VISIT2008 Cloud Computing

Cloud computing trends:meet the groundGlen Koskela, Director Technology Strategy

VISIT 2008 © Fujitsu Siemens Computers 2008 All rights reserved2

Trend forecast through 2012: heavy cloud coverageThe top IT trend among press, analysts, conferences…

Consumers: already big, unnoticed, in public online services

Not all enterprises are fully subscribing: constraints vs. benefits

Notion of “private clouds” or “on-premises clouds” has begun only recently(together these yielded only 127 Google search hits on Nov 7th, 2008)

69% of online users are making use of cloud computing

The Cloud Wars: $100+ billion at stake

$0.15 per GB/month

$0.06 per session hour $0.10 per

CPU hour

What is it? What does it do? How to benefit? How it evolves?


Dynamic data centerService-oriented infrastructure

Managed infrastructureVirtualizationGrid computingUtility computing

OutsourcingOn-demand computing

Centralized SaaS architectures Web servicesCommoditization

Internet as delivery methodAutomation

Social networkingProliferation of devices

Globally integrated enterprise

What is cloud computing? What is new and different?A concept with many elements, some new, some old

Current state-of-art in the evolution and convergence of many seemingly independent trends

Decoupling of the source of consumption of IT from the source of production

Industrialization of IT

Everything in IT can become affected by as-a-service

Much of what was within the corporate boundaries is being increasingly served up from outside


Need for new concepts: IT is at tipping pointOperational issues have IT costs at break point

Rising costs of IT operationsContinuous increase in volumes24/7 availability of IT

Business changes have IT resources at break point

Budgets being cutDifficulty in deploying new servicesSurge of compliance requirements

New technologies have time-to-market at break point

Unpredictable workloadsDevice diversity, real-timeRich application capabilities

The IT delivery model needs to be transformed

Energy issues have data centers at break point

Rising energy costsPower and thermal issues inhibit growthEnvironmental guidelines


Long-term trends and ch-ch-ch-changes

Flex

ibili

ty/ (

busi

ness

agi

lity)

Economies of scale

Dynamic

Service-oriented

Cloud (as-a-service)

Rationalized

Physical consolidationApplication consolidationData center consolidation

VirtualizationAutomationEnergy usage

Dynamic poolsProvisioningMetering

Shared resource poolsInfrastructure-as-a-serviceUsage based pricing

IT infrastructure becomes stateless through technologies and services


Value proposition of cloud computingCharacteristics

Dynamic, on-demand, at any scale

Shared resources

User and programming interface for self-service deployment

Non-trivial realiability and QoS

Virtualization and automation

Unified technology stacks

Quickly leverage new technologies

Reduction of energy costs

Owned and managed by provider

Business benefits

Business driven service management

New levels of economics

Simplified management

Improved business agility

Increased flexibility

Effective & creative service deployment

Lower barrier to launch new services

Improved manageability

Reallocating resources to innovation

Usage-based payment

VirtualizationProgrammatic

Scalable

On-demand

Shared

Usage billing

Unified stacks

Combined effect of technologies, economies and new capabilities


Clouds are factories for IT services on an industrial scale

Elastic Compute Cloud (EC2)Simple Storage Service (S3)

Own IT IaaS cloud PaaS cloud SaaS cloud

Hardware

Dev’t/Runtime

Application

Dev’t/Runtime

Application

Hardware

Application

HardwareDev’t/Runtime

HardwareDev’t/Runtime

Application

VMware vCloud

Sharing is achieved through resource virtualization in IaaS, while in PaaS/SaaS the applications and databases support multi-tenancy


Not all clouds are similar – what do they provide?Infrastructure aaS

Managed infrastructure with virtualized computing, storage and networking servicesMiddleware systems for on-demand resource pool and provisioning management

Platform aaSManaged development and runtime platform for web-scale services and application componentsMiddleware and lifecycle management for development, integration and application server deployment

Software aaSManaged multi-tenant web-based business, office or social networking applicationsApplication ecosystems and component integration toolsSubscription management

Insert detaileddesign here...

