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Cloud Computing

Bringing the Cloud into Focus

November 2011

© 2011 IT/NET Ottawa, Inc., a subsidiary of KPMG LLP. All rights reserved

Introduction

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Ken Cochrane

CEO, IT/NET

Partner, KPGM

Performance and Technology

National co-Leader IT Advisory Services

KPMG

Andrew Brewin

Vice President,

Solutions Delivery

IT/NET Ottawa, Inc.


What are your objectives for cloud computing?

To contain IT costs?

To support consolidation of IT assets?

To improve service quality?

To support “greening”?

To improve “time to market” for client program needs?

To reduce the procurement burden on projects?

To achieve department or government-wide

standardization?

To allow you to focus on core business – client

specific solutions?

3


What is the “goal” of Cloud Computing?

To provide easy access to and elasticity

of IT services

4


Agenda

Cloud Myths

Cloud Computing 101 (“Bringing the cloud into focus”)

Value Proposition (“The silver lining”)

Issues (“Storm warnings”)

Next Steps (“The forecast”)

5


Cloud Myths

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Cloud Myths

Cloud Computing is a buzzword that has been sometimes misused.

Hype and misconceptions are common. Below are several myths that

are commonly associated with Cloud Computing:

Let’s learn more and look into these myths…

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Cloud Computing is a

specific technology (e.g., virtualization)

It’s just… Web Hosting / Grid Computing /

Outsourcing …evolved

There are

no standards

Everything can move to the cloud

It’s all hype It’s always cheaper


Cloud Computing 101

Bringing the cloud into focus

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Cloud Computing 101: Defined

…a model for enabling:

convenient, on-demand network access to a shared

pool of configurable computing resources (e.g.,

networks, servers, storage, applications, and services)

…that can be:

rapidly provisioned and released with minimal

management effort or service provider interaction.

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Cloud Computing 101: What it’s not

Cloud Computing is not:

Any specific technology such as VMware or

SalesForce

Virtualization

Outsourcing

Grid computing

Web hosting

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Cloud Computing 101: What it is

Cloud Computing is:

An IT delivery approach that binds together:

Technology infrastructure, Applications and Internet

connectivity as a defined, managed service that can

be sourced in a flexible way

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Cloud Computing 101: It’s characteristics

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On-demand self-service

Broad network access

Resource pooling

Rapid elasticity

Metered service

Abstracted Service

Based Scalable


Cloud Computing 101:Service & Deployment Models

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• Raw computing power and storage

Infrastructure as a Service

(IaaS)

• Operating system and application platform

Platform as a Service (PaaS)

• Remotely accessible applications

Software as a Service (SaaS)

Service delivery models Deployment Models

• Hosted internally or externally for your enterprise

Private

• Hosted by a service provider for many

Public

• Private data and/or applications are kept internal

Hybrid


Cloud Computing 101: Service Delivery Models

Software as a Service (SaaS)

The capability provided to the consumer is to use the provider’s applications (and services) running on a cloud infrastructure.

Reduce or eliminate application development effort

High adoption rate – any device, anywhere, any time

Lower up-front costs

E.g., SalesForce.com

14

SaaS (Software-as-a-Service)

Software, Application Layer



Platform as a Service (PaaS)

The capability provided to the consumer is to deploy onto the cloud infrastructure consumer-created or acquired applications created using programming languages and tools supported by the provider.

Simplified software management (upgrades, patches, licensing, etc.)

Simplified application deployment

E.g., Google App Engine

15

PaaS (Platform-as-a-Service)

Standard Application

Platform

Business Rules, Logic,

and

Middle-ware



Infrastructure as a Service (IaaS)

The capability provided to the consumer is to provision processing, storage, networks and other fundamental computing resources where the customer is able to deploy and run arbitrary software, which can include operating systems and applications.

