5 Pitfalls and 5 Payoffs of Conducting Your Business Processes in the Cloud

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1 5 Pitfalls and 5 Payoffs of Conducting Your Business Processes in the Cloud Keith Swenson VP R&D, Chief Architect Fujitsu America, Inc. April 2014

2 Fujitsu at a Glance Headquarters: Tokyo, Japan Established: June 1935 Net Sales: US $53 billion R&D Expenditure: US $2.4 billion Employees: 166,000 worldwide 3 rd largest IT company worldwide 6 th largest Application Infrastructure and Middleware software provider 2

3 What is the Cloud? Gartner defines cloud computing as a style of computing in which scalable and elastic IT-enabled capabilities are delivered as a service using Internet technologies. SaaS Software as a Service IaaS Infrastructure as a Service PaaS Platform as a Service 3

4 Why BPM (Business Process Management) in the Cloud? BPM is the discipline to model, automate, execute, control, measure and optimize the flows of business activities that span the enterprise s systems, employees, customers and partners within and beyond the enterprise boundaries. Conduct BPM in the Cloud: For development and test environments for BPM applications To accelerate time-to-benefit and to avoid capital expenditures When IT resources are scarce or lack BPM platform expertise To connect business processes spanning multiple organizations To manage work and improve collaboration 4

5 Pitfalls and Payoffs of Conducting BPM in the Cloud

6 Security Pitfall Perceived vulnerability Everything is not under one roof Third party workers Payoff Security is run by security experts Physical location is highly controlled All channels are encrypted Geography makes no difference to the cyber criminal Need to educate project members on reality 6

7 Control Pitfall Less control over specifics of hosting Less able to specify patch and upgrade timelines Unusual system configurations are harder to find Payoff Patches and upgrades are more timely Volume of managed environments assure expertise and consistency Guidelines more regularly enforced Easier not to have to worry about controlling these things Assess whether that control is really a benefit to you 7

8 Financial Pitfall Paying for equipment and service bundled If you can predict your need precisely, it can be less expensive to buy and install your own equipment Less transparency of where payment is going Payoff No large up front capital investment No waste from purchasing too much equipment. No unanticipated high costs from filling emergency needs Unused virtual machines cost nothing when turned off If you can t predict exact need, TCO will probably be lower with Cloud computing. 8

9 Integration Pitfall Increased complexity to integrate with in-house servers Hybrid (on premises and cloud) more complicated than either one On-premises and Cloud probably managed differently VPN between Cloud and firewalled environment Payoff Easier integration with external services and other cloud systems Integration with business partners more readily supported Once the VPN connection is established, integration should be about the same as normal 9

10 Users Pitfall Extra complexity setting up Cloud environment to have the same user directory as on-premises Payoff Users in the field and users based inside the firewall use Cloud-based services consistently Traveling users are not cut off from accustomed services Accessibility to partners significantly easier because they don t need access to your entire environment. Cloud-based applications give you significant flexibility to be accessed by users anywhere 10

11 Flexibility Pitfalls Smaller range of specific hardware, OS, and middleware No direct access to hardware for customization Some legacy systems not designed for remote access Payoff Very easy to expand for unexpected surges in demand Test servers can set up for a few hours, then discarded Pay only for what you use, not for the peak usage No need to predict exactly what you will need No waste when acquired computers not used This is really the key benefit of Cloud 11

12 Strategies and Case Study

13 Strategies Applications that benefit from Cloud today Users are widely distributed geographically Partner involvement in business processes Linking suppliers and supply chain Lots of variability in demand seasonally Lots of outsourced work, distributed workforce Examples Continuing Medical Education for doctors and nurses Outsourced R&D for new drug development and clinical trials Administrative applications like expense reports & timesheets 13

14 Strategies Applications that are less-suited today for the Cloud: When network bandwidth is questionable Users have no ready access to public networks When data sets are huge Specialized hardware needed Examples Video editing software CAD applications with large scale models Weather modeling which requires very high performance supercomputing 14

15 How to Choose a Vendor Better if the infrastructure and the application platform come from the same vendor supported consistently by the same team less of a problem with passing the buck Look for vendor with global reach Ability to provide professional services around the platform is also critical. 15

16 Case in Point Legal firm handling court cases Found their IT demands were getting costly Put their document case handling in the Cloud Want to focus on their core competency: legal work Eliminated internal costs and risks with IT Better assurance of security and proper maintenance Flexibility to handle increased demand 16

17 Organizational Changes Be prepared for some organizational changes Clearly fewer IT staff needed More flexibility in general Do you still need an CIO? Yes, you still need corporate information strategy Don t expect the cloud provider to know your strategic needs 17

18 Fujitsu Software Interstage Business Operations Platform (BOP)

19 Add Agility to IT and Accelerate Time-to-Value Business Needs Business Strategy Business Change Cycle: Organizational Structure Supporting Technology Technology Change Cycle: Software IT Infrastructure 19

