On September 25th 2012 Skilltower Institute CEO Joerg Osarek is giving a keynote on the subject of the cloud computing gold rush at the heise event “application of the cloud in business”. The event is taking place in Cologne Germany and covers many interesting aspects of today’s cloud computing. Together with Andreas Wolske, CEO of managedhosting.de GmbH a VMware vCloud Service Provider both will focus on distinguishing real cloud business value from marketing blurp and empty promises of many black sheep on today’s cloud market.

1. The Cloud Computing Gold Rush
How to distinguish
black sheep from
real business chances
Joerg Osarek Andreas Wolske
managedhosting.de
the uptime* company
The cloud computing gold rush - © 2012 Skilltower Institute - www.skilltower.com 1

2. Agenda
 Introduction: Joerg Osarek and Andreas Wolske
 cloud computing: Possibillities and examples for SME
 strategic comparison:
Development, deployment and management of IT systems
 Black sheep and sustainable business chances
 Considerations about successful cloud computing
for your enterprise
The cloud computing gold rush - © 2012 Skilltower Institute - www.skilltower.com 2

3. Introduction: Joerg Osarek
IT
Manage-
The world's first ment
IT Avantgarde Game
Network changing Cloud
technologies Computing
IT &
www.skilltower.com Business
Founder & CEO Strategy
IT Archi-
tecture
www.its-people.de
Co-Founder & Partner
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4. Introduction: Andreas Wolske
managedhosting.de
the uptime* company
 Co-Founder & CEO der managedhosting.de GmbH
 VMware vCloud Powered Powered Partner
 Datacenter- und IT- Architectures
 "Cloud Computing" since 2007
The cloud computing gold rush - © 2012 Skilltower Institute - www.skilltower.com 4

5. Let's dive into cloud computing
 What is cloud computing?
 Possibilities of cloud computing for SMEs (small and medium
enterprises)
 Some cloud computing business examples
The cloud computing gold rush - © 2012 Skilltower Institute - www.skilltower.com 5

6. What is cloud computing?
 ... it isn't new: IT- outsourcing, ASP, dynamic data center
"Cloud computing offers the use an abstract IT infrastructure (e.g. computing power, storage,
network capacity or ready to use software) adapted dynamically to your needs and available over
a network."
 IaaS (Infrastructure as a Service)
 PaaS (Platform as a Service)
 SaaS (Software as a Service)
 XaaS (Everything as a Service e.g. HuaaS)
 Public-, private-, hybrid- & community cloud
Bildquelle: WikiPedia
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7. Cloud Computing: Only the next hype?
Do you remember
the SOA-hype?
Bild: http://geekandpoke.typepad.com/.a/6a00d8341d3df553ef0128764d3aef970c-800wi
Autor: oliver.widder@gmail.com, Geek & Poke , Lizenz: http://creativecommons.org/licenses/by-nd/2.0/de/
Quelle: http://geekandpoke.typepad.com/geekandpoke/2009/12/from-hype-to-hype.html
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8. Possibilities of cloud computing for SMEs
classic IT
Fotos: © #359460 NatashaOwen, #945983 DanielSainthorant, #7058491 LeoDeep – Fotolia.com ; Anpassungen © Jörg Osarek
The cloud computing gold rush - © 2012 Skilltower Institute - www.skilltower.com 8

9. Possibilities of cloud computing for SMEs
classic IT IT with cloud computing
Fotos: © #359460 NatashaOwen, #945983 DanielSainthorant, #7058491 LeoDeep – Fotolia.com ; Anpassungen © Jörg Osarek
The cloud computing gold rush - © 2012 Skilltower Institute - www.skilltower.com 9

10. Possibilities of cloud computing for SMEs
classic IT IT with cloud computing
 +-fix costs  +++speed, virtualization
 -often slow and unpredictable  ++elasticity, on demand
 +fast development and mgmt
 -growing complexity  +security, -risk
(Function, security, legal)
 +business cooperations
 -maintenance complex or
halfhearted  +- variable costs
 -often IT is not core business  +- complexity reduction (partly)
Fotos: © #359460 NatashaOwen, #945983 DanielSainthorant, #7058491 LeoDeep – Fotolia.com ; Anpassungen © Jörg Osarek
The cloud computing gold rush - © 2012 Skilltower Institute - www.skilltower.com 10

11. Possibilities of cloud computing for SMEs
classic IT IT with cloud computing
 Getting slower, more  lets SMEs innovate simplified,
expensive, SME is left behind fast and effectively to
approach new business
niches with global outreach
and reduced risks
 Slows down the innovation of
the SME's core business  ... if done right!
model
Fotos: © #359460 NatashaOwen, #945983 DanielSainthorant, #7058491 LeoDeep – Fotolia.com ; Anpassungen © Jörg Osarek
The cloud computing gold rush - © 2012 Skilltower Institute - www.skilltower.com 11

12. Cloud computing business examples
Business process
Application
Middleware
Operating System
Server & Storage
Network
Data center
The cloud computing gold rush - © 2012 Skilltower Institute - www.skilltower.com 12

