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SERIE INNOVATION TRENDS Challenges cloud computing Hybrid clouds win over business CLOUD MANY BUSINESS SERVICES ARE IN THE CLOUD. BUT DO YOU KNOW HOW TO
SERIE INNOVATION TRENDS Challenges cloud computing Hybrid
clouds win over business CLOUD MANY BUSINESS SERVICES ARE IN THE
CLOUD. BUT DO YOU KNOW HOW TO TAKE ADVANTAGE OF THEM? 02 01 04 03
CASE STUDY Amazon Web Services INTERVIEW PEDRO PRESTEL SERVICES 05
INFOGRAPHIC Chronology of cloud What is cloud Cloud public, private
or hybrid?
Slide 2
Every day, more and more companies are using business solutions
on the cloud. According to an article published recently in Forbes,
it has been estimated that in coming years, 47% of companies'
marketing departments will have more than 60% of their
applicationsrecently in Forbes The challenges of cloud computing:
from the revolution to the implementation in our everyday lives 01
Cloud computing is unstoppable. Young and established companies
increasingly rely on the cloud, whose rapidly evolving technology
will influence all aspects of daily life ( ).all aspects of daily
life on the cloud. According to Forbes, specifically databases
(57%), email (54%) and business-oriented applications such as CRM
(49%) are the three main applications in which companies are going
to invest in coming years. SERIE INNOVATION TRENDS APRIL 2015
www.centrodeinnovacionbbva.com/en
Slide 3
The cloud is everywhere, even though it is still invisible for
many. "When I ask my students if they use cloud computing services,
very few say that they do. And almost all of them do, because they
have Gmail or use Dropbox, for example". The professor from the
Pablo de Olavide University and director of the Masters Degree in
Cloud Business at the Seville centre, Vctor Bauls, gives a very
basic summary of the place that the cloud has in anyone's day to
day lives. People really aren't very aware of its existence
although companies are using cloud computing on an increasingly
regular basis.Vctor Bauls SERIE INNOVATION TRENDS APRIL 2015
Slide 4
In Spain, the study on The current and future status of
software in Spain in 2015 calculates that 62% of companies rely on
cloud computing to store their management, marketing and sales
software, although only 15% exclusively store their data on the
cloud. 54% store data on their own servers and 29% entrust their
data to the cloud and to the server. 30% are still suspicious of
software solutions that are stored on the cloud.the study on The
current and future status of software in Spain in 2015 The main
services that companies look for in Spain when using cloud
computing are those related to the company's email, intranet and
backups. A recent study by Microsoft (Beyond infraestructures:
Cloud 2.0 Signifies New opportunities for Cloud Service Providers)
highlights that companies' main expectations when investing in
platforms on the cloud are to: improve the quality of the
technology of their platforms and applications (22%), make their
business grow (18%) and provide better customer service (13%).
(Beyond infraestructures: Cloud 2.0 Signifies New opportunities for
Cloud Service Providers) In fact, over the next two years it is
estimated that in the United States 34% of companies will have 60%
of their applications on the cloud. The cloud is the engine of
young businesses ( ) such as Dropbox, Airbnb and Soundcloud and
they are taking on an increasingly more important role in
established companies, such as Shell and Mapfre.The cloud is the
engine of young businesses SERIE INNOVATION TRENDS APRIL 2015
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Slide 5
Cloud computing challenges The main challenges faced by cloud
computing in the immediate future, according to Gartner, analysts,
are the following three:Gartner Cloud - client computing: Union of
the cloud with intelligent mobile devices which will continue to
drive the applications that reside in the cloud. Computing
everywhere: Ubiquitous access (from anywhere and at any time) to
computing capacities. Infrastructure and applications defined by
software: dynamically model the infrastructure and the
communications required by each application. Advanced analysis:
Companies have to manage huge amounts of data to provide the
correct information to the correct people at the right time. Work
will be put into analytical technologies that invisibly integrate
into all the applications. SERIE INNOVATION TRENDS APRIL 2015
www.centrodeinnovacionbbva.com/en
Slide 6
"There are many loopholes and that is an obstacle for the
cloud. Companies and citizens demand security", he concludes. Bauls
agrees with the ubiquity and the importance of the data analysis
highlighted by the experts. "We want all devices to be integrated
in the cloud for them to be ubiquitous, and increasingly connected
and integrated with reality. Alert the customer, serve them, using
technology". The professor also agrees that a key for the future is
"connectivity to devices". But to achieve this connectivity that
allows companies to access data in the cloud from all devices, he
emphasizes that we must work "tirelessly on security and privacy (
). "tirelessly on security and privacy SERIE INNOVATION TRENDS
APRIL 2015 www.centrodeinnovacionbbva.com/en
Slide 7
What the cloud is like on a day to day basis: Intelligent
cloud: The objects connected to the cloud become "intelligent".
