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Cloud the way we see it




Simply. Business Cloud
“Where Business meets Cloud” Paul Hermelin
The information contained in this document is proprietary. ©2013 Capgemini. All rights reserved.
Rightshore® is a trademark belonging to Capgemini.
Cloud the way we see it




“
Where Business
Meets Cloud”
                                                           Shifts Rapidly. Fresh Insights into Adoption Trends,
                                                           combined with insights from our client work, highlight
                                                           the changes impacting the adoption of Cloud and
                                                           how organizations are addressing key issues and
                                                           challenges in leveraging it across their business.
                                                           What is clear from our research is that organizations
The impact of Cloud on today’s business is                 are keen on Cloud - not only as an IT platform - but
everywhere; from the foundations of technology             as a business enabler that brings qualities, such as
infrastructure to information management, IT               pay-per-use, flexibility and speed-to-implementation,
investments and solutions, all the way to day-to-          which drive business benefits, rather than focusing
day business processes and new activities. Cloud           on technical features. Cloud may be making
literally permeates society, not only touching us in our   IT somewhat invisible, but it is fast becoming a
personal lives, but also changing our expectations         ubiquitous principle of service delivery.
at work.
                                                           It is also crucial to realize that the business benefits
Capgemini has been a pioneer in helping exploit            of Cloud can be reaped without having to add
Cloud benefits for our customers. We saw early on          complexity and risk to the management agenda.
that by harnessing the power of the Cloud, we could        Our own proposition, as a Cloud Orchestrator, aims
help our clients achieve meaningful business change.       to help our clients navigate this quickly-evolving
Furthermore, from my interactions with industry            landscape without getting lost, being dazzled by
leaders, it is clear that the benefits of Cloud are now    choices, or following ineffective routes.
well understood and can undoubtedly deliver new and
simpler operating models, faster routes to market and      I believe we have a valuable and fresh perspective on
enhanced bottom-line gains. This is why Cloud, to us,      how to accelerate business transformation through
is a fundamental design principle that underpins the       Cloud – putting the power of IT closer to the business
majority of Capgemini’s solutions for our clients.         than ever before. At Capgemini, we don’t see Cloud
                                                           as a destination in itself. We see it as a better way
Thus, benefiting from Cloud can take many different        to reach your business destination, whatever your
forms. For example: Cloud powered a solution               industry sector, and wherever you are in the world. It
we developed that achieved a reduction of more             is no longer the journey to the Cloud, but the Cloud-
than a third in energy consumption for a regional          enabled journey that matters. Simply, a new era we
government; we delivered Cloud-based infrastructure        refer to as Business Cloud.
strategies to reduce costs and improve quality
and service delivery for a major Consumer Goods
company; and furthermore, we expanded the
customer footprint and enhanced the online user
experience with a first-of-its-kind, Cloud-based, multi-
channel ordering platform for a large North American
telecommunications company.
                                                                            Paul Hermelin
As Cloud has developed, so have our views. Our                               Chairman and
global survey Business Cloud: The State of Play                      Chief Executive Officer




                                                                                                                               3
Changes Driving
Cloud Adoption
We all take it for granted nowadays that we can read and               The resulting report, Business Cloud: The State of Play
write emails using the Internet wherever we are, using our             ShiftsRapidly. Fresh Insights into Cloud Adoption Trends,
home computers and tablets, or in the street via smartphones.          published by Capgemini in November 2012, has informed the
We appreciate being able to make photos easily available to            thinking behind this paper, which focuses on the impact of the
friends and family, even if they live on the other side of the         rapidly-emerging Business Cloud and provides guidance on
world. And we also share documents, insights and discussions           the next steps to take.
with our fellow-workers, at any time and place we want.
                                                                       Read the full report at
None of this would be possible without the Cloud. But                  www.capgemini.com/business-cloud-report.




                                                                       “
individuals are not the only ones who appreciate the benefits
of the Cloud. Businesses are also weighing up its advantages,
not just as a way of reducing their investments but also for
example in using IT resources more flexibly – according to the
volume of activity – and getting solutions up and running much
more quickly than before. Cloud provides companies with a              Cloud is not just a
choice of how they organize infrastructures and applications,
as well as different ways of working with service companies.           technology issue. It’s an
But Cloud itself is changing too, with considerable strategic
                                                                       opportunity for business
and tactical shifts taking place. To establish the extent of
how Cloud adoption is changing and its impact on the wider
                                                                       to truly transform the
organization, Capgemini commissioned original research                 way it works and even
using an independent research company.
                                                                       embrace new commercial
Our Cloud study consisted of 460 interviews with business
and technology executives from enterprise-sized organizations          models for growth”
(most with more than 10,000 employees) across six sectors:
retail, financial services, energy/utilities, public, manufacturing/
automotive, and telecom. The organizations have business
operations in multiple countries, including US, Brazil, China,
India, UK, France, Germany, Netherlands and Sweden. IT
executives and line-of-business decision-makers were almost
equally represented in our sample to give a rounded and
balanced view.




4    Simply. Business Cloud.
Cloud the way we see it




Cloud Powers the Business
Technology Landscape
The new reality of Cloud is that it is now perceived by the
organization as a whole as a powerful driver for business
initiatives, rather than just an IT platform. It is therefore taking
on a more strategic role within the organization –
a phenomenon that we refer to as ‘Business Cloud’.

Consider this:

•	 The Cloud has now proven itself and the days of
   evangelization are almost over. The business side of the
   organization has recognized its potential and has become
   much more involved in decisions about Cloud and in
   commissioning its use.

•	 This has led to heightened expectations by the business
   about the availability of quick, scalable, flexible and cost-
   effective solutions. This new benchmark of IT performance
   and value-for-money is rapidly becoming the norm
   against which internal and external IT organizations are
   being measured.

•	 Most organizations have articulated a Cloud strategy
   that is being implemented using a careful, step-by-step
   approach. In this way, IT caution is being balanced by
   business enthusiasm.

•	 The Cloud is already a default for new applications
   supporting high-growth “edge” business activities, much
   more than it currently is for existing, “legacy” applications.

Cloud is taking on a more strategic, powerful and influential
role within the organization, in which it is impacting on
both the business and IT sides of organizations. These
developments clearly indicate that the adoption of Cloud is set
for major change in the near future, and this paper provides
tangible next steps for consideration.