13. Cloud computing business examples
business performance shrinking margin due to
over capacities
No. of users, server, storage,
demanded bandwidth
High investment
IT- resources
salaries, management cost
Leasing or write-offs
loss of productivity due to missing IT resources
The cloud computing gold rush - © 2012 Skilltower Institute - www.skilltower.com 13

14. Cloud computing business examples
high quality by
business performance dynamic resource allocation
No. of users, server, storage,
demanded bandwidth
IT- resources demand oriented cost structure
setup costs
salaries, management cost
Leasing or write-offs
The cloud computing gold rush - © 2012 Skilltower Institute - www.skilltower.com 14

15. Cloud computing business examples
commision based business performance
No. of users, server, storage,
demanded bandwidth
high quality by
dynamic resource allocation
demand oriented cost structure
setup costs
IT resources
flexible cost structure based
fast availibility & stand by resources on demanded resources
The cloud computing gold rush - © 2012 Skilltower Institute - www.skilltower.com 15

16. IT strategy comparison
Development, deployment and management of IT systems
Today (cloud)
wrong
correct
The cloud computing gold rush - © 2012 Skilltower Institute - www.skilltower.com 16

17. IT strategy comparison
yesterday's extreme:  In the basement connected to
short-circuit sockets
handcrafted IT:
 "What's the heck? it works!"
The CEO's son somehow
put this stuff together.
 only oral requirements,
no documentation
 development on production
system
If the CEO's son is absent,
 security by obscurity
chaos arises. ENIAC ©: Public Domain
The cloud computing gold rush - © 2012 Skilltower Institute - www.skilltower.com 17

18. IT strategy comparison
yesterday's extreme:  always bought top software
suites
perfect example IT with risk  customized by hundreds of
of frittering consultants
 redundant hardware
 always vacation replacements
If you did this the last 30
years, you are broke or you
have a monopoly.  100% documentation © Jörg Osarek
The cloud computing gold rush - © 2012 Skilltower Institute - www.skilltower.com 18

19. IT strategy comparison
strike balance yesterday  fast and agile IT
implementation reacting to
market demands
 pragmatic balance for
processes, documentation,
separated environments
(develop, test, production)
 sufficient redundancy in
technology and staff
© Jörg Osarek
The cloud computing gold rush - © 2012 Skilltower Institute - www.skilltower.com 19

20. IT strategy comparison
today‘s extreme in the cloud: 2 false advises
Leave your fingers off.
technically and legally
completely insecure!
You are left
behind
The cloud computing gold rush - © 2012 Skilltower Institute - www.skilltower.com 20

21. IT strategy comparison
today‘s extreme in the cloud: 2 false advises
Leave your fingers off. Welcome to the cloud.
technically and legally You may now switch off
completely insecure! your brain.
You are left Chaos
behind emerges
The cloud computing gold rush - © 2012 Skilltower Institute - www.skilltower.com 21

22. IT strategy comparison
strike balance today same as yesterday:
 fast and agile IT implementation reacting to
market demands
 pragmatic balance for processes,
documentation, separated environments
(develop, test, production)
 sufficient redundancy in technology and staff
 NEW!: professionalization
and specialization required
competitive due to increased IT
advantage complexity!
(in house or outsourced)
The cloud computing gold rush - © 2012 Skilltower Institute - www.skilltower.com 22

23. Black sheep and real business chances
 What black sheep whisper in your ear
 How to recognize sustainable chances for the development of
your business
The cloud computing gold rush - © 2012 Skilltower Institute - www.skilltower.com 23

24. Black sheep and real business chances
 For the black sheep you are only one of
many customers. For you it might be
your life's work!
 Careful if somebody promises a rose
garden.
 Cloud computing must follow your
business, not your business the cloud.
Your business
your future SuperDuper
Cloud
The cloud computing gold rush - © 2012 Skilltower Institute - www.skilltower.com 24

25. Black sheep
 Access control:
where is my data located? Can I acess it anytime? Data loss?
 Compliance:
insufficient multi tenancy, violated governance rules
 Service providers:
broke provider, unknown subcontractors
 (in Germany) the CEO is held responsible for following all IT
policies – also when using the cloud.
The cloud computing gold rush - © 2012 Skilltower Institute - www.skilltower.com 25

26. How to recognize real business chances
 Significant potential for cost saving by using IT resources
dynamically
 allows real agility and creation of value for your IT
 meaningful integration of IaaS, PaaS and SaaS
 hybrid models with "guarantee of mobility"
 Bottom Line: Cloud- Computing is meaningful if it allows high
business agility, a infrastructure that is stable and available
anytime, combined with reduced costs.
The cloud computing gold rush - © 2012 Skilltower Institute - www.skilltower.com 26

27. Considerations about a successful cloud
Considerations about successful cloud computing
for your enterprise
 Navigation to your goal...
 Legal aspects, server location and more
 symmetrical business partnering
 four-leaf clover for change projects:
business, people, technology, corporate governance
The cloud computing gold rush - © 2012 Skilltower Institute - www.skilltower.com 27

