Transformational Benefits of the Cloud Information & Communication technology October 2013
Fifth Generation of Computing Cloud Mainframe 1970s Client Server 1980s Web 1990s 80% SOA 2000s 2010+ of new commercial enterprise apps will be deployed on cloud platforms in 2013 predicted cloud computing market in 2020 $241B
Long term Outlook Shows one quarter Will Have Majority of IT Ops in the Cloud Which of the following best describes your long term expectations for cloud computing at your organisation over the next 5 years? Source: 2013 IDG Enterprise Cloud Computing Study
Growth Expected for All Models Currently In 18 months Private Cloud Public Cloud Community Cloud Approximately, what per cent of your organization s total IT environment (data, applications, infrastructure, etc.) presently resides in each of the following, and will in 18 months? Source: 2013 IDG Enterprise Cloud Computing Study
Still Evaluating What to Host in the Cloud Which of the following best describes your organization s current stance on cloud deployments? Source: 2013 IDG Enterprise Cloud Computing Study
Conventional Capacity Utilization Inefficiencies Under supply of capacities Allocated IT capacities Load Forecast IT CAPACITY Waste of capacities Fixed cost of ITcapacities Barrier for innovations Actual Load TIME
Capacity Utilization curve Cloud Environment Allocated IT capacities Load Forecast No under supply IT CAPACITY Reduction of initial investments Reduction of over supply Actual Load Possible reduction of ITcapacities in case of reduced load Time
Business Metrics from Capacity Utilization Curve Metrics that translate the indicators of the capacity utilization curve to transformational benefits to the business Margin enhancement Speed of cost reduction Dynamic Usage Optimize Ownership Compliance Rapid Provisioning
Workload Patterns Optimal For Cloud On and Off Growing Fast Compute Average Inactivity Period Usage Compute Average Usage Time On & off workloads Over provisioned capacity is wasted Time to market can be cumbersome Time Successful services needs to grow/scale Keeping up w/ growth is big IT challenge Complex lead time for deployment Unpredictable Bursting Predictable Bursting Compute Average Usage Compute Average Usage Time Time Unexpected/unplanned peak in demand Sudden spike impacts performance Can t over provision for extreme cases Services with micro seasonality trends Peaks due to periodic increased demand IT complexity and wasted capacity
Etisalat view of Cloud transformational impact On premise computing Define Cloud computing Define Manage Manage Align Deliver Align Deliver Define and create the capabilities that IT will offer Deliver high quality IT solutions and on going service Manage IT Align IT capabilities with needs and priorities Strategic planning Organization Governance Architecture and planning Competency Metrics and process excellence Solution delivery Solution maintenance Transaction processing Process improvement Infrastructure readiness Hardware Databases Networks Management reporting Asset management Payroll and benefits Regulatory and internal audit compliance Relationship management Business initiatives IT value Program prioritization Demand management Service level management Strategic sourcing
Cloud Service Types Private (On Premise) Infrastructure (as a service) Platform (as a service) Software (as a service) Applications Runtimes Security & Integration You manage Applications Runtimes Security & Integration You manage Applications Runtimes Security & Integration Applications Runtimes Security & Integration You manage Databases Servers Virtualization Server HW Storage Databases Servers Virtualization Server HW Storage Managed by vendor Databases Servers Virtualization Server HW Storage Managed by vendor Databases Servers Virtualization Server HW Storage Managed by vendor Networking Networking Networking Networking
The path and pace of transformation or migration to cloud vary by industry High Electronics & high Tech Trajectory Banking Business value add Medium Government Hospitality Insurance CPG Utilities Communications Capital Markets Retail M&E Health Pharmaceutical Automotive Energy Years to next phase Low Transport +2 1 2 < 1 Early Adoption Wide spread use Full Maturity Some industry resources lagging due to heavy legacy, while others are leading adopter Source: Accenture Enterprise Architecture & Cloud Computing 2013
Enterprise Organisations Investing Significantly More 40% 24% 20% 19% 10% 9% 12% 14% 2% 5% 4% 5% 1,000+ <1,000 $10 million or more $5 million to $9.9 million $1 million to $4.9 million $500,000 to $999,999 $100,000 to $499,999 $50,000 to $99,999 Less than $50,000 Approximately how much will your organization invest in cloud based services computing (including software, services training and other related costs) in the next 12months? Source: 2013 IDG Enterprise Cloud Computing Study
Lower TCO: A Top Internal Selling Point Which of the following arguments or rationales have proven most effective in helping you to sell the benefits of cloud to internal stakeholders at your company/organization? Source: 2013 IDG Enterprise Cloud Computing Study
Business Continuity & Speed of Deployment are Top Drivers Development of new products or services 24% 41% 22% 7% 6% Replacing on premise legacy technology 27% 45% 16% 7% 5% Need for real time information 29% 39% 19% 7% 6% Expanding revenue opportunities 31% 31% 21% 7% 10% Gaining a competitive advantage 31% 38% 17% 8% 6% Savings on CAPEX 33% 42% 17% 5% 3% Enabling innovation 33% 42% 16% 4% 5% reducing resource waste 37% 41% 14% 5% 3% Improving customer support or services 38% 41% 13% 3% 5% Speed of deployment 39% 44% 12% 2% 3% Greater flexibility to react to changing market conditions 40% 38% 12% 5% 5% Enabling business Continuity 43% 41% 10% 2% 4% Very important Somewhat important Not very important Not at all important Not Applicable How important are the following as business drivers of investment in cloud computing technology? Source: 2013 IDG Enterprise Cloud Computing Study
Cloud Accelerating IT Business Value Increasing Decreasing No Impact Not sure IT headcount 12% 27% 48% 13% IT costs 31% 32% 18% 19% End user satisfaction 46% 8% 24% 22% IT complexity 49% 25% 14% 12% Need for specialised IT skills 49% 14% 24% 13% Demand of new applications 50% 6% 30% 14% IT agility 54% 9% 22% 15% Employee collaboration 54% 6% 24% 16% IT innovation 56% 8% 23% 13% Access to critical business data & application 56% 4% 26% 14% How is the use of cloud computing technology impacting the following at your organisation? Source: 2013 IDG Enterprise Cloud Computing Study
Cloud Adoption Progression for End Users Experiment Non critical Use Full Production Transformed IT IaaS PaaS SaaS Public Clouds Private Hybrid Clouds Education Transition Policies/Procedure s Workflow Change Proof of concept Integration Provider Switching Customization/ Rearchitecture Security Payment Models EXPERIMENT: End users will gain education on cloud providers, the cloud ecosystem, and cloud business models. Any testing of cloud systems will in large part be done in the public cloud. NON CRITICAL USE: End users will select a system that is not business critical and does not contain sensitive data for a cloud transition. Some end users may begin building private clouds if the long term strategy includes that model. FULL PRODUCTION: End users will securely move business critical systems into the cloud. At this stage, companies will begin moving architecture and applications between cloud systems and/or onpremise systems to find the optimal mix. TRANSFORMED IT: End users will adopt new practices and policies for cloud enabled IT. Applications will be customized or rebuilt for cloud use, and processes will reflect greater flexibility and availability of IT systems.
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Speed of Cost Reduction Cost of Adoption/De Adoption The speed and rate of change of cost reduction can be much faster using Cloud Computing than traditional investment and divestment of IT assets
Optimise ownership use A key aspect of moving to Cloud Computing is the ability to select hardware, software, and services from defined design configurations to run in production
Rapid Provisioning Business IT leading to emerging Operating models