Value Team– 2010 - P0

Value Team as enabler of the “cloud” ecosystem

March 2011

Value Team – Cloud Computing March 2011 - P1

Summary
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Organizations are facing extensive and radical changes in the competitive landscape: new players coming out of nowhere, international turmoil, rising costs of raw materials, energy and labour, limited access to qualified knowledge workers and an ever accelerating pace of technological innovation In this environment, managing change has become the key challenge: staying on track, supporting effectively the strategic business objectives and at the same time keeping operating costs under control On the ICT front, CTOs and CIOs must be able to provide their organisations with an expanding set of solutions, thus making effective orchestration of ICT resources the key success factor Cloud Computing can provide a substantial help in reaching this goal, but as a possible “disruptive” technology it might also add further uncertainty to the picture ICT governance, in this relatively new paradigm, is a question of balancing the competitive cost of not using the cloud, against the risks of actually using it
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Team, with its competences, methodologies and experiences, helps customers in exploiting the full potential of Cloud Computing, by serving the market as a Cloud Services Enabler Team supports organisations in implementing an effective “cloud governance”, by evaluating the opportunities and risks of adopting Cloud Computing, and addressing themes such as quality of service as well as data and infrastructure security

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Value Team – Cloud Computing March 2011 - P2

• Cloud • Value • Value

Computing: an overview Team vision of Cloud Computing Team approach to Cloud Computing

• Attachments

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  3. application.Value Team – Cloud Computing March 2011 .  5.  4.. network. services) which can be easily provisioned or decommissioned on a “per-use” criterion Self-provisioning and configuration of services Seamless access via network Virtualisation of shared resources Measurability of provided level of service Elastic provisioning and decommissioning of resources 3 . server.P3 An overview of Cloud Computing: a definition ? 1.  “Cloud” what? Cloud Computing is a model that enables on-demand access to a pool of resources (e. storage.g.  2.

even on a sporadic basis.P4 An overview of Cloud Computing: drivers and enabling factors Drivers - Competitive pressure demanding for: -  Shorter Time-to-Market for new service activation and support to new business initiatives -  Reduction of overall and variable IT costs in line with the evolution of business -  Operational flexibility of applications and supporting IT systems. even for temporary needs. good visualization and easy interaction -  "Blend" between of the consumer and enterprise contexts 4 . while 600 million consumer devices are connected wirelessly -  Mobile devices with high computing capacity. network and routers speed (from 10 Mbps in 1996 to 100GbE in 2011) - Virtualization technologies for the "elastic” management of activity. for market / customer intelligence Enabling factors - Technological advances in computing power (CPU). storage size at constant costs. such as marketing campaigns to be run "one-off“ -  Leverage of all the information available about the customers and processing of huge data sets. size and delivery of ICT resources - Pervasive broadband connectivity - Standardization of application frameworks - Previous investments in SOA - The “Hyper-connected Consumer”: -  About 2 billion people using regularly the Internet and 5 billion phones active.Value Team – Cloud Computing March 2011 .

Y.o.) •  34. Market forecast in Italy - Aviva (Insurance) •  Cloud of Enterprise Content Management & BI on Microsoft SharePoint (Azure) - Universal Music (Consumer services) •  e-commerce of “Venda”.000 staff online •  -70% in email expenditure Y.Value Team – Cloud Computing March 2011 . archive.000+ DVD titles Source: Press – Value Team elaboration Source: Net Consulting *Does not include Virtualization 5 ..000 employees + 15.000 employees - Netflix (rent-by-mail / streaming video) •  All platform has been moved to Amazon (AWS) •  16 million registered users •  Hosting 100.g. a retail shop online serving all of Europe - City of Los Angeles (Government) •  Adoption of “Google Apps” for document production and management. Personal productivity.P5 An overview of Cloud Computing: status and trends Cloud adoption across sectors - Rentokil Initial (Facility Management) •  e-mail migrated to “Google Mail” •  20.. (e.

