Cloud Computing for Health Yes or no? 2 August 2012 Sandy Aitken
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1 Cloud Computing for Health Yes or no? 2 August 2012 Sandy Aitken
2 Who is doing what in Healthcare Clouds? New Oracle Cloud Healthcare stack 500-1,000 cloud enabled pads Medical image sharing and storage 15 Healthcare apps in the Apple store Centricity SAAS EHR solution Smarter Planet Healthcare Healthvault Merck developing cloud application to ensure adherence to dosage administration US and UK doctors using smarphone and tablets to pull up patient records in middle of consultants 1 HIC 2012 Cloud Computing for Health yes or no?
3 73% of US and Canadian Healthcare providers say they will use cloud, 23% say they are!
4 What s driving these changes programs By 2013, the U.S. will reach 20%, Canada 13%, Australia 12%, and most of Western Europe10-11% of GDP Governments are making significant investments in health reform Stimulus spending is still being provided Cloud is becoming real and more effective Worldwide shortage of trained professionals. 3 HIC 2012 Cloud Computing for Health yes or no?
5 Cloud thinking is the next level of business transformation Impacts to Business Creating new business models Enabling speed and innovation Reengineering business process Supporting new levels of collaboration Unleashing the end user productivity Breaking traditional vertically integrated business model. Impacts to IT Changing the economics of IT Automating service delivery IT governance and policies Radically exploiting standardisation Rapidly deploying new capabilities Builds on existing IT advances. IT Today Static use of resources IT today Dedicated infrastructure to dedicated functions and workloads Dedicated storage, compute to workloads Built in advance Early commitment to expense. Cloud enabled IT Cloud enabled IT Virtualised Shared infrastructure Shared storage, compute Location independent Self service Automated Rapidly scaleable Pay as you grow. 4 HIC 2012 Cloud Computing for Health yes or no?
6 Cloud is a shift in the consumption and delivery of IT with the goal of simplifying business and IT processes, to manage complexity more effectively. Cloud is a highly disruptive business capability a new economic model.
7 There are may different options to deliver Cloud Private Services are provided from dedicated resources over dedicated intranet links Security and protection at the highest Public Services are provided as best endeavour over insecure internet links Increasingly more insecure Enterprise data center Enterprise data center Enterprise Enterprise A B Users A B Private cloud Managed private cloud Hosted private cloud Shared cloud services Public cloud services Hybrid clouds bridge the gap between public and private Clouds Planning and analysis are the key What are the Characteristics of Cloud Workloads Build a cloud adoption framework Identify candidate workloads Create detailed work load analysis Gap analysis of cloud readiness Conduct a Cloud assessment and create a roadmap. 6 HIC 2012 Cloud Computing for Health yes or no?
8 Different applications can be delivered in the Cloud Ready for Cloud Medical Imaging Engineering Analytics Financial Risk Analysis Collaborative Care Analytics Some Industry Applications Infrastructure Storage Collaboration Isolated workloads Workplace, Desktop & Devices Information intensive Not yet virtualised 3 rd party SW Mature workloads Some Business Processes Development & Test Pre-production systems Batch processing Energy Management Infrastructure Compute Highly customised Complex processes & transactions Sensitive data May not yet be ready for Cloud Regulation sensitive 7 HIC 2012 Cloud Computing for Health yes or no?
9 IaaS PaaS SaaS On top of Cloud infrastructure run Cloud Services Cloud Computing is defined as multi-tenant, on-demand, scalable, elastic, pay-as-you-go IT applications and services, used to deploy a wide variety of solutions. Hosted Applications Infrastructure Software Operating Systems Virtualization Servers Connectivity Data Centre Service Type Definition Cloud Candidates Sample Vendors Software-as-a- Service (SaaS) Platform-as-a- Service (PaaS) Infrastructure-asa-Service (IaaS) Customers run finished applications from the cloud service provider on a subscription basis, with no software license, and limited operational control Customers load and run software on cloud platforms through a subscription service, without visibility to the underlying server environment. Customers provision servers, storage, and database services on cloud infrastructure through a subscription service, with direct operational control. CRM HR, Payroll Finance Productivity Apps, , collaboration Custom Development Java, Ruby, and extensions to SaaS environments Dev and Test Environments High compute calculations (e.g., Monte-Carlo scenario analysis) Web servers 8 HIC 2012 Cloud Computing for Health yes or no?
