buying in the cloud
DESCRIPTION
Assuming mass adoption of Cloud ComputingTRANSCRIPT
David Dowling
April 17th, 2012
Buying in the Cloud
Assuming Mass adoption of
Cloud Computing
Facilities Management\Data Centre
Infrastructure
Middleware
Applications
Service Desk & Service Management
Functional, Security Operations
Business Processing
Customer
Shared Services
Commercial Management
Finance,
HR, Payroll Processing
Purchasing, Property/Facilities
Technical Services
Commercial and Service Management
Systems and Enterprise Architecture
Configuration Management
Reporting
Service Request Management
System Operations
Security Management
End-to-End Systems Management (ITIL)
Service Request Management
Level 1, 2, 3 Functional Support
Configuration Management
Technical Application Support
Application Defect Resolution
Reporting Development and Support
All Middleware Support
All Infrastructure Support
Facilities Management
Infrastructure\Hardware Provisioning and
Hosting
Access via
Cloud
Service Separation
Cloud
Service
Providers
Service
Brokers
A Federal Government point
of view CLOUD COMPUTING STRATEGIC DIRECTION PAPER: Opportunities and applicability for use by the Australian
Government, April 2011, Version 1.0
Procurement guidelines on
how to fund Cloud Changes to an agencies cost model can be modified by the following:
• Services and storage become available on demand without the serious financial commitments required for
infrastructure purchase and maintenance. Additionally, they are priced as a pay-as-you-go service;
• Transfer of costs
- From CAPEX to OPEX
• no need to invest in high-cost IT equipment; for example, able to test software solutions without
capital investment;
- Reduction of operating costs
• reduced energy consumption;
• less expense in managing IT systems;
• less cost and complexity in doing both routine computing tasks and computationally-intensive
problems;
• reduced associated with time delays;
• potential to reduce support and maintenance costs through transitioning legacy systems to new
systems;
• potential to reduce the demand for data centre resources; and
• potential to reduce the Government‟s carbon footprint.
Note: agencies will need to compare current costs against potential cloud expenses and consider models for
lowering total cost of ownership (TCO) to understand whether cloud services will offer any potential savings.
CLOUD COMPUTING STRATEGIC DIRECTION PAPER, Opportunities and applicability for use by the Australian Government, April
2011, Version 1.0
Decision makers are appropriately
focusing on the business model
implications of cloud computing.
Cloud computing is not just a new
technology, but a significant shift in the
consumption of IT resources and
allocation of IT funding.
INSA Cloud computing white paper, March 2012
Enter the Cloud Service
Broker Cloud service brokers that provide integration, management, security and other
services across public cloud offerings will emerge as powerful industry players by
2015.
IDC 2011 Cloud Forum - Delegate Pre-Poll, May 2011 (N=300) n = 225
Emergence of Service
Brokers
4/24/2012 7
Cloud 2015
Outsourcing 3.0 Externally sourced IT and business
services, includes Public Cloud
Enterprise IT Hybrid IT and business service
delivery using internally and
externally sourced services
Delivery based on cloud
technologies and pricing
models
Shorter term contracts
compared to traditional ITO
and BPO
Multi-level SLAs to match
business requirements
Service delivery efficiency
achieved by use of core cloud
computing elements:
virtualization, automation and
service management
Service innovation achieved
by sourcing and integration of
external cloud applications to
match opportunistic business
needs
Hybrid environment of legacy
on-premises, on-premises
cloud and outsourced services.
IT workforce must be rebalanced to manage greatly increased number of service providers
ITSM focus expanded from IT systems management to include full service lifecycle of service procurement
and business process management
Cloud Service Brokerage
Cloud service brokerage (CSB) will represent the single largest
revenue growth opportunity in cloud computing between now and
2015.
The channel has an opportunity to play a significant role in
aggregation and brokerage services, yet few have begun to invest
in becoming a CSB.
Any company that relies on the product transaction (hardware or
software) to drive attached services revenue supported by ongoing
maintenance contracts will have to rethink how and what it offers its
customers today and in two or three years.
