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Business in the Cloud

Translate the cloud jargon into plain old English and explore a practical roadmap for using the cloud in business.

George Woodward

on 30 January 2013

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Transcript of Business in the Cloud

getting a leg up on technology as a service:
the Wild West of business technology Business in the Cloud What is the cloud? translate the cloud jargon into plain old English Good News, Bad News know the good, the bad, and the ugly of
using the cloud in your business A Practical Roadmap how to evaluate the fit for cloud services in your business The Take Home we hope you learned a bit about
this whole cloud thing Source: CompTIA’s 3rd Annual Trends in Cloud Computing study
Base: 415 U.S. IT Business executives (a.k.a. “end users”) using cloud solutions Lower up-front costs

Capital expense converted to operational expense

Low requirements for in-house expertise Low Barriers to Entry Someone with more resources than you is managing the software and hardware

Large number of customers force providers to maintain high levels of service up-time

Many providers offer financially-backed service level agreements Service Reliability Good News :) Cloud services dynamically adjust to fit your needs (no shortage or waste or resources)

Only pay for what you use now

Service upgrades become a non-issue in terms of cost
Instantly available
Usually free
Always running the latest version Scalability and Flexibility Fierce competition between industry titans and well-funded start-ups

Many options for the end user

Rapid pace of innovation Market Competition It all depends on your internet connection
ISP and city/municipal infrastructure
Speed and quality of internal network

How much will network downtime cost you?

How often do you have downtime?

Can your connection handle the extra traffic? Accessibility and Speed Reasons for Moving to the Cloud Time $$$ Cloud Costs Traditional Costs Time $$$ Bad News :( Cloud service providers are not perfect

Typically, nothing you can do but wait and complain to customer support

How much will service provider downtime cost you? Service Provider Downtime Dependence on service providers to remain a going concern
Will Silicon Valley Start-Up XYZ still be here to support this service in 10 years?

Software updates are not optional
Push updates can cause confusion
Unpredictable productivity losses

Pricing changes are rarely negotiable Control and Business Continuity Must rely on the security of the service provider
Network security
Software security
Physical security of premises
Internal use policies

Can you trust the service provider with...
Core intellectual property?
Financial reports and tax information?
Sensitive customer information? Security Concerns Higher long-term costs possible
Rent vs. Buy dilemma

Generally, paying a premium for convenience, flexibility, and simplicity

Someone, somewhere, is being paid to manage your data Cost Premium Source: CompTIA’s 3rd Annual Trends in Cloud Computing study
Base: 415 U.S. IT or Business executives (a.k.a. “end users”) using cloud solutions Evaluate the Solutions evaluating the cost and capabilities of traditional vs. cloud solutions Evaluate your Company you've found a solution, but will it work in your organization? Variables Considered in Analysis of Cloud Investment Servers & Desktops Which cloud services matter most?
Servers and Desktops
Phone Systems
Email and Collaboration
Storage and Backup The Short List Phone System Email and Collaboration Software Storage & Backup Useful Life Comparison
Easy metric for quick comparison
Blunt instrument when used alone

Quantify additional variables if possible
Management cost reductions
Maintenance cost reductions
Work process efficiency gains Compare Cloud vs. Traditional Traditional Total Cost during
Useful Life (UL) vs. Cloud Total Cost during
UL of Traditional Review the regulations that affect your business
SOX – financial information
PCI-DSS – payment card information
HIPAA/HITECH – patient health information

Identify all data that will be affected by moving to cloud

Determine if the new cloud data environment satisfies compliance requirements
Restrictions may apply! Review Compliance Requirements Data location
EU Data Protection Act



User de-provisioning

Standards are playing catch up
ISO 27001 and SAS 70 are helpful, but limited
Fast changing landscape for compliance Compliance Challenges Migration to cloud services shifts IT focus
Traditional IT: admin and maintenance focus
Cloud IT: application and implementation focus

Do they have the expertise to implement?

Are they comfortable with the switch? Review IT Staff Capabilities Consider the impact on staff
What impact will this change have on staff work processes?
Will significant training be required?

