How cloud is transforming business and IT? by Mr. Hasan Ganny Hanif

1. IT Architect Regional Conference
"Business Agility with Enterprise Architecture “
24th August 2011, Pullman Hotel Bangkok, Thailand
ITARC Thailand 2011
Session Topic: How Cloud is transforming Business & IT?
Presented By: Mr. Hasan Ganny Hanif
President of IASA Malaysia
CTO, Dagang Net Technologies Sdn Bhd
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2. Typical Business Scenario
You're in a meeting. You and your team
identify a great new business opportunity.
If you can launch in 60 days, a rich new
market segment will be open for your product
or service. The action plan is developed.
Everything's a go!
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3. The reality
• And then you come down to earth. You need new
computer equipment, which takes weeks, or months,
to install. You also need new software, which adds
more weeks or months.
• There's no way to meet the timeframe required by
the market opening. You are stymied by your
organization's lack of IT agility.
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4. Or
• You could have the experience a company had when
it needed to convert a large number of digital files to
a format suitable to serve up over the web. After the
inevitable "it will take a lot of time and money to do
this project," one of their engineers went to the
cloud Web Service provider, created 20 compute
instances (essentially, virtual servers), uploaded the
files, and converted them all over the course of one
weekend.
• Total cost? $$$
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5. Cloud transforming IT
• This example provides a sense of why cloud
computing is transforming the face of IT, with the
potential to deliver real business value.
• The rapid availability of computational resources in a
cloud computing environment enables business
agility — the dexterity for businesses to quickly
respond to changing business conditions with IT-
enabled offerings.
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6. Set Your Organization's IT Free - How Cloud is
Transforming Business
Business vs IT (Love Hate relationship)
BUSINESS IT
Loves Cloud Hates Cloud?
Outsource Keep IT Job?
Speed to market, Innovation ???
Less cost of ownership
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7. The “New” Reality
Balance & shift Get more out of Capture & create
cost your people
out of new opportunity
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8. Business’ Cloud vision
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9. IT’s Cloud vision?
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10. How Business looks at Cloud
Organization Operations Infrastructure
Improve Improve Reduce
Productivity & Efficiency Cost
Innovation
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11. Leverage the Cloud to Deliver Business Impact
Focus Business Success
People High User Adoption
Simplified Programming Model
Automate Compose with Clicks
Process Fast Delivery
Instant Start and Scale
Reusable Components
Leverage Cloud Ecosystem
the Cloud Continuous upgrades
Disaster recovery
On latest release
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12. 8 ways that cloud computing will change business
1. The creation of a new generation of products and services.
2. A new lightweight form of real-time partnerships and
outsourcing with IT suppliers
3. A new awareness and leverage of the greater Internet and
Web 2.0 in particular
4. A reconciliation of traditional SOA with the cloud and other
emerging IT models.
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13. 8 ways that cloud computing will change business
5. The rise of new industry leaders and IT vendors
6. More self-service IT from the business-side.
7. More tolerance for innovation and experimentation from
businesses.
8. The slow-moving, dinosaur firms will have trouble keeping
up more nimble adopters and fast-followers.
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14. 3 – Cloud Business: Your 4 – Cloud Computing IS
Office Can Operate from Disaster Management
Anywhere in the World
2 – Cloud Computing
Security
5 – How Your Business Can
Save Money – Free
software, no
licenses, stress free
1 – “Internet-based
Computing”
6 - Cloud Computing
7 - Cloud Computing Risks for Small Businesses
and Benefits
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15. How IT looks at Cloud
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16. Security & Data Confidentiality Concerns
• Of those who outsource, nearly three-quarters (72.1%) cited
concerns about IT security, and more than half (58.7%) indicated
that concerns about regulatory compliance will limit their adoption
of these emerging service offerings
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17. 17
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18. Cloud
Computing
* From http://en.wikipedia.org/wiki/Hype_cycle
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19. 19
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20. “Cloud computing is simply a buzzword
used to repackage grid computing
and utility computing, both of which
have existed for decades.”
whatis.com
Definition of Cloud Computing
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21. From http://geekandpoke.typepad.com
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22. Cloud Computing – Primary Characteristics
• on-demand self service, which allows business units to get
the computing resources they need without having to go
through IT for equipment.
• ubiquitous network access, which enables applications to be
built in ways that align with how businesses operate today -
mobile, multi-device, etc.
• resource pooling, which allows for pooling of computing
resources to serve multiple consumers
• rapid elasticity, which allows for quick scalability or
downsizing of resources depending on demand.
• measured service, which means that business units only pay
for the computational resources they use. Translation: IT
costs match business success
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23. IT is under siege
• The cloud, in all its incarnations, is reshaping the
way IT thinks about delivering services to the
business.
• Conversely, the cloud is also providing new avenues
for the business to procure IT services.
• For the first time, business users who consume IT
services have a choice: if IT cannot provide them
with the services they require in a timely and cost-
effective manner, they'll simply go elsewhere.
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24. IT Pros – Are your ready for the Challenge?
