The Myths and Magic of Cloud Computing and How it is Revolutionizing the World Jay Roy Chief Executive Officer “Practical Intelligence for Ensuring Profitability” IMA DFW - Fall 2011 | Dallas, TX
Confused about "The Cloud"? Learn the basics of cloud computing and how you and your organization can benefit from it right now.
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1. The Myths and Magic of Cloud Computing and How it is
Revolutionizing the World Jay Roy Chief Executive Officer Practical
Intelligence for Ensuring Profitability IMA DFW - Fall 2011 |
Dallas, TX
2. Cloud Computing Confusion at its Best vs. 1
3. What is Cloud Computing? Learning Objectives1. What is It
and why has it suddenly become popular?2. Why should our company
move to the cloud?3. As a financial or IT professional, why should
I care about it?4. What should I fear about the cloud and what are
my risks?5. What technical things do I need to know about it?6. How
can I add value to my organization using the cloud?7. How do I use
this as another tool in my tool box? 2
4. Poll Question Poll Question 1 Do you think cloud computing
is all hype about another technology fad OR really here to stay?
3
5. Table of Contents What Is Cloud Computing? Basic Primer,
Jargon and Technical details 7 The Myths (and Potential Downsides)
of Cloud Computing 25 The Magic (and Potential Benefits) of Cloud
Computing 29 The Implications of the Cloud 35 How the Cloud is
Revolutionizing the World of the Finance Executive 39 How You can
Add Value to Your Organization Using the Cloud 42 Examples of Cloud
Computing in Daily Life 47 Conclusion and Key Takeaways 51 2011
Predictive Dashboards LLC 4
6. Poll Question Poll Question 2 Do you care if your personal
health information is being stored at a on- site premise or in the
clouds? 2011 Predictive Dashboards LLC 5
7. Poll Question Poll Question 3 Do you care if your
organizations information (accounts receivable) is being stored at
a on-site premise or in the clouds? 6
8. What is Cloud Computing? Basic Primer, Jargon and Technical
Details 7
9. What is the Cloud? The term cloud is used as a metaphor for
the Internet representing infrastructure Originally, a cloud
drawing was used to depict a telephone network; Currently it isused
to depict the infrastructure as the Internet on computer network
diagrams 8
10. What is Cloud Computing? - Primer Cloud computing is the
delivery of computing as a service rather than a product, whereby
shared resources, software, and information are provided to
computers and other devices as a utility (like the electricity
grid) over a network (typically the Internet). A standardized IT
capability (services, software, or infrastructure) delivered via
Internet technologies in a pay-per-use, self-service way 9
11. What is Cloud Computing? - Primer Cloud Computing (CC) is a
broad term for delivering hosted services over the Internet by
service providers Cloud computing has a few unique characteristics
which separates it from traditional hosting: Services are sold on a
unit basis (e.g. per minute/hour) similar to buying services from a
utility (pay for what you use) Services can be purchased on an
on-demand or as-needed basis and scalable to adjust to customer
needs Services are offered and fully managed by a third-party
10
12. What is Cloud Computing? A Snapshot of Configurations
11
13. What is Cloud Computing? - Primer Cloud Computing has 3
main categories of service delivery: Software-as-a-Services (SaaS)
Platform-as-a-Service (PaaS) Infrastructure-as-a-Service (IaaS)
12
14. What is Cloud Computing? - SaaS Software-as-a-Service: A
software (service) delivery model in which business applications
and their data are hosted by a Cloud Provider in a cloud and
accessed by users through a thin client (web browser). Examples:
Google Mail or Salesforce.com 13
15. Example of SaaS Salesforce.com 14
16. What is Cloud Computing? - PaaS Platform-as-a-Service: A
service delivery model in which a Cloud Provider allows customers
to rent virtualized servers and associated services for running
existing applications or developing and testing new ones. Examples:
Google Apps Engine or Force.com 15
17. Example of PaaS Google Apps Engine 16
18. What is Cloud Computing? - IaaS
Infrastructure-as-a-Service: A provisioning model in which Cloud
Provider supplies all of the infrastructure including, offering the
customer the ability to deploy and run software, including OSs and
applications. The Cloud Provider owns the equipment and is
responsible for maintaining and operating it. Examples: Rackspace,
Amazon Web Services 17
19. Example of IaaS Amazon Web Services 18
20. Why has the Cloud suddenly become so popular? Outsourcing
