On Premise Vs Cloud: Selection Approach & Implementation Strategies

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Lucas Wood
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1 On Premise Vs Cloud: Selection Approach & Implementation Strategies Session ID#:10143 Prepared by: Praveen Kumar Practice Manager AST REMINDER Check in on the COLLABORATE mobile app

3 Agenda Cloud definitions Cloud models Understanding rewards and risks Key components of Cloud strategy Key steps for implementation

4 What is Cloud Computing? Buying IT capacity and applications as needed from a utility service provider - Forrester A style of computing where massively scalable IT- Related capabilities are provided as-a-service across the internet to multiple external customers -Gartner

service provider - Forrester A style of computing where massively

6 Cloud Models Deployment Model Service Delivered Operating Model Private Applications (SaaS) Customer Owns Customer Operates Public Hybrid Platform (PaaS) Infrastructure (IaaS) Customer Owns Provider Operates Provider Owns Provider Operates

Operates Public Hybrid Platform (PaaS) Infrastructure

7 Cloud Vs On-Premise Model On Premise Cloud Licensing Perpetual Subscription Color of Money Capital Expense Operational Expense Accessibility Internal Networks Over Internet Ownership Customer Owned Vendor Owned Deployment Time High Low

Operational Expense Accessibility Internal Networks Over

8 Cost Structure Comparison Cost Driver On Premise Cloud Product Cost Upfront purchase of software and hardware May require network infrastructure enhancements, facilities Test tools, security products Design and Deployment Ongoing Support & Training May take months to deploy High professional services cost. High Post Production cost Requires resources to operate, monitor, support, and upgrade the application Need to hire, train and certify support personnel Pay as you go subscription pricing Usage based pricing Deploy in weeks Lower cost using consistent set of best practices Vendor provides as part of subscription There may be some training fees Internet access and bandwidth cost

High Post Production cost Requires resources to operate, monitor, support, and upgrade the application Need to hire, train and certify support personnel Pay as you go

9 Intangible Cost Reliability and Availability Data center and operations quality Interoperability Extensibility Scalability Security & Privacy

10 What this means to you? New Rules Management Productivity Pay for what you use Lower & Predictable cost (?) No Patching, Upgrade, no backups Reduced Maintenance Access from anywhere Focus on value added tasks. Shift from Capex to Opex Multi Layered Security Focus on High Values Activities

11 Trade-offs Limited infrastructure overhead Lower short term TCO Faster implementation Potential for increased innovation Stable operational expense Security and compliance concerns Longer term TCO uncertain Integration with other systems Loss of control

operational expense Security and compliance concerns Longer

12 Key Benefits of Cloud Reduced Cost Speed of Deployment Scalability of Technology Resources Reduced Focus on IT Management Reduced Risk

13 Understanding Risks Compliance Security and Privacy Reliability and Performance Operational Cost Concerns Vendor Lock-in and Interoperability Service Provider Long Term Viability

14 Risk Response Risk Unauthorized cloud activity Lack of transparency Security, compliance, data leakage, and data jurisdiction Transparency and relinquishing direct control Reliability, performance, high value cyber attack target Noncompliance with regulations Noncompliance with disclosure requirements Response Cloud policies and controls Assessments of the CSP control environment Data classification policies and processes Management oversight and operations monitoring controls Incident Management Monitoring of the external environment New disclosures in financial reporting

disclosure requirements Response Cloud policies and controls Assessments of the CSP control environment Data classification policies and

15 Cloud Strategy: Key Components Goals & Objectives Organization Readiness Vision & Assessment Policies & Decision Framework Model Selection Vendor Eval. Security & Compliance Framework Business Risk Technology Risk Security Risk Performance Risk Risk Management Deployment & Operations Implementation Strategy Architecture Quality Assurance

Security & Compliance Framework Business Risk Technology Risk Security Risk

16 Cloud Services Evaluation Criteria Service Specific Criteria Performance Availability and Reliability User Experience Integration with other Cloud services Business Evaluation Criteria Fixed and Variable Cost Service Levels Agreements Support and Communication Technical Evaluation Criteria Platform Maturity Technology Alignment Security and Compliance Lock in & Portability

Criteria Fixed and Variable Cost Service Levels Agreements Support and Communication

17 Implementation Steps Create a Roadmap Identify Project Evaluate Cloud Computing Services Develop Service Level Agreement Pricing & Billing Support Requirements Conduct Training Define Exit Strategy

Service Level Agreement Pricing & Billing Support

18 Post Implementation Issues An internet connection is required at all times The security and control of your data is no longer in your own hands You can no longer control what version of a software application that you are going to use You work on your vendor schedule.

your own hands You can no longer control what version of a

19 Q&A

20 Please complete the session evaluation We appreciate your feedback and insight You may complete the session evaluation either on paper or online via the mobile app

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