1. Picture and possibility of system
realized by cloud computing
-- Anatomy of Windows Azure and more
ITLeaders 2010.5
Satoe Kuwahara
Sapporo Sparkle k.k.

2. Picture and possibility of system realized by cloud computing
Cloud computing now becomes increasingly popular and widespread, the major topic of dis-
cussion about cloud computing becomes from "what is the cloud?" to "how and where to use
the cloud?". What does the cloud change? What does the cloud do and offer us? We look
at the cloud from the viewpoint of enterprise system.
General idea of the cloud computing from the viewpoint of "IT investigation" is actually very attrac-
tive. Users are able to use the resources and services without owing IT resource, and also to ad-
just the range of use. In addition to this, users can realize a system in the short term and make
efficient use of the system.
Above all, the cloud computing is extremely small in cost. It cuts the development cost and time
drastically, and reduces the running cost. If a company builds a new enterprise system without
reference to the conventional system and subcontractor, it will apply the cloud computing without
any question. We actually have a lot of to do for the system if finance permits.
Actually, many companies face the structural problem of IT investment form administrative and
competitive perspective. They spent huge amount of money on building backbone system by im-
plementing ERP etc. and don't have much investment reserve. The cost of operation and mainte-
nance for the conventional system, which is quite expensive, weighs on new investment volume.
If a company want to build a strategic system that makes great contribution to a company, the
budget that a company can afford to spend is limited. Not surprisingly, investment for IT is in the
severe environment.
Success and failure of IT application determines the competitiveness of a company, and the pos-
sibility of IT is increasing, however not many companies can afford to invest in IT. Under this cir-
cumstances, the cloud computing appeared. The approach and speed as well as its cost of de-
velopment, operation and maintenance is totally different than the conventional system. The
cloud will change the present situation, and can become a method to accelerate IT application.
There is a scenario that realizes a system for business support and customer service by using the
cloud computing, and transfers the existing backbone system to a new environment using the
cloud and virtual technology.
What is could computing for? Solve the technological problems.
Companies now can apply cloud computing if they want to. When companies plan to create over-
all picture of future system or build a system from scratch, the companies would rather look at the
possibility of using cloud, and should prepare the approach and system to make the most of the
value of cloud computing. However, we don't have much time to prepare for this. The reality is
much more urgent and immediate.
Most front systems are directly connected to customer contact and business. The objectives of
systematization has "moved to forefront" of business. Closed system is now "facing outward".
The system that is directly linked to business and is facing outward has specific features and diffi-
culty. Operating condition of the system is fluctuated by the behavior of business of customer.
Operation load is focused in one point, and the system is expanded or decrease in size according
to the growth or service of business.
Application of enterprise system not only handles open and static information, but also handles
dynamic information such as a recommendation and campaign for regular customer. The number
of interactive application using various information is increasing.
Infrastructure and security having flexibility to meet the needs of expansion and diversification,
database having the ability to handle huge amount of data, application that connects the outside
of firewall and backbone system... and handling of multiple terminals including mobile phone.
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3. Picture and possibility of system realized by cloud computing
It is quite difficult to solve these technical issues by using existing environment. However, it is
just not realistic to solve them by the individual project. If you put things done, quality of system
may be decreased and development cost may be increased. Considering these issues from the
perspective of development speed and technological evolution, it is uncertain that each company
tries to solve these issues and accomplish objectives. In view of cost and technology, it is very
difficult and has limit that one user company's effort alone.
For this reason, many people expect cloud computing. Needless to say, cloud is internet-based
computing whereby shared applications are provided to computer or another devices. What kind
of technology does the applications on internet need? What possibility does cloud have? It
builds platforms for applications on internet and provides them as a service.
The technology required for system development and operation is obtained easily and by using
cloud computing. So company can concentrate on the application to be developed. This could
be adaptable fighting potential in systematization.
It is important to evaluate the technology of platform appropriately for using cloud computing. Or-
ganize the system features to be realized, and consider what kind of platform is really required.