Robust Apps & User Interfaces Services-based Economy Critical
Mass Shrinking IT Shared Services Budgets Distributed Weak Economy
Computing Cheap Pervasive Increased Rising Broadband Computing
Licensing Costs Speeds 19
21. What is Cloud Computing? Types of Clouds Cloud Computing
has only one Internet but three deployment methods: Private Single
tenant it is cloud infrastructure operated solely for a single
organization (i.e. you), whether managed internally or by a
third-party and hosted internally or externally. (e.g. Your Company
Cloud) Public Many tenant An offering from a service provider to
many clients who share the cloud processing power concurrently. The
service providers public cloud clients share applications,
processing power and data storage space communally. Client data are
commingled, but segregation is provided through the use of metatags
Hybrid Many tenant is cloud infrastructure composed of two or more
clouds, private or public, that remain unique entities but are
bound together by standardized technology that enables data and
application portability 20
22. What is Cloud Computing? Types of Clouds Other Cloud
Computing deployment methods: Virtual Private Cloud is a private
cloud existing within a shared or public cloud (e.g. Amazon Web
Services) Community Clouds A private-public cloud with users having
a common connection or affiliation, such as a trade association,
the same industry or a common locality. The community cloud
business model allows a CSP to provide cloud tools and applications
specific to the needs of the community. When the community is in a
PaaS cloud, the SOA applets can be specific to communal
requirements, e.g., business-process-specific, industry-specific.
(e.g. ) Variety of Other Cloud Solutions in progress 21
23. What is Cloud Computing? Attributes Defining Clouds Source:
ISACA IT Control Objectives for Cloud Computing 22
24. What is Cloud Computing? A Visual of a Private Cloud Data
Center Internet Private Cloud Your Enterprise 23
25. Quick Comparison between Private vs. Public Clouds Public
Cloud Private Cloud Public Cloud Private Cloud Hosted at Service
Provider Site Hosted at an Enterprise or Service Provider Site
Supports Multiple Customers Supports only one Customer Often
utilizes shared infrastructure Does not utilize shared
infrastructure Supports connectivity over the Internet Supports
connectivity over private Suited for information that is not
sensitive network or the Internet Can be cheaper than private cloud
Suited for information that is sensitive and demands high security
24
26. The Myths (and the Potential Downsides) of Cloud Computing
25
27. The Myths (and Potential Downsides) of Cloud ComputingAre
the following Myths or Truth?1. CC can t handle my environment s
security & privacy requirements2. Migrating our work
environment to the Cloud is just too hard3. CC is too expensive and
or potential savings is too good to be true4. CC is an IT project
& has no real business value5. CC does not integrate well with
on-premise or other clouds solutionsAll of these concerns have some
level of validity but Without doing your home work, the myth
becomes reality! 26
28. Debunking Myth 1 Cloud Computing can t handle my security
and privacy requirementsFacts 50% or more of traditional security
breaches are perpetrated by internal personnel Not all cloud
solutions are equally secure or insecure (reason for hybrids) Some
security risks are very real and some are perceivedOvercoming the
Myths Your responsibility Perform a security analysis Use
encryption technologies Use federated identity management systems
27
29. Debunking Myth 2 Migrating our work environment to the
Cloud is just too hardFacts The decision regarding which
applications, infrastructure and data to migrate willbe one of the
biggest technological hurdles not to mention latency and
interoperability Not all cloud provider do migration well,
migration is still your responsibility Integration points are
opportunities for failure missing links (UI, data,
functional)Overcoming the Myths Your responsibility There are many
ways to migrate: virtual machines, web-interfaces or porting to
acloud platform but figure out how you will do this and by whom
Have your own migration plan and very solid back up plan 28
30. The Magic and the Benefits of Cloud Computing 29
31. The Magic and Benefits of Cloud ComputingAre the following
Magic or just Illusions?1. Cloud computing will provide dramatic
savings in IT costs2. Our organization will be able to execute
strategies faster3. Cloud computing will free up internal resources
for strategic tasks4. Cloud Computing will enhance performance and
