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On September 25th 2012 Skilltower Institute CEO Joerg Osarek is giving a keynote on the subject of the cloud computing gold rush at the heise event “application of the cloud in business”. The event is taking place in Cologne Germany and covers many interesting aspects of today’s cloud computing. Together with Andreas Wolske, CEO of managedhosting.de GmbH a VMware vCloud Service Provider both will focus on distinguishing real cloud business value from marketing blurp and empty promises of many black sheep on today’s cloud market.
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The cloud computing gold rush - © 2012 Skilltower Institute - www.skilltower.com 1
The Cloud Computing Gold RushThe Cloud Computing Gold Rush
How to distinguishHow to distinguish black sheep fromblack sheep from
real business chancesreal business chances
Joerg OsarekJoerg Osarek Andreas WolskeAndreas Wolske
the uptime* companymanagedhosting.de
The cloud computing gold rush - © 2012 Skilltower Institute - www.skilltower.com 2
Agenda
Introduction: Joerg Osarek and Andreas Wolske
cloud computing: Possibillities and examples for SME
strategic comparison:Development, deployment and management of IT systems
Black sheep and sustainable business chances
Considerations about successful cloud computingfor your enterprise
The cloud computing gold rush - © 2012 Skilltower Institute - www.skilltower.com 3
Introduction: Joerg Osarek
The world's firstThe world's firstIT AvantgardeIT Avantgarde
NetworkNetworkGame Game
changing changing technologies technologies
IT &BusinessStrategy
ITManage-
ment
IT Archi-tecture
Cloud Cloud ComputingComputing
www.its-people.deCo-Founder & Partner
www.skilltower.comFounder & CEO
The cloud computing gold rush - © 2012 Skilltower Institute - www.skilltower.com 4
Introduction: Andreas Wolske
the uptime* companymanagedhosting.de
Co-Founder & CEO der managedhosting.de GmbH
VMware vCloud Powered Powered Partner
Datacenter- und IT- Architectures
"Cloud Computing" since 2007
The cloud computing gold rush - © 2012 Skilltower Institute - www.skilltower.com 5
Let's dive into cloud computing
What is cloud computing?
Possibilities of cloud computing for SMEs (small and medium enterprises)
Some cloud computing business examples
The cloud computing gold rush - © 2012 Skilltower Institute - www.skilltower.com 6
What is cloud computing?
... it isn't new: IT- outsourcing, ASP, dynamic data center
"Cloud computing offers the use an abstract IT infrastructure (e.g. computing power, storage, network capacity or ready to use software) adapted dynamically to your needs and available over a network."
IaaS (Infrastructure as a Service)
PaaS (Platform as a Service)
SaaS (Software as a Service)
XaaS (Everything as a Service e.g. HuaaS)
Public-, private-, hybrid- & community cloudBildquelle: WikiPedia
The cloud computing gold rush - © 2012 Skilltower Institute - www.skilltower.com 7
Cloud Computing: Only the next hype?
Bild: http://geekandpoke.typepad.com/.a/6a00d8341d3df553ef0128764d3aef970c-800wiAutor: oliver.widder@gmail.com, Geek & Poke , Lizenz: http://creativecommons.org/licenses/by-nd/2.0/de/
Quelle: http://geekandpoke.typepad.com/geekandpoke/2009/12/from-hype-to-hype.html
Do you remember
the SOA-hype?
The cloud computing gold rush - © 2012 Skilltower Institute - www.skilltower.com 8
Possibilities of cloud computing for SMEs
classic IT
Fotos: © #359460 NatashaOwen, #945983 DanielSainthorant, #7058491 LeoDeep – Fotolia.com ; Anpassungen © Jörg Osarek
The cloud computing gold rush - © 2012 Skilltower Institute - www.skilltower.com 9
Possibilities of cloud computing for SMEs
classic IT IT with cloud computing
Fotos: © #359460 NatashaOwen, #945983 DanielSainthorant, #7058491 LeoDeep – Fotolia.com ; Anpassungen © Jörg Osarek
The cloud computing gold rush - © 2012 Skilltower Institute - www.skilltower.com 10
Possibilities of cloud computing for SMEs
classic ITclassic IT
+-fix costs+-fix costs
-often slow and unpredictable-often slow and unpredictable
-growing complexity -growing complexity (Function, security, legal)(Function, security, legal)
-maintenance complex or -maintenance complex or halfheartedhalfhearted
-often IT is not core business-often IT is not core business
IT with cloud computingIT with cloud computing
+++speed, virtualization+++speed, virtualization
++elasticity, on demand++elasticity, on demand
+fast development and mgmt+fast development and mgmt
+security, -risk+security, -risk
+business cooperations+business cooperations
+- variable costs+- variable costs
+- complexity reduction (partly)+- complexity reduction (partly)
Fotos: © #359460 NatashaOwen, #945983 DanielSainthorant, #7058491 LeoDeep – Fotolia.com ; Anpassungen © Jörg Osarek
The cloud computing gold rush - © 2012 Skilltower Institute - www.skilltower.com 11
Possibilities of cloud computing for SMEs
classic ITclassic IT
Getting slower, more Getting slower, more expensive, SME is left behindexpensive, SME is left behind
Slows down the innovation of Slows down the innovation of the SME's core business the SME's core business modelmodel
IT with cloud computingIT with cloud computing
lets SMEs innovate simplified, lets SMEs innovate simplified, fast and effectively to fast and effectively to approach new business approach new business niches with global outreach niches with global outreach and reduced risksand reduced risks
... if done right!... if done right!
Fotos: © #359460 NatashaOwen, #945983 DanielSainthorant, #7058491 LeoDeep – Fotolia.com ; Anpassungen © Jörg Osarek
The cloud computing gold rush - © 2012 Skilltower Institute - www.skilltower.com 12
Cloud computing business examples
Business process
Application
Middleware
Operating System
Network
Data center
Server & Storage
The cloud computing gold rush - © 2012 Skilltower Institute - www.skilltower.com 13
Cloud computing business examples
business performance
IT- resources
No. of users, server, storage,demanded bandwidth
salaries, management costLeasing or write-offs
loss of productivity due to missing IT resources
shrinking margin due toover capacities
Hig
h in
vest
men
t
The cloud computing gold rush - © 2012 Skilltower Institute - www.skilltower.com 14
Cloud computing business examples
business performance
IT- resources
No. of users, server, storage,demanded bandwidth
salaries, management costLeasing or write-offs
setu
p c
ost
s
high quality by dynamic resource allocation
demand oriented cost structure
The cloud computing gold rush - © 2012 Skilltower Institute - www.skilltower.com 15
Cloud computing business examples
commision based business performance
IT resources
No. of users, server, storage,demanded bandwidth
flexible cost structure basedon demanded resourcesse
tup
cost
s
high quality by dynamic resource allocation
demand oriented cost structure
fast availibility & stand by resources
The cloud computing gold rush - © 2012 Skilltower Institute - www.skilltower.com 16
IT strategy comparison
Development, deployment and management of IT systems
wrongwrong
correctcorrect
Today (cloud)Today (cloud)
The cloud computing gold rush - © 2012 Skilltower Institute - www.skilltower.com 17
IT strategy comparison
yesterday's extreme:yesterday's extreme:
handcrafted IT:handcrafted IT:
The CEO's son somehow The CEO's son somehow put this stuff together.put this stuff together.
If the CEO's son is absent, If the CEO's son is absent, chaos arises.chaos arises.
In the basement connected to In the basement connected to short-circuit socketsshort-circuit sockets
"What's the heck? it works!""What's the heck? it works!"
only oral requirements, only oral requirements, no documentationno documentation
development on production development on production systemsystem
security by obscuritysecurity by obscurityENIAC ©: Public Domain
The cloud computing gold rush - © 2012 Skilltower Institute - www.skilltower.com 18
IT strategy comparison
yesterday's extreme:yesterday's extreme:
perfect example IT with risk perfect example IT with risk of fritteringof frittering
If you did this the last 30 If you did this the last 30 years, you are broke or you years, you are broke or you have a monopoly.have a monopoly.
always bought top software always bought top software suitessuites
customized by hundreds of customized by hundreds of consultantsconsultants
redundant hardwareredundant hardware
always vacation replacementsalways vacation replacements
100% documentation100% documentation© Jörg Osarek
The cloud computing gold rush - © 2012 Skilltower Institute - www.skilltower.com 19
IT strategy comparison
strike balance yesterdaystrike balance yesterday fast and agile IT fast and agile IT implementation reacting to implementation reacting to market demandsmarket demands
pragmatic balance for pragmatic balance for processes, documentation, processes, documentation, separated environments separated environments (develop, test, production)(develop, test, production)
sufficient redundancy in sufficient redundancy in technology and stafftechnology and staff
© Jörg Osarek
The cloud computing gold rush - © 2012 Skilltower Institute - www.skilltower.com 20
IT strategy comparison
Leave your fingers off.Leave your fingers off.technically and legallytechnically and legallycompletely insecure!completely insecure!
today‘s extreme in the cloud: 2 false advisestoday‘s extreme in the cloud: 2 false advises
You are leftYou are leftbehindbehind
The cloud computing gold rush - © 2012 Skilltower Institute - www.skilltower.com 21
IT strategy comparison
Leave your fingers off.Leave your fingers off.technically and legallytechnically and legallycompletely insecure!completely insecure!
today‘s extreme in the cloud: 2 false advisestoday‘s extreme in the cloud: 2 false advises
You are leftYou are leftbehindbehind
Welcome to the cloud.Welcome to the cloud.You may now switch offYou may now switch off
your brain.your brain.
ChaosChaosemergesemerges
The cloud computing gold rush - © 2012 Skilltower Institute - www.skilltower.com 22
IT strategy comparison
strike balance todaystrike balance today same as yesterday: same as yesterday:
fast and agile IT implementation reacting to fast and agile IT implementation reacting to market demandsmarket demands
pragmatic balance for processes, pragmatic balance for processes, documentation, separated environments documentation, separated environments (develop, test, production)(develop, test, production)
sufficient redundancy in technology and staffsufficient redundancy in technology and staff
NEW!: professionalization NEW!: professionalization and specialization required and specialization required due to increased IT due to increased IT complexity! complexity! (in house or outsourced)(in house or outsourced)
competitivecompetitiveadvantageadvantage
The cloud computing gold rush - © 2012 Skilltower Institute - www.skilltower.com 23
Black sheep and real business chances
What black sheep whisper in your ear
How to recognize sustainable chances for the development of your business
The cloud computing gold rush - © 2012 Skilltower Institute - www.skilltower.com 24
SuperDuperSuperDuperCloudCloud
Your businessYour businessyour futureyour future
Black sheep and real business chances
For the black sheep you are only one of For the black sheep you are only one of many customers. For you it might be many customers. For you it might be your life's work!your life's work!
Careful if somebody promises a rose Careful if somebody promises a rose garden.garden.
Cloud computing must follow your Cloud computing must follow your business, not your business the cloud.business, not your business the cloud.
The cloud computing gold rush - © 2012 Skilltower Institute - www.skilltower.com 25
Black sheep
Access control: where is my data located? Can I acess it anytime? Data loss?
Compliance:insufficient multi tenancy, violated governance rules
Service providers:broke provider, unknown subcontractors
(in Germany) the CEO is held responsible for following all IT policies – also when using the cloud.
The cloud computing gold rush - © 2012 Skilltower Institute - www.skilltower.com 26
How to recognize real business chances
Significant potential for cost saving by using IT resources dynamically
allows real agility and creation of value for your IT
meaningful integration of IaaS, PaaS and SaaS
hybrid models with "guarantee of mobility"
Bottom Line: Cloud- Computing is meaningful if it allows high business agility, a infrastructure that is stable and available anytime, combined with reduced costs.
The cloud computing gold rush - © 2012 Skilltower Institute - www.skilltower.com 27
Considerations about a successful cloud
Considerations about successful cloud computingfor your enterprise
Navigation to your goal...
Legal aspects, server location and more
symmetrical business partnering
four-leaf clover for change projects: business, people, technology, corporate governance
The cloud computing gold rush - © 2012 Skilltower Institute - www.skilltower.com 28
Navigation to your goal...
"Beware of salesmen that have answers to all of your problems
without having asked you a single question!"
Chuck Ian Gordon
The cloud computing gold rush - © 2012 Skilltower Institute - www.skilltower.com 29
Navigation to your goal...
If somebody wants to help you getting to your goal
he must know your position (your situation).
"One size fits all" will fail!
The cloud computing gold rush - © 2012 Skilltower Institute - www.skilltower.com 30
Navigation to your goal...
Vendors and service providers
Salesforce (SaaS)
Amazon S3 , EC2 and AWS (Combination of IaaS and PaaS)
Microsoft Azure (PaaS)
VMware vCloud Services
Other providers (GoGrid, Rackspace etc.)
What is the advantage for your IT?
Where in your company do you profit most?
The cloud computing gold rush - © 2012 Skilltower Institute - www.skilltower.com 31
Legal aspects (Germany)
provider dependency
Microsoft Azure and Amazon offer few "ways back"
VMware vCloud Services as neutral eco system
guarantee of service relocation to another vendor
physical sovereignty for your data: Do you have data access in a reusable format anytime?
data protection and availability
server location and court of jurisdiction of the provider
details of contract with the provider and his subcontractors
The cloud computing gold rush - © 2012 Skilltower Institute - www.skilltower.com 32
symmetrical business partnering
Arm wrestling withArm wrestling withKing Kong isn't wise!King Kong isn't wise!
Exception: Exception: Convenience products, where Convenience products, where provider change is easy.provider change is easy.
Partnering rule of thumb:Partnering rule of thumb:small with small,small with small,medium with medium,medium with medium,large with largelarge with large
Quelle: Quelle: http://commons.wikimedia.org/wiki/File:Kingkongedo38.jpghttp://commons.wikimedia.org/wiki/File:Kingkongedo38.jpg Public Domain Public Domain
The cloud computing gold rush - © 2012 Skilltower Institute - www.skilltower.com 33
four-leaf clover for change projects
the four (Cloud-) success factorsthe four (Cloud-) success factors
Technological aspectsTechnological aspects■ e.g. Data security, e.g. Data security,
■ availability, availability,
■ Server location (access from US authorities)Server location (access from US authorities)German: Datenschutz in der Euro Cloud: http://www.heise.de/artikel-archiv/ct/2011/16/49_kiosk und http://www.heise.de/newsticker/meldung/Auch-Google-uebermittelt-europaeische-Daten-an-US-Behoerden-1319347.html )
People aspectsPeople aspects■ resistance in IT department and from CIO in resistance in IT department and from CIO in
medium enterprisesmedium enterprises
■ You must win employees for the new solutionsYou must win employees for the new solutions
Business-Case Business-Case ■ for the SMEfor the SME
■ for its customersfor its customers
Legal aspectsLegal aspects■ liability managementliability management
■ contract managementcontract management
■ compliancecompliance
■ ......
© Kurhan - Fotolia.com 6659463 © Marc_Dietrich - fotolia.com 2446638
© Jörg Osarek
The cloud computing gold rush - © 2012 Skilltower Institute - www.skilltower.com 34
four-leaf clover for change projects
the four (Cloud-) success factorsthe four (Cloud-) success factors
Technological aspectsTechnological aspects■ e.g. Data security, e.g. Data security,
■ availability, availability,
■ Server location (access from US authorities)Server location (access from US authorities)German: Datenschutz in der Euro Cloud: http://www.heise.de/artikel-archiv/ct/2011/16/49_kiosk und http://www.heise.de/newsticker/meldung/Auch-Google-uebermittelt-europaeische-Daten-an-US-Behoerden-1319347.html )
People aspectsPeople aspects■ resistance in IT department and from CIO in resistance in IT department and from CIO in
medium enterprisesmedium enterprises
■ You must win employees for the new solutionsYou must win employees for the new solutions
Business-Case Business-Case ■ for the SMEfor the SME
■ for it's customersfor it's customers
Legal aspectsLegal aspects■ liability managementliability management
■ contract managementcontract management
■ compliancecompliance
■ ......
© Kurhan - Fotolia.com 6659463 © Marc_Dietrich - fotolia.com 2446638
© Jörg Osarek
Compliance and Corporate Governance incl. ISG (Information Security Governance)
Important:Balance between security and freedom.
Too many restrictions destroy motivation and creativity* of employees leading to opposition or sabotage.
(*the most powerful energy source an enterprise has)
The cloud computing gold rush - © 2012 Skilltower Institute - www.skilltower.com 35
SummaryPossibilities of cloud computing
Great added value: speed, flexibility, costs following the business performance.
IT strategy yesterday and today
Old IT virtues remain. Additionally important (complexity): Professionalization and specialization (external or internal)
Black sheep
are discovered by "One size fits all"-offers and by huge amount of fine print in contracts.Real business chances follow your business needs.
Cloud success factors
symmetry of power + clover-leaf (people, business, legal, technology)
balancebalanceFind yourFind your
Your business,Your business,your futureyour future
The cloud computing gold rush - © 2012 Skilltower Institute - www.skilltower.com 36
Contact
Skilltower Institute
Joerg OsarekFounder and CEO
Triftstr. 30D-61350 Bad HomburgGermany
mailto:joerg.osarek@skilltower.comTel.: +49(0)151-23 0 24 333
www.skilltower.com
managedhosting.de GmbH
Andreas WolskeGeschäftsführer
Friedrichstraße 191D-10117 BerlinGermany mailto:andreas.wolske@managedhosting.de Tel.: +49 30 202364 910
www.managedhosting.de
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