Finding Business Value from The Cloud. Samuli Savo
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1 Finding Business Value from The Cloud Samuli Savo
2 How cloud services look and feel?
3 Quick Vote: Do You Believe This? By 2016, all Global 2000 companies will use some level of public cloud services. Oh yeah! Possibly... I would not bet my money You are crazy!
4 Cloud services have rapidly become common and the utilization will increase in fast pace (CAGR 20-22%) Organisaatiomme We are already using hyödyntää cloud services jo pilvipalveluja Organisaatiollamme We are planning or on have suunnitteilla ongoing cloud tai käynnissä related development pilvipalveluihin projects liittyvä kehityshanke Organisaatiomme We are considering harkitsee using cloud pilvipalvelujen services but käyttöä, have not mutta yet harkintaprosessiin started concrete actions ei vielä liity konkreettisia suunnitelmia Organisaatiomme We are not using ei cloud käytä services eikä suunnittele and nor do pilvipalvelujen we plan to käyttöä 2012, n= , n= , n= % 10 % 20 % 30 % 40 % 50 % 60 % 70 % 80 % 90 % 100 % Market-Visio Oy, All rights reserved. Market-Visio Oy 2013 Pilvipalvelujen hyödyntäminen
5 Reflections of CIOs views of cloud, based on our local research and projects 1. It s all about cost savings and better scalability, not about transformation or innovation. 2. Many name security as a key issue and reason for no-go, however often peers in same industry have implemented heavily cloud-based landscapes. 3. Many are biased for incumbent IT service players and feel unsure about new ones. 4. Resistance for losing control is strong, even if there is a realistic view of businesses anyway sourcing directly.
6 Gartner 31 July 2013 (G ) Hype Cycle For Cloud Computing 2013 visibility PaaS Cloud Brokerage SaaS IaaS Technology Trigger Peak of Inflated Expectations Trough of Disillusionment Slope of Enlightenment Plateau of Productivity maturity
7 Market-Visio Oy, All rights reserved. SaaS
8 Cloud applications are widely used, but most sourcing has been initiated by businesses directly Käyttää Yes, Suunnittelee Planning to deploy käyttöönottoa by end of vuoden loppuun mennessä Ei No suunnitelmia plans Ei I osaa do not sanoa know using HR applications Henkilöstöhallinnon ohjelmistot Sähköposti/ / calendar kalenteriohjelmat applications Collaboration Kollaboraatioalustat, platforms / project tiimityöskentelyvälineet, team spaces Taloushallinnon Finance applications ohjelmistot / ERP Digital Digitaalisen content creation sisällöntuotannon applications ohjelmistot Myynnin Sales ja and markkinoinnin marketing applications ohjelmistot Information management Tiedonhallinnan ohjelmistot applications Other Muut applications ohjelmistot Project Projektin- and portfolio ja portfolionhallinnan applications ohjelmistot Supply chain management Toimitusketjun hallinnan applications ohjelmistot Production management Tuotannonohjauksen ohjelmistot applications % 10 % 20 % 30 % 40 % 50 % 60 % 70 % 80 % 90 % 100 % 59% Market-Visio Oy, All rights reserved. Market-Visio Oy 2013 Pilvipalvelujen hyödyntäminen
9 SaaS experiences are pretty good 79% of organisations using SaaS are happy about their solution and experiences. 70% of organisations using SaaS would recommend model for other organisations. 32% feel that information security is an issue when using SaaS, BUT only 3% say that they themselves have faced problems with that. Market-Visio Oy 2013 Pilvipalvelujen hyödyntäminen
10 SaaS: How to improve business value? Be bolder and move beyond simply replacing non-critical on-premise applications with SaaS. Establish a team proactively scanning and evaluating public cloud applications. Look for opportunities to leverage innovation ecosystems around SaaS providers. Find ways to optimise your business value chain by leveraging public/community SaaS solutions. However, be careful with vendor lock-in.
