Cloud Computing Metrics for Successful Business Architecture and Strategy

1. July 18 2012
Mark Skilton, Global Director, Strategy Office, Global Infrastructure Services
Technical Led, Global Government Cloud Portfolio, GPS
Co-Chair, Cloud Computing Work Group, The Open Group
Member, ISO JC38 UK Mirror
+44 7787 692197
mark.skilton@capgemini.com
Twitter @mskilton
http://uk.linkedin.com/pub/mark-skilton/1/189/968
Cloud Computing Metrics for Successful
Business Architecture and Strategy
v1

2. | Infrastructure Services
Agenda
 This session will introduce current work by Capgemini on Cloud Computing services and adoption
strategies and how Architecture development is evolving to transition Customers and providers towards
on-demand IT and Business Architecture models.
 The work uses current insights and methods from Capgemini and also from Standards Body work
including the Open Group Cloud Computing Work Group.
 The session introduces a framework of how Big Data, Mobility, Social networks and Ubiquitous
Computing is changing the landscape of Business and IT solutions. It positions how Cloud Computing
may fit into these trends and how business and IT need to consider their value case and architecture
choices from customer and provider view points.
 The session concludes with examples of technology and business architecture roadmaps , metrics and
design criteria for cloud or not cloud adoption
Key Takeaways
1. How to establish key services value cases for Cloud Computing
2. How to identify different Computer Architecture Patterns for security, quality and cost performance
advantages and address architecture solution challenges
3. A framework for decision analysis and cloud computing services scenarios covering utility resources,
big data, mobility, social networking and ubiquitous computing
2© 2011 Capgemini. All rights reserved.

3. | Infrastructure Services
Capgemini are pioneers in the Cloud space
© 2012 Capgemini. All rights reserved.
 Internally focussed on back office transactions.
 Strives for cost reduction
 Uses operational performance, standardization
to boost flexibility and agility.
 Seeks sharing/synergies as in „X‟ aaS
 Driven by efficiency and effectiveness of IT
systems
Inside-Out
The evolution of
IT systems
Customers
Suppliers
Partners
Social Website
 Externally focussed on front office activity in the marketplace.
 Customer-centric, joined-up service
 Reduce time, cost and complexity.
 Pay-as-you-go
 Integrate with social and business network, improve customer
engagement to boost outcomes.
 Driven by the service and the business.
Outside-In
The revolution of
business capabilities
Market
IT Application
SecurityBorder
Back Office IT
Cost Reduction and
Process Automation
Front Office IT
Market and Information
Value Producing
Web & Cloud
Services
Innovation in
business models
Inside-Out
Outside-In
From The Cloud: Time for Delivery. The Question is
not “If”, but “How, Where & When”
Andy Mulholland, Capgemini, February 2012
3

4. | Infrastructure Services
Disruption and transformation dominate
the technology landscape
© 2012 Capgemini. All rights reserved.
Disruption Forces
2011 2015
41
Cloud Services
150
63%
18%
19%
65%
28%
8%
40%
54%
11%
39%
CAGR
‘15/’11
Public cloud SI Service provider cloud Client on-premise cloud
Source: Forrester, Everest
SI Service provider cloud
„11
%Total
CAGR
„15/‟11
41% 49%
36% 51%
18% 69%
4% 32%
18% 54%
Dynamic
applications
services
Dynamic
BPO services
Dynamic
infrastructure
services
Total =
$7.5bn
Cloud-based
integration
Buyer preferences are moving to
on-demand, pay-per-use & “as a
Service” models
Market
Development of disruptive
industrialized low-unit cost
business models
Industry
Undifferentiated traditional OS
services are increasingly
commoditized
Services
4

5. | Infrastructure Services
Cloud enabled Ubiquitous Systems
 Devices ubiquity
• New capabilities to use anywhere on any device from table, smartphone
 Information Context Aware
• The ability to collect, metricize , monitor and platform machine to machine M2M, machine
to human M2H telemetry across a wide range of structured, semi-structured and
unstructured data
 Situation Context Aware
• The ability to create new physical and virtual environments with intelligence information
an process context from the level large to the very small.
 Internet of Things
• The ability to multiplex and multiplicity of entities, assets and services spacing beyond
the computing sphere into many other metasystems in social, commercial,
organizational, biological and sustainability system models.
5© 2011 Capgemini. All rights reserved.

6. | Infrastructure Services
Ubiquitous Systems
6© 2011 Capgemini. All rights reserved.