                                                                                            5
6   Simply. Business Cloud.
Cloud the way we see it




Business Likes the Cloud
Because It Delivers
The Cloud builds on advances in technology to quickly and                                             technological foundations will be absorbed by the Cloud and
effortlessly supply IT services, but its role is now extending                                        a new set of expectations will become the business norm.
beyond the boundaries of the IT department. Our research
found that decisions regarding the Cloud are increasingly                                             Business benefits drive adoption
being made not only within the IT function of organizations,                                          While cost reduction is considered the most important benefit
but also by the business, which in some cases is even taking                                          of the Cloud by both IT and the business, many other factors
final responsibility for Cloud strategy (Figure 1). In our research,                                  are driving Cloud adoption. An additional key driver from the
45% of respondents said the business is driving the Cloud                                             business perspective is reduced speed-to-market, named
agenda, compared to IT at 46%.                                                                        as a business driver for Cloud by 41% of respondents in
                                                                                                      our research. Improvement in operational efficiencies – for
Cloud should be simple, not add to complexity                                                         example, through standardization and easier access to
We found that departments such as HR, Finance, Supply                                                 solutions – was mentioned by 39%.
Chain and Procurement, Sales, Customer Relationship
Management and Marketing are among the first to see the                                              On the IT side, the preference to replace upfront investments
benefits of Cloud solutions. That is not surprising as the                                           (capital expenditure) with more flexible, usage-based pricing
beauty of the Cloud is that it allows people to use powerful                                         (operational expenditure) is clearly driven by the current
technology solutions without needing to understand the                                               economic realities. The well-known move from capex to opex
underlying technology itself, or having to wait too long for it to                                   was cited as a key IT driver for Cloud by 50% of respondents.
be deployed.                                                                                         Also, the ability to quickly scale outward and inward – as
                                                                                                     requirements fluctuate over time – is highly valued (named
This is likely to have significant implications in terms of the                                      by 48%), as is the improved service to customers, both
future role of the IT department, as well as the relationship                                        inside and outside the organization (cited by 37% and
between the business and IT, because sooner or later the                                             34%, respectively).


Figure 1: Who makes decisions about Cloud?
                                        Business Unit                                  Third-Party
                                       Driven Decisions                             Driven Decisions                                  IT Organization
                                                                                     (Supplier/Vendor/                               Driven Decisions
                                                                                    Retailer/Distributor)


                                                         45%                       9%
                                                                                                                                46%




                                  Reduced           Reduced
                                    cost         time to market
                                                                                                                                  Driving     Moving from
                                                                                                                                down costs    capex to opex


                                          Operational
                                          efficiencies                                                                           Ability to scale IT needs
                                                                                                                                   up or down rapidly

Source: Capgemini, Business Cloud: The State of Play ShiftsRapidly. Fresh Insights into Cloud Adoption Trends, November 2012.

                                                                                                                                                                                   7
What To Do Next:
             ‘From Alignment to Fusion’
             Clearly, as the business side of the organization becomes more and more comfortable driving Cloud adoption
             and execution, the role of IT has to adapt to this changing dynamic. What is more, the balance between IT
             demand and supply is not only shifting; it is being redefined. Cloud is an important catalyst to a true fusion of
             business and IT, rather than ‘just’ an alignment.

             From the IT perspective, while it may not seem to be the case on first impression, these shifts mean that there
             really are better opportunities than ever to create tangible value by leveraging the advances in technology in
             close proximity with the business.

             Working together, IT and the business have the chance to jointly develop a Cloud strategy and roadmap,
             architectural design and even (IT) governance, so there is a shared and end-to-end responsibility and
             ownership of Cloud. And in turn, IT can become an integral part of business change.

             However, failure to acknowledge the change in the balance of control and adapt to this shared approach
             could lead to a greater divide than ever between business and IT. This in turn could lead potentially to the
             business taking care of Cloud-driven transformation unilaterally, leaving behind an IT department confined to
             maintaining the existing, legacy IT landscape and – ultimately – repairing the possible damage.

             In our view, this is not, a desirable scenario for the business, and is certainly one that can be avoided by both
             worlds meeting together in common cause. We believe it is crucial that IT takes a positive and collaborative
             attitude towards the business, in embracing and maximizing the benefits of Cloud.




8   Simply. Business Cloud.
Cloud the way we see it




Raising Expectations:
The New Cloud Benchmark
As the business takes a greater role in Cloud decisions,               terms of the availability of flexible, easy-to-deploy and sharply
buyer and user expectations are changing to reflect this new           priced solutions. And a range of qualities demonstrated by
reality. Key to this has been the development of public Cloud          Cloud solutions is rapidly becoming the new norm against
marketplaces, such as those from Amazon Web Services,                  which IT departments are measured in terms of performance
Microsoft and Salesforce, which have created comprehensive             and quality of service.
catalogs of Cloud solutions, providing a broad range of “pay-
as-you-go” services.                                                   The seven qualities below make up what we refer to as the
                                                                       new Cloud Benchmark and which, in our experience, the
The ubiquity and ease of purchase of these services has                business has come to expect in this new Cloud reality
created high expectations, mainly on the business side, in             (Figure 2):



Figure 2: The New Cloud Benchmark – 7 Key Qualities




                                                                         Low costs               High flexibility



                                             Extreme scalability                                                        Easy, self-service
                                                                                                                          marketplaces
                                                                                        Speed-to-
                                                                                      implementation



                                                                   Pay-per-use                            Standardization
                                                                                                           and simplicity




Source: Capgemini




                                                                                                                                             9
1.	Low costs: Reduced costs result from economies of scale,
                                  building on the same “multi-tenant” solutions that are provided
                                  to multiple clients, with a high degree of standardization and
                                  minimized upfront investments.
                               2.	Speed-to-implementation: Organizations can move more
                                  quickly (typically in weeks instead of months) with solutions
                                  that can be selected and deployed rapidly without expensive
                                  and lengthy preparations or investments.
                               3.	Extreme scalability: Organizations can achieve infinite
                                  elasticity, effectively dealing with occasional or seasonal
                                  peaks and troughs in demand, without significant upfront
                                  design efforts or investments. A business can start small for
                                  a handful of users, and then scale-up (or back down) quickly
                                  and easily.
                               4.	High flexibility: Access to innovative, up-to-date solutions
                                  from any place and any device provides significantly increased
                                  flexibility and agility, without the need for an expensive rollout
                                  and management of fixed assets.
                               5.	Pay-per-use: The usage-based model is rapidly becoming
                                  the new norm, enabling organizations to pay for solutions
                                  based on actual usage and subscription-based pricing,
                                  avoiding the need for capital expenditure.
                               6.	Easy, self-service marketplaces: Business users can select
                                  and activate standard solutions through easy-to-use, self-
                                  service portals and catalog-based marketplaces, without the
                                  requirement for intermediates.
                               7.	Standardization and simplicity: With multi-tenancy and
                                  adoption of open standards, Cloud provides effective, proven
                                  solutions that are more straightforward to deploy and manage,
                                  and also less inviting to customize. In fact, by their nature,
                                  Cloud solutions are standard and simple.

                               What this new Cloud Benchmark demonstrates is that the main
                               impact of the Cloud is not in fact in technology. Rather, it is the
                               reshaping of the flow between demand and supply, both within
                               an organization and between organizations.

