Why Business is Better in the Cloud
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When it comes to the cloud, Gartner may have said it best: “By 2020, a corporate ‘no-cloud’ policy will be as rare as a corporate ‘no-internet’ policy is today.” If your organization is still skeptical of the cloud, now is the time to take a closer look. Faster implementation timelines and reduced maintenance costs are just two reasons why the cloud is becoming the standard across all industries. In our webinar, we dispelled common concerns and explored the benefits of operating in the cloud. We also provided real-world examples of companies that have taken the leap and discovered just how much better business works in the cloud.
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Why Business is Better in the Cloud
- 1. Why Business is Better in the Cloud October 2016
- 2. 2 About Perficient Perficient is the leading digital transformation consulting firm serving Global 2000 and enterprise customers throughout North America. With unparalleled information technology, management consulting, and creative capabilities, Perficient and its Perficient Digital agency deliver vision, execution, and value with outstanding digital experience, business optimization, and industry solutions.
- 3. 3 Perficient Profile Founded in 1997 Public, NASDAQ: PRFT 2015 revenue $473.6 million Major market locations: Allentown, Atlanta, Ann Arbor, Boston, Charlotte, Chattanooga, Chicago, Cincinnati, Columbus, Dallas, Denver, Detroit, Fairfax, Houston, Indianapolis, Lafayette, Milwaukee, Minneapolis, New York City, Northern California, Oxford (UK), Southern California, St. Louis, Toronto Global delivery centers in China and India 3,000+ colleagues Dedicated solution practices ~95% repeat business rate Alliance partnerships with major technology vendors Multiple vendor/industry technology and growth awards
- 4. Victor Wolters Director, Enterprise Cloud Strategist Joel Thimsen Director, Cloud and DevOps
- 5. 5 Velocity of Business Agility & Scalability Cost savings Faster Innovation Cloud ROI Q&A Agenda
- 6. 6 “By 2020, a corporate ‘no-cloud’ policy will be as rare as a corporate ‘no-internet’ policy is today.” - Gartner
- 7. 7 • Think short-term • Multi-speed business • Governance appropriate response to new opportunities Velocity of Business
- 8. 8 SHORT-TERM THINKING • Combined with longer-term strategy • Ability to fail fast Cloud Business Velocity MULTI-SPEED • Some fast • Some slow • Some medium GOVERNANCE • Appropriate response to new opportunities • Built-in organizational support
- 9. 9 Big Picture for Cost Savings
- 10. 10 HARD SAVINGS • Reduced spending on compute, storage, networking, security • Avoidance of hardware and software purchases (CapEx) • Reductions in operational costs, backup, and DR/DC • Reduction in operations-oriented personnel Cost Savings SOFT SAVINGS • Re-use of services and applications that allow you to define and redefine solutions using the same cloud services • Increase developer productivity • Improved employee morale based on the use of cloud-based resources • Ability to change business processes quickly around new and emerging opportunities • Increase global reach
- 11. 11 Cloud Enables Cost-effective Operations
- 12. 12 PROBLEMS WITH CONVENTIONAL DR APPROACH • High capital costs to build DR sites • High cost of storage, backups, tape, tools • Difficult to verify DR approach • Typically limited to critical systems • Challenging to setup and manage, especially remote regions • Low ROI Disaster Recovery is Better in the Cloud BENEFITS OF CLOUD DR APPROACH • Lower up-front investment and overall costs • On-demand capacity and scale • Recovery automation • Eliminate physical storage (tapes, disks)
- 13. 13 Disaster Recovery Architecture in the Cloud Web Server App Server DB Server Web Server App Server DB ServerData Replication DNS Minimal Instance Not Running Users / Systems Cloud PlatformCorporate Data Center
- 14. 14 Disaster Recovery Architecture in the Cloud Web Server App Server DB Server Web Server App Server DB ServerData Replication DNS Expanded Instance Running Users / Systems Cloud PlatformCorporate Data Center X
- 15. 15 Disaster Recovery Economics in the Cloud 2nd Site Cost Cloud Cost Demand 2 3 1 Test Test Failover Failback InfrastructureCost Time
- 16. 16 Agility & Scalability Operational agility is a top driver for global cloud buyers, according to a Gartner survey.* * http://www.gartner.com/newsroom/id/2923217
- 17. 17 Cloud IT Agility Business Agility Corporate Performance Cloud Enables Agility
