Cloud Solutions What do we mean by solution in the Cloud Era?

1. Cloud SolutionsWhat do we mean by solution in the Cloud Era? Ahmed Fattah Client Technical Adviser Financial Services and Public Sectors IBM Australia Cloud Solutions

2. Purpose and contents The purpose of this presentation is to discuss the semantic mismatch between customers’ and vendors’ perspectives of the term Solution, how Cloud Computing has influenced this and how we can align these two perspectives. Contents: • Semantic mismatch • Customer’s perspective • Vendor’s perspective • Aligned perspective • Conclusions Cloud Solutions

3. Frequently, there is a semantic mismatch between what customers and vendors mean by the term ‘Solution’. This mismatch brings usually very costly consequences to both. Solution: Readily usable app* to achieve my business outcome Customer Solution Solution: Some hardware, software, IP and resources that could be used to implement the desired app. In some cases this situation can be even worse when multiple vendors are involved: each with their own meaning of Solution. Vendor * Note that the term ‘app’ is used here to highlight the end user’s perspective. It is not restricted to smart phones it can refer to any end use application on any device. Cloud Solutions

4. The Solution from the customer’s perspective can be understood in the context of Business Imperatives, capabilities, use cases and a desired mode of consumption. Business Imperatives CEO, CFO, CMO, Business Capabilities (Objectives, opportunities, Problems) Line of Business Owner Business Use Cases Business users Mode of consumption Procurement Solution Cloud Solutions

5. The vendor’s perspective of a Solution can be understood in the context of the components (hardware, software, assets), IP, skilled resources and effort that are required to construct the Solution. Solution Note that there may be still a gap between the Solution and SaaS. For example if the software is not multi-tenant or if it requires extensive customisation and configuration for each customer. In addition, commercial T&C’s have to be aligned to customer’s expectations. Commercial T&C Consulting, Implementation & integration Services Software/ Application (SaaS) In the past, custom development and SI projects used to bridge the gap between Platform (middleware) and the Solution. Software Package Framework Platform (PaaS) Infrastructure (IaaS) Cloud Solutions

6. The two perspectives must be aligned and reconciled. With the rise of Cloud, the vendor’s perspective must be subservient to the customer’s. ‘Below-the-line’ details should only be exposed ‘above the line’ if they are of interest to the customer. We need also to understand how the customer wish to consume the solution (purchase use case) Customer Customer’s perspective (Above the line) Solution (Below the line) Vendor’s and integrator’s perspective Vendor Cloud Solutions

7. The business stakeholders and buyers are interested in the ‘above-the-line’ aspects of the solution. Technical staff may be interested in ‘below-the-line’ aspects and could be buyers of individual component of the ‘Solution’. Technologists CEO, CFO, CMO, Line of Business Owner In-house technology and solution capabilities Business users Infrastructure Platform Framework Package Procurement Above the line Below the line Vendor’s positing of the business solution Vendor’s positing of the technical solution Solution Architect Industry SME & Analyst Cloud Solutions

8. Conclusion With the rise of Cloud Computing, customers are increasingly want to consume IT capabilities as end-user apps. Vendors should evolve their business model to adjust to this reality. • Cloud Computing (and other enabling technologies such as mobile) has made it possible for consumers to use finely designed apps for almost every need and wish they have. • Enterprise use can see the benefits of this model and are already consuming some functions as SaaS. Some of these benefits are: • Conversion of CapEx to Opex • No need for (large) IT staff • Shifting the risk to vendors • Many vendors are already supplying enterprise SaaS for many enterprise functions. • Other vendors have to evolve their business model to accommodate this reality. Cloud Solutions

9. Business Imperatives Business Capabilities (Objectives, opportunities, Problems) Business Use Cases Mode of consumption Solution Solution Commercial T&C Consulting, Implementation & integration Services Software/ Application (SaaS) Software Package Framework Platform (PaaS) Infrastructure (IaaS) Cloud Solutions