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23/01/12

Program & Portfolio Management (PPM) in CL UD Computing Era !

Mohamed Rafik Babu, PMP


Director Information Technology & Web Services PMI-AGC Kuwait Program Manager Applications Agility, Kuwait

January 26, 2012

AGENDA
THE BIG PICTURE : CLOUD COMPUTING Problems with Current On-Premise Computing What is Cloud Computing? Cloud Services The Magical Trend & Predications on Cloud! Need of Cloud Computing

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AGENDA
HOW CLOUD COMPUTING IMPACTS PPM Need of PPM Today, More than ever! Advantages of Cloud Computing for PPM Impacts on Non-IT Projects (as well as IT) Need of PPM Software PPM Software in Cloud : The Rise of PPM Software as a Service (SaaS) SUMMARY Q & A

THE BIG PICTURE : CLOUD COMPUTING


P r o b l e m s w i t h C u r r e n t O n - P r e m i s e Computing What is Cloud Computing? Cloud Services The Magical Trend & Predications on Cloud! Need of Cloud Computing

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Problems with Current On-Premise Computing


Few examples of web scalability

Source: http://soa-biz.blogspot.com

Problems with Current On-Premise Computing


Google & Facebook are not the only ones..

Source: http://soa-biz.blogspot.com

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Load Patterns
Compute Compute

Inactivity Period Average Usage

Average Usage

Time

Time

Compute

Compute

Average Usage Average Usage

Time

Time

Source : WindowsAzureBootCamp.com

And in a non-Cloud view, there are inefficiencies in addressing those issues


Allocated IT-capacities Load Forecast

Under-supply of capacities

IT CAPACITY

Waste of capacities

Fixed cost of IT-capacities

Barrier for innovations

Actual Load

TIME
Source : WindowsAzureBootCamp.com

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THE BIG PICTURE : CLOUD COMPUTING


What is Cloud Computing ?
Gartners official definition of cloud computing is A style of computing where scalable and elastic IT-enabled capabilities are delivered as a service to customers using Internet technologies.

THE BIG PICTURE : CLOUD COMPUTING


What is Cloud Computing ?
Gartner defines Five attributes of cloud computing are: Service-based, Scalable and Elastic, Shared, Metered by use, Uses Internet technologies.

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THE BIG PICTURE : CLOUD COMPUTING

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Electrical Grid Adoption


80% 40% 5% 1900 1907 1930 1935 90%

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Source : WindowsAzureBootCamp.com

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In a Cloud View
Load Forecast

Allocated IT capacities

No under-supply

IT CAPACITY

Reduction of over-supply

Reduction of initial investments

Possible reduction of IT-capacities in case of reduced load Actual Load

Time
Source : WindowsAzureBootCamp.com

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Cloud Services

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Cloud Services
Packaged Software
Applications Data Runtime Middleware You manage O/S Virtualization Servers Storage Networking

Infrastructure
(as a Service)

Platform
(as a Service)

Software
(as a Service)

You manage

Applications Data Runtime Middleware O/S

Applications Data Runtime Middleware Managed by vendor O/S

Applications Data Runtime Managed by vendor Middleware O/S Virtualization Servers Storage Networking

You manage

Managed by vendor

Virtualization Servers Storage Networking

Virtualization Servers Storage Networking

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The Magical Trend & Predictions on Cloud!


Cloud computing will hasten the use of tools and automation in IT services, that are expected to eliminate 25 percent of IT labor hours. By 2015, low-cost cloud services will cannibalize up to 15 percent of top outsourcing players' revenue. At year-end 2016, more than 50 percent of Global 1000 companies will have stored customer-sensitive data in the public cloud.

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The Magical Trend & Predictions on Cloud!


Winners in the new competitive landscape will be those businesses that adopt Cloud solutions to fundamentally change their business models, not simply to improve efficiency of IT. Although there are significant benefits to be had in that more limited context, "better , faster, cheaper" is only table stakes.

From the research report "Advancing Business Innovation through the Cloud" of Saugatuck Technology, Inc.,

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The Magical Trend & Predictions on Cloud!


Preference for New Software Deployment

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Need for Cloud Computing


Benefits from Cloud Business Solutions

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Need for Cloud Computing


Business Considerations to choose Cloud

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HOW CLOUD COMPUTING IMPACTS PPM


Need of PPM Today, More than ever! Advantages of Cloud Computing for PPM Impacts on Non-IT Projects (as well as IT) Need of PPM Software PPM Software in Cloud : The Rise of PPM Software as a Service (SaaS)

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Impact of Cloud Computing on PPM


Need of PPM Today, More than ever!
As the IT industry goes through its next avatar, at the core of it all, businesses remain focused on Portfolios, Programs, Projects and Processes.

According to World Banks World Development Indicators for 2010, $12 Trillion (US) , 1/5th of worlds GDP, was estimated to spend on Projects.

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Impact of Cloud Computing on PPM


Need of PPM Today, More than ever!
With IT can enable an organization to do things better, faster and cheaper, it is, the discipline of Portfolio, Program and Project Management that ensures the delivery of expected outcomes. While Cloud is shifting much of computing from dedicated IT environments to Public and Private Cloud, the fundamental business functions and associated processes remain intact. Today, more than ever, the rigor of Program, Portfolio and Project Management is needed to ensure Projects, along with business functions and processes deliver expected results while taking full advantage of the benefits offered by the Cloud computing.