- 18. 18 M&A is Better in the Cloud * Thomson Reuters. “Mergers & Acquisitions Review. Financial Advisors. First Half 2016.” ** Deloitte M&A Institute. “M&A Trends Report 2015: Our annual comprehensive look at the M&A market.” Global M&As hit USD $7 trillion in 2015, up 25% from 2014* Shrink time- to-close Accelerate IT- dependent synergies Reduce contractual requirement Support multiple buyers Shift for CapEx to OpEx expense Reduce team size required to support M&A Shift focus away from potential IT issues Speed integration activities
- 19. 19 • Standards, secure, connectivity, speed “built-in” • Application portfolio management • Automated CI/CD • Continuous DevOps • Machine learning • Big Data analytics Faster Innovation
- 20. 20 • Rapid prototyping • Minimum viable products • A-B testing • Quick market validation • Idea discovery to market testing in weeks Innovation Speed
- 21. 21 Cloud ROI is More than Cost Savings Cloud ROI = 𝑉𝑎𝑙𝑢𝑒 𝑓𝑟𝑜𝑚 𝐶𝑙𝑜𝑢𝑑 𝐶𝑜𝑠𝑡 𝑜𝑓 𝐶𝑙𝑜𝑢𝑑 BUSINESS VALUE
- 22. 22 • Increase on-boarding of new customers through multi-tenant SaaS • On-demand service provisioning: reduced wait time from weeks to minutes Increase Velocity of App Development
- 23. 23 Self-service & Automation: Standard Infrastructure Lifecycle Source: www.ibm.com
- 24. 24 Self-service & Automation Source: www.ibm.com Standard Infrastructure Lifecycle Replaced by the cloud
- 25. 25 Shift Resource Focus Up the Value Chain Custom solution which requires focus on low- value activities, increasing cost. Bespoke platform Cloud Platform No automation Highly automated Custom solution with some focus on high-value activities but at an increasing cost. Cloud platform allowing focus on high-value activities improving overall ROI. Managed solution eliminates some – but not all – low-value activities, limited improvement in ROI
- 26. 26 Shift Resource Focus Up the Value Chain Bespoke platform Cloud platform No automation Highly automated Manual environment build Automated provisioning Operating system management Establish new business channel Create new business capability
- 27. 27 1. Strong perimeters and surveillance 2. Controlled access 3. Cyber security expertise 4. Thorough and frequent auditing 5. Inherent complexity of cloud Security is Better in the Cloud
- 28. Questions Type your question into the chat box
- 29. 29 Perficient.com/insights/guides Perficient.com/insights/webinars Follow Us Online • Perficient.com/SocialMedia • Facebook.com/Perficient • Twitter.com/Perficient • Blogs.perficient.com
- 30. Thank You
Hinweis der Redaktion
- Think short term within the context of the overall corporate strategy as outlined by the organizational leadership Normally you will have a lot of short term projects that need to be executed at a rapid pace but be sure they always line up with the longer term strategy. Cloud allows you to fulfill this goal with technologies like Automated CI/CD and containers. Use of standardized container platforms for rapid development project startup and then built in standards will allow an organization to quickly determine if a new project will be successful or determine a need to change course. Multi-speed provides the ability for the organization to moderate the transition to a higher velocity while not destroying what is currently paying the bills. Some things will need to mover fast – Cloud is built to support rapid deployment at a low cost with expense dollars versus capital dollars and vitually no long term overhead. Some things will need to move slower or medium – Cloud helps with this process based on the ability to move incrementally as needed.
- Figure 1 shows the challenges of the traditional model. The blue line depicts hardware purchases which are completed periodically to increase capacity ahead of projected utilization. The red arrow indicates the cost an enterprise bears in excess capacity while the red shaded area represents the danger of underestimating utilization.
- (1) Is the static 2nd site cost in the typical model (2) Is the infrastructure cost savings leveraging a cloud platform (3) Is an actual failover event but showing ability to scale and eliminates false pressure to fail back
- This is one of the key aspects / benefits of cloud computing: agility & scalability. Cloud computing can have a big impact on how a business operates and the thinking of the business. The opportunities the business will explore, market adjustments, countering competition, ability to innovate can all positively impacted by the decision to move to the cloud. Gartner survey Other top drivers “modernization, “innovation”, and ”cost”. But cost was a cited by more junior level resources IT Staff vs focus of senior IT execs, including the CIOs, was to leverage the cloud to establish a modern, innovative IT environment, with operational agility and business advantages as key outcomes.
