Cloud computing paradigm shift and considerations

Risk & Compliance

ADVISORY

Cloud Computing Paradigm shift and considerations

September 2010

drs. Mike Chung RE

© 2010 KPMG ELLP, the member firm of KPMG International, a Swiss cooperative. All rights reserved. Printed in the Netherlands

Contents

• Paradigm shift: from on-premise technology to on-demand services

• Considerations: how to orchestrate

• Steps forward: how to prepare for the next phase


Paradigm shift: current challenges for corporations

• Cost savings

– Economical low tide

– Ever increasing cost of IT

• More agility

– Fluctuating demand

– Mobile workforce

• Innovation

– Faster time-to-market

– On-demand requirements


Paradigm shift: IT as an hindrance

• Increasing expenditures

– Higher cost for design, development, implementation and maintenance

– Higher energy cost

• Rigid

– Static supply of IT resources

– Based on traditional client-server principle

• Too complex to change

– Spaghetti of interfaces

– Various IT models


Paradigm shift: cloud computing as the model of choice

• Transparent cost structures

– Pay for what you use

– Marginal CapEx and operational cost

• Flexible

– Easy to upscale and to downsize

– Accessible from multiple points on the internet

• On-demand

– Instantly available

– IT as commodity


Considerations: orchestration

• From technological complexity to governance challenges

– Hybrid environment of internal IT, outsourced parts and cloud computing

– Complex ecosystem of the cloud (integrators, aggregators, vendors and third parties)

• Less control

– IT assets outside the internal perimeter

– Vendor lock-in

• Ever changing landscape

– Hard-to-predict pace of changes and dominant standards

– New services and niche players


Considerations: assurance on security as an example

• External data storage

– Logging and monitoring

– Backup and recovery

• Multi-tenancy/resource pooling

– Data - and resource segregation

– Identity & Access Management

• Conflicting controls and legislations

– Vendor’s security controls versus internal requirements

– Global delivery of services versus national/local legislations


Considerations: assurance on security in practice

• Standards for ‘traditional IT’

– Partly obsolete and partly irrelevant

– Static standards versus dynamic reality

• Free format auditing statements

– Many variations on approach and controls

– Wide intervals

• Competent auditors?

– Existing standards and controls as starting points

– Emphasis on IT management processes


Steps forward: devise strategy

• Which parts can be moved to the cloud?

– Define available cloud services versus business needs

– Determine commodity services versus business specific services

• What is the business case?

– Assess options

– Assess depreciation and life cycle of IT assets

• What is the roadmap?

– Define migration/transition

– Define architecture and orchestration


Steps forward: assess and manage risks

• What is the ecosystem?

– Identify parties involved and their roles

– Assess different incident/problem scenarios

• What is the difference?

– Assess current situation versus future state

– Identify which risks and mitigations are applicable

• Which dimensions must be covered?

– Assess risks on various dimensions (compliance, vendor, technology, data, operation, finance)

– Determine responsibilities and accountabilities


Steps forward: keep your eyes open

• What is the impact on the (IT) organization?

– Diminishing role of the internal IT department

– Importance of contract - and vendor management

– New possibilities and responsibilities

• What will the cloud market bring?

– More confusion and diffusion

– Requirement-driven services

– Oligarchisation of IT


Contact

Drs. Mike Chung RE

Manager

KPMG Advisory N.V.

E-mail: [email protected]

Mobile: +31 (0)6 1455 9916


About the conductor

• Willem Mengelberg (1871 – 1951) was one of the most famous and celebrated conductors of his generation

• He has been the principal conductor of Amsterdam’s Concertgebouw Orchestra for over 45 years

• He was praised for his orchestral conductings of the works of Gustav Mahler, Richard Strass and Béla Bartók

• Richard Strass dedicated his masterpiece ‘Ein Heldenleben’ to Willem Mengelberg and the Concertgebouw Orchestra

• Mengelberg was banned by the Dutch government after the Second World War

• Although he was never fully rehabilitated, Mengelberg’s recordings are still enjoyed by millions of admirers all over the world

Cloud computing paradigm shift and considerations

Business

Transcript of Cloud computing paradigm shift and considerations