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Cloudpreneurs
McKinsey & Company |
Cheap computing +
2
Small in-house server
$31.55/mo
Small Public Cloud Instance
$16.06/mo
McKinsey & Company |
Agility +
3
Minutes60-150+ days
IT
Contact IT
INTAKE
CUSTOMER VERIFIES AND DEPLOYS
Final Review
Project approved, PM
assigned
InfrastructureEngineering
T
M/W/F
2
6
BUILDTICKET
Manager assigns Engineer
Engineer builds VM
Engineer installs & configures OS
Second engineer completes QA
Engineer completes MVM Scan
Backup & Recovery
Network Monitoring
Complete
Verify specs / stack
Deploy
Verify
App Scan
SOLUTIONING
Infrastructure engineers,
Agency business owners and SI
design solution
3Follo
w up
meetings
4
Iteratio
ns
PR
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5
1
ARM contacts Agency CIO
Initial Executive
Review
Solution Review
High Level Review
T
M
Th
Agencies
Iterations
McKinsey & Company |
New experiences =
4
Social
Local
Mobile
Big-data
Rapid development / iteration
Heterogeneous clients
Bursty computations
Cloud
McKinsey & Company | 5
Entrepreneurial groundswell
Salesforce.comSalesforce.com Workday Workday
Intermedia Intermedia AWSAWS
Regional sales team HR manager
Small business owner IT Infrastructure manager
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Explosive growth
6
Contracting
Fast
Rapid
Explosive
27%
23%
25%
25% 3-70x
1-3x
0-1x
0-0.5x
1 > 100 VMs under management, *annualized growth based on 5 months dataSOURCE: Newvem analysis of AWS instances under monitoring
McKinsey & Company |
Including enterprise
7
None
Selectivedeployment
Deployedat scale
2012
10
47
43
2010
58
37
5
Public IaaS adoption
SOURCE: McKinsey Quarterly Survey on information and technology strategy, 2010, 2012; n=532 CIOs
McKinsey & Company |
Not monolithic
8SOURCE: McKinsey Cloud Computing Survey, 2010, 2012
Public : <10%Private: 70%Remainder on traditional architecture
High
LowLow High
Degree of regulation
Complexity and data
interdependence across application
domains
▪ Banking▪ Insurance▪ Healthcare
▪ Manufacturing▪ Distribution▪ Transportation▪ High Tech
Public : 20-25%Private: 60-75%Remainder on traditional architecture
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Security & regulatory barriers
9SOURCE: McKinsey Cloud Computing Survey, 2010, 2012
2010 2012
1
2
3
4
5
6
7
8
1
2
3
4
5
6
7
8
Security
Regulatory exposure
Skills
Business case
Interoperability
Cloud awareness
Changing business processes
Governance
McKinsey & Company |
Security issues can be mitigated
10SOURCE: McKinsey on Business Technology: Protecting information in the cloud
▪ Rigid policy based security approach
▪ Business-focused risk-management approach that engages business leaders
From To
▪ Focus on securing technology (networks, servers)
▪ Focus on securing information and processes
▪ One size fits all policies (i.e., “we’re going 100% cloud” or “we forbid cloud”
▪ Workload specific analysis to match risk with application and data criticality
▪ Specialized IT talent aligned to technology “towers”
▪ Integrated service managers aware of business implications
McKinsey & Company | 11 11
Incumbents under pressure
Source: McKinsey cloud initiative
Traditional Product ModelTraditional Product Model Cloud Purchase ModelCloud Purchase Model
Rev
enue
Up-
front
sel
l
Inst
alla
tion
serv
ices
Ong
oing
Mai
nt.
Rev
enue
Up-
front
sel
l
Tran
sact
Ong
oing
Usa
ge
McKinsey & Company |
Huge value at stake
12
Mini-computers + Transaction systems
PCs + Productivity SW
Client server +ERP
Cloud / SaaS +Mobility + Big Data
‘70-’80 ‘80-’90 ’90-’00 Now
Efficiency & record-keeping
Workgroup decision making
Standardization and efficiency
Innovation through insight and rapid execution of ideas
