Cloud computing metrics for successful business architecture and strategy capgemini tog washington...

July 18 2012Mark Skilton, Global Director, Strategy Office, Global Infrastructure ServicesTechnical Led, Global Government Cloud Portfolio, GPSCo-Chair, Cloud Computing Work Group, The Open GroupMember, ISO JC38 UK Mirror+44 7787 [email protected] Twitter @mskilton http://uk.linkedin.com/pub/mark-skilton/1/189/968

Cloud Computing Metrics for Successful Business Architecture and Strategy

v1

| Infrastructure Services

Agenda

This session will introduce current work by Capgemini on Cloud Computing services and adoption strategies and how Architecture development is evolving to transition Customers and providers towards on-demand IT and Business Architecture models.

The work uses current insights and methods from Capgemini and also from Standards Body work including the Open Group Cloud Computing Work Group.

The session introduces a framework of how Big Data, Mobility, Social networks and Ubiquitous Computing is changing the landscape of Business and IT solutions. It positions how Cloud Computing may fit into these trends and how business and IT need to consider their value case and architecture choices from customer and provider view points.

The session concludes with examples of technology and business architecture roadmaps , metrics and design criteria for cloud or not cloud adoption

Key Takeaways

1. How to establish key services value cases for Cloud Computing

2. How to identify different Computer Architecture Patterns for security, quality and cost performance advantages and address architecture solution challenges

3. A framework for decision analysis and cloud computing services scenarios covering utility resources, big data, mobility, social networking and ubiquitous computing

2© 2011 Capgemini. All rights reserved.


Capgemini are pioneers in the Cloud space

© 2012 Capgemini. All rights reserved.

Internally focussed on back office transactions. Strives for cost reduction Uses operational performance, standardization

to boost flexibility and agility. Seeks sharing/synergies as in ‘X’ aaS Driven by efficiency and effectiveness of IT

systems

Inside-OutThe evolution of IT systems

Customers

Suppliers

Partners

Social Website

Externally focussed on front office activity in the marketplace. Customer-centric, joined-up service Reduce time, cost and complexity. Pay-as-you-go Integrate with social and business network, improve customer

engagement to boost outcomes. Driven by the service and the business.

Outside-InThe revolution of business capabilities

Market

IT Application Secu

rity Bo

rderBack Office IT

Cost Reduction and Process Automation

Front Office ITMarket and Information

Value Producing

Web & Cloud Services

Innovation in business models

Inside-Out

Outside-In

From The Cloud: Time for Delivery. The Question is not “If”, but “How, Where & When”

Andy Mulholland, Capgemini, February 2012

3


Disruption and transformation dominatethe technology landscape

© 2012 Capgemini. All rights reserved.

Disruption Forces

2011 2015

41

Cloud Services

150

63%

18%19%

65%

28%

8%

40%

54%

11%

39%

CAGR‘15/’11

Public cloud SI Service provider cloud Client on-premise cloud

Source: Forrester, Everest

SI Service provider cloud

‘11%Total

CAGR‘15/’11

41% 49%

36% 51%

18% 69%

4% 32%

18% 54%

Dynamicapplications

services

DynamicBPO services

Dynamicinfrastructure

services

Total =$7.5bn

Cloud-based integration

Buyer preferences are moving to on-demand, pay-per-use & “as a

Service” models

Market

Development of disruptive industrialized low-unit cost

business models

Industry

Undifferentiated traditional OS services are increasingly

commoditized

Services

4


Cloud enabled Ubiquitous Systems

Devices ubiquity• New capabilities to use anywhere on any device from table, smartphone

Information Context Aware• The ability to collect, metricize , monitor and platform machine to machine M2M, machine

to human M2H telemetry across a wide range of structured, semi-structured and unstructured data

Situation Context Aware• The ability to create new physical and virtual environments with intelligence information

an process context from the level large to the very small.

