2010-03_TMP UK to capital investment. capital to opposed as budget, operating flexible more a from financed are that and governed, well and secure robust, are that solutions Infostructure new to migrate and evaluate organizations helping are Assembly) Services as (such concepts new addition, In adopters. of number the in also and available are that services of breadth the in rapidly—both growing and stay to here are enables, it that Services Cloud the and Computing Cloud that is clear is What model? delivery services IT the change radically will that ‘revolution’ promised the Cloud is So provider. service of traditional instead enabler, business atrue as business to the closer CIO the to bring catalyst the provide and organization to the of benefits awealth bring Cloud can Cloud. However, the with associated risks and benefits the see not clearly do CxOs most aresult, as Cloud, and of the subject the around confusion ledto has This of . benefits and purpose terminology, of the of interpretations range diverse a created definition, agreed of an lack the with along has, industry the within of alliances array This chain. value and landscape IT entire the for now covers Cloud,position which and to prepare formed been have Alliances Cloud offerings. own their developed have telcooperators and players pure the industry, IT the in major players the All margins that previously could not be explored. explored. notbe could previously that margins at opportunities pursue and fast to differentiate organizations enables This prices. cost-effective very at and instantly, almost available capacity, flexible infinitely IT industry—promising the in revolution ofafundamental advent the signals Cloud to the Cloud Simplify Your Journey also began to began be provided also a as utility. and networks (theservers Internet) late In the 1990s core and early 2000s, infrastructure. and hardware the maintaining and supporting to understanding, resources devoting than rather provided being were levels service correct the that on ensuring focus therefore could provider. telecom of Customers the responsibility the was routed—that were communications how the or know to notunderstand need did Cloud, they of the boundary at the ceased responsibility their since and scale, of fromeconomies benefited Thecustomer multiple customers. with infrastructure physical available the to share them (VPNs)—enabling Networks Private Virtual to-point point- expensive replaced companies Telecom resource. infrastructure anetworking adoption of Cloud—as first the to see started we that 1990s the utility.” not until But it was apublic as organized be someday “computation may that predicted to 1960, McCarthy John when back traced be can Computing of concept Cloud The underlying Cloud of Origins The Computing. Cloud to migration their during adopt may organizations that strategies the highlighting and face, organizations that issues non-technical and technical specifically—discussing Computing Cloud of impacts the and value the clarifies document This the way we see it see we way the Services Assembly It was at this point that Cloud Defining Cloud describes bringing Computing and Cloud Services (as we In simple terms, Cloud could be know them today) were born, with together best-in-class described as delivering IT services companies like Amazon, . on a subscription basis that can be SaaS providers on an com and using the term accessed from any Internet connection integration platform, ‘Cloud’ to describe how computing and offering customers the benefit of services could be delivered to multiple economies of scale. allowing them to customers simultaneously, with the be purchased in a only boundaries being the Internet There are five key attributes that compliant way by IT, connection at their desk or the define Cloud: socket on the wall. yet offered to business 1. Offered ‘’—and ready to use; users as flexible, The key technological enabler for Cloud has been the advent and customizable Enterprise 2. Rapidly scalable—available on more recent rapid adoption of demand, with the ability to add or TM Application Stores . virtualization technologies. They remove resources as required; decouple the one-to-one relationship between applications and hardware, 3. Shared—multiple customers with grid computing enabling large sharing the same resources and numbers of servers to be banded underlying infrastructure; together. Services can be easily 4. Pay-per-use—a metered service and automatically provisioned that can be provided through on-demand from this virtualized different pricing plans; set of physical resources. The high utilization rate of these servers 5. Web-enabled—provided using keeps cost down and makes the Internet-based technologies. model economically possible, while Available Cloud Services innovative measurement and charging mechanisms have allowed the There are a wide range of Cloud significant cost savings to be passed Computing and Cloud Services on to customers. In addition, the options available, from very simple increase in Internet connection speeds consumer applications such as Twitter has enabled larger amounts of content or Google Mail, to the full range of to be sent to distant locations at low business applications, including CRM, cost. Now, for many organizations, ERP and HR solutions. Because of this Cloud Computing and Cloud Services wide range of options, organizations are viable and attractive options. can adopt Cloud across their entire IT landscape. To assist in trying to categorize these services, Cloud has been sub-divided in to three levels, which constitute ‘The Cloud Stack’—from visible , to the platform on which software runs to the often invisible infrastructure (see Figure 1). These can be chosen by users as individual services (a piece of software, for example), or combined to form a fully Cloud-enabled environment.

