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Cloud Computing GPSEG, New Jersey Chapter Friday, March 25, 2011 Chris Larsen, PMP IT Evolution, Inc.

Introduction to Cloud Computing for Executives

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Overview of the concepts, business and technology behind cloud computing. Delivered to a monthly meeting of the Greater Philadelphia Senior Executive Group (GPSEG).

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Page 1: Introduction to Cloud Computing for Executives

Cloud Computing

GPSEG, New Jersey ChapterFriday, March 25, 2011

Chris Larsen, PMPIT Evolution, Inc.

Page 2: Introduction to Cloud Computing for Executives

• Philadelphia-area IT management consulting practice

• Business and technology alignment• Strategic and operational guidance

Page 3: Introduction to Cloud Computing for Executives

?

Page 4: Introduction to Cloud Computing for Executives

?

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Cloud

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Network

Storage

Computation

Cloud

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VirtualizationComputation

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Pauline, CEO

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Pauline has a great new idea…

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Capability

Infrastructure

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Technology

Resources

1 2 3

Time

Anticipated Peak Demand

Infrastructure

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Technology

Resources

1 2 3

TimeInfrastructure

Capacity to Meet Peak Demand

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Technology

Resources

1 2 3

Time

Capacity

Infrastructure

Actual Demand

Overprovisioning

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Technology

Resources

1 2 3

Time

Capacity

Demand

Infrastructure

Underprovisioning

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Risk: spend too much

Risk: spend too little

Infrastructure

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Pay as you go No rent or own

Rapid setup Weeks, not years

Demand-driven capacity Scalable bandwidth, storage, computing cycles

No capital equipment Buying a service, not a server

Flexibility Short term vs. long term

Easier, better data protection Backup, disaster recovery, security

Transfer of risk of misestimating It’s theirs, not hers

Lower development costs Quick deployment of dev and test environments

Infrastructure

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Hardware cost Per user cost

0 5 10 15 20 25 0 5 10 15 20 25

Traditional Computing Cloud Computing

Cost

of O

wne

rshi

p

Cost

of O

wne

rshi

p

CapEx OpExbecome

s

Infrastructure

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You build and maintain server from scratch or use packaged

server

You build and maintain server, but can use any

of variety of Microsoft tools

You build capability

within their controlled

environment

Low-level

“clean slate”

Mid-level

Mixed services,

Custom and packaged

High-level

Their platform,on their terms

Infrastructure

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Public Cloud

Works best for:• Seasonal• Event-based• Unknown• Predictable or

unpredictable bursts

Private Cloud

Works best for:• Static, predictable demand• Microsecond precision of

data movement (e.g., stock trading)

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Capability

Infrastructure

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Capability

Custom data processing• Data collection, transformation, integration• Number-crunching• Content management

Standard collaboration and business apps• E-mail• Text docs, spreadsheets, slide decks, etc.• Sales automation and contact management• Software as a Service (SaaS)

System Development• Easily deployed

development environments• Simulations for testing

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• Vendor lock-in, data lock-in, "single-link-in-the-chain" vulnerability

• Security, confidentiality, compliance, auditability• Data storage location (domestic, foreign)• Migrating to the cloud• Difficulty of extracting data from the cloud• Reputation fate sharing• Business continuity, availability• Commercial software licensing• Monitoring and management

Pauline worries about other perils…

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Risk vs. Reward

Should you consider the cloud?

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Is your technology infrastructure keeping pace with your business growth (or shrinkage)? (Do you know?)

How well is your business adapting to extreme peaks or valleys of customer demand?

How well is your infrastructure meeting the demands of its business users for certain performance levels? (Do you know?)

How satisfied are you with your time-to-market for new business offerings?

Does your organization need to quickly enable a new internal capability?

Do you need to reduce costs to become more competitive? Which costs? Are they CapEx or OpEx?

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If these are in your current strategy…

Reduce costs Increase agility, adaptability, reliability Reduce business continuity risk Sharpen focus on business

…you should check out the cloud.

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Chris [email protected]

610.220.0018 (m)