The Cloud Computing

Tomislav Milinovic

NOT IF, BUT WHEN

If you scoff at the idea of a private cloud, you're in peril, but public clouds will drive a lot of solutions, so don't be too cocky if you're a private-cloud evangelist. Virtually every customer, at least from the midmarket up, will have a mix of both. IDC is expecting significant growth in public cloud services over the next few years.Revenue from IT cloud services exceeded US$16 billion in 2009 and should reach $55.5 billion in 2014, the research group said.

Frank Gens, an IDC chief analyst

Use of cloud computing, public or private, can enable greater innovation through collaboration, rapid deployment and lower costs. This can enable greater levels of “experimentation” with new ideas. In addition, many future innovations will integrate innovative application and information services from others (suppliers, third parties, customers, business partners and government) that, in turn, may be built as cloud-based services.

IBM Perspective on Cloud Computing

The Cloud

• FOR EXAMPLE, Oracle 11gR2 now offers backup to Amazon S3, an internet-based storage service, with the Oracle Secure Backup (OSB) Cloud Module.

• Why would anyone want Office (or other applications such as e-mail) as a service ?

The Cloud model promises a predictable per-user, per-month fee

Significantly lowers up-front capital expensesWith the public cloud, the customer owns no storage or server and has no capital expenditures

allows companies to only pay for what they actually use

operational expenses can be scaled as needed lowers the overall costs Due to economies of scale and

the harnessing of expertise provided by specialists

Key Benefits Offered by Cloud Computing

Voice of the cUstomersTHINKstrategies and Cutter Consortium teamed up to conduct a series of annual customer surveys over the past fIVE years aimed at gauging SaaS acceptance, adoption, and satisfaction.

• 32% adoption of SaaS in 2007.• 63% adoption of SaaS in 2008.

– 97% satisfied with their software Solutions– 30% said the greatest benefit was lowering their infrastructure costs – 17% said they were able to obtain greater functional capabilities.– 30% said their providers improved app reliability and performance– 10% were happiest with the systematic software updates and upgrades

Amazon Simple Storage Service (S3)

• Write, read, and delete objects containing from 1 byte to 5 gigabytes of data each. The number of objects you can store is unlimited.

• Each object is stored in a bucket and retrieved via a unique, developer-assigned key.

• A bucket can be stored in one of several Regions. You can choose a Region to optimize for latency, minimize costs, or address regulatory requirements. Amazon S3 is currently available in the US Standard, EU (Ireland), US West (Northern California) and Asia Pacific (Singapore) Regions. The US Standard Region automatically routes requests to facilities in Northern Virginia or the Pacific Northwest using network maps.

• Objects stored in a Region never leave the Region unless you transfer them out. For example, objects stored in the EU (Ireland) Region never leave the EU.

HOSTED ERPYOU CAN now get Microsoft Dynamics as a hosted enterprise resource planning solution online for a low monthly cost.YOU CAN...• Minimize your initial investment

With an online solution you do not need to purchase additional hardware or the entire software package up front, lowering your starting costs.

• Get up & running quicklyGet your business on track faster. Online solutions generally offer faster deployment options when compared with on premise solutions.

• Manage your cash flow with low monthly feesJust like leasing a car, you can implement a robust financial accounting solution that will support your business as it grows with a low monthly fee.

• Reduce dependence on internal IT resourcesIf your organization has limited technology resources available to implement, manage and maintain an ERP solution, an online software as a service offering might be right for you.

• Make changes on demandAdd or remove users as your business needs change, receive product upgrades efficiently and effectively, and be assured that your technology environment is up and running.

cloud-based clinical decision support system

• IBM sees the healthcare market as a key business opportunity, with the overall health IT market estimated at around $20 billion.

• IBM and health-insurance giant Aetna Inc. introduced a cloud-computing offering that analyzes patient data stored in electronic medical records (EMRs) and administrative data systems and sends updates on treatment progress, drug interactions and best practices to physicians.

• one of IBM's first software-as-a-service industry solutions as part of Blue Cloud initiative.

• The service is priced UNDER $1,000 per doctor with multiple price points depending on the modules used.