- So what are we really talking about when we say operational or business agility? Business agility is the ability of a business to adapt rapidly and cost-efficiently in response to changes in the business environment. More often than not, the questions I get from IT organizations related to the cloud are about how can cloud reduces by capital expenditures and operating budget? Yet like the gartner survey showed, that’s not necessarily the perspective of senior leaders. The IT equation is one of cost-agility and we need to consider both sides of this equation to be able to effectively communicate the overall value IT can bring to the business. Business agility provides: ability to enter new markets, reduce complexity, increase employee productivity, and, yes, reduce costs. There’s a direct link between cloud and business agility. Verizon-HBR survey finds, for example, those enterprises more advanced in their cloud deployments are more likely than their less-advanced counterparts to have entered a new market in the past three years (49 percent) or to have been part of a merger or acquisition (49 percent). Cloud helps bring the IT transformation closer to the transformations occurring in our businesses. http://www.forbes.com/sites/joemckendrick/2014/07/14/cloud-computing-increases-business-agility-whatever-that-means/#5626a7284f8a https://www.vmware.com/files/pdf/accelerate/VMware_Business_Agility_and_the_True_Economics_of_Cloud_Computing_White_Paper.pdf https://hbr.org/resources/pdfs/tools/Verizon_Report_June2014.pdf
- mergers, acquisitions and divestitures to the cloud Alleviate M&A complexities with a flexible IT infrastructure M&As are now more commonplace and an essential aspect of corporate strategy. Global M&As hit USD $7 trillionin 2015, up 25% from 2014* These highly impactful events are notorious for decision uncertainty, numerous risks and aggressive schedules. Delays and complexities often trigger considerable integration roadblocks and even loss of executive support. Establishing a flexible architecture can pay significant dividends in your future merger, acquisition, or divestiture activity. For example, during an acquisition, new business processes and data often need to be integrated into application environment. If the existing environment isn’t flexible this could directly impact the success of the transaction and reduce any synergies that might have occurred from the new combined business. So how specifically can cloud help support M&A? Shink time to close http://www.businesscloudnews.com/2016/05/09/cios-look-to-the-cloud-for-seamless-ma/ https://www.brightstarr.com/sharepoint-technology-and-application-insights/blog/how-your-new-intranet-will-make-your-merger-acquisition-or-de-merger-that-much-easier http://deloitte.wsj.com/cio/2014/06/18/boosting-ma-value-with-the-cloud/ http://www2.deloitte.com/us/en/pages/operations/articles/mergers-and-acquisitions-loves-the-cloud.html
- 1. All the basics will need to be “Built-in” not rethinking them every time you roll out something new. Need to allow development teams to move quickly but with standardized DevOps processes that have built-in support for security, development standards, and platform configurations. 2. Application Portfolio management needs
- So the best way to deal with the compounding of uncertainty is to go fast, to learn fast, to learn what works and what doesn’t work through techniques such as agile sprints, rapid prototyping, minimum viable products, a-b testing, and related techniques
- As we have hopefully shown today if you are just adding up the costs of infrastructure in the cloud vs on-prem you will miss the value of cloud It’s not only minimzing costs through leveraging cloud but it’s about maximizing the value of cloud through ways we’ve discuss today and more! Increase velocity of application delivery Cost-effective operations Increase Investment Flexibility Expand markets Reduce risk – enhanced security, shared risk Cloud ROI (Joel) a. More wallet share b. New revenue streams c. Reduced cost but increased responsiveness d. Enhanced security - reduced insurance premiums
- Healthcare customer that was building custom environments for every client with upwards of 125 servers per client. Large backlog of customers but onboarding / technical challenges were significant. Shifting to a SaaS model and experiencing dramatic onboarding time reduction. Another customer, On-demand service provisioning: reduced wait time down from weeks to minutes. Developers were able to click a button to add a database to their development environment and by the time they had switched screens it was available for them to start developing. Compare this to the 4-6 week lag time they previously experienced. Talk about radical changes. Fully integrated app templates app layer to database. App store of services. Might be difficult to quantify but critical aspect of considering a holistic cloud ROI!- Look for metrics like
- Metric – staff per vm should drastically reduce. Especially when you couple cloud plus automation.
- Metric – staff per vm should drastically reduce. Especially when you couple cloud plus automation.
- 1. Strong Perimeters and Surveillance Legacy system security can be unreliable and difficult to implement. They include the terminal, workstation and browser. Legacy systems originated before computer crimes became prevalent. Therefore, preventing access to on-site computers often was enough to block hackers. But businesses still rely on these systems today, often using them in tandem with cloud infrastructure and backup and recovery services. This makes legacy systems increasingly vulnerable to hackers. 2. Controlled Access When data is stored off-site in the Cloud, employees, vendors and visitors are physically separated from a company’s mission-critical data. 3. Cyber Security Expertise CSPs specialize in keeping data safe. Cloud infrastructure is monitored at all times in order to head off potential security threats. 4. Thorough and Frequent Auditing CSPs undergo yearly audits to protect against flaws in their security systems. However, on-premise, legacy systems do not have this requirement. 5. Inherent Complexity of Cloud The very complexity of cloud operations also provides a layer of security. Even if cyber criminals know the specific cloud provider an institution uses, they’d still have to find the right data center and gain access. http://www.tripwire.com/state-of-security/security-data-protection/4-reasons-why-the-cloud-is-more-secure-than-legacy-systems/ http://www.forbes.com/sites/tomgroenfeldt/2015/12/01/security-is-better-with-cloud-providers/#3dbbba152f48