                               Also, by means of all its key qualities, the Cloud provides an
                               indispensable driver for Digital Transformation, harnessing the
                               power of the new digital economy to change the way we reach
                               out to clients, run our operations, and even conduct our business.

10   Simply. Business Cloud.
Cloud the way we see it




What To Do Next:
‘Cloudification’
Both the business and IT sides of an organization should prepare to get ‘Cloudified’: by this we mean taking
a systematic look at every activity and service to assess what impact Cloud could make, and applying
the seven key Benchmark qualities described. Taking a Cloud perspective alters the way we think about,
for example, how to create the next level of customer experience, or how to drastically optimize internal
operations. And it can even make us completely rethink our current business models.

Business: embrace the change potential
From the business standpoint, it is not just a matter of finding inspiration in the new generation of Cloud-
based solutions available on the market (although much can be gained from quickly embracing some of
their breakthrough services). But also about systematically applying the new Cloud Benchmark to existing
processes and services, and finding fresh and unexplored perspectives.

Each of the seven key qualities can drive this journey, for example: What if your order system could
standardize your order processes across the globe, quickly bringing much needed standardization at a
fraction of the current cost? What if you could supply new subsidiaries with an F&A solution that smoothly
integrates with your central systems, without the need for time-consuming local implementations? What if your
Marketing & Sales department could access new social media management support in weeks, rather than
months? What if all of your suppliers could be connected in real-time to your Procurement department? What
if you could access powerful predictive forecasting tools without the need for costly, upfront expenses?

IT: What would Amazon do?
 Similarly, the new Cloud Benchmark provides guidance to an IT department that’s keen to improve its
 performance. In particular, today’s public Cloud marketplaces - such as Amazon Web Services, Microsoft,
 Google and Salesforce - bring a wealth of inspiration. Again, this is not only true for the solutions being offered
- although many are viable cost-effective, flexible and up-to-date alternatives to the existing stack
 of solutions.

But it is also true in terms of the catalog of IT services being provided to the business, the way these services
are being measured and invoiced, the level of self-service provided, the scalability of services, and the speed
of supplying IT services. “What would Amazon do?” is the critical question that every CIO should be asking
him or herself when looking to improve their own IT services.




                                                                                                                                 11
12   Simply. Business Cloud.
Cloud the way we see it




Taking a Step-by-Step Adoption
Approach to Cloud Maturity
Evolution not revolution                                                                  business activities and processes. In addition, the obvious
While expectations of the Cloud are high – particularly on the                            economic advantages are bound to shift the balance in the
business side - the majority of organizations have already                                forthcoming years, where national legislation allows.
developed a specific Cloud strategy that takes a careful, step-
by-step approach to implementation and achieving Cloud                                    Cloud Orchestration manages complexity
maturity (Figure 3). Sixty-four percent of respondents in our                             The inclination for step-by-step, evolutionary adoption of
study are at the “maturing” stage, while 17% said their Cloud                             Cloud, rather than a more “big bang” revolutionary approach,
adoption is “close to maturity.”                                                          together with the increasingly high expectations about the
                                                                                          benefits that Cloud can deliver, could result in a degree of
Our findings also show that private Cloud solutions are still                             friction within organizations. It is not difficult to imagine a
preferred (named by 66% of respondents). Uncertainties                                    scenario in which the lines of business want to quickly procure
regarding regulatory compliance, data sovereignty and                                     public Cloud solutions to deliver immediate, new business
security are keeping organizations from fully embracing                                   value, while the IT function prefers to take a slower, risk-
public alternatives, although this seems to apply less to new                             mitigating course that uses private and hybrid clouds.



Figure 3: Taking a Step-by-Step Approach to Cloud Implementation




                 5%                                          14%                                         64%                          17%
            Embarking                                 Early Adoption                                   Maturing                 Close to Maturity




Source: Capgemini, Business Cloud: The State of Play ShiftsRapidly. Fresh Insights into Cloud Adoption Trends, November 2012.




                                                                                                                                                        13
What To Do Next: The
            Orchestration Perspective
            As described earlier, Cloud can indeed bring a true fusion of Business and IT. But, on the other hand, differences in
            pace, rhythm and priorities can also widen the existing gap between the two worlds.

            Good reasons for caution
            The reticence regarding Cloud – more often experienced by the IT side of the organization – is understandable:
            solutions can be sourced from a multitude of vendors and they all need to be integrated in a secure and unified way.
            Different vendors may also provide different service levels and support different standards, especially in a market that
            is still maturing, and managing this ecosystem can prove to be a time-consuming task, just as much as monitoring
            and implementing updates, new releases and innovations.

            However, sooner or later public Cloud scenarios will prevail, because of their obvious economic benefits, but in the
            meantime, the industry faces many years of hybrid deployments in which a volatile mix will evolve combining public
            Cloud, private Cloud and on-premise solutions.

            Keeping it Simple
            So before an organization realizes it, there can be a whole new level of Cloud complexity on the management agenda.
            This is in sharp contrast to the initial attraction of Cloud - its simplicity: a business wants to focus on achieving the
            benefits of using Cloud, rather than on managing its complexities. Taking an Orchestration perspective however can
            protect the majority of the organization from this paradox, by offloading the management of Cloud complexity to a
            separate service or organizational entity. The IT organization therefore has an important opportunity to pro-actively
            take up this role (particularly if it appears that its remit is becoming more dispersed and even fragmented).

            Cloud Orchestration and the marketplace
            For IT, this would mean the orchestration of the different Cloud resources, integrating existing and new solutions,
            and mixing public, private and hybrid scenarios. Ultimately that could lead to an organization-specific marketplace
            or catalog-based platform of Cloud services to be selected, activated and deployed and that could inspire the
            business to address their challenges in fresh and powerful ways.

            From a business perspective, they would ostensibly see a simple catalog. But ‘behind the scenes’, there would not
            just be a number of providers and vendors, but everything beyond, managed by IT; solution releases, integration,
            standards, functional interoperability and master data management, security and identity management, and
            service levels. IT’s orchestration function would take care of not only the complexity of managing this evolving
            ecosystem, but also keep a close eye on market developments and new solutions on the horizon.

            Cloud orchestration provides the hub that connects the fast-evolving needs of the business together with the
            robust foundation of corporate IT. The central catalog and marketplace should be defined and developed in close
            collaboration, finding a subtle balance between ad-hoc needs and the tendency to be “complete” and “in control”.
            A Cloud-orchestrated catalog should be an inspiration and driver for business change, not a restriction.