IBM Press Release (Aug. 5, 2010)

Cloud Computing payback

2009 Cloud Computing ROI study conducted by IBM Research

The size of the environment is based on the number of servers before consolidation

– small environments ( 5 to 15 servers)– medium environments( 16 to 400 servers)– large environments (over 400 servers)

Hw/Sw paybackThe typical server in a datacenter is running a single application and is being utilized on average from 5% to 25%

Increased software costs in a cloud environment are the cost of the virtualization software and the service management software

• physical server depreciation• facilities costs (energy and floor space)

Provisioning/Productivity PaybackThe key savings metric for automated provisioning is the amount of time saved in deploying new systems which can translate into large cost savings.

Tivoli Provisioning Manager

The key savings metric for productivitypayback is the amount of time a requesterwastes waiting for the resources they needto do their work (e.g. developer requesting a new dev/test environment).

System Administration PaybackVirtual systems are more complex to administer and this can lead to higher administrative costs. With the proper service management tools for a highly virtualized environment, the administration savings can range from 36% to 45%.

The US Federal Government• Largest IT budget of any organization

~ 80 billion in 2010

• ADOPTING A CLOUD FIRST APPROACH towards procuringnew and replacement systems

• Shifting public data to an external cloud

• National Institute of Standards and Technology is developing baseline security standards for federal IT projects using cloud-computing technologies

• The General Services Administration, the agency that oversees Apps.gov and houses the Federal Cloud Computing Program Management Office, is also working to streamline the integration of private could technologies into government IT

• GSA developed an interagency initiative dubbed the Federal Risk Authorization Management Program (FedRAMP), which provides joint security authorizations for cloud-computing technologies.

• Initiatives for reforms to laws such as a 1986 statute that sets a looser privacy safeguard for information stored remotely on a company's servers than for files locked inside a PC or an on-site data center.

EUCommission Decision C(2004)5271Commission approves new standard clauses for data transfers to non-EU countries (7.1.2005)

COMMISSION DECISION of 27 December 2004 amending Decision 2001/497/EC as regards the introduction of an alternative set of standard ontractual clauses for the transfer of personal data to third countries

Since the use of standard contractual clauses for international data transfers is voluntary as standard contractual clauses are only one of several possibilities under Directive 95/46/EC, for lawfully transferring personal data to a third country, data exporters in the Community and data importers in third countries should be free to choose any of the sets of standard contractual clauses, or to choose some other legal basis for data transfer. As each set as a whole forms a model, data exporters should not, however, be allowed to amend these sets or totally or partially merge them in any manner.

Brussels, 5 February 2010Safer standards for European citizens' data transfers to processors in third countries The European Commission has adopted today a Decision updating the standard contractual clauses for the transfer of personal data to processors established in non-EU countries. The Decision modifies current standard contractual clauses to take account of the expansion of processing activities and new business models for international processing of personal data. It contains specific provision to allow, under certain conditions, the outsourcing of processing activities to sub-processors, while ensuring a constant protection of personal data.

Vice-President Jacques Barrot said "This updated version of the standard contractual clauses takes account of new business models and the growing trends to global processing and outsourcing. The updated standard contractual clauses ensure a balance between global business needs and protection of EU citizens' personal data".

THE COLLABORATIONChallenge: Misaligned Culture

– lack of executive sponsorship

– lack of sharing/co-operative culture, and generally misaligned incentives (i.e., individual achievements encouraged at the expense of team success).

success requires addressing these cultural issues in addition to any attendant process / technology issues.

THE COLLABORATION WARScollaboration is the true value in the marriage between cloud computing and office productivity applications. Both Microsoft and Google agree that collaboration is the cornerstone of 2010.

Chris Vander Mey, senior product manager of Google Apps for Enterprise

• running the Office Web Apps requires a service provider.For internal cloud they require a SharePoint 2010 server to host the apps.

CLOUD OFFERING could be a key differentiation between ETK and other competitors.

• Google acquireD DocVerse earlier this year. collaboration within MS Office desktop applications. OFFERS more collaboration capabilities from Office 2007, or even Office 2003, than Office 2010 offers. COULD BE A GOOD OPTION.

It’s good to see innovation in Microsoft Office again - even if it’s happening outside of Redmond

• The Forrester Wave Collaboration Platforms, Q3 2009 Central Desktop is the only pure SaaS offering with a focus on small and medium businesses, as well as enterprise departments.

• Central Desktop for Office is powered by OffiSync technology and is compatible with Microsoft Office 2003, 2007 and 2010 (the same functionality that users can obtain with SharePoint/Office 2010, but it’s available for all versions of Office back to 2003).