Home heating, movie recommendations to watch on HD TV, it's all
controlled by an analytical system that works from the cloud. One
example is CityTouch, technology used in London and Prague to
manage city lighting. Thanks to the real time information from the
streets that reaches the cloud, street lighting can be managed,
measures can be taken if there is excess light contamination, it's
possible to ensure that deserted streets are lit, etc. Social
cloud: The cloud is revolutionizing healthcare, as an example. The
cloud allows hospitals to share all their information and doctors
can access the diagnoses of thousands of patients and find out the
exact information about how treatments have worked or how they are
progressing in real time. Analytical cloud (Big Data), on demand
(Business Intelligent): Analytics plays an important role in
companies, which receive information quickly and can develop
products adapted to their customers. This is the case for the
Financial Times, whose step into the cloud has enabled it to
rapidly manage all of the advertiser's information and the sales
activities and manage subscribers' data to learn about their
preferences. SERIE INNOVATION TRENDS APRIL 2015
www.centrodeinnovacionbbva.com/en
Slide 8
Hybrid clouds win over businesses 0202 Companies are opting for
this type of cloud computing, as the combination of public and
private clouds enables cost reductions and ensures security (
).reductions and ensures security Public, private or hybrid clouds.
These are the three different forms of cloud computing and when
choosing between them, companies seem to be opting for the agility
and security offered by the hybrid version, which combines both
public and private benefits. Public cloud services are supplied by
a provider through the Internet. It is fast, easy, costs are shared
among everyone, and it is able to increase computing if demand
increases. The process is transparent to the user and allows
information to be shared when working on SERIE INNOVATION TRENDS
APRIL 2015 www.centrodeinnovacionbbva.com/en
Slide 9
projects with other people or companies. The private cloud has
the same characteristics as the public one but is exclusive. It
ensures the control and security of critical data, although this
entails a greater cost: it requires more capital investment and a
team to manage the cloud efficiently. Conversely, the hybrid cloud
Conversely, the hybrid cloud ( ) is a combination of private and
public clouds from multiple providers. The resources from a public
cloud can be used to increase the capacity of a private one at
times with high bandwidth consumption peaks, without having to make
the capital investment that this would entail. In a company, the
hybrid cloud makes it possible not to have to migrate all services
to the cloud where there is critical and confidential information
such as, for example, transactions in a database this information
would be in the private cloud and, on the other hand, it allows for
increasing or decreasing processing on demand at any given time
(this would be done in the public cloud). The infrastructure is
adapted, achieving cost savings by not having an extended team when
it is not needed. The biggest challenge of these clouds is security
and ensuring that all providers can communicate with each other.
SERIE INNOVATION TRENDS APRIL 2015
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Slide 10
In hybrid clouds the public cloud for customers outside IT is
combined with the private one for those within IT. You can use a
public cloud to interact with users while keeping your data
protected in your private cloud. Investment is not made in private
clouds because there are services that exist in public clouds -
much faster - and as security is of concern to businesses, an SaaS
(software as a service) application can be used, in which the
application provider can create a private cloud exclusively for the
company inside its firewall.SaaS (software as a service) Coca-Cola
and NASA, among many others, have opted for hybrid clouds to get
the most out of their business. To share information in the case of
the former, and in the case of NASA to strengthen space exploring
missions and to improve life on Earth.space exploring missions and
to improve life on Earth. SERIE INNOVATION TRENDS APRIL 2015
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Slide 11
Among the three options, companies seem to favor hybrid clouds
( ). Almost two thirds of respondents (64%) adopts the hybrid cloud
for its agility and the security it offers. Its deployment has
grown 9% since 2013, with an adoption rate of 27% worldwide, being
highest in Europe, Middle East and Africa, respectively, according
to the EMC study conducted on more than 10,000 IT managers in 33
countries.favor hybrid clouds according to the EMC study Developed
markets with the most advanced IT economies lead the adoption of
cloud computing, while emerging markets are more reluctant and have
lower levels of consumption of cloud computing in general. In
Spain, 68% of respondents believe that cloud computing allows
companies greater flexibility and security but with nuances: only
22% would be satisfied to migrate most of its applications to the
public cloud. Security is the greatest concern when migrating data.
