June 21, 2010 Cloud Expo 2010, Prague

1. Cloud Computing Innovation Management is Key June 21, 2010 Cloud Expo 2010, Prague

2. Contents • Overview • Definition and a Cloud Computing Model • Services and Deployment Models • Business Drivers and Adoption Challenges • Making Legacy Application “Cloud Aware” • A Case Study • Innovation and Outsourcing Recommendations • The New Economies • Clarity of Objective • Developing a Roadmap and Key Recommendations 2 2 2 2 2 2 2 2 2

3. What Is Cloud Computing? • No commonly accepted definition of cloud computing, either business or technical • Definitions are beginning to distinguish between infrastructure and services • Clouds are hardware-based services offering compute, network and storage capacity where: • Hardware management is highly abstracted from the buyer • Buyers incur infrastructure costs as variable OPEX • Infrastructure capacity is highly elastic (up or down) 3 3

4. Cloud Computing Model Virtualization of Processing, Storage, and Network Resources

5. Cloud Computing Model –Levels of Abstraction Software-as-a-Service Processing, Storage, Network Resources Increasing Levels of Abstraction Platform-as-a-service Infrastructure-as-a-Service

6. Cloud Services Existing end user services market, delivered from/off the cloud Software-as-a-Service Outsourced Application Development Environment Platform-as-a-service Two emerging cloud-infrastructure-as-a-service markets Rent raw computing resources CPU, Storage, Network… Infrastructure-as-a-Service Traditional data center services market, such as collocation or managed hosting Physical infrastructure

7. Cloud Services - Mapping Users to Services

8. Cloud Services -Mapping Vendors to Services 8 8

9. Deployment Models • Private (internal) cloud • The cloud infrastructure is operated within the consumer’s organization • Public cloud • The cloud infrastructure is owned by an organization selling cloud services to the general public or to a large industry group • Hybrid cloud • The cloud infrastructure is a composition of two or more clouds (internal, community, or public) that remain unique entities but are bound together by standardized or proprietary technology that enables data and application portability 9

10. When to use what deployment model Source: IBM Whitepaper, March 2009

11. Business Drivers • Faster Time To Market • Almost immediate access to hardware and software resources • Lower Up Front Costs • Limited to No upfront capital costs • Pay per use billing • Possibility of New Business Models • IT Services Marketplace • Easier Scale-out Capabilities • Scale services as a function of user demand 11 11

12. Adoption Challenges • Financial • Current cloud computing offerings may not be cost effective compared to large enterprise data centers • Capex vs. Opex • ROI • Technical • Legacy applications must be made “Cloud aware” • Security and reliability concerns – business-critical data is “out there” • Operational • Compliance: data across national boundaries, data co-mingling • Licensing and capacity planning • Organizational • IT supply and demand organizations will have to adapt to function in a cloud-centric world 12 12

13. Summit is a multi-asset class solution from Misys, PLC • Integrated front-to-back office solution for Treasury and Capital Market participants • Distributed CORBA-based application developed in C, C++, and .Net. • Large monolithic application – 12.7 million LOC • Summit has been developed over a period of 20 years Exotics & Hybrids (MUST) Fixed Income Treasury Derivatives Lending Bonds MTNs Repos MBS/ABS GICS Loans & Deposits FX MM Securities Interest Rates Credit Currency Equity Bond & Commodity Syndicate Loans Bilateral Loans Trading – Pricing, Trading, P&L, Positions, Hedging Risk – Market Risk, Credit Risk, VaR, Limits, Collateral Operations – Workflow, Settlement, Reporting, Accounting Rules based workflow Making Legacy Application “Cloud Aware”A Case Study Background

14. SummitFT Desktop External Client Apps (Java, Excel, C++, VB, etc) HTTP or HTTPS Web Application Server CORBA or SOAP Real Time Servers Financial Toolkit STP Servers Position Servers Direct function calls eToolkit Server Metadata layer SummitFT Business Objects Gateway Loaders CORBA Distribution Server Database I/O Layer Credit, Hedge Market Server Summit “Classic” Applications BVS CORBA Sybase / Oracle / SQLServer Real time Feeds External Data Source Making Legacy Application “Cloud Aware”A Case Study Architecture 14 14

