Cloud Computing in France - A model that will transform companies: decision mechanisms and impacts

Cloud Computing in France - A model that will transform companies: decision mechanisms and impacts

Added by: CedricMora
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Cloud Computing offers a new economic model to the IT department: there is a shift from a model where an organization have to invest a large sum of money for limited resources that are managed internally, to a model where the organization can rent resources that are managed by a provider and pay them “for the use”. Platform-as-a-Service and Infrastructure-as-a-Service are two types of services that enable an organization to outsource resources for the purpose of hosting specific applications. A structured approach provides an occasion to the reader to look beyond the marketing speeches, with some insight on the Return on Experience of French organizations: • PaaS and IaaS can reduce cost but only if the application benefits from the economics (temporal needs, burst); • PaaS and IaaS can offer operational benefits for some organizations (SMEs for example) but it is also a way to choose the appropriate service levels and, thus, differentiate the level of services; • PaaS and IaaS offer specific new possibilities for the organization, and, for example accelerate innovation; • PaaS and IaaS raise issues on operational and strategic levels but the maturity of the organization is never questioned, while it should be; • Some French organization may not be interested in the model as it exists now; or • Private Cloud does not reproduce a real Cloud environment and it is much more complicated to create than Public Cloud (especially for SMEs). Those findings are supplemented by decision mechanisms that will help French organizations by creating the right framework for outsourcing. An organization will be able to determine: • Whether an application can be outsourced or not with an eligibility matrix (according to the Cloud strategy, the technical feasibility, the maturity, the risks, the ROI, the criticality, and the governance); • What are the needs to be taken into account when calculating the Return on Investment (which also includes the risks, the type of project and the model of billing) what are the other possibilities (Managed Service, Colocation, Private Cloud); • For what usage a PaaS or IaaS service is best suited for (differentiation between new projects and existing applications); • How to choose the relationship model with a provider and how to choose this provider (some providers are not in contact with their customer when other focus on a strategic partnership); and • How to take into account the existing environment when making this choice (internal and external factors could ease or complicate the choice). French early adopters that will use PaaS and IaaS services will be impacted in all sorts of ways on their organization. When pushing the scenario a little further, we can see that the shift from the “controlling an infrastructure” to “controlling a process” have consequences on the strategy, systems, structure, shared values, style, staff and skills of the organization. This document identify more specifically: • How the processes of the IT department are impacted (control of provider services, automated management); • What happens to the projects in Cloud Computing; • The solution given by the IT department to the Business units; • The consideration of IT to the strategy; • The model for contracting with the provider, with Click-wrap contracts or custom-made contracts; • The potential new organizational model (Network-centric organization); and • The new skills and values that must be developed by the employees (control of a process, collaboration) French SMEs and early adopters will be able to obtain information that will be very useful on the processes to implement and consequences of the adoption of Cloud Computing.

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