Calculating True Value Industry-Specific Clouds

© 2013 Cloud Technology Partners, Inc. / www.cloudtp.com
1
David.Linthicum@cloudtp.com / Senior Vice President
Calculating the True Value of
Industry-Specific Clouds

2
Geek Level
Your Grandparents who
are still using AOL
That guy who can convert
your name to Hex

3
Industry-specific clouds are those PaaS, IaaS, and SaaS
services that are tailored for a specific vertical, such as
transportation, retail, finance, and healthcare. IDC sees
a $65 billion market in these industry solutions for
2013, rising to $100 billion in 2016.
The value of industry-specific clouds is that businesses
within a vertical can connect to applications,
processes, and databases that are pre-defined for that
vertical within a public or private cloud. They can
extend processes and databases into the business
domain, versus defining the data and processes within
a generic cloud-based platform.
So, are industry specific clouds right for your business?
What options are out there? How do you figure out
the ROI? This session will answer those questions, and
others allowing you to make the right decisions around
the use of this technology.
Abstract

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The Cloud

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From Hype to Growth

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IDC sees a $65 billion market in
industry specific clouds for
2013, rising to $100 billion in
2016.

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Business Agility Is the Objective – Need It, Find It, Use It

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• Last year, the New York Stock Exchange announced what it
called a trading Community Platform ... basically a space
where companies can build SaaS apps for the financial trading
community.
• Johnson Controls, which has a business called Panoptix that
has created a platform for developing energy management
applications for smart buildings -- and recently announced an
app store.
• Genetic sequencing company named Illumina that hosts
BaseSpace, a collaborative PaaS environment for biologists
that provides easy-to-use analysis tools and, in the near
future, an app store.
Examples
Source: Eric Knorr

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The Value is Speed

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The Higher You Go, the Higher the Value

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Using Cloud for Vertical Process/Service Reuse
Shareable Public Cloud Services

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Sharing Vertical Data

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• Determine the cost of existing
inefficiencies
• Determine the value of agility
• Determine the amount of
process reuse
• Determine the amount of
service reuse
• Determine the value of
leveraging existing data and data
structures
• Determine the operational value
Calculating the Value

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The cloud computing
market in the health
care sector is expected
to grow to $5.4 billion
by 2017, according to
research firm Markets
and Markets.

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The Realities
According to Gartner,
anticipated growth
opportunities put some
industries at the top when
it comes to global IT
spending. However,
Healthcare Providers were
not in the top for growth
opportunities, coming in at
$15,311M. Even Utilities
beat them out by a
projected $18,756M.

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Enterprise
data center
Enterprise
data center
Private cloud Hosted private
cloud
Managed
private cloud
Enterprise
Shared cloud
services
Enterprise
A
Enterprise
B
Public cloud
services
A
Users
B
Third-party hosted
and operated
Third-party
hosted
 Private
 Implemented
on client
premises
 Client runs/
manages
 Third-party
operated
 Enterprise
owned
 Mission critical
 Packaged
applications
 Third-party
owned and
operated
 Standardization
 Centralization
 Security
 Internal network
 Mix of shared and
dedicated
resources
 Shared facility
and staff
 Virtual private
network (VPN)
access
 Subscription or
membership
based
 Shared resources
 Elastic scaling
 Pay as you go
 Public Internet
Corporate
Firewall
Source: Jimmy Mills, IBM
Not a Bad Approach

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Cloud is Changing Enterprise Buying Patterns

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• Understand your business. This leads to
the right cloud technology solutions.
• Understand your users. They ultimately
decide if the movement to cloud
computing is successful.
• Understand the technology. There are
hundreds perhaps thousands of solution
approaches and cloud technology
providers.
• Define success. What are the objectives
of moving to the cloud?
• Security, governance, and performance.
Often overlooked. New models and
technology typically required.
What’s Important:

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• The hype. Avoid following the
crowd. What seems popular is
likely not the correct solution for
your enterprise.
• The operational ROI. Most of the
money is made around the
additional business agility.
• FUD. The fears around using
cloud-based systems are typically
inaccurate.
What’s Not Important:

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Security&Identity
Management&ServiceGovernance
Data
Data Services/Abstraction
Transactional Services
Industry Specific
Processes
Composites/Portals
Monitoring and Management
Industry Specific Rules
Reference Architecture

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“as-is”

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“to be”

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Deploy

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Source: http://talkcloudcomputing.com/wp-content/uploads/2012/05/strategy-cloud-computing.jpg

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Components of the Strategy
1. Business Case
a) Operational
b) Business Agility
2. Requirements and Architecture
a) Data
b) Processes
c) Services
d) Applications
3. DevOps
4. Infrastructure
5. Security
6. Performance
7. Governance
8. Technology Analysis
9. Migration Planning
10. Test Planning
11. Acceptance Planning
12. “Rinse and repeat”

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Ask by email / David.Linthicum@cloudtp.com / www.cloudtp.com
Questions?

Calculating True Value Industry-Specific Clouds

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