• While cloud computing is emerging as a promising IT
service delivery vehicle, to cloud or not to cloud?
That is not the question.
• For IT professionals, it is crucial to recognize the
opportunities and play a key role in the
transformation from existing infrastructure-focused
IT into a service-oriented, user-centric, and IT as a
service environment.
• Are you ready for the challenge to lead and
transform your IT organization?
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25. Transformational strategies for IT
• How CIOs are applying transformational strategies in
their organizations to keep up with the change.
• Three "new rules" gleaned from their experience in
aligning IT with business priorities:
1. CIOs Need to Manage IT Like a Supply Chain
2. Cost Accounting is the New Must Have IT Skill
3. IT Transformation Starts with Culture
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26. Rule #1: CIOs Need to Manage IT Like a Supply Chain
Less More
Beginning to think about IT less as a More as a portfolio of IT services that
collection of technology products should be managed like a traditional
supply chain.
However, getting a handle on what
these services actually cost to deliver
– and how they're being utilized has
until now been more dark art than
science
It's critical to understand the fully
burdened costs of all the raw
materials (i.e., the cost of goods sold
or "COGS") that comprise the finished
product.
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27. Rule #2: Cost Accounting is the New Must Have IT
Skill
Overlooked Essential
An overlooked and essential skill for Without this foundational skill, they
the new generation of IT personnel is believe (and rightfully so) that IT
basic cost accounting. managers are unable to provide
meaningful cost analysis back to the
business.
Example : while calculating unit cost
information at the server level might
be valuable from an operational
perspective, understanding and
communicating the variance in cost is
more relevant to the business since
this type of data point speaks to the
budget planning cycle.
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28. Rule #3: IT Transformation Starts with Culture
Cultural Sensitivity
IT transformation projects on their Make a concerted effort to
agenda must recognize that cultural implement strategies that address the
changes are just as important as cultural aspect of services
technology decisions transformation
Example : ensure cross-functional
support through sharing leadership
strategies and best practices as an
instrumental in terms of getting
everyone to buy into the notion of
transformation.
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29. Bottom Line
• Business is demanding greater accountability and
alignment from IT.
• The cloud is but one external factor driving CIOs to
"self reflect" by understanding their own cost
structures at a deeper level and delivering services at
• CIOs who are prepared to answer questions from the
business with cold, hard facts will be in a significantly
better position to transform their IT organization and
contribute to the bottom line market rates.
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30. The next chapter for cloud computing
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31. Has Cloud Computing changed the Traditional Role
of IT?
• “Cloud Computing has simplified IT operations to an extent
that many of the roles in IT have fundamentally been
obviated.”
• “Definitely, the IT department should act as the service
broker, the entity that provides services to the business and
sources those services from a variety of sources.”
• “Certainly, Software-as-a-Service (SaaS) will change role of IT
in most organizations but I think that SaaS will have a
different effect on IT in different size organizations. SaaS is a
great equalizer.”
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32. Has Cloud Computing Changed the Traditional Role
of IT?
• “Of course cloud computing has changed (and will continue to
change) the role of IT, but not necessarily more so than
previous disruptive shifts in IT have done in the past. There
are two major factors at play - the technology aspect and the
organizational aspect.”
• “IT folks are spending less time and effort building and
supporting commodity technology services, and are now
applying their energy and system-driven thinking directly to
the design and management of innovative cloud-based
systems that enable business processes that were not even
possible five years ago. “
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33. Has Cloud Computing Changed the Traditional Role
of IT?
• “I've been working in a large company that has outsourced
network, infrastructure, applications, infrastructure, helpdesk
and their management all together. What's left: business
planning.”
• “You can now kick off a new business leveraging Cloud based
Apps with very little IT knowledge (and almost zero CAPEX).
As you grow and need more integration and eventually some
custom development, you will need first an IT Architect
rather than a Sys Admin which can map business workflows
with App integration.
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34. Has Cloud Computing Changed the Traditional Role
of IT?
• “I think the most profound effect will be on smaller
companies, and that instead of the lone IT tech
working in a windowless office stuffed with
computer parts, that the more successful SMBs will
incorporate IT into every level of the business. Which
means, those looking for a future in IT might want to
step away from the computer and brush up on their
people skills.”
• “IT's role is shifting from technical expert to strategic
adviser.”
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35. Conclusions
Cloud computing is transformational
– Change business models, cost models, speed to provision, and
datacenters
• Cloud helps IT organizations focus on what’s important
– Efficient IT service delivery, reduce costs and complexity, outsource
non-essential IT service
• Cloud computing has many issues
– Lack of clarity and hype slows adoption, and increases skepticism
– Trust, security, and unclear ROI are chief issues
• Cloud computing is coming, make no mistake
– Part of the IT externalization movement
– Now is the time to prepare, comprehension is key to unlocking
business value
• IT's role is shifting from technical expert to strategic adviser.
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36. Be part
of the
Future
Be an
Architect Innovate
Value
Add
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37. Thank You
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