Proof of this is what the giant IBM decided to launch in February
at Interconnect 2015: the development of a hybrid cloud so
sensitive data will not have to leave the country of origin and it
will be cloud computing applications that will travel to manage
data with servers from each of the countries.Interconnect 2015: Big
blue has opted to create a network in different countries amid
growing concern in the industry about where data and the privacy of
this information is hosted. A strategy that allows it to provide
services to companies that handle sensitive information or
governmental institutions, which are prohibited from migrating
their data out of the country. In this way they can approach cloud
computing without leaving home. The conquest of the hybrid version
SERIE INNOVATION TRENDS APRIL 2015
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Slide 12
How the combination of EC2 and S3, cloud computing and storage
from the giant Jeff Bezos, has revolutionized the technological and
business world ( ). technological and business world The total
figures from Amazon are enough to make your head spin (with a
turnover of $88.988 billion in 2014), although information from the
IT services in the cloud is one of the secrets that they haven't
revealed. We still haven't seen any information published, but the
U.S. giant has promised to provide figures this quarter, and what
does seem clear is that Amazon Web Service (AWS) reigns at present
in the world of the cloud.Amazon Amazon Web Service (AWS) Amazon
Web Services reigns in the cloud world 03 /CASE STUDY SERIE
INNOVATION TRENDS APRIL 2015 www.centrodeinnovacionbbva.com/en
Slide 13
In 2002, a plane landed in Seattle. The plane was boarded by
the funder of O'Reilly Media, Tim O'Reilly, who, despite having
started a dispute a few years ago due to the 'one click patents
with Jeff Bezos, wanted to meet with the founder of Amazon to
convince him to unveil the Amazon.com sales information. This means
that since the editors know the market trends and what people like,
they can decide what to publish or what to put to one side, and
find out in which direction the market is going ( ). O'Reilly
Mediain which direction the market is going In this meeting, Bezos
couldn't see how Amazon could benefit from sharing this information
with third parties. According to the book The Everything Store:
Jeff Bezos and the Age of Amazon, OReilly stated that: Companies
shouldn't just think about what technology gives them, but rather
what they can give to others. Summarizing his words, the Irishman
showed the founder of Amazon what they have managed to achieve with
their technology: the software known as Amarank allows them to
"scrape the surface" of the sales information on the Amazon.com
website. He suggested that they develop the API (Application
Programming Interfaces) tools. SERIE INNOVATION TRENDS APRIL 2015
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Slide 14
The APIs enable developers to create specific systems for
operating systems, simplifying the work of a programmer, as they
don't have to write codes from scratch, and they enable the IT
programmer to use functions to interact with the operating system
and with other programs. These interfaces enable third parties to
gather information on the products and prices and rate sales.
O'Reilly convinced Bezos to leave parts of the website accessible
and allow other websites to develop services on top of them. By
sharing the information, Amazon encourages hundreds of programmers,
which in turn creates an internal work group within the company:
Amazon Web Services. The company was launched in 2006, and almost
10 years later, what began as an experiment has managed to get its
claws into the largest section of the cloud, with a value of around
$155 billion, according to data from Gartner consulting. AWS
doesn't publish figures regarding its profit, but it has a million
clients in 190 countries thanks to the 28 data processing centers
distributed throughout 11 regions. SERIE INNOVATION TRENDS APRIL
2015 www.centrodeinnovacionbbva.com/en
Slide 15
How it worksHow it works ( ) The Amazon Web Services are cloud
computing services. Companies save on infrastructure and pay for
what they use. AWS rents IT power by the hour and stores data by
gigabytes: The AWS Services Amazon S3 The hard drive in the cloud
is one of Amazon's star services. Simple Storage System (S3) is a
simple API used to save and recover files. Focused on the
developer, files can be saved on disk, externally or unlimited. EC2
This is the other of the giant's star services, arising from the
creation of "elastic" servers. These servers can be created
manually (using the control panel) or using the API. It's possible
to automate the creation of servers, adding (if necessary)
temporary servers for specific tasks and destroying them later
(thus lowering costs). In EC2, clients pay for gross traffic volume
and for using the CPU. SERIE INNOVATION TRENDS APRIL 2015
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Slide 16
RDS The EC2 of databases. Automating backup tasks and
maintenance. Elastic Load Balancing Balances loads between
different instances, respecting the user sessions and focusing on
the performance of the machines when distributing requests. It can
be configured in just a few minutes. Elastic IP Service for mapping
the fixed IPs to EC2 machines. CloudWatch Monitoring and alarm
service. Solution for managing the server resources. Cloudwatch
doesn't have additional costs, and the value of the metrics is
recovered every five minutes. The AWS Services SERIE INNOVATION
TRENDS APRIL 2015 www.centrodeinnovacionbbva.com/en
Slide 17
Amazon was here first and they set the trends. It offers an
environment to hire virtual machines, for both small companies or
individuals and for intensive computing", said Ignacio Blanquer,
professor of the Information Systems Department at the Technical
University of Valencia and member of the Institute for the Research
of Molecular Imaging Instrumentation. Blanquer has used AWS
services for his genetic analysis studies. "We use the machine with
genome assembly applications", said the professor, which leads to
cost reductions thanks to cloud computing: "The resources are
increased based on the workload, so as the quality remains the
same. If there is a peak, the number of servers is increased, and
vice versa. It also enables us to store a huge amount of data".
