MSc. Dissertation Gopi K Manivannangopikrishna.co.uk/uploads/5/2/6/1/5261928/gopi_manivannan_-_msc... · Gopi Manivannan PG Dissertation - 4 - Introduction: ... Technical Architect

Gopi Manivannan PG Dissertation

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MSc. Dissertation Gopi K Manivannan

Why large enterprises should leverage innovative technologies like Virtual workspaces, Virtualization and Cloud Computing to enhance

Workplace Collaboration, Efficiency and Drive Cost Reduction.


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Abstract

Virtualization and cloud computing are the top priorities for companies, according to a study by Gartner. Virtualization and cloud computing continue to attract keen interest from executive management. The most significant change is in the demand for social technologies and virtual workspaces, which is leading to the adaptation of new technologies such as cloud computing Cloud computing is in some sense changing how we work, requiring a more non-location based focus. For instance, more people work outside of an office. Smartphone usage is starting to soar. Many of these enterprise collaboration services now available are cloud-based. Users will need access to those applications to do their work. Virtualization is important as it helps IT groups get more out of their assets. Data centers can be optimized while also reducing labor costs. These technologies provide the IT departments an opportunity to develop flexible, adaptive enterprises. Cloud computing and virtualization help make that vision a reality.

http://www.gartner.com/it/page.jsp?id=1283413



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Table of Contents

1. Title page

2. Statement of originality and acknowledgments

3. Abstract

4. Table of contents

5. Introduction

Why Virtualization

Barriers to adoption

The consequences of inaction

What Virtualization does

Benefits of Virtualization

6. Requirements analysis

Benefits of server Virtualization

How server virtualization works

Features of server virtualization

Challenges of server Virtualization

7. Design specification

Design of an Enterprise system

8. Implementation details

9. Test and evaluation strategy

10. Conclusion

Finding the Synergies

Consolidation

Optimization

With challenges comes opportunities

11. Appendix


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Introduction: My dissertations involves examining the current enterprise architecture within a large blue chip corporation, and suggesting suitable technologies for planning the next generation architecture, to help me with this, I will use my previous knowledge and experience in the field of Software Engineering, Cisco Networking Technologies, and my experience from working at American Express, as a Business Analyst, Technical Architect and Portfolio Manager, this valuable experience puts me in a position to evaluate the hardware, software technologies and how they fit into the whole Business Process within American Express. The key focus of this dissertation is to examine how new technologies can contribute to the Business Process Innovation within a large enterprise organization and improve user productivity through seamless workplace technologies.

Sharing, storing and accessing the large amounts of information securely within a corporate environment can be an expensive, challenging, time consuming inefficient process, since most of this is done manually, effective handling of the data and intelligent storage systems are required in other to make the whole process more systematic, consistent and effective. Effective Knowledge Sharing within the company can give it a competitive edge in the market place. Effective communication and team collaborating at a large Blue Chip company can be improved upon significantly. To enable these changes to slowly take place within the whole company one must understand the underlying/existing technology. This dissertation will examine the overall Technology Architecture of a large Blue Chip company, and come up with useful recommendations using survey analysis and extensive research into the area of Virtualization, Cloud-computing and ubiquitous technologies. Existing storage management techniques and tools cannot keep up with today‟s pace and the ever increasing storage requirements. Application expansion, digital media formats, and regulatory compliance all contribute to the fast growing demand. According to IDC, storage administrator productivity must increase by 60% every year just to keep up with the anticipated growth in storage capacity. To make matters worse for administrators‟, 27x7data access requirements are reducing the management windows available for administrators to perform management tasks. Recently the demands on IT managers has grown dramatically, within Blue Chip organizations, due to the addition of new applications, increases in processing power, improved networking technology and storage. At the same time, regulatory compliance demands more and better data protection. The globalization trend has increased the readily available data for large enterprises; this is an indispensable competitive tool in a global market. These new trends and growing demands are not matched by the existing resources to support them. Most of the organizations have not managed to keep up with the increasing application or storage needs, and fewer people have to manage more. This combined with limited data centre resources such as floor space, cooling and power – the challenges facing the existing enterprise architecture are many. Advances in technologies like Virtual Worlds, Virtualization and Cloud Computing are slowly helping to address these issues. Technologies such as server virtualization are being deployed into production environments, giving organizations the ability to consolidate technology resources. The applications residing on the servers are not the only components of the technology infrastructure that consume computing processing power, network and storage utilize the same resource too. The cost to acquire, manage and protect storage is one of the fastest growing data centre expense. Hence a solution in one area, such as streamlining computing resources, does not translate to efficiencies across other high-cost areas such as storage. Leveraging virtualization in server and storage environments can improve performance, utilization, reduce costs, and simplify management. A combined approach of utilizing a server,


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storage virtualization with cloud computing will create a blueprint for effective consolidation, optimization and protection of enterprise infrastructures. A new approach is required to dramatically simplify network storage management, which is one of the most fundamental parts of the enterprise architecture, and drive dramatic improvements in capacity, performance, and tiered storage management. A potential solution, however must not introduce any additional risk into storage environments. Administrators do not want to risk data integrity problems, disaster recovery issues, or performance bottlenecks. A related concern for any viable solution is how end-user access is managed. A solution that requires the installation of special software on each server or client can significantly outweigh the benefits of uninterrupted access during data movement. Enterprise Organizations also need to understand how a solution impacts other management tasks. How difficult is the initial deployment? How does it perform data retention activities? Will a potential solution create management headaches elsewhere or in the future? For example, does a solution provide a proprietary approach that is in conflict with upcoming industry standards?

