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INFORMATION TECHNOLOGY IN THE CLOUD

Information Technology in the Cloud

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Page 1: Information Technology in the Cloud

INFORMATION TECHNOLOGY

IN THE CLOUD

Page 2: Information Technology in the Cloud

Windows Mac Tablet

• Attendees are in listen-only mode• This webinar is being recorded for future on-demand playback• Your participation represents acknowledgement that we are

recording• Tweet questions & comments to @WelchLLP

GROUND RULES

Page 3: Information Technology in the Cloud

Karen Dickson, CPA, CADirector of Government Services & Senior [email protected]

PRESENTERS

FEATURING SPECIAL GUEST

Colin SmithPractice Lead, Microsoft Solutions PracticeCistel Technology [email protected]

Page 4: Information Technology in the Cloud

• Why Cloud Computing?

• Types of clouds

• Service models

• Financial considerations

• Making the decision

• Measuring success

WHAT WILL BE COVERED

Page 5: Information Technology in the Cloud

WHY CLOUD COMPUTING?

Page 6: Information Technology in the Cloud

POLL: Are you using any Cloud Services in your business?

Page 7: Information Technology in the Cloud

EXAMPLES OF CLOUD SERVICES

• Amazon’s EC2

• Youtube

• DropBox

• Salesforce.com

• Photoshop.com

• Microsoft Azure

• Gmail

• Google Office

• Office 365

• CRM Online

Page 8: Information Technology in the Cloud

ESSENTIAL CHARACTERISTICS OF CLOUD COMPUTING

On-demandself-service

Broad network access

Resourcepooling

Rapid elasticity

Measured service

Page 9: Information Technology in the Cloud

TYPES OF CLOUDS

Community Cloud

Public Cloud

Private Cloud

Hybrid Cloud

Page 10: Information Technology in the Cloud

SERVICE MODELS

-

You Manage You Manage

Vendor Manages

You Manage

Vendor Manages

Platform(as a Service)

Storage

Servers

Networking

O/S

Middleware

Virtualization

Applications

Runtime

Data

Software(as a Service)

Storage

Servers

Networking

O/S

Middleware

Virtualization

Applications

Runtime

Data

Infrastructure(as a Service)

Storage

Servers

Networking

O/S

Middleware

Virtualization

Data

Applications

Runtime

You Manage

Vendor Manages

On Premise

Storage

Servers

Networking

O/S

Middleware

Virtualization

Data

Applications

Runtime

Page 11: Information Technology in the Cloud

PIZZA SERVICE MODELSYou Manage You Manage

Vendor Manages

You Manage

Vendor Manages

Platform(as a Service)

Toppings

Tomato Sauce

Cheese

Fire

Oven

Pizza Dough

Dining Table

Electric / Gas

Soda

Software(as a Service)

Toppings

Tomato Sauce

Cheese

Fire

Oven

Pizza Dough

Dining Table

Electric / Gas

Soda

Infrastructure

(as a Service)

Toppings

Tomato Sauce

Cheese

Fire

Oven

Pizza Dough

Soda

Dining Table

Electric / Gas

You Manage

Vendor Manages

On Premise

Toppings

Tomato Sauce

Cheese

Fire

Oven

Pizza Dough

Soda

Dining Table

Electric / Gas

Made at home Pizza DeliveryTake & Bake Italian Restaurant

Page 12: Information Technology in the Cloud

SERVICE MODELS

-

You Manage You Manage

Vendor Manages

You Manage

Vendor Manages

Platform(as a Service)

Storage

Servers

Networking

O/S

Middleware

Virtualization

Applications

Runtime

Data

Software(as a Service)

Storage

Servers

Networking

O/S

Middleware

Virtualization

Applications

Runtime

Data

Infrastructure(as a Service)

Storage

Servers

Networking

O/S

Middleware

Virtualization

Data

Applications

Runtime

You Manage

Vendor Manages

On Premise

Storage

Servers

Networking

O/S

Middleware

Virtualization

Data

Applications

Runtime

Page 13: Information Technology in the Cloud

POLL: Which Cloud Service Model is most appealing to your business?

1. Software as a Service (SaaS)2. Platform as a Service (PaaS)3. Infrastructure as a Service (IaaS)

Page 14: Information Technology in the Cloud

CapEx vs. OpEx

Pricing

Challenges

FINANCIAL CONSIDERATIONS

$

Page 15: Information Technology in the Cloud

CapEx vs OpEx

Fixed Costs (CapEx)

Variable Costs (OpEx)

Variable Costs (OpEx)Cloud

Classic

Workload

Cost

Page 16: Information Technology in the Cloud

LOWER COST

Public Cloud

ClassicData Center

Utilization

Cost / Hour

$0.20

$0.05

25% 75%

Private Cloud

50%

Traditional Data Center Server Utilization is between 15-20%

Source: Gartner / SNIA

Source: EMC Cloud Infrastructure Group

Page 17: Information Technology in the Cloud

Legacy ResourcesActual DemandCloud Resources

ELASTICITY

Time

Com

putin

g Re

sour

ces D

eman

d

Over Provisioned

Under Provisioned

Estimated Demand

Page 18: Information Technology in the Cloud

SOME CHALLENGES TO ADDRESS• Jurisdiction (Data Sovereignty vs Data Residency) • Data Leak• Ownership

Security & Privacy

• PCI• SOX• PIPEDA

Regulatory Compliance

• Amazon and Microsoft have a 99.9% Uptime SLA• Network Latency / Q0SService Levels

• Vendor Lock in• LicensingOpen Standards

Page 19: Information Technology in the Cloud

WHERE TO START

1. Low Risk Workloads

2. Net New Services

3. Mobility Services

4. Mature Service Offerings

Page 20: Information Technology in the Cloud

BENEFITS SUMMARY

Scalability Fail Easy Implementation – Fail Fast

Improved Mobility Flexibility & Focus

Page 21: Information Technology in the Cloud

IS ROI THE RIGHT WAY TO MEASURE CLOUD SUCCESS?

Is ROI ever the wrong way to measure success?• It can be tough to compare the ROI of legacy vs. cloud based solutions unless there is a parity relationship – if there is a

parity relationship why are you switching?• If you base IT decisions purely on a comparison of the ROI you will miss out on the non-ROI opportunities available?• Definitely do an ROI analysis but don’t forget the soft value

Measure success in terms of desired outcomes such as:• Increased mobility• Increased collaboration• Decreased time to market

Link success to existing business KPIs such as:• Average Revenue per User (ARPU)• Free Cash Flow (FCF)• Customer Acquisition• Solution Usage• Customer Satisfaction• User Satisfaction

Page 22: Information Technology in the Cloud

Windows Mac Tablet

TWEET QUESTIONS AND COMMENTS TO @WELCHLLP

QUESTIONS

Page 23: Information Technology in the Cloud

Karen Dickson, CPA, CADirector of Government Services & Senior [email protected]

ASK THE EXPERTS

FEATURING SPECIAL GUEST

Colin SmithPractice Lead, Microsoft Solutions PracticeCistel [email protected]