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The Cloud: Today ’ s Realities and What It Means to You

The Cloud: Today ’ s Realities and What It Means to You. Jeff Kaplan Managing Director THINKstrategies, Inc. Agenda. Today ’ s Cloud Realities Redefining the Role of IT Fulfilling Your New Responsibilities Becoming Your Own Cloud Service Provider How to Measure Success

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The Cloud: Today ’ s Realities and What It Means to You

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  1. The Cloud: Today’s Realities and What It Means to You Jeff Kaplan Managing Director THINKstrategies, Inc.

  2. Agenda • Today’s Cloud Realities • Redefining the Role of IT • Fulfilling Your New Responsibilities • Becoming Your Own Cloud Service Provider • How to Measure Success • A Look Forward ©2012, THINKstrategies, Inc. www.thinkstrategies.com

  3. Why We Are Here…Technology Has Too Often Inhibited Success ©2012, THINKstrategies, Inc. www.thinkstrategies.com

  4. Deployment Challenges 31.1% SW projects cancelled before completed. 52.7% of projects cost nearly 190% of original estimates. Operational Costs Maintenance & management costs >10x original license fee. Escalating hardware & staff support costs. Over provisioning/under-utilization of SW licenses. Economic/Budgetary Pressures Need to reduce IT costs, increase business benefits. Need to increase utilization to gain greater ROI. The Shortcomings of Legacy, On-Premise Apps ©2012, THINKstrategies, Inc. www.thinkstrategies.com

  5. Today’s Perfect Storm The Economy Enabling Technologies Shifting Customer Attitudes ©2012, THINKstrategies, Inc. www.thinkstrategies.com

  6. Macro-Market Forces Driving Cloud Demand Economic Pressures Changing Workforce Dynamics Globalization & Growing Competition Key Challenges Escalating Customer Expectations ©2012, THINKstrategies, Inc. www.thinkstrategies.com

  7. BYOD & Mobility ChangingIT Acquisition Process ©2012, THINKstrategies, Inc. www.thinkstrategies.com

  8. Old, Fixed, Capital Investment Complexity, Customization Centralized, On-Premise Top-Down Procurement High TCO, Low ROI Internal Support Outsourcing Changing Customer Needs/Expectations New, • Flexible, Operating Expense • Simplicity, Utilization • Mobile, On-Demand • Bottom-Up Adoption • Rapid Time-to-Value • 3rd Party Services • Out-Tasking ©2012, THINKstrategies, Inc. www.thinkstrategies.com

  9. Market Shift to ‘Out-Tasking’ Services Cloud Computing Managed Services SaaS ©2012, THINKstrategies, Inc. www.thinkstrategies.com

  10. How SaaS and ASP/Hosting Differ Customer Application ASP/Hosting Company • Same legacy applications • Upfront perpetual license • Still inflexible architecture • Limited accessibility • Single-instance, inefficient • Little perceived economic value. ©2012, THINKstrategies, Inc. www.thinkstrategies.com

  11. Why ASPs/Simple Hosting Fails Multiple Customers ASP/Hosting Company Too Complex Not Scalable Limited Value-Add Updates/Upgrades ©2012, THINKstrategies, Inc. www.thinkstrategies.com

  12. SaaS = The Advantage of Multi-Tenancy SaaS Vendor ©2012, THINKstrategies, Inc. www.thinkstrategies.com

  13. SaaS & Social Networks Redefining Enterprise Apps ©2012, THINKstrategies, Inc. www.thinkstrategies.com

  14. Re-Thinking BI in the Cloud Source: Gartner EXP (January 2011) ©2012, THINKstrategies, Inc. www.thinkstrategies.com

  15. New BI/Analytics Challenges New Challenge: Sharing Information & Insight Globally Customers Partners Salespeople Suppliers Operations Support ©2012, THINKstrategies, Inc. www.thinkstrategies.com Old Challenge: Collecting & Analyzing Internal Data Continuously

  16. SBU 1 SBU 4 SBU 2 SBU 3 CRM/ERP IT Management Traditional Barriers to BI/Analytics Success ©2012, THINKstrategies, Inc. www.thinkstrategies.com

  17. SBU 1 SBU 4 SBU 2 SBU 3 Converting Data Into Actionable Intelligence Enterprise/IT Management Cloud Analytics ©2012, THINKstrategies, Inc. www.thinkstrategies.com

  18. Common SaaS Adoption Patterns:Front- to Back- to Inter-Office Apps Back Office Front Office Inter-Enterprise ERP Finance … Collaboration CRM/SFA … Procurement Supply-Chain … BUSINESS APPLICATIONS ©2012, THINKstrategies, Inc. www.thinkstrategies.com

  19. SaaS Expands from Business Appsto Industry Solutions Back Office Front Office Inter-Enterprise ERP Finance … Collaboration CRM/SFA … Procurement Supply-Chain … BUSINESS APPLICATIONS Manufacturing … Financial Services … Government … Vertical Market/Industry-Specific Solutions ©2012, THINKstrategies, Inc. www.thinkstrategies.com

  20. SaaS Expands from Business Apps to IT Management Back Office Front Office Inter-Enterprise ERP Finance … Collaboration CRM/SFA … Procurement Supply-Chain … BUSINESS APPLICATIONS Data Protection Storage … Security Systems Mgmt … Network Mgmt Remote Access … IT Management ©2012, THINKstrategies, Inc. www.thinkstrategies.com

