Hybrid Cloud – a wealth of opportunity Stephen Parker, Head of Cloud Strategy, NewLease © 2014 NewLease Pty Ltd 1 What is this thing called Cloud? © 2014 NewLease Pty Ltd 2 Cloud Definitions National Institute of Standards & Technology (http://www.nist.gov/itl/cloud/index.cfm) • Essentials characteristics – On-demand self service (DIY) – Broad network access (anywhere, any tool access) – Resource pooling (multi-tenant, shared resources) – Rapid elasticity (Scale up/down as needed) – Measured service (transparency of utilization) • Service models – SaaS AoSaaS (Any – PaaS – IaaS } old Stuff as a Service!!) Something Old, New, Borrowed & Blue © 2014 NewLease Pty Ltd 3 Analyst Comments • Australia moving to #2 globally in public cloud adoption (2014, Forrester Research) • Global Public Cloud purchase to raise from USD72Bn to USD191Bn between 2014-20 (2014, Forrester Research) • 87% of business either deployed or considering deployment of HR cloud solutions with 18 months (2013, KPMG) • Cloud spend increases at 26.4% CAGR between 20102015 (2014, IDC) Everyone seeing Cloud growth © 2014 NewLease Pty Ltd 4 The 3rd Platform Source: IDC © 2014 NewLease Pty Ltd 5 Why now? © 2014 NewLease Pty Ltd 6 Cloud is part of a wider social Shift from What and How.. to Why “When it absolutely, positively has to be there overnight” People care about the Service & Outcomes © 2014 NewLease Pty Ltd 7 We are at an inflection point Consumer BT Enterprise IT © 2014 NewLease Pty Ltd 8 The fundamental shift – Selling is only the beginning Perpetual everything is geared to close the “sell” Stock • • • • • • • Sales focused Promised value “Margin” portfolio Sales accounting Delivery logistics Price Marketing launch Subscription everything is geared to drive ongoing usage Sell • • • • • • • Service focused Realised value “Value” portfolio Usage accounting Usage reporting Ease of acquisition Total product offer Process, organisation and cultural shift The excellent processes that lead to success in one model becomes the blocker to deliver the other © 2014 NewLease Pty Ltd 9 Use It is a Hybrid World Public Etc etc Private Hybrid IoT Mobile Service Provider Office Home © 2014 NewLease Pty Ltd Business driven benefits. Being Essential not just Interesting 10 But…. © 2014 NewLease Pty Ltd 11 Change is difficult Ignoring it can be worse © 2014 NewLease Pty Ltd 12 There are concerns Vendors Marketplace Customers Concerns are Opportunities © 2014 NewLease Pty Ltd 13 So where is the money? © 2014 NewLease Pty Ltd 14 Cloud Positioning – Risk vs Value 3 2 Business Risk Impossible Cost prohibitive -> > Possible Affordable (what I have (enabling wanted to do and can me to now afford) consider creative ideas) Sweet Spot 1 Custom/Complex -> Commodity (what I do today but for less) Business Value © 2014 NewLease Pty Ltd 15 What’s Hot Business Continuity as a Service Desktop as a Service (UADA) Infrastructure as a Service Security as a Service © 2014 NewLease Pty Ltd Business driven benefits. Being Essential not just Interesting 16 What’s hot today and maybe tomorrow? © 2014 NewLease Pty Ltd 17 Autoscaling Example 3 Business Risk 2 Cost prohibitive -> Affordable Fixed Capacity 1 Scaling with fixed metrics ??? Impossible > Possible Elastic scaling (AI) Custom/Complex -> Commodity Business Value © 2014 NewLease Pty Ltd 19 Where is the Money (History as our Guide) Managed Services Recurring Hardware Devices Integration Networks/ Cabling Services Pipes/Plans Hybrid Business Applications SaaS Security Everywhere Home/car.. Desks/Chairs Customer Journeys - Commitment and Creativity © 2014 NewLease Pty Ltd 20 Have a Plan (please) Infrastructur e Offering Customer Finance Key Partners Key Activities Key Resources Value Proposition Customer Relationships Customer Segments Channels Purpose, Autonomy & Mastery Cost Structure (Dan Pink - motivation) Source: Business Model Generation, Alexander Osterwalder & Yves Pigneur, et al. www.businessmodelgeneration.com Revenue Stream (Business Model Canvas) Why? COSTS How? VALUE INNOVATION What? (Purple Cow: Transform Your Business by Being Remarkable, Seth Godin) BUYER VALUE (Blue Ocean Strategy) (Simon Sinek – inspire action) Document your plan & share it © 2014 NewLease Pty Ltd 21 Useful Links • • • • • • Simon Sinek – Start with the Why rather than What – Youtube video of the TED talk on How great leaders inspire action http://www.youtube.com/watch?v=qp0HIF3SfI4 Blue Ocean Strategy – a classic – Wikipedia summary - http://en.wikipedia.org/wiki/Blue_Ocean_Strategy – Youtube summary from one of the authors - http://www.youtube.com/watch?v=clp-IMpuwaQ Dan Pink – What motivates people – Great audio/visual presentation - http://www.youtube.com/watch?v=u6XAPnuFjJc Business Model Canvas – a simple way to model possible options for your business – 2 minute overview - http://www.youtube.com/watch?v=QoAOzMTLP5s – Wikipedia summary - http://en.wikipedia.org/wiki/Business_Model_Canvas Shift Happens - From the world of education but highly relevant to change – http://www.youtube.com/watch?v=XVQ1ULfQawk Sir Ken Robinson – Do schools kill creativity – One of the top TED videos (inspiring and funny) http://www.youtube.com/watch?v=iG9CE55wbtY © 2014 NewLease Pty Ltd 22 © 2014 NewLease Pty Ltd 23 Summary - The 3 R’s Reinforce Remind Reveal © 2014 NewLease Pty Ltd 24 NewLease The Cloud Licensing and Channel Services Company We exist to help businesses & services providers thrive in the emerging cloud economy. • • • • Since 2003 ASX (RHP) Service provider focus Aggregate licensing from industry leading vendors © 2014 NewLease Pty Ltd 25 Contact Details • • • • • Stephen Parker Head of Cloud Strategy NewLease +61 424 321748 stephen.parker@newlease.net © 2014 NewLease Pty Ltd 26