P6 Cloud Computing can tackle both tactical and strategic goals STRUCTURAL ADVANTAGE Business innovation Extend boundary of operational capabilities Ensure service levels of variable load environments like portals. function. DM/KM Replatform obsolete legacy environments ENTERPRISE-WIDE Point solutions OPPORTUNISTIC Rationalisation SCOPE 6 .Value Team – Cloud Computing March 2011 . customer interaction channels Transformation "Mash-up" internal capabilities and external services to meet and anticipate business demand Redefine model for IT cost allocation SPECIFIC (project. process) “Test-drive" new business processes with no investment in ICT resources (OPEX only) Provide extra capacity to applications undergoing performance optimization Offload IT of evolution and maintenance of environments like mail.

Value Team – Cloud Computing March 2011 .P7 Cloud Computing intended as “computing as a utility” has the potential to reconcile the needs of both Business and ICT or Optimise operations •  •  Reduce ICT costs Mitigate operational risks Assign ICT costs Manage load balance Guarantee security level Enhance business •  •  •  •  •  •  •  Experiment new solutions/opportunities Support and provision new initiatives Open new markets and sales channels Overcome ICT rigidity Satisfy in real-time customers’ needs Can the “cloud” be the answer? •  7 .

P8 • Cloud • Value • Value Computing: an overview Team vision of Cloud Computing Team approach to Cloud Computing • Attachments 8 .Value Team – Cloud Computing March 2011 .

Value Team – Cloud Computing March 2011 .) •  Value Team is positioning and proposing itself to the market as a player that enables the aggregation of different models around the "cloud” •  Value Team puts together the necessary skills to understand business processes. ERP. VMWare.. applications and resources in the ecosystem where they were conceived and developed and is able to build solutions configured to support the needs of customers 9 .. CRM. Rackspace etc..) SLA platforms and Brokering platforms Few Innovators (Brokerage service providers) New products from established vendors (EMC. BSS.).g. IBM.P9 Our mission: being the Cloud Computing enabler Cloud Computing offering Services aggregation Market Business Users NEEDS SOLUTIONS Cloud Services “Pure” cloud providers (AWS. Telco operators. ICT Services and Platforms: Various vendors (e. OSS etc. Hosting providers etc. HP.

P10 Can the “cloud” be the answer? ? Yes.Value Team – Cloud Computing March 2011 . managing SLA Translate business SLAs into strategies for the usage of ICT resources Implement governance tools that map strategies as rules Provide governance tools with feedbacks on health status of ICT resources Manage elastically the allocation/release of ICT industrial elements SLA-DRIVEN ICT RESOURCES ORCHESTRATION Fulfill the requests for delivery of services in accordance to business SLAs by managing internal and external ICT resources dynamically 10 .

Value Team – Cloud Computing March 2011 .Provisioning / de-commissioning) of the ICT industrial elements which allow the deployment of services (service factory) 11 .P11 Implementing the delivery model of “cloud” requires to govern a complex ecosystem External context Enterprise Business Governance of ICT systems Security Connection of Business SLA to ICT Business requirements ICT Application Performance Monitoring Application Platform vComputing Fine-tuning of technical SLA with respect to business SLA Intercloud SLA Broker Management & Control vNetwork vStorage Peak overflow External ICT resources Adaptable Automation Governance .

P12 The role of SLA Management tools in the Cloud Computing scenario Business Business processes Business rules Tiered service quality Consulting and system integration players like Value Team SLA Management •  SLA Management tools keep service and process aggregation aligned with the ICT “factory” Service quality metrics and traditional business requirements are coded into rules that define how virtualised ICT resources are used to deliver required service at optimal “cost” Cockpit/Dashboard Rule engine •  Mail/DM CRM ERP . Google. IBM.... Oracle.. IT Applications Virtualisation Oracle.. Amazon. Rackspace . 12 ICT Infrastructure (“metal”) Public cloud providers ... Cisco. SAP...... Xen.Value Team – Cloud Computing March 2011 . EMC. VMWare.. Microsoft.

and deliver effectiveness in respecting Service Levels (Security. Management & Control.P13 Service Level management in the cloud context can be cut across the different layers of the ICT system SLA anywhere - Governance of SLA in the cloud means to be able to discriminate among different systems and different use of applications - Governance processes and solutions deliver direct feedback on the state of health of services. Application Performance Monitoring.g.. Dynamic Work Load Management. etc.) 13 .Value Team – Cloud Computing March 2011 . Intercloud SLA Broker. Peak Overload. provide visibility of critical components. Adaptable Automation) - SLA Compliance is ensured between business KPIs and ICT services/resources (e. guarantee the security of the environment.