Table 1

Top 10 Business and Technology Priorities in 2010

Top 10 Business Priorities Ranking Top 10 Technology Priorities Ranking

Business process improvement 1 Virtualization 1

Reducing enterprise costs 2 Cloud computing 2

Increasing the use of

information/analytics

3 Web 2.0 3

Improving enterprise workforce

effectiveness

4 Networking, voice and data

communications

4

Attracting and retaining new

customers

5 Business Intelligence 5

Managing change initiatives 6 Mobile technologies 6

Creating new products or services

(innovation)

7 Data/document management and

storage

7

Targeting customers and markets

more effectively

8 Service-oriented applications

and architecture

8

Consolidating business operations 9 Security technologies 9

Expanding current customer

relationships

10 IT management 10

Source: Gartner EXP (January 2010)




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Literature Review & Analysis of existing solutions

The analysis will focus on devising a framework for understanding the business model and sources of commercial and social success of Second Life/Virtual World Platforms, It also explores its potential impacts on Virtual Workspaces, and how it can be used by large Enterprises to improve collaboration within the organization.

I‟ve been interested in the virtual world of Second Life since 2006 and I am an active user of Second Life, I‟ve also been doing some research on how people interact with each other - within the virtual world, sharing ideas, learning, exploring brands, companies, products, expressing their creativity and generating substantial revenue by selling their virtual creations to other users of Second Life. The aim of this analysis is to investigate how such technology can be used by enterprises for a variety of purposes.

I have also been following the work of Alexander Osterwalder, A Business Model Expert & the author of http://www.businessmodelalchemist.com/.

Definition: Virtual World “A virtual world is a genre of online community that often takes the form of a computer-based simulated environment, through which users can interact with one another and use and create objects.” Wikipedia (2010) [2] “Second Life ® is a 3-D virtual world created by its Residents.” Second Life (2010) [2]


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Many successful companies / multinationals have made the transition from the Real World (RL) to a three-dimensional world known as Second Life (SL) – a virtual world involved in commercialism advertising and virtual user networks. The rationale behind these “transitions” is vast and ranges from attracting press coverage to brand engagement with potential clients. Whatever the desired outcome and whether by design or happenstance, millions of dollars are spent daily in Second Life (Linden Lab‟s) environment. “Second Life is the leader of virtual meeting, event, training, prototyping, and simulation solutions that catalyze innovation while reducing the cost and environmental impact of travel.” – Second Life “In late 2008, the organization held a Virtual World Conference and then an Annual Meeting, hosted in a secure Second Life environment with a conference space specially designed by IBM for keynotes, breakout sessions, a simulated Green Data Center, a library, and various areas for community gathering.” IBM – Linden Lab (2009) [9] IBM has invested over $10 million in various Second Life activities and acquired over a dozen “Islands” to showcase different offerings, and is already working with over 20 clients on current projects. The many benefits to utilizing this environment may include virtual conferences, training, sales meetings, and presenting concepts that are not attainable on the Internet or in real life (i.e. manipulation of 3D models). Taken together, Second Life is truly a unique and cutting-edge business platform. This is just done by one company, there are many others like IBM present in Second Life.


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There were an estimated 5 million registered users and a daily spend of $1.7M in Second Life (2007). Since reliable consumer data and statistics are limited for Second Life, The type of daily transactions that are occurring for a variety of goods and services. These may range from clothing, vehicles, pre-fabricated buildings, land purchases, and scripted tools.

With respect to practical B2B endeavors, Real Life (Real World) firms hire architects, builders, marketing consultants, employees, and technicians to perform specialized activities which turn an obscure landscape into a spectacular and functional creation.

In this Analysis the author hopes to explore - what business model works best when transitioning to a virtual world? However it‟s situational and depends on the desired outcome. The following review will explore a variety of firms (first-hand in Second Life), identify similar attributes, and categorize them according to the value delivered. The outcome of this analysis will yield a sampling of business models “in play” and payoff from venturing into this environment. The “payoff” is defined as the tangible and intangible benefits derived from such an investment. To these firms, Second Life is a sand box of many things and their models may evolve and adjust over time through continued discovery. A good place to begin this essay requires an understanding of a business model design, coupled with the perceived benefits. Most companies now use a virtual realm (Second Life) to reach out to potential customers and supporters in novel ways. Today, traditional media captures less attention from the younger generation, new venues that address this demographic are evolving. Innovative organizations may create venues that interest this younger generation and weave their brand into the activity or environment.


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Definition: Business Model “A business model is a conceptual tool that contains a big set of elements and their relationships and allows expressing the business logic of a specific firm. It is a description of the value a company offers to one or several segments of customers and of the architecture of the firm and its network of partners for creating, marketing, and delivering this value and relationship capital, to generate profitable and sustainable revenue streams.” Osterwalder, Pigneur & Tucci (2005) [3]

Possible Solution for Revenue Generation: Digital Paintings on Second Life Image Source: http://www.businessmodelalchemist.com/wp-content/uploads/2010/03/revenue-models.jpg In 2004, Osterwalder synthesized various business models into a single concept based on common attributes. He suggests that nine related building blocks constitute a business model template. (Wikipedia) They include:

Image source: http://upload.wikimedia.org/wikipedia/en/1/10/Business_model_components.png

http://www.businessmodelalchemist.com/wp-content/uploads/2010/03/revenue-models.jpg

http://www.businessmodelalchemist.com/wp-content/uploads/2010/03/revenue-models.jpg

http://upload.wikimedia.org/wikipedia/en/1/10/Business_model_components.png


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Image Source: http://upload.wikimedia.org/wikipedia/en/1/10/Business_Model_Canvas.png

