This report features a full run down of Hatfield Philips’ case study and the two round table sessions from The Cloud Circle’s 2nd Executive breakfast Club event on June 7, 2011

Following on from the success of our inaugural Executive Breakfast Club  (EBC) event back in March, The Cloud Circle returned on June 7 to Altitude 360 on the 29th floor of Millbank Tower in Westminster, London, for the second in the series.

After thick grey fog denied us the venue’s stunning panoramic view of the London skyline at our first EBC, we were delighted to arrive this time to serene blue skies interspersed only with the odd, white, fluffy cloud. With all of

London’s most inspiring landmarks in plain view stretched out around us, we were all set to surpass the heights hit previously in our voyage into the Cloud. A capacity audience of 50 delegates, representing some of Britain’s biggest blue chip companies and public organisations, joined us for the journey.

Session one: Keynote from Hatfield Philips – Cloud without boundaries – the sky’s the limit

See the bottom of this article for a video of Aoun's keynote

Following a full English breakfast to fuel proceedings, the attendees sat down to hear from Aoun Shamsi, head of business solutions at commercial loans servicing company Hatfield Phillips, about his organisation’s first steps into the Cloud with Microsoft Dynamics.

Though the company, founded in 1997, employs only 120 people it has very high level of workflow, managing around £30bn worth of assets. The industry it operates in means that the company has a high level of data and paperwork.

But sharing that data consistently and allowing different people to work on the same set of information at the same time was a concern for the company. A decision was made to seek a Cloud based CRM system. The company opted for Microsoft Dynamics, delivered by distribution and installation partner Maxima, because it saw the benefit in working with interfaces and systems that employees were already used to using.

Shamsi says moving processes to the Cloud is no different from any other technology project that a company embarks on. “Just because it’s Cloud doesn’t mean it has to be new and special and different,” he says. “You have to perform the same needs, risk and ROI analysis that you would with anything else.”

He says that Hatfield Philips initially sought to calculate the cost savings it could find to justify the initiative but quickly realised that it would be difficult to accurately isolate and define the benefit to the bottom line. The Cloud is essentially the vehicle for efficiencies, both in cost and processes– “it allows you more time within the organisation to do things better,” says Shamsi.

Whether or not cost savings will be realised remains to be seen at this stage but the move has allowed the company to move more of its spend into operational budgets rather than capital expenditure.

Shamsi says it is important to understand fully before you begin your data and data flows, any security and compliance issues connected with it and the way that it is used and managed in-house. The journey to the Cloud moved the company to much better practice procedures for handling data. Though this made for a lot of work to begin with, it saved potentially holding the project up if the issues weren’t recognised promptly.

Cultural shift

Hatfield Philips had to consider the best way to deal with cultural issues and avoiding objections from within the company. Shamsi says that although workers had been using some systems that essentially operate through the same mechanism as the Cloud processes for years, some initially put up barriers to what they saw as a major cultural shift when the words ‘Cloud’ and ‘change’ began to be bandied around.  To alleviate this, the project directors were chosen from within the business department, rather than IT, and had no technological background.

After they were appointed to the role, Shamsi said it was vital he and his team, along with technology partner provided them with everything they needed at the right time. The business users built the case for the project and took ownership of the concepts around this. This ensured that the project stayed on track and the cultural objectives were addressed.

Security concerns were also expressed around the company. “People were scared of it rather than trying to do anything about it,” says Shamsi. “But in reality, there are security issues with any project you undertake, whether it’s Cloud or not, you just have to work at them.”

However, he admits that another problem that is commonly perceived – pertaining to latency issues and the time that it takes to transport data – could have some grounds. Here, Shamsi advises, it is a case of ensuring that the provider you choose is up to the task and can prove their credentials.

Aoun Shamsi’s top tips for anyone looking to embark on a Cloud journey were:

-    Strong communication and collaboration from the outset and at each stage it is vital to keep everyone on board

- what is the culture of your company?

-    Sell the vision early, even if you are only going into the Cloud in a small way. Get buy-in and resolve the misunderstandings

-    Understand your business data and the integration  and compliance issues involved

-    Stay focussed on the business requirements  – it’s easy to get distracted by new

-    Ensure you take supplier due diligence before you begin – it sounds simple but lots of companies don’t do it with IT projects which they don’t fully understand. Concentrate on SLAs and security – are they up to the task?

