Michal Krzycki, Capgemini

Adopting Cloud Services - How to

unlock the value in your businessMichał Krzycki

February 10th, 2011

2© Copyright Capgemini 2011 All Rights Reserved

Introduction

Source: geekandpoke.typepad.com/geekandpoke/2009/10/the-history-of-the-cloud-part-1.html

This presentation will not discuss/cover:

history of the cloud, discuss differences

between various cloud models (IaaS,

SaaS, PaaS), or focus on particular

technologies or products used

but

will briefly present how Cloud can be

adopted to bring value to organization


What benefits does the Cloud Computing model bring?

Can enable the customers of the IT department to focus on delivering business

outcomes using resources that are easily varied, customizable and scalable

Based on OPEX model, minimizes up-front investments and improve time-to-benefits

By radically changing an organization’s infrastructure, Cloud can help organizations bring

new products and new markets to consumers faster (time-to-market), lower TCO, and

enable a better user experience

Offers standardization, flexibility, and business model innovation, changing the

competitive landscape within an industry and lowering barriers to new entrants on a

global scale

Allows for rapid corporation reconfiguration at times when companies need to be able

to adapt their organizations and delivery models globally to meet market evolutions and

change

– (e.g. launching a new website for a product, for which demand is not yet known, can be

done very quickly and cheaply )

Pay-per-use model lowers the initial investment (CAPEX) and reduces the risk of

over-investment (e.g. ability to purchase capacity on-demand).


How to get to the clouds?


Companies have a variety of choices when they investigate the

way forward in their cloud adoption

The figure below illustrates the four* most likely paths for cloud adoption:

* In fact, there is a fifth

path. The fifth path is

the zero option, which

basically comes down

to: "leave the cloud and

continue with business

as usual"

There is no single answer to the question of how to move forward. The answer will be

based on the ambition and risk appetite of companies and organizations.


1-”Cloud@Once”

Big bang cloud based implementation

For market newcomers

• In 2009/2010 almost every newcomer in the market used this model

• They needed the minimum of time and money to be in business

• No legacy allows to benefit from all the goodies Cloud Computing has to offer

Best choice!

Capgemini have examples that the "Cloud@Once" can work and can be very successful,

and all the cases were from organizations in great need or despair.

For existing companies with legacy systems

• Route with challenges!

• Forced to work and do business in a completely different way– New business processes– new business applications– new information models– new sourcing, – new governance & security models

• Most existing companies fear the continuity of their business.

Think twice!

If there is not a crucial reason to do it

this way (e.g. bankruptcy)

(probably better start a new organization

based on Cloud Solutions)


4-„Collaboration”

The most easy way to start

The most easy way to start with Cloud Computing is to use some productivity and

collaboration tools in the cloud

Business can continue as usual, but some elements are placed outside in a Cloud

bringing reach functionality and tangible benefit

– Google Mail and Google Apps

• Minimum effort and costs users have access to the most important office and email

functionality. As bonus they get instant messaging, video conference and more for free,

enabling collaboration with colleagues and customers.

– Microsoft BPOS (Business Productivity Online Suite)• Familiar Business Productivity tools in the Cloud (Exchange, Sharepoint, Office Comm,

LiveMeeting)

This first step to the Cloud is often not as simple as it seems!

– The IT department, the legal department and the security department will often hold you

back

• In general all these departments may see Cloud as a threat for the organization (…and their

own)– „Cloud is not safe enough and that Cloud won't fit in our current security and compliance policies”

– Although a simple adjustment to policies may enable the organization to use cloud

computing, in our experience there is often a strong resistance

For more information please refer to www.capgemini.com/google-apps/ or Google for

„Capgemini BPOS”


In SaaS, Content, Communication and Collaboration (CCC)

segment will grow the fastest, driven by high customer interest

(Figures in USD billions)

• Enterprises are most keen on adopting the cloud

model for CCC applications

– At 67.3%, collaboration applications have the highest

likelihood of adoption from enterprises

• Market segments such as email and team

collaboration will witness a steady surge in

SaaS usage

– SaaS represents less than 10% of the total enterprise

market spending in the email category

• However, a strong focus from players such as

Google and Microsoft on SaaS delivery will drive

adoption

– Team collaboration segment is gaining in popularity

from influences from social software and distributed

virtual teams

• SaaS represents nearly 47% of the total market

revenue in this segment which is expected to rise

steadily

2,141,87

0,711,17

5,61

4,1

1,41,67

CCC CRM SCM ERP

2008 2013

21.3% 17% 14.7% 7.3%

CAGR

Revenue Trend and CAGR, Key SaaS Segments

Source: Capgemini TME Strategy Lab analysis; Company Websites; Gartner, “Market Trends: Software as a Service, Worldwide, 2008-2013, Update”

Note: SCM – Supply Chain Management

SaaS Segment Growth Projections


3-”Safe exploration”

Explore universal domains

Some domains in any organization are more or less universal and not fully dependant on

other domains

– e.g. Sales&Marketing is typically such domain

• Every organization has suspects, prospects and customers

• Every sales or marketing department has offerings for and interactions with customers.

