It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is the most

adaptable to change.

SaaS vs. IaaS vs. PaaS• Software as a Service (SaaS): Complete application systems

delivered over the Internet on some form of "on-demand" billing system: Salesforce.com, Google Apps…

• Platform as a Service (PaaS): Development platforms and middleware systems hosted by the vendor, allowing developers to simply code and deploy without directly interacting with underlying infrastructure: Google AppEngine, Microsoft Azure, Force.com…

• Infrastructure as a Service (IaaS): Raw infrastructure, such as servers and storage, is provided from the vendor premises directly as an on-demand service: Amazon Web Services, GoGrid…

Imagine

Monday: 25 000 users

Tuesday: 50 000 users

Thursday: 250 000 users

ImagineMonday: 50-100 servers

Tuesday: 400 servers

Wednesday: 900 servers

Friday: 3400 servers

Cloud PowerCloud PowerAnimoto and Amazon EC2

Num

ber

of

EC

2 Inst

ance

s

4/12/2008

Launch of Facebook modification.

Amazon EC2 easily scaled up and down to handle

additional traffic

Peak of 5000 instances

4/14/2008 4/15/2008 4/16/2008 4/18/2008 4/19/2008 4/20/20084/17/20084/13/2008

Steady state of ~40 instances

4 TB Data 100 Nodes 11 Million PDFs

100 instancesx 24 hoursx $0.10 / Hr= $240

The Internet and its attendant array of consumer devices, networks and content sources have fundamentally changed how customers, employees and partners expect to interact with the enterprise (Gartner CIO survey 2008/2009).

The switch

Publishing is complex and limited to few traditional

media and online merchants

Value is created by aggregating

content (portals)Easy and free

publication for all Value is generated by tools allowing to publish easily

Main

ly n

arr

ow

ban

d

Main

ly B

road

ban

d

2004 2005

Traditional media

Alternative media

Google search

Flickr

Wikipedia

netvibes

Web 1.0 Web 2.0

Broadband is (becoming) a right in Spain and Finland

Technology and social factors have converged over the past few years to create a phenomenon called

social computing

TECHNOLOGY Cheap hardware and software reach the masses. Simple devices that anyone can operate.

SOCIAL CHANGE Consumers look for cost and time efficient technologies, ways to make their voices heard. Younger techno savvy generations pioneer the use of personal networks and viral communication.

Source: Forrester (2006) – Social Computing.

Internet statistics

• 100 billion clicks per day

• 55 trillion links

• It uses 5% of the global electricity

• 2 million emails per second

• 1 million IM messages per second

• 8 terabytes per seconde traffic

• 65 billion phone calls per year

Social Media statistics

• 20 hours of video uploaded

every minute onto YouTube

• Facebook 600k new members

per day

• 900.000 blogs posts put up

every day

• Second Life 250k virtual

goods made daily

• 700 million photos per day on

Facebook

• Twitter 18 million new users

per year

• 4 million tweets sent daily

• 1250 text messages per

second

This is your new intranet

Identity? Facebook Connect!It’s the social graph that

counts!

The Perfect Storm has changed Business Focus

Business has been hit successively with;

•The Credit Crunch•Globalisation of Competition•Commoditisation of key Activities•Customisation requirements for Products•Expectations for new levels of online Services

and then there is the Technology impacts around;

•The Ubiquitous Connectivity•Social Collaboration and Networks•The arrival of ‘The Cloud’•etc …..

So how do we Harness the forces of Change?

NEW ORGANISATIONAL PARADIGMSHOW BUSINESS TECHNOLOGY IS CHANGING COMPANIES

SOCIAL(ISM)?COMMUNAL ASPECTS OF DIGITAL CULTURE

TECHNOLOGY FUELED CHANGE

THE FUTURE OF PRODUCT AND SERVICE MARKETING & SALES

So its not just Traditional IT; there are new technologies too

People

InternalExternal

Applications Computers

Web Services

Areas where traditionalEA models often struggle

• Don’t respond to change quickly enough

• Aren’t aligned with current business reality

• Lack of focus on driving consumption (or network

effects)

• Too centralized and isolated

• Expensive and resource-intensive

• Overengineered in the wrong places

• Excessively constraining.

The architecture“stack” is bigger now

Capgemini’s Crown model

Pressure forBusiness

Change

Pressure forIT Stability

ComplyThe Enterprise Transactions and Data; ERP and Legacy Applications

OrganizeThe use of SOA to achieve cohesive executions

DifferentiateA Business Manager’s Customizable Solution

PersonalizeAn Individual’s use of the capabilities of Web 2.0

Business and Technology Architecture Governance Model

PersonaliseAn Individual’s capability to choose their ‘experience’

in how they wish to ‘Interact’ and ‘collaborate’

DifferentiateA Manager’s capability to build locally unique

‘differentiating’ capabilities both externally and internally

Organise (SOA)Common, shared core processes that support each

differentiated offer above, and connect to transactional IT applications below

Comply (ERP, etc.)Traditional Enterprise Applications with organised procedures and data integrity, keeping compliant

business results

Loose Coupled Business Technology

SOA the coupling layer between both

Tight CoupledInformation Technology

A Services Governance Model – with the Business!

