cloud computing overview the business and …ime1.ime.calpoly.edu/ime312/cloud.pdfcloud computing...

Cloud Computing Overview The Business and Technology Impact

October 2013

Copyright © 2011 Deloitte Development LLC. All rights reserved. 1 Cloud computing workshop

Cloud Computing offers new types of IT services and models

Service Source Vendor cloud (External)

Virtual Private Cloud

Private cloud (Internal)

Business Model

Cloud Service Subscriber

Cloud Service Provider

Service Type

Business-as-a-Service

Software-as-a-Service

Platform-as-a-Service

Infrastructure-as-a-Service

“Location independent resource pooling”

“Rapid elasticity” “Pay per use”

“Ubiquitous network access”

“On-demand self-service”

Reduce capital spending

Focus on Core Competency

Increase Agility


• Cloud computing gives users on-demand access to large scale, elastic, shared computing capabilities

• Cloud Computing is a disruptive technology comparable to client/server architectures 25 years ago

• Cloud computing allows businesses to deploy new competitive weapon in the marketplace

• IT product suppliers business models are disrupted as customers move to cloud subscription services

Cloud Computing is transforming and disrupting the Information Technology industry


Cloud Computing patterns of industry disruption

Address users unmet needs

Disruption of IT industry

Disruption of other industries

New delivery models


Cloud Computing service types and key vendor positioning

Software-as-a-Service

(SaaS)

Platform-as-a-Service

(PaaS)

Infrastructure-as-a-Service

(IaaS)

Applications delivered as s subscription service, for both

consumers and business

Platforms and tools for development, testing,

deployment, delivered as a subscription service

Virtualized infrastructure (Database, CPUs, network,

storage) delivered as services

NetSuite

Workday

Salesforce

Box, DropBox

Taleo, RightNow

Google

Microsoft Azure

Force.com

AT&T

EngineYard

Amazon Web Services

Eucalyptus

GoGrid

Verizon

Rackspace


Software-as-a-Service (SaaS)

Customers run finished applications from the cloud service provider on a subscription basis

Platform-as-a-Service (PaaS)

Customers load and run software on cloud platforms through a subscription service

Infrastructure-as-a-Service (IaaS)

Customers provision servers, storage, and database services on cloud infrastructure

Cloud Computing subscription service types


Vendor cloud Cloud computing services provided by vendors. May be multi- tenant or dedicated to a single enterprise

Private cloud Cloud computing services owned and operated on-site by a single enterprise.

Hybrid cloud A mixed environment combining vendor clouds and private clouds.

Community cloud A public or private cloud shared by an industry group, government agency, or other association.

Cloud Computing primary business models


But What Exactly is Cloud Computing, and Why is it Different?

…on-demand Provides almost immediate access to IT applications and services, platforms, or a pool of hardware resources that can be allocated and provisioned on-demand

…scalable and elastic

Provides the ability to dynamically provision and de-provision , and automatically scale capacity up or down

…pay-as-you-use

Vendor-provided cloud services are not licenses products or purchasable assets. Services are billed by user, quantity of resources consumed, or similar consumption-based metric.

Cloud is…

Cloud computing offers increased agility, faster time to market, lower capital costs, and the ability to easily scale up / down and reallocate

resources

Cloud is not… …simply

virtualization Cloud provides pooling of resources across massive infrastructure. Some services advertised as

“cloud” are just virtualization designed to support the traditional enterprise IT stack

…just applying SOA

principles

Service Oriented Architecture (SOA) is a set of design principles; cloud capabilities are most powerful when their software and services are designed from the beginning using SOA

…traditional hosting

Unlike traditional hosting cloud services do not dedicate hardware to a single customer; the advantages of agility, scalability, and cost are possible only through resource pooling


Cloud computing brings higher capacity utilization, scalability, and flexibility at each stage of increased virtualization and multi-tenancy

