Identifying successful business models to drive monetization of your cloud service Mark Skilton, Capgenmini

1. Identifying successful business models to drive
monetization of your cloud service
Mark Skilton
CloudExpo2011 West
November 2011

2. | Infrastructure Services
Agenda
 Identify how to target growth markets and value propositions for
cloud business models
 Introduce a monetization strategies framework for targeting
successful ROI from cloud computing
 Identify real examples of business models to take existing traditional
and cloud services towards improved business performance and
cash-flow
2

3. | Infrastructure Services
SOME THEORY ON CLOUD ECOSYSTEMS
3

4. | Infrastructure Services
On-demand characteristics
Communities,
Markets &
Channels
Incremental
Demand
Homogeneous/
Heterogeneous
Platforms &
Business
Environments
12
11
10
9
8
7
6
5
4
3
2
1
Individual
Demand
Aggregate
Demand
Time
Service use, user churn
Consumer/ Buyer
Community size
Number
of Vertices (Nodes)
Number of
User Relationships
Number of channels / access to service
Number of interacting relationships (demand/supply behavior)
evaporation
expansion

5. | Infrastructure Services
Value Propositions – on-demand characteristics
Faster
Better
Cheaper
Cost and time
To provision
1:5 to 10
1:300 to 500
TCA
Provisioning,
de-provisioning
1:5 to 10
1:300 to 500
Virtualization
TCO - sourcing
1:10 to 20
1:30 to+ 50
Examples

6. | Infrastructure Services
Some definitions - Cloud Ecosystems
Are made up of communities, consumers, buyers, vendors, providers and
intermediaries (brokers, aggregators, orchestrators, carriers..)
These can be describes as nodes (vertices), resources, relationships and various
interactions
Process
automation
Business Network
Market Channels
Affiliate, business
Network
Hosting
Versus
Cloud
Cloud is
not just
hosting
Mash-ups
On-demand
processes How to create
Business
Functions in
Cloud
Aggregators / brokers
of cloud-on-demand
Source: CIEL

7. | Infrastructure Services
Value Dynamics in Cloud Ecosystems
There are groups of
Users that consume
Similar Value Propositions
We see architecture as
a design of topologies in
Cloud Networks and
interactions.
This is related to the
Community network
effects and the properties
of dynamic consumption
patterns
Value
proposition
Consumed
Value
Faster
Better
Cheaper
Delivery
Value
Triskelion
matrices
Cluster
Community
Consumption
PatternVertices, variables
Value footprint

8. | Infrastructure Services
Creation of Value networks in Cloud Ecosystems
F = Faster, B = Better, C = Cheaper
F
F
F
F
F
F
Group Cluster seeking
Faster Value Proposition
C
C
C
Group Cluster seeking
Cheaper Value Proposition
F,C
F,C
F,C
F,C
C,B
C,B
C,B
C,B
C,B
C,B
Group Cluster seeking
Faster, Cheaper Value Proposition
Group Cluster seeking
Cheaper, Better Value Proposition
e.g. SaaS
e.g. IaaS

9. | Infrastructure Services
Cloud Ecosystems
Competition in this context has a
different meaning because you
are considering focus between
different communities and
demand and supply densities.
The gateways and channels
become key distribution model
issues
The multiplexing of resources
become a key deployment
availability issue
We see this everyday in our
lives ; Traveling through a city
from
one district to another.
This is a fractal property of
ecosystems . Small scale and
large scale. Physical and virtual
resources and relationships
change in cloud ecosystems
Demand and Supply Densities
interrelationships
Community 1
clusters
Community 2
Ecosystem boundaries
Common
Demand
and
Supply
Pattern
Characteristics
Feedback loops
Diversity factors
Behavior Science

10. | Infrastructure Services
Value dynamics in Ecosystems
Clusters of common services with similar Value Proposition Characteristics
These are 3 dimensional
in the ecosystem space
Topological size
Of these can be used
represent clusters of
Consumers
Ecosystem “Triskelion”