-    Don’t jump on the bandwagon – do only what makes sense for your business

-    The Cloud is no different to any other project – don’t be afraid to ask questions about what you don’t know

Session two: Round table 1 – Data, Security and Jurisdiction

After Aoun’s case study we moved straight into our first round table session of the day, focusing on jurisdictional issues. There were four individual round tables for delegates to choose from, hosted by Google, EMC, IMGROUP and Maxima in association with IBM. At the end of the session, a representative presented back to the wider group on the discussions at each table.

At the IMGROUP table, the discussions centred around the use of standards for data compliance. Delegates agreed that a secondary benefit of a Cloud project is that it offers the impetus to induce best practice around data. Using the US-EU Safe Harbor Principles, for instance, forces you to address where your data is being stored and whether that data will be protected adequately when it is moved to any specific international territory. Likewise, the criteria for ISO27001 – the Information Security Management System standard – ensures that you build an up-front and open policy based on informed consent; giving people all of the relevant information and allowing them the option to control how you use their data.

This led naturally into concerns over the US Patriot Act – the anti-terrorism legislation which allows the US government and police to access private data more easily than before. The table discussed whether there are any special ways that this relates to this Cloud or is just another element of global business and whether or not the exercising of the Act would conflict with other international duties and obligations. While they did not envisage problems, the fact that the point was raised proves the wide scope of issues that people are inspired to consider when weighing up Cloud initiatives.

The discussions ended with the notion that not every permutation of what could happen needs to be resolved before a Cloud project begins. Companies should keep in mind that the obvious mind-set to go in with is using Cloud services only where it makes sense to do so for each individual company – the Cloud isn’t dogma; it’s an extension of choice.

The Maxima table busied itself with talks of Service License Agreements (SLAs). One point that was raised early on was that whatever the SLA includes, it won’t cover you fully for your losses should something go wrong – the measures will be damage limitation, you’ll have to consider exactly what you stand to lose in the very worst case scenario.

This led the table to consider who ‘owns’ the risks – an SLA could just as easily absolve the provider of blame as it does provide assurances for the user.  Additionally, does the SLA ensure performance, or simply availability? Some questioned the inclusion of monetary credits being awarded to compensate for when things go wrong – there isn’t really any substitute for slick, unbroken service.

The table ventured that supplier’s liability insurance should be set against their service as assurance for clients.

Meanwhile, the Google table started by discussing the ways you can ensure that data has been destroyed properly when you are required to do so, both on and off site. Data, they noted, can be fairly robust – it’s not always immediately obvious to the experts, let alone the lay IT technician, where exactly data is backed up and how many copies of it there are, or the efficiency of data wipes. What is recoverable and what isn’t? With that in mind, how can one be comfortable that the relevant legislation and regulations are being met?

And what if the provider outsources certain services itself to third parties? All of a sudden, geographically or not, the data, and the control of it, appear to be a long way away.

In the end, does it all comes down to risk and reward analysis like in other areas of business or are the risks too much of an unknown quantity when it comes to Cloud computing?

The table identified that there are three types of trust: blind; reliance on third party agencies; and investigative. In that order, they’ll give you increasing levels of peace of mind but complete faith might be the new Holy Grail.

Last but not least, the EMC table were considering the balance between supplier priorities and end user needs.

One of the key things to consider is the agreement in the SLA over Recovery Point Objective and Recovery Time Objective in the event of service disruption. Many around the table advocated the use of a third party expert to check and mediate on SLAs. To mitigate the effect of potential problems one attendee recommended the use of escrow services

One attendee from a large multi-site organisation revealed that his company has now committed to a policy of no more new centres in-house going forward. All agreed that a well-defined IT and business strategy such as this is pivotal to the success of a Cloud project before it is initiated. It gives a clear set of guiding principles for what is to be achieved and helps to identify which suppliers to connect with to ensure that you can compare ‘apples with apples’.

“The devil is in the detail,” summarised EMC’s Elliot Young. “But it’s the Cloud; it’s supposed to be easy. Keep it simple.”

Session 3: Round table 2 – The future of the Cloud

After a networking coffee break and a chance to reflect on what we’d heard so far, we returned to our tables for the second round table session of the day, this time concentrating on prospective future developments and innovations in the Cloud.