I would like to break this model down - in order to fit the context of this essay; the original list will be reduced to three key constituents: value propositions, targeted customer segments, and customer relationships. Armed with these broken down metrics, we now have a basis of evaluation and comparison for a virtual world business model. Perceived Benefits: In addition to a business model, the companies should also consider: “The benefits to transitioning into this environment” Four broad categories the companies could potentially use to capture the business rationale for such a transition and include: 1. Press Coverage 2. New Brand Channel 3. Consumer Feedback 4. Brand Engagement Business Model & Perceived Benefits Converge: The following firms will be categorized into three groups. Those who seek a “New Brand Channel,” firms that utilize Second Life for “Consumer Feedback,” and the third group that addresses “Brand Engagement”. With each category, the consumer moves from a Casual to Preferred use and ultimately, to the Committed use. Within each category, the apparent value proposition, targeted segments, and type of customer relationships will help to define the abbreviated business model. We can begin with a “New Brand Channel.”

http://upload.wikimedia.org/wikipedia/en/1/10/Business_Model_Canvas.png


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New Brand Channel: This type of enterprise closely mirrors the real world establishment in terms of form, fit, and function. Examples of organizations that use this model to extend their brand into a virtual world include Circuit City (USA), Sears (USA), Reebok, Toyota, PA Consulting (UK), and a host of other B2B & B2C firms. By establishing a presence in Second Life, they have created a conduit with a new channel to market.

Business Model: Value proposition = Virtual shopping, testing products, consulting Targeted segments: New and existing consumers Customer relationship: Casual

Outcome: Extends brand into new setting Tests viability of virtual shopping and services Track purchases, collects data on shopping experience for future store layout/design, and conduit for new relationships

Consumers in Second Life view an interaction with one of the above listed firms as an affirmation of the brand. In the above mentioned B2C venues, shoppers explore and discover on their own the many products or services in this familiar environment (store or gallery setting). For example, Sears and Circuit City have several floors stocked full of scripted items which portray real products (like iPods, refrigerators, and kitchen cabinets). With Toyota‟s Scion City, current and future motorists are given the opportunity to buy a Scion ($300L) and take a “test drive” around the island. The key criteria of casual use means - once the visitor tests a product, they possess little incentive to engage the brand in the future. In addition to a predominately self-service experience, Nokia “hires” employee‟s to stand by a kiosk and answer questions regarding cell phones. The avatar is clothed in Nokia blue and white garb to match the brand identity. The idea of employing brand ambassadors in shopping venues can enhance the experience and possibly lead to further investigation outside Second Life PA Consulting (B2B), a UK-based firm, utilizes this environment to engage Real Life businesses on the use of Second Life for brand awareness or internal business process. PA believes they have developed insight into “best use” of virtual environments for a number of industries and are uniquely positioned to drive innovation within these two areas new financial retailers and transport industry. [5] Claus Nehmzow (2006), who leads PA's applications of virtual worlds, says: "A virtual world such as Second Life has many valuable and real applications for us and our clients. For PA it is a new way of getting closer to existing and potential clients, demonstrating and discussing business issues in real time. It's also an innovative and interactive marketing presence, a recruiting tool and in due course a way to interact with our alumni. "Second Life also has the potential to be a serious business tool for many of our clients in various industries. It is important for a consulting company to have a view on how to apply technology such as this to businesses. We can now work with clients to build 3D 'immersive' environments that can be used to collect customer feedback, involve customers in design, and eventually use this medium as a customer service and interaction channel."


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PA's CEO, Bruce Tindale, adds: "3D virtual worlds are now becoming a unique business tool. For example, a bank may want to redesign its branches' interior design, assess the way its consumers and bank staff interact, and even gauge the user-friendliness of its technology. All this can be realistically simulated in worlds such as Second Life, which makes the gathering of user feedback on design options faster, cheaper and more realistic. And, in the public sector, urban planning and distance learning could take advantage of this new approach to improve dialogue with all stakeholders - while also lowering consultation costs.” Claus Nehmzow (2006) [5] Consumer Feedback: A firm which is actively using Second Life to incite specific customer feedback is Aloft Hotels. In September 2006, Aloft was the first hotel company to launch a hospitality brand in Second Life. They opened its first hotel with a virtual concert hosted by Ben Folds. They constructed a hotel which included a lobby, food concessions, pool area, and an actual hotel room. They also placed laptop computers in the lobby for guests to provide feedback on their experience. Here Aloft has solicited (free market research) the views of thousands of users and integrated that data to build upon their hotel experiment. Before Aloft implements this in Real Life, they will have a better assessment of what their guests really want out of a cutting edge, high-utility hotel. [6]

Image source: http://www.virtualaloft.com/

Image source: http://www.virtualaloft.com/

http://www.virtualaloft.com/

http://www.virtualaloft.com/


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Business Model: Value proposition = Consumer-centric experience Targeted segments: Current and future business travellers Customer relationship: Preferred users - collaborative and sense of ownership

Outcome: Focus group research (free) Controlled setting Credible information – no payment made and driven by consumer initiative

Consumers in this realm gravitate to this model for two reasons – they‟re invited to take a “peak behind the curtain” of a new hotel design concept and secondly, are able to voice their opinion on what really matters to them. This powerful combination meets the needs of both parties. On the business side, Aloft can experiment with novel concepts (innovate) at a minimal expense. For the consumer, they gain a sense of involvement (buy-in) and will develop a preference for this offering, virtual or otherwise. These participants have inadvertently joined Aloft‟s journey. In essence, if you were part of the design, you‟ll want to experience it in real life. Brand Engagement: Probably the most powerful use of Second Life comes in the form of scripting – the ability for the user to engage a product or service through direct interaction. Let‟s take a look at Dell City. Once you get past the high-tech design, giant computer tour, or people-mover monorail system, the user has the opportunity to enter the Dell factory and actually witness the construction of their very own laptop or desktop computer. Sitting comfortably in an ergonomically designed chair and facing a drafting board, the user interacts with the screen and selects components that will ultimately complete their Dell computer system. After each click, the selected computer component “rezzes” in front of the user and loads into the computer frame. During this process, the user actually witnesses the construction of his/her own system in real time and in 3D. Once complete, they are whisked off to Dell‟s Real Life (Online) website to complete the transaction. During this experience, Dell has moved to the next level of brand engagement – from 2-D web-based format to 3-D entertainment. [7]