11. | Infrastructure Services
Topology of ecosystem shapes
Real world systems often exhibit pattern behavior
Topology of triskelion lattice
transformations
http://www.ncbi.nlm.nih.gov/pmc/articles/PMC1225879/?page=10
Adapted from Toplogical mechanisms involved in the formation of clathrin proteins
Evolution of Clusters in ecosystems Multi-clusters

12. | Infrastructure Services
Prototype Experimental Design of Ecosystem
Dashboards - Cloud Triskelions
Topological representation of Value to metrics focus
Semiotic representations of Cloud Ecosystems
Faster
Cheaper
Time
Cost
Lower
percentile
Upper
percentile
Performance
Metrics – ROIValue Proposition
Better Current Value
Community Size &
Dynamics
Market Value
Upper
percentile
Use of 3D Visualization representation

13. | Infrastructure Services
ECONOMIC MONETIZATION
13

14. | Infrastructure Services
How do we measure Value Proposition ?
Business and Operating Metric
Choice of Metrics drives
Monetization
Strategies
How we develop
Revenue /
Value
from the offer
Delivery
patterns
Consumption
patterns
How we Measure
Specific
performance and
Value
Value proposition
Macro and Micro
Economic
Positioning
Understand what
markets are we in ?
Growth Markets
and economics

15. | Infrastructure Services
Targeting growth markets
Properties of On-DemandMarket Enterprise Demand profiles
Small
Companies
SMBs
Large
companies
Small
Demand
Sizes
Large
Demand
Sizes
Core Infrastructure
Services
Value Added
Services
Agile
Rapid
Structural
Stoic
Community
Size
potential
Supply
size
potential
Augmented
services
Structural
Cloud
services
Institutional
Utility
servicesMarket
Dynamics
Buyer/
Consumer
“Consulting”
“reseller”
“Provisioning
engines”
“brokers”
Buyer/
Consumer
Vendor/
Provider
Tend to be Micro  Macro strategy focused

16. | Infrastructure Services
Market on-demand Profiles- macro-economic view
Market Enterprise Demand
Small
Companies
SMBs
Large
companies
Market
Dynamics
New
Markets
Existing
Markets
Rapid
growth
Tech kill
refresh
Incremental Change
Disruptive Jump Change
Offer transition to on-demand
Step change through on-demand
channel exploitation

17. | Infrastructure Services
Targeting growth markets
Micro-economic view
Open Source
Appliance
Faster, Better
Faster, Cheaper
Managed
Hosting
Cloud burst
Managed
Cloud
Faster, Cheaper
Cheaper, better
Cheaper, faster,
Better, Cheaper
Cheaper, better
Better, Cheaper
Cheaper, faster,
Better combinations
Proprietary
Cheaper, faster,
Better combinations

18. | Infrastructure Services
Some definitions – Individual Agents
18
 Our focus on
this session is
on Vendors and
Provider
on-demand
Monetization
strategies (how
to make money)Vendor
Provider
Buyer
Consumer
Broker
Orchestrator
Carrier
Aggregator

19. | Infrastructure Services
BUSINESS MODEL – INDIVIDUAL AGENTS
19
Vendor Provider
P & L
Center
Cost
Center
Product Manager
VP of Sales
VP of Strategy
Portfolio Manager
Product Marketing
Manager
CFO
..
CIO
CTO
Delivery Manager
Operations
Manager
Controller
Program Manager
..
Definition of propose
and actual Sale
of Cloud Products
Delivery & support
of Cloud
Services
Cloud Products Cloud Products
Vendor
Provider
Provider
P&L
Cost Center
Cost Center
In-house Providers in a Vendor Business
External Providers to a Vendor Business
Vendor P&L
Provider
Provider
Cost Center
Cost Center
buyer buyer Buyer
relationship
e.g. Buyer
(internal
Cross
charge)
relationship
e.g.
Consumer
(internal
group cost)
relationship
Key
Provider
Roles
Key
Vendor
Roles

