Opportunity of cloud computing for logistics Michele Colajanni Università di Modena e Reggio Emilia http://weblab.ing.unimo.it/people/colajanni/ http://cris.unimore.it
Logistics is movement and communication Movement of goods Communication of information Mobility is driving the most important changes (nearly one mobile device per capita in the planet, global mobile data traffic will increase 26- fold) Internet-of-Things will drive the next revolution (supply chains will enhance their speed and flexibility through new Internetbased technologies including RFID tagging, NFC protocols, mobile applications, and advanced analytics)
Vision
Cloud Services Very few companies control, own or operate their entire supply chain internally from end-to-end An independent (cloud) platform may represent a facilitator for Service Level Management Requirements Logistics as a Service: service engineering for cloud logistics Logistics as a product: cloud marketplace for logistics services Collaborative platform on a geographical scale Dynamic supply chain
Security related to cloud Companies have an absolute need to protect their products and customers. Lost data can lead to lost intellectual property, lost products, lost customers and lost business. So security and availability are prime concerns Availability is guaranteed because redundancy and disaster recovery are embedded in the cloud system Many customers are still afraid of cloud security, but
The present situation (1) We want to access to our data and services anytime, anywhere, anydevice We want our data with us and for this reason we use: laptops smartphones tablets USB pens 60% of company data are (also) on PC, laptop, tablet, smartphone, with increasing percentage of mobile devices with respect to PCs
The present situation (2) 10% of mobile devices are lost within 12 months 60% of pen-drives contain company data 66% of pen-drives is lost forever 43% of mobile subscribers experience phone damage, loss, or theft At LAX airport, 400+ lost smartphones are found each month A whopping 87% of those who lost phones had to manually re-enter their data, and 31% lost data stored nowhere else Each unrecovered PDA or business smartphone costs the employer at least $2,500
In order to access to our data and services anytime, anywhere, anydevice the laptop/smartphone/usbdrive model does not work Is the cloud model the right alternative?
Cloud paradigm Portatili INTERNET
Cloud benefits for logistics Cloud-based platforms are inherently collaborative and accessible, creating major benefits for companies that deal routinely with thousands of suppliers Cloud-based collaboration allows multiple parties to jointly develop supplier contracts, dramatically enhancing contract management Cloud computing offers a collaborative framework with centralized storage and contact points, fewer visibility barriers, and the opportunity to enact simplified, standardized processes. Dynamic supply chain: cloud-based platforms are inherently elastic, making it possible to scale up with minimal waste of time and capital ability to switch applications entirely without a lot of added cost or complexity ability to enter new markets or launch new services quickly
Possible services related to cloud Cloud computing applications for functions such as: network strategy inventory management warehousing transportation Next cloud computing applications for processes such as: global trade compliance replenishment planning order processing transportation load building fleet management transportation route planning
Security in the cloud: It is both the #1 opportunity and the #1 concern Most (87%) believe cloud will not impact or will actually improve their security posture Yet, they rate security as their #1 concern. Top threats: 1. Mass malware outbreak at your cloud provider 2. Hacker-based data theft from your cloud provider 3. Sharing sensitive data insecurely via the cloud 4. Rogue use of cloud leading to a data breach 5. Data spillage in a multi-hosted environment [Symantec report, 2011]
Q&A Would you put your data in a cloud? Would you put your money in a bank? Never What? Do I have an alternative? Learned lesson: answers depend on the epoch
Secure cloud storage: solutions exist The solution is encryption
A Cloud provider MUST have a strong committment on security Analysis of employees (past records and way of conduct, including strong logging) Security team: 100+ experts Integrated security Physical (24/7, electronic and biometric accesses, CCTV, multiple generators) Continuous monitoring of threats and vulnerabilities Security embedded in the lifecycle software development Auditing and assessment Incident Response Teams Certifications: Safe Harbor, PCI, SAS70, FISMA, Is security in your data center adequate to your expectation?
Mature industry Complexity must be masked Separation between product and security is a demonstration that the computer industry is still immature Can you imagine a scenario similar to what happens in IT in any other industry? Car dealer: «Hey, before arriving at home, remember to buy brakes for your new car» Security is embedded in any mature industry: We expect breaks in the cars, a house with the door, a door with its lock, a safe electric tool, a gun that does not explode, potable water from the faucet and we sue companies that do not satisfy our expectations
What users expect Modern users are platform-free: They do not know what operating system Google (or Facebook or Skype) use They do not know the venues of Internet data centers They do not know where their data are and what providers do with their data And they don t care All provided services must come with dependability, usability, scalable performance, and security
Security by design Security will not disappear, but it will be managed by the providers and not by the users and companies anymore In the future every (interesting) IT application will be characterized by trust and reputation Amazon, Apple, and Google will do it for your services and your data as Mercedes and Ferrari guarantee for your cars
Security challenges Applications of cloud providers cannot be examined by the customers Loss of physical control Trusting vendor s security model, but everything is a matter of trust: Do you trust in all producers of the software installed on your PC? Customer inability to respond to auditing Obtaining support for forensics and investigations Indirect administrator accountability More psycological issues Users will trust cloud providers to manage their data and services like they learned to trust banks with their money
Conclusions The rise of the cloud is more than just another platform shift that gets geeks excited. It will undoubtedly transform the IT industry, but it will also profoundly change the way people work and companies operate [The Economist, 2011] Supply chain s migration to cloud: not if, but when While it will take time for supply chains to transition to cloud computing, we believe the operational benefits and potential savings from clouds are too great to ignore If your organization has not yet started its journey to the cloud, now it s the time to start