What the future holds? The cloud computing era

Click To Win - 20th September 2012

Michael Clarke

Goldbatt McGuigan / Whisple Cloud Services

Contents

What is Cloud Computing?

How could Cloud Computing impact the NI economy?

Potential Benefits for and Concerns to be addressed by you

Next Steps into a Cloud Services Future

What is Cloud Computing?

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Essential Characteristics:

On-demand self-service

Broad network access

Resource pooling

Rapid elasticity

Measured service

Service Models:

Software as a Service (SaaS)

Platform as a Service (PaaS)

Infrastructure as a Services (IaaS)

Deployment Models:

Private Cloud

Community Cloud

Public cloud

Hybrid cloud

Example Cloud Service Providers – Social (& Business!)

Example Cloud Service Providers - Business

Example Cloud Service Providers - Business

Cloud computing is a profound and evolving paradigm shift that is changing the way ICT services are delivered and one with the potential to transform business opportunities across the economy

Gartner further forecasts that business processing cloud services could grow by 17.2% per annum over 2010/2015, representing significant additional opportunities for NI

Total Public Cloud

SaaS PaaS IaaS0%5%

10%15%20%25%30%35%40%45%50%

18.9%16.3%

13.0%

47.9%

Public Cloud Computing and Service components - Annual growth rate 2010/15

Source: Gartner Forecasts

Cloud computing - driving a global opportunity

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A services market forecast to grow 2.5 times faster than its traditional product and services counterparts

Pioneers of Cloud Computing

Last year Salesforce.com became the first enterprise cloud computing company to achieve $2bn in revenue, with full year revenue (to 31 January 2012) at $2.27bn being a 37% growth over the previous year; Salesforce.com are now poised to deliver the first ever $3bn within this financial year.

Although Amazon do not publish separate revenue figures for Amazon Web Services (AWS), many analysts now believe that annualised revenues for AWS have surpassed $1.2bn and are heading very fast towards the $2bn milestone at an annual growth rate exceeding 50%.

Meanwhile Rackspace Hosting have recently announced their first quarter 2012 results with revenue in the quarter of $301m, a 31% growth over the previous 12 months.

New Era of Technology – Direct and Catalytic Impacts

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Direct impacts - from NI’s ICT industry gaining share of global market:• Existing companies• New businesses• FDI

Catalytic impacts – ‘spillovers’ with the capacity to affect other areas of the economy

Displacement – ‘creative destruction’

Source of significant potential for NI’s economy

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Under high growth scenario that assumes NI cloud computing industry grows in line with the global forecasts, could result in:

• Over 10,200 additional jobs in the NI software & IT services industry (KE definition)

• Direct GVA in the NI software & IT services industry (KE definition) could also reach £1.5bn by 2020, compared to a baseline projection of £0.8bn. 0

5,000

10,000

15,000

20,000

25,000

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Direct employment in software and IT services (knowledge economy definition) under scenarios

Baseline Scenario

Forecast

Source: Oxford Economics

Taking into account the direct, indirect and induced effects across the economy as a whole the impact above the baseline is:

16,200 additional jobs across the economy

£1.2bn of additional GVA across the economy

Potential Benefits for and Concerns to be addressed by you

Reduced costs

Increased agility (competitive advantage)

Allows focus on core business

Flexibility

Reduced risk

World of choice / opportunity

Security and Privacy?

Regulatory / governance?

How available and reliable will resources be?

Data – what is it? What happens if issue? How to recover?

Is my vendor viable? Locked in?

Will I realise the anticipated benefits?

Next Steps Into a Cloud Services Future

CLOUD IS NOT ONE SIZE FITS ALL nor ALL OR NOTHING

Don’t be too hasty (particularly initially)

Undertake a trial

Don’t lose track of the business benefit you are seeking to achieve

Do your sums – consider ALL costs and savings

Always be happy with Security, Privacy and Regulatory position

Cloud Services still need to be managed

ASK FOR HUMAN HELP!

Contact Details:

Michael Clarke www.goldblattmcguigan.com

Goldblatt McGuigan www.whisplecloudservices.com Alfred House19 Alfred StreetBelfastCounty AntrimBT2 8EQ

clarkem@goldmac.com

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