Consider attitudes and tech affinity
Will staff and management jump on board?
Will they resist change? Review Employee Capabilities The cloud is really quite simple. It’s just software and hardware you “rent” over the web.

The cloud is growing rapidly, but it’s still young, and you’re ahead of the game. Take Home #1 Cloud solutions can carry heavy risks along with significant benefits. Identify the risks and determine if they can be tolerated within your business.

Always temper the benefits with critical questions.

Where is my data?
How is it being handled?
How much will downtime cost me?
What capabilities am I gaining?
What capabilities am I losing? Take Home #2 Drill down and account for the true costs of all your options for a better comparison.

Take an honest appraisal of all parties affected by a potential move to cloud services. Employee capabilities, stakeholder attitudes, and regulatory requirements will ultimately determine feasibility. Take Home #3 “Phrase du jour" used to describe many different concepts

Definition is a controversial topic in the IT industry What is the cloud? virtual servers accessed remotely over the Internet (narrowly defined)


any hardware or software consumed outside your own network (broadly defined) cloud (n) [ klowd ] Definition for the practical purposes of our discussion today:

Hardware and software delivered as a service over the internet
Data stored on someone else's computer and network
Data processed on someone else's computer and network
Typically priced as a subscription service
Flat rate, per unit, per month No, really, what is it? Phones &
Tablets Servers Laptops Desktop Everything as a Service EaaS, for short Software as a Service (SaaS)
Desktop as a Service (DaaS)
Storage as a Service (STaaS)
Security as a Service (SECaaS)
Infrastructure as a Service (IaaS)
Platform as a Service (PaaS)

And the list goes on… Everything as a Service (EaaS) Rent access to day-to-day business management software like accounting, CRM, inventory management, etc.

Accessed using a web browser on any device

Apps and software integrations have made access to these services more "seamless" on your devices Software as a Service (SaaS) Rent virtual PCs (desktops) running on someone else’s hardware

Accessed using any device with a web browser Desktop as a Service (DaaS) Rent access to content management, collaboration, and off-site backup services

Accessed using a web browser (or integrative application) on any device Storage as a Service (STaaS) Subscribe to anti-virus, threat detection, and intrusion prevention services

Software is externally managed

Your network is monitored remotely for threats Security as a Service (SECaaS) Rent virtual servers running on someone else’s hardware

Connected to your business environment via remote connection over the internet Infrastructure as a Service (IaaS) Rent specialized operating systems, databases, and programming environments running on someone else’s hardware

Example: SQL database "backend" for your business management software

Example: Software programming "sandbox" to test a software update in an isolated environment Platform as a Service (PaaS) The Cloud Application Platform Infrastructure a.k.a.
Software a.k.a.
Environment a.k.a.
Hardware The Big Picture how did we get here, exactly? and where is this all going? Widespread access to high speed broadband has enabled high quality delivery of demanding applications over the Internet
Not so long ago, broadband infrastructure was too slow to deliver rich content and demanding software applications over the web
Within the past 5 years, improvements in speed and availability have made cloud services more viable

Adoption of cloud services is growing rapidly among businesses History of the Cloud Source: CompTIA’s 3rd Annual Trends in Cloud Computing study
Base: 474 U.S. businesses (a.k.a. “end users”) Source: CompTIA’s 3rd Annual Trends in Cloud Computing study
Base: 415 U.S. IT Business executives (a.k.a. “end users”) using cloud solutions Understanding of Cloud Continues to Grow Use of IaaS/PaaS
"Machine to Machine" (M2M)

Smart Home, Smart Office, Smart Car, etc.

All appliances and electronics will be Internet connected
Devices stream data to cloud applications
Cloud applications process data and perform automated tasks Future of the Cloud
“Internet of Things” Data sets so large and complex that no traditional database or software tool can process the information in a reasonable amount of time

Many petabytes of data
Example: Social networks
Example: Electronic medical records
Example: All text and documents on the internet Future of the Cloud
“Big Data” Jobs containing the word “cloud”
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