2 the way we see it

SaaS ACK Cloud Services PaaS

IaaS Cloud Infrastructure as a Service Computing THE CLOUD ST

Figure 1: The Building Blocks of Cloud

1. Software-as-a-Service—SaaS: 2. Platform-as-a-Service—PaaS: 3. Infrastructure-as-a-Service— Corporations access applications Corporations use virtual software IaaS (or Cloud Computing): over a network. These applications, development environments to create Corporations access shared though shared between many and then run their own applications processing, network, storage and customers, are tailored to each on the Cloud. PaaS is particularly other fundamental computing client’s needs and priorities. beneficial, again for many of the resources, and these capabilities The focus being on tailoring the reasons above. However, its other are offered like a commodity over service to the client’s needs rather major advantage is the ability for the Internet. IaaS is attractive in than the service being tailored a CIO to provide a consolidated many instances, including when to the technology. SaaS, like the ‘store’ for development. In many large amounts of compute power other Cloud Services, is being organizations, small departmental are required for short periods adopted to avoid large-scale capital solutions, such as access databases, with little notice, or for temporary expenditure, to provide the ability Excel solutions, etc., are deployed project environments. In addition, for an agile and rapid deployment ‘under the radar’ of the CIO and the many organizations have huge and to pay only for what is needed, IT department. In addition, many amounts of archived data stored when it is needed. It is best used IT departments are simply unable to or backed up to expensive, when there is a demand for a service the seemingly never-ending dedicated systems (whether in- non-bespoke software solution, number of business requests. By house or outsourced). Online for which the demand may not providing a development service storage is an extremely economic be known, be unpredictable and where costs can be controlled and alternative. This model is best seen variable, or needs to be provisioned managed, an IT department can in services provided by Amazon very quickly. Examples: Salesforce. provide the organization with a (via ), Sun, com, BPOS, Netsuite, development environment that can and by solutions provided by the Eloqua (eMarketing), Demandware then be monitored and controlled. VCE alliance (VMware, Cisco, (eCommerce), and Crownpeak. Then, as and when appropriate, and EMC); alternative offers are Google Maps can be seen as some of these applications could delivered by companies such as an application and also as a be transferred to a SaaS solution or 3Tera and Liquid Computing. platform that enables usage in incorporated in an existing software other applications. solution. Examples: , Force.com, , and Yahoo Pipes.

Simplify Your Journey to the Cloud 3 Understanding Which IaaS a group of organizations who Cloud Computing Architecture agree on common parameters and is Right For You membership share a private Cloud. It is important to carefully consider Organizations with sensitive data, or the right environment as part of concerns about other organizations any infrastructure upgrade. There and users they would need to share are three different models, through a public Cloud with, can reap many which Cloud Computing is provided of the benefits of Cloud by building to the customer: their own or buying capacity from a private Cloud provider. Public Cloud: Resources are shared and sold over the Internet among Hybrid Cloud: Mixing different all clients, who share the same Clouds, typically to adjust the level of mega-scale infrastructure. Users can service and security between different purchase a virtual computer and applications. An example of this could pay by the minute; they have no be using a private Cloud for highly sensitive mission-critical applications The term Infostructure knowledge of the computer’s physical location, the hardware that runs and placing less-sensitive applications describes the it, or the other users that share the on a public or community Cloud. The convergence of the hardware they are using. Google, hybrid Cloud will become the most applications portfolio, Salesforce.com and Amazon are efficient model for most organizations, probably the best-known providers combining the flexibility of Cloud the infrastructure and of services delivered over the public with the security of certain data on a the data, as they begin Cloud. Primary client concerns private or community Cloud and the to be provisioned as with using the public Cloud revolve low price of the public Cloud. virtualized services around security, governance and integration. Identifying the business What Benefits Does the Cloud using the Cloud. applications that are suitable, Computing Model Bring? building the Cloud-enabled bridge Cloud Computing is driving an in the existing infrastructure, unprecedented shift in the way IT and and giving the business the the wider organization work together. understanding and confidence to use If harnessed properly, it can enable these services are key success factors. the customers of the IT department to focus on delivering business outcomes Private Cloud: Resources are operated using resources that are easily varied, solely for an organization, although customizable and scalable. they are as flexible as in the public Cloud example above. This usually While most of the industry has takes the form of a third-party hosting been built on a Capital Expenditure provider selling Cloud Services. (CAPEX) model, where organizations In this model, the user knows the invested significantly upfront, location of the hardware and sets the the Cloud model is based on an access rights and security policies; Operating Expenditure (OPEX) purchases the computing capacity model with faster time-to-benefits. on a flexible by-the-minute or by- This change in business model will the-megabyte basis, and can scale affect all parties, but, in particular, requirements up or down. Care the software publishers, hardware should be taken with Private Cloud vendors and systems integrators who in understanding the Total Cost of will need to adapt the fastest. By Ownership, since the opportunity radically changing an organization’s to share the infrastructure costs, on- infrastructure, Cloud can help going maintenance and support with organizations bring new products several customers is lost. and new markets to consumers faster, shorten time-to-market, lower TCO, A slight modification of this model and enable a better user experience. is the Community Cloud, where

