Consumerization & the Cloud. R. Lemuel Lasher Chief Innovation Officer 22 November 2010 Imperial College London
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1 Consumerization & the Cloud R. Lemuel Lasher Chief Innovation Officer 22 November 2010 Imperial College London
2 The evolution in the locus and diffusion of IT Innovation Top-down Innovation Military/Govt. Corp. R&D Mainframes, Displays, Storage Networks, Software Business Applications Consumer & Small Business Usage Military Applications Business Usage Consumer R&D PCs, PDAs, Phones, CDs, Cameras, Video, Semiconductors, Broadband, Wireless, etc Bottom-up Innovation Imperial College London 22 November
3 The consumerization of IT has been on the LEF s agenda for the last decade Imperial College London 22 November
4 On our 3G study tour in 2000 we learned: One size no longer fits all Employees want to be treated as adults, not children Enterprises are niche players in consumer markets Imperial College London 22 November
5 LEF-FT survey, Autumn 2005 rate your home computer facilities compared to your work computer facilities As good or better at home Better at office Per cent of respondents Imperial College London 22 November
6 The locus of Innovation in IT has changed Imperial College London 22 November
7 Consumerization as a bottom-up process Large Mid-size Utility- Style Public Infrastructure/ The Cloud Small business Consumers Time Imperial College London 22 November
8 Point of View on Cloud Computing Distinguishing Characteristics On-Demand Self-Service Broad Network Access Resource Pooling Rapid Elasticity Measured Service A model for enabling convenient, on-demand network access to a shared pool of configurable computing resources that can be rapidly provisioned and released with minimal management effort or service provider interaction. (v15, 07 Oct 09) Point of View Cloud Computing is a provocative taxonomy for an evolutionary stage in internet enabled IT, with revolutionary implications for enterprises business and operating models While there are compelling economic reasons why it is gaining traction, there are significant adoption barriers that require resolution before we see core enterprise deployment Customers should take a forward leaning strategic posture that is tempered by prudence. Imperial College London 22 November
9 The cloud computing paradigm Traditional IT Industrial model Thousands of enterprises Private infrastructure Dedicated resources IT products Client/server Customized implementations Professional services Passive users Fixed capital costs Cloud computing Consumer model Billions of customers Public infrastructure Virtual resources Online services Web browser Standard services Web services Double-deep employees Variable, on-demand Imperial College London 22 November
10 The Cloud is part of a bow wave of business change Virtualisation Social networks Mashups, DIY tools Exponential change Tech savvy customers Tech savvy employees Consumerisation / Web 2.0/ Cloud Computing Public infrastructure Global Collaboration Unstructured Data Security Mobility Green The business is being redefined Customers Products/Services Partners/JVs Business Operations Employees Imperial College London 22 November
11 IT CAPACITY IT CAPACITY Why Cloud Matters: Reduced Costs and Improved Agility Non-Cloud View Under-supply of capacities Allocated IT-capacities Load Forecast Waste of capacities Fixed cost of ITcapacities Barrier for innovations Actual Load TIME No under-supply Cloud View Allocated IT capacities Load Forecast Reduced initial investments Reduce over-supply Actual Load Possibly reduce capacities in case of reduced load TIME Reference: Inputs from Microsoft Imperial College London 22 November
12 How are Companies Using Cloud? Private Cloud Hybrid Cloud Public Clouds LAN Federal Cloud Customers play it safe with non-mission critical apps first Community Clouds Healthcare Services Cloud Financial Services Cloud The real payoff lies in the Cloud-enabled business process Imperial College London 22 November
13 Think of Cloud Computing as a series of layers providing choices in control and responsibility Freedom To Orchestration Business Process as a Service Software as a Service Platform as a Service Infrastructure as a Service Freedom From Orchestration includes services such as monitoring, management, integration, security, ID, authorisation, scaling and optimisation that wrap around the other layers Imperial College London 22 November
14 Internet Disruption impact & Cloud Computing adoption intensity differs by Industry Security/Regulatory Requirements High Latent Defense/Aero Utilities Pharma Potentially Disruptive Financial services Telecom IT Services Dell/Intel Wal-Mart/Tesco Consumer goods Music/video Software/IT News/Information Low Mostly Sustaining Atoms Product Offerings Mostly Disruptive Bits Credit: Leading Edge Forum Imperial College London 22 November
15 The great transition, ? 100% IT Usage Private Infrastructure One-to-One Open Public Infrastructure -- One-to-Many Cloud, SaaS Virtualization Proprietary Imperial College London 22 November
16 Cloud Adoption Challenges Where is the data? Who can see the data? Who has seen the data? Is data untampered? Where is processing performed? What about my SLA? Does backup happen? How do I maintain accountability? Security and Compliance Performance and Availability Application transformation? Is the executive team ready? What is the ROI? What to do first? Business Buy-in Vendor Lock-in What about interoperability? What about standards? Which platform to use? What about service metrics? Imperial College London 22 November
17 Thank You!
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