Towards a Virtual Company

Discussion
• Let us check this company:
– https://fire-engine-red.com/

• Read this Blog:

– https://blog.hubstaff.com/successful-virtual-comp
anies-around-the-world/
 Defining a virtual company

An organization using ICT to remotely work and

connect with employees, contractors, customers
and suppliers

Ultimately, an organization with no central office and

with scattered management and employee base
 Virtuality Spectrum

High Dubizzle Current position is

determined by the levels of
the following factors:
• Online Sales
Amazon • Remote Work
• Cloud Computing
• Automated Process
• Outsourcing
Mid IBM • JIT Warehousing

MBC Ideal position is determined

by the level of competitive
advantage and eventually
ROI.
Low Fly Dubai
 Current Vs Ideal Position

High

Ideal position

Mid Needed measures

to change position?

Current Position

Low
 Customer Service
Sales
Administration
Marketing

Manufacturing
CONTRACTORS

Internet
PARTNERS
/
BUSINESS OUTSOURCEES

Transportation
Cloud
Entrepreneur
(CEO)
REMOTE
EMPLOYEES

Human Resources

Finance

Accounting IT Services
 Building a virtual company

Hang on the cloud

Ultra Efficient Operations

• Well documented process

• Extra precise requirements
• Cross-functional teams
• Contractors engagement
• Quasi-real environment

Focus on your best and outsource the rest

 Cloud Computing

Not a new technology, but a new approach to using IT

IT as a leased utility, not as an owned asset

Characteristics of Cloud Services
Scalability • Dynamic Provisioning and Multi-tenant design

Availability • Fault-tolerance and Resilience

Manageability • Automatic control and monitoring

Accessibility • Anywhere and Any Device through Thin Client

Performance • Powerful and optimized infrastructure

Types of Cloud Services
se
Enterpri

Software as a Service (SaaS)

Platform as a Service (PaaS)
Infrastructure as a Service (IaaS)
 Software as a Service (SaaS)
SaaS is a software delivery methodology that provides
licensed multi-tenant access to software and its functions
remotely as a Web-based service.

Examples
 SaaS Technologies and Services
Underlying Technology
 Web Service

Services
 Web-based Applications
• General applications
• Business applications
• Scientific applications
• Government applications
 Web Portal
 Platform as a Service (PaaS)
PaaS provides all of the facilities required to support the
complete life cycle of building and delivering web
applications and services entirely from the Internet – From
operating systems to configuration management tools.

Examples
 PaaS Technologies and Services
Underlying Technology
 Runtime Environment

Services
 Programming IDE
• Programming APIs
• Development tools
 System Control Interface
• Policy based approach
• Workflow based approach
 Infrastructure as a Service (IaaS)
IaaS is the delivery of technology infrastructure as an on
demand scalable service through the internet – from
computational capacity on servers and telecommunication
bandwidth on network devices to data storage on shared
drives.
Examples
 IaaS Technologies and Services

Underlying Technologies
 Server Virtualization
 Storage Virtualization
 Network Virtualization

Services
 Resource Management Interface
 System Monitoring Interface
 Cloud Deployment Models
 Public Cloud
 Private Cloud
 Hybrid Cloud

Each cloud model share the same characteristics of a typical

cloud service. They differ in the scope and access.
 Public Cloud
 Available to the general public and is openly
accessible.
 Hosted by an organization selling cloud services.

e
Enterpris

SaaS
PaaS
IaaS
 Private Cloud
 Available within an enterprise with restricted
access to its direct stakeholders.
 Hosted by the enterprise or a third party.

SaaS
se
PaaS Enterpri
IaaS
 Hybrid Cloud
 A composition of both public and private
clouds.

