Your Cloud Under Your Control?

1. Your Cloud Under Your Control? Enterprise Ready On-Demand Computing June 6th, 2011 Your Kings-of-the-Cloud: Drs. Job Stierman RE MoC CGEIT - Verizon Drs. Mike Chung RE - KPMG

2. Headquarters The Extended Enterprise A Complex, Global, and Dynamic Business Model IT leadership must help accelerate business growth while optimizing performance. • Challenges for IT Leaders • Complex networks • Large number of applications • Security and compliance • Remote locations and workforce • In-house expertise • Capital investment • Timely support for Infrastructure growth Customers Suppliers Partners Data Centers Retail Locations Distributors Remote Workers Contact Centers BranchOffices

3. Business ChallengesInflexible and Cost Prohibitive Infrastructure Enterprises are faced with a common set of business challenges centered around improving performance of applications and infrastructure while controlling the cost of doing business. • Common challenges include: • Traditional method: Plan to peak • Each department or business application was in a silo with dedicated resources • Demand varies over time • Idle servers waste capital, power and cooling, and data center space • Traditional method: Need a feature, buy a box • Cannot scale quickly for fluctuating business cycles • Loss of flexibility • Once locked into dedicated infrastructure, you become rapidly overtaken by technology advancements • Traditional method: Need redundancy – buy two of everything • Capital intensive, significantly drives up cost • Complex in nature and difficult to manage • Must sacrifice flexibility • Traditional method: IT as cost center for business • Difficult to prioritize individual needs • Difficult to perform as value center • Companies are looking for departmental charge back to help cost management • Managing the cost of underutilized resources • Need the ability to deploy capacity on demand • High availability configurations are complex and costlyto manage • Transparency with information for cost management and chargeback

4. Industry Applications Business Processes CRM/ERP/HR UC Billing Middleware Database Integration Server Storage Data Center Network How Can You Use the Cloud? Applications • Users access applications from the web, mobile devices, office, and home computers • Purchase features in a flexible manner: per seat, per application, or usage-based End User Development • Business customers leverage platform to deliver consumer applications, like social networking, video, and music • Underlying technology is abstracted from IT user IT User Infrastructure • Provide low cost infrastructure as foundation for other services • Multiple entry points to consume resources, software applications, web-based portal IT User

5. Cloud Drivers Across Industries

6. Cloud Inhibitors Across Industries

7. Industry Near Term Cloud Opportunity (<2012)

8. Utility Based Pricing Cash Flow Friendly Model Take financial risk in monthly increments by transitioning from a CAPEX model to an OPEX oriented model, matching resources consumed to actual business demand and growth. • Based on Daily Usage, billed monthly • Predictable Monthly Rates per Resource • Proration for Mid-Month Usage • Usage Reporting and Trending • Flexible Contract Terms • Pure usage • Commitment Tiers

9. Comprehensive Security is mandatory Layered Approach: Design with Security in Mind • Physical security of data center environment • Rigorous security testing and audits including certification Infrastructure Security • Benefits of Virtual Farm approach: • Load Balancer controls application exposure to Internet • Multi-tiered network with Virtual Firewall in between • Single sign on portal • Audit trail of all change actions • Secure connection to customer provisioned farms • Hardened OS build on private build network • Continuous patch management Client Security • Identity and Access Management • Host Intrusion Detection/Host Intrusion Prevention • Log Management • Application Vulnerability Assessment • Network Application Assessment • Professional Security Services including SMP Optional Security

10. Suggested Cloud Maturity Model (1)

11. Suggested Cloud Maturity Model (2)

12. Any Questions?