Reporting back first once again, and this time discussing mobile technologies and tablet use for Cloud applications, the IMGROUP table said there was one word to summarise the future here: inevitable. This is despite the fact that at the moment none at the table were using their devices for anything other than email, in terms of business applications.

Those from fast moving consumer goods industries (FMCG) were the staunchest backers of the potential of mobile devices, as they allow two-way interaction with their target markets quickly and easily by synchronising with other platforms such as TV, radio and the Internet. They said a shift has occurred in the industry and people will no longer accept anything other than access to systems wherever they are – they are unwilling to make special arrangements to seek it out. And the concept is alien to ‘digital natives’.

This trend began with consumers is now beginning to be mirrored on the business front. Increasingly, decision makers want real time access to business intelligence wherever they are and they want to be able to influence remotely as well as oversee. However, delegates said they feel major infrastructure developments are required and there are concerns about bandwidth.

Discussing Cloud gaps in innovation, the Maxima table identified the main drivers of development from a user perspective as increased mobility and the liberation of IT workers to become business facing and focussed on innovation.

The table drew up a wish list for the Cloud which would support the utilisation of applications:

-    Local synchronisation so that work is not truncated when connectivity is lost, i.e. on public transport or in the countryside;

-    Effective management tools for hybrid Clouds which allow decision makers to clearly understand and out their Cloud portfolio, freeing them to strategise effectively;

-    Partners are required for ‘piecing together’ individual Cloud application subscriptions, rather than having to manage them separately;

-    Contracts that scale down as well as up.

The Google table meanwhile were addressing the question of the innovations required for a large scale public Cloud push and when this is likely to happen.

The first thing to emanate was that it is unlikely that a single solution is unlikely to provide everything that a company needs for the particular process in question, especially for SMEs and niche companies. Therefore, a greater degree of collaboration and open source post development needs to be established with a green light for third party add-ons, in much the same way as browsers allow different search functionality and tool bars to be added, or digital media players allow for different codecs to support a wider range of file formats.

However, the main thing delegates hit upon was that the ‘perception of the Cloud itself needs to be clearly defined and understood to a greater level than it is currently for widespread adoption to ensue. Most people are already using unencrypted Cloud services like public email systems – Hotmail and Gmail for example – but they remain distrustful over things which are associated by word with the ‘Cloud’.

“This presents us with a dichotomy,” said John Watson of Google. “We don’t want to use the Cloud but we already are.”

As the final group to present back, the EMC table had been considering where the Cloud will be in five years’ time. The table predicted that as Cloud adoption builds up and spreads across private, community, public and hybrid systems, connecting host systems will arise to bring everything together from a user interface context – they dubbed this the ‘InterCloud’.

The group made the following additional predictions:

-    Links to be developed to manufacturing systems as these will never be able to be moved fully to Cloud based systems;

-    Regulations to be redeveloped radically to ‘catch up’ with technology;

-    Cloud to become completely transparent and 100 per cent self-service – promoting debate over whether this makes it easier or harder for systems to be attacked – and easier to cost up;

-    Smoother provider-to-provider systems to be established with no break in service, much like utilities switches
Until next time

A short panel debate featuring representatives from all four sponsors then brought a formal close to the day, with many attendees opting to stay on for a while to enjoy a sandwich and a further chat with peers while taking in the stunning and inspiration view of the London skyline before them.

Giving her thoughts on the morning’s proceedings, Emma Taylor, founder and managing director of The Cloud Circle, said: “When we hosted our first Executive Breakfast Club here back in March it was really overcast. Mother Nature probably thought she was doing us a favour with the scenery but they were the wrong type of clouds. Though the event went excellently well, it felt like we were holding it in a ski resort.

“Today, it was perfect – blue skies laced with rays of sunshine. A few fluffy white clouds were the only things blocking the view of about twelve square miles of London’s amazing skyline. And the event followed suit.

“I thought Aoun Shamsi’s keynote case study this morning was very well delivered. He described the journey in a way in which the other delegates could put it in the context of their own businesses and he offered some very sound tips for those that aren’t as far into their projects. The roundtable sessions which followed offered a chance for a highly focussed and interactive debate in which everybody got a chance to contribute and learn close up from their peers.”

The next Executive Breakfast Club takes place in November. Keep an eye on www.thecloudcircle.com for further details. The next Cloud Circle event is our 6th Forum on July 7 in Victoria, London. If you’d like to attend, please email kristin.matthews@thecloudcircle.com.
 

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