7. | Infrastructure Services
New strategic business planning processes
 Synthesis and model
• How metadata , edge networks and metasystems need to connect across technical, social-societal,
economic, socio-political and biological spheres of influence and
 Simulate & Test
• How “live” systems and feedback have enabled a step change in the immediacy and indirectly
collection and creation a large data set footprints in the scale of Petabytes and exobyte magnitudes.
 Interact
• Ubiquitous methods and devices to span individuals, groups, networks and domains of interaction :
Places, Spaces, Pads, Boards, Tabs, embedded devices and micro and nano technology creating
new experience visualization, metrics and feedback awareness.
7© 2011 Capgemini. All rights reserved.

8. | Infrastructure Services
New strategic business planning processes
8© 2011 Capgemini. All rights reserved.

9. | Infrastructure Services
How do we measure and direct this transformation ?
9© 2011 Capgemini. All rights reserved.
Resellers, VARs, Network Provider, Brokers, Aggregators, Orchestrators,..
Customers,
Consumers,
Buyers
OEM,
Content,
Products
Services

10. | Infrastructure Services
Cloud Consumer Metrics
10© 2011 Capgemini. All rights reserved.
Capital
and
Cash flow
Customers,
Consumers,
Buyers
Building ROI from Cloud – The Open Group Paper
Increase Margin
Optimized Asset
Capabikities
Access to Skills
& Competency
Speed and Rate
of Adoption &
Cost reduction
Optimize Asset
Utilization
Rapid Provision /
Deprovision
Risk and Security
Efficiency
Dynamic Usage

11. | Infrastructure Services
Cloud Consumer Metrics
11© 2011 Capgemini. All rights reserved.
Revenue
and
Growth
Customers,
Consumers,
Buyers
Building ROI from Cloud – The Open Group Paper
Increase Margin
Optimized Asset
Capabikities
Access to Skills
& Competency
Speed and Rate
of Adoption &
Cost reduction
Optimize Asset
Utilization
Rapid Provision /
Deprovision
Risk and Security
Efficiency
Dynamic Usage

12. | Infrastructure Services
Cloud Producer Metrics
12© 2011 Capgemini. All rights reserved.
Operational Efficiency
• Latency of Service provisioning
• Latency of Service delivery
• Speed (Velocity) of Service
provisioning
• Speed (Velocity) of Service
delivery
• Cost of Service Management - per
Product Activity
• Level of Automation – stages, end
to end
• MTBF – Service robustness
• RTO efficiency
• RPO efficiency
Operation
Efficiency
Product Portfolio
Management
Competency
Market Network
Efficiency
Margin
Effectiveness
Asset Service
Efficiency
Security
Efficiency
Legal
Effectiveness
Product Portfolio Management
• Product Granularity – Size of Unit
Price/Cost
• Competitive Price mix – Price benchmark
• Price per SLA point – SLA benchmark
• Strategic Platform Vendor Partner
leverage –
• Intellectual Property Value of Portfolio
• Reseller index of Portfolio
• Technology refresh index
• Openness – Technology standard
containers, APIs use
• License Openness – flexibility, time
granularity
• Transition mix – Support Own , blended,
Legacy
• Technology version mix – support of OS,
Container, API types
Competency
• Staff Skills competency – legacy vs
new skills
• Staff utilization mix – demand
support – legacy versus new
• Own versus 3rd party resource
supply topology
Market Network Efficiency
• Addressable Market size share
• Network integration integrity
ownerships – loose coupling
index – own / 3rd party
• Number of Social Node
vertices connections per
Product / market / Account
• Number of gateway , stores
ownerships – loose coupling
index – own / 3rd party
Margin Effectiveness
• Reoccurring Revenue
• Reoccurring Margin
• Margin scale
• Augmented services
• Down scale
• Cross scale
• Up scale
• Blended
• ARPU – average revenue per
user / account
• ARPM – average revenue
per market / account
• Churn – customer / account
retention
Asset Service Efficiency
• Cost of Asset efficiency
• Hardware cost per unit
• Storage
• Server
• Network
• OS
• Software cost per
component
• Service cost per unit
• Multi-Tenancy efficiency ratio
• Physical versus Virtual asset
efficiency ratio
• Cost of Sustainability, CSR
index
Cloud producer Metrics – Draft The Open Group Paper

