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Cloud Solutions What do we mean by solution in the Cloud Era?. Ahmed Fattah Client Technical Adviser Financial Services and Public Sectors IBM Australia. Purpose and contents.

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cloud solutions what do we mean by solution in the cloud era

Cloud SolutionsWhat do we mean by solution in the Cloud Era?

Ahmed Fattah

Client Technical Adviser

Financial Services and Public Sectors

IBM Australia

Cloud Solutions

slide2
Purpose and contents

The purpose of this presentation is to discuss the semantic mismatch between customers’ and vendors’ perspectives of the term Solution, how Cloud Computing has influenced this and how we can align these two perspectives.

Contents:

  • Semantic mismatch
  • Customer’s perspective
  • Vendor’s perspective
  • Aligned perspective
  • Conclusions

Cloud Solutions

slide3

Frequently, there is a semantic mismatch between what customers and vendors mean by the term ‘Solution’. This mismatch brings usually very costly consequences to both.

Solution: Readily usable app* to achieve my business outcome

Customer

Solution

Solution: Some hardware, software, IP and resources that could be used to implement the desired app.

In some cases this situation can be even worse when multiple vendors are involved: each with their own meaning of Solution.

Vendor

* Note that the term ‘app’ is used here to highlight the end user’s perspective. It is not restricted to smart phones it can refer to any end use application on any device.

Cloud Solutions

slide4

The Solution from the customer’s perspective can be understood in the context of Business Imperatives, capabilities, use cases and a desired mode of consumption.

Business Imperatives

CEO, CFO, CMO,

Business Capabilities

(Objectives, opportunities, Problems)

Line of Business Owner

Business Use Cases

Business users

Mode of consumption

Procurement

Solution

Cloud Solutions

slide5

The vendor’s perspective of a Solution can be understood in the context of the components (hardware, software, assets), IP, skilled resources and effort that are required to construct the Solution.

Solution

Note that there may be still a gap between the Solution and SaaS. For example if the software is not multi-tenant or if it requires extensive customisation and configuration for each customer. In addition, commercial T&C’s have to be aligned to customer’s expectations.

Commercial

T&C

Consulting,

Implementation

& integration Services

Software/ Application

(SaaS)

In the past, custom development and SI projects used to bridge the gap between Platform (middleware) and the Solution.

Software Package

Framework

Platform (PaaS)

Infrastructure (IaaS)

Cloud Solutions

slide6

The two perspectives must be aligned and reconciled. With the rise of Cloud, the vendor’s perspective must be subservient to the customer’s. ‘Below-the-line’ details should only be exposed ‘above the line’ if they are of interest to the customer.

We need also to understand how the customer wish to consume the solution (purchase use case)

Customer

Customer’s perspective

(Above the line)

Solution

(Below the line)

Vendor’s and integrator’s perspective

Vendor

Cloud Solutions

slide7

The business stakeholders and buyers are interested in the ‘above-the-line’ aspects of the solution. Technical staff may be interested in ‘below-the-line’ aspects and could be buyers of individual component of the ‘Solution’.

Technologists

CEO, CFO, CMO,

Line of Business Owner

In-house technology and solution capabilities

Business users

Infrastructure

Platform

Framework

Package

Procurement

Above the line

Below the line

Vendor’s positing of the business solution

Vendor’s positing of the technical

solution

Solution

Architect

Industry SME

& Analyst

Cloud Solutions

slide8
Conclusion

With the rise of Cloud Computing, customers are increasingly want to consume IT capabilities as end-user apps. Vendors should evolve their business model to adjust to this reality.

  • Cloud Computing (and other enabling technologies such as mobile) has made it possible for consumers to use finely designed apps for almost every need and wish they have.
  • Enterprise use can see the benefits of this model and are already consuming some functions as SaaS. Some of these benefits are:
    • Conversion of CapEx to Opex
    • No need for (large) IT staff
    • Shifting the risk to vendors
  • Many vendors are already supplying enterprise SaaS for many enterprise functions.
  • Other vendors have to evolve their business model to accommodate this reality.

Cloud Solutions

slide9

Business Imperatives

Business Capabilities

(Objectives, opportunities, Problems)

Business Use Cases

Mode of consumption

Solution

Solution

Commercial

T&C

Consulting,

Implementation

& integration Services

Software/ Application

(SaaS)

Software Package

Framework

Platform (PaaS)

Infrastructure (IaaS)

Cloud Solutions