white paper Enabling the Digital Enterprise Through Community Cloud A new model of cloud services allows conglomerates and communities to evolve and thrive in a complex technology landscape. The rate of change and evolution of new technologies is happening much faster than ever before, with new purely digital enterprises emerging in various industries so quickly that it creates immense pressure for traditional businesses to evolve faster than they’ve done in the past. Today it’s common for organisations to be “left behind” after only a few months or years, leaving them in a position where they need to catch up in order to mitigate a perceived lack of innovation in the market, and, most importantly, among their consumers. This need for unprecedented agility is a real challenge for organisations with aging, archaic infrastructure and application landscapes that need to balance creating new digital services with an existing technology environment that comes with high maintenance costs. It’s in the context of this business environment that cloud computing emerges as an enabler for organisations making this transition. In this paper we discuss community cloud infrastructure platforms, the opportunity they create for organisations by supporting the evolution to the digital enterprise, and discuss the challenges and considerations for organisations making this change. The Context to Community Cloud Social and behavioural change, particularly among millennials who are emerging as a force for transformation and are expected to comprise over 50% of the US working population by 2020, are driving the need for a different approach to how enterprises deliver services. While the perceived divide between the motivations of these digital white paper | Enabling the Digital Enterprise Through Community Cloud natives and their parents, the baby boomers , is not as great as commonly thought, the reality remains that when consuming services, users today expect to be able to do so in a manner that reflects the National Institute of Standards and Technology (NIST) definition of cloud computers— regardless of what those services are.1 Furthermore, loyalty to service providers across industries is fast eroding as agile organisations enter the market and are able to address the needs of consumers more quickly. As organisations continue to evolve as digital enterprises, increasingly they are able to cross the traditional boundaries of their core business. For example, Amazon, an online retailer, now provides video content through Amazon Prime, and Google Wallet now provides a mobile payment system that gives users the opportunity to consolidate their sources of funding and make payments from those multiple sources using a single mobile application. The traditional rules of business are being impacted by the emergence of competition from completely unexpected quarters, and it’s increasingly difficult for organisations to predict where their future competition will come from. Small businesses are turning to nontraditional lending sources such as 1“The NIST Definition of Cloud Computing,” National Institute of Standards and Technology, September 2011 crowdfunding or peer-to-peer lending to finance their growth. Tech-savvy and convenience-minded millennials are nearly twice as likely to choose non-traditional payment companies as people over the age of 50. A survey of 908 U.S. banking customers by FICO showed millennials choose these payment methods thanks to mobile support and ease of use.2 Defining the Community Cloud There are a multitude of considerations for the traditional business, and a number of hard realities to face as they consider what it means, and what it takes, to emerge as a digital enterprise. As Gartner stated: “A digital business is not the decade-old concept of e-business in a new wrapper. It is a radically different and more disruptive change.”3 By transforming the very foundation of mobile productivity and data management, cloud computing has the potential to transform entire communities and improve the quality of life for citizens. However, cloud adoption has been relatively slow in some regions and industries because of concerns about security, return on investment and network limitations. 2“Millennials Ready For Nontraditional Lending and Payments,” PYMTS, April 2014 3 “What the Board of Directors Needs to Know About Digital Business,” Gartner, 24 March 2014 While cloud technology is a game changer for enterprises and local government offices that are consistently budget-strapped, private clouds may be too complex or expensive to set up in-house and public clouds may not fit their performance, compliance or regulatory requirements. A new model of delivering cloud services, community cloud, may bridge this gap and help businesses reap the benefits of cloud without enduring the real or perceived risks of public cloud. Community cloud is a dedicated private or hybrid cloud set up to service a limited set of individual tenants, or a “community” made up of entities that share a common risk profile, specific security and compliance requirements or source of funding. For example, financial services conglomerates providing a suite of services to consumers, healthcare providers across multiple disciplines servicing a single patient, local municipalities or governments responsible for service delivery, or educational institutions providing services to new, existing and former students and research partners. Benefits of Community Cloud Community cloud allows organisations to leverage the benefits of cloud while enabling them to meet technical and regulatory needs that public cloud can’t meet. The collective 02 white paper | Enabling the Digital Enterprise Through Community Cloud bargaining of the community improves buying power, while the smaller footprint enables green computing by consolidating services in a single location. Community cloud also eliminates the threat of rogue purchase of public, private and hybrid clouds by frustrated business entities. Community cloud can also benefit individual citizens, microenterprises, SMBs and the community at large by: • Helping organisations provide better and more accessible services through mobile technologies such as apps. • Connecting services, assets, information and people on one platform. • Boosting economy by providing an enterprise-grade platform to SMEs to deliver services. • Improving service delivery, protection of personal data and emergency response by providing central access to information. • web and mobile apps can be deployed. Overcoming Perceived Barriers of Community Cloud • Reinforcing security through segregation by risk profile. • Managing infrastructure by community. • Eliminating the problem of rapid asset