MoDerniZATion point of view. november 2013 BUILDING NEW APPLICATIONS IN THE CLOUD
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1 MoDerniZATion point of view november 2013 BUILDING NEW APPLICATIONS IN THE CLOUD
2 BUILDING NEW APPLICATIONS IN THE CLOUD Traditional ways of building IT applications no longer meet the demands of the business. A new approach helps CIOs save money and time, free resources for innovation, and extend and modernize their legacy applications. Organizations urgently need a new approach to application development. Current approaches are too expensive, inefficient and slow. They tie up valuable capital, leave assets unused and render organizations unable to respond to the new demands of internal users and external customers. What s needed instead? CIOs must have the ability to procure application-development services in a utility model. This approach helps free up time for CIOs to focus on creating innovative systems that differentiate their organizations products and services. While developing applications in-house worked fine in the past, it s a practice that s quickly becoming obsolete. Today, many organizations have inventories of hardware and software that are rapidly aging; applications built 10 or 15 years ago are far from rare. As a result, CIOs must not only retain skill sets that no longer provide competitive differentiation, but must also continue to pay development- and test-environment license and maintenance fees for systems that could be replaced by commodity solutions. In addition, as noncore activities such as application development and delivery are increasingly being commoditized, suppliers are continuously optimizing these whole life-cycle processes, making them suitable for delegating to third-party experts and being procured as a utility. In essence, CIOs are sitting on huge amounts of excess and unused capacity assets that drain their budgets, tying up funds that could be better used elsewhere. 1 BUILDING NEW APPLICATIONS IN THE CLOUD
3 By keeping application development in-house, CIOs can accrue hidden costs, both direct and indirect. For example, what is the true cost of tying up capital in hardware and software licenses? What is the cost of limiting the organization s business agility, that is, its ability to respond to emerging trends? And what is the true cost of carrying a staff with increasingly outdated skills? What is the cost of staff resistance to emerging IT trends and the new skills they require? In addition, business leaders now look to their CIOs to enable new revenue streams and markets by building high-quality IT applications that offer differentiation and innovation. With today s markets moving faster than ever, business leaders want their IT leaders to offer ever-faster times to market, higher levels of flexibility and quicker returns on investment. Business leaders need timely information, both to analyze past business performance and to predict likely future outcomes. They also want all this work done at lower cost. Switching from traditional inhouse application development to a service-based approach, can save organizations as much as 15% of their current application development costs. The Service Alternative Clearly, a new approach to application development is needed. Fortunately, CIOs can meet these myriad business demands by taking advantage of a new utility model. A utility model helps CIOs control costs and reduce overhead. Instead of maintaining a large applicationdevelopment team, CIOs can simply pay for application-development services on an as-needed, as-used basis. This lets CIOs pull in capabilities and expertise only when needed, freeing them from extensive staff training and skills development. CIOs can procure a full life-cycle service that employs service reuse, automation, unified licensing costs, cost-only expenses, and the ability to scale up and down with the needs of the business. What s more, CIOs can use a utility-based approach to enhance and extend existing applications. They can add mobility, meeting the new demands of today s smartphone and tablet users. They can add new, higher levels of security, protecting the organization s data and customers alike. They can add the social media functionality that today s online consumers expect. They can leverage the value of IT commodities, including Software as a Service (SaaS) and other cloud-based services. They can enjoy the benefits of standardization. And they can do all this quickly, with high quality and at a low cost. Switching from traditional in-house application development to a service-based approach can save organizations as much as 15 percent of their current application-development costs. It s not just labor savings, says Vijaya Kumar Bhavani, product manager for cloud application development at CSC. It s also the cost of building technology specialists, managing the entire supply chain, and much more. Eliminating these costs also unlocks capital that CIOs can then redirect to strategic initiatives, projects that support the business strategy with innovation and differentiation. This will free CIOs to focus solely on the services the business needs most: creating solutions that empower innovative and differentiating products and services, and providing information the business needs for analyses and forecasts. 2 BUILDING NEW APPLICATIONS IN THE CLOUD
4 How CSC Helps Reductions of up to 80% in project-delivery capital costs To help CIOs and other IT executives looking to reduce their application-development costs and free resources to create more competitive solutions, CSC offers ACE Development Services. It s a fully managed and fully industrialized as-a-service global offering for the creation and revision of custom business applications, on both traditional and more modern cloud platforms. Powered by the cloud, CSC s ACE Development Services helps organizations extend and integrate their existing applications, and supports new channels such as mobile technology and social media. ACE Development Services also uses CSC s DevCloud, a multitenant, on-demand and distributed development platform. It gives CIOs a choice of development and test environments targeting any platform from mainframes to mobile devices and runs in both corporate data centers and the cloud. The application-development skills can be offered from centers around the world to balance cost optimization with an organization s regulatory or compliance requirements. Organizations using this platform achieve high levels of standardization, take advantage of solution templates to jump-start projects, and enjoy the benefits of automation and code reuse. CIOs get anytime access to performance dashboards and the reports they need for governance and troubleshooting. Organizations that use CSC s ACE Development Services enjoy several valuable benefits: Global delivery capability Best practices and service reuse True utility model Productivity improvements of 15 percent or greater High-quality outputs Up to 30 percent reduction in total cost of ownership (TCO) The right people, tools and environments available when needed Reductions of up to 80 percent in project-delivery capital costs Significantly faster time to market, and with more frequent releases IT s traditional in-house approach to application development is obsolete. Today, CIOs can use CSC s ACE Development Services and empower their organizations to operate more efficiently, control their costs, and help the business compete with speed, quality and efficiency. See how CSC can help you move application development to the cloud: 3 BUILDING NEW APPLICATIONS IN THE CLOUD
5 Worldwide CSC Headquarters The Americas 3170 Fairview Park Drive Falls Church, Virginia United States Asia, Middle East, Africa 20 Anson Road #11-01 Twenty Anson Singapore Republic of Singapore Australia 26 Talavera Road Macquarie Park, NSW 2113 Australia +61(2) Central and Eastern Europe Abraham-Lincoln-Park Wiesbaden Germany Nordic and Baltic Region Retortvej 8 DK-2500 Valby Denmark South and West Europe Immeuble Balzac 10 place des Vosges Paris la Défense Cedex France UK and Ireland Region Royal Pavilion Wellesley Road Aldershot, Hampshire GU11 1PZ United Kingdom +44(0) About CSC CSC is a global leader in next-generation IT services and solutions. The company s mission is to enable superior returns on our clients technology investments through best-in-class industry solutions, domain expertise and global scale. For more information, visit us at Computer Sciences Corporation. All rights reserved.
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