10 The Challenge Clients want to understand the transformation agenda of cloud How can Cloud Change the business model What are the economic impacts What are the market threats and opportunities created by Cloud What should I do and when help me plan. Clients want to know how to improve levels of security and privacy How does Cloud impact security and privacy New policies, governance, processes? What are the regulatory consequences? They need to ensure what they do today is future proofed How can we integrate my existing IT and infrastructure How do I avoid large write offs What is the business case Migration challenges. 9 HIC 2012 Cloud Computing for Health yes or no?
11 Retrofitting Cloud can be expensive incorporating Cloud planning as part of future business planning creates value and opportunities.
12 The No 1 client concern of how to manage security and risk end to end has many components Personal user information Processes and procedures to avoid corporate misuse. Password protections, auditing, design and test before deploy, constant vigilence Application and process How do you keep applications secure, protected from malicious or fraudulent use, and hardened against failure. Servers Shared or dedicated depending on level of security needed. Security in the Cloud Networks Protect against intrusion and leakage, policies for using of shared networks/hybrids and overspill through internet. Protecting data and information Understand, deploy and properly test controls for access to and usage of sensitive data Physical Infrastructure Secure and protect physical infrastructure, policies for shared environments and actions on potential breakdowns. Constant monitoring pf physical environments. 11 HIC 2012 Cloud Computing for Health yes or no?
13 Adoption Cloud Vendor Maturity (1 of 2) Cloud Computing vendors and services are at the different levels of maturity, and are growing rapidly to meet strong market demand for a variety of emerging services. Cloud Vendors at Different Stages of Maturity Early adopters, growing adoption Nascent technology pilots Amazon Web Services Stable technology, significant adoption ERP on SaaS Google App Engine NetSuite HP* Windows Azure RightNow Box.net Workday Force.com IBM* Microsoft Business Productivity Online Suite (BPOS) Gmail/Google Mail Salesforce.com CRM SaaS PaaS IaaS Maturity (dynamic markets require continual reassessment) * IBM and HP initially started as cloud enablers, developing hardware and software to deliver cloud; however, they are now moving into the cloud service provider space 12 HIC 2012 Cloud Computing for Health yes or no?
14 Cloud Vendor Maturity (2 of 2) Service Type Example Vendors Software-as-a- Service (SaaS) Productivity and Collaboration Microsoft Online Services Google Apps Zoho.com Soonr.com ERP, HR, Finance and BI Oracle PeopleSoft Workday SAP Business ByDesign IBM Analytics Cognos via SaaS Customer Relationship Management salesforce.com NetSuite Oracle (Siebel) On Demand RightNow.com Entellium Platform-as-a- Service (PaaS) Force.com VMForce (Java PaaS offering joint venture from VMWare and salesforce.com) Google App Engine Windows Azure Pega GridGain NetSuite SuiteCloud Platform Engine Yard - Rails Application Cloud Wolf Frameworks WorkXpress CodeRun Infrastructure-as-a- Service (IaaS) Amazon Web Services (AWS) HP IBM Rackspace Mozy Terremark AT&T Synaptic Savvis Flexiant Flexiscale 2.0 Unisys Secure Cloud Solution Verizon Computing as a Service (CaaS) GoGrid (previously ServePath) 13 HIC 2012 Cloud Computing for Health yes or no?
