Michal Krzycki, Capgemini

Adopting Cloud Services - How to
unlock the value in your business
Michał Krzycki

February 10th, 2011

Introduction

 This presentation will not discuss/cover:
history of the cloud, discuss differences
between various cloud models (IaaS,
SaaS, PaaS), or focus on particular
technologies or products used
 but
 will briefly present how Cloud can be
adopted to bring value to organization

Source: geekandpoke.typepad.com/geekandpoke/2009/10/the-history-of-the-cloud-part-1.html

© Copyright Capgemini 2011 All Rights Reserved 2

What benefits does the Cloud Computing model bring?
 Can enable the customers of the IT department to focus on delivering business
outcomes using resources that are easily varied, customizable and scalable
 Based on OPEX model, minimizes up-front investments and improve time-to-benefits
 By radically changing an organization’s infrastructure, Cloud can help organizations bring
new products and new markets to consumers faster (time-to-market), lower TCO, and
enable a better user experience
 Offers standardization, flexibility, and business model innovation, changing the
competitive landscape within an industry and lowering barriers to new entrants on a
global scale
 Allows for rapid corporation reconfiguration at times when companies need to be able
to adapt their organizations and delivery models globally to meet market evolutions and
change
– (e.g. launching a new website for a product, for which demand is not yet known, can be
done very quickly and cheaply )
 Pay-per-use model lowers the initial investment (CAPEX) and reduces the risk of
over-investment (e.g. ability to purchase capacity on-demand).


How to get to the clouds?


Companies have a variety of choices when they investigate the
way forward in their cloud adoption
 The figure below illustrates the four* most likely paths for cloud adoption:
* In fact, there is a fifth
path. The fifth path is
the zero option, which
basically comes down
to: "leave the cloud and
continue with business
as usual"

There is no single answer to the question of how to move forward. The answer will be
based on the ambition and risk appetite of companies and organizations.


1-”Cloud@Once”
Big bang cloud based implementation
For existing companies with legacy
For market newcomers
systems
• In 2009/2010 almost every newcomer in the • Route with challenges!
market used this model
• Forced to work and do business in a completely
• They needed the minimum of time and money to different way
be in business – New business processes
• No legacy allows to benefit from all the goodies – new business applications
Cloud Computing has to offer – new information models
– new sourcing,
– new governance & security models
• Most existing companies fear the continuity of
their business.

If there is not a crucial reason to do it
this way (e.g. bankruptcy)

Best choice! Think twice!
(probably better start a new organization
based on Cloud Solutions)

Capgemini have examples that the "Cloud@Once" can work and can be very successful,
and all the cases were from organizations in great need or despair.


4-„Collaboration”
The most easy way to start
 The most easy way to start with Cloud Computing is to use some productivity and
collaboration tools in the cloud
 Business can continue as usual, but some elements are placed outside in a Cloud
bringing reach functionality and tangible benefit
– Google Mail and Google Apps
• Minimum effort and costs users have access to the most important office and email
functionality. As bonus they get instant messaging, video conference and more for free,
enabling collaboration with colleagues and customers.
– Microsoft BPOS (Business Productivity Online Suite)
• Familiar Business Productivity tools in the Cloud (Exchange, Sharepoint, Office Comm,
LiveMeeting)
 This first step to the Cloud is often not as simple as it seems!
– The IT department, the legal department and the security department will often hold you
back
• In general all these departments may see Cloud as a threat for the organization (…and their
own)
– „Cloud is not safe enough and that Cloud won't fit in our current security and compliance policies”
– Although a simple adjustment to policies may enable the organization to use cloud
computing, in our experience there is often a strong resistance
For more information please refer to www.capgemini.com/google-apps/ or Google for
„Capgemini BPOS”

In SaaS, Content, Communication and Collaboration (CCC)
segment will grow the fastest, driven by high customer interest
 SaaS Segment Growth Projections

Revenue Trend and CAGR, Key SaaS Segments • Enterprises are most keen on adopting the cloud
model for CCC applications
(Figures in USD billions) – At 67.3%, collaboration applications have the highest
likelihood of adoption from enterprises

21.3% 17% 14.7% 7.3% • Market segments such as email and team
collaboration will witness a steady surge in
SaaS usage
– SaaS represents less than 10% of the total enterprise
5,61
market spending in the email category
• However, a strong focus from players such as
4,1 Google and Microsoft on SaaS delivery will drive
adoption
– Team collaboration segment is gaining in popularity
from influences from social software and distributed
2,14 virtual teams
1,87 1,67
1,4 • SaaS represents nearly 47% of the total market
1,17
0,71 revenue in this segment which is expected to rise
steadily
CCC CRM SCM ERP