Blanquer pointed out that the data "is controversial". According to
the professor, it violates the laws of many countries by using the
public cloud. In the case of medical information, which is the main
target of the cloud, certain conditions have to be guaranteed which
still don't exist and which are under study". Another fear "is that
the company shuts down and the user loses their information", he
points out. The latter doesn't seem to be a threat for AWS, whose
combination of EC2 and S3, cloud computing and storage, has
revolutionized the technological and business world. Companies and
start-ups don't have to bankrupt themselves or waste money by
buying materials or hiring engineers. The threats for the Seattle
giant come from Microsoft, Google and IBM, which are putting all
their effort into focusing on a market they have arrived late for,
but with a goal of standing up to Bezos. SERIE INNOVATION TRENDS
APRIL 2015 www.centrodeinnovacionbbva.com/en
Slide 18
The president of Eurocloud Espaa, an association of 65
companies, and the director of operations of Verizon Terremark,
define Cloud computing as a disruptive process that prompts
companies to be more efficient by allowing access to information at
any time. Prestel analyzes the present and future of cloud
computing ( ).Eurocloud Espaa65 companiesfuture of cloud computing
04 /INTERVIEW "The Cloud is a democratizing technology" PEDRO
PRESTEL SERIE INNOVATION TRENDS APRIL 2015
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Slide 19
What is the advantage of being in the Cloud for companies? The
Cloud eliminates access restrictions in computing, makes IT tools
accessible to the entire world. The Cloud is a democratizing
technology, allowing work on the global market and to get to
customers all over the world. It also entails an innovation factor
as we must think outside of our usual mindset. It is a disruptive
process that prompts companies to be more efficient given that the
entire world may access the information at any time. option other
than to switch to the cloud and reap benefit from its advantages.
What are the inconveniences? Users must be conscious of the risks:
a contingency or continuity business plan must always exist. It is
vital that information not disappear. We have to be conscious that
the Cloud occupies a physical place although it doesn't seem to do
so. All resides in data centers. It is therefore logical to have
backup services with other providers; guaranteed services in
various data centers. Banks, for instance, store the information in
two or moredata centers. Do the way of working and the relationship
with customers have to change? With the Cloud everything changes.
It changes one's way of thinking and acting. As all of the
information resides in the Cloud, it becomes more accessible and
conditions all negotiation processes. The way of working changes as
it forces one to interact with others differently; communication
and innovation are vital. Why do companies have to trust the Cloud?
It is a journey without return. We are already dependent on Cloud
computing ( ). There's no backtracking, we have no We are already
dependent on Cloud computing SERIE INNOVATION TRENDS APRIL 2015
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Slide 20
Is security an issue? This is another of the aspects that must
be supervised. The supplier must guarantee compliance with the
European legal framework, although one must not forget that
security starts in-house. The Cloud is tremendously secure but one
must not forget that personal data have to be regulated by law and
not accessible to third parties. It is very difficult for third
parties to access the dataalthough we see it in movies it is truly
difficult to do because the data are encryptedbut the customer must
never leave his or her data without supervision. What sectors do
you believe will be most revolutionized by Cloud computing? Cloud
services are the cement of a change that has already arrived ( ).
It revolutionizes education, health... it is a basic pillar of Big
Data. Before we experienced great difficulties in analyzing large
quantities of data, we used a sample and extrapolated. Now the
Cloud allows us to analyze the entire data set, we will know how we
interact every day, our consumption behavior, how we entertain
ourselves, how we communicate; it will help in medical and
scientific research... The Cloud is already everywhere.a change
that has already arrived SERIE INNOVATION TRENDS APRIL 2015
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Slide 21
What position does Spain occupy with respect to Europe in the
world of Cloud computing? We are a little behind the rest of
Europe. Disparate data indicate that 45%, 50%, or even 60% of
companies are using Cloud computing. We are behind countries like
Germany, the United Kingdom, or France, but the degree of
implementation in large companies is quite high. We must also take
into account that although we sometimes do not know it whether we
are users or companieswe use some type of Cloud solution in our
devices. There is still some road ahead especially for SMEs, many
of which are still working in the traditional way for right now
because it works, for now, and they are not even considering
changing. The same happens with micro-companies with few
professionals. SERIE INNOVATION TRENDS APRIL 2015
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Slide 22
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INFOGRAPHIC "The Cloud" is a network of servers. Some servers
provide an online service and others allow you to store and access
data and information without necessarily install any software on
your computer or have all the data stored in your company.
Slide 24
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INFOGRAPHIC In the cloud infrastructure, platforms, software or
processes are provided by external IT services.
Slide 25
BBVA Innovation Center creates the Innovation Trends Series to
keep you updated with cutting edge innovation trends and their
appliance to your everyday life. In this papers you will find all
key facts, analysis, case studies, interviews with experts and
infographics to visualize the data that each and every trend
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