Image source: http://news.zdnet.com/2100-9595_22-150284.html

http://news.zdnet.com/2100-9595_22-150284.html


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Image source: http://news.zdnet.com/2100-9595_22-150284.html

Business Model: Value proposition = First-person engagement Targeted segments: Techies and progressive computer users Customer relationship: Committed user = “Brand loyalist”

Outcome: Engage consumers in a way (virtual experience) not readily attainable elsewhere Turn purchasing a Dell system into a fun and memorable experience Users will most likely advocate this venue via word-of-mouth

Consumers in Dell City have progressed beyond casual use (testing products or shopping) or providing feedback. Both of these types of engagements are certainly valuable in their own right, but Dell‟s venues moves beyond that and require consumers to actively make choices. This “consumer behaviour-based model” provides Dell with extremely valuable data – all aspects of the decision-making process can be codified. This process would equate to having the consumer‟s describe how they make choices based on the selections. Dell has the ability to monitor transaction completion rates and barriers to progression. In addition, the technology exists to literately track the movements of consumers throughout the visit. This data, if actually collected and used, would allow Dell to better configure the experience and conduct a value-gap analysis. This simply means eliminating areas or experiences not utilized, capitalizing and enhancing high traffic areas, and experimenting with new options and innovations. Through continual learning and discovery, Dell could further increase their value proposition, broaden their segment, and ultimately turn visitors into Brand Loyalists. [7] Most big companies are unsure of the way they should be promoting their brand in Second Life in a way residents will appreciate.

http://news.zdnet.com/2100-9595_22-150284.html


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Some strategies the companies could take advantage of, and some observations into what needs to be changed, and how to keep the users “engaged”.

1. One of the key concepts that the companies need to understand is that Second Life is a new Technology - like for example the TV in 1948, this is a whole new interactive medium, which could be potentially used for the purposes beyond advertising.

2. They can't just knock together a site or a 3D simulation and then leave it to run on

autopilot without engaging the users and providing no feedback.

3. Companies could get opinions for future products from the users in Second Life and interact in a way that was not possible previously.

4. Second Life is a long term commitment and develops Interesting spaces and places over

time – not a one time thing, so the companies need to consider why they are there and how much investment goes into their initiatives within Second Life.

5. Create a seamless interface between Second Life & Real Life. Companies should know

their specific customer base and target them.

6. Companies can host fun events, creative builds, and provide a reason for the users to return to their virtual base, this could also enable the users to become more interactive.

7. Companies should provide seminars on cutting edge technology/products – this attracts

the users, who can gain new insights, valuable knowledge and also can provide feedback on the concepts discussed.

8. Generally most people don't come to Second Life for advertising, so the companies need

to come up an indirect advertising scheme, which involves the users and at the same time enables them to explore and find out more about the brand in their own terms.

9. In Second Life, push marketing doesn't work; due to the Inability for meeting changing

demand patterns- lack of understanding of basic Second Life principles.

10. Most companies do not consider this, but they need to start thinking about how they can bring value to residents, the Second Life residents are looking to interact with the company in a more meaningful way, perhaps providing them with feedback on the company‟s products and help them gain useful insights into their products.

What companies do - right and wrong - in Second Life

1. One of the key benefits in Second Life is that the there is no need for actual company representatives (need for real people); hence it is a cost effective solution.

2. Companies should not assume the users want to buy – they should ask first and probably

give them a choice of service that the customer can choose from.

3. Personal help/service is good - but the companies should try to provide them when asked for, not automatically.

4. The users may want to talk to real people, so the companies could possibly hire a real life

person to present themselves as an avatar on Second Life.

5. Automated machine greeters are bad, the users can easily spot the difference between a real greeting and a machine generated generic greeting, the users may expect a more personalized greeting.


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6. Scion City has a space for car culture - these involve the users and allow them to express themselves through customizing their virtual cars and promote brand loyalty.

7. Companies should provide a Second Life service associated with a Real Life (world)

brand.

8. Companies in Second Life should bridge the gap to Real Life (world) and vice versa.

9. A high tech company should not assume that they know what it takes in order to remain in Second Life for the long term.

10. Companies should be actively involved with the Second Life community and not just build

a simulation for the users to explore and promote their brand/products.

11. Companies should promote a crossover in products and services. If they sell a product in Real Life, why not create that product in Second Life, either for a low cost or for free.

12. Companies need to be more proactive in making Second Life a more enjoyable

experience for the new residents.

13. Real Life companies should do a Second Life market research first, before they venture out into the virtual world and weigh the pros and cons of their actual presence in Second Life.

How firms could measure their success in Second Life:

1. Companies must understand that they cannot solely measure their success with money, Second Life acts as a platform that the company can expand on, and try out new things.

2. However companies can measure their success with they amount of traffic (users) that

generate interest on a particular product/simulation.

3. Companies could track the users return visits in order to see if the user is interested in finding out more about their products or services.

4. Companies can monitor the conversation generated, and judge the level of interest and

the buzz that is created, possibly gaining valuable feedback.

