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This is a 2 hour strategy workshop developed by Predrag Mitrovic (http://mynethouse.se and http://cloudadvisor.se).The workshop is intended for CIOs and roles close to business strategy formulation around technology. Feel free to use the material and develop it further, as long as you give me access to the updated materials.Any questions can be directed to my e-mail: predrag[at]mynethouse.seI hope that you enjoy this material and find it useful./Predrag a.k.a Cloud Advisor
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Cloud Strategy Briefing 101
This work is licensed under the Creative Commons Attribution-ShareAlike 3.0 Unported License. To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.
Attribute to: Predrag Mitrovic at http://cloudadvisor.se
Cloud Strategy Briefing 101
Mastering strategy development, formulation and execution
20+ years in the IT industry
• EDP technician specializing in Unix and Novell systems • Test and Chief Editor; Nätverk & Kommunikation (IDG)• Own consulting firm• Nordic Consulting Manager, Novell• CSA/NTO, Microsoft• General Manager, LabCenter• Now manages MyNethouse• Co-founder & board member Cloud Sweden• Consultant, author, lecturer and inspirer.
Predrag [email protected]
3Cloud Competence With Confidence
Context and objectives of this WS
Cloud Computing ”crash course”
Promises of the Cloud RevolutionLower costsFaster time to market/applicationDriving value
Setting realistic expectations – framing the good, bad and ugly
End-customer focus: Suitable adopters and where to benefit
4Cloud Competence With Confidence
After this workshop You will…
Understand why to develop an overall Cloud Strategy on solid business cases
Have a portfolio of questions to ask prospective vendors
Not buy Clod for the sake of Cloud
Find the ”what´s in it for me” propositions
5Cloud Competence With Confidence
But first!
6Cloud Competence With Confidence
7Cloud Competence With Confidence
And now!
8Cloud Competence With Confidence
WHAT IS CLOUD COMPUTING?
9Cloud Competence With Confidence
• NIST Definition of Cloud Computing*
“Cloud computing is a model for enabling convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction. This cloud model promotes availability and is composed of five essential characteristics, three service models, and four deployment models.”
• Note: Cloud software takes full advantage of the cloud paradigm by being service oriented with a focus on statelessness, low coupling, modularity, and semantic interoperability.
NIST Definition
10Cloud Competence With Confidence
* National Institute of Standards and Technology (NIST) : Cloud Computing
http://csrc.nist.gov/groups/SNS/cloud-computing/index.html
• Essential characteristics of Cloud Computing• On-demand self-service. A consumer can unilaterally provision computing capabilities,
such as server time and network storage, as needed automatically without requiring human interaction with each service’s provider.
• Broad network access. Capabilities are available over the network and accessed through standard mechanisms that promote use by heterogeneous thin or thick client platforms (e.g., mobile phones, laptops, and PDAs).
• Resource pooling. The provider’s computing resources are pooled to serve multiple consumers using a multi-tenant model, with different physical and virtual resources dynamically assigned and reassigned according to consumer demand. There is a sense of location independence in that the customer generally has no control or knowledge over the exact location of the provided resources but may be able to specify location at a higher level of abstraction (e.g., country, state, or datacenter). Examples of resources include storage, processing, memory, network bandwidth, and virtual machines.
• Rapid elasticity. Capabilities can be rapidly and elastically provisioned, in some cases automatically, to quickly scale out and rapidly released to quickly scale in. To the consumer, the capabilities available for provisioning often appear to be unlimited and can be purchased in any quantity at any time.
• Measured Service. Cloud systems automatically control and optimize resource use by leveraging a metering capability at some level of abstraction appropriate to the type of service (e.g., storage, processing, bandwidth, and active user accounts). Resource usage can be monitored, controlled, and reported providing transparency for both the provider and consumer of the utilized service.
NIST Definition (cont.)
11Cloud Competence With Confidence
• Service Models:• (Cloud) Software as a Service (SaaS). The capability provided to the consumer is to use
the provider’s applications running on a cloud infrastructure. The applications are accessible from various client devices through a thin client interface such as a web browser (e.g., web-based email). The consumer does not manage or control the underlying cloud infrastructure including network, servers, operating systems, storage, or even individual application capabilities, with the possible exception of limited user-specific application configuration settings.
• (Cloud) Platform as a Service (PaaS). The capability provided to the consumer is to deploy onto the cloud infrastructure consumer-created or acquired applications created using programming languages and tools supported by the provider. The consumer does not manage or control the underlying cloud infrastructure including network, servers, operating systems, or storage, but has control over the deployed applications and possibly application hosting environment configurations.
