It is not the strongest of the species that survives, nor the most intelligent that survives.

It is the one that is the most adaptable to change.

SaaS vs. IaaS vs. PaaS

Software as a Service (SaaS): Complete application systems delivered over the Internet on some form of "on-demand" billing system: Salesforce.com, Google Apps Platform as a Service (PaaS): Development platforms and middleware systems hosted by the vendor, allowing developers to simply code and deploy without directly interacting with underlying infrastructure: Google AppEngine, Microsoft Azure, Force.com Infrastructure as a Service (IaaS): Raw infrastructure, such as servers and storage, is provided from the vendor premises directly as an on-demand service: Amazon Web Services, GoGrid

Imagine
Monday: 25 000 users

Tuesday: 50 000 users

Thursday: 250 000 users

Imagine
Monday: 50-100 servers Tuesday: 400 servers Wednesday: 900 servers Friday: 3400 servers

Animoto and Amazon EC2

Amazon EC2 easily scaled up and down to handle additional traffic

Cloud Power

Number of EC2 Instances

Peak of 5000 instances

Launch of Facebook modification.

Steady state of ~40 instances

4/12/2008 4/13/2008 4/14/2008 4/15/2008 4/16/2008 4/17/2008 4/18/2008 4/19/2008 4/20/2008

4 TB Data

100 Nodes

11 Million PDFs

100 instancesx 24 hours $0.10 / Hr= $240 x

The Internet and its attendant array of consumerdevices, networks and content sources have fundamentallychanged how customers, employees andpartners expect to interact with the enterprise (Gartner CIO survey
2008/2009).

The switch
Web 1.0 Web 2.0

Mainly narrow band

Flickr Alternativ e media Publishing is complex and Value is created by limited to few traditional aggregating media and online content (portals) merchants netvibes Wikipedia

2004

2005

Easy and free publication for all

Value is generated by tools allowing to publish easily

Broadband is (becoming) a right in Spain and Finland

Mainly Broadband

Traditional media

Google search

Technology and social factors have converged over the past few years to create a phenomenon called social computing
TECHNOLOGY Cheap hardware and software reach the masses. Simple devices that anyone can operate.

SOCIAL CHANGE Consumers look for cost and time efficient technologies, ways to make their voices heard. Younger techno savvy generations pioneer the use of personal networks and viral communication.

Source: Forrester (2006) Social Computing.

Internet statistics
100 billion clicks per day 55 trillion links It uses 5% of the global electricity 2 million emails per second 1 million IM messages per second 8 terabytes per seconde traffic 65 billion phone calls per year

Social Media statistics

20 hours of video uploaded every minute onto YouTube Facebook 600k new members per day 900.000 blogs posts put up every day Second Life 250k virtual goods made daily 700 million photos per day on Facebook Twitter 18 million new users per year 4 million tweets sent daily 1250 text messages per second

This is your new intranet

Identity? Facebook Connect! Its the social graph that counts!

The Perfect Storm has changed Business Focus

Business has been hit successively with;

The Credit Crunch Globalisation of Competition Commoditisation of key Activities Customisation requirements for Products Expectations for new levels of online Services
and then there is the Technology impacts around;

The Ubiquitous Connectivity Social Collaboration and Networks The arrival of The Cloud etc ..
So how do we Harness the forces of Change?

NEW ORGANISATIONAL PARADIGMS

HOW BUSINESS TECHNOLOGY IS CHANGING COMPANIES

TECHNOLOGY FUELED CHANGE

THE FUTURE OF PRODUCT AND SERVICE MARKETING & SALES

SOCIAL(ISM)?
COMMUNAL ASPECTS OF DIGITAL CULTURE

So its not just Traditional IT; there are new technologies too

People
Internal External

Web Services

Applications

Computers

Areas where traditional EA models often struggle

Dont respond to change quickly enough Arent aligned with current business reality Lack of focus on driving consumption (or network effects) Too centralized and isolated Expensive and resource-intensive Overengineered in the wrong places Excessively constraining.

The architecture stack is bigger now

Capgeminis Crown model

Pressure for Business An Individuals use of the capabilities of Web 2.0 Change

Personalize

A Business Managers Customizable Solution

Differentiate Organize Comply

The use of SOA to achieve cohesive executions

The Enterprise Transactions and Data; ERP and Legacy Applications

Pressure for IT Stability

A Services Governance Model with the Business!

