cloud webinar final
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Slides from the "Leaders in the Cloud" WebinarTRANSCRIPT
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Leaders in the Cloud Webinar
M.R. Rangaswami – Sand Hill Group
Kamesh Pemmaraju – Sand Hill Group
Otavio Freire – openQ
Neil Fox – Ness Technologies
September 16, 2010
Leaders In The Cloud
Identifying the Business Value of Cloud Computing for Customers and Vendors
About Sand Hill Group
Investment and Advice
• Provider of investments and management advice to emerging enterprise technology leaders
Publishing
• SandHill.com Web site
• Software Pulse electronic newsletter delivered to over 12,500 executives each week
Research
• Producer of strategic reports about key enterprise software industry trends which aim to provide executives with meaningful, actionable insight into the critical issues they face
The business strategy destination for enterprise software executives
3
M.R. Rangaswami, Sand Hill Group, LLC, co-founder
• Held Global VP Marketing positions at Oracle and Baan
• Strategic advisor to fast growth companies
• Profiled on the front page of the Wall Street Journal
• Named to Forbes “Midas 100” list as one of the most influential investors in technology
About the Authors
4
About the Authors
5
Kamesh Pemmaraju. Leading Cloud Research at Sand Hill Group
• Held Global VP Engineering/Director Quality at Pegasystems, Solidworks, Apani Networks
• Brought to market leading technology products in Enterprise BPM, 3D-CAD systems, Enterprise Security, High Transaction Websites, and Embedded Real-time
• Consulted at GE, GM, Siemens, Sun, Visa International, NASD, Motorola on technology, security, and quality issues
Industry-leading Advisory Board
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Tony Redshaw, CIO
Daru Darukhanvala, CTO
JP Rangaswami, Chief Scientist
James Barrese, VP Systems and Architecture
Michael Abbot, SVP Applications Software and Service
Gary S, Washington, Office of OMB
Survey of 511 IT Execs with McKinsey and TechWeb
7
Title/Position Percent of Respondents
Board Member/CEO 14%
CIO/CTO 13%
Other C-level executive 6%
Senior IT executive 18%
Other senior executive 10%
IT manager 7%
Other manager 6%
Staff 6%
Consultant 15%
Other 5%
40 Confidential Interviews with Cloud Leaders
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Sector Companies Executives
Healthcare 1 1
Insurance and Financial Services 3 4
Publishing and Media 3 3
Telecom 1 2
Federal Government 3 6
Technology 4 4
Business and Software Services 3 3
Software Vendors 8 8
Electronics 1 1
Manufacturing 2 2
Energy 1 6
Total 30 40
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Nobody wants to be left behind…
Cloud Reality is Catching the Hype
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2%
3%
18%
33%
52%
53%
0% 10% 20% 30% 40% 50% 60%
Don’t know
No plans
Deploying mission-critical applications
Implementing and deploying non-critical …
Implementing Pilot projects for Experimenting …
Watching and Learning
“Compared to what we were doing before, the cloud is a giant bed of roses.” – CIO, business services company
Some SMB’s have 80% of services in the cloud
Cloud Investments Set to Increase...
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“Today we’ve got 95 percent of applications running internally and 5 percent externally. In five years, that ratio will be 80 percent internal and 20 percent external.” – CIO, Fortune 500 financial company
Today
3% IT Budget spend on Cloud
In Three Years
7% - 30% IT Budget expected spend on cloud
Cloud Feels Like 1997 for the Internet
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Agility: #1 Driver for the Move to the Cloud
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1%
3%
13%
22%
46%
49%
0% 10% 20% 30% 40% 50% 60%
Don’t know
Part of a Green initiative
Disaster recovery and business continuity
Leverage core competencies and free IT resources to focus on innovation
Cost efficiency
Business agility
Hybrid Clouds Poised for Greatest Growth
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“Because the [public] cloud is not going to be the answer for everything going forward, hybrid clouds are where most companies are going to live.” – CIO, electronics company
44%
28%
20%
13%
54%
35% 36%
43%
0%
10%
20%
30%
40%
50%
60%
Private Public Community Hybrid
Currently
in 3 Years
Workloads in the Cloud
Innovation, skunk-work projects, new
development, QA, Load testing
Backup, Archiving, Disaster Recovery, Redundancy.