• (Cloud) Infrastructure as a Service (IaaS). The capability provided to the consumer is to provision processing, storage, networks, and other fundamental computing resources where the consumer is able to deploy and run arbitrary software, which can include operating systems and applications. The consumer does not manage or control the underlying cloud infrastructure but has control over operating systems, storage, deployed applications, and possibly limited control of select networking components (e.g., host firewalls).
NIST Definition (cont.)
12Cloud Competence With Confidence
• Deployment Models:• Private cloud. The cloud infrastructure is operated solely for an
organization. It may be managed by the organization or a third party and may exist on premise or off premise.
• Community cloud. The cloud infrastructure is shared by several organizations and supports a specific community that has shared concerns (e.g., mission, security requirements, policy, and compliance considerations). It may be managed by the organizations or a third party and may exist on premise or off premise.
• Public cloud. The cloud infrastructure is made available to the general public or a large industry group and is owned by an organization selling cloud services.
• Hybrid cloud. The cloud infrastructure is a composition of two or more clouds (private, community, or public) that remain unique entities but are bound together by standardized or proprietary technology that enables data and application portability (e.g., cloud bursting for load-balancing between clouds).
NIST Definition (cont.)
13Cloud Competence With Confidence
14Cloud Competence With Confidence
Visualized Cloud Definition from NIST
Public Private Hybrid CommunityDeployment
Models
ServiceModels
Software as a Service (SaaS)
Platform as a Service (PaaS)
Infrastructure as a Service (IaaS)
EssentialCharacteristics On-Demand
Self ServiceBroad Network
AccessResourcePooling
Rapid ElasticityMeasured Service
15Cloud Competence With Confidence
Traditional IT vs. Cloud Computing
Traditional IT
DedicatedDedicated
HW & SW procurement “the old way”HW & SW procurement “the old way”
New services added manuallyNew services added manually
Semi-automated repair of system failureSemi-automated repair of system failure
MonthsMonths
Incremental CapEx purchasesIncremental CapEx purchases
Shared (multi-tenancy)Shared (multi-tenancy)
Self serviceSelf service
Scale on-demandScale on-demand
Automated recovery due to integration / interoperableAutomated recovery due to integration / interoperable
MinutesMinutes
Pay per usePay per use
ConsumptionConsumption
Ease of UseEase of Use
ScalabilityScalability
AvailabilityAvailability
ProvisioningProvisioning
CostCost
Cloud Computin
g
The cloud Promise
• No upfront investments or capital expenditures• Immediate access to needed capacity & resources
• Low IT barriers to innovation• Business agility booster• Business needs driving demand
• Find the scaling balance:• No lost possibilites• No over-capacity
• Scale up or down
• Pay-per-use• Opex vs Capex
16Cloud Competence With Confidence
• SW upgrade = new license• Users always complaining• SaaS = better + cheaper• Employees use cloud services for Private purposes
• Need to cut costs• Must deliver business value• IT to expensive• Is internal IT secure?• IT moves to slow
• My job is at stake• I´m tired of #@% SW licenses• I must manage costs• I must justify investments• How can I get CEO attention?
• I am cutting costs• I am on top of trends & hypes• We can´t do that • I am innovating here• I have full control
The CIO Dilemma
17Cloud Competence With Confidence
• Undermanned & overworked IT staff• Insufficient (shrinking) IT budget• Hacker attacks• No/low influence on business• Downtime• Rapid technological changes• Growing need for consultants
CIO Pains & Gains
• Invest budget in high business value projects• Align IT & business• No SW licenses to manage• IT seen as critical for success• Secure IT environment• Sufficient time to plan mission-critical projects• Happy users
18Cloud Competence With Confidence
Infrastructure & operations
Integration& application
Core capabilities
Core capabilities
Integration& application
Infrastructure & operations
Driving force
19Cloud Competence With Confidence
Scaling (”the old way”)
”Traditional IT”
Business Needs
Lost opportunities
Under-utilized capacity
20Cloud Competence With Confidence
Scaling (”the cloud way”)
”Cloud delivered IT”
Business Needs
21Cloud Competence With Confidence
Year 1
Investment
Year 2 Year 3
Cost: Investment HW/SW + implementation
ROI: Effective IT-process + organizational usage (core capabilities)
Traditionell IT - kostnadsbildScaling vs costs (”old way”)
22Cloud Competence With Confidence
Year 1 Year 2 Year 3
Cost: Pay for what you use
ROI: Natural effect from higher usage
IT-leverans via molnetScaling vs costs (”cloud way”)
23Cloud Competence With Confidence
Priorities for adoption
1 2 3 4
Financial:• Cost effectiveness• Clear ROI• TCO vs own Data Center
Operational:• Manage flexibility/agility• Cross-company innovation board• Roles
Technical:• Real security concerns?• Data integrity• Regulatory compliance• Reliability of cloud workloads
Organizational:• Prepared for the cloud-centric world?• Role of demand organization• Role of IT organization
24Cloud Competence With Confidence
THE Model!