20. | Infrastructure Services
CLOUD DELIVERY MODELS
20
CIEL Framework symbolsF
Vendor
Vendor
Provider
Provider
Multiple Vendor
Cloud Product
External Hosted Provider
Vendor Cloud Product
Own Vendor Hosted
Cloud Product
Vendor
Vendor
Single Vendor
Cloud Product
Vendor
Vendor
Shared Pool
Service
Single
or multiple
Buyer/
Vendor
Provider
Vendor
Provider Single
or multiple
Provider
e.g. Facilitator,
reseller agency
e.g. Broker e.g. Aggregator
e.g. Managed
Complete Cloud
Service
e.g. Community
Cloud
Co-location
Provider
Buyer
Vendor
Single
or multiple
e.g. Dedicated
Capacity Cloud
Service
Provider
Vendor
Vendor Provider
Single
or multiple
Multiple Vendor-Provider
Market
e.g. Orchestrator
reseller
= a real business entity
Are there different management of cost models
for Operations Directors ?
Delivery Model Metrics = Outcome metrics + key Operating metrics stages
QoS

21. | Infrastructure Services
CLOUD DEPLOYMENT MODELS
21
Each of these delivery models will aim to serve a one to many demand pattern but
could be either open shared or closed, dedicated deployments
Secure
Private Cloud
Dedicated
Private Cloud
Multi-tenant
Private Cloud
Multi-tenant
Public Cloud
Open Source Cloud Hybrid Cloud
Highly sensitive
mission critical systems
Secure marketplace & portal
services , B2B, B2C
Shared secure marketplace & portal
services B2C
Non-critical
Public services
Monitor, run and secure the cloud service
Open source can be hosting public and private
environments and subject to OCI CC license agreements
Hybrid cloud is a combination of
private and public clouds
And legacy. It can be a bridge to
other cloud services or as a
platform for managed cloud services
Channel
strategies
Delivery
strategies

22. | Infrastructure Services
SOME DEFINITIONS – STRATEGY FRAMEWORK
22
 Value Proposition – is the offer
value defined by the customer
 Monetization Strategy is
capabilities that generate
revenue in a market
(internal market, external market
to the enterprise)
 Performance metrics are used
to measure how the value is
delivered and expectations met
 Investor expectations include
margin, ROI and capability
Offer
Cloud Product and/or Service
Value
Proposition
Monetization
Strategies
Performance
Metrics
Operating
Model
Investor
Expectations

23. | Infrastructure Services
BUSINESS OFFER PLANNING LIFECYCLES
23
Product
Portfolio
Operating
Portfolio
Investment
Portfolio
Strategic
Portfolio
New Product
Development
Business Case
Markets
Analysis
Decision
Analysis
Metrics
Analysis
Decision trees,
process fit
Benchmarking
Market projections
Investment decisions
How well Products meet
Business expectations ?
Offer
Strategy
What can
be delivered ?
What is
required ?
Demand
Supply

24. | Infrastructure Services
CLOUD PRODUCT & SERVICES –
ON-DEMAND MONETIZATION STRATEGIES
24
Micro economics Macro economics
Identifying factors that affect pricing
and volume availability and
performance in specific markets
Identifying factors that affect overall
performance, structure and behavior
across and within markets.
Operating demand
and supply, bundling
capabilities
Market channel,
business process
and supply chain
capabilities
Capital funding,
contract, IP
methods
capabilities
Demand and supply
between individual agents
consumers, buyers, vendors, providers
and other firms in the industry
Total economic
environment
Local, national, regional
and global economies
Trading
domains
and finance
rules
Income
and Output
Consumption
and
Consumer
Behavior

