Insurance & Technology

WST_Digital_Issue_2014_04_v3

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T he headline on the 2013 repor t from Everest Group and Cloud Con- nec t on financial ser vices cloud adoption sums up the state of understand- ing of the technology economics (and other factors) of public versus private cloud: "The Public Cloud Conundrum — Are Buyers Get- ting It Wrong?" A few more statements from the report are also worth a mention: • "There seems to be an overall preference for private clouds across workloads …" • "… We wonder if buyers are overestimating the challenges in public cloud adoption." • "There is a significant case for the industry to educate buyers about the business case for public cloud …" Going beyond surveys and perception, a technology economics perspective adds valu- able dimension to this discussion. First, it appears that a dominant industry trend is to move from today's state of main- frames and distributed computing to: 1. Private clouds within the enterprise data- center, which then moves to 2. Managed private clouds in the enterprise datacenter, which then moves to 3. Hosted private clouds in a third-party datacenter, which then moves to 4. Shared cloud services across enterprises, which then moves to 5. Public cloud services. If organizations aren't exactly following this pattern, they typically are planning some varia- tion of this road map. Using this as a model, we can start to overlay some aspects of technol- ogy economics — but first we need a defini- tion for cloud, private cloud, and public cloud. The National Institute of Standards and Tec hnology's (NIST) cloud definition seems to capture the es- sence of cloud: "Cloud comput- ing is a model f o r e n a b l i n g ubiquitous, convenient, on-demand network access to a shared pool of configurable com- puting resources (e.g., networks, servers, stor- age, applications, and services) that can be provisioned ... with minimal management effort or service provider interaction." Add on the notion of "private" and you get an environment that is not subject to large- scale sharing and typically is housed within an enterprise datacenter behind a firewall using today's models (or evolves into 2 and 3 above). Add the notion of "public" and you are in the land of Amazon's AWS, IBM's cloud services, or those of other providers. Clearly there are myriad variations of private and public cloud April 2014 9 www.wallstreetandtech.com Previous Table of Contents Next Previous Table of Contents Next The move to public cloud in financial services has been slow, but economics shows it is about to speed up. By Dr. Howard Rubin Public Vs. Private Cloud: Dollars And Sense technologyeconomics Dr. Howard A. Rubin is a Profes- sor Emeritus of computer science at Hunter College of the City Uni- versity of New York, an MIT CISR Research Affiliate, a Gartner senior adviser, and a former Nolan Norton Research Fellow. He is the founder and CEO of Rubin Worldwide. DOWNLOAD PDF

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