Value Team – Cloud Computing March 2011 .P14 Example: SaaS with (real) SLA SLA for Software as a Service Channel for higher margin SaaS solutions to customers with guaranteed business SLAs - automated multi-tenant elastic management - offer higher SLA for higher margin service - 'throttle' resources to 'just' satisfy SLA to customer (saves cost) “Sense” automatically provisions (and releases) appropriate resources to SaaS tenants Source: Sensible Cloud with Value Team elaboration 14 .

P15 Example: Peak Load Buffer Peak Load High value business application must automatically cater for planned and unplanned peak activity many times above usual load….Value Team – Cloud Computing March 2011 . - reduce in-house footprint while maintaining level of service - automate load provisioning and transfer - business intelligent load balancing (across hybrid cloud) Sense detects peaks and acquires (or releases) additional resources as needed Server farm Source: Sensible Cloud with Value Team elaboration 15 .

Value Team – Cloud Computing March 2011 .P16 Example: Virtualisation Management Virtualisation SLA Manager “Sense” monitors and manages hybrid virtualisation and cloud resources based on SLA target Assuming that Virtualization strategy has been selected and implementation started. SLA management is key to manage the park of virtual resources to match business application needs and objectives. for example: -  increase 'overbooking algorithm’ (number of VMs per server) -  prioritise high value services for preferred VM allocation -  manage down energy use more quickly -  increase resiliency of business critical applications Source: Sensible Cloud with Value Team elaboration 16 .

Value Team – Cloud Computing March 2011 .P17 • Cloud • Value • Value Computing: an overview Team vision of Cloud Computing Team approach to Cloud Computing • Attachments 17 .

Value Team – Cloud Computing March 2011 .P18 Our Approach is based on three “pillars” Consulting Solution Delivery Design Build Run Component Plan the adoption of the Cloud Computing paradigm Build the business case for Cloud Computing adoption and define the optimal strategy to capture the opportunities offered by the new paradigm: -  Select areas of higher potential return -  Identify prerequisites and constraints -  Detect and mitigate risks -  Estimate required effort and investments -  Prioritise actions -  Define roadmap of initiatives -  Select reference technologies and vendors Put in place processes and tools for Cloud Computing governance Introduce governance criteria and tools that allow to maximise benefits and control the impact of Cloud Computing in the enterprise context: -  Guarantee service levels -  Keep service levels aligned to business KPIs -  Coordinate and optimise consumption of cloud services -  Manage attribution of IT service costs to business units Support business with cloud-based solutions Leverage the SaaS solution delivery paradigm to support more effectively emerging business needs: -  Implement quickly application solutions for new business models and processes -  Reduce solution cost -  Move solution costs from CAPEX to OPEX -  Make solution cost variable with business volume and operational requirements Goals 18 .

g.. quick start-up of application solutions supporting new processes and organization units. organisation.g. define the required architectural changes and evaluate the relevant effort -  Build the business case and define priorities for actions -  Define the roadmap of initiatives for Cloud Computing adoption Methodologies Tool Checklists Description Checklists are a key component of the interview guidelines used by VT staff to assess customer needs and propose prioritisation of budget allocation to areas with higher opportunities for adoption Deliverables - Specialised checklists for different areas (e. Security. platforms and applications -  Identify business goals and needs – possibly also tactical. interim provision of extra computing capacity for critical projects or customer interaction environments such as web sites/ portals) -  Analyse technical and infrastructure requirements.Value Team – Cloud Computing March 2011 . cut ICT costs. short-term ones – that can be addressed by a “cloud” approach (e.P19 The goal of the first “pillar” is to define the strategy and roadmap for the adoption of Cloud Computing Design Component Plan the adoption of the Cloud Computing paradigm Activities -  Perform a quick assessment of the enterprise ICT scenario in terms of infrastructure.g. regulatory) and risks -  Identify infrastructure and application environments that can be migrated or started in a “cloud” logic.) - Centralised feedbacks - Inputs for “service solutions” (service KPIs) Rationale -  IT vs. Infrastructure. applications. constraints (e. operational. business etc.. Business alignment -  Effective and easyto-use tool 19 .

