introduction to cloud computing for executives
DESCRIPTION
Overview of the concepts, business and technology behind cloud computing. Delivered to a monthly meeting of the Greater Philadelphia Senior Executive Group (GPSEG).TRANSCRIPT
Cloud Computing
GPSEG, New Jersey ChapterFriday, March 25, 2011
Chris Larsen, PMPIT Evolution, Inc.
• Philadelphia-area IT management consulting practice
• Business and technology alignment• Strategic and operational guidance
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Cloud
Network
Storage
Computation
Cloud
VirtualizationComputation
Pauline, CEO
Pauline has a great new idea…
Capability
Infrastructure
Technology
Resources
1 2 3
Time
Anticipated Peak Demand
Infrastructure
Technology
Resources
1 2 3
TimeInfrastructure
Capacity to Meet Peak Demand
Technology
Resources
1 2 3
Time
Capacity
Infrastructure
Actual Demand
Overprovisioning
Technology
Resources
1 2 3
Time
Capacity
Demand
Infrastructure
Underprovisioning
Risk: spend too much
Risk: spend too little
Infrastructure
Pay as you go No rent or own
Rapid setup Weeks, not years
Demand-driven capacity Scalable bandwidth, storage, computing cycles
No capital equipment Buying a service, not a server
Flexibility Short term vs. long term
Easier, better data protection Backup, disaster recovery, security
Transfer of risk of misestimating It’s theirs, not hers
Lower development costs Quick deployment of dev and test environments
Infrastructure
Hardware cost Per user cost
0 5 10 15 20 25 0 5 10 15 20 25
Traditional Computing Cloud Computing
Cost
of O
wne
rshi
p
Cost
of O
wne
rshi
p
CapEx OpExbecome
s
Infrastructure
You build and maintain server from scratch or use packaged
server
You build and maintain server, but can use any
of variety of Microsoft tools
You build capability
within their controlled
environment
Low-level
“clean slate”
Mid-level
Mixed services,
Custom and packaged
High-level
Their platform,on their terms
Infrastructure
Public Cloud
Works best for:• Seasonal• Event-based• Unknown• Predictable or
unpredictable bursts
Private Cloud
Works best for:• Static, predictable demand• Microsecond precision of
data movement (e.g., stock trading)
Capability
Infrastructure
Capability
Custom data processing• Data collection, transformation, integration• Number-crunching• Content management
Standard collaboration and business apps• E-mail• Text docs, spreadsheets, slide decks, etc.• Sales automation and contact management• Software as a Service (SaaS)
System Development• Easily deployed
development environments• Simulations for testing
• Vendor lock-in, data lock-in, "single-link-in-the-chain" vulnerability
• Security, confidentiality, compliance, auditability• Data storage location (domestic, foreign)• Migrating to the cloud• Difficulty of extracting data from the cloud• Reputation fate sharing• Business continuity, availability• Commercial software licensing• Monitoring and management
Pauline worries about other perils…
Risk vs. Reward
Should you consider the cloud?
Is your technology infrastructure keeping pace with your business growth (or shrinkage)? (Do you know?)
How well is your business adapting to extreme peaks or valleys of customer demand?
How well is your infrastructure meeting the demands of its business users for certain performance levels? (Do you know?)
How satisfied are you with your time-to-market for new business offerings?
Does your organization need to quickly enable a new internal capability?
Do you need to reduce costs to become more competitive? Which costs? Are they CapEx or OpEx?
If these are in your current strategy…
Reduce costs Increase agility, adaptability, reliability Reduce business continuity risk Sharpen focus on business
…you should check out the cloud.