Business and Technology Architecture Governance Model
Personalise An Individuals capability to choose their experience in how they wish to Interact and collaborate

Differentiate A Managers capability to build locally unique differentiating capabilities both externally and internally

Loose Coupled Business Technology

Organise (SOA) Common, shared core processes that support each differentiated offer above, and connect to transactional IT applications below

SOA the coupling layer between both Tight Coupled Information Technology

Comply (ERP, etc.) Traditional Enterprise Applications with organised procedures and data integrity, keeping compliant business results

There is an Interesting Inversion in this

Business and Technology Architecture Governance Model Personalise
An Individuals capability to choose their experience in how they wish to Interact and collaborate

Cost or Value?

Margin
Differentiate
A Managers capability to build locally unique differentiating capabilities both externally and internally

Loose Coupled Business Technology

$1 $2

$3

Organise (SOA)
Common, shared core processes that support each differentiated offer above, and connect to transactional IT applications below

$2

SOA the coupling layer between both Tight Coupled Information Technology

Comply (ERP, etc.)

Traditional Enterprise Applications with organised procedures and data integrity, keeping compliant business results

$3

$1

Revenue

An enterprise mashup is a custom application rapidly assembled by (or in close collaboration with) business users in short timescales to meet immediate business needs. Typically, they combine data, functionality or processes from multiple existing internal or external IT assets to create innovative business value.

What the heck are Mashups?

An enterprise mashup platform is software infrastructure that provides tools to rapidly assemble widgets in a visual environment thereby allowing easy combination of data, functionality and processes, even by business users.

Impacts on the business operating model

Business Process Outsourcing (BPO)
E.g. Finance BPO, Payroll Their people, process, application, platform + Infrastructure E.g. Salesforce.com, Google Apps Their application, platform & Infrastructure Yourpeople, process and operation E.g. Force.com, Gigaspaces & Appistry Their platform & Infrastructure Your application, people & process E.g. Amazon Web Services Their infrastructure, operations & support Your application, platform & processes You own everything Infrastructure, platform, apps & process. Contract parts of activities to partners

Software-as-a-Service (SaaS) Platform-as-a-Service (PaaS)

Degree of control

Commoditisation

Infrastructure-as-a-Service (IaaS)
Internal Software + Service & traditional outsourcing

A balance of Control and Standardization

Types of Multitenancy in the Cloud

Multi-Tenant Reseller Model Application Host In Cloud IaaS / PaaS Create Own IP Version of App
Resell Multiple Versions of IP

App

App

App

Application

Multi-Tenant Infrastructure Sustain Model Host In Cloud IaaS / PaaS

App

App

POC 1 App Latency Speed Response

Move over Groups of Apps

Applications & Infrastructure Maintenance

Portfolio Assessment & Migration

Types of Multitenancy in the Cloud

Application Multi-Tenant Application instances Model Host In Cloud Multiple OS IaaS / PaaS VMIs of App

App

App

Multi-Tenant Software Usage Model Host In Cloud SaaS

Multiple Tenant versions

Application

Multiple Tenants Of the single Application

App Meta Model conversion

PaaS API

Transparency : the provisioning boundary shifts in the Cloud to a shared model increasing security needs
SaaS
Provision level Abstraction

Device

URL

APaaS

Increased Shared Exposure

Network
IP/MAC

Auth ID

PaaS

App OS Image Physical Server

TCP/IP

IaaS

Increased Physical Boundaries

Domain ID

Monitoring becomes more important

What is your SLA

Using 5 services with a guaranteed uptime of 99% will result in a guaranteed uptime at your site of 95 %

The Required Future Business Model

The Architecture over a PaaS delivering by SaaS

Degree of Ready Built

PDF A

Examples

DOING BUSINESS IN A NEW WAY

Lego factory
SOLUTION
Lego launched the Lego Factory (http://factory.lego.com) an online model of engagement for potential and existing Lego users, which allows users to design, share and buy their own customized LEGO models THE LEGO FACTORY WEBSITE

BACKGROUND
Lego had traditionally been surrounded by a highly active constellation of Lego User Groups fan communities comprising of both adult and young members These groups maintained large online presence; operated independently of the company; exchanged and showed creative toy designs and models amongst themselves Lego needed to move out of closed proprietary mode and adapt a participative strategy for customer interaction, which would utilize existing user creativity in product design - Designer users can then order the bricks Through the Lego Factory, the company has taken needed to make their a step further in the evolution of user model, and also involvement, building strong brand relationship customize their own The initiative has created high levels of awareness box for the model and interest with the consumers - Other users on the site The initiative has put Lego a step ahead of can buy uploaded competition by moving out of closed proprietary designs in the gallery, content mode and involving fresh ideas from and will receive both consumers and community for New Product the bricks for the model Development as well as the building instructions Source: MRD Lab Analysis. Capgemini, ECR Europe Conference: Future Consumer Presentation, May 2008. coBrandit.com, Lego Co-creation - Users interested in custom-designing their own Lego models have to download and install the Lego Digital Designer - In the designer, the user can drag and drop to create a virtual toy design - Once the user has created a design, he can upload the same to the online gallery - Lego approves all designs before they are added to the online gallery, to filter out models for appropriateness for all age groups
Presentation by Mark Hansen: Video, September 2006. Crowdsourcingdirectory.com, Co-Creation in Lego Factory, September 2007. European Centre for the Experience Economy, Legos participative army marches on, April 2008.

