Cloud based technologies are becoming increasingly pervasive across society and are considered by many in business as the next major disruptive innovation. For the first time, organizations can consume, as needed, on-demand, business ready Cloud based enterprise services. This is also known as the Consumerization of IT. Transitioning to, or deploying new IT systems and services using Cloud technologies present their own unique set of challenges to the IT Departments, Project managers and Pproject management Offices (PMO) alike. The primary objective of this presentation is to provide a number of key considerations for Project Managers in dealing with projects involving Cloud computing technologies. This was presented at the 25th International Project Management Institute's Global Conference in Australia on the 11th October 2011 by Rob Livingstone

1. Cloud computing: Cloud Computing: Implications for Project Management Methodologies. ROB LIVINGSTONE- PRINCIPAL, Rob Livingstone Advisory Pty Ltd, and - Fellow, University of Technology, Sydney Brisbane, 11th October 2011

2. Cloud computing: Cloud Computing: Implications for Project Management Methodologies. What I’ll be covering: Cloud computing basic definition and attributes Overview: Public, Private and Hybrid Cloud Next few years – from confusion to calm The consumerisation of IT effect in the enterprise Project Management implications Cloud: Some key considerations for organisations The future is now Questions and discussion

4. In public cloud, the various components are all run by an external party, and you do not own anything, other than the data that you load into the system.The primary attributes of public Cloud systems are: You subscribe to the service (never own) The system is accessed via the Internet You neither have control or title over the Cloud system You have limited to full title over the data that you upload

6. No ownership

7. You own data

8. Apps stay behind

9. You control all

10. You may own

11. Offers balance of security, control

13. 4. The consumerisation of IT effect in the enterprise … also known as the ‘democratisation’ of IT Fuelled by Cloud and pervasively accessible web based applications as an individual …. I see it, I like it, I want it, I buy it (or it’s free!), I use it – Now!

15. Personal choice and immediacy reigns supreme

16. Buy it / use it without necessarily a long term in mind

17. ‘Apps’ – for iPhone™, Android™, etcFor enterprises, however, this presents a number of challenges for the unwary, and have potentially serious implications for the PMO

18. 5. Project Management implications Inconsistency in understanding of ‘Cloud’ Cloud: Compression of time Reversal of the traditional business case: ‘buy before you try’ Cloud, pilot projects and driving innovation ‘The viral cloud’ phenomenon Managing project boundary conditions Challenges for standard methodologies such as PRINCE2 Use of cloud technologies BY project managers

20. As long as this asymmetry of understanding exists, the full relevance and potential of cloud computing may not be fully realised in organisations.

23. Mostly have easy to manage configuration options through a ‘control panel’

24. Impatient business stakeholders want to bypass the ‘paralysis by analysis’ stages associated with the requirements gathering and analysis phases.

26. no up front capital is required,

27. walk-away costs are minimised,

28. Very speedy

29. Often does not require IT

30. The opportunity for immediate and rapid scale-up to production exists without the need provide working capital:

31. Very tempting for users and business stakeholders

32. Comprehensive due diligence needs to be done before production scale-up!

33. Set expectations a the start that the immediate scale-up to production will not automatically occur

35. Additional subscriptions gradually purchased for others outside of the initial user pool to approve workflows, access documents, process information etc.

36. The low barrier to entry could mask the potential for additional cost, unmitigated risk and breach of minimum governance standards.A leading Australian University experienced an unauthorised deployment of a Cloud system that was funded from one Faculty’s discretionary budget, as it fell within their prevailing local discretionary expenditure approval limits. This was only noticed when data integrity issues within their core student enrolments databases started occurring. Source: ‘Navigating through the Cloud ‘; Rob Livingstone [ISBN 13: 978-146115285], Page xvii

38. The Salesforce App Exchange, Android Market and the Apple iStore are examples of such eco-systems.

39. Some of these applications can be implemented by ends users, and extend the boundary of projects in an uncontrolled manner

41. The interpretation and adaptation of the various large scale project methodologies to volatile ‘implement first and modify as you go’ environments needs some careful consideration

43. One of the compelling value propositions in cloud computing is universal access, and the opportunity of lowering the barrier to entry for applications by using handheld applications using iPhone and Android devices, for example.

44. This could have very positive implications for geographically distributed projects, where information sharing and timely updates of project activities and status’ are important to mobile project stakeholders

45. Issues for consideration:

46. Can you scale down to a single user at the end of the project?

47. Can you ‘park’ your PM data and electronic artifacts that are stored in the cloud for later use if needed?

49. 6. Cloud: Some key considerations for organisations: a) Security http://trust.cased.de/AMID

50. 5. The key considerations for organisations: b) Privacy

51. 5. The key considerations for organisations: b) Privacy http://www.rogerclarke.com/EC/CCC.html

52. 6. Cloud: Some key considerations for organisations: c) Cost Know the TCO over the expected life-span of the system Do not exclude on-premises (Private Cloud, or traditional hosted) if these options exist Compare on like-for-like basis Illustrative example only

54. Lower cost?

58. All that effort could be wasted if there is a major sticking point in the contract.

62. Corporations Act 2001

63. Australian Standard AS ISO 15489 - Records Management

64. Australian Prudential Regulation Authority

66. It’s invisible to the end user.

67. Paradoxically, this presents those organisations concerned about IT security, risk and governance with a challenge because lack of visibility of what’s ‘under the covers’ may present unacceptable risks if fully disclosed and understood.

68. Effective project management governance is critical to ensuring that these risks are surfaced for scrutiny and management.

70. 6. The key considerations for organisations: h) Governance: System change and version Control Modify / Test Interfaces V1.1 Eg: V1.1 èV2.0

74. the value

75. the risk

76. when to buy

77. what to buy, and