5. This is also dependant on the kind of company, some companies would simply be looking for new ways to engage with the user and the residents, potential Real Life customers, others could use Second Life for product testing research, some companies could use it to save costs by hosting virtual meetings (like IBM), inadvertently they all promote actively promote their brand, which creates awareness within the Second Life community.

6. Companies can also measure their performance within Second Life by the weight of the

feedback and inquiries and purchases in conjunction with the number of visits.

7. Companies can possibly review the Blog comments posted by users, and view them as positive or negative feedback and act upon them.

8. Companies can distribute a freebie or a note card and measure how many times it gets

"bought" by the residents.


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9. Companies can find ways to check to see how many visits to their Real Life (world) web site are made by Second Life users in order to find out more about their brand or product.

10. Companies can easily conduct surveys to find out if Second Life has been an influence in

their decision to purchase a product or service from a company.

11. Second Life offers an excellent opportunity for Real Life companies to generate profits due to the low costs of doing business in Second Life.

12. Companies could set up voting stations so the residents can “vote” on a product, design

or an idea.

13. Ultimately success here is something that can't be measured, Second Life adds value to a company in many ways, however it cannot be solely used as a social networking medium to generate revenue, the opportunities Second Life presents are varied but plenty, it depends on the companies long term or short term goals & strategy, most big companies tend to look at the bigger picture, remain for the long term & make their presence known within Second Life, they also interact with the users to learn more about them, so they can market their products more effectively, either way it‟s a win – win situation, The company provides a service which the users can either consume for free or pay for it, explore and build upon.

Things successful companies have in common with their product type or strategy

Brand reputation

Quality

Good design that's cool

Association with design statement

Quality buzz

After sale experience Conclusion: Second Life is a medium or it can be thought of as a technology to facilitate communication, interaction, professional and social networking. There is no real "goal" to Second Life, which confuses many people when they first enter this environment. No one "wins" against another in Second Life as they would in a gaming environment. The unique success of Second Life is attributed to the content which is created almost entirely by the residents or "avatars". Every building, landscape, event, and commercial enterprise to be found in Second Life is privately owned by its creator. A creator is typically an individual sitting at their home and can be located anywhere in the world or a large company. The key benefit of using this environment is undoubtedly the wide reach at minimal financial cost. For example a high tech company produces a new mobile device that enables the user to do far more than is currently available. Traditional media channels targeted to the younger market are highly congested and commoditized. Due to the technical nature of the companies offering, they will need consumers to spend time learning these features in a fun and interesting manner. As a result, the company builds a technology centre in a virtual world to showcase capabilities in a


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game format. For example, to educate users on a GPS feature, the company could then build a treasure hunt island game and have the users navigate their way to the treasure chest, while finding clues and avoiding obstacles. By completing the game, they have “learned” how to apply these features and become more encouraged to try other similar offerings. The objective of this essay is to explore the types of business models used by firms that are transitioning to a virtual world called Second Life (SL) and devise a framework. The intent was to draw broad business model categories and limit the analysis to three constituents: value propositions, targeted customer segments, and customer relationships. In addition to defining a business model, justifying the benefits of transitioning into this environment. Three segments were developed to capture the business rationale for such a transition and include: new brand channel, consumer feedback, and brand engagement. The objective of this essay is to yield a sampling of business models “in play” and the anticipated “payoff” from venturing into the digital world of second Life. Consumers have the ability to experience things not currently possible in the real world. Product trials in virtual settings provide a low-risk environment for testing features and benefits. Companies can hire avatars to be product ambassadors and answer common questions. Also, the firms can demonstrate their 3D products or services in use. Live video and jpegs can add to the experience to help educate the user. Real dollars are exchanged in Second Life and the lines between fantasy and reality become blurred. In addition, the user may form relationships with neighbours and groups that share similar interests or causes, enhancing their social networking experiences. Second Life: How it is being Used & Success Stories Source: Linden Lab’s Case Studies - http://work.secondlife.com

“CIGNA and vielife launched the pilot phase of a nutrition program in Second Life on an island branded GET: Go, Experience, Thrive. The program was so successful that they are exploring a wider range of virtual world training programs in Second Life addressing health issues such as sleep, stress, and fitness.” CIGNA, Linden Lab (2009) [12]

http://work.secondlife.com/


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“The IBM’s Academy of Technology has long been on the forefront of emerging technology research and exploration. In late 2008, the organization held a Virtual World Conference and then an Annual Meeting, hosted in a secure Second Life environment with a conference space specially designed by IBM for keynotes, breakout sessions, a simulated Green Data Center, a library, and various areas for community gathering. The 200+ participants were offered pre-conference training on the basics of Second Life to make them comfortable communicating and navigating within the environment. IBM estimates the ROI for the Virtual World Conference was roughly $320,000 and that the Annual Meeting was executed beautifully at one-fifth the cost of a real world event. Many IBM staff were converted into virtual world advocates, paving the way for many future internal conferences and events to be held within the space.” – IBM, Linden Lab (2009) [9]


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“Metanomics™ explores the serious uses of virtual worlds and, from its start, has built a global community as a weekly discussion of policy and research. Centered on a talk-show program that broadcasts live from Second Life, Metanomics is an example of how organizations are building engaged communities and cost-effectively developing content that can be widely distributed on the Web.” – Metanomics, Linden Lab (2010) [13]

“Northrop Grumman Corporation (NGC), a $32 billion dollar global security company with 120,000 employees, has a rich heritage of innovation. In keeping with that heritage, NGC has now entered the virtual world, with a sophisticated five region presence in Second Life that enables the company to simply and inexpensively prototype products, conduct simulations, and train employees in environments that would be prohibitively dangerous, expensive, or even impossible in the physical world.” – Northrop Grumman, Linden Lab, (2009) [11]