14   Simply. Business Cloud.
Cloud the way we see it




Cloud: Already the Default for
Powering New Business Solutions
Many organizations indicate that they consider the Cloud to be                                high-growth “edge” business activities, such as social
much quicker for implementing new solutions rather than for                                   media management, customer experience management,
replacing existing business applications. In our research, 78%                                human capital management, analytics, smart utilities
of respondents said they are focusing on new applications                                     and collaborative procurement, where the typical Cloud
for Cloud adoption (Figure 4). Similarly, in the development                                  constraints are not so naturally apparent.
area, the focus is also on new applications (named by 83% of
respondents) rather than on redeveloping legacy applications.                                 In this context, Cloud solutions are becoming almost a de
                                                                                              facto standard. The implication is that these applications
Edge initiatives - a natural fit for Cloud                                                    are easier and more cost-effective to run from the Cloud, as
In particular, organizations are showing an appetite – despite                                opposed to legacy applications with their built-in risks and
all valid inhibitors – to use Cloud for innovative, high-value,                               migration issues.

Figure 4: Does your Cloud adoption focus on new applications?
(Percentage answering “yes,” by region and sector)




                      78% New Applications
                                         Total




 77% 76% 74% 92%
             NAM                                      EMEA                                       APAC                           SAM




 84%                         77%                        80%                       69%                           68%               74%
    Retail                   Financial                    Energy/                    Public                 Manufacturing/      Telecommuni-
                             Services                     Utilities                                          Automotive         cations/Media


Source: Capgemini, Business Cloud: The State of Play ShiftsRapidly. Fresh Insights into Cloud Adoption Trends, November 2012.




                                                                                                                                                         15
16   Simply. Business Cloud.
Cloud the way we see it




What To Do Next:
Close To The Edge
Following the ‘Principle of Least Effort’, organizations should look for areas that are particularly suitable for
benefiting from the Cloud, without having to deal with restrictions and inhibitors that may apply elsewhere.

Already a default
What we are increasingly seeing in the market is that the public Cloud is becoming the default platform for
start-up companies or corporate spin-off businesses. This is supported by our research that finds that Cloud
is also the de facto for activities “at the edge” of a business: activities that are new, experimental, rapidly
growing, and value-adding are particularly suitable. We have already mentioned areas such as Social CRM,
Human Capital Management, procurement and business-to-business collaboration, but equally innovations
in supply chain management (such as the demand-driven supply chain) and finance & administration (for
example financial transparency and daily close) could classify for Cloud-enablement.

Anything elastic
Clearly, the extreme scalability of Cloud makes it particularly suitable for activities that show demand spikes,
are difficult to predict in terms of volumes and loads, or have a temporary need. Cloud could therefore be
applied to seasonal activities, such as holiday period sales, to the launch of a new mobile application with
limited prediction of user take up, or monthly analysis and reporting that is resource-intensive.

Furthermore, development and testing activities that are short-lived and with fluctuating demand will also
typically be highly suited to Cloud solutions. Of note is the concept of ‘Test & Drive’ in which organizations
can test drive a new market solution (for example analytics, mobile device management or simply new ERP
functionality), without the need to set up infrastructure, acquire licenses or install software.

Power of SMAC
Organizations are most successful with Cloud when they combine it with other powerful technology drivers
behind Digital Transformation, in what is being called SMAC: Social, Mobility, Analytics (or more appropriately
Big Data) and Cloud. The more these forces are combined, the more impact is achieved.

So whenever an organization is considering using or creating solutions in these areas, the first option should
simply be the Cloud to enable them. Moreover, organizations that are looking for new, fruitful areas to benefit
from Cloud will find a wealth of inspiration in activities that apply social, mobility or analytical technologies.




                                                                                                                           17
Defining Cloud:
                               Moving Beyond the Boundaries of
                               “Just” Computing

                               The days of Cloud evangelization are over.
                               Nowadays, the technology industry largely
                               agrees on the definition set by the U.S.
                               National Institute for Standards and
                               Technology (NIST), which states:

                               “Cloud computing is a model for enabling
                               ubiquitous, convenient, on-demand network
                               access to a shared pool of configurable
                               computing resources (e.g. networks, servers,
                               storage, applications, and services) that can be
                               rapidly provisioned and released with minimal
                               management effort or service provider
                               interaction.”

                               In other words, the Cloud builds on advances
                               in technology to quickly and effortlessly supply
                               IT services.

                               The definition distinguishes between three key
                               service models:
                               • Software as a Service (SaaS): applications
                               running on a Cloud infrastructure.
                               • Platform as a Service (PaaS): a Cloud-
                               based infrastructure for applications
                               development and deployment.
                               • Infrastructure as a Service (IaaS):
                               providing processing, storage, networks and
                               other fundamental computing resources.

                               Finally, it describes four models to deploy
                               the Cloud:
                               • Private Cloud: provisioned for exclusive use
                               by a single organization.
                               • Public Cloud: open use by the general public.
                               • Community Cloud: provisioned for exclusive
                               use by a community of consumers from
                               organizations that have shared concerns.
                               • Hybrid Cloud: a composition of two or more
                               Cloud infrastructures – private, community
                               or public.

                               Today, the impact of the Cloud is moving
                               beyond the boundaries of “just” computing,
                               and it is redefining the way processes are
                               being run and provided as well. This brings us
                               to one additional service model: Business
                               Process as a Service (BPaaS), which provides
                               full business process services, enabled by
                               Cloud applications and infrastructure.




18   Simply. Business Cloud.
Cloud the way we see it




In Conclusion
From our research and client work, it is clear that the impact       effective, without being impeded by the inhibitors and
of Cloud is moving beyond the domain of the IT function, and         obstructions that apply elsewhere.
is becoming an integral part of the entire business. Business
Cloud is therefore developing into a powerful driver for           For Capgemini, Cloud has become a ubiquitous design
change: it is the future of business and technology fusion.        principle that underpins the majority of our business solutions
                                                                   and is integrated into our service approach. Thus, in these
In this paper, we have suggested four next steps that              uncertain economic times, we can help our clients realize the
organizations should consider when looking to increase their       transformative impact of the Cloud on their organization.
benefits from Cloud:
                                                                   Our Cloud Orchestration services help clients to access this
•	 Adopt a Fusion not Alignment Approach: Couple                   power without having to deal with integration and multi-
   the energy and drive of the business, together with IT’s        vendor issues. We remove Cloud barriers and hide the
   objective technical know-how, in a joint end-to-end             complexity: something you expect from the Cloud in the first
   approach that will ensure the organization maximizes its        place. We can help articulate a Cloud strategy, find the best
   investment in Cloud.                                            starting point, and establish roadmaps and architectures,
                                                                   all the way from infrastructure via applications to your
•	 Get ‘Cloudified’: Systematically apply the unique qualities     business processes.
   of Cloud to every dimension of the organization - from
   business processes and activities, to IT infrastructure and     As your Cloud partner, Capgemini can enable you to
   applications - to identify the best opportunities for true      optimize your results from the Cloud without having to face
   Digital Transformation.                                         the complexity of multiple suppliers, integration issues
                                                                   and emerging technologies - balancing your in-house IT
•	 Apply an Orchestration Perspective: Orchestrate the             with Cloud. In the end, whatever the solution, it’s about
   quickly-evolving landscape of Cloud providers, vendors and      your business benefiting from Cloud, not about Cloud
   solutions so that the business side is not confronted with      itself. It is no longer about the journey to the Cloud, but the
   the complexities of security, integration and service levels,   Cloud-enabled journey.
   and can instead focus on employing a powerful catalog of
   business-oriented Cloud services.                               Find out more at www.capgemini.com/cloud-services

