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PMI Silicon Valley Chapter

2013 Annual Symposium

Dark Cloud: Managing the Risks of Online Applications

Laura Klemme, MS, PMP, CSM

Madhurika Dev, MS, PMP

Jacky Hood

Pat Furagganan

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Agenda

• Perception of Risk

• Risk Assessment

• Case Study

• Business Models of Cloud Services

• Examples of Cloud Services

• Conclusion

– Panel Discussion

– Q & A

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Perception of Risk

• Disruptions in projects

– Every project has them

– Need for Project Manager

– Need for Agile processes

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Perception

• Risk management of a

disaster

• Fatal

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Perception

• Fragile

• Static

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Perception

• Dynamic

• Fluid

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Risk Assessment

• Review impact and probability of each risk

• Determine exposure with 5 levels

– Minimal

– Low

– Moderate

– High

– Critical

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Risk Assessment

• Factors

– Financial

– Organization and Culture

– Compliance

– Disaster Recovery

– System Quality

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Risk Assessment Matrix

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Are we done yet?

• Track deliverables

• Close project

• Think again!

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“The best laid plans of mice and men

often go awry.” Robert Burns, 1785

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Case Study – Software Development

• Adobe Flex

• Risk Assessment

• Solid Company

• Technology Leader

• Enough?

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Risk Assessment Matrix for Case Study

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Adobe Flex to Apache Flex

• Change in focus

• Open source

• Slow hand off

• Lack of communication

• Lack of vision

• Perspective?

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Perception

• Dynamic

• Fluid

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Agile

• Risk Assessment

• Technical Debt

• Adapt

• Iterate

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Resilience

• Herbert Simon “The Architecture of Complexity”

– Watchmakers – Hora and Tempus

– Modular sub-assemblies

• Multiple venders

• Redundant venders

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General Guidelines

• Risk Management

• Case Study – Lessons Learned

• Business models of cloud vendors reduce risk

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Business Models of Cloud-based Services

Companies need to do proper planning to:

• Choose the right cloud solution

• Choose the right solution provider

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Business Models of Cloud-based services

Companies can capitalize on the benefits offered by the cloud in the

form of:

• reduced costs

• capital expenditures

• increased operational efficiencies

• scalability

• flexibility

• time to market

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Business Models

• Brokerage Model

• Advertising Model

• Subscription Model

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Brokerage Model

• Brokers bring buyers and sellers together

• A broker charges a fee or commission for each transaction

• Types of Brokerage Models and their examples:

– Market Place Exchange: Orbitz

– Demand Collection System: Priceline.com

– Auction Broker: eBay

– Transaction Broker: PayPal

– Virtual Marketplace: Amazon.com

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Advertising Model

• Extension of traditional media broadcast model

• Broadcaster provides content and services mixed with

advertising messages

• Works best for large volume of highly-specialized viewer traffic

• Types of Advertising Models and examples:

– Portal: Yahoo

– Classifieds: Monster.com, Craigslist

– Query-based paid placement: Google

– Content-Targeted Advertising: Google

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Subscription Model

• Users charged for a service on a daily, monthly, yearly basis

• Subscription fees are incurred irrespective of actual usage rates

• Types of Subscription Models and examples:

– Content Services: Netflix

– Person-to-Person Networking services: LinkedIn

– Internet Services Providers: America Online

– Freemium: Jira, Trello, Wrike -- We will examine these in

detail

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Business Model for Three Cloud-Based PM

Tools

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Jira Overview https://www.atlassian.com/software/jira

• Commercial software developed, sold, and supported by Atlassian,

an Australian company

• Project and Issue tracking software

• 25,000 customers in 122 countries

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Jira Business Model and Prices

• Cloud version: $10/month for 10 users

• Download version: One-time purchase $10/10 users, about $40/user

for medium volumes and $10/user for high volume

• All proceeds from the 10-user versions are donated to Room to

Read, a charity that helps improve education in the developing world

• Add-ons increase the price

• Atlassian provides JIRA for free to open source projects that meet

certain criteria, and organizations that are non-profit, non-

government, non-academic, non-commercial, non-political, and

secular

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Jira Add-ons

• Jira Agile – formerly called Greenhopper

– Available on both cloud and download versions

– Supports both scrum and kanban

– Doubles the lowest price; adds 50% to the others

• Jira Capture – for bug tracking and repair

– Seems to be only for software projects

– Doubles the lowest price; adds 50% to the others

• Gliffy – diagramming tool

– Only available on the cloud version

– Doubles all the prices

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Trello Overview https://trello.com/

• Commercial software developed and supported by Fog Creek Software-

a small, profitable, software company based in New York City

• Collaborative tool to organize projects into boards

• In one glance- what's being worked on, who's working on what, and

where something is in a process

• Good for small projects teams

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Trello Business Model and Prices

• Freemium: Expected to be free forever

• Business Class: Provides extra administrative features for $25 per

month

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Wrike Overview

• Privately held company based in Silicon Valley

• Full-featured and easy-to-use project management system

• Connects all work into a work graph

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Wrike Business Model and Prices http://www.wrike.com/

• Freemium version: 5 users with 2 GB of storage, unlimited

collaborators

• Premium version: $49/month for 5 users with 5 GB of storage,

unlimited collaborators

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Conclusion

• Panel Discussion

• Q and A

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Contact Info

Laura Klemme http://www.linkedin.com/in/lauraklemme

Madhurika Dev http://www.linkedin.com/in/madhurikadev/

Jacky Hood http://tinyurl.com/pm-world and jacky.hood@opendoorsgroup.org

Pat Furagganan www.linkedin.com/in/pfuragganan