15. Estimate Making Legacy Application “Cloud Aware”A Case Study Approach Document Document Understanding of Summit POC Gap Analysis Target State Roadmap • Modernization • Proposal • Project Plan • Sprint/Dev Plan • Milestones Stakeholder Analysis Stakeholder goals and expectations Documents for each Document Document 15

16. Making Legacy Application “Cloud Aware”A Case Study Challenges making Summit Cloud Aware

17. Making Legacy Application “Cloud Aware”A Case Study Target Architecture 17

18. Innovating in the Cloud – The New Economies • Last recession and tentative recovery has forced business to look for greater value and more cost savings • 78% of IT managers believe economic uncertainty makes SaaS more appealing – ScanSafe • Most IT shops • Capital and labour intensive • Complex • Have a mixed record • Cloud computing maybe overhyped but “headline” potential economies of scale are irresistible • 20-50% savings over traditional outsourcing • Outsourcing industry needs to drive more value • Must drive further and align behind business value • Must move from passive to proactive and innovative • Transition to a managed outcome model

19. Clarity of Objective • In deciding on how “cloud” may help your organisation innovate, there are 3 main areas to consider: • The dynamics of the business • Volumes, drivers, demand elasticity, location, available capital • Design practicalities of the solution • Complexity, customisation, integration, data movement • Sourcing criteria • Price, flexibility, security, reliability, availability, contract terms • As with any other initiative, focus on • The business problem at hand • Clarity of business objectives (cost, flexibility, risk, benefit) • Practicality , feasibility • Develop roadmap from on premise to cloud that builds consensus

20. Developing a Roadmap • Analyse cost of delivered IT services • Detail every service provided by IT as a cost per service • Consider labour, licensing, maintenance, services, infrastructure, power etc • Rationalise and prioritise services • Categorise based upon key factors • Consider strategic importance, highly differentiating services, future potential , performance, security, back office/support functions • Assess potential for evolving to cloud • Consider financials, security, risk, data, integration and transition and operational impacts • Assess these for external cloud , private, hybrid • Share findings with stakeholders and share responsibility to reduce cost per service • Execution • Timeline for each service • Begin modernisation and • Experiment and learn with cloud trials • Leverage Partners to maximise Innovation

21. IT Services Providers Can Add Enormous Value • Cloud computing ecosystem changing by the day • You need partners to advise, guide and share risk IT service providers are developing experience in cloud • Resources and methodologies and libraries • Partnerships with technology vendors • Experience cutting through the hype Partner management and monitoring will be critical in delivering low risk, constantly evolving, innovative cloud based services • Alignment, measurement and contractual arrangements will be complex • Well chosen partners can help insulate you from risks • Collaboration between technology companies and service providers will be common • Be clear about the roles of each partner

22. Outsourcing for Cloud Innovation • Establish clear outsourcing goals across key stakeholders • Based on detailed analysis and roadmap • Develop business cases for initiatives/services and evaluate vendors/solutions against this • Engage vendors on managed outcome based contracts • Metrics are critical but need evolving • Contracts are still immature • Look for greater business value and proactivity • Cloud is still evolving so avoid the hype and tread carefully • Keep strategically important services close • Clarity and communication across all stakeholders and partners will improve success

23. Thank you Shankar S. Hegde, Ph.D. Sr Client Partner & Chief Architect Symphony Services 1 Technology Park Drive Westford, MA 01886 978 590 1532 shankar.hegde@symphonysv.com Ian Southward Director - Europe Symphony Services 2 Sheen Road, Richmond TW9 1AE +44 7827 919422 Ian.Southward@symphonysv.com 23 23 23 23 23 23 23 23 23 23