.P20 Value Team has developed cross-sector and sector-specific frameworks for “Cloud Readiness” assessment EXAMPLE Opportunities Core and CRM systems •  Manage “tactical” highvolume campaigns •  Support the launch of new products and services •  Start-up new sales networks •  Prepare adoption of BPO Constraints •  Complex process and application integration •  Customisation of packaged software •  Auditability •  Management of personal data Risks •  Confidentiality of sales information Facilitators Support systems (e. multichannel customer interaction ICT infrastructures and platforms •  Share investments among different business contexts and processes •  Manage IT cost accounting more effectively •  Technological inhomogeneity •  Legacy architectures and platforms •  “Disposal” of existing infrastructure assets •  Redesign of business continuity criteria 20 .Value Team – Cloud Computing March 2011 .g.g. document and knowledge management) •  Vendor lock-in •  Outsourcing already in place •  Functional richness of services •  Quick technological update with no effort and impact •  Manage effectively peak loads •  Perception of security of sensitive data and information •  Regulations on location of stored data •  Adoption of new platforms and methodologies for software development •  Service availability Portals. HR) Horizontal systems (e.. mail.

g. on a test environment Deliverables - Identification of impacts on SLA management Rationale -  Explore capabilities on a sample process. activation of an additional service/provider to deal with peak loads or faults) -  Integrate..g. the service logic is simulated on a demo environment (e. before the actual target process is selected -  Zero impact on the customer IT systems -  Address an issue with “in-house” capabilities (e.g. managing peak loads on a web portal) -  Identify possible impacts on IT systems PoC (proof of concept) - Improvement of the customer process by optimisation of the “active” SLA management logic 21 .Value Team – Cloud Computing March 2011 . continuity and measurement -  Define guidelines for the contractual agreements with the technology vendors and service providers -  Define IT process and organization changes Methodologies Tool Solution Mock-Up Description In the mock-up. configure and deploy cloud governance tools (such as Sensible Cloud’s) to implement the rules in the operational IT environment.P21 The second “pillar” aims at implementing the governance tools supporting the Cloud Computing environment Build Component Put in place processes and tools for Cloud Computing governance Activities -  Define the service levels to be guaranteed depending on the business requirements and the expected impacts of service quality disruption -  Analyse risk factors and define criteria for their mitigation -  Define criteria and rules that allow to meet and sustain required service levels also in case of transient or anomalous conditions (e. An environment is built with real customer data e.. ensuring service performance.g. AWS or Value Team) using customer rules and fictitious data The PoC is the tool by which the customer can have a “first hand” experience of Cloud Computing.

  Readiness and maturity of SaaS market offering -  Test the SaaS delivery model on a subset of application users and data -  Plan and execute application migration or start-up Value Team has built and is expanding its own portfolio of SaaS solutions. potential impacts.  Mapping of present application portfolio to current and emerging business needs 2. that currently includes: - Cross-industry solutions: 1.P22 The third “pillar” aims at supporting the business by means of SaaS applications Component Run Support business with cloud-based solutions Activities -  Identify the target application areas by taking into account: 1.Value Team – Cloud Computing March 2011 .  Workforce Management and Field Force Management VTDocs – Document Management Identity & Access Management VTPie – Payment/Core Banking 2.  Economics and issues of large-scale in-house application management and delivery (e. need for scarce competencies) 4.  Business relevance. size and skills of supporting staff.g.  22 . implementation issues and constraints 3.  - Industry-specific solutions: 1.  3.

The solution ensures a broad support for Italian regulations.Value Team – Cloud Computing March 2011 . for instance the agents in a Call/Contact Centre. on the basis of the actual availability of resources Manage shifts Time Management Perform a precise evaluation of the working time of resources Analyse and monitor Tracking.P23 Value Team SaaS portfolio: Workforce Management (WFM) solution WFM is a modular. flexible and scalable solution for planning and control of the activities of staff working on shifts. laws and standard contracts Functions Anticipate needs Plan resource allocation Planning. planned 23 . Scheduling Plan activities and actions. Monitoring React quickly and effectively to any change with respect to forecast Modules Forecasting Analyse prospective needs and define accordingly the required number of staff and their skills Objectives Who What How much Actual vs.