Value contribution to service
provision will evolve
Procurement shift of risk and
service guarantees
Traditional
Procurement
Service based
Procurement
Sourcing
“Outsourced”
The Role of the Cloud
Service Broker
Who will be providing this?
By 2014, several of the leading IT vendors will have stumbled badly in the transition
to cloud, putting them at risk of acquisition or vanishing.
IDC 2011 Cloud Forum - Delegate Pre-Poll, May 2011 (N=300)
Example of the procurement
shift • The Telsyte „Australian Infrastructure and Cloud Computing Market Study 2012‟ surveyed 260 CIOs to
discover their cloud computing policies and choice of IaaS vendors.
• Two-thirds of Australian enterprises that use infrastructure-as-a-service have gone with an offshore provider
for their cloud computing.
• Overall, it found that large multinational providers like Amazon and Microsoft are making “significant
headway in the Australian business market” at the expense of local cloud service providers.
• The advent of on-demand cloud computing services had provided “a compelling option for service delivery
without the need to manage physical infrastructure.” “About 35 % of Australian enterprises are subscribing to
some type of IaaS or PaaS cloud service, with the majority of subscriptions, and data, heading to overseas
providers,” he said.
• The Telsyte research indicated that development and investment in on-premise infrastructure and private
cloud is still strong;
• Public cloud service is still seen as unreliable and potentially presenting data location restrictions. “Some
36% of organisations have no restrictions on data being sent offshore so the opportunity for global cloud
providers to compete with local operators is there… however, a significant 29% of CIOs say their [data]
cannot leave Australia,”.
IT Service Delivery 2015
“Extremely/Very Important for our IT organisation to be
involved in pre-sale/sale/purchase of
our SaaS Apps” Public Cloud
Services
On-Premises
Traditional &
Private Cloud
Services
IT departments are increasingly multi-source, hybrid organisations, taking
on the role of “services brokers”
IT departments want to manage internal and external services as a unified
portfolio: costing, service quality, utilisation, asset prioritisation
Hybrid asset management, granular service metering, and chargeback, are
critical to this new shape of IT as a service centre
“To Be” Service Management
Operating Model
Essential Guidance
Change is coming: IT and Shared Services focus is increasingly
directed toward a cloudy portfolio: vendors need to maximize their customer touchpoints, and diversify in how you monetize your applications and services – If vendors are doing this – what is your response?
IT and Shared Service buyers want the choice of public cloud modular, near-cloud application services: now is the time to figure out how to operationalize your products, before an “inflection point” pushes your customers to a competitor
The cloud applications buyer is becoming a “Service Broker” of physical/virtual applications/services: Applications vendors can gain by giving shared Service buyers new choices for integrating and managing across public, private, hybrid and legacy environments
Cloud is not a “horseless buggy”: Conventional packaged software and “Components Supply” will sustain applications and shared services community for some time but the key growth opportunities (multi-platform, Big Data, etc) are about cloud
Procurement Approach
AS-IS
AS-IS
AS-IS + service consumption
AS-IS + Service Consumption +
Service Management service
“Sourcing Outsourced”
2015
Procurement policy
transition
Technical
Requirements
Technical
Service
Requirements
Service
Lifecycle
Requirements
Business
Service
Requirements
Outsourcing, Insourciing,
Private Cloud, IAAS, SAAS
Outsourcing, Insourciing,
Private Cloud, Public and Hybrid Cloud,
PAAS, IAAS, SAAS
Outsourcing, Insourciing,
Private Cloud, Public and Hybrid Cloud,
PAAS, IAAS, SAAS, SMAAS
SMAAS, BPAAS
Traditional Operators
Traditional Operators &
Cloud Service providers
Traditional Operators &
Multiple Cloud Service providers
Traditional Operators working as or
employing Cloud Service Brokers
Convergence is upon us
• Oracle acquires Taleo
• BMC acquires Numera
• Fujitsu form alliance with Service Mesh
• Telstra launches T-Suite with
Jamcracker
• Telstra/Accenture/SAP launch initiative
• ASG group launch Oracle SAAS
offerings
• Google Apps
• Apple Icloud
• Amazon Cloud
• Cisco acquires Newscale
• Chief Service Officers are emerging
and calling the shots
• And so on ……
