Presentation, on Cloud Computing opportunities and issues, given at the GOVIS 2010 AGM

1. Cloud Computing:
Opportunities & Issues
GOVIS 22nd September 2010
Clifton Chan
CROWN COPYRIGHT ©

2. What is Cloud Computing?
http://www.flickr.com/photos/10657705@N003252076269

3. Cloud Computing Nutshell
 Is a way to outsource ICT, with its
own characteristics
• On-demand self-service
• Broad network access
• Resource pooling – multi-tenanted
• Rapid elasticity – scale fast
• Measured service
 Entered into if the benefits outweigh
the total costs and risks

4. Self-service ?
http://www.flickr.com/photos/sinanyuzakli/3631243681

5. Self-service
http://www/flickr/com/photos/tea_time/3942238453/

6. Broad network access
http://www.flickr.com/photos/jurvetson/916142

7. Resource Pooling: multi-tenanted
http://www.flickr.com/photos/kanjiroushi/2459038965

8. Rapid elasticity: scale fast
http://www.flickr.com/photos/jamescridland/613445810

9. Measured service
http://www/flickr/com/photos/tea_time/3942238453/

10. What ‘services’ can I ‘buy’?
http://www.flickr.com/photos/10657705@N003252076269

11. Cloud Services
 Business Process as a Service
• E.g. HR system (legally compliant)
 Software as a Service
• E.g. Email, Social networking, CRM
 Platform as a Service
• E.g. Payments, web site and databases
 Infrastructure as a Service
• E.g. Networks, servers and storage

12. Cloud Computing Recap
 Is a way to outsource ICT, with its
own characteristics
• On-demand self-service
• Broad network access
• Resource pooling – multi-tenanted
• Rapid elasticity – scale fast
• Measured service
 Entered into if the benefits outweigh
the total costs and risks

13. Electricity
www.flickr.com/photos/42198161@N02/3906862993

14. Electricity
Electricity Comment
On-demand self-service Process & connection
?
dependent
Broad network access

Resource pooling 
Rapid elasticity
 Unless you are a smelter
Measured service

 Cloud (like)

15. Mainframe Bureaus
www.flickr.com/photos/pneumatic_transport/354459878

16. Mainframe Bureaus
M/F Bureaus Comment
On-demand self-service Face-to-face

engagement process
Broad network access Need to put the network
?
in, or use dial-up
Resource pooling 
Rapid elasticity Vendor needs to
?
schedule clients
Measured service

 Cloud like – just
 Internet provides the network
 Web 2.0 enables self-service

17. Types of Cloud
Public
Community
Private http://www.flickr.com/photos/10657705@N003252076269

18. The Nutshell (again)
 Is a way to outsource ICT, with its
own characteristics
• On-demand self-service
• Broad network access
• Resource pooling – multi-tenanted
• Rapid elasticity – scale fast
• Measured service
 Entered into if the benefits outweigh
the total costs and risks

19. Self-service
http://www/flickr/com/photos/tea_time/3942238453/

20. Self-service
Rapid deployment
 Uncontrolled proliferation

21. Broad network access
http://www.flickr.com/photos/jurvetson/916142

22. Broad network access
 i.e. the Internet
Deploy and access „anywhere‟
 Totally dependent on the Internet – a
best endeavours network
 Another hole in your corporate
perimeter

23. Resource pooling: multi-tenanted
http://www.flickr.com/photos/kanjiroushi/2459038965

24. Resource pooling: multi-tenanted
 Everything hosted on the cloud
 Vendor manages technology and
operations
Benefit from volumes of scale
Manage service and outcomes
 No customisation
 Vendor dictates upgrades

25. Rapid elasticity: scale fast
http://www.flickr.com/photos/jamescridland/613445810

26. Rapid elasticity: scale fast
No need to provision for peaks
No idle assets – 100% ROI
Less reliance on CapEx

27. Measured service
http://www/flickr/com/photos/tea_time/3942238453/

28. Measured service
Pay for what you use
Pay as you go
Direct linkage between usage and
cost – management tool
Smooth expenditure profile
 Hard to unwind Capex-to-OpEx shift

29. Fad or Trend ?
“Peak of the Gartner Hype Cycle”
Gartner, July 2009

30. And yet ...
flicker twitter TradeMe Google Amazon
App Eng EC2
On-
demand
    
self-service
Broad
network
    
access
Resource
    
pooling
Rapid
elasticity  ?   
Measured
service  Free   

31. Elephant in the room
Obligations
Data Legal
http:// www.flickr.com/photos/mobilestreetlife/4179063482

32. Data Obligations
 Data is outside your corporate
custodianship – maybe off-shore.
 How secure is your data? – total
reliance on vendor
 XaaS – you may not have the right to
access the underlying data
 Data ownership
 Can you meet all of your legal
obligations ?

33. Legal Obligations
 Large cloud computing providers are
multi-nationals
 What contract law applies ?
 What data protection laws apply ?
 What 'lord of the manor' rights exist ?
 Can you meet all of your legal
obligations ?

34. The Nutshell (again)
 Is a way to outsource ICT, with its
own characteristics
• On-demand self-service
• Broad network access
• Resource pooling – multi-tenanted
• Rapid elasticity – scale fast
• Measured service
 Entered into if the benefits outweigh
the total costs and risks

35. Discussion
clifton.chan@ssc.govt.nz