•	 Move close to the Edge: Explore the edges of the                Simply. Business Cloud
   business, where the benefits of Cloud can be most


                                                                                                                                     19
Cloud the way we see it




   Find out more at
   www.capgemini.com/cloud-services



   For more information about how our
   Cloud Orchestration services can
   optimize the benefit of Cloud for your
   business,please contact:

   Ron Tolido                                  Paul Nannetti
   Chief Technology Officer                    Group Sales and Portfolio Director
   Continental Europe                          paul.nannetti@capgemini.com
   ron.tolido@capgemini.com




                 About Capgemini
With more than 120,000 people in 40 countries, Capgemini is one
of the world’s foremost providers of consulting, technology and
outsourcing services. The Group reported 2011 global revenues of
EUR 9.7 billion.
Together with its clients, Capgemini creates and delivers business and
technology solutions that fit their needs and drive the results they want.
A deeply multicultural organization, Capgemini has developed its own
way of working, the Collaborative Business Experience™, and draws on
Rightshore®, its worldwide delivery model.


Learn more about us at
www.capgemini.com



The information contained in this document is proprietary. ©2013 Capgemini. All rights reserved.
Rightshore® is a trademark belonging to Capgemini.

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Simply.Business Cloud

  • 1. Cloud the way we see it Simply. Business Cloud “Where Business meets Cloud” Paul Hermelin
  • 2. The information contained in this document is proprietary. ©2013 Capgemini. All rights reserved. Rightshore® is a trademark belonging to Capgemini.
  • 3. Cloud the way we see it “ Where Business Meets Cloud” Shifts Rapidly. Fresh Insights into Adoption Trends, combined with insights from our client work, highlight the changes impacting the adoption of Cloud and how organizations are addressing key issues and challenges in leveraging it across their business. What is clear from our research is that organizations The impact of Cloud on today’s business is are keen on Cloud - not only as an IT platform - but everywhere; from the foundations of technology as a business enabler that brings qualities, such as infrastructure to information management, IT pay-per-use, flexibility and speed-to-implementation, investments and solutions, all the way to day-to- which drive business benefits, rather than focusing day business processes and new activities. Cloud on technical features. Cloud may be making literally permeates society, not only touching us in our IT somewhat invisible, but it is fast becoming a personal lives, but also changing our expectations ubiquitous principle of service delivery. at work. It is also crucial to realize that the business benefits Capgemini has been a pioneer in helping exploit of Cloud can be reaped without having to add Cloud benefits for our customers. We saw early on complexity and risk to the management agenda. that by harnessing the power of the Cloud, we could Our own proposition, as a Cloud Orchestrator, aims help our clients achieve meaningful business change. to help our clients navigate this quickly-evolving Furthermore, from my interactions with industry landscape without getting lost, being dazzled by leaders, it is clear that the benefits of Cloud are now choices, or following ineffective routes. well understood and can undoubtedly deliver new and simpler operating models, faster routes to market and I believe we have a valuable and fresh perspective on enhanced bottom-line gains. This is why Cloud, to us, how to accelerate business transformation through is a fundamental design principle that underpins the Cloud – putting the power of IT closer to the business majority of Capgemini’s solutions for our clients. than ever before. At Capgemini, we don’t see Cloud as a destination in itself. We see it as a better way Thus, benefiting from Cloud can take many different to reach your business destination, whatever your forms. For example: Cloud powered a solution industry sector, and wherever you are in the world. It we developed that achieved a reduction of more is no longer the journey to the Cloud, but the Cloud- than a third in energy consumption for a regional enabled journey that matters. Simply, a new era we government; we delivered Cloud-based infrastructure refer to as Business Cloud. strategies to reduce costs and improve quality and service delivery for a major Consumer Goods company; and furthermore, we expanded the customer footprint and enhanced the online user experience with a first-of-its-kind, Cloud-based, multi- channel ordering platform for a large North American telecommunications company. Paul Hermelin As Cloud has developed, so have our views. Our Chairman and global survey Business Cloud: The State of Play Chief Executive Officer 3
  • 4. Changes Driving Cloud Adoption We all take it for granted nowadays that we can read and The resulting report, Business Cloud: The State of Play write emails using the Internet wherever we are, using our ShiftsRapidly. Fresh Insights into Cloud Adoption Trends, home computers and tablets, or in the street via smartphones. published by Capgemini in November 2012, has informed the We appreciate being able to make photos easily available to thinking behind this paper, which focuses on the impact of the friends and family, even if they live on the other side of the rapidly-emerging Business Cloud and provides guidance on world. And we also share documents, insights and discussions the next steps to take. with our fellow-workers, at any time and place we want. Read the full report at None of this would be possible without the Cloud. But www.capgemini.com/business-cloud-report. “ individuals are not the only ones who appreciate the benefits of the Cloud. Businesses are also weighing up its advantages, not just as a way of reducing their investments but also for example in using IT resources more flexibly – according to the volume of activity – and getting solutions up and running much more quickly than before. Cloud provides companies with a Cloud is not just a choice of how they organize infrastructures and applications, as well as different ways of working with service companies. technology issue. It’s an But Cloud itself is changing too, with considerable strategic opportunity for business and tactical shifts taking place. To establish the extent of how Cloud adoption is changing and its impact on the wider to truly transform the organization, Capgemini commissioned original research way it works and even using an independent research company. embrace new commercial Our Cloud study consisted of 460 interviews with business and technology executives from enterprise-sized organizations models for growth” (most with more than 10,000 employees) across six sectors: retail, financial services, energy/utilities, public, manufacturing/ automotive, and telecom. The organizations have business operations in multiple countries, including US, Brazil, China, India, UK, France, Germany, Netherlands and Sweden. IT executives and line-of-business decision-makers were almost equally represented in our sample to give a rounded and balanced view. 4 Simply. Business Cloud.
  • 5. Cloud the way we see it Cloud Powers the Business Technology Landscape The new reality of Cloud is that it is now perceived by the organization as a whole as a powerful driver for business initiatives, rather than just an IT platform. It is therefore taking on a more strategic role within the organization – a phenomenon that we refer to as ‘Business Cloud’. Consider this: • The Cloud has now proven itself and the days of evangelization are almost over. The business side of the organization has recognized its potential and has become much more involved in decisions about Cloud and in commissioning its use. • This has led to heightened expectations by the business about the availability of quick, scalable, flexible and cost- effective solutions. This new benchmark of IT performance and value-for-money is rapidly becoming the norm against which internal and external IT organizations are being measured. • Most organizations have articulated a Cloud strategy that is being implemented using a careful, step-by-step approach. In this way, IT caution is being balanced by business enthusiasm. • The Cloud is already a default for new applications supporting high-growth “edge” business activities, much more than it currently is for existing, “legacy” applications. Cloud is taking on a more strategic, powerful and influential role within the organization, in which it is impacting on both the business and IT sides of organizations. These developments clearly indicate that the adoption of Cloud is set for major change in the near future, and this paper provides tangible next steps for consideration. 5