20 Add Agility to IT and Accelerate Time-to-Value Business Needs Business Strategy Business Change Cycle: 1-2 years(s) Organizational Structure Supporting Technology Technology Change Cycle: Software IT Infrastructure 20

21 Add Agility to IT and Accelerate Time-to-Value Business Needs Business Strategy Business Change Cycle: 1-2 years(s) Organizational Structure 3-6 months Supporting Technology Technology Change Cycle: Software IT Infrastructure 21

22 Add Agility to IT and Accelerate Time-to-Value Business Needs Business Strategy Business Change Cycle: 1-2 years(s) Organizational Structure 3-6 months Supporting Technology Software Technology Change Cycle: 6-10 years IT Infrastructure 6-10 years 22

23 Add Agility to IT and Accelerate Time-to-Value Business Needs Business Strategy Business Change Cycle: 1-2 years(s) Organizational Structure 3-6 months Interstage BOP Synchronizes Business & IT Change Cycles Supporting Technology Software Technology Change Cycle: 6-10 years IT Infrastructure 6-10 years 23

24 Interstage Business Operations Platform Interstage Business Operations Platform (BOP) Composite Application Framework (CAF) Composite Application Business Process Management Suite (BPMS) Business Process Management Service Oriented Architecture (SOA) Enterprise Service Bus User Interfaces Case Management Business Services Task Management Rules Management Master Data Management Business Activity Monitoring Collaborative Workspace Smart Services Grid 24

25 Interstage BOP Differentiators A single platform, combining the world of Integration, Business Process Management, and Composite Application Development Enables true business and IT collaboration via a single Collaborative Workspace Support for any type of workflow including human-to-human workflows, system-to-system integration-type interactions and hybrid processes Modern and open platform, built on a secure, highly available and scalable architecture Designed to support multi-tenancy and Cloud deployment deploy an application development environment in a matter of hours 25

26 Interstage BOP: On-Premise and the Cloud What is it? Enterprise wide BPM in the Cloud, on-premise or a hybrid mix of both The Interstage platform can run in the public Cloud, the private Cloud, on-premise or hosted by a delivery partner. It is exactly the same platform. What does it give you? Business processes spanning the people, applications and services regardless of where they are. A business process could orchestrate SAP, Siebel, Salesforce, Google, Azure etc Choice of using the cloud, not using the Cloud, moving to the Cloud when it makes business sense The best of both worlds make use of innovative SaaS applications together with traditional applications and existing legacy The option of being able to run your business processes as a service (BPaaS) but retain control of your differentiation and innovation BPM in the Cloud is particularly suitable for: Outsourcing, BPO and systems integrators Combining the best of SaaS with existing legacy Flexible charging models e.g. subscriptions 26

27 Case Study 1: Extending The Enterprise Business processes typically span many systems, business units and the extended enterprise Enterprise systems are frequently not accessible outside the corporate network BOP supports the extended enterprise by connecting suppliers, agents, customers and external experts to internal systems with tailored fit-forpurpose business solutions Customers have taken this approach to quickly build applications and portals, focusing on ease-of-use and speed of collaboration 27

28 Case Study 2: Connect ERP To Business Critical Applications Unlock application and information silos Gain visibility, control, speed of change, innovation and flexibility Reduce costs, time-to-market, inefficiency and expensive ERP customizations Integrate, orchestrate and leverage a diversified SAP and IT landscape by bridging the gap between different systems Maximize business potential of the current and future IT infrastructure Develop robust and flexible integrations, leveraging the speed of development and reuse capabilities of Interstage BOP 28

29 Fujitsu Trusted Public S5 Cloud Trusted, secure virtual platform that is dedicated to a particular customer Deployed from shared virtual resource pools at our green Tier III data center in Sunnyvale On-demand via a self-service portal Microsoft Windows Server 2003 and 2008, Linux, CentOS Optional (fee-based) services: Middleware support (SQL) Additional disk capacity Backup (system and data) Load balancing Private Internet Global IP address Pay for what you use Elastic and scalable Secure and compliant 24x7 help desk included Virtual Platform Deployment Resource Pool Customers Internet Intranet Virtual Platform Fujitsu Data Center 29

30 Fujitsu Global Cloud First launch in Japan, followed by Australia, Singapore, UK, US and Continental Europe Global deployment, implemented locally UK Continental Europe Japan USA - Sunnyvale Singapore North America Tier III datacenter Australia Each node is standard and identical; data resides strictly within the region Copyright 2012 Fujitsu America, Inc.

31 Summary Pitfalls & Payoffs Security Control Financial Integration Flexibility Users Strategies& Recommendations Fujitsu Interstage BOP Fujitsu Cloud 31

32 Q&A For more information visit us at or at 32 Copyright 2013 Fujitsu America, Inc.

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