13. | Infrastructure Services
Cloud Intermediary Metrics
 Cost of Integration
 Symmetry – balance , diversity
 Contiguity – joined up
 Security and Trust
 Distributed Workload Interoperability Use case
• How a Cloud Computing Workload can be part processed or
distributed across distributed resource pools
 Marketplace Interoperability Use Case
• How a Cloud Computing Service sourced from one Marketplace
case operate in another marketplace.
• The marketplace is defined by the metadata semantics ,
standards
 Platform Equivalence Portability Use case
• How the cloud platform for a service is comparable and the same
if the service was ported to another Cloud Platform Use Case
• Example: the same Application can run or two or more different
Mobile Cell phone Platforms
 Service Equivalence IOP Use Case
• How a cloud service running on a cloud platform can interoperate
with another cloud or non-cloud platform
13© 2011 Capgemini. All rights reserved.
Resellers, VARs, Network Provider, Brokers, Aggregators, Orchestrators,..
Operation
Efficiency
Product Portfolio
Management
Competency
Market Network
Efficiency
Margin
Effectiveness
Asset Service
Efficiency
Security
Efficiency
Legal
Effectiveness
Increase Margin
Optimized Asset
Capabikities
Access to Skills
& Competency
Speed and Rate
of Adoption &
Cost reduction
Optimize Asset
Utilization
Rapid Provision /
Deprovision
Risk and Security
Efficiency
Dynamic Usage
Consumers Producers
Interoperability & Portability , Cloud Broker – WIP The Open Group Guide and Paper

14. | Infrastructure Services
These ecosystems exist
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15. | Infrastructure Services
These ecosystems exist
15© 2011 Capgemini. All rights reserved.

16. | Infrastructure Services
How will structural changes occur ?
16© 2012 Capgemini All rights reserved.
Integration across
multiple Devices &
Platforms
Multiple development
environments
Multiple Resource
Environments
Integrated
Ecosystem
Group Platforms
ISV Platforms
Vertical Industry Platforms
Microsoft
Salesforce.com
Vmware
EMC
Openstack/
Eucalyptus
Rackspace
Amazon
Rackspace
Hosting
Security Service
Automates
many common
Services
Vertical
Market
Cloud
Platforms
&
Solutions
Integrates
Social Networks
Integrates
Markets
Integrates
Business
processes
Integrated Channels
Integrated multi-cloud
B2B
G2B
B2C

17. | Infrastructure Services
But enabling adoption will
need Standards Governance
Requirements
17

18. | Infrastructure Services
How to identify the Business Portfolio Fit
 Cloud enables solutions fit across the whole enterprise portfolio, not
just commoditization
Cloudslam2012 Mark Skilton May 2012
18© 2012 Capgemini. All rights reserved.
Cloud Enabled
Enterprise
PortfolioRightcloud TM

19. | Infrastructure Services
Where and When to accelerate the use of Cloud
enabled on-demand Products and Services
19© 2012 Capgemini. All rights reserved.

20. | Infrastructure Services
Transition to on demand Business Architectural
models
20© 2012 Capgemini. All rights reserved.

21. | Infrastructure Services
CIEL Cloud Interactive Ecosystem Language
21© 2011 Capgemini. All rights reserved.
Development with The Open Group, Cloud Computing Work Group

22. | Infrastructure Services
“Night in the Clouds”- Cloud Security Case study
CIEL Cloud Interactive Ecosystem Language
22© 2011 Capgemini. All rights reserved.
CIEL Concepts and Metadata – Draft The Open Group Paper

23. | Infrastructure Services
Conclusions
23© 2012 Capgemini . All rights reserved.
Infrastructure has moved into an enabling architecture across
“multi platforms”. Many vendors I‟m seeing in the market are differentiating
on this. By that we can run on many different devices and OS‟s. This leads
to Multiple Platform capabilities (Windows, Linux, Proprietary etc)
Many developments are occurring in Standards and modularization of
hardware devices and Software services such as virtualization and SaaS.
Systems Integration is becoming converged networks , converged servers,
converged storage, converged, apps, converged processes. Systems
Integration becomes more complex if moving across data and services
between multiple providers and services. Service Orchestration is the
convergence hub to engage different needs of technology in a stepwise
migration. Business Infrastructure is this, infrastructure to enable business
(not just IT)
Enabling Business to
interact and evolve
Enabling Business to
migrate and transform
Many commercial and
social collaborations
are across multiple devices
and platforms
Complexity in many
services, interfaces
an technology standards.
Traditional On-Premise
Enterprise Technology
can not deliver solutions
into todays ecosystem
How to get growth in the
ecosystem through channels
and User Experience
is underpinned by agile
infrastructure
Many customers and providers are seeking how to get growth in their
ecosystem through channels and better user experience.
Being able to understand the products and catalogs to enable on-demand
rapid services is enabled through a Service Orchestrator framework that
managed core ecosystems services such as security, provisioning, on-
boarding, metering , service levels, performance, innovation and integration.
Enabling Business to
grow and compete
Business aims challenges Technology Context
Many organizations by end 2012 will have multiple Cloud
services on and off premise (Gartner)

24. www.capgemini.com
The information contained in this presentation is proprietary. ©2012 Capgemini. All rights reserved