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“The company’s 3D presence can be found in Second Life by the region name of “TUV Nord”. Since 2007, the region has been used for recruiting, meetings, game based education and other new ways to share knowledge. An ambitious long-distance training project produced a complete return on investment within a year. Now the company is ready to share the benefits of its extensive virtual development with clients.” TÜV NORD, Linden Lab (2010) [14]


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Bibliography:

[1] Alex Osterwalder. Business Model Generation. Available: http://www.businessmodelalchemist.com/. Last accessed 1 Apr 2010. [2] Wikipedia. (2010). Second Life. Available: http://en.wikipedia.org/wiki/Second_life. Last accessed 1 Apr 2010. [3] Wikipedia. (2010). Business Model. Available: http://en.wikipedia.org/wiki/Business_model. Last accessed 1 Apr 2010. [4] Wikipedia. (2010). Culture of Second Life. Available: http://en.wikipedia.org/wiki/Culture_of_Second_Life. Last accessed 1 Apr 2010. [4] Wikipedia. (2010). Economy of Second Life. Available: http://en.wikipedia.org/wiki/Economy_of_Second_Life. Last accessed 1 Apr 2010. [5] Wikipedia. (2010). Business and organizations in Second Life. Available: http://en.wikipedia.org/wiki/ Businesses_and_organizations_in_Second_Life. Last accessed 1 Apr 2010. [5] Claus Nehmzow. (2006). World first: PA Consulting Group the first major consultancy to open for business in the virtual 3D world 'Second Life' . Available: http://www.paconsulting.com/introducing-pas-media-site/archive/world-first-pa-consulting-group-the-first-major-consultancy-to-open-for-business-in-the-virtual-3d-world-second-life/?locale=en. Last accessed 1 Apr 2010. [6] Aloft. (2006). Aloft in Second Life. Available: http://www.virtualaloft.com/. Last accessed 1 Apr 2010. [7] Tom Krazit . (2006). Dell sets up 'Second Life' shop, offers PCs to residents. Available: http://news.zdnet.com/2100-9595_22-150284.html. Last accessed 1 Apr 2010. [8] Second Life. (2007). Case Studies & Success Stories. Available: http://secondlifegrid.net/casestudies. Last accessed 1 Apr 2010. [9] Linden Lab. (2009). How Meeting In Second Life Transformed IBM's Technology Elite Into Virtual World Believers. Available: http://work.secondlife.com/en-US/successstories/case/ibm/. Last accessed 1 Apr 2010. [10] Linden Lab. (2009). Intel Saves Budget and Goes Green with a Virtual World Conference. Available: http://work.secondlife.com/en-US/successstories/case/intel/. Last accessed 1 Apr 2010. [11] Linden Lab. (2009). Simulation Training and Prototyping in Virtual Worlds: Northrop Grumman in Second Life. Available: http://work.secondlife.com/en-US/successstories/case/ngc/. Last accessed 1 Apr 2010. [12] Linden Lab. (2009). Engaging and Interactive Health & Lifestyle Training for the Global Workforce. Available: http://work.secondlife.com/en-US/successstories/case/cigna/. Last accessed 1 Apr 2010. [13] Linden Lab. (2010). A Vibrant Community and Mixed-Reality Events for Virtual World Business and Policy. Available: http://work.secondlife.com/en-US/successstories/case/meta/. Last accessed 1 Apr 2010. [14] Linden Lab. (2010). Making the Real World Safer: TÜV NORD Group in Second Life. Available: http://work.secondlife.com/en-US/successstories/case/tuvnord/. Last accessed 9 Apr 2010.


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- People Pressures • Work-Life Balance has become Work-Life Integration • Increasing consumerization of technology • Employee expectations of unlimited and flexible access

to information • Quality of consumer technology surpasses what is

available in the workplace

- Market Pressures • Emphasis on user-generated content • Consumer technology driving commerce • Brand perception increasingly driven by

social networks • Always-on real time B2C interaction • Shorter product lifecycles

- Regulatory Pressures • Dangers of unrestricted information sharing • Controlling access in an increasingly complex web of technologies • Data retention and the transience of social interactions • Security for a more flexible and mobile workforce • Risks of technology populism

Enhanced Business

Productivity, Cost Reduction

& Innovation

Behavioral and technology changes are driving pressure on large Enterprises to act and think in a more dynamic and collaborative workplace - one that better reflects the

marketplace and enhances business productivity and innovation.


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Seamless

Connectivity

Workplace Collaboration Experience Today…


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Seamless

Connectivity

„Communication integration‟ Email, IM, Tele presence Video, online conferencing

„Information integration‟ Mash ups, CRM, Search Business Intelligence

„Knowledge integration‟ White boarding, „jams‟, Document creation

„People Integration‟ Social networks, Directory, Search, Presence

„Channel integration Persistent experience across Channel, location and devise‟

„Team integration‟ Blogs, Newsletters The Square, Social Networks

Future Workplace Collaboration Experience


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Kronengold

Example of Cloud Computing: Joanne would like Rich to join the conversation with her and Kyle to discuss the MiniCorp proposal. Because they are team mates, Kyle is able to interrupt Richard and drag him into the chat, even though Richard‟s presence states he is busy.

Realizing the conversation would be more productive on the phone, Joanne upgrades their three-way, text-based conversation into a conference call with a single click. Similarly, Richard is able to share his desktop with the other participants, allowing them to view the latest MiniCorp documents.