BENEFITS

P&G connect + Develop

SOLUTION BACKGROUND
As P&G grew to a $70 billion enterprise, the global innovation model it devised in the 1980s was yielding shrinking success rates Their R&D productivity had leveled off, and innovation success rate had stagnated at about 35%, whereas innovation costs were climbing faster than top-line While P&G owned a 7500+ strong R&D team, it realized that viable product innovation was increasingly being done externally at small and midsize entrepreneurial companies P&G launched the Connect + Develop initiative, tapping into a global innovation network comprising of a host of sources, right from independent innovators to virtual innovator networks such as InnoCentive Having a clear sense of consumers' needs, the company identifies promising ideas throughout this network and applies its own R&D, manufacturing, marketing, and purchasing capabilities to them to enhance the rate of innovation

P&G CONNECT + DEVELOP

P&G converts them into science problems and sends into the network

P&G identifies top 10 customer needs

P&Gs Global Innovation Network

BENEFITS
More than 35% of P&Gs new products have elements that originated from outside P&G, up from about 15% in 2000 R&D productivity increased by nearly 60% R&D investment as a percentage of sales is down from 4.8% in 2000 to 3.4% in 2006 P&Gs average two-month cycle of generating physical prototypes and testing them with consumers has reduced to around 24 to 48 hours

P&Gs 7500+ R&D team work on solutions suggested and with internal communities INNOVATIONS In Areas Of Packaging, Design, Marketing Models, Research Methods, Engineering, Technology, Etc

Source: MRD Lab Analysis. Harvard Business School, Working Knowledge, P&G's New Innovation Model. Leveraging Ideas for Organizational innovation Blog, Dr. Kevin Desouza, Connect & Develop Innovations the P&G Way. P&G, P&G Connect & Develop Brochure.

Nike+, in collaboration with Apple

SOLUTION
HEAR YOU RUN

BACKGROUND
Nike wanted to create an immediately resonant experience for a broad target market, from marathoners to fitness joggers Nike+ was born as a multi-channel, multisensory marriage of Nike and Apple technologies Nike+ provides a robust platform of virtual racing, progress tracking, motivational goals and stories, global community comparison tools BENEFITS

Sensor in the shoe helps the runner hear through the iPod, the details about pace, time, distance and calories burned

SEE YOU RUN

On docking and synchronizing the iPod, Nike+ software loads the workout statistics to their website where the user will be able to track his/her workout progress

CONNECT AND CHALLENGE

Run data can be used to track progress, set goals, motivate runners. win rewards and challenge pals or all Nike+ users
CUSTOMER CENTRICITY THROUGH BETTER INTERACTION USING WEB 2.0

Nike+ is a unique way to engage with and promote higher levels of brand identity Nike.com amongst Nike users III Delivers increased value to Nike users through a unique way of collaborating Engages current and prospective Nike users with uninterrupted and targeted advertising 20% reduction in ad budgets as Nike is moving towards developing its own media network through such technological endeavors Total Sales worth $59 million and 1.8 I million users August 2008; 800,000 people globally simultaneously run a 10km race in 26 cities Share of Source: MRDShoe market: 2006website. Nike does business 3.0 Phill Butler, 2007. the Sports Lab Analysis. Nike+ 48% 2008 61% (12 month average)

I Widgets for setting II III II III

challenges, goals Blog facility for Nike+ users Link to purchase Nike+ kit and other Nike gear

Example

CLOUD COMPUTING

Undifferentiated Heavy Lifting The 70/30 Switch

30% of time, energy, and dollars on differentiated value creation

70% of time, energy, and dollars on undifferentiated heavy lifting

Infrastructure Cost $

The Capacity Planning Nightmare

Large Capital Expenditur e Irate calls from senior managment

Predicted Demand Traditional Hardware Actual Demand Cloud Computing

time

Rick Mans
rick.mans@capgemini.com +31 6 512 10 144 http://twitter.com/rickmans http://www.linkedin.com/in/rickmans