25Cloud Competence With Confidence
Strategic Cloud Model
Vision, visualization, understanding the terrain,
formulation
Controlled implementation
THE CLOUDH
ype,
cas
e, b
est
prac
tices
, be
sser
wis
sers
Case studie, best
practice, lessons learned
Leadership, change management, decision criteria, evaluations
26Cloud Competence With Confidence
Our Workshop
27 Cloud Competence With Confidence
•Private Cloud•Policies•Security•Interoperability•StandardsConsolidated
Data Center
Public/Hybrid Cloud
28 Cloud Competence With Confidence
29 Cloud Competence With Confidence
HW SW Consultants Support Maintenance Operational overhead Storage Transfer Energy Communication
Agility/flexibility Availability Technology management
Test/development/integration/maintenance License utilizaton
Process management Overhead TTM/TTA
Part 130 Cloud Competence With Confidence
Part 231 Cloud Competence With Confidence
OperationalPragmatic
Value Creator
Cost Cutter
Business LeaderCooperation
InspiringTechnology
Leader
Drive innovation
Maximize ROI
Move the business forward
Visionary –Share insights
Part 3Cloud Competence With Confidence32
Bussines
Owners
Vendors
ExpertCommt
y
Cloud Maestr
o
• Cloud Computing Vision / Mission
• Inspiration• Market Research / Use Cases• Guidelines• Enterprise Architecture• Procurement Support
• Business needs• Requirements• Interests & Feedback
• Standards Requirements• Security Processes• Procurement Approaches• Best Practices• Operations• Performance management
• Seek Direction and Guidance
• Engagement• Sustainable relations
• Compliant Services and Offerings• Input to Standards• Collaboration on Developing
Standards & Best Practices
Security
Standards
OperationsPerformance
• RFI/RFPs• Definitions• Security
Requirements• Standards
Requirements• SLAs
Part 4
Va
lue
Cre
atio
n
Value CreationValue Creation
Workshops
Consulting
Webinars
Seminars
Analystservices
Labs
Articles
33
34 Cloud Competence With Confidence
35 Cloud Competence With Confidence
Usage Metering
Provisioning services
Authentication
Authorization
Logging
Reporting
Incident manageme
nt
Enterprise Appl. (UI + Logic)
Data
36 Cloud Competence With Confidence
Clear Business Benefit
Unique Capability?
Impediments to
outsourcing
Impediments to Cloud
Business Driver Cloud compatible
Will the solution be a
platform
IT Business Process
Insulation
IT based different-
iation
Custom App, HW, SW
Custom HW, SW
YesNo Based on Open Group
Application cloud feasability
Compliance
Cloud Competence With Confidence 37
Requirement fulfillments
Cloud Competence With Confidence 38
Risk management
Cloud Competence With Confidence 39
Business continuity
Cloud Competence With Confidence 40
Good sources for information
Cloud Sweden (LinkedIn: search for Cloud Sweden)
Cloud Advisor – cloudadvisor.se (Swedish only, sorry)
CloudTweaks – www.cloudtweaks.com
NIST – csrc.nist.gov/groups/SNS/cloud-computing/index.html
CloudCamp – www.cloudcamp.com
Cloud Security Alliance – www.cloudsecurityalliance.com
Open Cloud Manifesto – www.opencloudmanifesto.org
Cloud Competence With Confidence 41
Good sources for information (cont.)
Cloud Standards – cloud-standards.org
The Open Group - www.opengroup.org/cloudcomputing/
IDG Cloud Magazine – cloud.idg.se/
Amazon, Microsoft, Google, IBM, Oracle, Salesforce, RackSpace and all the others…
Cloud Competence With Confidence 42
Predrag Mitrovic
+46 (0)709 – 200 350
Skype/Twitter: write4joy
Thank You for attending!
43Cloud Competence With Confidence
Cloud Strategy Briefing 101
This work is licensed under the Creative Commons Attribution-ShareAlike 3.0 Unported License. To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.
Attribute to: Predrag Mitrovic at http://cloudadvisor.se