Monitoring Forecasting Functional blocks Forecasting Data Reporting Traffic trend analysis Training Planner Real-time Processing Adherence Monitoring What-if analysis Messaging Working Time Management Common storage 24 .P24 Value Team SaaS portfolio: Workforce Management (WFM) solution functional map Functions Anticipate needs Modules Plan resource allocation Planning. Scheduling WFM Schedulers Interactive Skill-based Manage shifts Time Management Attendance Record Analyse and monitor Tracking.Value Team – Cloud Computing March 2011 .

Value Team delivers a complete set of modules that allow banks to address both compliance to standard guidelines and competitive differentiation of their offering.P25 Value Team SaaS portfolio: the VTPie solution With VTPie.) Market demand Re-definition of the offering model in upcoming competitive contexts •  Support different types of payments/ collections as an integrated platform •  Flexibility of the process engine to minimize the need of writing code to implement new features •  Low OPEX due to adoption of commodity technologies *Additional Optional Services 25 . by implementing value added services (VAS) for their customers Technological & business drivers Alignment to new international standards in terms of process. prepaid credit cards. etc. etc.) •  Integration with organizational processes (e-invoicing. financial value chain.Value Team – Cloud Computing March 2011 . payment instruments and regulations •  Ability to manage high volumes of multi-channel transactions •  Full integration with legacy systems •  Re-use of the customer’s existing service components Value proposition •  Built-in scalability to cope with the evolution of the market •  Flexibility to support different organizational models •  End-to-end solution tracking the whole payments process •  Business requirements (AOS*) implemented via a process library •  Innovative payments (mobile.

channeling.P26 Value Team SaaS portfolio: VTPie Payments Platform Payments Wallet & Mobile Contains a set of innovative payment tools: management of payment accounts. ensuring compliance with PSD Kernel - transactional engine - Workflow management - SOA repository - integration adapters 26 . etc. SEPA and international bank transfers within a single application Advanced Direct Debit Module that supports the processing of direct debits. This allows identification of the events associated with the various stages of the transactions.Value Team – Cloud Computing March 2011 . both receivable and payable Access Bridge Satisfies the need to interface one’s back-end systems with external systems and Networks Clearing & Settlement HUB Manages transactions with other banks efficiently and consistently. micro-payments. from the initial input or reception by the network to subsequent events likeposting. automatic and/or manual processing. Multicurrency Credit transfer Ensures integrated and consistent processing of domestic. P2P payments. supporting the choice of exchange and settlement channels for outgoing payments VTPie End-to-End Tracking Stores payment information in a single repository that keeps track of all orders sent and received: the database contains all events of the payment lifecycle. settlement and debit/credit to the customerʼs account.

P27 • Cloud • Value • Value Computing: an overview Team vision of Cloud Computing Team approach to Cloud Computing • Attachments 27 .Value Team – Cloud Computing March 2011 .

Value Team – Cloud Computing March 2011 .P28 sense™ .overview architecture 28 .

Value Team – Cloud Computing March 2011 .P29 Supported virtual and cloud IaaS environments 29 .

P30 sense console .Value Team – Cloud Computing March 2011 .'SLA health' cloud map 30 .

etc) “Sense” uses business rules to dynamically balance between and across VM’s (& cloud providers) Source: Sensible Cloud with Value Team elaboration 31 . IBM. HP.Value Team – Cloud Computing March 2011 .P31 Example: Balance across VM technologies Balance across VM’s Apply business policy to balance load across multi-vendor virtualization and cloud installations -  avoid vendor lock-in -  cost/performance quality of service drives cloud use -  use existing VM technologies too (Sun.

P32 Key security issues in the Cloud Computing context Issues Areas to address •  Access management in mixed public/ private model •  Identity provisioning and user lifecycle management •  Data privacy compliance (Data Protection Directive 95/46/EC) •  Business Continuity and Disaster Recovery posture •  Sensitive data assessment and privilege definition •  Mission critical data segregation and protection (on-premise) •  Business Continuity plan revision to address RTO and RPO SLA •  Identity and Access management platform and solution integration in mixed on-premise/cloud models 32 .Value Team – Cloud Computing March 2011 .

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