CLOUD COMPUTING The cloud in 2012 – Where are we now? Where are we going? Cloud, innovations and implications Victor Garcia Toronto, December 3 rd, Lexpert Conference

Cloud and innovation Innovation demands: Systematics changes in business, processes and technology Changes in attitude and behaviour Changes in the use of resources and capital Serious commitment Can’t pretend to be innovative, while still thinking that old ways of doing things will work Does not make everyone happy Three types of innovations Efficiency innovations Sustaining innovations Empowering innovations Source: Harvard’s Clayton M. Christensen - New York Times, Nov /03/2012Lexpert Cloud Conference - (c) Victor Garcia2

“Efficiency” innovations Reduce the cost of making and distributing existing products and services Reduce the number of jobs required to accomplish a result Streamline processes – do more with less Improve profits but destroys jobs and does little for growth Examples: outsourcing 12/03/2012Lexpert Cloud Conference - (c) Victor Garcia3

"Sustaining” innovations Replace obsolete products and services Make available new, improved products and services Help advance invention and technology Create few jobs Example: electric or hybrid cars 12/03/2012Lexpert Cloud Conference - (c) Victor Garcia4

“Empowering” innovations Transform complex, costly products and ways of doing things Create jobs and economic growth Introduce simpler, cheaper products and methods Make products and services previously available to a few available to many Help level playing fields Example: the automobile 12/03/2012Lexpert Cloud Conference - (c) Victor Garcia5 Source: Harvard’s Clayton M. Christensen - New York Times, Nov. 2012

The Ford Model T example Changed the way people thought about, made and used transportation Introduced new technological, operational and financial models Made un-available products and methods available to the masses Changed the game “Changed how everything was made, officially kick-starting the American Industrial Age” Did not listen to all, nor did it try to make everyone happy “If I had asked people what they wanted, they would have said faster horses.” Did not make “all things” available to “all people” "You can have any color you want as long as it's black." Source: Henry Ford quotes and Edublogs quote 12/03/2012Lexpert Cloud Conference - (c) Victor Garcia6

Cloud – an “empowering” innovation Transforming Information Technology Direct improvement in the use of capital Clear and measurable objectives: Reduce the number of infrastructure components needed to accomplish a result Reduce the amount of energy required to obtain results Make complex hardware and software available to many Reduce the amount of capital required Provides measurable economic advantages of scale and scope Lowers costs, improves speed of service, expands operational flexibility, reduces risks in IT deployment However, it does not make everyone happy 12/03/2012Lexpert Cloud Conference - (c) Victor Garcia7

A bit of unhappiness for everyone Democratization of IT systems Must accept standard products and services Changing business model not welcomed by many IT companies Who is happy selling less than what they used to? Important requirement and pain point: standardization How many organizations are willing to change their processes to fit standard solutions? Previous accepted dogma: Easier and better to customize software than change business processes New reality: Easier and cheaper to change processes to take advantage of standard software 12/03/2012Lexpert Cloud Conference - (c) Victor Garcia8

"The cloud is robin Hood" Bridging the gap between rich and poor Products and services that were only available to a few now available to many Keeping the cost of storing and processing information down Unlocking new opportunities for Emerging Economies Countless benefits in increased access to cheap data storage and processors Enabling low-and middle-income people and entities to compete in the global economy Quotes: In the future, cloud computing technologies will be an economic stabilizer As reported by researchers and authors at Univ. of San Diego 60% of the world’s server workloads will take place on virtualized cloud servers by 2014 Predicted by Gartner 12/03/2012Lexpert Cloud Conference - (c) Victor Garcia9

Benefits, but also complications New rules, new competitors, new approaches Major changes to business strategy and tactics required i.e. data and application location, creation and use of big data, mobility requirement Cloud deployments are delivering greater investment returns with a shorter payback period When compared to traditional on-premise delivery option - Delloitte Speed of execution is key Cloud allows faster scaling, rapid transformation, more reach New views regarding risk, security, processes and policies New policies required to enable people to benefit from the cloud Source: 12/03/2012Lexpert Cloud Conference - (c) Victor Garcia10

Cloud and the 21 st century legal professional Forecast: a new generation of legal entrepreneurs Need: novel ways to adapt to the needs of clients Influencing drivers : 1.More sophisticated clients armed with more information and greater market power to rein in costs 2.A globalized economy, which increases the complexity of legal work while exposing U.S. lawyers to greater competition 3.Powerful information technology that can automate or replace many of the traditional, billable functions performed by lawyers Cloud, cloud and cloud Source: “The future of the legal profession: expert predictions for 2012 and beyond” - John Grimley, Dec. 21st, 2011 (American Bar Foundation’s Lawyer Statistical Report) 12/03/2012Lexpert Cloud Conference - (c) Victor Garcia11

Can’t bring a horse and buggy to an automobile race (and expect to win) New business and governance models for technology, risk, security and capital use New models for maintenance, ownership, resiliency and redundancy Practical governance and policy that enable faster reaction times Need to protect the business while enabling competition and growth Opportunity to demonstrate value in a new world 12/03/2012Lexpert Cloud Conference - (c) Victor Garcia12

Thank you 12/03/2012Lexpert Cloud Conference - (c) Victor Garcia13