There is an Interesting Inversion in this …

Business and Technology Architecture Governance Model

PersonaliseAn Individual’s capability to choose their ‘experience’in how they wish to ‘Interact’ and ‘collaborate’

DifferentiateA Manager’s capability to build locally unique ‘differentiating’ capabilities both externally and internally

Organise (SOA)Common, shared core processes that support each differentiated offer above, and connect to transactional IT applications below

Comply (ERP, etc.)Traditional Enterprise Applications with organised procedures

and data integrity, keeping compliant business results

Loose Coupled Business Technology

Loose Coupled Business Technology

SOA the coupling layer between both

SOA the coupling layer between both

Tight CoupledInformation Technology

Tight CoupledInformation Technology$1

$2

$3

Margin

$1

$2

$3

Revenue

Cost or Value?

What the heck are Mashups?

An enterprise mashup is a custom application rapidly assembled by (or in close collaboration with) business

users in short timescales to meet immediate business needs. Typically,

they combine data, functionality or processes from multiple existing

internal or external IT assets to create innovative business value.

An enterprise mashup is a custom application rapidly assembled by (or in close collaboration with) business

users in short timescales to meet immediate business needs. Typically,

they combine data, functionality or processes from multiple existing

internal or external IT assets to create innovative business value.

An enterprise mashup platform is software infrastructure that provides tools to rapidly assemble widgets in a visual environment thereby allowing easy combination of data, functionality and processes, even by business users.

An enterprise mashup platform is software infrastructure that provides tools to rapidly assemble widgets in a visual environment thereby allowing easy combination of data, functionality and processes, even by business users.

Impacts on the business operating model

Infrastructure-as-a-Service(IaaS)

Platform-as-a-Service(PaaS)

Software-as-a-Service(SaaS)

Business Process Outsourcing(BPO)

Internal Software + Service& traditional outsourcing

E.g. Finance BPO, PayrollTheir people, process, application, platform + Infrastructure

E.g. Salesforce.com, Google AppsTheir application, platform & InfrastructureYourpeople, process and operationE.g. Force.com, Gigaspaces & AppistryTheir platform & InfrastructureYour application, people & processE.g. Amazon Web ServicesTheir infrastructure, operations & supportYour application, platform & processesYou own everythingInfrastructure, platform, app’s & process. Contract parts of activities to partners

Com

mod

itisati o

n

Deg

ree o

f con

t rol

A balance of Control and Standardization

Types of Multitenancy in the Cloud

App App App

ApplicationHost In Cloud IaaS / PaaS

Create Own IPVersion of App

Multi-Tenant Reseller ModelResell MultipleVersions of IP

App App

ApplicationHost In Cloud IaaS / PaaS

POC – 1 App LatencySpeedResponse

Multi-Tenant Infrastructure Sustain Model

Move overGroupsof Apps

Applications & Infrastructure Maintenance Portfolio Assessment & Migration

Types of Multitenancy in the Cloud

App

Application

Host In Cloud SaaS

Multiple TenantsOf the single Application

PaaS API

Multi-Tenant Software Usage Model

MultipleTenant versions

Meta Modelconversion

App App

ApplicationHost In Cloud IaaS / PaaS

Multi-Tenant Application instances Model

Multiple OSVMIs of App

Transparency : the provisioning boundary shifts in the Cloud to a shared model increasing

security needs

Device

Network IP/MAC

AuthID

App OSImage

PhysicalServer

URL

TCP/IP

SaaS

PaaS

IaaS

APaaS

ProvisionlevelAbstraction

IncreasedShared Exposure

+

IncreasedPhysicalBoundaries

DomainID

Monitoring becomes more important

What is your SLA

Using 5 services with a guaranteed uptime of 99% will result in a guaranteed uptime at your site of

95%

The Required Future Business Model

The Architecture over a PaaS delivering by SaaS

Degree of Ready Built

PDFA

DOING BUSINESS IN A NEW WAY

Examples

Lego factory

• Lego had traditionally been surrounded by a highly active constellation of Lego User Groups - fan communities comprising of both adult and young members

• These groups maintained large online presence; operated independently of the company; exchanged and showed creative toy designs and models amongst themselves

• Lego needed to move out of closed proprietary mode and adapt a participative strategy for customer interaction, which would utilize existing user creativity in product design

BACKGROUND

• Lego launched the Lego Factory (http://factory.lego.com) – an online model of engagement for potential and existing Lego users, which allows users to design, share and buy their own customized LEGO models

SOLUTION

• Through the Lego Factory, the company has taken a step further in the evolution of user involvement, building strong brand relationship

• The initiative has created high levels of awareness and interest with the consumers

• The initiative has put Lego a step ahead of competition by moving out of closed proprietary content mode and involving fresh ideas from consumers and community for New Product Development

BENEFITS

THE LEGO FACTORY WEBSITE

- Users interested in custom-designing their own Lego models have to download and install the ‘Lego Digital Designer’ –