Cost reduction/pay as used

Scalability/dynamic resource allocation

Reduced administrative overhead

E.g., Rackspace

16

IaaS (Infrastructure-as-a-Service)

Servers & Storage

Networking Infrastructure


Inside the Enterprise

Cloud Computing 101: Deployment Models

Private Cloud

Operated solely for an organization

May be managed by the organization or a third party

On premise or off premise

Full control

Low risk/compliance issues

High initial investment

17

Private (Internal Cloud) Private (External Cloud)

External but owned by the Enterprise


Public Cloud

Cloud Computing 101: Deployment Models

Public Cloud

Available to the general public or a large industry group

Owned by an organization selling cloud services

Pay as you go, utility pricing

High agility

Low control over data and service levels

Dependencies on external vendors

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Public Cloud


Inside the Enterprise

Cloud Computing 101:Deployment Models

Hybrid Cloud

Composition of two or more clouds (private or public) that remain unique entities

Bound together by standardized or proprietary technology that enables data and application portability

Maximum flexibilities in

managing costs, risks, and resources

High administrative overhead

Careful definition of data eligibility for migration from private to public

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Private (Internal Cloud) Public Cloud

External - Public Cloud

Hybrid Cloud


Value Proposition

The silver lining

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Value Proposition… to the business

Agility / Time-to-Market

New applications and computing resources can be provisioned more quickly

Cost

Shift from CapEx to OpEx as infrastructure investments are billed based on usage

Transparency

Business can see the ongoing costs of their applications due to the utility-pricing nature of Cloud Computing

Increased mobility of applications

Internet-based applications can be accessed, through appropriate security channels, anywhere

Forced compliance and governance

Standards which applications must follow (security, D/R, performance, etc.) can be enforced at the point of deployment to the cloud – i.e., release management cannot technically deploy an application to the cloud which does not meet certain criteria

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Value Proposition… to IT

Reduced support footprint

Standardizing platforms reduce the number of supported technologies, allowing a focus on depth of expertise

Service development flexibility

Defined platforms allow developers to focus on applications

Faster deployment of resources

Standardized platforms can be deployed in minutes, limited by

approval processes, rather than build times

“Green” (Improved efficiency of capacity)

Optimized utilization of resources through the abstraction of platforms and services from their underlying hardware and the merging of computing resources into a single grid

Security

Use of a common framework can improve overall security

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Issues

Storm warnings

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Financial

Underestimated start-up costs

Penalizing exit costs

Contract Complexity

Run-away variable costs – poor

capacity planning and forecasts

from the business

Data

Data Segregation, Isolation and

Transparency Concerns

Data encryption

Security/Privacy/Access

Intellectual Property Protection

Regulatory Compliance

Complexity to ensure compliance with Regulatory

Requirements and Regulations (Privacy, ATIP, etc.)

Lack of industry standards and certifications for

cloud providers

Records Management/Records Retention Concerns

Providers’ ability to monitor and adjust based on

changes to regulatory stipulations

Operational

Business Resiliency/Disaster

Recovery

Service Reliability and uptime

SLA Compliance in accordance

with agreed upon RACI

(who is responsible?)

Technology

Compatibility and Integration with

other services outside the cloud

Emerging technology/speed at which advances

are made in a production ’cloud’ environment

Customization limitations

Human Capital Security (Malicious Insiders)

Issues: Storm Warnings

Business Risks

Data

Operational

Technology

Regulatory Compliance

Vendor

Financial

Vendor

Vendor Lock-in – vendors dictate

technology to be used

Service Provider – reliance on

service providers for business

process (bankruptcy, loss of

reputation, lawsuit)


Next Steps

The forecast

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Service / Deployment Model Decision

The service/deployment model selection

process requires an assessment involving

factors such as:

IT budget and financial constraints

Long-term IT strategy

Level of governance across IT in defining

and enforcing standards for security,

development

Current understanding of existing

application portfolio, e.g., knowledge of

attributes, dependencies, documentation,

architecture

Classification of applications based on

business criticality

Application development organization’s

maturity and level of standardization

IT organization’s willingness to accept

risk and comfort-level with moving

applications outside of their premises and

immediate control

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Private /

PaaS-SaaS

Private /

IaaS

Public / PaaS Public / SaaS

Bu

sin

es

s C

riti

ca

lity

of

Ap

pli

ca

tio

n / D

ata

Complexity of Applications


• There is no “plug-and-play” solution

• Appropriate architectures will be unique to each organization

• Must weigh service and deployment models and their impact on people, processes, and technology.