Collaboration, CRM, HR, Office Productivity, ERP, and Business
Analytics (SaaS)
“Bursting” for peak loads
Hadoop style large data processing
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Workload Classification...
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Strategic Non-strategic
Innovation/NewDevelopment and Test/Pilots
External private clouds (externally
hosted)
Public clouds
Mission-critical Internal private clouds (internally
hosted)
Community clouds or higher-grade SLA
clouds
Considerations for Workloads for the Cloud
• TCO
• Spikiness of workloads,
• Security, SLA, Compliance, and Regulatory requirements
• Longevity of resource requirements
• Resource Utilization Patterns
• Size of data sets involved
• Virtualization and hardware constraints
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Barriers to Adoption...
How will we handle security
and compliance?
How will we handle legal matters?
Is it mature, reliable and stable?
Once we’re in, how do we get out?
(portability, standards)
How do we interoperate with our
existing “stuff”?
How will we manage the cultural change and fear of job loss?
Do I have re-write everything? Architecture
Do we need new skills?
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Implications for Vendors
• Invest and plan for a long-term “true” Cloud strategy and transformation
• Involve IT in purchase decisions but also extend relationships beyond IT
• Position your products for a hybrid cloud world
• Do not underestimate the cultural barriers
• Offer more granular contracts
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“Over the next two years, more than 50 percent of traditional IT spend –software, infrastructure, and services – will be up for grabs and rethinking, and frankly the impact on the channel will be even greater.” – Large software vendor executive
More Information, Assistance, and Offers
• Opinion editorial on SandHill.com
– http://sandhill.com/opinion/editorial.php?id=296
• Weekly blog on cloud trends, vendors, customers, people, and solutions– http://sandhill.com/opinion/daily_blog.php?id=71
• Purchase Digital Enterprise License of research: Unlimited Internal Use:
– http://sandhill.com/research/reports.php?id=3
• Additional go-to-market and lead generation:
– Customer webinars and events
– Co-branded whitepapers, podcasts, and marketing collateral
– Sales enablement and briefing sessions20
Sample Research Customers and Consulting Clients
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www.openq.com Confidential and Proprietary openQ, Inc.23
Proposed Customer and Speaker
Solution for Medtronic Vascular
Latin America
September 20, 2010
Cloud Computing Webinar
September 20, 2010
www.openq.com Confidential and Proprietary openQ, Inc.24
The openQ mission
openQ is the expert
solution provider for
compliance, a partner
who can lift your
increasing compliance
burden and get you
back to work.
www.openq.com Confidential and Proprietary openQ, Inc.25
At a Glance:
Industry leader, serving biotech, pharma (8 of 10) and device from
early stage, to venture backing, to maturity
Subscription software and research capabilities in the cloud
Award-winning, offshore research and solution platform recognized
by 4 top analyst firms
Global development and research in US, India, Brazil (85 R&D)
openQ provides critical solutions for process efficiency and compliance to
leading medical device and pharmaceutical companies
www.openq.com Confidential and Proprietary openQ, Inc.26
Critical considerations from transitioning from On-Prem to
Cloud – affect the business as a whole, not just technology
Business Model Changes
Changes your revenue-
recognition significantly
Slower GAAP revenue growth
Increases your EV multiple
No need to kill an elephant each
quarter
Lowers service costs (a lot) –
support internal customers vs.