depreciation and inflexibility in all sectors. The largest barriers to cloud adoption are concerns about security. In reality, an organisation’s current scenario is likely far less secure than people think. It’s critical to change the perception that data and workloads have to reside in the on-site datacentre in order to be safe. Community cloud is built around the specific security, privacy and compliance requirements of the communities using it. In community clouds, security policies and compliance requirements can be applied consistently across the platform and applied to requirements of the specific environment. This ensures security is adequate and enforced consistently across the community. Another benefit of offering a secure cloud service from a single point is the ability to reduce uncontrolled shadow or rogue IT. Community cloud can further improve security by incorporating a firewall per instance or residence of the cloud, and can be assessed against ISO standards. Benefits Specific to Public Sector • Enabling efficient use of capital funds by allowing them to release taxpayer funds from investment in IT infrastructure to long-term development of infrastructure that services citizens, such as roads, schools and hospitals. • Offering a mechanism to attract tech-savvy entrepreneurs into the locality. Having a platform allows municipalities to emphasise business innovation. • Giving public visibility into government actions and programmes by creating a platform from which government can consistently and effectively communicate with citizens. Helping businesses that are struggling for relevance find nontraditional entries to markets through accessible platforms. • Enabling fast, multiple solution deployment in situations where there is no time for complex infrastructure strategy. • Creating an integrated and collaborative platform that supports mobile apps and social platforms. • Removing burden from IT staff, or staff functioning as IT staff. • • Removing concerns about how quickly environments, solutions, Creating a greater ability to gather information directly into the platform from multiple sources or touch points. Another challenge for community cloud is the difficulty of gaining internal support and stakeholder buyin. The reality is that the only way to avoid the crippling complexities of modern IT is to move from owning resources to consuming resources. This transforms capex investments to more reasonable opex expenditures. Community cloud is a more agile platform that brings ongoing benefit 03 white paper | Enabling the Digital Enterprise Through Community Cloud instead of a depreciating, aging asset, which is important as IT departments make the critical move from being cost centres to being service providers. Community cloud enables IT departments to provide better services to the organisation and the organisation’s clients. It also allows the organisation to refocus IT staff on critical value-add projects and avoid massive capex and resource drain. A third barrier is lack of service adoption. Currently, service adoption in the cloud is a combination of infrastructure, mail, video content and some back-office applications. Lack of full-fledged IT-OT integration is a barrier that the Internet of Things/ Internet of Everything will likely help businesses overcome. Technology adoption both internally and by consumers is also traditionally difficult. A holistic, managed approach is required for successful rollout. Partnering With Dimension Data Dimension Data’s OneCloud Partner Programme enables service providers and community providers to rapidly build their own branded cloud offerings. Partners benefit from expedited time to market with Dimension Data’s global Managed Cloud Platform™, full end-to-end enablement services, and access to Dimension Data’s Global Cloud Exchange. Dimension Data offers a 99.999% enterprise-grade SLA backed by a 100% service credit cap across all geographies, and the full concept-to-launch enablement programmes guarantees partner satisfaction by taking IT through a detailed and robust process of evaluation. Many organisations have established shared service centres, and Dimension Data works with these entities to help them evolve as a viable alternative to external cloud providers. The Dimension Data cloud platform and enablement services allow the Shared Service Centre to choose between establishing itself as a profit centre (either internally or externally), or remain a cost centre but improve chargeback and/or showback to business divisions. This unique enablement offering goes far beyond those found in most standardised programmes, ensuring joint engagement with all critical business functions and allowing partners to take their cloud services to market competently. Dimension Data helps partners educate cloud consumers, whether municipal departments, business units, operating companies, SMEs or constituency, and assists establishing a rollout process that ensures adoption and acceptance by the community. They will also identify and solve challenges regarding power, environmental impacts, alternative sources of energy, cooling, and more. Dimension Data takes responsibility of infrastructure as a service and backup as a service so partners can offer other services on top of their basic platform. Dimension Data OneCloud Partner Programme offers community providers the opportunity to leverage powerful cloud orchestration technology and a global cloud platform and to deliver cloud services to their unique community, effectively and efficiently, from the datacentre of their choice. This model avoids the technical complexities, project delays, and costs associated with acquiring, building, integrating, and managing your own cloud infrastructure. Dimension Data offers a fully managed cloud, with white label capabilities, and a comprehensive enablement programme to ensure success in your community. 04 white paper | Enabling the Digital Enterprise Through Community Cloud Dimension Data’s OneCloud Partner Programme With a broad suite of cloud services, a single global cloud platform, and advanced cloud orchestration and management technologies, Dimension Data enables our partners to bring to market a broad suite of cloud services in a matter of weeks. After completing an enablement programme, you will have a public or private cloud service customised with your own brand identity. About Dimension Data Founded in 1983, Dimension Data plc is an ICT services and solutions provider that uses its technology expertise, global service delivery capability, and entrepreneurial spirit to accelerate the business ambitions of its clients. Dimension Data is a member of the NTT Group. 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