Calculating the true value of industry specific clouds linthicum

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Presentation from Cloud Expo 6/11/13

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© 2013 Cloud Technology Partners, Inc. / www.cloudtp.com

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David.Linthicum@cloudtp.com / Senior Vice President

Calculating the True Value of Industry-Specific Clouds

© 2013 Cloud Technology Partners, Inc. / www.cloudtp.com

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Geek Level

Your Grandparents whoare still using AOL

That guy who can convertyour name to Hex

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Industry-specific clouds are those PaaS, IaaS, and SaaS services that are tailored for a specific vertical, such as transportation, retail, finance, and healthcare. IDC sees a $65 billion market in these industry solutions for 2013, rising to $100 billion in 2016.

The value of industry-specific clouds is that businesses within a vertical can connect to applications, processes, and databases that are pre-defined for that vertical within a public or private cloud. They can extend processes and databases into the business domain, versus defining the data and processes within a generic cloud-based platform.

So, are industry specific clouds right for your business? What options are out there? How do you figure out the ROI? This session will answer those questions, and others allowing you to make the right decisions around the use of this technology.

Abstract

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The Cloud

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From Hype to Growth

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IDC sees a $65 billion market in industry specific clouds for 2013, rising to $100 billion in 2016.

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Business Agility Is the Objective – Need It, Find It, Use It

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• Last year, the New York Stock Exchange announced what it called a trading Community Platform ... basically a space where companies can build SaaS apps for the financial trading community.

• Johnson Controls, which has a business called Panoptix that has created a platform for developing energy management applications for smart buildings -- and recently announced an app store.

• Genetic sequencing company named Illumina that hosts BaseSpace, a collaborative PaaS environment for biologists that provides easy-to-use analysis tools and, in the near future, an app store.

Examples

Source: Eric Knorr

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The Value is Speed

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The Higher You Go, the Higher the Value

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Using Cloud for Vertical Process/Service Reuse

Shareable Public Cloud Services

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Sharing Vertical Data

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• Determine the cost of existing inefficiencies

• Determine the value of agility • Determine the amount of

process reuse• Determine the amount of

service reuse • Determine the value of

leveraging existing data and data structures

• Determine the operational value

Calculating the Value

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The cloud computing market in the health care sector is expected to grow to $5.4 billion by 2017, according to research firm Markets and Markets.

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The Realities

According to Gartner, anticipated growth opportunities put some industries at the top when it comes to global IT spending.  However, Healthcare Providers were not in the top for growth opportunities, coming in at $15,311M. Even Utilities beat them out by a projected $18,756M.

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Enterprise data center

Enterprise data center

Private cloud Hosted private cloud

Managed private cloud

Enterprise

Shared cloud services

EnterpriseA

EnterpriseB

Public cloud services

A

Users

B

Third-party hosted and operated

Third-party hosted

Private Implemented

on client premises

Client runs/manages

Third-party operated

Enterprise owned

Mission critical Packaged

applications

Third-party owned and operated

Standardization Centralization Security Internal network

Mix of shared and dedicated resources

Shared facility and staff

Virtual private network (VPN) access

Subscription or membership based

Shared resources Elastic scaling Pay as you go Public Internet

Corporate Firewall

Source: Jimmy Mills, IBM

Not a Bad Approach

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Cloud is Changing Enterprise Buying Patterns

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• Understand your business. This leads to the right cloud technology solutions.

• Understand your users. They ultimately decide if the movement to cloud computing is successful.

• Understand the technology. There are hundreds perhaps thousands of solution approaches and cloud technology providers.

• Define success. What are the objectives of moving to the cloud?

• Security, governance, and performance. Often overlooked. New models and technology typically required.

What’s Important:

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• The hype. Avoid following the crowd. What seems popular is likely not the correct solution for your enterprise.

• The operational ROI. Most of the money is made around the additional business agility.

• FUD. The fears around using cloud-based systems are typically inaccurate.

What’s Not Important:

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Security & Identity

Managem

ent & Service G

overnance

Data

Data Services/Abstraction

Transactional Services

Industry Specific Processes Composites/Portals

Monitoring and Management

Industry Specific Rules

Reference Architecture

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“as-is”

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“to be”

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Deploy

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Source: http://talkcloudcomputing.com/wp-content/uploads/2012/05/strategy-cloud-computing.jpg

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Components of the Strategy

1. Business Casea) Operationalb) Business Agility

2. Requirements and Architecturea) Datab) Processesc) Servicesd) Applications

3. DevOps4. Infrastructure5. Security6. Performance 7. Governance8. Technology Analysis9. Migration Planning10. Test Planning11. Acceptance Planning12. “Rinse and repeat”

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Ask by email / David.Linthicum@cloudtp.com / www.cloudtp.com

Questions?

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