Welcome!

Cloud Expo Authors: Brian Lavallée, Yeshim Deniz, Roger Strukhoff, Jason Bloomberg, Elizabeth White

Related Topics: Open Web, Web 2.0, Cloud Expo

Open Web: Blog Feed Post

Innovation and Risk in the Clouds - II

In business there are some very memorable moments in risk taking (Part 2 of 3)

Early Bird at Cloud Expo

In Part 1 of Innovation and Risk in the Clouds, I focused on the alignment between strategy, organizational culture, innovation, and cloud computing.

In part 2 we will discuss some of the risks and challenges cloud computing presents.

Do you remember the last time you took a risk?  The first time?  Do you remember the first time you saw your company take a meaningful risk?

In business there are some very memorable moments in risk taking.  Which ones do you recall?  One of my favorites is the Apple, Xerox, Microsoft, and IBM story told in the Pirates of Silicon Valley docudrama.

It’s a classic tale of a large enterprise not fully recognizing the value of technology, and a smaller organization being sufficiently bold and nimble to capitalize on that mistake.

As a former project manager, one of the activities I enjoyed most when managing projects was risk planning.  It slowed us down and forced us to think through our activities, identify risks, analyze the risks, and plan appropriately.  Some believe the speed of being a first mover, and its advantage, is enough, but it’s not simply the fastest car that wins the Indianapolis 500, the 24 Hours of Le Mans and the Monaco Grand Prix; it’s the team that best manages the risks inherent in participating at such events.  The risk of a tire blowout is very real, and is a risk that needs to be properly managed.

Similarly, organizations need to be structured with the people, resources, processes, and strategic focus to adopt risk-taking endeavors in an acceptable and measured way.

The discipline of risk management focuses on addressing organizational risk inherent in its people, process, systems, and external environment.  Some of those areas of risk include:

  • Strategic (M&A),
  • Regulatory Compliance,
  • Financial (Cashflow) and Operational (IT systems, Supply Chain)
  • Environmental, Political, Economic, Technological, and Competitive

Corporate transformation to a more creative culture leveraging the latest cloud computing model is not without risk.  The consequences of the transition, chance of success, and impact on the business needs to be weighed, and planned for appropriately.

The good news is that cloud computing represents a positive risk shared with the cloud service provider, enhanced with key partnerships, and exploited for corporate benefit while leveraging service level agreements (SLAs) to mitigate risks.  Risks, such as, hardware and software technological obsolescence, are transferred; although many considerations, including security, interoperability, lock-in, business process governance, and management remain, and need to be properly evaluated.

Security: I have heard it said that up to 70% of security threats are from unauthorized access by internal employees, so perhaps the focus on external attacks in a cloud computing environment should be re-evaluated.

Enterprise security, governance, risk management, and compliance has enabled many large government and financial service organizations to meet their audit requirements while reducing risk and improving operational efficiency.  I have no reason to believe that cloud service providers (CSPs) meeting the same audit criteria will fare worse in this regard.

Interoperability: There is the risk of emerging technology and lack of interoperability standards; though large private enterprises and government will put pressure on CSPs to inter-operate between clouds.

Lock-In: The risk of vendor lock-in given the lack of interoperability standards, while real, should be kept in context.  Is the absence of lock-in worth an expensive choice of multiple hardware and software providers?  Are you willing to pay a multiple to not be locked-in?  Interoperability will eventually come to the cloud, while legacy service providers are moving to their own solution bundles given the acquisitions we have seen – Oracle/Sun, Dell/Perot, HP/EDS.

Business Process Governance: In this area, Salesforce.com announced the Force.com Visual Process Manager, and Makara announced its cloud application deployment and management platform, you can expect many developments here as organizations race to provide a variety of solutions in this area.  I have written on this topic before, the original blog entry is found here.

Management: Ultimately, for some, managing Clouds will offer the appearance of control – dashboards, and real-time reporting mechanisms, all provided by Cloud Service Providers with the degree of detailed monitoring determining the costs incurred by the client.

For others, that will build and support their own enterprise cloud environments, the dynamic nature of cloud computing – with servers, networks, and storage dynamically showing up and disappearing from the environment, it will be a difficult and challenging model to manage; particularly if the organization does not adapt its legacy business management culture and approach, for the new environment.

Though by far, the greatest risk that I see is the failure to recognize the potential that lies within cloud computing to transform organizations.

In part 3 we will discuss the organizational challenges of innovation in the cloud.

-Tune The Future-

Read the original blog entry...

