Cloud Computing
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1 Next Generation IT: Next Generation IT: Business in the Cloud Business in the Cloud Presented by: Matti Neustadt Storie Stoel Rives LLP May 17, 2010
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Transcript of Cloud Computing
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Next Generation IT:Next Generation IT:Business in the CloudBusiness in the Cloud
Presented by:
Matti Neustadt StorieStoel Rives LLP
May 17, 2010
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Next Generation InformationNext Generation InformationTechnologyTechnology
• What is Cloud Computing?
• Why is it such a big deal?
• What does the legal department need to know?
• How do we mitigate risks?
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Why?Why?
• The ZETTABYTE
• Available from anystandardized platform.
• No need to hireemployees to providethe specific service.
• Easy access to a widerange of serviceproviders.
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The Cloud Service AgreementThe Cloud Service Agreement
• Pay per Use– User
– Machine
– Hour
– GB
• “Expert” Maintenance
• Always Available*
• Ease of Interface
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The Cloud Service AgreementThe Cloud Service Agreement
• Pay per Use– User
– Machine
– Hour
– GB
• “Expert” Maintenance
• Always Available*
• Ease of Interface
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What is Cloud Computing?What is Cloud Computing?
• The Latest “Business” Books:– Anything on the Internet.
– Storing data remotely
• Wikipedia:– The practice of using a network of remote servers hosted on
the Internet to store, manage, and process data, rather thana local server or personal computer.
• NIST:– Characteristics
– Service Models
– Deployment Models
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What is Cloud Computing?What is Cloud Computing?
• Characteristics:
– on-demand self-service
– broad network access
– resource pooling
– rapid elasticity
– measured service
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What is Cloud Computing?What is Cloud Computing?
• Service Modes– Software as a Service (SaaS)
• Salesforce.com
• Ceridian
– Platform as a Service (PaaS)
• MS Azure
• Google AppEngine
– Infrastructure as a Service (IaaS)
• Rackspace
• GoGrid
• Amazon Web Services
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PublicCloud
What is Cloud Computing?What is Cloud Computing?
HybridCloud Private
Cloud
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I Want One of ThoseI Want One of Those
• Half of large enterprises will rely on public clouds by2015
• Cloud computing is at the “peak of inflatedexpectations”
• Gaps between enterprise software providers andcloud computing is closing
• If you’re not on the cloud now, you will be soon.
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Why?Why?
VIDEO CLIP
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Top ConcernsTop Concerns -- BusinessBusiness
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Legal ConcernsLegal Concerns• Data Security
• Privacy
• Redundancy/Back-up
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More Legal Concerns.More Legal Concerns.
• Fewer clickwrap and browsewrap agreements?
• More complex multi-tiered service + licenseagreements.– Configuration
– Licensing
– Maintenance and Support
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Legal/Business ConcernsLegal/Business Concerns
• “Perpetual Revenue” model
• Integration costs
• Dot.com Part II ?– Engage before service providers are chosen.
– Partner with IT/IS and not just procurement
• Licensor/Service Provider Bankruptcy– Data storage
– Executory contracts
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The Cloud Services AgreementThe Cloud Services Agreement
• The Cloud Services Agreement:– Qualifies the characteristics of the model.
– Specifies the deployment model parameters andresponsibilities.
– Defines the service parameters and expectations (SaaS,PaaS, Iaas).
– Provides a clear cost structure for all development,integration, and maintenance activities.
– Appropriately addresses responsibility for data security.
– Places the burden of each activity on the party best suited tohandle it.
– Considers the unlikely and unpleasant.
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Key TakeKey Take--AwaysAways
• Engage Early– Procurement
– IT
• Define what each of the five Characteristics mean toyour organization in terms of Quality and Warrantystatements.
• Fear only what is appropriate.
• Choose the Right Service Provider
• Own Your Data and Get It Back
