Slides from Morgan Hill presentation Tayor Wessing Cambridge

1. 1 Cloud Computing Seminar Cambridge 1st February 2011 Using The Public Cloud To Reduce Cost Morgan Hill Consultants Ltd 12 Melcombe Place London NW1 6JJ +44 (0)203 174 0393 www.morganhill.co.uk

2. Some Views on Cloud Computing 2 So what is it all about?

3. Terms You Will Come Across 3 There is overlap between these but essentially there are three terms in use today: SaaS Software as a Service eg. Salesforce PaaS Platform as a Service eg: Microsoft Azure IaaS Infrastructure as a Service eg: AWS, Amazon Web Services What is the big change from what we used to have?

5. Cost is actionable, it can be compared and if it is too much you can go somewhere else

6. You buy what you need, not what you might need

7. Customer loyalty is earned, if you don’t like the experience you go somewhere else next time. You are not usually locked into any single retailer. Now consider this approach in an IT environment.

8. AWS Rate Card 5 Here are the clear and transparent prices for Amazon EC2 (elastic compute) servers. How does an organisation take advantage of this transparency and retail approach?

9. Organisational Information 6 The information available to most organisations is not usually in a form that lends itself to getting the most from this level of cost transparency. What other barriers might exist?

11. no - difficult to be clear about what all the real costs are

12. Cost is actionable

13. no - subject to lock in contracts with vendors

14. no – subject to depreciation run off

15. Customer loyalty is earned, if you don’t like the experience you go somewhere else next time

16. no – subject to lock in contracts with vendors

17. no – subject to technical lock in eg. “we are a Microsoft shop here” Nearly all large IT vendors try to lock their customers in using contracts or technology. So how does the organisation take advantage of a retailer’s approach to IT?

19. See where to apply that change

20. Track costs to ensure we are at a “market rate”

21. Hold vendors to account

22. Control organisational demand by showing the real cost of services consumed Cost transparency used to be hard to achieve. When this is done the financial benefits of some cloud services will be much easier to see and then achieve. So how do we make costs transparent?

23. Cost Transparency 9 We need an ability to describe the real costs of the services provided. With this information we have the means to take action.

24. Making Cost Actionable 10 When costs are actionable then it is easier to consider the applications of new strategies and delivery models. The example below is based on our experience of using this approach to reduce IT opex by 11% with no degradation of service. So where does the AWS cloud help to reduce these costs?

26. Storage, a wider choice of storage devices some very in-expensive

27. WAN, removal of high cost fibre links for in house redundancy

28. Buildings, release of lease costs for “dark site”

29. Utilities and security, release of buildings related costs

31. Removed capex requirement for 9 regional data centre deployments of hardware

32. Pan European central application 2, provisioned in the cloud

33. Switch from proprietary database on Unix to open source database on Linux in the cloud

35. It is around a retailer mentality towards customers and costs, this means cost transparency and paying for what you actually need

36. This is often in contrast to the approach of typical large IT vendors

37. To benefit it is necessary to have effective cost transparency over existing services

38. This is much easier to achieve now than in the past

39. Once achieved then a range of options exist to reduce cost an important one of which is cloud based Infrastructure as a service.