More Stories By Ray DePena

Ray DePena worked at IBM for over 12 years in various senior global roles in managed hosting sales, services sales, global marketing programs (business innovation), marketing management, partner management, and global business development.
His background includes software development, computer networking, systems engineering, and IT project management. He holds an MBA in Information Systems, Marketing, and International Business from New York University’s Stern School of Business, and a BBA in Computer Systems from the City University of New York at Baruch College.

Named one of the World's 30 Most Influential Cloud Computing Bloggers in 2009, Top 50 Bloggers on Cloud Computing in 2010, and Top 100 Bloggers on Cloud Computing in 2011, he is the Founder and Editor of Amazon.com Journal,Competitive Business Innovation Journal,and Salesforce.com Journal.

He currently serves as an Industry Advisor for the Higher Education Sector on a National Science Foundation Initiative on Computational Thinking. Born and raised in New York City, Mr. DePena now lives in northern California. He can be followed on:

Twitter: @RayDePena   |   LinkedIn   |   Facebook   |   Google+

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


Cloud Expo Latest Stories
Hardware will never be more valuable than on the day it hits your loading dock. Each day new servers are not deployed to production the business is losing money. While Moore’s Law is typically cited to explain the exponential density growth of chips, a critical consequence of this is rapid depreciation of servers. The hardware for clustered systems (e.g., Hadoop, OpenStack) tends to be significant capital expenses. In his session at 15th Cloud Expo, Mason Katz, CTO and co-founder of StackIQ, to discuss how infrastructure teams should be aware of the capitalization and depreciation model of these expenses to fully understand when and where automation is critical.
Over the last few years the healthcare ecosystem has revolved around innovations in Electronic Health Record (HER) based systems. This evolution has helped us achieve much desired interoperability. Now the focus is shifting to other equally important aspects – scalability and performance. While applying cloud computing environments to the EHR systems, a special consideration needs to be given to the cloud enablement of Veterans Health Information Systems and Technology Architecture (VistA), i.e., the largest single medical system in the United States.
In his session at 15th Cloud Expo, Mark Hinkle, Senior Director, Open Source Solutions at Citrix Systems Inc., will provide overview of the open source software that can be used to deploy and manage a cloud computing environment. He will include information on storage, networking(e.g., OpenDaylight) and compute virtualization (Xen, KVM, LXC) and the orchestration(Apache CloudStack, OpenStack) of the three to build their own cloud services. Speaker Bio: Mark Hinkle is the Senior Director, Open Source Solutions, at Citrix Systems Inc. He joined Citrix as a result of their July 2011 acquisition of Cloud.com where he was their Vice President of Community. He is currently responsible for Citrix open source efforts around the open source cloud computing platform, Apache CloudStack and the Xen Hypervisor. Previously he was the VP of Community at Zenoss Inc., a producer of the open source application, server, and network management software, where he grew the Zenoss Core project to over 10...
Most of today’s hardware manufacturers are building servers with at least one SATA Port, but not every systems engineer utilizes them. This is considered a loss in the game of maximizing potential storage space in a fixed unit. The SATADOM Series was created by Innodisk as a high-performance, small form factor boot drive with low power consumption to be plugged into the unused SATA port on your server board as an alternative to hard drive or USB boot-up. Built for 1U systems, this powerful device is smaller than a one dollar coin, and frees up otherwise dead space on your motherboard. To meet the requirements of tomorrow’s cloud hardware, Innodisk invested internal R&D resources to develop our SATA III series of products. The SATA III SATADOM boasts 500/180MBs R/W Speeds respectively, or double R/W Speed of SATA II products.
14th International Cloud Expo, held on June 10–12, 2014 at the Javits Center in New York City, featured three content-packed days with a rich array of sessions about the business and technical value of cloud computing, Internet of Things, Big Data, and DevOps led by exceptional speakers from every sector of the IT ecosystem. The Cloud Expo series is the fastest-growing Enterprise IT event in the past 10 years, devoted to every aspect of delivering massively scalable enterprise IT as a service.
As more applications and services move "to the cloud" (public or on-premise) cloud environments are increasingly adopting and building out traditional enterprise features. This in turn is enabling and encouraging cloud adoption from enterprise users. In many ways the definition is blurring as features like continuous operation, geo-distribution or on-demand capacity become the norm. NuoDB is involved in both building enterprise software and using enterprise cloud capabilities. In his session at 15th Cloud Expo, Seth Proctor, CTO at NuoDB, Inc., will discuss the experiences from building, deploying and using enterprise services and suggest some ways to approach moving enterprise applications into a cloud model.