stability5. Cloud computing will enhance our flexibility and usage
of resources 30
32. The Magic of Cloud Computing Lucky Rabbits Foot Cloud
Computing will provide dramatic savings in IT costsFacts Cost
Savings are as good as your projected usage. Minimum costs and
hiddencharges need to be considered. Need to consider intangible
costs of moving infrastructure and people s time Need to consider
how you are going to save on what IT costs (hardware,
software,etc.)Validating the Magic Your responsibility Due
diligence through adequate planning and up front discussions with
cloudprovider is necessary to realize benefits. Develop a road map
of workloads to be migrated and cost out the savings 31
33. Accounting for IT Investments using Cloud Economics Source:
Forrester Research, Inc. Talking to your CFO About Cloud Computing
32
34. Accounting for IT Investments using Cloud Economics Source:
Forrester Research, Inc. Talking to your CFO About Cloud Computing
33
35. Accounting for IT Investments using Cloud Economics Source:
Forrester Research, Inc. Talking to your CFO About Cloud Computing
34
36. The Implications of the Cloud 35
37. Poll Question Poll Question 4 Do you think the average
business person cares if his business information is in the clouds?
36
38. The Implications of Cloud Computing Who Cares? Yeah! I m
Concerned Whatever!?! Some CIOs Some CIOs General Business Person
And And Or IT Geeks Corp Attorneys Hip 20 Something Conversations @
Work 37
39. The Implications of the Cloud To Cloud or Not to Cloud
Dealing with fear or lagging behind the curve Organization
structure and legal boundaries Strategy and competitive advantage
considerations Talent and People aspects Cost considerations
including Service Level Agreements SLAs, Trusted vendors? Standards
to fall back on? Security, risks and business continuity
considerations (What-if there is a breach?) Work-Life Balance
considerations Being On 38
40. How the Cloud is Revolutionizing the World of the Finance
Executive 39
41. CC is Revolutionizing the World of the Finance ExecutiveCC
impacts us in a variety of ways Decision making about how the
organization delivers its products and services tointernal
customers will change The focus of Auditing and Accounting will
move to the digital era Business Models will be in flux especially
in the area of variable and overhead costs Risk & Reputation
Management will take precedence in the short-term Talent &
Knowledge The CC Department? Success Metrics Its working! Really?
Outsource or Not Outsource Impacts on you and your customers
Work-Life Balance Being On 24/7 40
42. CC is Revolutionizing the World of the Finance Executive
Accounting for IT investments will be dramatically simplified The
Financial Executive will shift focus to a monitoring and
benchmarking focus The finance function will be scrutinizing the
value of internal IT resources and costsversus outsourcing IT
activities from the cloud. The finance team will be responsible for
negotiating subscription fees instead oflicense fees Cloud
providers will have to justify and quantify their value in terms of
security,compliance, service levels, compared to the marketplace
Finance department will be monitoring: subscription fees/per-user
fees, resourceusage and direct costs 41
43. How You can Add Value to your Organization 42
44. How You can Add Value to your Organization Educational
Perspective Educate your personnel of what the cloud is Host a
Lunch & Learn for yourteam to understand the technical,
administrative, value-adds/detracts details Research specific cloud
offerings specifically to your industry or niche Remember Caveat
emptor Buyer beware Not all cloud services are equal Understand the
contractual arrangements i.e. Service Level Agreement ( SLA )and
identify the gotchas for people involved with purchasing the
service Understand how your IT audit function will audit the Cloud
Review the latestrequirements from ISACA If considering cloud
adoption, understand and develop a road map forimplementation and
migration of applications used in your function 43
45. How You can Add Value to your Organization
Administrative/Contractual Perspective Perform a Risk and
Cost/Benefit Analyses on Cloud Computing for yoursituation
Understand the contractual arrangements i.e. Service Level
Agreement ( SLA )and identify the gotchas for people involved with
purchasing the service Assist in the development of the project
plan to migrate to cloud if you own thefinancial applications
Improve your budget - Stop paying for services that you may use for
free Find out what your recourse would be if cloud computing isn t
for you i.e.what things do you own (e.g. data, applications, etc.)