SaaS
se
PaaS Enterpri
IaaS
SaaS
PaaS
IaaS
Choosing between Public and Private Clouds
Public Cloud Private Cloud

Infrastructure Homogeneous Heterogeneous

Policy Model Common defined Customized & Tailored

Resource Model Shared & Multi-tenant Dedicated

Cost Model Operational expenditure Capital expenditure

Economy Model Large economy of scale End-to-end control

Examples of Online Services on the Cloud
 Storage and Backup (Egnyte, Dropbox)
 Computing Power (Amazon EC2)
 Ecommerce services and web hosting
 Office Tools (Google Docs, Google Apps, Microsoft
Office Live Small Business)
 Human Resource Management (Force.com)
 Finance and Accounting (outright.com, bill.com)
 Customer Relationship Management (salesforce.com)
 Communication (Skype)
 Remote IT Tendering (VNC, LogMeIn)
 Database Management Systems (Quickbase)
Features of Cloud Services
 On-Demand IT Infrastructure

 Scalability/Flexibility

 Pay for what you use

 Cost Savings

 Application Commoditization

 Improved Resource Utilization

 Improved Industrial Specialization

 Cloud-Related Issues

Security Issues

Privacy Policies

Terms of Service

High Cost for Large Enterprise

(over the long run)
 Comparison
In House Deployment Cloud Services

Investment Risk Enterprise takes the risk Cloud Reduces the risk

Cost IT investment and human Pay as you go

resources

Time duration Long deployment time Fast to business ready

Management Poor control Professional control

Resource Utilization Under-utilized Improved utilization
Power Consumption High Low
Data Backup Regular user backup Cloud service guarantee
 Cloud Adoption Framework
Envision Align Launch Evaluate
Business Level

Business People Governance

• Strategic Alignment • Skills Management • Portfolio Management
• Budget Planning • Cultural Impact • License Management
Technology Level

Platform Security IT Operation

• Architecture • Access Control • Development
• Provisioning • Data Protection • Monitoring
 Timeline of Cloud Computing
1950/60
__________________________________

Mainframe
Computing

REF - http://www.soliantconsulting.com
 How the Cloud Transformed Business

of companies are organization’s

90% on the cloud. $2.2M average spending
on the cloud.

of workload will expected

94% be on the cloud $623B market in
in 2021 2023.

of companies
47% migrate to cloud
for cost purpose.

REF - https://hostingtribunal.com/blog/cloud-computing-statistics/#gref
 Re-allocation of IT expenditures
Most companies today spend roughly 80% of their IT budget on
operations and maintenance.

DATACENTER COSTS
Plan 5%
Deploy 10%
Cloud Computing reduces
20%
Operate 25% Labor costs
50%
Labor
Expense Support 10%

80%
50% Facilities 7%

Network 11% Cloud Computing reduces

Other
Expenses SW 9%
Facilities, Network,
HW 23%
Hardware, Software
maintenance costs
On the Risks of Outsourcing

Delays affecting timely delivery and customer

satisfaction
Reduced product or service quality affecting customer
satisfaction
Transition failure due to insufficient planning and/or
resources

Risk of supply interruption due to an outsourcee’s

financially viability
 Outsourcing Best Practices
Only outsource work having precise requirements
and timeframes and tight wiggle room

Partner and share knowledge with outsourcees

Set a firm and clear policy for penalties and rewards

Closely audit the outsourcees

Auction your business

Virtual Organization Management Challenges

Political

Geo-
Cultural
economical
 Political Challenges
 Many countries regulate or prohibit the transfer of data
across their national boundaries

 Others severely restrict, tax, or prohibit imports of

hardware and software

 Some have local content laws that specify the portion of

the value of a product that must be added in that country
if it is to be sold there

 Others require a business to spend part of the revenue

they earn in a country in that nation’s economy
 Geo-economical Challenges

 Physical distances still a major problem

 Takes too long to fly in specialists

 Hard to communicate in real time across time zones

 Poor telecommunications services

 May be hard to find skilled local workers

 Differences in the cost of living and labor costs

 Cultural Challenges

 Language and cultural interests

 Religions and customs

 Political philosophies

 Cultural training needed before assignments

 Work styles and business relationships