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Analysis of the Technology that enables Virtualization Definition: Virtualization "virtualization" in as all-encompassing a manner as possible for the purpose of this discussion: virtualization is a framework or methodology of dividing the resources of a computer into multiple execution environments, by applying one or more concepts or technologies such as hardware and software partitioning, time-sharing, partial or complete machine simulation, emulation, quality of service, and many others. Singh, A. (2004). An Introduction to Virtualization. Available: http://www.kernelthread.com/publications/virtualization/. Last accessed 20 June 2009. A clearer and a simple definition of Virtualization is that - virtualization hides the back-end complexity and adds or integrates new functionality with existing back-end data services.


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A more Technical overview of Virtualization: This diagram shows that the applications, operating systems, storage protocols and disk arrays can be placed in and taken out of the virtualization Layer instantly and they are interchangeable with most technologies and create a common storage pool for storing large amounts of data.


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One of the key reasons for utilizing virtualization is for the purpose of simplifying provisioning – This can in principle create volumes of any size from across physical disk resources, virtual devices can expand volumes as needed, virtualization also enables batch creation of volumes and hosts connections via fiber channel or iSCSI.


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Virtualization also provides seamless Data Mobility – Any-to-any synchronous or asynchronous data mirroring/copying is made possible, It also has several advantages over the current technologies – With Virtualization technologies in place there is Zero downtime during data migration, it automatically initiates disk mirroring, switches to primary target when synchronization completes, and the users do not have to stop running their applications or close them, offers the best data protection across arrays.


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Cloud Computing Survey Results: June– July 2010

Contents

Executive Summary

Methodology

Demographics

Finding 1: Confusion about Cloud Computing Definition

Finding 2: Cloud Computing has Gained Visibility

Finding 3: Core Technologies for Building the Cloud

Finding 4: Influencers Go Beyond IT

Key Recommendations


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Executive Summary As large enterprises cope with a dynamically evolving business environment, IT managers turn to cloud computing as a means to maintain a flexible and scalable IT infrastructure that enables business agility, efficiency and market competitiveness. In June 2010, the author conducted a survey in order to investigate the adoption of cloud computing by enterprise IT managers within a large Blue chip organization. The study found that although significant confusion regarding the definition of the cloud exists, IT managers are aggressively deploying cloud computing initiatives to accomplish business objectives. Additionally, the survey found that widespread enterprise adoption is contingent upon solving access, security and performance concerns. Key findings of the Cloud Computing Survey include the following:

Confusion about the definition of cloud computing

Cloud computing has gained critical mass

Core technologies for building the cloud

Influencers go beyond IT Methodology Applied Research was selected to perform the survey and targeted the following personnel: Manager, Director, VP, SVP Enterprise IT Network Information Security Architecture Development The survey was conducted via email & in person and was performed in June and July 2010. The Survey outcome is based on replies from personnel at a leading blue chip company – due to privacy and security – The survey only contains references to the overall organizational structure & Technology Architecture, no in-depth detail has been included.


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Questions Asked

1) What is your Title? - Director - Technical Architect - Project Manager - Business Analyst - Application Developer/Programmer Analyst

2) What is your involvement with information technology (IT)?

- The IT department reports to me - I manage an IT department - I work in an IT department

3) Cloud computing is a way to increase capacity or add capabilities on the fly without

investing in new infrastructure, training new personnel, or licensing new software - Perfect: This definition explains it well - There is nothing I agree with this definition - I agree with a few things, but mostly not - This is about half right - Almost there, but there are a few parts missing or incorrect

4) Cloud computing allows consumers and businesses to use applications without installation and access their personal files at any computer with internet access - Perfect: This definition explains it well - There is nothing I agree with this definition - I agree with a few things, but mostly not - This is about half right - Almost there, but there are a few parts missing or incorrect

5) Cloud computing is a style of computing in which dynamically scalable and often virtualized resources are provided as a service over the internet. Users need not have knowledge of, expertise in, or control over the technology infrastructure in the “Cloud” - Perfect: This definition explains it well - There is nothing I agree with this definition - I agree with a few things, but mostly not - This is about half right - Almost there, but there are a few parts missing or incorrect

6) At what stage are you with regards to Enterprise Cloud computing? - Not involved or discussing, no plans to do so - Discussion - Trials - Implementing - Using

7) Is the budget for Enterprise Cloud computing dedicated or discretionary?

- Dedicated


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- Discretionary

8) How important are the following technologies in terms of importance to building an

enterprise cloud? [ Server Virtualization, Storage Virtualization, Load balancing / Application delivery controllers, Provisioning systems, Management software, Network Security, Application Security, Access Control] - Not Important - Neither important nor unimportant - Very Important

9) What are the needs driving your interest in cloud computing?

- Efficiency - Reduce Capital Costs - Reduce Operating Expenses - Agility - Make it easier to add/remove services - Better choice - Avoid over-provisioning - Infinite scalability - Reliability - Ease staffing issues - Going Green

10) Who owns the Cloud Computing Budget?

- IT - Application Development - Network Architect - Server Group - Business Owner


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Demographics Five IT departments within a Blue Chip company were contacted; each department had at least 10 – 25 employees worldwide. 24%of respondents were IT Managers, 8% were directors, 12% were Technical Architects, 16% were Project Managers, 27% were Business Analysts, and 37% were Application Developers. No CIO’s were included in this survey.

Of all respondents, 44% manage an IT department, 45% work in an IT department, and the IT department reports to 11%.

8%12%

16%

27%

37%

What is your Title ?

Director

Technical Architect

Project Manager

Business Analyst

Application Developer/Progammer Analyst

11%

45%

44%

What is your involvement with Information Technology (IT)

The IT Department Reports to Me

I Manage an IT Department

I Work in an IT Department


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Finding 1: Confusion about Cloud Computing Definition Cloud computing is well known within the enterprise, but respondents had little agreement on how to define the term.

