Moving To The Cloud

Why Cloud Computing Matters

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What are the Business Challenges?

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Cloud Definitions

• Definition
Definition from
fromNIST
NIST (National
(NationalInstitute
InstituteofofStandards andand
Standards Technology)
Technology)
 Cloud computing
computing isisaamodel
modelforforenabling
enablingconvenient,
convenient, on-demand
on-demand
network access
network access to to
a shared poolpool
a shared of configurable computing
of configurable resources
computing
(e.g., networks,
resources (e.g., servers,
networks, storage, applications,
servers, and services) and
storage, applications, that can be
rapidly provisioned
services) that can be and releasedprovisioned
rapidly with minimalandmanagement
releasedeffort
with or
service provider
minimal managementinteraction.
effort or service provider interaction.
 This cloud
cloud model
modelpromotes
promotesavailability andand
availability is composed
is composedof five
of five
essential characteristics,
essential characteristics, three service
three models,
service andand
models, fourfour
deployment
models.
deployment models.

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Cloud Definitions

• Definition
Definition from
fromWikipedia
Wikipedia
 Cloud computing
computing isisInternet-based
Internet-based computing, whereby
computing, sharedshared
whereby
resources, software,
resources, andand
software, information are provided
information to computers
are provided and
to computers
otherother
and devices on demand,
devices like thelike
on demand, electricity grid. grid.
the electricity
 Cloud computing
computing isisaastyle
styleofofcomputing
computingininwhich
whichdynamically
dynamically
scalable and
scalable andoften virtualized
often virtualized resources are provided
resources as a service
are provided as a over
the Internet.
service over the Internet.

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Cloud Definitions

• Definition
Definition from
fromWhatis.com
Whatis.com
 The name
namecloud
cloudcomputing
computingwas wasinspired
inspiredbyby
thethe
cloud symbol
cloud that's
symbol that's
often used
often usedtotorepresent
representthethe
Internet in flowcharts
Internet and and
in flowcharts diagrams. Cloud
diagrams.
computing
Cloud is a general
computing term forterm
is a general anything that involves
for anything thatdelivering
involves
hosted services
delivering over services
hosted the Internet.
over the Internet.

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Cloud Definitions

• Definition
Definition from
fromBerkeley
Berkeley
 Cloud Computing
Computing refers
referstotoboth
boththetheapplications delivered
applications as services
delivered as
over the Internet
services over theandInternet
the hardware andhardware
and the systems software in the
and systems
datacenters
software inthat
the provide thosethat
datacenters services.
provide those services.
 The services
servicesthemselves
themselveshave havelonglongbeen referred
been to as
referred toSoftware as a as
as Software
Service
a Service(SaaS), so we
(SaaS), useuse
so we thatthat
term.term.
The datacenter hardware
The datacenter and
hardware
software
and is what
software we will
is what wecall
willa call a
Cloud.
 When
When aa Cloud
Cloud is
is made
madeavailable
available
in a pay-as-you-go
pay-as-you-gomanner
manner to to
thethe
public……The
public…… Theservice
service being
being sold is
Utility Computing.
Utility Computing.

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What is Cloud Computing?

 Delivering applications and services over the Internet:

 Software as a service

 Extended to:
 Infrastructure as a service: Amazon EC2
 Platform as a service: Google AppEngine, Microsoft Azure

 Utility Computing: pay-as-you-go computing

 Illusion of infinite resources
 No up-front cost
 Fine-grained billing (e.g. hourly)

EDBT 2011 Tutorial

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Cloud Computing: History

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Cloud Computing: Why Now?

 Experience with very large datacenters

 Unprecedented economies of scale
 Transfer of risk

 Technology factors
 Pervasive broadband Internet
 Maturity in Virtualization Technology

 Business factors
 Minimal capital expenditure
 Pay-as-you-go billing model

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Challenges

 Alignment with the needs of the business / user / non-computer

specialists / community and society
 Need to address the scalability issue: large scale data, high
performance computing, automation, response time, rapid
prototyping, and rapid time to production
 Need to effectively address (i) ever shortening cycle of
obsolescence, (ii) heterogeneity and (iii) rapid changes in
requirements
 Transform data from diverse sources into intelligence and deliver
intelligence to right people/user/systems
 What about providing all this in a cost-effective manner?