• They all keep track on the sales and orders.

– This kind of autonomous and standardized domains are ideal to migrate to the cloud

– The safe exploration route may contribute to your business objectives but can also be

used to, without any really big risk, to taste the power of cloud

– If you want to use SaaS solution for your autonomous domain, use it as it is. Combine

available Saas business services as needed, fine-tune the web interfaces as neatly as

you want but this should be it!

By uploading your company logo, your screen layouts and your customers info you can be

productive in a matter of days or weeks.

– We proved the speed of this way of working by doing a test case during the "Business in a Day"

conference. Within 2 hours 2 colleagues were able to set up a complete operational environment with

functional specifications and requirements taken from the audience and it worked!

Our advice: Use SaaS solution as offered!


Let the Clouds make your life easier

Source: geekandpoke.typepad.com/geekandpoke/2009/03/let-the-clouds-make-your-life-easier.html


2-”Dual Approach”

Transfer integrated systems to Cloud

Plain Iaas – the most easy and straight forward way

– Use an IaaS Cloud provider (e.g. AWS). Move your back-office environment (applications and

databases) to IaaS and reboot in the Cloud. Mixed mode (some systems in the Cloud and some

systems on-prem) is possible and will work.

• Advantages: Simple to do, saves money instantly when taking out your own data-centre and technical

personnel

• Disadvantages: You don't get ride of the „mess”, you just moved it to the Cloud. You still have to develop and

maintain your own applications, all the issues between IT and business still remains. A "Plain IaaS"

solution will free some budget but it will not really help the business in their need for a quicker Time to Market

SaaS/PaaS and Bus

– Do not to move existing applications to the Cloud but start using SaaS and PaaS and Extended Bus to

integrate Saas/Paas to your on-premise systems

• Advantages: Can simplify the application landscape by using functionality from the Cloud. The model give

the possibility to swap services in and out easily giving the possibility to optimize cost and usability. It

will shorten Time to Market by selecting existing business functionality not by building them. Step by

step you can clean up the „mess” and after a while you will save money.

• Disadvantages: SaaS/PaaS + Bus only works if you are using more or less standard functionality and

information. All the specials will give you a lot of trouble.

Visit immediate.capgemini.com

and read about Immediate Cloud ecosystem and how it allows our Customers to rapidly

achieve the business outcomes.


Journey to Clouds - summary

As stated earlier; there are various routes to the Cloud; your choice depends on a lot of

factors, like:

– The organization & business type

– The ecosystem and competitors

– The urgency in saving money or be more agile

– Current application landscape

– Risk appetite

– Influence of the Legal & Security departments

– Wiliness of the IT department

– The attitude of the CIO, is he/she enlightened or frightened?

It all comes down in defining a solid Cloud strategy including a realistic roadmap!

– Selecting the right path for your organization requires new ways of thinking and access to

processes that will accelerate service delivery

Capgemini advise: invest in „Cloud readiness workshops” to help you better prepare for

the future .. in the Clouds!


There are many risks and things to consider on the journey to

the Cloud

Some key issues and points to consider include:

– Provider Lock-In

• Understand the duration of the contracts you have in place. Plan an exit strategy from the

start

• Important is strong due-diligence, knowledge, and relationships with the best-in-class Cloud

Computing providers to ensure their ability is guaranteed before using the service

– Data security

• Prepare for losing the comfort of having all your data between your own four walls!

– Compliance/Regulations

• Extra agreements are needed to make it possible to apply the laws about personal and financial

information to the Cloud provider

– SLAs

– Change old supplier selection and contracting processes

• Traditional procurement processes may cost the business more than the Cloud Service being

procured!

– Try before you buy!

• Focus on business outcome not technology

• Use common free trials to build prototype

• Jointly developing the prototype, business and IT department, each party will have a clear

understanding of the requirements, dependencies and costs


Closing statement

Cloud Computing introduces

benefits and big changes…

… some habits will need to change!

Source: geekandpoke.typepad.com/geekandpoke/2009/10/the-history-of-the-cloud-part-1.html

Michał Krzycki

[email protected]

Thank you very much for your attention!

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Michal Krzycki, Capgemini