Internet of Things• The ability to multiplex and multiplicity of entities, assets and services spacing beyond

the computing sphere into many other metasystems in social, commercial, organizational, biological and sustainability system models.



Ubiquitous Systems



New strategic business planning processes

Synthesis and model• How metadata , edge networks and metasystems need to connect across technical, social-societal,

economic, socio-political and biological spheres of influence and

Simulate & Test• How “live” systems and feedback have enabled a step change in the immediacy and indirectly

collection and creation a large data set footprints in the scale of Petabytes and exobyte magnitudes.

Interact• Ubiquitous methods and devices to span individuals, groups, networks and domains of interaction :

Places, Spaces, Pads, Boards, Tabs, embedded devices and micro and nano technology creating new experience visualization, metrics and feedback awareness.



New strategic business planning processes



How do we measure and direct this transformation ?


Resellers, VARs, Network Provider, Brokers, Aggregators, Orchestrators,..

Customers,Consumers,Buyers

OEM,Content,ProductsServices


Cloud Consumer Metrics


CapitalandCash flow


Building ROI from Cloud – The Open Group Paper

Increase Margin

Optimized Asset Capabikities

Access to Skills & Competency

Speed and Rate of Adoption & Cost reduction

Optimize Asset Utilization

Rapid Provision /

Deprovision

Risk and Security Efficiency

Dynamic Usage


Cloud Consumer Metrics


RevenueandGrowth


Building ROI from Cloud – The Open Group Paper

Increase Margin





Rapid Provision /

Deprovision


Dynamic Usage


Cloud Producer Metrics


Operational Efficiency• Latency of Service provisioning• Latency of Service delivery• Speed (Velocity) of Service

provisioning• Speed (Velocity) of Service delivery• Cost of Service Management - per

Product Activity• Level of Automation – stages, end to

end• MTBF – Service robustness• RTO efficiency• RPO efficiency

Operation Efficiency

Product PortfolioManagement

Competency

Market NetworkEfficiency

Margin Effectiveness

Asset ServiceEfficiency

Security Efficiency

Legal Effectiveness

Product Portfolio Management• Product Granularity – Size of Unit

Price/Cost • Competitive Price mix – Price benchmark • Price per SLA point – SLA benchmark • Strategic Platform Vendor Partner

leverage – • Intellectual Property Value of Portfolio• Reseller index of Portfolio • Technology refresh index• Openness – Technology standard

containers, APIs use• License Openness – flexibility, time

granularity• Transition mix – Support Own , blended,

Legacy• Technology version mix – support of OS,

Container, API types

Competency• Staff Skills competency – legacy vs

new skills• Staff utilization mix – demand

support – legacy versus new • Own versus 3rd party resource

supply topology

Market Network Efficiency• Addressable Market size share• Network integration integrity

ownerships – loose coupling index – own / 3rd party

• Number of Social Node vertices connections per Product / market / Account

• Number of gateway , stores ownerships – loose coupling index – own / 3rd party

Margin Effectiveness• Reoccurring Revenue • Reoccurring Margin• Margin scale

• Augmented services • Down scale• Cross scale• Up scale• Blended

• ARPU – average revenue per user / account

• ARPM – average revenue per market / account

• Churn – customer / account retention

Asset Service Efficiency• Cost of Asset efficiency

• Hardware cost per unit• Storage• Server• Network• OS

• Software cost per component

• Service cost per unit • Multi-Tenancy efficiency ratio• Physical versus Virtual asset

efficiency ratio• Cost of Sustainability, CSR

index

Cloud producer Metrics – Draft The Open Group Paper


Cloud Intermediary Metrics

Cost of Integration Symmetry – balance , diversity Contiguity – joined up Security and Trust Distributed Workload Interoperability Use case

• How a Cloud Computing Workload can be part processed or distributed across distributed resource pools

Marketplace Interoperability Use Case• How a Cloud Computing Service sourced from one Marketplace

case operate in another marketplace.• The marketplace is defined by the metadata semantics ,

standards

Platform Equivalence Portability Use case• How the cloud platform for a service is comparable and the same

if the service was ported to another Cloud Platform Use Case• Example: the same Application can run or two or more different

Mobile Cell phone Platforms

Service Equivalence IOP Use Case• How a cloud service running on a cloud platform can interoperate

with another cloud or non-cloud platform


Resellers, VARs, Network Provider, Brokers, Aggregators, Orchestrators,..

