Cloud Business Value. Francis Magann Senior Customer Solutions Architect. 20 th April 2011

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1 Cloud Business Value Francis Magann Senior Customer Solutions Architect 20 th April 2011

2 Cloud is real Some as High as 40% 71% met or exceeded expectations 24% Experienced Cost Savings 73% use private clouds Community cloud: pay-as-you-go & zero operational risk Source: Vanson Bourne, commissioned by Fujitsu 1

3 Cloud Business Value Shaping the Cloud to Ensure Business Value Francis Magann Senior Customer Solutions Architect 20 th April 2011

4 Fujitsu at a Glance Headquarters: Tokyo, Japan Established: country operations 175,000 employees Stock exchanges: Tokyo, London, Frankfurt, Zurich R&D spend: US$ 2.6 billion Fujitsu Headquarters Tokyo, Japan *Fujitsu Group (excluding FSC) consolidated figures for fiscal year ended March 31, US$ 1 = 98, 1 = Copyright 2009 FUJITSU LIMITED

5 Fujitsu Locally A strong, autonomous, local management ethos Regina Moran, MD Fujitsu (Ireland) local data centers IaaS platform Windows Azure Software as a Service cloud consulting cloud application migration & development cloud application management providing the assurance of local accountability and responsiveness Data Centre Fujitsu Labs...all backed up by our global organisation. 4

6 Challenges Increasing demand on IT Reducing IT budgets 5

7 Cloud Services A Silver Bullet? On demand Elastic & Scalable Auto provision Opex vs. Capex Configure not build Pay per use 6

8 Cloud Services Infrastructure (as a Service) Platform (as a Service) Software (as a Service) Process Process Process Applications Data Runtime Middleware O/S Virtualization Servers Storage Network Managed by Consumer Managed by Service Applications Data Runtime Middleware O/S Virtualization Servers Storage Network Managed by Consumer Managed by Service Applications Data Runtime Middleware O/S Virtualization Servers Storage Network Managed by Service 7

9 Cloud Types Type Traditional Data Centre Private Internal Cloud Private Trusted Cloud Public External Cloud Technology Model Customer-owned and dedicated IT delivered on or off customer premise Customer-owned and dedicated IT run as a pooled resource and sold to customer departments (can also be operated as an ITO in a providers Data Centre). Run on a shared platform but for trusted use at an identifiable location. Shared and highly scalable platform (possibly with location unspecified). Cost Model Customer-owned IT or provided as an ITO service Customer-owned IT or provided as ITO with scalability options at an agreed price. Pay-per-use scalability confined to agreements and a minimum charge term. Pay-per-use per hour and rapidly scalable on demand. 8

10 Enterprise Cloud Business & Enterprise Applications Software as a Service Legacy Platform as a Service Infrastructure as a Service Traditional Data Centre Private Internal Cloud Private Trusted Cloud Public External Cloud 9

11 Types of Business Processes 10

12 Types of Business Processes Core Context Activities which create sustainable differentiation and Build competitive advantage Activities that do not differentiate the company Buy from the customers' viewpoint 11

13 Applications into the Cloud End-to-End Managed Portfolio Core Business Business & Apps Enterprise on Applications PaaS Shared SaaS for Software as a Service Services Context for Context Apps Legacy Packaged Applications on IaaS Platform as a Service Migrate Legacy onto IaaS Infrastructure as a Service Traditional Data Centre Private Internal Cloud Private Trusted Cloud Public External Cloud 12

14 Balancing the Options Route Cost Improvement Agility Improvement Risk Investment Migrate legacy to IaaS Platform High Low Low High - Medium Implement packaged applications on IaaS Medium Medium Low High - Medium Develop Core applications on PaaS Medium Medium Medium High - Low Consume Context as shared services High Medium Medium Low Exploit SaaS to deliver Context High High High Low 13

15 Ideal Applications for Cloud Data collection & analytics Context vs. core Storage New ventures (Online commerce, Social, Communities & gaming) Lifecycle Seasonal peaks 14

16 Architectural Patterns All-in Cloud Business migration On-premises plus in-cloud Timeline splitting (Dev, Test & Prod...) Service Oriented Architecture (SOA) Presentation veneer Data split 15

17 Advice on Putting Apps in the Cloud Don t: Simply say no to the Cloud there are real benefits. Start with a major transformation into the Cloud. Forget the basics because Cloud looks like it might rescue your budget, adopting a Public Cloud is still a form of outsourcing. adopting a Private Cloud is an IT transformation. 16

18 Advice on Putting Apps in the Cloud Do: Choose a model that best suites your circumstances. Ensure that Cloud makes commercial sense analyse risks & benefits. TCO is not everything strategy with appropriate enterprise quality principles: Security; Resilience; Performance etc Take expert advice and procure Cloud services that meet the strategy. Take a balanced approach to risk. Adopt an iterative approach, especially to SaaS. Specifically address data management. Ensure Service Management addresses end-toend service. Analyse the options in a structured way - evaluate overlaps & gaps between services. 17

19 Common Pitfalls Service Lock-in: Have a clear exit strategy defined. Ensure novation is provided for. Data extraction strategy and understand what is involved. Availability and Service Continuity: Select a provider that can deliver both the data response times and continuous availability needed by the business service. Understand providers obligations. Responsibility for loss of data. Have service management and governance in place. 18

20 Common Pitfalls Understand Your Data: Grade data be clear on what data is migrated and stored externally. Understand dependencies. Know where data is stored select a provider that can assure location. Basics of ownership, protection, retention etc Security: What does the provider offer in terms of compliance audits Strategy and rights when incidents occur 19

21 get the contract right & watch the SLA! 20

22 Cloud Business Value Cloud Can Lower investment barriers Reduces timescales Add better business value Offer greater agility And Cloud services are available now But Understand benefits and risks Know Fujitsu will add real value Be agile in a changing market but ensure the underlying disciplines remain Understand Cloud is new and evolving so assess vendor viability 21

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24 Q&A get the contract right & watch the SLA! 23

25 More Information Or Seeing through the cloud of Cloud Services Cloud: The hidden catches The Key to Migrating Applications to the Cloud Turning Cloud services into a business reality 24

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