business perspectives on cloud computing
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Digital Trends 2011, Athens, Greece. Green ICT and Cloud ComputingTRANSCRIPT
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30/11/2011 1John Rhoton – Digital Trends 2011
Business Perspectives on Cloud Computing
John Rhoton
Digital Trends 2011, AthensGreen ICT and Cloud Computing
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30/11/2011 2John Rhoton – Digital Trends 2011
Agenda
• Assessment– Financial, Risk, Strategic
• Adoption• Challenges• Guidance
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30/11/2011 3John Rhoton – Digital Trends 2011
Business Perspective on Definition
• Cost reduction– Virtualization, Multi-tenancy, Automation, ...
• Business flexibility– On-demand, Utility-pricing, Elasticity, ...
• Focus on core competency– Internet delivery, Off-premise execution,
Outsourced operation, ...
Cloud Computing is a set of technologies that help to achieve three business objectives:
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30/11/2011 4John Rhoton – Digital Trends 2011
The right conditions can create market disruption for evolutionary improvements.
Two views of technology evolution
No pivotal innovation
THEN
• Application Service Provider • Web Hosting Service• Managed Hosting Service NOW
• Software-as-a-Service• Platform-as-a-Service• Infrastructure-as-a-Service
Multi-tenancy. Virtualization. Utility billing. These aren’t new – just a gradual evolution.
vs. Very disruptive impact
Improved functionality
Economy of Scale
Increased Adoption
Competitive Price
Accelerated development
Network effects
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30/11/2011 5John Rhoton – Digital Trends 2011
Financial Assessment
• Software• Hardware• Facilities• Operations
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30/11/2011 6John Rhoton – Digital Trends 2011
Risk Assessment
• Data leakage• Data loss• Service loss• Compliance• Lock-in
• Rogue clouds– Employee
dissatisfaction– Unmanaged
applications– Insecure data
• Competitive disadvantage
• Internal risks
Many organizations greatly underestimate the capability and motivation of the cloud providers to address these risks.They also overestimate their own ability to eliminate these risks from internal implementations.
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30/11/2011 7John Rhoton – Digital Trends 2011
Strategic Assessment
• IT Support– Intellectual Property– Knowledge Management– Service Delivery
• Agile Enterprise– Core competency– Modular services– Ecosystem
O u t s o u r c i n g
M e r g e r s
J o i n t V e n t u r e s
H o r i z o n t a l I n t e g r a t i o n
V e r t i c a l I n t e g r a t i o n
N e w P r o d u c t s
N e w M a r k e t s
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30/11/2011 8John Rhoton – Digital Trends 2011
Private to hybrid evolution
• Resource Efficiencies• Operational Efficiencies• Sourcing Efficiencies
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30/11/2011 9John Rhoton – Digital Trends 2011
Candidate applications
Low risk, high return• Test and Development• Externalised applications– Isolate threats, malware
• Redundancy– Geographical– Organizational– Technological
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30/11/2011 10John Rhoton – Digital Trends 2011
Design challenges
• Integration• User management• Reliability• Governance / SLAs• Security
The most common cause of failure is underestimating these challenges
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30/11/2011 11John Rhoton – Digital Trends 2011
Concerns and risk mitigation
Risk MitigationData leakage
Encryption
Data loss Multi-source, backupVendorlock-in
Standards, multi-source, backup, exit strategy
Service loss SLA, audit, certifications
Compliance SLA, audit, certifications
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30/11/2011 12John Rhoton – Digital Trends 2011
New trust basis
• Personal observation• Personal experience• Human Insight
Employees Contractors
Partners Suppliers
• Public verification• Contracts• Compensation Experts
Legal Counsel
AuditorsPublic Scrutiny
Physical SegmentationAccess controls
Virtual SegmentationEncryptionAccess controls
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30/11/2011 13John Rhoton – Digital Trends 2011
Words of Advice
• Start early• Engage everyone– Users, HR, Legal, Procurement,…
• Be skeptical of the skeptics• Find Quick wins– Cheap, low-risk
• Prepare for the long term
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30/11/2011 14John Rhoton – Digital Trends 2011
Summary
• Assess cloud computing from financial, risk and strategic perspectives
• Be prepared for disruption– Requires new trust strategy
• Don’t underestimate the challenges• Accept the inevitable
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30/11/2011 15John Rhoton – Digital Trends 2011
John Rhoton
[email protected], [email protected]/profile/John_Rhotonlinkedin.com/in/rhotonamazon.com/John-Rhoton/e/B001K8TFW0slideshare.net/rhoton
Thank you!