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AgendaWhat is the cloud anyway?Why resellers cannot ignore the cloudBuilding a cloud value proposition


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What is thecloud anyway?


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Software as a service/security as a service Operating environment irrelevant

Ready to go security, CRM, ERP, email etc.SaaS

Platform as a service Operating environment included

Applications of choice deployed

PaaS

Infrastructure as a service Virtual server and storage platforms

Op. env. and apps. of choice deployed

IaaS

Three basic types of service


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Courtesy of 2e2

Traditional IT

Storage

Servers

Networking

O/S

Middleware

Virtualization

Data

Applications

Runtime

Youmanage

Platform(as a Service)

Managedbyve

ndor

Youmanage

Storage

Servers

Networking

O/S

Middleware

Virtualization

Applications

Runtime

Data

Software(as a Service)

M

anagedbyvendor

Storage

Servers

Networking

O/S

Middleware

Virtualization

Applications

Runtime

Data

Infrastructure(as a Service)

Storage

Servers

Networking

Middleware

Virtualization

Data

Applications

Runtime

Managedbyvendor

Yo

umanage

O/S

Three basic types of service


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SaaS

PaaS

IaaS

Cloud based services


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Security as a service Management services

Firewalls

End points

Anti-virus

Content security Web

Email

DLP

Data security

Backup

Business continuity


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Other clouds Private clouds

Consumer cloud services(web 2.0)

Future ofG-Cloud?


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Why resellers cannot ignorethe cloud1. The rise of cloud is a one way

street2. It is not an either or

proposition

3. Resellers that ignore it willwither


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Total global IT spending 2011 = $1.5Ttn (Economist)

~4%

~10%


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CIO view of cloud


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ISACA - UK organisations cloud computing plans

(April 2010)

Mission critical ITservices

Only low risk IT

services

No plans for any ITservices

No formalised plans

Not aware of any

plans


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Growth in use of cloud source Nov 2009, GoldmanSachs IT Spending Survey


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Thecommoditycloud

Sell capacity

Buy capacity (save 60%)


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process2. It is not an either orproposition3. Resellers that ignore it will

wither


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Public clouds, private clouds and hybrid clouds

Corporate

firewall

Server

Server

Server

Server

Server

Server

Server

Private infrastructure Public cloud infrastructure

Cloud

serviceprovider

Server

Server

Server

Server

Server

Server

Private

cloud

Cloud

service

provider

Server

Server

Server

Server

Server

Server

Hybrid

cloud


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process2. It is not an either or

proposition

3. Resellers that ignore it willwither


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A slow but certain death?


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Building a cloud proposition1. When and where cloud

works

2. Addressing risk

3. Defining value

4. Proving cost effectiveness


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Total value proposition

Value

CostRisk

Drive UP

Drive

DOWN

Drive

DOWN

+ environmental

dividend


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Building a cloud proposition1. When and where cloudworks2. Addressing risk

3. Defining value



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Deconstructing a business

Business Imperative

BusinessProcesses

Tasks


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The business process triangle

RiskValue


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works

2. Addressing risk3. Proving value



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Percieved risk Security IntegrationRegulatory requirementsData backup/disaster

recovery/business continuityAvailabilityCost PerformanceNo customisableBringing back in houseMoving work loads

Increasing

concern(approx)


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Cloud risk IDC 2008

27


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Savvis 2010 survey


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Risk - 2 years of change a rough guide


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Data security issues Integrity of platform

SaaS Covered by provider for both platform andapplication PaaS provider should keep operating system and otherparts of base platform patched and secure With IaaS, mostly it is down to you

Deprovisioning a cloud service Has the data been deleted Use of encryption

Controlling access SaaS provides access controls and guarantees PaaS/IaaS - you define who has access

Control over privileged access


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Regulatory compliance issues UK DPA keeping data in the EU

Where are failover sites Where are backups kept Local providers easier to deal with than global ones?

Federated reporting The problem of associating a user of a cloud servicewith their internal identity Data reporting providing a complete view of data

regarding a specific issue across on-premise andcloud based data sources SIEM (security information and event management)reporting


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Ultimately the security and complianceissues regarding your organisations data areyour responsibility

Either, it should be clear that a cloud serviceprovider is:1. Providing an SLA that provides adequate cover

2. That the SLA is being adhered to

Or, your organisation must take thenecessary measures itself

Who owns the risk?


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2.5 3 3.5

IT outsourcing

Use of new e-communications tools

Improving external communications

Ensuring regulatory compliance

Use new IT applications

Reducing IT risk

Safe and controlled use of data

Use of cloud computing

Use of virtualisation

How important do you think IT security is inenabling the following?

Scale from 1 =

unimportant to 5 =

very important

Source, Quocirca

You sent WHAT? May 2010


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Dont over look risk reduction

Access to enterprise class datacentres Better business continuity Mundane aspects of IT

outsourced to experienced 3rdparties


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works

2. Addressing risk

3. Proving value4. Proving cost effectiveness


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0% 20% 40% 60% 80%

Finance

Utility

Telecomms and Media

Public SectorRetail

Industrial

Healthcare

Contractors Partners Su liers Customers

Most processes span multipleorganisations

Source, Quocirca, The

Distributed Business

Index, March 2008

Percentage saying external users are providedaccess to internal systems


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Value flexibility, mobility0% 20% 40% 60% 80% 100%

Overall

Utility

Telecomms and Media

Finance

Industrial

Public Sector

Healthcare

Retail

> 75% 51%-75% 25%-50%


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Collaboration

Collaboration


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Web 2.0 -main channelsBlogs and

micro-blogs

Social

networks

Video/photo

Plus..

39


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works

2. Addressing risk

3. Proving value



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Software application cost of ownershipCumulative cost of ownership, on-premise software versus on-

demand application. Assumes a two year on-demand subscription

equals the cost of an on-premise licence plus two years maintenance

at 20% per annum.


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Environmentally

friendly?The environmental

dividend

>> CRC


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Federated cloud services Resellers need to select a set of cloud

offerings This requires:

Due diligence of suppliers (SLAs,standards etc.) Appropriate integration betweenservices A way of providing federated billing Portal for provisioning andreporting


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The use of cloud based services is nowwidespread

The tide is flowing in one direction There is growing acceptance of thecloud value proposition The positive and negative aspects of riskneed to be communicated Laggards will lose competitive edge Much aggregation will happen at thechannel level

Conclusion


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Thank youAll Quocirca reports freely available at:http://www.quocirca.com

Bob Tarzey

[email protected]
http://www.quocirca.com/mailto:[email protected]:[email protected]://www.quocirca.com/http://www.quocirca.com/

The cloud and the channel

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