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Impact of Cloud Computing on PPM


Need of PPM Today, More than ever!
Gartner says Effective Allocation of Capital to IT Investments NOT Just Project Prioritization, Project Status and Resource Management. PPM is a Business Process!

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Impact of Cloud Computing on PPM


Advantages of Cloud Computing for PPM
Cloud Computing will Initiate Large Complex Projects, which in past were not feasible due to limited computer, storage and network capacities within an organization. Lowers the barriers for New Ideas! Rapid prototyping and experimenting. Lowers Risks to experiment. Allows Rapid Staging, Set-up and Take-down of a variety of compute environments as needed and faster than ever before.

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Advantages of Cloud Computing for PPM


Project Initiation is Faster than before Access to IT resources is immediate and very cost effective For SaaS, the solution is already out there, but it may need customization or integration. For PaaS & IaaS, majority of the software already pre-loaded Easier to perform Ongoing Financial Analysis Eg. TCO (Total Cost Ownership) Cloud Computing billing itself facilitates understanding of the costs with more precision. Many providers offer up-to-the minute usage cost. Eliminates a number of the variables associated with indirect costs (which are often the main contributors to different results)

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Advantages of Cloud Computing for PPM


Sample Cloud usage Bills from Microsoft and Amazon

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Advantages of Cloud Computing for PPM


Project Funding Faster to estimate and allocate Project Funding Substantially lower than traditional methods Project Tracking & Reporting Up-to-minute usage reports available Helps PPMs to prepare EVM and Other costs related reports. Lead to Greater Resource Sharing Greater Economies of Scale Greater Standardization Greater Process Optimization

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Advantages of Cloud Computing for PPM


Easy to measure all most all Readily available analytics of measures. Service Portfolio Analysis Easy to track deployed services Who, what and how often used Peak and non-peak hours Easy to manage SLAs Vendor / Contract Management Vendor / Contract negotiations are substantially reduced by facilitating Cloud Computing.

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Impacts on NON-IT Projects (as well as IT)


Need of PPM Software (PPMS)
Need of a PPM Software is critical at this time of world to manage any simple to complex projects, programs and portfolios. It helps you for estimating, planning, scheduling, managing cost control and budgeting, resource allocation and effective utilization, collaboration with team, communication, quality management, risk management and also for documentations. Project and Portfolio Management (PPM) solutions will become increasingly important to managing successful cloud adoption and to providing visibility and control of the cloud services portfolio.

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Cost Structure of PPM Software

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PPMS on Cloud : The Rise of PPM Software as a Service (SaaS)


Many micro & small organizations, governments or those in emerging economies are not affordable to invest on sophisticated IT for building and maintaining PPMS for their own. This major divide in the profession could be reduced through cloud computing -- providing businesses, governments and individuals with access to a reliable project management platform over internet at an affordable price as per usage. Minimizes the divide between small and large enterprises. Provides equal opportunities as project management clouds become available at an affordable price.

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PPMS on Cloud : The Rise of PPM Software as a Service (SaaS)


SaaS and web-based solutions available for project teams, whether for simple task management, mid-market project and portfolio management solutions, or more complex high end systems for more mature project teams. The PPM on Cloud is the portfolio managers friend, especially when working in an IT environment that is immature or loaded with beaurocracy. PPM is the only product category that will see a significant increase over the next two years (up 13%) when it comes to managing public cloud migrations.

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The Rise of PPM Software as a Service (SaaS)


Key Differences between in-house and SaaS PPM Software (PPMS)
Standalone and On-Site
All infrastructure to be procured

On Cloud (SaaS)
Web based PPMS helps you to deploy quickly

Internal technical team is Very limited team is required for required to develop, deploy and c o n f i g u r a t i o n . Te a m s i z e maintain. comparatively very less. Access Limitations Accessible virtually anywhere, anytime

Not available sometimes for SaaS PPMS allows for easy companies major updates and updates and seasonal updates. enhancements Traditional PPMS can take It provides better solution faster months and many consultants to install and deploy One-time fee for customization Subscription fees. and regular license cost for technologies used

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SUMMARY
Cloud Computing changes IT Not to be a necessary evil anymore. Brings positive impacts in many different aspects to enterprise, so its Portfolios, Programs and Projects. It is inherently fast, metrics, results, feedback and analytics oriented. Although there are significant benefits to be had, the buzzwords better, faster, cheaper is only the table stakes. Like an Air Traffic Control System, the PPM disciplines in the cloud world will be tasked with responsibility of overseeing, organizing, managing, and guiding a highly complex mixture of transactions that are processed concurrently in different parts of the cloud.

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SUMMARY
Just as success of a airplane journey depends on the skills of controllers and pilots, the successful completion and delivery of cloud projects will depend on Portfolio, Program and Project Managers, empowered with PPM framework and proven methodologies and combined with experience and discipline.

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Still Foggy or Is it Clear ?

Q&A
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