Common Challenges in Adopting a Cloud Strategy

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Lack of a clearly defined architecture “vision”

• Public clouds introduce the risk of data being stored outside the enterprise in uncontrolled, multi-tenant

environments

• Both public and private models must ensure appropriate identity and access management and audit

compliance.

Perception of insecurity

• Business developing their own applications using whichever platform suits its need comes to an end in

PaaS and SaaS models

• Platforms and technologies must be carefully selected based on the enterprise’s business application

requirements, balanced with technical feasibility.

Lack of standardized platforms & technologies


• Can mission-critical applications be moved to a cloud environment? How will SLAs be assured with

tenants sharing resources?

• Even for non-mission-critical applications, contracts with public cloud vendors must be carefully defined

to address SLAs and how the provider will meet these.

Common Challenges in Adopting a Cloud Strategy

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Reliability, ensuring SLAs

• Will standardized platforms and technologies lock the organization into a specific vendor or limit its

scalability in the future?

Vendor lock-in and interoperability

• Geo-location and in-house restrictions on data may limit the types of services that could be moved to

a public cloud environment; private clouds must accommodate these regulations by appropriately

zoning applications.

Regulations and compliance


Service Models Compared

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IaaS PaaS SaaS

Level of

Standardization

Low Medium High

Flexibility High Medium Lowest

Agility Fast Faster Fastest

Consolidation Reduced number of

physical hosts

required

Reduced breadth of

support required to

service various

platforms

Everything up to the

software-layer is

consolidated, focus

shifts to any

customizations or

mash-ups to make up a

business service

Security Logically, same Increased through

reduced number of

platforms to secure

Potential to be

strongest, limited,

defined software stack

to secure


Deployment Models Compared

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Public Hybrid Private

Cost + Low up-front costs

+ Shift capital expenses to

operating expenses

+/- Similar to private;

however, private build-out

requirements may be less

- Up-front costs may be

significant; new computing

capabilities may be needed;

new skill sets and

knowledge may be required

Flexibility - Vendor-lock in risk, limited

portability

+ Able to discriminate data

moving to a public cloud

- Risk of vendor-lock with

public-cloud element

+ Full customization of

platform and infrastructure

offerings available

+/- Risk of vendor-lock

limited to component

technologies

Agility + Offerings prebuilt, very

fast deployment

- Most complex to architect

and deploy

+ Once fully implemented,

has potential to quickly

deploy business services

Security - Least control of

environment, reliant on

vendor

+/- Provides balance; ability

to determine public-eligible

or restricted data or

services

+ Most secure; data and

services are kept in-house


Conclusion: Myth Busters

There are many misconceptions about Cloud Computing.

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Cloud Computing is a

specific technology, (e.g., virtualization)

It’s just… Web Hosting / Grid Computing /

Outsourcing …evolved

There are

no standards

Everything can move to the cloud

It’s all hype It’s always cheaper

Not true However, Virtualization technologies, such

as Vmware, provide a base on which to provide Infrastructure-as-a-Service

Not true It is an IT delivery approach that binds

together technology infrastructure, applications, and internet connectivity as a

defined, managed service that can be sourced in a flexible way

Not true Cloud Computing in PaaS and SaaS Service Models limit the breadth of

applications and platforms available to the business, leading to increased

standardization

Not true The feasibility of moving to the cloud

depends on security requirements, ability to standardize, risk concerns, access

requirements

Not true Cloud Computing is built on the world’s

continued globalization and internet connectivity and is here to stay

Not true Underestimated start-up costs, penalizing exit costs, contract complexity and run-

away variable costs all impact the financial benefit of Cloud Computing


IT/NET can help…

Cloud computing promises to bring sweeping changes to the way

businesses and other organizations use IT.

IT/NET can help:

Provide clarity on cloud computing services and practices

Identify tangible benefits that are achievable today

Assist in navigating the associated risks and challenges

Getting independent advice can mean the

difference between success and failure

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The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to

provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate

in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

Thank you!

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