Professional Documents
Culture Documents
EXECUTIVE SUMMARY
Cloud computing is hot. But severe business risks and challenges are involved to retrieve the promised business advantages of cloud computing. Conclusions: The main disadvantages are: security, loss of control, unstable cost structure , potentially decreased business flexibility, integration problems. An adaptive architecture, including a new business model must be developed to retrieve business value Organizational changes are needed for adapting the technology (procedures, skills, business model) Formulate and maintain an exit procedure to change from CSP (Cloud Service Provider). Cloud computing technologies and business models have not yet reached maturity. Standards are being developed.
OUTLINE
This presentation is a brief summary of the research on cloud computing performed under supervision of the Business Management Support Foundation. The following questions will be answered: What is cloud computing What are the main disadvantages and pitfalls using cloud computing With Google returning more than 12 million search result on the term cloud computing the hype can not be ignored.
AGENDA
What is cloud computing Definition of cloud computing Is cloud computing new? Manifestations of cloud computing Cloud deployment models What should cloud computing be?
The main disadvantages and pitfalls using cloud computing Security Dependency (loss of control) Cost Decreased flexibility Knowledge Integration
New business opportunities and conclusions
Cloud computing draws on existing technologies and approaches, such as: Utility Computing Software-as-a-Service Distributed computing Centralized data centers What is new is that cloud computing combines and integrates these approaches.
Cloud computing can be seen as the logical evolution in outsourcing IT services. The promise is that with cloud computing every company (big or small) can get IT services in a very simple way.
Implementations of specific business functions E.g. Google Docs, Salesforce CRM, SAP Business by Design
Provide computational resources through a platform (Operating Systems) Dedicated APIs Resource Clouds (e.g. CPUs, memory, storage, network) Managed and scalable
Deployment Models
Hybrid cloud Public Cloud
With a public or hybrid cloud the CSP Uses resource pooling to serve multiple customers using physical and virtual resources that are dynamically assigned and reassigned.
AGENDA
What is cloud computing Definition of cloud computing Is cloud computing new? Manifestations of cloud computing Cloud deployment models What should cloud computing be?
The main disadvantages and pitfalls using cloud computing Security Dependency (loss of control) Cost Decreased flexibility Knowledge Integration
New business opportunities and conclusions
DISADVANTAGES: SECURITY
Security: No control over the business assets (data!). The main assets in every company are its data files with valuable customer information. A proper security model for cloud computing is not yet developed. Security, privacy and compliancy is still difficult for cloud solutions. Especially for public cloud services. Physical location of hardware and software is unknown. Site inspections and audits are hard. Availability. Constant connectivity is required. Failure to compliance. E.g. HIPAA, SOX, PCI, SAS 70 and audits. Risk of data loss due to improper backups or system failures in the virtualized environment.
DISADVANTAGES: DEPENDENCY
Dependency (loss of control): Quality problems with CSP No influence on maintenance levels and fix frequency when using cloud services from a CSP. No or little insight in CSP contingency procedures. Especially backup, restore and disaster recovery. No easy migration to an other CSP. Measurement of resource usage and end user activities lies in the hands of the CSP Tied to the financial health of another Company.
Integration: Integration with equipment hosted in other data centres is difficult to achieve. Peripherals integration. (Bulk)Printers and local security IT equipment (e.g. access systems) is difficult to integrate. But also (personal) USB devices or smart phones or groupware and email systems are difficult to integrate.
AGENDA
What is cloud computing Definition of cloud computing Is cloud computing new? Manifestations of cloud computing Cloud deployment models
The main disadvantages and pitfalls using cloud computing Security Dependency Cost Decreased flexibility Knowledge Integration >>New business opportunities and conclusions
New business models possible are e.g.: On demand IT Self service IT Pay-by-use These models are possible from a infrastructure perspective , but also out of a business application perspective.
DONT GO?!
Cloud computing is about an automatic data center from a IT perspective. But business and IT are allied.
One of the major changes that comes with cloud computing is that there is a need to: Automate the processes around the various tools and techniques used
So if you did not succeed the last 4 years with e.g.: SOA Building an automatic CMDB Automatic SCM (Software Configuration Management) Quality improvement for business and IT processes Governance Security baselines Think again on how using cloud computing will impact your current problem fields.
CONCLUSIONS
Cloud computing can give a significant business advantage!
To make Cloud Computing successful : Understand the risks involved An adaptive architecture, including a new business model must be developed to retrieve new business value Organizational changes are needed for adapting the technology (procedures, skills, business model) Understand the technology used by your CSP (Cloud Service Provider) Formulate and maintain an exit procedure to change from CSP.
ADVISE
To make Cloud Computing successful : Stay compliance : SOX, HIPAA, ISO , NIST e.g. Be robust for network failures and network performance issues. Stay close to open source and open standard solutions when choosing a CSP (Cloud Service Provider) Work from within a defined architecture to retrieve the wanted results using cloud computing Be aware of the current lack of standards when using or implementing cloud computing. Since long-term experience is lacking with the use of cloud computing real business advantages in relation to competitors is possible. But be aware of the many pitfalls that makes you inflexible in the future.
FUTURE OR PRESENT?
The cloud computing paradigm is not the future.
MORE INFORMATION?
If you want more detailed information about other business research questions regarding cloud computing. E.g.: Advantages or disadvantages of different vendor Solutions Open Source solutions available Open standards adaptation (e.g. Open Virtual Format- OVF) Integration aspects (business and IT systems) Organizational changes needed Quality systems for cloud computing Read the full report, contact us, or contact one of our partners.
CONTACT INFORMATION
Business Management Support Foundation Chamber of Commerce number 08164333 (The Netherlands) info@bm-support.org www.bm-support.org BM-Support.org is a foundation for sharing and creating knowledge.