that meet the strategy.

Take a balanced approach to risk.

Adopt an iterative approach, especially to SaaS.

Specifically address data management.

Ensure Service Management addresses end-to-

end service.

Analyse the options in a structured way -

evaluate overlaps & gaps between services.

18

Common Pitfalls

Service Lock-in: Have a clear exit strategy defined.

Ensure novation is provided for.

Data extraction strategy and understand

what is involved.

Availability and Service Continuity:

Select a provider that can deliver both

the data response times and continuous

availability needed by the business

service.

Understand providers obligations.

Responsibility for loss of data.

Have service management and

governance in place.

19

Common Pitfalls

Understand Your Data:Grade data – be clear on what data is

migrated and stored externally.

Understand dependencies.

Know where data is stored – select a

provider that can assure location.

Basics of ownership, protection,

retention etc…

Security:

What does the provider offer in terms of

compliance audits

Strategy and rights when incidents

occur

2020

get the contract right & watch the SLA!

Cloud Business Value

21

• Lower investment barriers

• Reduces timescales

• Add better business value

• Offer greater agility

• And Cloud services are available now

Cloud Can

• Understand benefits and risks

• Know Fujitsu will add real value

• Be agile in a changing market but ensure the underlying disciplines remain

• Understand Cloud is new and evolving – so assess vendor viability

But…

22 COMMERCIAL IN CONFIDENCE

Q&A

2323

get the contract right & watch the SLA!

More Information

http://www.fujitsu.com/uk/insight-opinion/offerings/cloud.html

Or

http://shrvl.com/YV46E

Seeing through the cloud of Cloud Services

Cloud: The hidden catches

The Key to Migrating Applications to the Cloud

Turning Cloud services into a business reality

24

25 COMMERCIAL IN CONFIDENCE