"The transition of companies to cloud-based will be quicker for some and slower for others depending on their individual circumstances, But the change will happen."

1. Moving to the Cloud
“When and Where”
Reference: Business in the Cloud, - "WHAT EVERY BUSINESS NEEDS TO KNOW ABOUT CLOUD COMPUTING”
By : Michael Hugos & Derek Hulitzky
Place photo here
1
Sartaj Fatima
Lecturer,
Mohammed Sajjad Ali
I.T Infrastructure Manager

2.  A Business Strategy Based on Agility.
 Using the Cloud for Business Advantage.
 Business Applications with the Greatest Potential.
 Risk Considerations with the Cloud.
 Cloud Cost Considerations.
 Case Study: Selling ‘‘Designer Chocolates’’
“The transition of companies to cloud-based will be quicker for some and slower for
others depending on their individual circumstances. But the change will happen..”
Michael Hugos & Derek Hulitzky
Contents :
2
Moving to the Cloud “When and Where”

3.  A Business Strategy Based on Agility
On one hand, cloud computing can be considered primarily as a cost-saving
technology that's used here and there on cost-cutting projects and for quick fixes to
provide point solutions to specific operational problems.
On the other hand, cloud computing can be understood in the context of an overall
business strategy based on agility and responsiveness. Cloud computing certainly
provides cost savings in some situations, but cost savings is not the most important
benefit.
The real value of cloud computing is the way in which it can be used to support an
overall strategy designed to create agility for the business.
3
Moving to the Cloud “When and Where”

4. An Example of Business Agility
Here is a case in point. Suppose a company, Grow More Corporation, spots an opportunity to
leverage its existing expertise and supplier relationships to launch a new product line for a market
adjacent to its traditional spaces. In order to do this, the company wants to set up a new business
unit 'with branch offices in key geographical locations.
It wants to locate sales offices in these areas and wants to support the sales staff with a customer
relationship management (CRM) system that enables them to prospect for customers, create
presentations and proposals, and follow up with prospective customers in a timely and organized
manner. Grow More Corporation also wants to collect sales and prospecting information from all the
regional offices and store it in a single database at headquarters to enable overall reporting and
tracking of sales and business development activities.
In the old days, this would have been more complicated. Managers of the new start-up business
unit would have submitted a support request to the company IT group. The IT group would then
send out a business analyst to evaluate the request and study the needs of the new business unit.
When the funding and IT resources eventually became available, there would be a process of
designing and developing the needed software or evaluating possible packaged software solutions.
4
Moving to the Cloud “When and Where”

5. Moving to the Cloud “When and Where”
Implications of Cloud-Enabled Business Agility
Cloud computing has great cost cutting potential in certain situations, but it's important to keep
the larger business strategy in mind. The agility benefit's far outweigh the purely cost-saving
benefits.
Using cloud technology to enable new business formation and new product development
creates newly found speed and opportunity for multinational small and medium businesses
(SMBs).
Today, opening new country sales offices simply means adding local people to use a cloud-
based CRM package and a cloud-based teleconferencing system. Specialists at company
headquarters can than back up sales people with in-depth technical support without having to fly
people around the world to meet with clients.

6. Moving to the Cloud “When and Where”
 Using the Cloud for Business Advantage
Companies are now at the point where they need to move beyond an internal focus
directed at maximizing use of IT resources to an external focus on supporting
collaboration and new product development through use of cloud computing.
Cloud computing offers significant advantages in its low start-up costs and quick
delivery of computing resources, as well as its pay-as-you-go cost structure. In
addition, it offers ease of management, scalability of systems as needs grow, and
device and location independence so people can access these systems from many
different devices from a PC to a virtualized desktop to an iPad to a smart phone like
a Blackberry m iPhone.
And finally, cloud computing enables rapid innovation in companies to respond to
evolving markets.

7. Moving to the Cloud “When and Where”
 Business Applications with the Greatest Potential
If your company is an established business with an existing infra-structure of in-
house systems, then good candidates for potential cloud computing are
environment~ involving:
. Stand-alone applications with a low business risk if something happens and the
system goes down, or if the system data were compromised or stolen.
. Applications that are expected to have highly volatile and Hard to-predict
workloads.
. Situations requiring collaboration and information sharing with an extended value
chain business partners.
. Applications where is a need to perform periodic data analysis on high volumes
of data.
. A platform to try out scenarios quickly and at low cost, to field test a new
application system, or to create test and development environments for building new
systems.
. Situations where there is a need to conserve capital expenditures.

8. Moving to the Cloud “When and Where”
Clouds also make sense where business is conducted based on shared data and where
rapid feedback is needed. An example is a health care company that wants to share data
on patient care and outcomes with a network of pharmaceutical companies and medical
service providers.
The health care company can make the data anonymous, blanking out the names of
patients and then loading the data into a cloud-based system where all relevant parties
can access the data and apply cloud-based analytics to sift through the data for important
patterns and trends.
Many companies are already using cloud solutions (infra-structure-as-a-service [IaaS]
and platform-as-a-service [PaaS]) to quickly provide their in-house application
development groups with testing and development environments. Instead of going
through all the expense and time of purchasing the hardware and software needed to
develop new systems, the development groups of these companies can get what they
need immediately and only pay for it as long as their need lasts.
Cloud service providers like Amazon, Google, Hewlett-Packard, IBM, Microsoft,
Rackspace, and others offer immediate provisioning like this.