4 the way we see it

At its core, Cloud offers For example, this can help ensure no standardization, flexibility, and service degradation during busy peak business model innovation, periods such as Christmas. changing the competitive landscape Security is often raised as a concern within an industry and lowering when discussing the adoption barriers to new entrants on a global of Cloud Computing. The Cloud scale. For example, setting up the providers’ business is dependent infrastructure required to launch on good security, as any failure a new business is easy with Cloud could lead to loss of confidence and Computing—all that is needed is a customers en-masse. As a result, the fast, stable Internet connection and security access and data protection you can have a full suite of business measures in place with Cloud services almost instantly. More risk providers typically far exceed those can be taken, owing to lower cost, measures that a single company and as the business case need not be could deploy. as rigorous, this unleashes the power of innovation. These benefits clearly imply changes to the business models and Cloud Computing can speed up relationships that organizations have transformation and performance with their outsourcing partners. gaps that require support from IT Where it is critical that the business services. Therefore, Cloud Computing is in full control of application and may allow for rapid corporation data location, and the physical reconfiguration at times when ability to access hardware and strict companies need to be able to adapt SLAs, it is likely that traditional their organizations and delivery outsourcing models will continue to models globally to meet market play a strong role in providing these evolutions and change. services more cost-effectively than For example, launching a new on-premise solutions. website for a product, for which However, two things are likely to demand is not yet known, can be change. First of all, if the business done very quickly and cheaply using is able to separate out applications Cloud, thus reducing the usual and data that do not have the strict product-to-market cycle time. requirements described above, Cloud Computing can significantly they can take advantage of the cost reduce IT costs by providing access benefits available from moving some to an on-demand pool of shared applications and/or data to the Cloud. resources, providing significant Secondly, outsourcing providers economies of scale. Furthermore, will increasingly be prepared to the pay-per-use model lowers the adopt some of the utility-charging initial investment and the associated characteristics as Cloud Services, CAPEX and reduces the risk of allowing greater flexibility in OPEX. over-investment. For example, most traditional compute environments are built to handle peak demand. Cloud allows the peaks to be purchased on-demand, with only the time or capacity actually used being charged for. Due to Cloud elasticity and automatic scaling, it offers an optimal user experience with minimal impact on infrastructure, and no loss of performance if a site is visited often.

Simplify Your Journey to the Cloud 5 The Risks and Pitfalls of Some key issues to consider include: their own organization. Also, extra Cloud Computing agreements are needed to make it Provider Lock-In: It is important possible to apply the laws about There are many risks and pitfalls— to understand the duration of the personal and financial information both real and perceived—on contracts you have in place. Plan an exit to the Cloud provider. A detailed the journey to the Cloud. These strategy from the start and commence understanding of the provider’s are largely associated with not negotiations long before expiry of the Cloud architecture is needed to fully understanding the concept, contract. If you have a set of integrated ensure this is covered, along with a architecting the right solution, services, understand the reliance careful appraisal of information and ensuring that security is appropriate, on each contract. Avoid one service regulatory factors relevant to the governance is in place, and committing you to extending several jurisdiction in which the organization procurement is carefully managed. other contracts. The majority of these pitfalls can operates, or against its own corporate be overcome with the correct While today it is easy to switch guidelines, if more stringent. mobile phone providers, experience and knowledge of both Service Level Agreements: Some unfortunately at present the ease of the technologies involved and the allowance for downtime is routinely switching Cloud providers is still organizational needs, as well as accepted in the contracts with Cloud largely untried, so avoid one-sided education, change and stakeholder providers. If the SLA is not met, it is negotiations and have a plan to engagement—critical elements to difficult to reclaim losses over and switch if necessary. Important here is enable a convincing and effective above a refund of the fees charged strong due-diligence, knowledge, and Cloud Computing solution. by the provider. It is also not usual relationships with the best-in-class to modify standard contractual Cloud Computing providers to ensure arrangements, especially if Cloud their ability is guaranteed before Computing is being purchased by the using the service. As the market business users and not IT. becomes more competitive, we would expect the transition between service Customization and Service Assembly: providers to become easier. The ability to assemble and customize multiple Cloud Services from different Data Security: Having your own providers in a flexible, changeable information, on your own hardware way, while maintaining security, and between your own four walls, backup, and governance mechanisms, provides a level of comfort that also requires specialist skills and one loses in the Cloud. This is not experience. This assembly of services to say that Cloud Computing is will mean that applications using them necessarily insecure, just that new will need to become more ‘loosely considerations need to be taken into coupled’—programmed to act with an account and more modern security integration layer, not the underlying models developed and applied. We hard-coupled piece of hardware. must avoid reliance on firewalls and, as indicated above, consider Backup/Recovery Entrusted to end-to-end security, including Vendor: Information is an important your own internal procedures like asset in every company. Can you password control and maintenance. trust your Cloud provider? What It is also important to highlight that happens with your data if it is hosted data extraction is usually relatively in another country? It is imperative straightforward—often being in the that organizations have agreed and form of a CSV file. So care should be clear processes in place and fully taken with access rights. understand where and how their data is stored. If the data or service is of Compliancy/Regulations: Many significant value, then consider joint regulations prevent using the saving arrangements in the event of a Cloud as-is, for example, the SAS70 major disruption in service. requirements under the Sarbanes- Oxley Act of 2002. SAS70 seeks to Higher long-term cost: If a new ensure that organizations are able product or service that your to prove the validity of the controls organization launches using Cloud in place within a third party service is very successful, some of the stated provider, not just those within cost benefits of Cloud may not apply.