Wipro Chennai 2011 6/23/2010 10

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Enter the cloud
 Cloud computing is Internet-based computing, whereby
shared resources, software and information are provided to
computers and other devices on-demand, like the electricity
grid.
 The cloud computing is a culmination of numerous attempts
at large scale computing with seamless access to virtually
limitless resources.
 on-demand computing, utility computing, ubiquitous computing,
autonomic computing, platform computing, edge computing, elastic
computing, grid computing, …

Wipro Chennai 2011 6/23/2010 11

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Economics of Cloud Users

• Pay by use instead of provisioning for peak

Capacity

Demand Capacity

Demand
Time Time

Static data center Data center in the cloud

Unused resources
Slide Credits: Berkeley RAD Lab
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Economics of Cloud Users

• Risk of over-provisioning: underutilization

Capacity
Unused resources

Demand

Time

Static data center

Slide Credits: Berkeley RAD Lab

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Economics of Cloud Users

• Heavy penalty for under-provisioning

Capacity

Demand
Capacity 2 3
1
Time (days)
Demand Lost revenue
1 2 3
Time (days)
Capacity

Demand
1 2 3
Time (days)
Lost users
EDBT 2011 Tutorial Slide Credits: Berkeley RAD Lab
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The Big Picture
 Unlike the earlier attempts:
 Distributed Computing
 Distributed Databases
 Grid Computing

 Cloud Computing is likely to persist:

 Organic growth: Google, Yahoo, Microsoft, and Amazon
 Poised to be an integral aspect of National Infrastructure in US and
other countries

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The “Facepalm”

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Sales Pressures Marketing Pressures
Sell More with Less Shrinking Budgets
Client Management Increase brand visibility
Lack of Data and Analytics ROI on marketing budget

Business
Pressures

Service Pressures Business Model

First Call Resolution Innovation Center
Be Client-Knowledgeable Channel Strategy
Workflow and Forecasting Customer Stickiness

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Project Portfolio TCO & ROI
Application Backlog Shrinking Project Budgets
Application Silos Reconcile Skillset Matrix
Adoption and Usage ROI and TCO Scrutiny

CIO
Pressures

Business Expectation Business Model

Business Impact Innovation Center
Revenue Enhancement Partner Enablement
Cost Avoidance Customer Stickiness

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Technology is not a silver bullet…
 Requires execution of project fundamentals
 Business Alignment
 Requirements
 Technical specifications
 User Acceptance
 Demands focus for maximum benefit and ROI
 Process Improvement
 Change Management
 Solid Leadership
 Best Practices Expertise

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Why Cloud Computing is transforming
Businesses

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Cloud Delivery Rises to the Challenge

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 Where the market is going: Where it has before
In order to move to the majority phase of technology adoption, we need IT support, endorsement, and promotion.
The enablers of this adoption are IT’s ability to extend applications with a platform and the proliferation of
multivendor solutions

Mainframe Client/Server Software As A Service Cloud Computing

Technology Adoption Lifecycle

Era Geoffrey A. Moore

Mid 20th Late 20th Early 21th Today

Century Platforms Century Platforms Century Platforms

Players

•Trusted Advisor
Model •Value Added •Value Added
Direct Sales Direct Sales
Reseller Reseller
Teams Teams
•Value Added •Value Added
Distributor Distributor

Players

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Distributed Enterprise Architecture is here

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How can the Cloud help you?

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Cloud Computing Attributes

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Total Cost of Ownership

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Cloud Computing Changes the Gameboard
 Focus on Business Impact
 Accelerate Speed to Market
 Increase Adoption
 Validate Business Models quickly and thoroughly
 Provides Lower TCO and Higher ROI
 30-40% lower TCO (Yankee Group)
 Significant ROI due to Cost Avoidance and Supply Savings
vs. tradition On-Premise deployment model
 Responds well to Change
 Plan. Deploy. Innovate.
 Tools in hands of business to enact change
 Development, Governance and Compliance tools in hands
of IT

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Why is your organization using or planning to use SaaS in the
next 12 months?

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Google Apps vs. Exchange TCO Review (Serena)

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The Cloud Computing Model
 is mature
 is supported by a strong network of platforms
 is secure and scalable
 drives innovation
 provides business-focus and accelerates delivery
 creates community and customer opportunities
 lowers TCO, increases ROI
 releases the valve on “Pressure Points”

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How others are using the Cloud?

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Why is your organization currently transitioning from a current
on-premises solution to a SaaS solution?

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Case Study: Social Media

Astadia created "Crocs Ideas"

a social media site

 Consumers can POST Ideas to Crocs

 Members can VOTE on submitted Ideas and
voice comments
 Consumers can participate in product SURVEYS
to help Crocs innovate new products
 Consumers can preview the COMING SOON
products and follow these products when they
reach market

 COMING SOON: All of Crocs' other social

media presence on Facebook, Twitter, and Blogs
are now being integrated

Crocs, Inc. is a designer, manufacturer and

retailer of footwear under the Crocs™
brand. They are sold in 100 countries.