Traditional Architectures

Large Scale Hypervisors

Virtualized O/S

Multi-Tennant Cloud Computing

Cloud computing use a highly virtualized shared computing environment

Stages of Computing Architectures

App OS

Hardware

App OS

Hardware

Virtualization

Hardware Virtualization

Hardware

Cust A App Cust A App Cust A App Cust A App

Cust B App Cust B App Cust B App Cust B App

Cust C App Cust C App Cust C App Cust C App

Function “A”

App OS

Hardware

App OS

Hardware

App

OS

Virtualization

App

OS

App

OS

Hardware

App

OS

Virtualization

App

OS

App

OS

Hardware

VM VM VM VM

VM VM VM VM

VM VM VM VM

VM VM VM VM

App OS

Hardware

App OS

Hardware

App

OS

Virtualization

App

OS

App

OS

Hardware

App

OS

Virtualization

App

OS

App

OS

Hardware

VM VM VM VM

VM VM VM VM

VM VM VM VM

VM VM VM VM

Function “B” Function “C”

App

OS

App

OS

App

OS

App

OS

App

OS

App

OS

1

2

3

4

VM VM VM VM

VM VM VM VM

VM VM VM VM

VM VM VM VM

The evolution from traditional systems to multi-tenant cloud


Possible usage models for enterprise cloud computing

External Clouds

Data Centre

Private Cloud IaaS

Cloud Other

Clients

Vendor Data Centre

Other Clients

Data Centre Core Systems

Data Centre

Hybrid Cloud PaaS Cloud

Other Clients

Vendor Data Center

Vendor Data Center

Enterprise Data Center

Private Cloud

Other Clients

Vendor Data Center

SaaS Cloud

Enterprise Users


This could be any Cloud anywhere in the world…


Enterprises key operational and governance issues

Data Controls

Disaster Recovery

Vendor “Lock-In”

IT Operations

Security and Privacy

Audit and Assurance

Tax and Legal

IT Readiness

Who owns the data? How is it be used? Are controls in place?

How is security achieved? What is the level of privacy protection?

Are there risk management controls to applications and data?

Can you meet needs for legal compliance and tax issues?

Are backup, retention, and disaster recovery practices sufficient?

Is the vendor limiting interoperability or access to your data?

What IT services and applications are best suited for the cloud?

Are internal IT architecture and organization structures “ready”?

Alignment with Enterprise Risk and Governance strategy will help organizations address the operational hurdles to cloud adoption


The market for enterprise cloud computing is growing

Gartner • 58.6 billion worldwide market for public

cloud services (2009) • By 2014, $148.8 billion • Five-year forecast annual growth rate:

20.5% • Five-year enterprise spend: $112 billion • Largest global market: North America

(60%)

Deloitte • Major impact on enterprise strategy for − IT architecture − Sourcing − Service delivery

• Driven by need for flexibility − Services to consumers − Services to enterprises

• Cloud Computing services align to enterprise needs and risk tolerance

• Technology companies are investing heavily to establish market share

As used in this document, “Deloitte” means Deloitte & Touche LLP, a subsidiary of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.

http://www.deloitte.com/us/about


Cloud computing continues to grow faster than other IT sectors:

• Global cloud spending is forecast to grow 22% annually to US$241 billion by 2020*

• More and more organizations evaluate cloud options first before making any new IT investments

• Organizations are embracing cloud to reduce the complexity and costs of traditional IT

• Organizations are not only relying on cloud to enhance internal efficiencies, but also to target more strategic business capabilities

Cloud Market Snapshot – Enterprises moving to Cloud

*Source: IBM Institute for Business Value: The power of cloud – Driving business model innovation, 2012

“The full business potential of cloud computing has yet to be realized or even understood by most enterprise organizations”*


35%

28%

30%

25%

29%

31%

26%

27%

29%

26%

29%

22%

15%

17%

Increased collaboration with external partners

Competitive/cost advantages through vertical integration

New delivery channels/markets

New/enhanced revenue streams

Competitive differentiation through specialization

Rebalanced mix of products and services

Flexible pricing models

13%

41% 21%

28% 38%

21%

Today Three years

Piloting

Adopting

Substantially implemented

+33%

+215%

Organization’s level of Cloud Adoption

Objectives for Adopting Cloud

Source: IBM Institute for Business Value: The power of cloud – Driving business model innovation, 2012