6 the way we see it

In some circumstances it could be By planning carefully before cheaper to have your own . investing, organizations can fully In this case, proving the concept understand the depth and breadth using a fully-scalable architecture of change needed, be clear on the such as Cloud could still be justified. technology chosen and how this will The service can be launched quickly integrate and affect existing systems, and market tested in a low-risk and prepare their organization for way, before a data center is built as their journey to the Cloud. a longer-term solution with a more proven investment case. The Silver Lining Moving from a traditional The principles of Cloud are being architecture to a Cloud-enabled incorporated in many organizations’ architecture requires a new set of IT architectures already, as this skills and processes, with which rapidly-developing and maturing organizations may need help with in market segment is set to become the short-term. It is recommended increasingly relevant and compelling that organizations explore the over the next two to three years. opportunities and test elements Big players have become increasingly of Cloud Computing as soon as interested in the market and possible, to build experience and are spending vast sums on the confidence. In areas such as backup, development of technologies that fit small percentages of peak application this model, which will ensure fast demand and disaster recovery evolutionary development and further solutions can be low-risk areas drive down costs. to start. Over time, it is possible that Cloud Asking the Tough Questions Computing could be provided free of charge in the same way as There is no doubt that Cloud presents has happened for other Internet a significant opportunity, but it technologies, with the real complexity also presents some key questions and cost in the Services Assembly for the organization and especially required to harness this power in a for the CIO, which deserve careful secure, well-governed and relevant consideration and discussion. These way. What is certain is that Cloud may include: will accelerate the next wave of IT ƒƒ Does the enterprise business innovation, which critically will bring model align with the features of IT and business closer together to Cloud Computing? create more aligned, responsive and competitive organizations. ƒƒ What is the size of transformation necessary? ƒƒ What functions should be tested first using the Cloud Computing model? ƒƒ How do we train our IT staff and customers of the IT organization? ƒƒ What is the business case and benefits tracking framework to prove the case for investment to the business and that the return is being realized? ƒƒ Is our estate already consolidated, virtualized and Cloud-ready?

Simplify Your Journey to the Cloud 7 www.capgemini.com/its

About Capgemini and Sogeti The Capgemini Group is one of the world’s foremost providers of consulting, technology and outsourcing services, enabling its clients to transform and perform through the use of technologies. Present in over 30 countries, the Capgemini Group reported 2009 global revenues of EUR 8.4 billion and employs over 90,000 people worldwide. Sogeti, its wholly-owned subsidiary, is a leading provider of local professional services, bringing together more than 20,000 professionals in 15 countries and is present in over 200 locations in Europe, the US and India.

Together, Capgemini and Sogeti have developed innovative, business-driven quality assurance (QA) and testing services, combining best-in-breed testing methodologies (TMap® and TPI®) and the global delivery model, Rightshore®, to help organizations achieve their testing and QA goals. Capgemini and Sogeti have one of the largest dedicated testing practices in the world, with over 6,400 test professionals and a further 11,000 application specialists, notably through a common center of excellence with testing specialists developed in India.

David Boulter Capgemini Sogeti Vice President and Global 11 Rue de Tilsitt 6-8, Rue Duret Infostructure Transformation 75017 Paris 75016 Paris Services Lead: France France [email protected] Phone +33 (0) 1 4754 5000 Phone +33 (0) 1 58 44 55 66 Fax +33 (0) 1 4227 3211 Fax +33 (0) 1 58 44 55 70

Rightshore® is a registered trademark belonging to Capgemini. TMap®, TMap® NEXT, TPI® and TPI® NEXT are registered trademarks of Sogeti. Copyright © 2010 Capgemini and Sogeti. All rights reserved. No part of this document may be modified, deleted or expanded 2010-03_TMP UK by any process or means without prior written permission from Capgemini.