Analysis of conditions favouring movement to cloud for medium to large enterprises including checks for migration of existing application(s) from on-premise setup to cloud.

1. Feasibility of Cloud Migration for Large Enterprises
Cloud & Enterprise Security
Group
17 Sujeet Nadkarni | Anant Damle

2. AGENDA
Problems &
Challenges
Introduction
Economics of
Cloud
Cloud
Overview
Alternatives
System
Sizing
Techno-
Financial
Analysis
Recommendations

3. Cloud solutions need to be objectively evaluated for the real
business benefits for organisation as a whole and NOT in silos
Introduction
Cost Agility
Adoption
Technology
Efficiency
Architecture
ComplexityDevices

4. Cloud computing is the use of computing resources (hardware
and software) that are delivered as a service over a network
Cloud
Overview
Source: wikipedia.org

5. Cloud offerings are classified based on services offered OR on
the deployment/ownership of computational resources and
architecture
Cloud
Overview
Source: wikipedia.org
Infrastructure as a
service (IaaS)
Platform as a
service (PaaS)
Software as a
service (SaaS)
Network as a
service (NaaS)
Storage as a
service (STaaS)
Security as a
service (SECaaS)
Desktop as a
service (DaaS)
Database as a
service (DBaaS)
Test environment
as a service (TEaaS)
Integrated
development
environment as a
service (IDEaaS)
Delivered ServicesDeployment / Ownership

6. Cloud combines Mainframe’s Efficiency and Client/Server’s
Agility to provide an order of Magnitude better service through
a new Business Model
Cloud
Overview
Technology Economic Business Model
Mainframes
Centralised compute
& storage.
Thin Clients
Optimised for
Efficiency
CAPEX
Client/Server
PCs and Servers for
distributed compute
& storage
Optimised for
Agility
Perpetual Licenses
for OS & Application
Software
Cloud
Efficiency and Agility
(order of magnitude)
pay as you use
Large DC
Commodity Hardware
Scalability

7. Cloud is multi-faceted, implementation requires clear
understanding of drivers, inhibitors and usage patterns
Cloud
Overview
Agility
Cost
BYOD
Complexity
Financial Mgmt.
Drivers
Privacy
Technology
Process
Organisation
Inhibitors
Desktop
Collaboration
Business Process
IT Efficiency
R&D
Web Presence
Usage / Adoption
SaaS
PaaS
IaaS
Internal
Web Grade
Hybrid
Cloud Type

8. Financial Decisions can NOT be based on just BUZZ
Economics
Agility
pay-as-
use
Device and
Location
Independence Multitenancy
Scalability
Maintenance
Low
CAPEX
API

9. The cloud derives its benefits from the scale of operations by
aggregating supply side and the demand side of IT. This is
through elastic consumption and provisioning for IT resources
Economics
Supply Side Savings
Large DCs
Lower
TCO/Server
Demand Side
Aggregation
Reduced
Variability
• Temporal
• Multisource
• Growth pattern
Multi-tenancy
Efficiency
Increased
number of
tenants (e.g.
customers or
users etc.)
reduced
application
maintenance /
servercost per
tenant

10. The cloud derives its benefits from the scale of operations by
aggregating supply side and the demand side of IT. This is
through elastic consumption and provisioning for IT resources
SupplySide
Power –
Electricity/Cool
ing
Infrastructure
Labour
Security –
Physical &
Digital
Reliability Cost
Economies of Scale – Buying Power
*Illustrative | Source: Economics of Cloud, Microsoft

11. The overall cost of IT is determined not just by the cost of
capacity, but also by the degree to which the capacity is
efficiently utilized
Variability
Multi-Resource
Time of Day
Random
Uncertain Growth
NOT considering
Industry Variability as it
concerns only
Cloud Service Provider

12. Sluggish IT adoption in Non-IT organisations is caused primarily
by weak process and employee IT-capability
Personnel Organisational IT systems are dependent on external vendors, and internal IT
capability is low
Low competence to handle complex technology related tasks in-house.
Process Complex Workflow - Heavily customised applications
Different applications (pieces) are developed and maintained by separate vendors
Process automation/Integration between departments is difficult
Software Low Reconfigurability and Non-Modular system architecture.
Applications are not designed for Multi-Tenancy
Problems

13. Cloud is not panacea for IT. Organisation capability is an
important factor for cloud migration
Alternatives
Criteria On Premises
Third Party
Hosted
On- Cloud
(PaaS/IaaS)
Technical Moderate High
Performance High Moderate High
Security Moderate Low High
System Access High Low Low to Moderate
System
Availability
Moderate High
Total Cost
(100 Servers – 7
yrs.)
Moderate High
Maintenance
Skills Moderate
Low to
Moderate
High
Cost/Unit High Low
Software Development
Efforts Low High
Cost Low High

14. System sizing establishes a benchmark performance and price
for comparison within alternatives
Sizing

15. CRM is a candidate application as it presents significant savings
from Cloud Migration
Analysis
Organisation Size ≈1000
No. of Licenses 200
Growth Rate 20% p.a.
WACC 10% p.a.
Network Growth 40% p.a.
Salaries Head Growth 15% p.a.
TAX Rate 40%
Number of CRM Records
≈ 10,000,000
(10 million)
Assumptions
Based on sample calculations as per assumptions and published price list for Oracle Seibel CRM (on-premise) and Salesforce.com
9.2
4.9
USD

16. Custom developed application is in grey area in terms of
savings from Cloud Migration
Analysis
Assumptions
Based on sample calculations as per assumptions and published price list for typical workflow application on premise and Google App Engine
# Unit
Storage 7824 GB
Total Record Access 500
Per User
/week
Size of Record 100 KiB
Server
CPU – 2
RAM – 3 GB
HDD – 420 GB
32 Piece
4.4
3.0
USD

17. Cloud migration presents significant cost savings, but migration
feasibility depends on specific risk profile of the organisation
Recommend
Significant Cost Savings
Vendor Lock-in
Private Cloud
CAPEX
Legal & Regulatory

18. THANK YOU