Operation Efficiency

Product PortfolioManagement

Competency

Market NetworkEfficiency

Margin Effectiveness

Asset ServiceEfficiency

Security Efficiency

Legal Effectiveness

Increase Margin





Rapid Provision /

Deprovision


Dynamic Usage

Consumers Producers

Interoperability & Portability , Cloud Broker – WIP The Open Group Guide and Paper


These ecosystems exist



These ecosystems exist



How will structural changes occur ?

16© 2012 Capgemini All rights reserved.

Integration acrossmultiple Devices &

Platforms

Multiple development environments

Multiple ResourceEnvironments

IntegratedEcosystem

Group PlatformsISV PlatformsVertical Industry Platforms

MicrosoftSalesforce.com

VmwareEMCOpenstack/EucalyptusRackspace

AmazonRackspace

Hosting

Security Service

Automatesmany commonServices

VerticalMarketCloudPlatforms& Solutions

IntegratesSocial Networks

IntegratesMarkets

IntegratesBusiness processes

Integrated Channels

Integrated multi-cloud

B2B

G2B

B2C


But enabling adoption willneed Standards Governance

Requirements

17


How to identify the Business Portfolio Fit Cloud enables solutions fit across the whole enterprise portfolio, not

just commoditization

Cloudslam2012 Mark Skilton May 2012


Cloud EnabledEnterprisePortfolioRightcloud TM

Examples


Where and When to accelerate the use of Cloud enabled on-demand Products and Services



Transition to on demand Business Architectural models



CIEL Cloud Interactive Ecosystem Language


Development with The Open Group, Cloud Computing Work Group


“Night in the Clouds”- Cloud Security Case studyCIEL Cloud Interactive Ecosystem Language


CIEL Concepts and Metadata – Draft The Open Group Paper


Conclusions

23© 2012 Capgemini . All rights reserved.

Infrastructure has moved into an enabling architecture across “multi platforms”. Many vendors I’m seeing in the market are differentiating on this. By that we can run on many different devices and OS’s. This leads to Multiple Platform capabilities (Windows, Linux, Proprietary etc)

Many developments are occurring in Standards and modularization of hardware devices and Software services such as virtualization and SaaS. Systems Integration is becoming converged networks , converged servers, converged storage, converged, apps, converged processes. Systems Integration becomes more complex if moving across data and services between multiple providers and services. Service Orchestration is the convergence hub to engage different needs of technology in a stepwise migration. Business Infrastructure is this, infrastructure to enable business (not just IT)

Enabling Business to interact and evolve

Enabling Business to migrate and transform

Many commercial and social collaborationsare across multiple devices and platforms

Complexity in manyservices, interfacesan technology standards.

Traditional On-PremiseEnterprise Technology can not deliver solutions into todays ecosystem How to get growth in the

ecosystem through channelsand User Experienceis underpinned by agileinfrastructure

Many customers and providers are seeking how to get growth in their ecosystem through channels and better user experience. Being able to understand the products and catalogs to enable on-demand rapid services is enabled through a Service Orchestrator framework that managed core ecosystems services such as security, provisioning, on-boarding, metering , service levels, performance, innovation and integration.

Enabling Business to grow and compete

Business aims challenges Technology Context

Many organizations by end 2012 will have multiple Cloudservices on and off premise (Gartner)

www.capgemini.com

The information contained in this presentation is proprietary. ©2012 Capgemini. All rights reserved

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