25. | Infrastructure Services
ON-DEMAND MONETIZATION STRATEGIES
- MICRO ECONOMIC
25
Types of
Monetization
Strategies
Operational
Monetization
Strategies
Operating demand
and supply, bundling
capabilities
Market channel,
business process
and supply chain
capabilities
Capital funding,
contract, IP
methods
capabilities
That can enable monetization of on-demand cloud products and
services
Focus on Cloud
Offer overall
performance
These monetization strategies
are levers that you can pull or push
inside your own company as ways
to generate revenue and
profitability.
There are also other monetization
strategies that consider the
environment and ecosystems that
you are operating in.
These strategies recognize the
behaviors and influences of
networks and connected spaces
Ts & Cs
Monetization
Strategies
Growth
Monetization
Strategies

26. | Infrastructure Services
CASE STUDY 1 – MICRO-ECONOMICS
PUBLISHED USE CASE : MODERNIZATION
26
Modernization
Cloud Service
Crowd
Innovation
Sourcing
Mobile
Device
Fat
(Client)
DeviceLight
(Client)
Device
Cloud Service
Provider
Legacy
Systems
Migration
service
Consumer/
buyer
Company
Virtual
Workflow
Workflow
Modernize Business Processes
Modernize Applications
Modernize Infrastructure
CatalogCloud
Infrastructure
Cloud
Applications
T
S
B
E
Environments
Process Governance
Search and UI
Shop and/or
Build
 Market agent access
and dynamics ?
 End to end Service
Management ?
 Data Management ?
 Vertical integration ?
 Horizontal integration ?
 Business Processes ?
 In-house, external ?
 Competitor agent
behaviors?
 Efficiency , cost
effectiveness ?
Case study Source: The Open Group

27. | Infrastructure Services
ON-DEMAND MONETIZATION STRATEGIES
- MACRO ECONOMIC
27
Monetization Strategy is capabilities that generate revenue in a market
(internal market, external market to the enterprise)
Types of
Monetization
Strategies
Community
Monetization
Strategies
Channel
Monetization
Strategies
Industry
Standardization
Monetization
Strategies
Community
identity, feedback
Connections
capabilities
Structure
of channels
to markets,
Channel mix
Capabilities
Access
specialization,
reward, consistency
and interoperability
That can enable monetization of on-demand cloud products and
services
Focus on Cloud
Offer overall
performance
These monetization strategies
are more focused on macro
behaviors and scale of monopolies
between participants and
geographic locations.
These exist in physical and virtual
spaces in digital networks.

28. | Infrastructure Services
CASE STUDY 2 – MACRO ECONOMICS
PUBLISHED USE CASE: BUSINESS ACTIVITY REPORTING
 Communities ?
 Channels ?
 Mix of products &
services attractiveness?
 Interactivity ?
 Portability &
Interoperability ?
 Emerging & growth
markets ?
 Differentiators ?
 Barriers ?
 Process abstraction,
flexibility , agility,
workloads
28
Composite
Report
Builder
Report
Service
“Shop”
Composite
Report
Buinder
Cloud
Aggregate
Report
Store
Operations
Stakeholders
Finance
Stakeholders
General
Inquries
Monetize
the
service
Interaction
based on
common
reporting
views
Reporting via
direct API
services or
throughaggre
gation
T
S
B
E
Cross-Company
Organizational
Units
Business Activity
Reporting Cloud
Service
Stakeholder
Community
External
Internet
inquiries
GovernanceGroup
Feedback
Feedback
Resources,
Servers,
Storage
Case study Source: The Open Group

29. | Infrastructure Services
ON-DEMAND MONETIZATION FRAMEWORK
29
On-demand Monetization Strategies
Differentiators and competitiveness of on-demand offers need to consider
both micro and macro economic strategies. Defining sustainable pricing
and market channels needs to be aware of how the macro environment works
in on-line digital domains and digital markets
Macro-economic Micro-economic

