1. This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other authorized recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates. © 2012 Gartner, Inc. and/or its affiliates. All rights reserved. Bob Gill The Cloud and Higher Education

2. Moving Beyond Simply Turbo charging Through “Digitalization” Not simply “the same, but faster or more efficiently”: -Analog leaders are executives who apply IT to create online versions of current institutional "business" models. -Digital leaders are technology-savvy executives who create new value and funding using digital technology to build new digital institutional "business" models that transform value, funding and performance Managing first-order effects Striving for second- and third-order effects

3. Sustaining / Digitizing vs. Disruption / Digitalization In Higher Education 2

4. IT Market Clock For Higher Education 3

5. IT Hype Cycle For Education 4 Technology Trigger Peak of Inflated Expectations Trough of Disillusionment Slope of Enlightenment Plateau of Productivity time expectations Plateau will be reached in: less than 2 years2 to 5 years5 to 10 yearsmore than 10 years obsolete before plateau As of July 2012 Student Retention CRM Quantum Computing Campus App Store BPO Affective Computing SIS International Data Interoperability Standards Big Data Open-Source SIS Wireless aaS MOOC Learning Stack Gamification Social Software Standards BYOD Strategy Adaptive Learning Digital Preservation of Research Data COBIT User-Centric IAM Mobile-Learning Low-Range/Midrange Handsets Web-Based Office Productivity Suites Cloud HPC/CaaS Open-Source Middleware Suites EA Frameworks Social Learning Platform for Education Open-Source Financials Mobile-Learning Smartphones ITIL E-Textbook Cloud Email for Staff and Faculty Hosted Virtual Desktops Virtual Environments/Virtual Worlds Open-Source Learning Repositories Lecture Capture and Retrieval Tools Emergency/Mass Notification Services Media Tablets SaaS Administration Applications Enterprise Architecture IT Infrastructure Utility Unified Communications and Collaboration Intellectual Property Rights and Royalties Management Software 802.11n Game Consoles as Media Hubs E-Portfolios Social Media in Education Mashups Open-Source Portals Self-Publishing Service-Oriented Architecture Organization-Centric IAM Student Enrollment CRM

6. The Cloud Deployment Conundrum Server Virtualization Consolidation Capital expense Distributed Virtualization Flexibility and speed Operational expense, automation Less downtime Private Cloud Self-serve agility Standardization IT as a business Usage metering Public Cloud Capital expense elimination Increased flexibility (up and down) Innovative application services While networked virtualization has paved the way for private cloud, many business users and consumers have bypassed IT and proceeded directly to public cloud resources IT

7. Cloud Service Broker (CSB)* How Can IT Remain Strategic? By Facilitating the Selection and Adoption of Internal and Externally-sourced Cloud Resources Film Forecaster System Infrastructure Services Business Proc. Serv. Information Services Application Services App. Infrastructure Services Mgmt. and Security Cloud Enablement vCloud IaaS PaaS SaaS BPaaS Cloud Brokerage Cloud has a significant impact on every aspect of IT and how users access applications, information, and business services Providers are developing offerings across multiple segments, making market segments increasingly interconnected

8. Which _aaS Model Is Most Attractive? It Depends on Who You Are Infrastructure as a Service Platform as a Service SaaS BPaaS Infrastructure as a Service Platform as a Service SaaS BPaaS Public Cloud Private Cloud Public Cloud Private Cloud Enterprise IT Viewpoint RoW Viewpoint Enterprise IT sees the cloud as an extension of its technology strategy The rest of the world sees the cloud as a consumer service platform

9. Why Are Hybrid Clouds the Inevitable Future? Private Cloud Self-service Service standardization IT as a business Usage-based metering Hybrid Cloud Blend of capital and operational cost Control Economics Architectural flexibility Public Cloud No capital cost Total usage flexibility Low barrier to entry

10. Hybrid Cloud Adoption May Progress From the Inside Out … Stage 1: Server Virtualization Consolidation Capital expense Stage 2: Distributed Virtualization Flexibility and speed Operational expense, automation Less downtime Stage 3: Private Cloud Self-serve agility Standardization IT as a business Usage metering Stage 5: Hybrid Cloud Cost for steady-state loads Flexibility for peak loads Stage 4: Public Cloud Capital expense elimination Increased flexibility (up and down)

11. … Or From the Outside In Stage 2: In-house data center, colocation, managed services, and so on. Inter- connection Stage 1: Public IaaS Business Seeks to leverage existing IT assets!

12. Public Cloud Is Not ALWAYS the Most Cost-effective Option Monthly Cost Work Being Done Private IaaS Public IaaS Capacity Meets Demand Cost is Capped but so is the Capacity! Wasted CapEx Opportunity Cost Or Opportunity Lost!

13. Economics May Favor Private Cloud For Inelastic Predictable Loads, So … Economics Favor Fixed Capacity Intermittent Peaks Don't Warrant Overbuilding "Buy the Base, Rent the Spike …" … Which Favors a Hybrid Model!

14. N = 119 Base: Organization currently uses internal IT sourcing Does your organization have a documented IT sourcing strategy? Don't know 7% 22% Yes 71% No Will You Be Able to Leverage the Expanding Choices in the Education Ecosystem?

15. Recommendations: Delivering on The Institutional Mission How do you strategize when your competition goes from analog to digital? -Acquire a language for change that enables you to communicate the value of IT -Through visualizing the impact of Digitalization and Disruptive Innovation on the education ecosystem in general and your institutional business model in particular. How do you execute when every commitment ties down resources? -Build Flexibility For The Future -Through a sourcing strategy based on leveraging your Service catalogue and the Exostructure Digitalization Disruptive Innovation Services Exostructure

16. Recommended Gartner Research  The Expanding Education Ecosystem: A World of Choice Jan-Martin Lowendahl, Bill Rust (G001931515)  Digitalizing the Business Mark P. McDonald Andy Rowsell-Jones (G00233511)  Predicts 2012: Technology Fuels Education on the Move Bill Rust and others (G00227430)  Agenda for Higher Education, 2012 Jan-Martin Lowendahl, others (G00228835)  Cool Vendors in Education, 2012 Jan-Martin Lowendahl, others (G00232015)  Higher Education Sourcing Survey, 2012: Increasing Interest in OSS and Cloud Jan-Martin Lowendahl (G00233976) For more information, stop by Gartner Solution Central or email us at solutioncentral@gartner.com.solutioncentral@gartner.com