and how to move off from thatcloud provider 44
46. How You can Add Value to your Organization Security and
Technological Perspective Review and update your IT governance and
IT change management processeswith new cloud policies and practices
into your Sox and compliance requirements Perform and hire capable
professionals to advise, develop and test cloud securityregardless
of the delivery model you utilized Incorporate potential cloud
failures into your business continuity and disasterrecovery
planning requirements Keep abreast of changes through governance
committees including cloudcomputing issues and identify a resource
for providing regular briefings Attend security and technological
conferences, webinars and user groups toensure your business and IT
personnel are competent in this domain Get familiar about costs to
maintain an appropriate level of security see it as aninvestment
not an expense 45
47. How You can Add Value to your Organization Business Process
and Internal Controls Perspective Understand how your business
processes will change and affect financial reporting Understand how
your IT audit function will audit the Cloud Review the
latestrequirements from ISACA Identify and incorporate into your
Enterprise Risk Assessments the new risksresulting from using cloud
computing Discuss with your Audit Firm how changes will affect your
audit 46
48. Examples of Cloud Computing in Daily Life 47
49. Case Study: The New Start-Up (Cloud Computing Start-Up) A
next-generation start-up that nearly used all cloud services to
begin its operations48
50. Examples of Cloud Computing that we may be familiar with
49
51. Case Study: Business Intelligence (BI) in the Clouds
50
52. Case Study: Business Intelligence (BI) in the
CloudsChallenges Predictive Dashboards had to Overcome: Choosing an
infrastructure provider was challenging Understanding the jargon,
technologies and the varied offerings was overwhelming Defining the
minimum and appropriate standards was vexingActions Taken: Talked
to as many providers and other SaaS-based Cloud Providers to make
sense ofand compared the offerings and figured out the Dos and
Donts Punted on the standards issue and felt we could wait a while
but ensured ourselvesthe minimum amount of securityResults: Learned
not only the technology issues and but also the business issues of
the cloud Learned that technology constantly evolves and youre
always in development mode 51
53. Conclusion & Key Takeaways 52
54. Conclusion & Key Takeaways Conclusion: Cloud computing
has the potential for revolutionizing the ways businesses and
individuals operate. However, be a skeptic! At its core, CC is
another outsourcing mechanism and must be monitored. Don t forget,
its still your responsibility. Takeaway: Cloud Computing has many
positives but the learning curve can be steep both technologically
and administratively. The benefits can far outweigh risks. There
are huge opportunities and potential for financial professionals to
add value to this area and to your organization Takeaway: Cloud
computing is not without risk. Do your due diligence. Unforeseen
disasters may await you including security breaches, cost overruns,
technological challenges, privacy issues, etc. 53
55. Poll Question Poll Question 5 Now, do you think cloud
computing is Myth or Magic? 54
56. Sources, References, and Trademarks Forrester Research,
Inc. Talking to your CFO About Cloud Computing ISACA IT Control
Objectives The Lego Minifigure is a trademark of The Lego Group
55
57. The Myths and Magic of Cloud Computing and How it is
Revolutionizing the World Jay Roy, Chief Strategy Officer
www.PredictiveDashboards.com [email protected] T:
214-621-7612 56