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One Simple Alternative. Cloud computing. What is Cloud Computing?.
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What is Cloud Computing? Cloud computing is a model for enabling ubiquitous, convenient, On – demand, network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction Source: National Institute of Standards & Technology
Types of Clouds A public cloud can be accessed by any subscriber with an internet connection and access to the cloud space. A private cloud is established for a specific group or organization and limits access to just that group.
Types of Clouds A community cloud is shared among two or more organizations that have similar cloud requirements. A hybrid cloud is essentially a combination of at least two clouds, where the clouds included are a mixture of public, private, or community.
Cloud Models Software as a Service (SaaS)refers to software that is accessed through a web browser and paid for on a subscription basis Platform as a service (PaaS) the delivery of a computing platform and solution stack as a service. Infrastructure as a Service (IaaS) delivers computer infrastructure, typically a platform virtualization environment, as a service
Global Cloud Market • Cloud computing will grow into a $241 billion market by 2020. • Software as a service (SaaS) will be adopted by companies of all sizes. • In 2020, SaaS will become a $132.57 billion market. • Business Process as a service will be notable, but face modest revenue. Source: Global Public Cloud Market Size – Forrester Research
Top Functional Areas for Cloud Adoption • 84% of the professionals selected IT as the top area of adoption. Infrastructure/IaaS, storage, e-mail, back-up and disaster recovery were the most commonly identified IT processes. • 31% of the professionals, selected the sales and marketing functions, or more specifically, customer relationship management and sales force automation. • Finance and accounting (F&A) (accounts payable and receivable) and human resources (HR) (payroll, employee self-service) rounded out the top four functional areas. Multi process SaaS -based HR suites were also identified as gaining traction in the market. Source: KPMG’s 2011 Global Cloud Pulse Survey
Cloud Adoption in different Regions Source: State of Cloud Application Adoption – A TCS Study, 2011
SaaS provides flexibility along with lower cost “How important were the following benefits in your firm’s decision to use SaaS?” (4 or 5 on a scale of 1 [not at all a factor] to 5 [very important]) Improved Business Agility Lower Overall Cost Base: Software-decision-makers who are using or are planning to use SaaS Source: April 2012 “The Changing Cloud Agenda”
The “Cloud” Advantage Cost Savings The Cloud Time Savings Flexibility & Scalability
Cost of Ownership – On-Premise vs Cloud On-Premise Software Cloud Computing Software Licenses 9% 68% Subscription Fee TCO Customization Implementation& Training 43% Customization & Implementation 32% TCO 26% Hardware • Source: Yankee Group DecisionNote • Technology Analysis 14% IT Personnel 7% Maintenance 77% less than On-Premise 1% Training • “Cloud computing yields substantial economies of scale and skill, and lowers total cost of ownership (TCO).” • – The Hurwitz Group “The Compelling TCO Case for Cloud Computing” • “Customers can spend up to four times the cost of their software license per year to own and manage their applications.” • – Gartner “The End of Software”
Data Center & IT Resources – On-Premise vs Cloud • Complex, overgrown computing platforms • Depreciates quickly • Consumes large amounts of space, power, and cooling resources • IT resources silo around particular applications • Difficult to adapt to changing business demands On-Premise Software Cloud Computing • Storage and server needs in hands of outsourcer • Shifts burden from in-house IT to 3rd-party provider • Frees up internal resources • Reliable service • Huge datacenters with endless storage and computing capacity • Add or subtract capacity as business needs change • Pay only for what you use Cloud computing is a commercially viable alternative for companies in search of a cost-effective storage and server solution.
Security – On-Premise vs Cloud • Personal computers easily corrupted • In-house data centers not immune to hackers • Security cost burden • In-house IT staff not necessarily most skilled at securing your data • Infrequent audit of all processes and policies On-Premise Software Cloud Computing • Superior security technology and expertise than a company trying to protect its own data • Cost of security spread over a number of customers • SSAE 16 Audit and SOC 1 Type II Report • Availability 99.9% • Continuous performance audits • Backup/restore/disaster recovery Well-managed cloud computing can be more reliable, secure, and private.