  21. SaaS Success Breeding More Cloud Services Measured Service Rapid Elasticity Essential Characteristics On-Demand Self Service Broad Network Access Resource Pooling Software as a Service (SaaS) Platform as a Service (PaaS) Infrastructure as a Service (IaaS) Service Models Deployment Models Community Public Private Hybrid ©2012, THINKstrategies, Inc. www.thinkstrategies.com

  22. PaaS: Changing App Development Process App Engine ©2012, THINKstrategies, Inc. www.thinkstrategies.com

  23. Amazon Transforming Acquisition & Use of Computing Power UBS Securities predicts AWS revenues = $750M in 2011, $2.5 billion in 2014 Amazon Web Services Offering Free Usage Tier, New AWS customers can run free EC2 instance for a year. ©2012, THINKstrategies, Inc. www.thinkstrategies.com

  24. Maturing Corporate Adoption Programs Ad-hoc, Business End-User/SBU Adoption; IT Avoided. Planned Enterprise-Wide, Business-Driven Adoption; IT Involved. ©2012, THINKstrategies, Inc. www.thinkstrategies.com

  25. Evolution Of Customer Concerns Support Innovation/Competitive Advantage Governance/Compliance/Control Complexity Interoperability/Integration Security/Privacy Reliability Time ©2012, THINKstrategies, Inc. www.thinkstrategies.com

  26. Everyone’s Reality:A Hybrid World Balancing, • Multiple Development Platforms • Various Delivery Architectures • Growing Data Integration Options • New Deployment Alternatives ©2012, THINKstrategies, Inc. www.thinkstrategies.com

  27. Collaboration Communications Community Customer Experience The Added Dimension of SaaS/Cloud Computing ©2012, THINKstrategies, Inc. www.thinkstrategies.com

  28. Dynamic toolkit clearinghouse Continuous updates, new ideas Real-time, aggregated data Meaningful benchmark studies Practical best practices forums User “Club” w/special privileges. The New Level of Valuein the SaaS/Cloud Market ©2012, THINKstrategies, Inc. www.thinkstrategies.com

  29. New Deployment Models: Data Residency Option (DRO) ©2012, THINKstrategies, Inc. www.thinkstrategies.com

  30. Recent Acquisitions, New Cloud Battlegrounds ©2012, THINKstrategies, Inc. www.thinkstrategies.com

  31. Changing Channels ©2012, THINKstrategies, Inc. www.thinkstrategies.com

  32. Redefining the Role of IT Shifting from SW/System Management to Service & Vendor Management ©2012, THINKstrategies, Inc. www.thinkstrategies.com

  33. Service Transparency Key ©2012, THINKstrategies, Inc. www.thinkstrategies.com

  34. Picking the Right Path to Success Internal Private Cloud High Hybrid Cloud Services Level of Control Public Cloud Services Internal IT Low Business Benefits Limited High ©2012, THINKstrategies, Inc. www.thinkstrategies.com

  35. Cloud Deployment Alternatives Vertical Markets SMBs Enterprises Custom Complex Community Hybrid Cost Time to Value Standard Simple Public Private Service Delivery Model ©2012, THINKstrategies, Inc. www.thinkstrategies.com

  36. Succeeding in the Cloud Employ incrementally. The Five E’s of Cloud Mgmt. Evaluate various alternatives. Encourage input & ideas. Engage Executives, SBUs & End-Users. Embrace the Cloud. ©2012, THINKstrategies, Inc. www.thinkstrategies.com

  37. Automate Monitor Measure Iterate Communicate Repeat Service Management in the Cloud Continuously, ©2012, THINKstrategies, Inc. www.thinkstrategies.com

  38. Attaining Ultimate Cloud Value Gaining Competitive Advantage Customization/Innovation Higher Productivity Value Greater Functionality Quicker Time-to-Value Accelerated Deployment Reduced Costs Time ©2012, THINKstrategies, Inc. www.thinkstrategies.com

  39. Summary of Cloud Market Evolution v1.0 v2.0 • Focus on the enterprise • Scalable, secure platforms • Vertical/industry solutions • Emphasis on added functionality/ROI • Multiple configurations, greater flexibility/versatility • Greater integration capabilities • Bi-direction location independence • Industry shake-out & consolidation • Emphasis on service management • Strategic Sources Win • Focus on individual user • Standalone point apps • Horizontal applications • Emphasis on ease of use/price/TCO • One size fits all, limited customization capabilities • Limited interoperability • Cloud only, single direction • Proliferation of providers • Emphasis on solution • Best-of-Breed Win ©2012, THINKstrategies, Inc. www.thinkstrategies.com

  40. The cloud is for real & growing fast. Ad-hoc, end-user/SBU adoption everywhere. It’s time to act. Initiate trials, measure success, expand. Redefine your role & relationships. Encourage greater input and sharing Become a Cloud service provider. Evaluate, recommend, aggregate and manage. Create new forms of value. Leverage new service management capabilities & resources.. Summary & Recommendations ©2012, THINKstrategies, Inc. www.thinkstrategies.com

  41. Good Luck! For more information, jkaplan@thinkstrategies.com ©2012, THINKstrategies, Inc. www.thinkstrategies.com

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