30. | Infrastructure Services
Micro-economic
On-demand Monetization Strategies
 Operational Monetization strategies
1. Fractionalization
o Divide resources for optimal loading
o Portfolio cost optimization / savings
2. High Productivity
o Leverage resources
o Higher operating margin
3. High Volume
o Mass consumption
o Exploit price-demand curves
4. High Yield
o Complementary usage of resources
o Thin provisioning
5. Niche
o Scare resources / skills / knowledge
o Knowledge leverage
6. Crowdsourcing
o User sourced and developed resources,
ideas, knowledge, skills
o Co-innovation, collaboration
7. Litigation
o Patent leverage
o Trolling, market positioning
 Growth Monetization strategies
1. Horizontal Market expansion
o Geo, size, industry
o Cross-selling, annuity selling
2. Vertical Market expansion
o Supply chain, stakeholders
o Cross-selling, annuity selling
3. Horizontal Service Expansion
o Within one Business Process & IT stack
o Aggregation
4. Vertical Service Expansion
o Adjacent Business Processes with similar
requirements
o Aggregation
 Terms and Conditions Monetization
strategies
1. Innovative billing
o Creative pricing, advertising and charging
o Financial engineering
2. Financing
o Capex sourcing
o Risk allocation

31. | Infrastructure Services
Macro-economic
On-Demand Monetization Strategies
 Community Monetization strategies
1. Community
o Boundary creation, management and
containment
o Group behavior, membership, values,
brand
2. Reward / Feedback
o Incentives and feedback reinforcement
experience
o Preference targeting
 Channel Monetization strategies
1. Channel mix
o Resource / market awareness balance
o Portfolio mix
2. Gateway ownership
o Access methods
o Addressable market
 Industry standardization Monetization
strategies
1. Standardization
o Access specialization
o Product / service grouping consistency
2. Propagation
o Market Portability and interoperability
o Governance domain controls

32. | Infrastructure Services
CLOUD PRODUCTS & SERVICES - METRICS
32
Types of Cloud
Metrics
Operational Growth Ts & Cs
Cloud Vendor
Metrics
P & L
Performance
Cost
Performance
Cloud Provider
Metrics
Focus on Cloud
Offer overall
performance
Focus on Cloud
product revenue
growth, P&L and
competitive, value
for money factors
Focus on Cloud
Delivery performance,
quality of service,
Operating cost,
Sourcing mix (delivery
Portfolio) and
Operating Investment
Budget decisions to
maintain and
build competitive,
value for money factors
Operational
Effectiveness
& Efficiency,
Bundling
Metrics
Sourcing
Pricing & SLA
Effectiveness
(external) –
Buy / Build
Delivery QoS Cost
Sourcing MixTimeliness
SLA/OLA
Flexibility
Metrics
Cost of QualityDemand Mix
(short/long term
demand flow)
Market
and Process
service
Metrics
Summary
Operating
efficiency
metrics
Pricing
and
Contractual,
risk/security/
Compliance value;
IP and Copyright
Metrics
Automation
& New/Maintenance
Investment mix
metrics
Security &
Compliance
Cost of security
Cost of
Compliance
Value of
Compliance
Cloud Buyer
Metrics
Cloud Consumer
Metrics
 Maturity of your organization ?
 Maturity of your partnerships, advisors ?