  • 6. 6 Simply. Business Cloud.
  • 7. Cloud the way we see it Business Likes the Cloud Because It Delivers The Cloud builds on advances in technology to quickly and technological foundations will be absorbed by the Cloud and effortlessly supply IT services, but its role is now extending a new set of expectations will become the business norm. beyond the boundaries of the IT department. Our research found that decisions regarding the Cloud are increasingly Business benefits drive adoption being made not only within the IT function of organizations, While cost reduction is considered the most important benefit but also by the business, which in some cases is even taking of the Cloud by both IT and the business, many other factors final responsibility for Cloud strategy (Figure 1). In our research, are driving Cloud adoption. An additional key driver from the 45% of respondents said the business is driving the Cloud business perspective is reduced speed-to-market, named agenda, compared to IT at 46%. as a business driver for Cloud by 41% of respondents in our research. Improvement in operational efficiencies – for Cloud should be simple, not add to complexity example, through standardization and easier access to We found that departments such as HR, Finance, Supply solutions – was mentioned by 39%. Chain and Procurement, Sales, Customer Relationship Management and Marketing are among the first to see the On the IT side, the preference to replace upfront investments benefits of Cloud solutions. That is not surprising as the (capital expenditure) with more flexible, usage-based pricing beauty of the Cloud is that it allows people to use powerful (operational expenditure) is clearly driven by the current technology solutions without needing to understand the economic realities. The well-known move from capex to opex underlying technology itself, or having to wait too long for it to was cited as a key IT driver for Cloud by 50% of respondents. be deployed. Also, the ability to quickly scale outward and inward – as requirements fluctuate over time – is highly valued (named This is likely to have significant implications in terms of the by 48%), as is the improved service to customers, both future role of the IT department, as well as the relationship inside and outside the organization (cited by 37% and between the business and IT, because sooner or later the 34%, respectively). Figure 1: Who makes decisions about Cloud? Business Unit Third-Party Driven Decisions Driven Decisions IT Organization (Supplier/Vendor/ Driven Decisions Retailer/Distributor) 45% 9% 46% Reduced Reduced cost time to market Driving Moving from down costs capex to opex Operational efficiencies Ability to scale IT needs up or down rapidly Source: Capgemini, Business Cloud: The State of Play ShiftsRapidly. Fresh Insights into Cloud Adoption Trends, November 2012. 7
  • 8. What To Do Next: ‘From Alignment to Fusion’ Clearly, as the business side of the organization becomes more and more comfortable driving Cloud adoption and execution, the role of IT has to adapt to this changing dynamic. What is more, the balance between IT demand and supply is not only shifting; it is being redefined. Cloud is an important catalyst to a true fusion of business and IT, rather than ‘just’ an alignment. From the IT perspective, while it may not seem to be the case on first impression, these shifts mean that there really are better opportunities than ever to create tangible value by leveraging the advances in technology in close proximity with the business. Working together, IT and the business have the chance to jointly develop a Cloud strategy and roadmap, architectural design and even (IT) governance, so there is a shared and end-to-end responsibility and ownership of Cloud. And in turn, IT can become an integral part of business change. However, failure to acknowledge the change in the balance of control and adapt to this shared approach could lead to a greater divide than ever between business and IT. This in turn could lead potentially to the business taking care of Cloud-driven transformation unilaterally, leaving behind an IT department confined to maintaining the existing, legacy IT landscape and – ultimately – repairing the possible damage. In our view, this is not, a desirable scenario for the business, and is certainly one that can be avoided by both worlds meeting together in common cause. We believe it is crucial that IT takes a positive and collaborative attitude towards the business, in embracing and maximizing the benefits of Cloud. 8 Simply. Business Cloud.
  • 9. Cloud the way we see it Raising Expectations: The New Cloud Benchmark As the business takes a greater role in Cloud decisions, terms of the availability of flexible, easy-to-deploy and sharply buyer and user expectations are changing to reflect this new priced solutions. And a range of qualities demonstrated by reality. Key to this has been the development of public Cloud Cloud solutions is rapidly becoming the new norm against marketplaces, such as those from Amazon Web Services, which IT departments are measured in terms of performance Microsoft and Salesforce, which have created comprehensive and quality of service. catalogs of Cloud solutions, providing a broad range of “pay- as-you-go” services. The seven qualities below make up what we refer to as the new Cloud Benchmark and which, in our experience, the The ubiquity and ease of purchase of these services has business has come to expect in this new Cloud reality created high expectations, mainly on the business side, in (Figure 2): Figure 2: The New Cloud Benchmark – 7 Key Qualities Low costs High flexibility Extreme scalability Easy, self-service marketplaces Speed-to- implementation Pay-per-use Standardization and simplicity Source: Capgemini 9
  • 10. 1. Low costs: Reduced costs result from economies of scale, building on the same “multi-tenant” solutions that are provided to multiple clients, with a high degree of standardization and minimized upfront investments. 2. Speed-to-implementation: Organizations can move more quickly (typically in weeks instead of months) with solutions that can be selected and deployed rapidly without expensive and lengthy preparations or investments. 3. Extreme scalability: Organizations can achieve infinite elasticity, effectively dealing with occasional or seasonal peaks and troughs in demand, without significant upfront design efforts or investments. A business can start small for a handful of users, and then scale-up (or back down) quickly and easily. 4. High flexibility: Access to innovative, up-to-date solutions from any place and any device provides significantly increased flexibility and agility, without the need for an expensive rollout and management of fixed assets. 5. Pay-per-use: The usage-based model is rapidly becoming the new norm, enabling organizations to pay for solutions based on actual usage and subscription-based pricing, avoiding the need for capital expenditure. 6. Easy, self-service marketplaces: Business users can select and activate standard solutions through easy-to-use, self- service portals and catalog-based marketplaces, without the requirement for intermediates. 7. Standardization and simplicity: With multi-tenancy and adoption of open standards, Cloud provides effective, proven solutions that are more straightforward to deploy and manage, and also less inviting to customize. In fact, by their nature, Cloud solutions are standard and simple. What this new Cloud Benchmark demonstrates is that the main impact of the Cloud is not in fact in technology. Rather, it is the reshaping of the flow between demand and supply, both within an organization and between organizations. Also, by means of all its key qualities, the Cloud provides an indispensable driver for Digital Transformation, harnessing the power of the new digital economy to change the way we reach out to clients, run our operations, and even conduct our business. 10 Simply. Business Cloud.
