Technology Outsourcing with Cloud Computing. Understanding the Opportunity
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- Erica Poole
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1 Technology Outsourcing with Cloud Computing Understanding the Opportunity
2 Cloud Basics Cloud Benefits Summary Q&A Agenda
3 CLOUD BASICS
4 What is the cloud?
5 Software As a Service
6 Infrastructure As a Service (IaaS)
7 Colocation Facility - Hosting
8
9
10 ANYTIME
11 ANYTIME ANYWHERE
12 ANYTIME ANYWHERE ANY DEVICE
13 Cloud Computing for Financial Institutions
14 Easily Connect to Your Core Processor
15 We fear things in proportion to our ignorance of them. Christian Nestell Bovee
16 The Evolution Electric Utility Compute Utility
17 About 60% of credit unions indicate that their budgeted IT expenditures for 2013 outpace their 2012 expenditures to some extent, with 17% budgeting doubledigit increases. CUNA
18 Gartner estimates that worldwide cloud services revenue will reach $149 billion by Gartner Gartner
19 A survey of IT executives at tier one banks shows 83% of banks see cloud as their first priority. Documentmanagementnews.com
20 CLOUD BENEFITS
21 Cost Reduction
22 Client / Server model doesn t make sense Processors Under Utilized IT Costs increase 10%/year Hardware refreshes are costly Increased capacity needs requires CapX purchases Licensing Unused equipment depreciates without providing value
23 Why Guess What Your IT Spend Will Be? With Cloud Computing Only pay for what you use Cost predictability (FTE pricing)
24 Cost Benefits of the Cloud Companies who witnessed lower operating costs after adopting CLOUD
25 Scalability / Flexibility
26 Mergers & Acquisitions
27 Expanding New Branch? New Employees? No Problem!
28 Ease of Management Adding users Removing users Publishing applications Changing permissions Auditing
29 Easily Support Remote Users Travelers Telecommuters Illness Maternity
30 Easily Support BYOD Work from smart phones Access to apps from an ipad Access to data from a tablet It doesn t matter who owns the asset
31 Performance
32 48% 58% 26% 56% 29% 53% Peak Bandwidth Utilization: 60% of capacity Stability & Performance: Good Apps in C 3 : 280 (as of 8/1) Projected Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Plan Active (Billed + Compushare) C3 Capacity (Not concurrent) Concurrent Users
33 BCP/DR
34 Secondary site not geographically safe Data is not readily accessible Hardware not available post disaster DR inferior to a datacenter
35 When considering outsourcing to a cloudcomputing service provider, financial institutions need to determine whether the servicer and the network carriers have adequate plans and resources to ensure the financial institution s continuity of operations, as well as its ability to recover and resume operations if an unexpected disruption occurs. FFIEC
36 Cloud Increases HA & DR Redundant Internet with BGP Redundant Network Fabric Redundant Storage Redundant Hardware Redundant Power Redundant UPSs Redundant Generators Local Data Archive Remote Data Archive (stored in 2 datacenters) Onsite Fuel Alternate DC for Disaster Recovery
37 Security
38 Physical Security Physically Secure Site Biometrics Man Traps Authentication Badge Access Room Locks Cage Locks Cabinet Locks
39 Redundant Firewalls Information Security Redundant Intrusion Detection and Prevention Patch Management Anti-Virus & Malware Protection Vulnerability Management 24x7 Monitoring Change Control Management Encryption Key Management
40 Information Security In reality, cloud security is far superior to traditional client server environments
41 Data Segregation Separate VLANs Separate Application servers Separate Database servers Separate Backend servers Separate File servers Separate 3 rd party connections and equipment Separate configurations (i.e. WCF)
42 Compliance
43
44 Risk & Compliance in the Cloud The fundamentals of risk and risk management defined in the IT Handbook apply to cloud computing as they do to other forms of outsourcing.
45 Risk & Compliance in the Cloud Examiners warn that organizations may need to revise their information security policies, standards, and practices to incorporate the activities related to cloud computing service providers.
46 Create a Cloud Migration Strategy Plan Wait 6 Months Adopt Cloud No Yes Business Benefits
47 Fears I will have no control over my applications I will have no control over the security My role will be downgraded My staff will be decreased How do I fit in a world of Cloud How can I still offer value to my organization
48 Questions
49 Thank You Kevin Prince Chief Technology Officer
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