An Introduction to Cloud Computing - Part 2 - What Does a Cloud Environment Consist of?

Mark Morley, Industry Marketing Director

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Three Layers of Cloud Computing

Business Applications

ApplicationInfrastructure

Compute & Storage

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Infrastructure-as-a-Service

• Delivers computer infrastructure,

typically platform virtualisation as a

service. Its an evolution of virtual

private server offerings

– Includes servers, memory and storage that

allow a customer to scale up or down as

required

– Infrastructure can be used by customers to

run their own software with only the amount

of resource that is needed at a given

moment in time

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Platform-as-a-Service

• Delivers a computing platform and/or

solution stack as a service, often

consuming cloud infrastructure and

sustaining cloud applications.

– Allows users to use the clouds to develop

new applications without the need to have

the software or infrastructure purchased in-

house

– Essentially provides anything to support

how a company builds and delivers web

applications and services in the cloud

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PaaS: A New Continent Emerging

By 2015, most enterprises will have part of their run-the-business software functionally executing in the cloud, using PaaS

By 2015, cloud-based solutions will be growing at a faster rate than on-premises solutions

By 2015, most enterprises using PaaS services or technologies will have a hybrid environment in which internal and external services are combined

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From Both Large and Small Companies

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Software-as-a-Service

• Delivers software over internet

without the need to install

applications on the customer’s own

computers

– SaaS applications are run from one

centralised location, which means that the

software can be accessed from any location

over the internet

– Centralised management of applications

helps to simplify maintenance

– Applications consumed on a pay-as-you-go

basis

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Benefits of Cloud Infrastructures

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Benefits of Cloud Based B2B Integration

Global Accessibility

Scalability

Consistent User Experience

Low Cost

Easy to Maintain

Rapid Deployment

Flexibility

Central Authentication

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Traditional IT versus Cloud Computing

Traditional IT Cloud Computing

Speed to market

Enterprise applications take months or years to design, code, test and deploy

Cloud provider is responsible for on-going development and clients simply use the most up to date application available

Speed to Value

Applications may need to be de-bugged and continually upgraded

Cloud providers conduct all development and testing leaving the client to simply benefit from its usage

Speed to ROI

Even with significant capital investment, many companies never get to realise the expected ROI

Subscription based model allows a client to pay for the service they actually use and is a highly predictable operational expense

Managing TCO

Cost of on-going support and maintenance can be over five times the initial license fee

All on-going support and maintenance costs are rolled into the subscription fee

Managing Innovation

Technology deployment is always at least one step behind the business need, eg a system has to be developed based on the business need

Cloud applications allow companies to quickly scale up solutions to business issues using ‘plug and play’ modules which can be utilised as and when required

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Financial Benefits of Cloud Computing

Factor On-premise Cloud-Computing

Expenditure Type Capital expenditure Operating expense

Cash Flow Servers and software are purchased up front

Payments are made as the service is provided

Financial RiskEntire financial risk is taken upfront, with uncertain return

Financial risk is taken monthly and is matched to return

Income Statement

Maintenance and depreciated capital expense

Maintenance expense only

Balance SheetSoftware and hardware are carried as a long-term capital asset

Nothing appears on the balance sheet

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Pre-CloudState

B2B in the Cloud

B2B

KeepCurrent

Multi-Cloud Strategy

(Includes B2B in the Cloud)

Strategic

Cloud Shared R&D

75%

10%

15%

70%

6%

24%

+4%+20%

45%

6%

49%

Off-Budget Benefits

Strategic Business Benefit

% of Enterprise IT Budget Allocation(Percentages estimated for illustration purposes only)

Innovations funded by Cloud Partners

Innovations Self-Funded by Enterprise IT

Expanding Business Impact with

Innovations Funded by Cloud Partners

The Cloud Multiplier Effect How do you do more with less?

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Not Forgetting the Green Benefits of Cloud Environments...

Lower power consumption requirements

Less computer/network equipment packaging to dispose of

Minimises travel requirements for IT implementation teams

Increased availability of information on lower power devices

Less paper flowing across the supply chain

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Thank You

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