  • 11. Cloud the way we see it What To Do Next: ‘Cloudification’ Both the business and IT sides of an organization should prepare to get ‘Cloudified’: by this we mean taking a systematic look at every activity and service to assess what impact Cloud could make, and applying the seven key Benchmark qualities described. Taking a Cloud perspective alters the way we think about, for example, how to create the next level of customer experience, or how to drastically optimize internal operations. And it can even make us completely rethink our current business models. Business: embrace the change potential From the business standpoint, it is not just a matter of finding inspiration in the new generation of Cloud- based solutions available on the market (although much can be gained from quickly embracing some of their breakthrough services). But also about systematically applying the new Cloud Benchmark to existing processes and services, and finding fresh and unexplored perspectives. Each of the seven key qualities can drive this journey, for example: What if your order system could standardize your order processes across the globe, quickly bringing much needed standardization at a fraction of the current cost? What if you could supply new subsidiaries with an F&A solution that smoothly integrates with your central systems, without the need for time-consuming local implementations? What if your Marketing & Sales department could access new social media management support in weeks, rather than months? What if all of your suppliers could be connected in real-time to your Procurement department? What if you could access powerful predictive forecasting tools without the need for costly, upfront expenses? IT: What would Amazon do? Similarly, the new Cloud Benchmark provides guidance to an IT department that’s keen to improve its performance. In particular, today’s public Cloud marketplaces - such as Amazon Web Services, Microsoft, Google and Salesforce - bring a wealth of inspiration. Again, this is not only true for the solutions being offered - although many are viable cost-effective, flexible and up-to-date alternatives to the existing stack of solutions. But it is also true in terms of the catalog of IT services being provided to the business, the way these services are being measured and invoiced, the level of self-service provided, the scalability of services, and the speed of supplying IT services. “What would Amazon do?” is the critical question that every CIO should be asking him or herself when looking to improve their own IT services. 11
  • 12. 12 Simply. Business Cloud.
  • 13. Cloud the way we see it Taking a Step-by-Step Adoption Approach to Cloud Maturity Evolution not revolution business activities and processes. In addition, the obvious While expectations of the Cloud are high – particularly on the economic advantages are bound to shift the balance in the business side - the majority of organizations have already forthcoming years, where national legislation allows. developed a specific Cloud strategy that takes a careful, step- by-step approach to implementation and achieving Cloud Cloud Orchestration manages complexity maturity (Figure 3). Sixty-four percent of respondents in our The inclination for step-by-step, evolutionary adoption of study are at the “maturing” stage, while 17% said their Cloud Cloud, rather than a more “big bang” revolutionary approach, adoption is “close to maturity.” together with the increasingly high expectations about the benefits that Cloud can deliver, could result in a degree of Our findings also show that private Cloud solutions are still friction within organizations. It is not difficult to imagine a preferred (named by 66% of respondents). Uncertainties scenario in which the lines of business want to quickly procure regarding regulatory compliance, data sovereignty and public Cloud solutions to deliver immediate, new business security are keeping organizations from fully embracing value, while the IT function prefers to take a slower, risk- public alternatives, although this seems to apply less to new mitigating course that uses private and hybrid clouds. Figure 3: Taking a Step-by-Step Approach to Cloud Implementation 5% 14% 64% 17% Embarking Early Adoption Maturing Close to Maturity Source: Capgemini, Business Cloud: The State of Play ShiftsRapidly. Fresh Insights into Cloud Adoption Trends, November 2012. 13
  • 14. What To Do Next: The Orchestration Perspective As described earlier, Cloud can indeed bring a true fusion of Business and IT. But, on the other hand, differences in pace, rhythm and priorities can also widen the existing gap between the two worlds. Good reasons for caution The reticence regarding Cloud – more often experienced by the IT side of the organization – is understandable: solutions can be sourced from a multitude of vendors and they all need to be integrated in a secure and unified way. Different vendors may also provide different service levels and support different standards, especially in a market that is still maturing, and managing this ecosystem can prove to be a time-consuming task, just as much as monitoring and implementing updates, new releases and innovations. However, sooner or later public Cloud scenarios will prevail, because of their obvious economic benefits, but in the meantime, the industry faces many years of hybrid deployments in which a volatile mix will evolve combining public Cloud, private Cloud and on-premise solutions. Keeping it Simple So before an organization realizes it, there can be a whole new level of Cloud complexity on the management agenda. This is in sharp contrast to the initial attraction of Cloud - its simplicity: a business wants to focus on achieving the benefits of using Cloud, rather than on managing its complexities. Taking an Orchestration perspective however can protect the majority of the organization from this paradox, by offloading the management of Cloud complexity to a separate service or organizational entity. The IT organization therefore has an important opportunity to pro-actively take up this role (particularly if it appears that its remit is becoming more dispersed and even fragmented). Cloud Orchestration and the marketplace For IT, this would mean the orchestration of the different Cloud resources, integrating existing and new solutions, and mixing public, private and hybrid scenarios. Ultimately that could lead to an organization-specific marketplace or catalog-based platform of Cloud services to be selected, activated and deployed and that could inspire the business to address their challenges in fresh and powerful ways. From a business perspective, they would ostensibly see a simple catalog. But ‘behind the scenes’, there would not just be a number of providers and vendors, but everything beyond, managed by IT; solution releases, integration, standards, functional interoperability and master data management, security and identity management, and service levels. IT’s orchestration function would take care of not only the complexity of managing this evolving ecosystem, but also keep a close eye on market developments and new solutions on the horizon. Cloud orchestration provides the hub that connects the fast-evolving needs of the business together with the robust foundation of corporate IT. The central catalog and marketplace should be defined and developed in close collaboration, finding a subtle balance between ad-hoc needs and the tendency to be “complete” and “in control”. A Cloud-orchestrated catalog should be an inspiration and driver for business change, not a restriction. 14 Simply. Business Cloud.
  • 15. Cloud the way we see it Cloud: Already the Default for Powering New Business Solutions Many organizations indicate that they consider the Cloud to be high-growth “edge” business activities, such as social much quicker for implementing new solutions rather than for media management, customer experience management, replacing existing business applications. In our research, 78% human capital management, analytics, smart utilities of respondents said they are focusing on new applications and collaborative procurement, where the typical Cloud for Cloud adoption (Figure 4). Similarly, in the development constraints are not so naturally apparent. area, the focus is also on new applications (named by 83% of respondents) rather than on redeveloping legacy applications. In this context, Cloud solutions are becoming almost a de facto standard. The implication is that these applications Edge initiatives - a natural fit for Cloud are easier and more cost-effective to run from the Cloud, as In particular, organizations are showing an appetite – despite opposed to legacy applications with their built-in risks and all valid inhibitors – to use Cloud for innovative, high-value, migration issues. Figure 4: Does your Cloud adoption focus on new applications? (Percentage answering “yes,” by region and sector) 78% New Applications Total 77% 76% 74% 92% NAM EMEA APAC SAM 84% 77% 80% 69% 68% 74% Retail Financial Energy/ Public Manufacturing/ Telecommuni- Services Utilities Automotive cations/Media Source: Capgemini, Business Cloud: The State of Play ShiftsRapidly. Fresh Insights into Cloud Adoption Trends, November 2012. 15