By doing this, we will
know whether or not
cloud computing is re- On-premise Cloud
quired, and the technolo- a. Accounting system with cloud computing
gy required. However it Accounting system (ERP)
is necessary to evaluate Accounting
AP Journalizing etc.
integration relationship Sales system
(ERP) etc. Data integration
and compatibility with Automatic journalizing
Business plan and
platform strategy of IT performance
Business plan
application if you want Performance evaluation
AP Performance
etc.
use IaaS(for infrastruc-
ture) or SaaS(for applica- b. On-premise sales system
tion). Sales system (ERP)
In-house
AP Inventory
Deciding where to use Order confirmation etc. Product catalogue
(SaaS)
cloud computing is to Confirmed order
AP Product etc.
examine how well it fits reservation
Web order acceptance
Customer
in with their business Service system
bus AP Performance
Inquiry, order entry
model and strategy.
etc.
Mash up
Some companies apply Reference information
External, cost comparison site etc
cloud computing as a
method for system devel- Figure 1
opment. However its Concept for applying cloud computing. The figure shows an example of us-
scope and configuration ing cloud computing in a backbone system. (a: cloud computing applied to
to be used is varied from the accounting system, b: cloud computing applied to the web order system
the motivation of the for customer. sales system is built and operated by the company)
companies(figure 1).
Internet + information + devices
Using the strength of cloud computing
With the exception of new project or some special cases, systems that will apply to cloud compu-
ting have a relationship with backbone system. If company wants to use cloud for their backbone
system, it is necessary to connect their existing system and on-premise application and cloud
computing seamlessly.
Multiple systems will be involved to draw business process from the business perspective. In or-
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4. Picture and possibility of system realized by cloud computing
der to the application meeting the requirements of user, it is essential to make business process
consistent going over the boundary of the physical unit and location of system. This is the goal of
enterprise system today.
If a company create its own system using cloud computing, the boundary between systems be-
comes higher. Company should decide to use cloud computing as the possibility of optical meth-
od or technology for each system. By the way, in order to study how does a company use cloud
computing and, what can cloud compu-
ting accomplish for the company, it is
good idea to examine system from the
a. retailer’s MD system
viewpoint of information.
Special sale plan system Retailing system
Product information and
Information is usually located where ap- MD system
Goods
business meeting system
propriate for site of occurrence and its Buyer
AP selection
AP
MD,
performance
ownership. It is natural that the infor- AP Master, proposal
mation related backbone system is on
company's system. However, supply Search Shared site of
product
chain's tracking information used by mul- information Product
tiple companies should be kept on web. External system
Within same group, sales situation such Supplier system Detailed information
as overseas sales should be accessible Person in charge of supplier of product
from each overseas subsidiary. Picture Spec
Proposed
product etc.
Previously, location of information is de-
b. Process from order acceptance to shipment
cided according to system that process- Web order
acceptance
es and stores data. All data was gath- Process Order confirmed
ered into the system in company, and integration
ERP
then the data was redistributed in order Order
for information sharing. In this approach, acceptance
↓
Shipping order
there are many waste in information dis- Reservation
↓ Shipment confirmed
tribution, and it is difficult to realize real- Shipping
order ERP
time information processing. Information ↓
Shipment acceptance
Tracking
Site for
logistics
is sometime destroyed broken of im- inspection
and sales
company
・ ERP
paired in the process of processing and ・
・
Tracking
distribution.
Tracking
performance
Create large-scale database on web, Person in
charge of Logistics
Customer
and share information with more people company company
in less time. This is a typical feature of Figure 2
cloud computing. However, this is, seamless linkage between the on-premise applications and
"internet + information", the value of in- processes and cloud computing(a: composite application
ternet. There is a case that specific in- using service bus, b: process integration and data linkage).
formation of the company or customer Integration technology allows us to draw business process
may be checked through the internet. from the viewpoint of business without regard to system
So, applying the search technology for location, and to combine systems required.
specific target is beneficial(figure 2).
Platform of cloud computing realizes the effective utilization of "internet + information". If there is
a need to check RFID and understand the distribution status and huge amount of data generated
by RFID, you can store this data into a database on web and share it in real-time. In order to re-
alize this, we need large-sized system, however if we use the technology of cloud computing, we
will be able to realize it quite easily. Because system using cloud doesn't need to exchange data
with user companies, it is simple and failure-resistant.