9. Moving to the Cloud “When and Where”
 Risk Considerations with the Cloud
System and data security is the most frequently discussed risk since many worry
that data placed in the cloud could be compromised or stolen by third parties. Yet it's
important to view the risks in context of the current state of security that already
exists in many companies.
Most companies face data security issues that, while significant, are defended by
systems less hardened than elaborate defenses of cloud service providers.
Moreover, in-house data center operations are perceived ar. cost centers and, as a
result, are always under pressure to cut cost, which ultimately means that not all of
their security issues are adequately funded or supported.
Ultimately, the greatest security threat to systems and data, whether behind a
corporate firewall or in the cloud, is what’s called ‘‘social engineering’’.

10. Moving to the Cloud “When and Where”
 Cloud Cost Considerations
To analyze a move to the cloud, the cost of using cloud systems is often compared
to the cost of buying and operating the system hardware and software in-house. The
answers generated in the comparison often depend on the depth of the analysis.
On one level, a company can simply identify the rate for renting the use of a virtual
server from a cloud provider and compare that with the cost of buying a real server.
In that case, after a certain number of months, it might appear cheaper for a
company to own and operate that server in-house.
Therefore, if the application system it will power is expected to be used longer than
that certain number or months, it might seem better to build and operate the system
in-house instead of deploying it in the cloud.

11. Moving to the Cloud “When and Where”
. People and electricity. What is the cost of the people in procurement who negotiate
purchase prices and support contracts ?
. What are the costs of the people in IT who operate the equipment ? What are the
costs of the electricity, air conditioning, rent, and operation of the data center where
this equipment is located ?
. System administration and asset tracking. What is the cost of the people who
maintain the system databases and do the system upgrades? What is the cost of the
people who manage the software licenses and hardware leases and who then dispose
of these assets at the end of their useful lifespan ?
. The opportunity cost of not doing other things with the I1wney spent on the above.
Are there other places where you could use that money for better return ? About 70
percent of most corporate IT budgets go to maintenance of existing systems and
infrastructure. By using cloud services, a company might reduce

12. Moving to the Cloud “When and Where”
 A Business Strategy Based on Agility
System and data security is the most frequently discussed risk since many worry
that data placed in the cloud could be compromised or stolen by third parties. Yet it's
important to view the risks in context of the current state of security that already
exists in many companies.
Most companies face data security issues that, while significant, are defended by
systems less hardened than elaborate defenses of cloud service providers.
Moreover, in-house data center operations are perceived ar. cost centers and, as a
result, are always under pressure to cut cost, which ultimately means that not all of
their security issues are adequately funded or supported.
Ultimately, the greatest security threat to systems and data, whether behind a
corporate firewall or in the cloud, is what’s called ‘‘social engineering’’.

13. Moving to the Cloud “When and Where”
 Case Study: Selling "Designer Chocolates”
In this business case, a company makes some well-known chocolate candies and
sells them through a variety of retail channels. While it sells a substantial volume of
candy nationwide, profit margins on candy are squeezed. Smart marketing people in
the company sported a business opportunity to sell "designer chocolates," cookies,
and drinks through cozy storefront locations in upscale neighborhoods.
The company won't sell as much volume of new product in these new venues as
they do through traditional channels, but it will get a much higher profit margin on
what it does sell. It's an opportunity for the company to supplement its traditional
business with a new business that can generate big profits for an unknown and hard
to predict period of time.
Today, technology has advanced such that you can create an agile IT architecture
and leverage it to quickly support this new business venture. Imagine that Figure 5.1
shows what your existing infrastructure looks like. It Was created over the years to
support your traditional manufacturing business.

14. Moving to the Cloud “When and Where”
Case Study: Selling Designer Chocolates
Doing Business in Real Time
 Old-line candy company selling through ERP System traditional
low-margin retail channels.
 People see opportunity 10 sell "designer chocolate" and related
items in cozy storefront setting. Company decides to quickly
market test idea by opening a few stores.
 Need systems support in 90 days!
 Consider total cost of ownership:
lease/buy: sunk costs: scalability: flexibility
 Business agility calls for IT agility...
Figure 5.1 Existing Systems Infrastructure.

15. Moving to the Cloud “When and Where”
A new supply chain database (a data warehouse) could he created using PaaS to store and report on
all the business transactions related to store operations. This would provide the data needed to learn
and continually adjust and improve operating processes of the new business. Figure 5.2 illustrates this
approach.
Figure 5.2 Extending Existing Infrastructure to Support a New Business

16. Moving to the Cloud “When and Where”
These approaches are stable and scalable. They enable an organization to move quickly. Ready or
not, this is what the future of responsive IT infrastructure looks like:
Figure 5.3 Moving New Systems to the Cloud as New Business Grows

17. Hope this is been informative and I would like to thank you for viewing.
17
Moving to the Cloud “When and Where”