33. | Infrastructure Services
CASESTUDIES
33

34. | Infrastructure Services
CASE STUDY 1 – CLOUD VENDOR
BUSINESS ACTIVITY REPORTING PRODUCTS & SERVICES
34
Composite
Report
Builder
Report
Service
“Shop”
Composite
Report
Buinder
Cloud
Aggregate
Report
Store
Operations
Stakeholders
Finance
Stakeholders
General
Inquries
Monetize
the
service
Interaction
based on
common
reporting
views
Reporting via
direct API
services or
throughaggre
gation
T
S
B
E
Cross-Company
Organizational
Units
Business Activity
Reporting Cloud
Service
Stakeholder
Community
External
Internet
inquiries
GovernanceGroup
Feedback
Feedback
Resources,
Servers,
Storage
 Buyer/Consumer Value
Proposition –
primary/secondary
• Better, Faster (specialist reporting)
• Faster, Cheaper (standard reporting)
 Micro-economic monetization
strategy
• Primary Operating Monetization strategy
High Productivity
• Secondary Operating Monetization
strategy
High Volume
• Growth Monetization strategy
Horizontal Service integration
Vertical Market integration
 Macro-economic monetization
strategy
• Communities
Company Platform users
External Partner crowd sourcing
• Channels
Public Cloud sourcing
• Standards
Industry nice specialization

35. | Infrastructure Services
CASE STUDY 2 – CLOUD BROKER / PROVIDER : MODERNIZATION
SERVICE
35
Modernization
Cloud Service
Crowd
Innovation
Sourcing
Mobile
Device
Fat
(Client)
DeviceLight
(Client)
Device
Cloud Service
Provider
Legacy
Systems
Migration
service
Consumer/
buyer
Company
Virtual
Workflow
Workflow
Modernize Business Processes
Modernize Applications
Modernize Infrastructure
CatalogCloud
Infrastructure
Cloud
Applications
T
S
B
E
Environments
Process Governance
Search and UI
Shop and/or
Build
 Buyer/Consumer Value
Proposition- primary /
secondary
• Faster, Better
• Faster, Cheaper
 Micro-economic monetization
strategy
• Primary Operating Monetization strategy
Fractionalization
• Secondary Operating Monetization
strategy
Niche
• Growth Monetization strategy
Vertical Service integration
 Macro-economic monetization
strategy
• Communities
Company Platform users
External Partner crowd sourcing
• Channels
Public Cloud sourcing
• Standards
Industry nice specialization
Technology OS specialization ..

36. | Infrastructure Services
CASE STUDY 3 : MULTI-NATIONAL
PHARMACEUTICAL COMPANY
36
Client - Needs
• Target shared services – Medical trials web service. Currently
many trials and systems – wanted a consistent
group brand and shared service.
• SMBs attacking their core markets.
Small competitors could use 3rd party cloud them selves to develop
Medical services and sell, deliver direct into markets held by Client.
Client had invested millions in IT infrastructure to vertically integrate
to these markets but this was increasingly
no-longer was a differentiator.
• Business by-passing own central and divisional IT
departments.
Business unit IT departments and business people directly sourcing
and provisioning IT from 3rd party cloud vendors as a service.
• Inflight Cloud Pilots.
With strategic technology and strategy partners and own Client IT
Department.
Strategic Pilots – various virtualization technologies, benchmarking
and public/private cloud options.
Solutions - Needs
Selecting the right Cloud Deployment
for Workloads
Assessments and Advisory Support
Single Consistent Cloud Vision and Roadmap
ROI Score cards
Risk Assessment Reference Models
Portfolio
Workload
planning
Vision Operating
Model
Roadmap
Private Cloud Pilots, support Cloud Services
FDA / Industry
Certification &
Compliance
Organizational
Change
Management
Channel
Service
Strategies
Demand
Patterns
Supply
Patterns
Analysis
Security ,
Performance
Reliability

37. | Infrastructure Services
CASE STUDY 3 : MULTI-NATIONAL
PHARMACEUTICAL COMPANY
37
Barriers / Levers
Differentiators
Buyer /Consumer ROI Metrics

38. | Infrastructure Services
CONCLUSIONS
38

39. | Infrastructure Services
CLOUD MONETIZATION FRAMEWORK
ON-DEMAND PRODUCTS & SERVICES
39
Micro-economics
monetization strategies
Macro-economics
monetization strategies
Select your
Value Proposition
Select yourSelect your
1
2 3
Select your
Business Operating Metrics
5
Contractual/
non-contractual
Metrics
1 /4
Target Growth Markets Macro-economic
Value Propositions
Micro-economic
Value Propositions
Differentiation
Faster, better, cheaper
Buyers / Consumers Vendors / Providers
Select your
Catalog
Non-
Catalog
Off the menuOn the menu