Cloud computing can be used for various purpose. It can be used in management of traceability,
joint development of the companies, development of global demand chain etc. We are able to
combine these and various devices. We can understand the movement of goods and money in
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5. Picture and possibility of system realized by cloud computing
real-time by utilizing the communication between the mobile terminal and the device in base sta-
tion. We share the information through the devices. "Internet + information + devices", this is the
technology that makes the most of internet, connect to databases.
Realize the specific applications by combining SaaS
Connecting to public cloud service is another possibility to use cloud computing effectively. Con-
nect the information opened to the public and enterprise system. In United State, there is a site
called "Data.gov" that opens the information of government organizations to the public, and more
than 1.4 million information is disclosed and provided to citizens.
Combine the information of government organizations, market trend, currency exchange, the ex-
ternal information of the company and the information of the company. It can be connected to the
social infrastructure such as medical care and education. The enterprise system is now moving
from the closed system to more open. System will work and connect together with many other
systems in the environment of cloud computing. This is truly significant that we can have such
system.
Enterprise system can possibly utilize SaaS. One of the attractiveness of SaaS is that user can
use it in small unit. If you find a application with great potential, you can just use it. SaaS offers
loads of creative services by utilizing the features of internet, and user sometime finds the unex-
pected way of using the application.
User not only can use the application of SaaS alone, but also use the combination of applications.
User can create a original application by combining services that have specific function such as
map, location information etc. Existing system can also provide the original function meeting the
requirements of customer by modifying the screen display created with SaaS (figure 3).
Message etc. Location info E-manual
Patrol
Photo site Map info CRM CRM GPS
Contact Field
center service
Request
GPS
Customer
Quotation etc. Provide
instruction
ID Customer for service
Composite contract
Oh my goodness! application system
Please come quick
Customer
Person in charge
Situation of Situation of person of service
Screen
customer in charge of service
Correspondence
CRM Customer To location
Assignment
information
Conversation Conversation
Quick Work report
CTI
response Inquiry from family
Later inquiry
Operator
Figure 3
Customer service using cloud computing
This is an example of process that a contact center receives event information from customer, and sends field
service engineer to the site immediately. It is possible to build an intuitive structure appropriate for "human
behavior" in a short time and at low cost by combining cloud service, and to grow continuously (click screen
to enlarge).
5 Sapporo Sparkle k.k.

6. Picture and possibility of system realized by cloud computing
The real significance of SaaS is the expandability and growth potential created by the combina-
tion of applications. Value of applications is increased and user's own unique world is built by
combining SaaS applications.
Each service of SaaS is not complicated nor fancy. Therefore, it is important to consider what
function is required for the system you are planning to build. Exercising your imagination is very
important and required in building cloud computing. In addition to this, the integration technology
such as SOA and its platform is also required to develop cloud computing service.
Many SaaS applications have some specialties such as having high arithmetic processing perfor-
mance for designing and demand forecasting. So use SaaS application for the function that re-
quires special knowledge and specific logic as well as basic information.
However, you can also use SaaS application for the function that requires standardization and
commonization such as for the conversion to common code. Making common usage part SaaS
or on-demand, users can maintain their system with the cycle that is different from the way usual-
ly users use.
SaaS can be a method to obtain better knowledge and improve the quality of system develop-
ment. SaaS allows us to gain advanced and specialized knowledge and technology. In other
words, users can use knowledge and wisdom around the world through cloud computing.
Applying cloud computing brings new possibility to enterprise system. However, it is to be noted
that customers have somehow experienced cloud computing through public cloud service.
System toward the outside, standard is decided by the customer perspective. The customers
who have already experienced cloud computing expect to company to provide same quality of
services. Using pictures and moving image is already ubiquitous among enterprise application,
and the quality of system on the net increases drastically. On the other hand, the demands of
customer have increased. We have to deal with this issue soon, and improve system based on
the feedback of customer.
Wide spread of cloud computing is the beginning of new challenge for enterprise system.
6 Sapporo Sparkle k.k.

7. Publisher Sapporo Sparkle k.k.
Date of Issue March 31, 2011
No. 2011033101