CLOUD COMPUTING PRIMER FOR EXECUTIVES
Cloud Computing Who Cares? Enables New products, services, business models (digital) Faster growth (agility) Better efficiency (not necessarily cheaper) Requires different People Processes Technologies
Cloud Computing Who Cares? Cloud is the Social Media foundation for digital business Cloud Computing platforms Mobile Data Analytics
Cloud Computing What is it? IT delivered in a new way Over the Internet Capacity provided on an as needed basis or utility Resources provided programmatically (API) Some (or all) IT systems now owned and operated by a Cloud Service Provider (CSP) Credit: flickr/jenny-pics/
Cloud Computing What is it? Users Applications Operating Systems Hardware Datacenter Applications OS Hardware Datacenter USERS Company Cloud Service Provider Company Traditional IT model Pure Cloud IT model
Types of Cloud Computing Public Cloud Unlimited number of users Share a common platform, e.g. Google, Amazon AWS, Microsoft Azure, etc. Community Cloud Limited number of users linked by special interests, i.e. government cloud Hybrid Cloud Integrated combination of private, public and/or community cloud services from different providers Private Cloud User self service, highly automated Could be on premise or hosted Used by one or more internal organizations
Types of Public Clouds SaaS Software as a Service Applications Databases Middleware Operating sys Virtualization Hardware Datacenter Users & Integration PaaS Platform as a Service Middleware Databases Virtual machines Hardware Datacenter Integration & Applications IaaS Infrastructure as a Service Virtual Machines Hardware Datacenter Applications Databases Middleware OS Service Provider Company
Is Amazon Web Services a IaaS or PaaS? The answer is yes, to both You can consume the platform offerings, or just consume the infrastructure and do the rest yourself Many combinations of service providers are possible (and common) (Example: A SaaS company using a IaaS company for their infrastructure)
Why are There so Many Flavors of Cloud? Proliferation Many application types developed over the last 50 years New business use cases drive new architectures Companies have different internal skillsets
Cloud Computing What is it NOT? Virtualization Not automated via API Managed services (hosting) Off-premise (colocation) IT Outsourcing
Cloud Value Proposition #1 Customer Intimacy Reach customers where they are, both virtual and physical Respond to customer needs in near real time Gain deeper insights into customer needs & buying behavior
Cloud Value Proposition #2 Quickly provision IT capacity for revenue growth Business Velocity New product development M&A integration Geographic expansion Efficiently test new markets, products, business models
Cloud Value Proposition #3 Long Tail Enable New Business Models Multi Sided Platforms Freemium Open
Cloud Value Proposition #4 Shift focus to developing and extending core business capabilities Gain efficiencies & move talent to value added activities Focus on the Core Manage low value tasks with automation Utilize pooled IT resources & standard services of cloud providers ACCELERATE BUSINESS GROWTH
When not to use Cloud Risk vs. Reward Purely for cost savings Mission critical legacy IT systems with: Significant migration cost/risk Limited upside for business (not strategically aligned) Everything won t go to the cloud
Business Criticality Cloud Transformation Typical Order of Execution Mail, ecommerce Collaboration & Mobile CRM Web Content Software Development & Test Business Analytics & Decision Support Disaster Recovery ERP Document Management Manufacturing Financial Reporting Research and Development Maximize ROI, minimize time to value, increase flexibility Efficiently use resources Minimize business risk Time
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