All Things Postsecondary: Doing Business in the Cloud Christoph Knoess, Engaged Minds Inc. Liz Riley-Young, SAS Institute Inc. Patty Sullivan, IBM Corporation, moderator First….an agreement on what we mean when we say “cloud” • Not all cloud offerings are equal • Cloud providers have offerings: – “FOR” cloud – “ON” cloud • Cloud education providers are coming from many origins: – Emerging cloud providers – e.g. email, compute, search, collaboration – Emerging education service providers – e.g. learning content, administrative services, assessment services, ePortfolio – Legacy education vendors – e.g. publishers, SIS, LMS, assessment – Legacy IT vendors – e.g. consumer, data center HW, SW There’s a difference between “for cloud” and “on cloud” Data resides outside Campus’ firewall 1 2 3 Enterprise 4 Enterprise A 5 Enterprise User User User Enterprise Data Center Enterprise B A B C Deployment Data Center Enterprise C User User Managed D E Hosted Private Models Private Cloud Private Cloud Shared Cloud Public Cloud Cloud IBM owned and IBM owned and Services Services IBM operated operated operated Offering/Growth “FOR CLOUD”: 5-15% CAGR “ON CLOUD”: 25-35% CAGR •Control of resources and data “inside the campus •Mix of shared and •Self Service Campus View firewall” dedicated resources •Elastic scaling •Resource pooling •Shared staff •Pay as you go •Economies of scale •Services Levels •Functionality Differentiating •Lower systems mgmt costs •Price •Price Value •Service Levels/Price •Lowers campus IT •Removes campus IT •Security and privacy compliance controlled by campus costs costs •Cloud •On campus •Off campus •Cost efficiencies •Low “on-boarding” Provider component Service provider Service provider cost View/Value provider SaaS Cloud 5 Thoughts on Cloud Computing Christoph Knoess Engaged Minds Differences with important cost implications Cloud Single-tenant SaaS “True Cloud” Remote SaaS Deployment On-premise s/w On campus Single- Multi- tenant tenant Architecture Differences are irrelevant to customers Cloud Single-tenant SaaS “True Cloud” Email Mktg. Remote LMS, ERP SaaS Deployment On-premise s/w Gmail On campus Traditional campus IT Single- Multi- tenant tenant Architecture Differences matter to vendors Operating Margins 15% - 20% 30% - 40% Marginal cost of Single-tenant SaaS IT service additional tenant ISV’s “True Cloud” is close to Zero providers Cost efficiencies: Cost efficiencies: Remote Economies of scale from Dramatically lower overhead hosting multiple from running single instance instances of same app Differentiation: Differentiation: Functionality Service levels Price On-premise s/w On campus Single- Multi- tenant tenant Sources of Economic Value Single-tenant SaaS True Cloud On-demand Customer can unilaterally Self-service provision computing capabilities Broad network Capabilities are delivered via browser to heterogeneous thin access or thick clients Computing resources are location Resource Pooling independent and pooled to serve multiple customers Rapid Elasticity Capabilities can be quickly scaled up and down Measured Service Transparency and resource optimization through monitoring, controlling and reporting of resource usage SaaS Simplifies On-premise S/w Product Mgr. Business User S/w Developer Client DBA Support Client IT desk SaaS Product Mgr. Business User S/w Developer Client DBA Client IT desk SaaS is not a Product On-premise s/w Single-tenant SaaS “True Cloud” Software Software Business Information Product Service Service Service Cash flow Staffing model (PM, dev., support, services) Sales model (Compensation) Development (agile vs. waterfall) Technology Stack Release Cycle (days vs. months) Implementation / Onboarding Creation of Business Insights SAS on the Cloud Lessons Learned from moving to Cloud Computing Liz Riley-Young SAS Inc Questions for Doing Business on the Cloud 1. Yesterday, the keynote speaker said that the audience should be considered first when creating a cloud service, and later the business model(s). Do you agree? Questions for Doing Business on the Cloud 2. When embarking on a cloud computing business, what is necessary for an effective implementation? Questions for Doing Business on the Cloud 3. What types of higher education services are best suited for cloud delivery? Questions for Doing Business on the Cloud 4. What “lessons learned” would you share from your successes and failures in cloud computing? Thank you!