Enterprise Plans for 2012-15: Cloud Adoption Forecasts


The Most Important Things to Know about Cloud today:

- 15 -

• Enterprises now consider cloud services to be mainstream and normal

• Cloud computing is a means to business advantage through “capabilities”, not through capacity or horizontal infrastructure services

• Cloud thinking has become embedded in business and technology strategy, and is changing assumptions on how services are delivered

• Industry sectors vary widely in their cloud adoption: very fast in technology, moderately in Financial Services, rapidly in Health Care

Planners have a reduced ability to predict the future based on the past


Supply Chain Management

Level of Adoption

Collaboration

Web Services Analytics

Data Storage

CRM

Enterprise ERP

Mobile Apps

Custom Applications

Development and Testing

“Systems of Engagement”

Valu

e of

Ado

ptio

n

Human Resources

Finance/ Accounting “Systems of Record”

Current Adoption Boundary

What is Happening Now: Enterprise Cloud Adoption Patterns


• Promote business advantage to drive cloud adoption: cloud computing is a potential strategic tool for business advantage, agility, and customer relationships

• Monitor IT supplier business models which are at risk: Anticipate potential future disruptions to both current vendors and new services suppliers

• Understand external ecosystems: Cloud computing will involve a changing set of core vendors, with an evolving ecosystem

• Recognize the wide-ranging internal changes required: current IT architectures, business processes, and personnel strategies will need to change

• Set principles and stay flexible: The market is young and fluid: establish general principles, set planning options for the near term, and stay flexible

Current Thinking for Considering Enterprise Cloud Strategy


Cloud computing is changing the IT economic model for Enterprises:

• Restructuring economics of innovation: Cloud accelerates IT innovation, reducing research and product development cycles

• Restructuring the economics of growth: Cloud computing provides much more flexible and rapid scaling capability, enabling growth

• Restructuring customer relationship economics: Companies can form deeper relationships with customers at much lower costs by leveraging cloud technologies

Examples: Facebook marketing, Twitter, Google, Dropbox, Salesforce, Workday, mobile apps, micro-apps, etc.

Deloitte Point of View: Cloud Computing is transforming IT

Cloud Computing is a disruptive technology allowing businesses to rapidly and efficiently deploy new products and services in the

marketplace


• Join us for our events on campus and find out why Deloitte Consulting is the right place to start your career!

• We are recruiting for full-time Business Technology Analysts this fall

Interested in learning more about Deloitte?

Event Location When

Cal Poly Rec Center Building 53 Room 217 October 10th , 9:30am-1:30pm

Deloitte Info Session Building 192 Room 120 October 10th, 6:00-8:00pm


• Resume drop deadline is Thursday 10/17 at 11:50 PM for the Business Technology Analyst position

• Submit your resume, cover letter and transcript to both Cal Poly’s Recruitment Site and the Deloitte website at http://careers.deloitte.com/ (under the Students section)

• You may only apply to one of our analyst programs, and you must submit your application in both places to be considered

• If you have any questions, please feel free to contact BTA Recruiter ([email protected]) with questions pertaining to the Business Technology Analyst position

How do I apply?

http://careers.deloitte.com/

mailto:[email protected]


Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting. Copyright © 2012 Deloitte Development LLC. All rights reserved. Member of Deloitte Touche Tohmatsu Limited

This publication contains general information only and is based on the experiences and research of Deloitte practitioners. Deloitte is not, by means of this publication, rendering business, financial, investment, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte, its affiliates, and related entities shall not be responsible for any loss sustained by any person who relies on this publication.

http://www.deloitte.com/about

http://www.deloitte.com/us/about


Contact Information

Chris Weitz [email protected] +1 408 315 6289 Spencer Chin [email protected] +1 415 783 4408

mailto:[email protected]

cloud computing overview the business and …ime1.ime.calpoly.edu/ime312/cloud.pdfcloud computing...

Documents