11 Market-Visio Oy, All rights reserved. IaaS
12 All cloud infrastructure services have similar adoption rates, but a single customer buys rarely all services Using Planning No plans Don't know Computing Storage Network Other % 20 % 40 % 60 % 80 % 100 % 24% Market-Visio Oy, All rights reserved. % organisations Market-Visio Oy 2013 Pilvipalvelujen hyödyntäminen
13 There are plenty of reasons why NOT to IaaS 65% of organisations NOT using IaaS are still unclear about possible benefits and costs. 46% of organisations NOT using IaaS are unclear about possible vendors and their offerings. 40% of organisations NOT using IaaS are concerned about information security. 22% of organisations NOT using IaaS have calculated IaaS TCO to be too high. Market-Visio Oy 2013 Pilvipalvelujen hyödyntäminen
14 IaaS: How to improve business value? 75% of IaaS is procured from private cloud Watch out cloudwashing and ensure that you really are getting cloud benefits! 1. Is service provisioning fully automated, including needed network resources? What about self service? 2. Can you commercially ramp both up and down? Is your minimum commitment zero? 3. Are you invoiced per used capacity or per day? Or have you in reality a fixed deal for 3 years?
15 Market-Visio Oy, All rights reserved. PaaS
16 Cloud platforms include a rich set of different services, however typical organisation leverages one service only Using Planning No plans Don't know Application Development, apaas Database Management Systems, dbpaas Integration Platform, ipaas User Experience Platform, ppaas Other % 10 % 20 % 30 % 40 % 50 % 60 % 70 % 80 % 90 % 100 % 23% Market-Visio Oy, All rights reserved. % organisations Market-Visio Oy 2013 Pilvipalvelujen hyödyntäminen
17 PaaS is causing confusion and many organisations don t know what it really is 69% of organisations NOT using PaaS say that they don t need any new application features. 55% of organisations NOT using PaaS are unclear how it would fit them. 45% of organisations NOT using PaaS have concerns about reliability and performance. 41% of organisations NOT using PaaS tell that business has not been asking it. Market-Visio Oy 2013 Pilvipalvelujen hyödyntäminen
18 PaaS: How to improve business value? Understand what it is for you and how it helps to improve your IT landscape s fit for business. Ensure all core SaaS solutions have a proper apaas to enable extensions and configurations. Increase time-to-market by leveraging PaaS environments eg for mobile back end services. Look opportunities for leveraging ipaas services to make your hybrid IT landscape more agile.
19 Cloud Brokerage Market-Visio Oy, All rights reserved.
20 Smaller organisations are lacking behind, but cloud service brokers may change this We are already using cloud services We are planning or have ongoing cloud related development project We are considering using cloud services but have not yet started concrete actions We are not using cloud services and nor do we plan to Total, n= , n= , n= , n= % 10 % 20 % 30 % 40 % 50 % 60 % 70 % 80 % 90 % 100 % Market-Visio Oy, All rights reserved. % organisations Market-Visio Oy 2013 Pilvipalvelujen hyödyntäminen
21 Three Roles of Cloud Services Broker Source: Cloud Services Brokerage Is Dominated by Three Primary Roles (G )
22 Cloud Broker value propositions gets much stronger when combined with business insight
23 CSB: How to improve business value? Cloud Service Brokerage is still in early phase. Evaluate vendors and see whether they can make your SaaS adoption faster or easier. eg by providing pre-integrated cloud solution bundles or by making cloud vendor change smoother. Look for emerging opportunities to source IaaS capacity through cloud brokers for extra bargain.
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25 In a summary: Cloud is maturing, YOU should too CIO s cloud is still just about cost savings and scalability, you should also start speaking about how cloud helps to enable business agility and innovation. Security is important, but for a very few a real reason to hold back. In every industry there are organisations leveraging cloud already, even public cloud. SaaS: It is time to get bolder! IaaS: Ensure you get real cloud benefits! PaaS: Understand it and plan how to leverage! CSB: Evaluate, experiment and be opportunistic!
26 What now? Top Picks for Gartner s Barcelona Symposium The Realities of Cloud in Europe. Monday 16:00-17:00 How do you Move from Outsourcing to Cloud Sourcing? Tuesday 8:30 9:30 Contracting for Cloud Services Get the Benefit but Avoid the Risk. Wednesday 08:30-10:00 How can an Organization Leverage Cloud Platform Vendors? Wednesday 11:00-12:00 Cloud Unchained: Re-imagining Business Applications. Thursday 08:30-09:30 Samuli Savo Consulting Director ICT Intensive Strategies samuli.savo@marketvisio.fi
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