• Founded in 2005, Central Desktop is a privately-held company with headquarters in Pasadena, California.

• No. 180 on the Inc. 500 List of America's Fastest-Growing Private Companies in 2010

• Used by over 200,000 people

• Central Desktop partners with leading data centers Alchemy Communications and Latisys that have completed the SAS70 Type II SECURITY audit AND HAVE the 100 % uptime SLA achieved

• On average, organizations using Central Desktop have realized a 30% increase in productivity while decreasing their total cost of doing business

• Enterprise customers include: Ramada, Johnson Controls, Oracle, JD Power, Amtrak, CBS, Toshiba, Nielsen, Reuters, JP Morgan Chase, Washington Mutual, Adobe, Allied Barton, U.S Food and Drug Administration, McKinsey and Company, U.S. Department of Health & Human Services, Avid Technology, Omniture, Gymboree, NHS (NATIONAL HEALTH SECURITY) London

Central desktop

SECURITY• In many cases, data at most companies are more at risk in their own

environment than in a well-managed cloud.

• FOR companies that can’t use a public cloud for security or regulatory reasons, IBM demonstrated a system that moves application processing to a public cloud facility, while keeping all data stored within the private cloud.

• Central desktop security– Enhanced Password Administration– TLS Email Encryption (SSL for Email)– Control Access by IP Address/Range (Trusted IPs)– Customized Terms of Service / Privacy Policy Agreements

• ETK proposes additional Protecting of the digital content by using Information Rights Management

• document is in the cloud only during the collaboration, while the final document will be stored only locally (wiping it from the cloud).

Pricing for Central Desktop

Workgroup Edition Enterprise

Edition

Community Edition

Team Plan Free

Team Plan 1

Team Plan 2

Company Plan 3

Price Per Month* Free $25/mth $49/mth $99/mth $10/mth/user $3/mth/user

Number of Workspaces 2 3 10 25 Unlimited 25

Number of Members 5 per Workspace

10 per Workspace

15 per Workspace

25 Internal PLUS

10 per Workspace

50 min 100 min

Total Storage 25 MB 500 MB 1 GB 5 GB 25 GB+ 5 GB+

Max Upload (per Batch) 25 MB 250 MB 250 MB 400 MB 800 MB+ 800 MB+

Audio Conferencing Yes Yes Yes Yes Yes Yes

SSL (256bit encryption) Yes Yes Yes Yes Yes Yes

Custom Domain & Branding - - - Yes Yes Yes

Tagging - - - Yes Yes Yes

API Access - - - Standard Enhanced Standard

Workflow Engine - - - - Yes -

Web Folders

- - - Read Only Yes Read Only

Security Pack - - - - Yes Yes

Salesforce.com Integration - - - - Yes -

LDAP / SSO - - - - Available -

Service Level Agreement - - - - Yes Yes

Offsite Backups - - - - Yes Yes

Support Email & Forum

Email & Forum

Email & Forum

+ Phone Dedicated Rep

Dedicated Rep

Web Meetings 15 Attendees / 1 Concurrent

$35/mth

Additional

15 Attendees / 1 Concurrent

$35/mth

Additional

15 Attendees / 1 Concurrent

$35/mth

Additional

15 Attendees / 2 Concurrent

$70/mth

Additional

Available Call Available Call

*Non-Profit / Academic Pricing Available or call 866-900-7646

Enterprise Plans Available For More than 25 Users Workflow Engine Enterprise Grade Security LDAP/Active Directory Integration

Speak with a Representative at 866-900-7646 or click here to have someone call you back.

Proposed InnovationCombination of robust BPM solutions with innovative collaborative application located in the cloud.

Integration with FileNet BPM• The document's content data can be external to an object store.

External File option allows you to specify a URL path to a filethat resides outside your Workplace environment.

• The URL is reached from the Central Desktop toolbar

Adding a document in FileNetManual• We paste that URL as External File option

Automatic• By sending an eMail to the system account• Requires custom application for eMail reading,

parsing and inserting link in FileNet

Working with documentAfter document creation, it can be visible (if IRM allows it) and can be a part of any workflow.

When we click on the document title, the browser opens the page from which we can work with actual document.

Resources for test & implementation

• 3 man/ 2 weeks• No additional architectural changes

NO DILBERT’S APPROACH: