Managing Services through the Computing Cloud by Prof. Richardus Eko Indrajit (indrajit@post.harvard.edu)

The Changing of IT Delivery

  CEO to CIO instruction: –  We need an application that can automate the

process of buying flight ticket to issuing boarding pass of our passengers

–  Please don’t forget to include the electronic payment system to ensure our revenue management intact

–  You might develop or buy anything as long as it is fulfilled the requirement and within our company budget

–  Don’t forget to include the change management program in it as we have to educate many people

Classic Requirements on the air transportation business

  CMO to CIO new instruction: –  Most of our customers are group travellers, we need

to link all passengers through facebook application –  And they also want to have group messangers

enabled through either their yahoo or blackberry platform

–  Oh, don’t forget to synchronise their travelling scheduled with either microsoft outlook calendar or apple ical

–  The most important thing is we need it as soon as possible, not more than one month time

New Additional Requirements on the air transportation business

  CFO to CIO instruction –  To beat our competitors, we allow our customers to

pay the ticket right after they enjoy the travel –  They can pay it by using credit card, debit card,

prepaid card, or even paypal –  For those of them who are the customers of bca or

mandiri bank, a special discount is applied –  One more thing, they can also free to use their

frequent flyer points to be exchanged into money, based on the latest currency exchange determined by Indonesian central bank

More Additional Requirements on the same air transportation business

  COO to CIO instruction –  As soon as our ticket agent issues the ticket, every

passengers can freely check-in and book the seat as they like through the internet or any mobile device – and of course the boarding ticket can be printed accordingly (physical or electronic boarding pass)

–  For international flight, based on its travelling itenerary, the electronic immigration card would be issued automatically to immigration officer, allowing the passengers to have a quick immigration process

–  Can we have this thing implemented by next month?

Still More Requirements to Go on the same air transportation business

  Every repeated (loyal) passengers does not have to do the same process all over again

  Should their flight is delayed, they will automatically rebooked to the closest schedule

  To hinder the passengers of being late in boarding, an automatic message would be delivered through their twitter account, sms, or blackberry push mail

  For reporting purposes, all record of travelling documents would be electronically sent to the passengers and their sponsors

  As the business grows, the company develop business alliance with other air transportation carriers – an integrated system is required to enhance the services

Other Normal Requirements from different stakeholders

  What the most old type of CIOs is going to say: –  Can I kill myself? –  May I quit the job? –  Are you trying to fire me? –  Can I recruit more IT people and aresources? –  Have you decide to allocate a lot of money to do it?

  The Boss answer is: No! –  It is your job to make it a reality; do it within our limited budget; in

a very short time; and with a good quality of delivery! –  There is no excuse, because our competitor can do it easily

within the same constraints and similar objectives also!

The CIO Challenges in today’s dynamic and volatile market

  Is it possible to do it?   Aren’t they too much expectation?   What is the probability of success?   How can our competitor manage the issues?   Any particular approach to handle such requirements?   How much money and resources would it need?   Should I do it ourselves or find somebody else?   To whom should I cry for help in this situation?   Where are all the answers when I need it?

Think… think… think… think… think…

The CIO’s Introspection to make them still relevant with the job

  There will be a dynamic continuous change or additional of requirements whether we like it or not

  What the company need is the capability of IT on delivering the value – not necessarily owning the assets

  No question ask about the availability of capex, we have to go towards opex arrangement

  Building high various capability of IT is not our business, we are in the air transportation business, not IT company

  We do not want to deal with the complexity since the requirements are straightforward and simple

  It is okay for the company to share cost or/and to share profit with other parties as long as the requirements are fulfilled

A Reality Check to find an available way out

  If you try to fulfill the requirements internally by yourself alone, you will face a high risk of development and deployment – with a high probability of failure; but   If you don’t fulfill the requirements you will be

losing the competition for sure So, do not worry to throw this “hot ball” to somebody else who are used to face the problems and making money out of such dilemmatic issues !!! Leave it to the cloud !!!

Simalakama Dillemma a quick decision making is required

  as long as there are guarantee traffic of transactions and volume

  within a certain period of time (multi year contract)   a spectrum of services shall be provided   because IT is their main business   and managing services are their core competencies   where the fees are based on operational cost (can

be shifted to customers)   and the company does not have to invest anything

How Do They Handle It ! revealing the secret of managed services

Why Cloud Computing is Possible ? especially in Indonesia context

256 million population 18,677 islands 33 provinces 440 districts 5,263 municipalities 62,806 villages 40 million users 305 ISPs 15,000 internet café 5,000 hot spots 30 NAPs with 2 NIXs 50,000 .id domain 8 Gbps traffic

65 million mobile phone customers 3 million mobile internet users

1.  Conver�ng  from  CAPEX  to  OPEX  due  to  the  poten�al  economy  of  scale  

2.  Staying  away  from  COMPLEXITY  problems  (““the  beauty  of  simplicity””)  

3.  Transferring  business  risks  to  the  other  par�es  

4.  Protec�ng  the  business  from  high-­‐cost  opera�on  to  conduct  non-­‐value  added  or  suppor�ng  ac�vi�es  (focus  to  the  core  values)  

5.  Adop�ng  easily  with  fast  and  dynamic  change  

The Benefits of Managed Services let the cloud handling the issues

  Outsourcing  –  �me  dependent,  as  �me  goes  by,  benefits  increase  

  Shared-­‐Services  –  par�cipa�on  dependent,  the  more  par�es  the  be�er  

  Exchanges  Hub  –  standard  dependent,  the  more  compliance  the  higher  value  

  U�lity  Model  –  Infrastructure  dependent,  the  mature  the  technology  the  be�er  

The Cloud Type in delivering the services

  Who  are  they  inside  the  cloud?    Why  are  they  involved  within  the  cloud?    What  are  the  roles  of  each  party?    What  are  the  rela�ons  among  those  par�es?    Who  manage  all  par�cipants  in  the  cloud?    Who  is  responsible  for  the  liability  issues?    Who  hold  the  highest  accountability  in  the  cloud?    Who  should  be  contacted  in  the  emergency  �me?    Who  will  be  liable  for  any  risk  or  incident  occurred?  

Cloud Issues: WHO? to know is to love

  What  are  they  doing  inside  the  clouds?    What  services  they  offer  to  the  customers?    What  are  the  mechanism  inside  cloud?    What  kind  of  opera�onal  procedures  they  follow?    What  rules  of  the  games  exist  within  the  cloud?    What  ‘‘do’’  and  ‘‘dont’’  prac�ces  inside  the  cloud?    What  to  be  considered  in  involving  the  cloud?    What  is  the  high  risk  faced  by  the  cloud?    What  kind  of  cloud  is  appropriate  for  the  business?  

Cloud Issues: WHAT? to know is to love

  How  do  they  handle  my  data?    How  do  they  take  care  of  the  security  issues?    How  do  they  design  the  robust  infrastructure?    How  can  they  deal  with  various  requirements?    How  far  can  they  go  with  all  complex  services?    How  they  make  money  from  handling  huge  risks?    How  can  people  trust  them  ethically  and  legally?    How  to  ensure  the  endured  quality  of  services?    How  much  money  they  will  charge  the  company?

Cloud Issues: HOW? to know is to love

  That’s why we are here: –  To understand about the managed services –  To get a clear explanation about the cloud –  To listen the testimonies of the cloud users –  To hear the wisdom from the cloud providers –  To share experience with other participants –  To learn how to engage with the cloud phenomena –  To find solution through managed services offer

To make your problems SOLVED !!!

Precious Moment cloud computing and managed services

THANK YOU!