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A CRM system, short for a customer relationship management system, is software
for collecting, storing and managing customer information.
 First, CRM system helps manage
potential clients – leads. Lead
management includes lead
generation, capture and
qualification tools. 
 Second, with the help of a CRM
system you can manage existing
customers – deals and contacts.
Pipeline management gives deal and
sales pipeline management with
unlimited pipelines.
 Third, you can handle day-to-day
client interactions from a CRM
system – generating and sending
quotes and invoices from inside
CRM.
 Fourth, you can also control and
automate sales processes inside a
CRM system. Sales automation
includes dozens of sales and
marketing automation rules and
triggers.
 Last but not least, multichannel
customer contact center and helpdesk
in a CRM system helps maintain a
decent level of communication with
customers and clients.
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Case Study: CRM + Force.com
 Replacement of internal Powerbuilder application with
salesforce.com CRM and force.com application
development

 Force.com utilized for i) enhancing logic layer for data

integrations, ii) providing interfaces to present crucial data
from legacy environments and iii) storing G/L data for
analytics
 Salesforce.com deployed for account and opportunity
management
 Big Machines utilized for centralized pricing across 100
branches
 Construction data integration via MHC or Reed
 Cast Iron orchestrations for JDE integrations

Williams Scotsman offers space solutions for

 Optimization gives valuable selling time back to sales the construction, education, industrial,
commercial/retail, healthcare, and government
markets, with operations in the United States,
Mexico, and Canada.

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Manhattan Associates Replaces Legacy Support System with
Salesforce.com Service Cloud

Manhattan Associates is a software supplier of

supply chain and manufacturing applications,
and as a software company invest heavily in
technology to support their growing software
application.

Challenge
Challenge Solution
Solution Results
Results
Existing CRM was outdated, highly Integrated customer view/standards Standardization and automation of
Existing CRM was outdated, highly Integrated customer view/standards Standardization and automation of
customized,
customized,&&difficult
difficultfor
forsupport
support across
acrossgroups
groupsandandaligned
aligned support
supportprocesses
processesacross
acrossthe
theglobe
globe
organization to use
organization to use information with sales
information with sales Higher agent productivity – bridged
Higher agent productivity – bridged
Existing CRM required significant Over 250 support employees quickly process gap between groups
Existing CRM required significant Over 250 support employees quickly process gap between groups
administration & maintenance up and running Better
administration & maintenance up and running Bettervisibility/more
visibility/moreefficient
efficient
Global
Globalteam
teamspread
spreadout
outacross
acrossthe
the Ancillary
Ancillarygroups
groupsresponsible
responsiblefor
forcarrier
carrier reporting
reporting
globe with various processes; data, license key, media and training Achieved
globe with various processes;
process gaps between the different
data, license key, media and training
integrated into Salesforce and the Achievedsignificant
significantsavings
savingsper
peryear
year
process gaps between the different integrated into Salesforce and the with Salesforce Service & Support
with Salesforce Service & Support
support groups support process
support groups support process

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Ventyx Deploys Common Support and Service Platform/Portal
using Salesforce.com Service Cloud

Ventyx offer a range of solutions including Asset

management, Mobile workforce management,
customer care, Energy trading and risk
management.

Challenge
Challenge Solution
Solution Results
Results
3 support groups on 3 disparate CRM Replaced legacy systems with Consistency and standardization of
3 support groups on 3 disparate CRM Replaced legacy systems with Consistency and standardization of
applications (Siebel, Remedy, Salesforce Service and Support processes across different support
applications (Siebel, Remedy, Salesforce Service and Support processes across different support
IssueNet) with separate processes Deployment groups
IssueNet) with separate processes
and communications to the customer DeploymentofofAppExch
AppExchEntitlements
Entitlements groups
and communications to the customer and
andCustomized
CustomizedAsset/Product
Asset/Product Higher
Higheragent
agentproductivity
productivityand
and
No
Nosingle
singlerepository
repositoryfor
forcustomer
customerdata
data structure
structuretotobetter
betterserve
servethe
thecustomer
customer adoption
adoption
and
andreporting Customer
reporting Customerand
andSelf-Service
Self-ServicePortal
PortalRoll-
Roll- Streamlined
Streamlinedreporting
reportingand
andvisibility
visibilityofof
out
out data
dataacross
acrossgroups
groups
Integration of Salesforce.com with Increase in customer satisfaction with
Integration of Salesforce.com with Increase in customer satisfaction with
defect tracking systems more user-friendly portal/solution
defect tracking systems more user-friendly portal/solution
(ClearQuest/Bugazilla) database
(ClearQuest/Bugazilla) database

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What are common CIO enablers?

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Key Takeaways: Cloud Computing Benefits
 Increases Focus on business issues, not tech
 Allows for scalable, enterprise-class complexity
 Rich ecosystem of Vendors and Service Providers
 Platforms are scalable, secure and enterprise
 Web Services, XML, Javascript focused development
environments are typical, and readily available skills
 Java and .NET skills require training and focus to
migrate
 Web Services focus creates powerful integration story

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What do you need to get “Cloud-Ready”?
 Review Project Backlog and Portfolio for candidate apps
 Analyze skillset matrix of current resources
 Understand valuation of long-term software and
hardware assets
 Plan to build TCO and ROI models
 Get alignment between business drivers and IT on
priorities and strategy as it relates to Cloud approach
 Utilize best practices to achieve success
 Start with one app and expand strategy with proven
success
 Go to astadia.com/thinktank for more content

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