- In the designer, the user can drag and drop to create a virtual toy design

- Once the user has created a design, he can upload the same to the online gallery

- Lego approves all designs before they are added to the online gallery, to filter out models for appropriateness for all age groups

- Designer users can then order the bricks needed to make their model, and also customize their own box for the model

- Other users on the site can buy uploaded designs in the gallery, and will receive both the bricks for the model as well as the building instructionsSource: MRD Lab Analysis. Capgemini, “ECR Europe Conference: Future Consumer Presentation”, May 2008. coBrandit.com, “Lego Co-creation

Presentation by Mark Hansen: Video”, September 2006. Crowdsourcingdirectory.com, “Co-Creation in Lego Factory”, September 2007. European Centre for the Experience Economy, “Lego’s participative army marches on”, April 2008.

P&G connect + Develop

• As P&G grew to a $70 billion enterprise, the global innovation model it devised in the 1980s was yielding shrinking success rates

• Their R&D productivity had leveled off, and innovation success rate had stagnated at about 35%, whereas innovation costs were climbing faster than top-line

• While P&G owned a 7500+ strong R&D team, it realized that viable product innovation was increasingly being done externally at small and midsize entrepreneurial companies

BACKGROUND

• More than 35% of P&G’s new products have elements that originated from outside P&G, up from about 15% in 2000

• R&D productivity increased by nearly 60%• R&D investment as a percentage of sales is down

from 4.8% in 2000 to 3.4% in 2006• P&G’s average two-month cycle of generating

physical prototypes and testing them with consumers has reduced to around 24 to 48 hours

BENEFITS

• P&G launched the ‘Connect + Develop’ initiative, tapping into a global innovation network comprising of a host of sources, right from independent innovators to virtual innovator networks such as InnoCentive

• Having a clear sense of consumers' needs, the company identifies promising ideas throughout this network and applies its own R&D, manufacturing, marketing, and purchasing capabilities to them to enhance the rate of innovation

SOLUTION

P&G’s Global Innovation Network

P&G CONNECT + DEVELOP

P&G identifies top 10 customer

needs

P&G converts them into ‘science problems and sends into the network

P&G’s 7500+ R&D team work on solutions

suggested and with internal communities

INNOVATIONS In Areas Of Packaging, Design, Marketing Models, Research Methods, Engineering, Technology, Etc

Source: MRD Lab Analysis. Harvard Business School, Working Knowledge, “P&G's New Innovation Model”. Leveraging Ideas for Organizational innovation Blog, Dr. Kevin Desouza, “ Connect & Develop Innovations the P&G Way”. P&G, “P&G Connect & Develop – Brochure”.

Nike+, in collaboration with Apple

Nike wanted to create an immediately resonant experience for a broad target market, from marathoners to fitness joggers

Nike+ was born as a multi-channel, multi-sensory marriage of Nike and Apple technologies

Nike+ provides a robust platform of virtual racing, progress tracking, motivational goals and stories, global community comparison tools

BACKGROUND

SOLUTION

1

2

3

HEAR YOU RUN…

SEE YOU RUN…

CONNECT AND CHALLENGE

Sensor in the shoe helps the runner hear through the iPod, the details about pace, time, distance and calories burned

On docking and synchronizing the iPod, Nike+ software loads the workout statistics to their website where the user will be able to track his/her workout progress

Run data can be used to track progress, set goals, motivate runners. win rewards and challenge pals or all Nike+ users

Widgets for setting challenges, goals…

Blog facility for Nike+ users

Link to purchase Nike+ kit and other Nike gear

CUSTOMER CENTRICITY THROUGH

BETTER INTERACTION USING WEB 2.0

Nike+ is a unique way to engage with and promote higher levels of brand identity amongst Nike users

Delivers increased value to Nike users through a unique way of collaborating

Engages current and prospective Nike users with uninterrupted and targeted advertising

20% reduction in ad budgets as Nike is moving towards developing its own media network through such technological endeavors

Total Sales worth $59 million and 1.8 million users

August 2008; 800,000 people globally simultaneously run a 10km race in 26 cities

Share of the Sports Shoe market: 2006 – 48% 2008 – 61% (12 month average)

BENEFITS

I

I

II

II

IIIIII

Nike.com

III

Source: MRD Lab Analysis. Nike+ website. ‘Nike does business 3.0’ Phill Butler, 2007.

CLOUD COMPUTINGExample

Undifferentiated Heavy LiftingUndifferentiated Heavy LiftingThe 70/30 SwitchThe 70/30 Switch

of time, energy, and dollars on differentiated value creation

of time, energy, and dollars on undifferentiated heavy lifting

30%30%

70%70%

The Capacity Planning The Capacity Planning NightmareNightmare

Irate calls from senior managment

InfrastructureCost $

time

LargeCapital

Expenditure

TraditionalHardware

ActualDemand

CloudComputing

PredictedDemand

Rick Mans

rick.mans@capgemini.com+31 6 512 10 144

http://twitter.com/rickmanshttp://www.linkedin.com/in/rickmans