Cloud & Virtualisation Conference

©2012 Deloitte. All rights reserved

Cloud ComputingOne size fits all … and other Myths

Kamal Ramsingh : Technology Services Leader

@CIOAnywhere

© 2012 Deloitte Touche Tohmatsu Limited

The Current CloudTruths we’ve come to realise


Hyper-Hybrid Cloud

Hybrid cloud model will be a dominant approach for large enterprise (private & public clouds) with the emergence of competency based clouds

As the services catalogue grows within the enterprise, there is a need for integration, monitoring and management capabilities – multi-cloud, multi-provider.

An emerging need for the subscriber and their ecosystem of providers to be able to share services for integration, workflow, business rules and business policy – cloud-to-cloud, in the cloud!


New Businesses

The Cloud provides a

launch pad for new agile

businesses who can take

advantage of the quick “go-to-

market” and scalability of

cloud computing.


New Business Models

Cloud Computing has

intrinsically changed the way in which businesses

operate. They are more agile,

efficient and profitable.


New Jobs

Cloud Computing does not take

employment away – but rather offers

additional employment as new skills and specialities are

essential.


Service Delivery

Cloud Computing has

revolutionised the way in which services are

delivered. They are flexible, on-

demand and cost-effective.

This is critical for SMMEs as well

as the Public Sector in Africa.


The Cloud PromiseManaged Optimism


Regulatory and

Compliance

UNDERSTAND YOUR VALUE AND READINESS PROFILE

Maturity of Industry Segment

Applications/ Process

Architecture

Alignment to Strategic

Position

Risks

The Cloud Promise

Readiness and Maturity

Support of Business

Imperatives

WHY ?

WHAT?

HOW?


Assess Your Cloud Readiness

Alignment to Strategic Position

1. Does your business model lend itself to collaboration2. Is there high geographic dispersion of operations with common applications3. Stage of Growth

Should time to market be a significant driver of success in your industry and technology a key

determinant of getting products /services to market quickly; then cloud is highly relevant for you.

Mis-alignedLimited value save for possible Price Predictability

Aligned Business value

creation more feasible

through cloud


Maturity of your industry segment

1. Are you operating in an industry / segment where growth is still intense2. Is the differentiation based on product innovation and service level3. Barriers to entry low for this sector

Industry segments that are mature demand innovation in order for organisations to remain profitable. Organisations in this space will find it necessary to explore and introduce

cloud computing offerings as internal as well as client facing solutions.


GrowingPotential differentiation value limited

Mature Cloud

represents a key catalyst for

innovation


Support of Business Imperatives

1. Is there a business imperative for agility and scale2. Will potential savings be relevant3. Will the be an opportunity to increase focus on core capabilities4. Will there be tax implications to a cloud initiative

Cloud is a disruptive technology and its adoption will have significant impact on the way that business and

IT is operated. Strong leadership is required to ensure the necessary management teams are

committed to the critical changes.

Low Support Value will be constrained if cloud is another IT project

Visible SupportGreater change of seeing cloud as a potential business

value enabler




Complexity of Applications / Process Architecture

1. Are processes supported my homogenous applications or several point solutions2. Similar consideration for platforms and infrastructure3. Is there a strong integration architecture and discipline

1 2 3

Extracting part of a process / discrete application to be placed outside the firewall is easier done

within a mature integration discipline

ComplexBetter suited for cloud

1 2 3

Homogenous Harder to

embed cloud


Regulatory & Compliance Constraints

1. High levels of client and internal data disclosure2. External regulatory structures3. Internal Compliance / Controls

Organisations who deal with highly sensitive data or are in highly regulated industries need

to be certain that cloud computing is a suitable solution for them.


High RegulationAbility to execute clouds solution may be harder / longer – reduces value

Less Regulation Higher value / return as less

complexity during deployment


Business / IT Risks

1. Market and Reputational – e.g. Media scrutiny on transactions2. Technical 3. Security and Privacy

Strong IT governance is required to ensure that IT decisions pertaining to Cloud are done in a timely manner and include the

relevant stakeholders, e.g. changing Cloud providers, expanding / extending Cloud use.


Un-governedBusiness risk levels are high – may offset value

Mature Easier to manage

transition – may impede


IT Readiness and Scale

1. Data Analytics and Information Management 2. IT Infrastructure3. IT Sourcing & Vendor Management

Smaller units have the ability to move and react quickly will able to take advantage of reduced costs

and the agility of cloud quicker.


Small and FlexiblePossible faster adoption to cloud demands

MatureMore

resistance with reduced value

creation


1. Organisations absorb change and realise business value at different rates. Cloud initiatives need to be recognised for the change agents they are ... and managed accordingly

2. Cloud computing needs to seek out business value and rapidly move beyond a technical conversation.

3. An objective view on Cloud Readiness should drive the rate and pace of adoption ... Low hanging fruit

4. The path to hyper-hybrid will likely lead to custom extensions of initial cloud services, increased interfaces to core back-office systems and data, and the pursuit of SaaS application capability cloud offerings.

Where to from here …


For additional information, please contact:

Kamal RamsinghTechnology Leader : Deloitte [email protected] @CIOAnywhere

mailto:[email protected]

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Cloud & Virtualisation Conference

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