2008 2013 CAGR

Source: Capgemini TME Strategy Lab analysis; Company Websites; Gartner, “Market Trends: Software as a Service, Worldwide, 2008-2013, Update”
Note: SCM – Supply Chain Management


3-”Safe exploration”
Explore universal domains
 Some domains in any organization are more or less universal and not fully dependant on
other domains
– e.g. Sales&Marketing is typically such domain
• Every organization has suspects, prospects and customers
• Every sales or marketing department has offerings for and interactions with customers.
• They all keep track on the sales and orders.
– This kind of autonomous and standardized domains are ideal to migrate to the cloud
– The safe exploration route may contribute to your business objectives but can also be
used to, without any really big risk, to taste the power of cloud
– If you want to use SaaS solution for your autonomous domain, use it as it is. Combine
available Saas business services as needed, fine-tune the web interfaces as neatly as
you want but this should be it!
 By uploading your company logo, your screen layouts and your customers info you can be
productive in a matter of days or weeks.
– We proved the speed of this way of working by doing a test case during the "Business in a Day"
conference. Within 2 hours 2 colleagues were able to set up a complete operational environment with
functional specifications and requirements taken from the audience and it worked!

Our advice: Use SaaS solution as offered!


Let the Clouds make your life easier

Source: geekandpoke.typepad.com/geekandpoke/2009/03/let-the-clouds-make-your-life-easier.html


2-”Dual Approach”
Transfer integrated systems to Cloud
 Plain Iaas – the most easy and straight forward way
– Use an IaaS Cloud provider (e.g. AWS). Move your back-office environment (applications and
databases) to IaaS and reboot in the Cloud. Mixed mode (some systems in the Cloud and some
systems on-prem) is possible and will work.
• Advantages: Simple to do, saves money instantly when taking out your own data-centre and technical
personnel
• Disadvantages: You don't get ride of the „mess”, you just moved it to the Cloud. You still have to develop and
maintain your own applications, all the issues between IT and business still remains. A "Plain IaaS"
solution will free some budget but it will not really help the business in their need for a quicker Time to Market
 SaaS/PaaS and Bus
– Do not to move existing applications to the Cloud but start using SaaS and PaaS and Extended Bus to
integrate Saas/Paas to your on-premise systems
• Advantages: Can simplify the application landscape by using functionality from the Cloud. The model give
the possibility to swap services in and out easily giving the possibility to optimize cost and usability. It
will shorten Time to Market by selecting existing business functionality not by building them. Step by
step you can clean up the „mess” and after a while you will save money.
• Disadvantages: SaaS/PaaS + Bus only works if you are using more or less standard functionality and
information. All the specials will give you a lot of trouble.

Visit immediate.capgemini.com
and read about Immediate Cloud ecosystem and how it allows our Customers to rapidly
achieve the business outcomes.

Journey to Clouds - summary
 As stated earlier; there are various routes to the Cloud; your choice depends on a lot of
factors, like:
– The organization & business type
– The ecosystem and competitors
– The urgency in saving money or be more agile
– Current application landscape
– Risk appetite
– Influence of the Legal & Security departments
– Wiliness of the IT department
– The attitude of the CIO, is he/she enlightened or frightened?
 It all comes down in defining a solid Cloud strategy including a realistic roadmap!
– Selecting the right path for your organization requires new ways of thinking and access to
processes that will accelerate service delivery

Capgemini advise: invest in „Cloud readiness workshops” to help you better prepare for
the future .. in the Clouds!


There are many risks and things to consider on the journey to
the Cloud
 Some key issues and points to consider include:
– Provider Lock-In
• Understand the duration of the contracts you have in place. Plan an exit strategy from the
start
• Important is strong due-diligence, knowledge, and relationships with the best-in-class Cloud
Computing providers to ensure their ability is guaranteed before using the service
– Data security
• Prepare for losing the comfort of having all your data between your own four walls!
– Compliance/Regulations
• Extra agreements are needed to make it possible to apply the laws about personal and financial
information to the Cloud provider
– SLAs
– Change old supplier selection and contracting processes
• Traditional procurement processes may cost the business more than the Cloud Service being
procured!
– Try before you buy!
• Focus on business outcome not technology
• Use common free trials to build prototype
• Jointly developing the prototype, business and IT department, each party will have a clear
understanding of the requirements, dependencies and costs

Closing statement

 Cloud Computing introduces
benefits and big changes…

 … some habits will need to change!

Source: geekandpoke.typepad.com/geekandpoke/2009/10/the-history-of-the-cloud-part-1.html


Thank you very much for your attention!

Michał Krzycki
michal.krzycki@capgemini.com

Michal Krzycki, Capgemini

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