when you manage yourself
Capitalization vs. Expense
considerations
Technology Operations Changes
Support one environment as
opposed to many
All infrastructure is on you
SLA based on your capabilities
All support now is on you
Only focus on highly generic
features and configurations
Branch/Trunk organization
Build/Test/Production in the cloud
Cloud Architecture/Deploy on the
Cloud
Security practice
www.openq.com Confidential and Proprietary openQ, Inc.27
Integrating a Cloud strategy with your product offerings
alongside your development partners
Vision
New business model
Readiness
Opportunities
Strategy
Operating model
Target Market
Customer Needs
Implementation
Development Partner
Involvement
New end-to-end processes
Implementation Plan
www.openq.com Confidential and Proprietary openQ, Inc.28
Articulating the value of Cloud computing in heavily
regulated, compliance-driven industries
Value Concerns
Address all concerns up
front:
1) Security can be
completely mitigated
by following best
practices
2) SLA to minimize
impact of legal issues
3) Point to other
companies in your
space and early
success
4) Describe upfront your
architecture
www.openq.com Confidential and Proprietary openQ, Inc.29
The Challenge:
• Several systems multi-country
• Expensive internal procurement
• Compliance a concern
• Aggressive roll-out milestones
Case Study #1:
Enterprise Consultant Management System Deployment
The Situation:
Organization:
• Leading global medical device company
• Multi-brand, cross-functional matrix
Goals:
• Centralize access to all consultant data via web-based solution
• Standardize process for engagement globally
• Streamline quarterly reporting and planning processes
• Introduce standard evaluation process for consultant performance
www.openq.com Confidential and Proprietary openQ, Inc.30
Case Study Continued:
Enterprise Consultant Management System Deployment
The Cloud Solution
• After internal review and agreeing
on SLA move to global cloud
solution
• Fast rollout
• Lower overall cost
• Data privacy best practice
adoption
• Faster upgrade cycle
• Project start to go-live in under 4 months
• Multiple changes to feature and reporting
requirements accommodated
• Adoption across all brands and
therapeutic areas
www.openq.com Confidential and Proprietary openQ, Inc.31
Contact Details
Otavio Freire
410 East Main Street
Charlottesville, VA 22902 USA
Phone: +1 434-207-4267
Email: [email protected]
Web: www.openq.com
© 2009 Ness Technologies – Proprietary and Confidential
September 2010
Achieving Technology Leadership in
the Cloud
www.ness.com
Offshore Product Development Established 2001
60+ Client Labs in 5 locations throughout India and Eastern Europe
► Multi-shore development model
2,500 talented resources delivering 1,000 software releases per year
Best Practices from every engagement are institutionalized through the Ness Tech Council and applied to new clients through Strategic Consulting
Ness developed SMART Platform implements best practices workflow and metrics through unique value-added IP
Ness Software Product Labs
Engineering Effectiveness
Client
Labs
Ness Tech
Council
Ness Strategic
Consulting
Client Goals
33
www.ness.com
It’s Very Cloudy Out There
34
Private Cloud
Performance
Quality of Service
SaaS
Platform Cloud
ROI
Infrastructure
Security
Hybrid Cloud
Cloud Broker
QA Cloud Cloud Services
IntegrationSLAsArchitecture
Global Delivery
Disaster Management
Regulatory Compliance
Internationalization
Data Clouds
Governance
Monitoring
Virtualization
Open Source
Data Management
www.ness.com
Ness Cloud Assessment Clears the Air
Action Plan and Success Criteria
Cloud Strategy with Projected ROI
Current Arch. / Technology
Market Climate
Business Objectives
35
www.ness.com
What kind of technology does your product use? Java, C++, J2EE, .Net?
► Application Server, DB, 3rd Party Components, Open Source, etc.
► Tell us about the commercial products that you use to build your product (what
license fees do you pay??)
What kind of architecture does your product have – 2 tier, n tier?
► SOA
► Multi-tenant support
► International support (Unicode, multi-currency)
Security / regulatory requirements?
► Geographic distribution requirements?
Performance / SLA requirements?
Integration needs – cloud to cloud, cloud to client, hybrid cloud?
Implementation requirements?
Competitive environment and customer expectations
Technology acquisition strategy
Some Critical Cloud Considerations
Where to Begin
36
www.ness.com
Ness Cloud Assessment Summary
Cloud computing offers significant tangible benefits*
► ROI – Clients report 50% - 200% reduced costs
► Speed – Deliver applications in weeks, not months
► Innovation – Quickly design, develop and deploy many applications.
• Low investment makes it easy to walk away from failing efforts
Significant considerations
► What do you need / want from the cloud?
► Business risk in moving / not moving to the Cloud
► Current technology position to achieve objectives
► Resources available to achieve objectives
Next Steps
► Leverage Ness Cloud Readiness Assessment
► Meet with Ness Strategic Consulting
• Determine scope
• Identify stakeholders
• Conduct Assessment and create plan of action
*Courtesy of Sandhill Inc 201037