17%6%

7%

24%

46%

Cloud computing is a way to increase capacity or add capabilities on the fly without investing in new infrastructure, training new personnel, or

licencing new software

Perfect: This definition explains it well

There is nothing I agree with this definition

I agree with a few things, but mostly not

This is about half right

Almost there, but there are a few parts missing or incorrect

24%

6%

5%

23%

42%

Cloud computing allows consumers and businesses to use applications without installing and access their personal files at any computer with

internet access







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Applied Research tested three industry definitions of cloud computing and found the study participants were unable to choose any of them as being “just right.” The study tallied how many respondents marked “Almost there or “This is perfect” for each definition. Based on definitions reported by respondents, the two most popular, each with 68% were: Cloud computing is on-demand access to virtualized IT resources that are housed outside of your own data centre, shared by others, simple to use, paid for via subscription and accessed over the Web. Cloud computing is a style of computing in which dynamically scalable and often virtualized resources are provided as a service over the Internet. Users need not have knowledge of, expertise in, or control over the technology infrastructure in the “Cloud”

Defining the cloud The survey was also put forward to a group of IT managers and network architects in order to establish a firm definition of cloud computing. The participants debated the merits of each definition in the survey, and agreed upon the following as a standard definition for cloud computing: “Cloud computing is a style of computing in which dynamically scalable and often virtualized resources are provided as a service. Users need not have knowledge of, expertise in, or control over the technology infrastructure in the "cloud" that supports them. Furthermore, cloud computing employs a model for enabling available, convenient and on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage,

35%

7%6%19%

33%

Cloud computing is a style of computing in which dynamically scalable and often virtualized resources are provided as a service over the

Internet. Users need not have knowledge of, expertise in, or control over the technology infrastructure in the "Cloud"







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applications, services) that can be rapidly provisioned and released with minimal management effort or service provider interaction.”

Finding 2: Cloud Computing has Gained Visibility Though IT managers were slightly confused about the exact definition of cloud computing, the technology has become widespread. 99% of respondents mentioned that they are currently discussing or implementing some sort of an enterprise computing solutions. 82% of respondents report they are in some stage of trial, implementation, or use of enterprise clouds.

Budgetary allocation

0% 10% 20% 30% 40% 50%

Not involved or discussing, no plans …

Discussion

Trials

Implementing

Using

Not involved or discussing, no plans to do so

Discussion Trials Implementing Using

Series1 1% 17% 16% 22% 45%

At what stage are you with regards to Enterprise cloud computing?

34%

66%

Is the budget for Enterprise cloud computing dedicated or discretionary?

Discretionary Dedicated


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As director’s move to incorporate cloud computing into their IT strategy, budgets are being adjusted to accommodate the shift. 66% of respondents report they have a dedicated budget for the cloud. Additionally, 71% of respondents expect cloud computing budgets to grow over the next two years.

Finding 3: Core Technologies for Building the Cloud

As budgets for cloud computing increase, IT managers are examining critical technologies for building the infrastructure behind the cloud. 90 percent of respondents named access control as somewhat/very important for building the cloud. An additional 89 percent listed network security as a core technology. 88 percent of respondents listed both server and storage virtualization as essential technologies in the cloud.

12% 12% 15% 16% 14% 11% 11% 10%

43% 49% 40% 41%38%

37% 40%52%

45% 39% 45% 43% 48% 52% 49%38%

Server Virtualization

Storage Virtualization

Load balancing / Application

delivery controllers

Provisioning systems

Management software

Network Security

Application Security

Access Control

How important are the following technologies in terms of importance to building an Enterprrise

cloud?

Not Important Somewhat important Very Important


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The key cloud computing technologies listed by respondents fall in line with needs that drive IT managers’ interest in the cloud. 77 percent of respondents reported that efficiency is a driver for public clouds. Additionally, respondents claim that reducing capital costs (68 percent) and easing staffing issues (61 percent) respondents listed reducing capital cost (63 percent), agility (50 percent) and easing staffing issues (50 percent) as drivers.

Finding 4: Influencers Go Beyond IT Though IT is a part of cloud computing, it is not the only influencer over an organization’s cloud computing policies. Survey respondents claimed that IT generally controls the cloud computing budget (64% compared to the 13% each held by application development and technical architects). According to respondents, the top influencers for public clouds include IT (45%), application development (41%) and LOB business stakeholders (41%).

0% 20% 40% 60% 80%

Efficiency

Reduce Operating Expenses

Make it easier to add/remove services

Avoid over-provisioning

Reliability

Going Green

Efficiency

Reduce Capital Costs

Reduce Operati

ng Expense

s

Agility

Make it easier

to add/remove

services

Better choice

Avoid over-

provisioning

Infinite scalabili

ty

Reliability

Ease staffing issues

Going Green

Series1 77% 68% 51% 58% 57% 47% 55% 53% 45% 61% 51%

What are the needs driving the interest in Enterprise cloud computing?


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Key Recommendations - Cloud computing touches many different technologies. Organizations should invest time

understanding how the cloud will affect access control, network security, virtualization and other core network components before implementing a cloud environment.

- Cloud computing deployments should be a cross-functional effort with IT, application

developers, network architects, and other critical business stakeholders weighing in prior to cloud purchasing decisions.

0% 10% 20% 30% 40% 50% 60% 70%

IT

Application Development

Network Architect

Server Group

Business Owner

ITApplication

DevelopmentNetwork Architect

Server Group Business Owner

Series1 64% 13% 13% 5% 5%

Who owns the cloud computing budget?

Documents

MSc. Dissertation Gopi K Manivannangopikrishna.co.uk/uploads/5/2/6/1/5261928/gopi_manivannan_-_msc... · Gopi Manivannan PG Dissertation - 4 - Introduction: ... Technical Architect