40. | Infrastructure Services
MAKING CLOUD WORK - STANDARDS AND RESOLUTIONS
- STILL EVOLVING
40
Matching capabilities
Buyer / Consumer LifecyclesVendor / Provider Lifecycles
Catalog
Non-
Catalog
Off the menuOn the menu
Metrics
Value
Proposition
Monetization
Strategies
Negotiating Service
Provision
Purchasing processesSolution Development processes
Ecosystem choices , standards
Level of Maturity,
standards, automation
Assurance, security

41. | Infrastructure Services
UNDERSTANDING CLOUD ECOSYSTEMS
41
Design
Affiliates
Affiliates ...
Distribution
Market
Market
Sources
Government /
Federal rules – e.g.
Sales Tax
Process
automation
S
C
T
B
Business Network
Market Channels
Affiliate, business
Network
Virtual Organization
Social Organization
Super Information
Process
automation
Metadata and Cloud
Products and Services
Cloud Ecosystem
Industry,
Business &
Social
Networks
Physical &
Virtual
Business
New
channels, mix
Standards, Devices, Augmentation
Time SustainabilityPlace Feedback

42. | Infrastructure Services
Virtual
Business
Your opinion
New
channels, mix
Design
Affiliates
Affiliates ...
Distribution
Market
Market
Sources
Government /
Federal rules – e.g.
Sales Tax
Process
automation
S
C
T
B
Business Network
Market Channels
Affiliate, business
Network
Virtual Organization
Social Organization
Super Information
Process
automation
Metadata and Cloud
Products and Services
Cloud Ecosystem
A modern economy
42
 Markets and
communities
 Cyber attacks
 Knowledge
 Innovation
 Green sustainability
 National and global
infrastructures
 National interests
 Personal interests
 …

43. | Infrastructure Services
THANK YOU
43

44. | Infrastructure Services
SUMMARY
 Identify how to target growth markets and value propositions for
cloud business models
 Introduce a monetization strategies framework for targeting
successful ROI from cloud computing
 Identify real examples of business models to take existing traditional
and cloud services towards improved business performance and
cash-flow
44

45. | Infrastructure Services
SYNOPSIS
 Many businesses today are faced with the challenge of getting effective ROI from cloud computing. The cloud changes the
way investment and consumption models work and has upended many traditional hosting and purchasing methods towards
self service and on demand business services. It was also become a real issue in the wider picture of growth in
international competitive marketplaces, governmental legislation and citizen security.
 This session will identify real examples of how customers and providers of cloud services can target better growth and ROI
from cloud computing by positioning and defining their operating model and value strategy. Specific issues and techniques
described in the session will include methods to visualize and identify what types of business models are effective in
growing cloud computing sales and demand in growth and traditional markets. This will draw upon new modeling
techniques for ecosystems and a new taxonomy for classifying key decisions for cloud business models. The session will
then introduce ways to define value propositions for cloud services in those target markets and customers and provide a
new portfolio planning framework to select and drive monetization strategies for effective ROI cash flow. Throughout the
session there will be references to real examples of cloud business models to support the guidelines for successful cloud
service business models. The work is based on actual first-hand company experience and practical developments from The
Open Group Cloud Computing Work Group led by Mark Skilton and Penelope Everall Gordon.
 Session Takeaways
• Identifies how to target growth markets and value propositions for cloud business models
• Introduces a monetization strategies framework for targeting successful ROI from cloud computing
• Identifies real examples of business models to take existing traditional and cloud services towards improved business performance and
cash-flow
The views are of the author and not of the current, previous or future employers.
http://cloudcomputingexpo.com/event/session/1333