15 Organizational Readiness for Cloud Adoption Enterprises deploying Cloud Computing services must have a comprehensive strategy for managing a wide variety of key capabilities in a new cloud savvy way Service Operations Service Operations Service Provisioning Resource Planning Incident Mgmt Technical and Professional Support. Product Development Economics Pricing Tiers Profit vs. Break-even External Cloud Contracts (Hybrid Operations) Platform License & Entitlements. Compliance Compliance Corporate Policies Industry Policies Regulations: State Federal International. Tax Tax Proactive tax analysis and strategy Tax alignment Domestic and Local Country Tax Treatment. Legal Legal Contract Mgmt Service Mgmt e-discovery Business Processes Regulatory and Compliance. Governance Governance Risk Management Management Security & & Privacy Privacy People People Technology Technology Cloud Computing Strategy Business-IT Alignment Cloud Service Delivery Strategic Planning and Architecture. Data controls Technology controls Audit and Assurance Backup and DR Vendor lock-in IT Operations Readiness. Data Segregation, Integrity and Deletion Identity and Access Physical Security Network Security Application Security. Skills and Talent Culture Training and Development Organization. Virtualization Next-Gen Architecture Infrastructure and Process Standardization Resource Mgmt and Metering. 14 HIC 2012 Cloud Computing for Health yes or no?
16 Net Interest Income Fee Income Capital Benefit Other Income Total Revenue Information Provision Manufacturing Delivery Customer Management Processing Overhead Underlying Profit $M 1 Potential Impact 2 Potential Impact Retur n (%) 0 % 2 $800 $700 $600 $500 $400 $300 $200 First deployment The size of the prize is xyz Size of the Prize $499 Well aligned to our business and supports our long term vision $133 $66 ROI = Revenues Costs Minor upgrades $3 $701 $5 $8 Major upgrades $145 $41 Cloud computing On premise computin g Strategic Position Scenarios Customers Growth This can be developed into a Cloud Computing Dashboard $99 $95 $308 5 Risks that can be mitigated 1 Assurance of preparedness Redeploy resources Dots represent risks #1-#21 3 Enhance risk mitigation Measure for cumulative impact Potential Vulnerability Dot size reflects speed of onset: 14 2 Very Low Low Medium High Very High Risks Likely hood Impact Controls Risk mitigators Residual Risk Significant barriers to adopting cloud, possible options are... -Data movements -International laws and regulatory requirements -Data sensitivity Ho w mature are we and the gap to we can get to is... Assessment of Market Maturity Current state organizational maturit Market maturity Size of gap $100 $0 Manufacture Strategy Market Acquire Sell Service Manage product Financial Model Cost Savings (operating expenses, energy, human resources) Tax 15 HIC 2012 Cloud Depreciation Computing for Health yes or no? Technology Finance HR Legal Operations Opportunity Current
17 If using public clouds or hybrid clouds, also consider implications for Licensing, Billing, Order Management and Customer Experience.
18 This publication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms, or their related entities (collectively the Deloitte Network ) is, by means of this publication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte Network shall be responsible for any loss whatsoever sustained by any person who relies on this publication. About Deloitte Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms. Deloitte provides audit, tax, consulting, and financial advisory services to public and private clients spanning multiple industries. With a globally connected network of member firms in more than 150 countries, Deloitte brings world-class capabilities and high-quality service to clients, delivering the insights they need to address their most complex business challenges. Deloitte s approximately 195,000 professionals are committed to becoming the standard of excellence. About Deloitte Australia In Australia, the member firm is the Australian partnership of Deloitte Touche Tohmatsu. As one of Australia s leading professional services firms, Deloitte Touche Tohmatsu and its affiliates provide audit, tax, consulting, and financial advisory services through approximately 6,000 people across the country. Focused on the creation of value and growth, and known as an employer of choice for innovative human resources programs, we are dedicated to helping our clients and our people excel. For more information, please visit Deloitte s web site at Liability limited by a scheme approved under Professional Standards Legislation. Member of Deloitte Touche Tohmatsu Limited.
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