Until recently, many organizations required specialized departments to perform mapping and geospatial analysis, and they used Esri on-premise solutions for that work. In his session at 15th Cloud Expo, Dave Peters, author of the Esri Press book Building a GIS, System Architecture Design Strategies for Managers, will discuss how Esri has successfully included the cloud as a fully integrated SaaS expansion of the ArcGIS mapping platform. Organizations that have incorporated Esri cloud-based applications and content within their business models are reaping huge benefits by directly leveraging cloud-based mapping and analysis capabilities within their existing enterprise investments. The ArcGIS mapping platform includes cloud-based content management and information resources to more widely, efficiently, and affordably deliver real-time actionable information and analysis capabilities to your organization.
Almost everyone sees the potential of Internet of Things but how can businesses truly unlock that potential. The key will be in the ability to discover business insight in the midst of an ocean of Big Data generated from billions of embedded devices via Systems of Discover. Businesses will also need to ensure that they can sustain that insight by leveraging the cloud for global reach, scale and elasticity. In his session at Internet of @ThingsExpo, Mac Devine, Distinguished Engineer at IBM, will discuss bringing these three elements together via Systems of Discover.
Cloud and Big Data present unique dilemmas: embracing the benefits of these new technologies while maintaining the security of your organization’s assets. When an outside party owns, controls and manages your infrastructure and computational resources, how can you be assured that sensitive data remains private and secure? How do you best protect data in mixed use cloud and big data infrastructure sets? Can you still satisfy the full range of reporting, compliance and regulatory requirements? In his session at 15th Cloud Expo, Derek Tumulak, Vice President of Product Management at Vormetric, will discuss how to address data security in cloud and Big Data environments so that your organization isn’t next week’s data breach headline.
The cloud is everywhere and growing, and with it SaaS has become an accepted means for software delivery. SaaS is more than just a technology, it is a thriving business model estimated to be worth around $53 billion dollars by 2015, according to IDC. The question is – how do you build and scale a profitable SaaS business model? In his session at 15th Cloud Expo, Jason Cumberland, Vice President, SaaS Solutions at Dimension Data, will give the audience an understanding of common mistakes businesses make when transitioning to SaaS; how to avoid them; and how to build a profitable and scalable SaaS business.
SYS-CON Events announced today that Gridstore™, the leader in software-defined storage (SDS) purpose-built for Windows Servers and Hyper-V, will exhibit at SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Gridstore™ is the leader in software-defined storage purpose built for virtualization that is designed to accelerate applications in virtualized environments. Using its patented Server-Side Virtual Controller™ Technology (SVCT) to eliminate the I/O blender effect and accelerate applications Gridstore delivers vmOptimized™ Storage that self-optimizes to each application or VM across both virtual and physical environments. Leveraging a grid architecture, Gridstore delivers the first end-to-end storage QoS to ensure the most important App or VM performance is never compromised. The storage grid, that uses Gridstore’s performance optimized nodes or capacity optimized nodes, starts with as few a...
SYS-CON Events announced today that Solgenia, the global market leader in Cloud Collaboration and Cloud Infrastructure software solutions, will exhibit at SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Solgenia is the global market leader in Cloud Collaboration and Cloud Infrastructure software solutions. Designed to “Bridge the Gap” between personal and professional social, mobile and cloud user experiences, our solutions help large and medium-sized organizations dramatically improve productivity, reduce collaboration costs, and increase the overall enterprise value by bringing collaboration and infrastructure solutions to the cloud.
Cloud computing started a technology revolution; now DevOps is driving that revolution forward. By enabling new approaches to service delivery, cloud and DevOps together are delivering even greater speed, agility, and efficiency. No wonder leading innovators are adopting DevOps and cloud together! In his session at DevOps Summit, Andi Mann, Vice President of Strategic Solutions at CA Technologies, will explore the synergies in these two approaches, with practical tips, techniques, research data, war stories, case studies, and recommendations.
Enterprises require the performance, agility and on-demand access of the public cloud, and the management, security and compatibility of the private cloud. The solution? In his session at 15th Cloud Expo, Simone Brunozzi, VP and Chief Technologist(global role) for VMware, will explore how to unlock the power of the hybrid cloud and the steps to get there. He'll discuss the challenges that conventional approaches to both public and private cloud computing, and outline the tough decisions that must be made to accelerate the journey to the hybrid cloud. As part of the transition, an Infrastructure-as-a-Service model will enable enterprise IT to build services beyond their data center while owning what gets moved, when to move it, and for how long. IT can then move forward on what matters most to the organization that it supports – availability, agility and efficiency.
Every healthy ecosystem is diverse. This is especially true in cloud ecosystems, where portability and interoperability are more important than old enterprise models of proprietary ownership. In his session at 15th Cloud Expo, Mark Baker, Server Product Manager at Canonical/Ubuntu, will discuss how single vendors used to take the lead in creating and delivering technology, but in a cloud economy, where users want tools of their preference, when and where they need them, it makes no sense.