  • 16. 16 Simply. Business Cloud.
  • 17. Cloud the way we see it What To Do Next: Close To The Edge Following the ‘Principle of Least Effort’, organizations should look for areas that are particularly suitable for benefiting from the Cloud, without having to deal with restrictions and inhibitors that may apply elsewhere. Already a default What we are increasingly seeing in the market is that the public Cloud is becoming the default platform for start-up companies or corporate spin-off businesses. This is supported by our research that finds that Cloud is also the de facto for activities “at the edge” of a business: activities that are new, experimental, rapidly growing, and value-adding are particularly suitable. We have already mentioned areas such as Social CRM, Human Capital Management, procurement and business-to-business collaboration, but equally innovations in supply chain management (such as the demand-driven supply chain) and finance & administration (for example financial transparency and daily close) could classify for Cloud-enablement. Anything elastic Clearly, the extreme scalability of Cloud makes it particularly suitable for activities that show demand spikes, are difficult to predict in terms of volumes and loads, or have a temporary need. Cloud could therefore be applied to seasonal activities, such as holiday period sales, to the launch of a new mobile application with limited prediction of user take up, or monthly analysis and reporting that is resource-intensive. Furthermore, development and testing activities that are short-lived and with fluctuating demand will also typically be highly suited to Cloud solutions. Of note is the concept of ‘Test & Drive’ in which organizations can test drive a new market solution (for example analytics, mobile device management or simply new ERP functionality), without the need to set up infrastructure, acquire licenses or install software. Power of SMAC Organizations are most successful with Cloud when they combine it with other powerful technology drivers behind Digital Transformation, in what is being called SMAC: Social, Mobility, Analytics (or more appropriately Big Data) and Cloud. The more these forces are combined, the more impact is achieved. So whenever an organization is considering using or creating solutions in these areas, the first option should simply be the Cloud to enable them. Moreover, organizations that are looking for new, fruitful areas to benefit from Cloud will find a wealth of inspiration in activities that apply social, mobility or analytical technologies. 17
  • 18. Defining Cloud: Moving Beyond the Boundaries of “Just” Computing The days of Cloud evangelization are over. Nowadays, the technology industry largely agrees on the definition set by the U.S. National Institute for Standards and Technology (NIST), which states: “Cloud computing is a model for enabling ubiquitous, convenient, on-demand network access to a shared pool of configurable computing resources (e.g. networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction.” In other words, the Cloud builds on advances in technology to quickly and effortlessly supply IT services. The definition distinguishes between three key service models: • Software as a Service (SaaS): applications running on a Cloud infrastructure. • Platform as a Service (PaaS): a Cloud- based infrastructure for applications development and deployment. • Infrastructure as a Service (IaaS): providing processing, storage, networks and other fundamental computing resources. Finally, it describes four models to deploy the Cloud: • Private Cloud: provisioned for exclusive use by a single organization. • Public Cloud: open use by the general public. • Community Cloud: provisioned for exclusive use by a community of consumers from organizations that have shared concerns. • Hybrid Cloud: a composition of two or more Cloud infrastructures – private, community or public. Today, the impact of the Cloud is moving beyond the boundaries of “just” computing, and it is redefining the way processes are being run and provided as well. This brings us to one additional service model: Business Process as a Service (BPaaS), which provides full business process services, enabled by Cloud applications and infrastructure. 18 Simply. Business Cloud.
  • 19. Cloud the way we see it In Conclusion From our research and client work, it is clear that the impact effective, without being impeded by the inhibitors and of Cloud is moving beyond the domain of the IT function, and obstructions that apply elsewhere. is becoming an integral part of the entire business. Business Cloud is therefore developing into a powerful driver for For Capgemini, Cloud has become a ubiquitous design change: it is the future of business and technology fusion. principle that underpins the majority of our business solutions and is integrated into our service approach. Thus, in these In this paper, we have suggested four next steps that uncertain economic times, we can help our clients realize the organizations should consider when looking to increase their transformative impact of the Cloud on their organization. benefits from Cloud: Our Cloud Orchestration services help clients to access this • Adopt a Fusion not Alignment Approach: Couple power without having to deal with integration and multi- the energy and drive of the business, together with IT’s vendor issues. We remove Cloud barriers and hide the objective technical know-how, in a joint end-to-end complexity: something you expect from the Cloud in the first approach that will ensure the organization maximizes its place. We can help articulate a Cloud strategy, find the best investment in Cloud. starting point, and establish roadmaps and architectures, all the way from infrastructure via applications to your • Get ‘Cloudified’: Systematically apply the unique qualities business processes. of Cloud to every dimension of the organization - from business processes and activities, to IT infrastructure and As your Cloud partner, Capgemini can enable you to applications - to identify the best opportunities for true optimize your results from the Cloud without having to face Digital Transformation. the complexity of multiple suppliers, integration issues and emerging technologies - balancing your in-house IT • Apply an Orchestration Perspective: Orchestrate the with Cloud. In the end, whatever the solution, it’s about quickly-evolving landscape of Cloud providers, vendors and your business benefiting from Cloud, not about Cloud solutions so that the business side is not confronted with itself. It is no longer about the journey to the Cloud, but the the complexities of security, integration and service levels, Cloud-enabled journey. and can instead focus on employing a powerful catalog of business-oriented Cloud services. Find out more at www.capgemini.com/cloud-services • Move close to the Edge: Explore the edges of the Simply. Business Cloud business, where the benefits of Cloud can be most 19
  • 20. Cloud the way we see it Find out more at www.capgemini.com/cloud-services For more information about how our Cloud Orchestration services can optimize the benefit of Cloud for your business,please contact: Ron Tolido Paul Nannetti Chief Technology Officer Group Sales and Portfolio Director Continental Europe paul.nannetti@capgemini.com ron.tolido@capgemini.com About Capgemini With more than 120,000 people in 40 countries, Capgemini is one of the world’s foremost providers of consulting, technology and outsourcing services. The Group reported 2011 global revenues of EUR 9.7 billion. Together with its clients, Capgemini creates and delivers business and technology solutions that fit their needs and drive the results they want. A deeply multicultural organization, Capgemini has developed its own way of working, the Collaborative Business Experience™, and draws on Rightshore®, its worldwide delivery model. Learn more about us at www.capgemini.com The information contained in this document is proprietary. ©2013 Capgemini. All rights reserved. Rightshore® is a trademark belonging to Capgemini.