28. Navigation to your goal...
"Beware of salesmen
that have answers to all of your problems
without having asked you a single question!"
Chuck Ian Gordon
The cloud computing gold rush - © 2012 Skilltower Institute - www.skilltower.com 28

29. Navigation to your goal...
If somebody wants to help you getting to your goal
he must know your position (your situation).
"One size fits all" will fail!
The cloud computing gold rush - © 2012 Skilltower Institute - www.skilltower.com 29

30. Navigation to your goal...
 Vendors and service providers
 Salesforce (SaaS)
 Amazon S3 , EC2 and AWS (Combination of IaaS and PaaS)
 Microsoft Azure (PaaS)
 VMware vCloud Services
 Other providers (GoGrid, Rackspace etc.)
 What is the advantage for your IT?
 Where in your company do you profit most?
The cloud computing gold rush - © 2012 Skilltower Institute - www.skilltower.com 30

31. Legal aspects (Germany)
 provider dependency
 Microsoft Azure and Amazon offer few "ways back"
 VMware vCloud Services as neutral eco system
 guarantee of service relocation to another vendor
 physical sovereignty for your data: Do you have data access in a
reusable format anytime?
 data protection and availability
 server location and court of jurisdiction of the provider
 details of contract with the provider and his subcontractors
The cloud computing gold rush - © 2012 Skilltower Institute - www.skilltower.com 31

32. symmetrical business partnering
 Arm wrestling with
King Kong isn't wise!
 Exception:
Convenience products, where
provider change is easy.
 Partnering rule of thumb:
small with small,
medium with medium,
large with large
Quelle: http://commons.wikimedia.org/wiki/File:Kingkongedo38.jpg Public Domain
The cloud computing gold rush - © 2012 Skilltower Institute - www.skilltower.com 32

33. four-leaf clover for change projects
Legal aspects
Technological aspects
■ liability management
■ e.g. Data security,
■ contract management
■ availability,
■ compliance
■ Server location (access from US authorities) © Jörg Osarek
■ ... German: Datenschutz in der Euro Cloud: http://www.heise.de/artikel-
archiv/ct/2011/16/49_kiosk und http://www.heise.de/newsticker/meldung/Auch-
Google-uebermittelt-europaeische-Daten-an-US-Behoerden-1319347.html )
the four (Cloud-) success factors
People aspects Business-Case
■ for the SME
■ resistance in IT department and from CIO in
medium enterprises ■ for its customers
■ You must win employees for the new solutions
© Kurhan - Fotolia.com 6659463 © Marc_Dietrich - fotolia.com 2446638
The cloud computing gold rush - © 2012 Skilltower Institute - www.skilltower.com 33

34. four-leaf clover for change projects
Legal aspects
Technological aspects
■ liability management
■ e.g. Data security,
■ contract management
■ availability,
■ compliance
■ Server location (access from US authorities) © Jörg Osarek
■ ... German: Datenschutz in der Euro Cloud: http://www.heise.de/artikel-
archiv/ct/2011/16/49_kiosk und http://www.heise.de/newsticker/meldung/Auch-
Compliance and Corporate Governance incl.
Google-uebermittelt-europaeische-Daten-an-US-Behoerden-1319347.html )
ISG (Information Security Governance)
the four (Cloud-) success factors
Important:
Business-Case
People aspects Balance between security and freedom.
■ for the SME
■ resistance in IT department and from CIO in
medium enterprises for it's customers
Too many restrictions ■destroy motivation and creativity*
■ You must win employees for the new solutions
© Kurhan - Fotolia.com 6659463
of employees leading to opposition or sabotage.
© Marc_Dietrich - fotolia.com 2446638
(*the most powerful energy source an enterprise has)
The cloud computing gold rush - © 2012 Skilltower Institute - www.skilltower.com 34

35. Summary
Possibilities of cloud computing
 Great added value: speed, flexibility,
costs following the business performance.
IT strategy yesterday and today
 Old IT virtues remain. Additionally important (complexity):
Professionalization and specialization (external or internal)
Black sheep Find your balance
 are discovered by "One size fits all"-offers
and by huge amount of fine print in contracts. Your business,
Real business chances follow your business needs. your future
Cloud success factors
 symmetry of power + clover-leaf (people, business, legal, technology)
The cloud computing gold rush - © 2012 Skilltower Institute - www.skilltower.com 35

36. Contact
Skilltower Institute managedhosting.de GmbH
Joerg Osarek Andreas Wolske
Founder and CEO Geschäftsführer
Triftstr. 30 Friedrichstraße 191
D-61350 Bad Homburg D-10117 Berlin
Germany Germany
mailto:joerg.osarek@skilltower.com mailto:andreas.wolske@managedhosting.de
Tel.: +49(0)151-23 0 24 333 Tel.: +49 30 202364 910
www.skilltower.com www.managedhosting.de
The cloud computing gold rush - © 2012 Skilltower Institute - www.skilltower.com 36