The layers being delivered as-a-service allow different flexibility


IT benefits of cloud computingFirst order benefits

Cost

Flexibility

Time-to-market

Alignment

Energy

Service oriented

Market facing IT architecture

Second order benefits

Virtualization

Consolidation

Service management

Automation

High availability

Disaster recovery

Live migration changes

Cost transparency

First and second order benefits – all in one!


Clouds are being used successfully in Web 2.0 market

Invention Discovery

Idea

Innovation

Entrepreneurs

Commoditization

A business is not a free spirit like a consumer

Online services are driving the adoption, growth and new business models


A dose of reality to turn down the noise level Security… sending data outside company firewalls

Privacy… all logons and identities are remote

Platform dependency… lock into proprietary stacks

Reliability… and communication around outages

Portability… data formats and program calls

Physical location… many nations’ laws

Speed.. application latency

Audit… lack of audit capability and governance

Integration… with internal IT infrastructure

Public clouds are not an option for every enterprise


“Pure form” cloud computing will be rare among enterprises

IT will not become 100% as-a-service and not for all

There is a need for delivery flexibility, project by projectProducts and servicesPackaged solutionsManaged infrastructureInfrastructure-as-a-service

Customers decide which IT infrastructure and delivery model is best for themDepending on their particular needs, means and skillsRedefining to what depth they consider information technology as their core and to what level they want to involve their strategic partners in their IT

No one infrastructure delivery model would be optimal for all or every time


How much multi-tenancy would you tolerate?

Sharing and multi-tenancy basically means a trade-off between customer’s sovereignty and costs

Clouds come with a risk that same resources accommodate unanticipated partners & events

How much multi-tenancy can enterprises and public organizations tolerate?

Shared location? Shared infrastructure? Shared operating environment? Shared application server? Shared database? Shared program calls? Shared database admins?

Customers want to know what sort of wrappers public clouds are putting around their services for things like security and policy enforcements


Ground level judgmentCloud is a collection of disembodied resources and services mediated by cloud provider

If IT becomes a borderless utility, it will not matter where your data and programs are stored and executed

Legal and political issues are tricky – even more than with cross-border logistics and taxes

Clouds are prisoners of local laws, no global standards in areas such as privacy

Speed and willingness of authorities from different countries to co-operate

Regulations from several governments forcing online firms to retain data

Enterprise data centersare evolving to improveefficiency

Public clouds

Public clouds providegeneral consumer andbusiness services outside the firewall

Private clouds fornew delivery modelsinside and outsidethe firewall

Enterprise IT

IaaS

What about on-premise or private clouds that act as a cloud to multiple divisions under the corporate umbrella?


Thinking of cloud computing in terms of how, not whereCost savings – new yields in economies of scale

Pay for what you use

Resource flexibility

Increased speed to market

Improved service levels and quality rules

Self-service deployment

Reduce lock-in and switching costs

Enhanced customer experience

Constant application & data availability

Accountable, and policy-based

Dynamic provisioning (expand) andde-provision (shrink) of IT capacity

Executing and completing tasks within the acceptable timeframe (SLA)

Shared infrastructure with ability to ensure data is segregated

The ability to smack someone on the head when something fails

More rules for sharing, more governance influencing sharing, combined with the economics and value of sharing


Private cloud computingMore and more enterprises are expected to build private cloud infrastructures to take advantage of benefits without the risk

IT services are offered to a closed networkof corporate or division offices, and can include business partners and value-chain entities

Cloud-like IT infrastructures that operate behind firewall or use a quarantined partition inside a public cloud

On-premises cloudsOff-premises private clouds

Data/applications do not leave the enterprise

“A fundamental message is that the future of infrastructure looks a lot like private cloud computing.”

Thomas Bittman’s blog, Gartner, October 11th, 2008

Infrastructure-as-a-service: on-premise or off-premise private clouds


Off-premises, off-premises, private and public....

Publiccloud

Private cloud(off-premise)

Private cloud(off-premise)

Private cloud(on-premise)

Private cloud(on-premise)

Off-premise

On-premise

Capacity

Costs

Sharing

Flexibility

Private clouds come with known trust boundaries, are auditable, provide qualified services and policies, are based on SLAs,…


Clouds are immensely complexThe key layers:

Computing and storage infrastructureRuntime environment for applications

Application servicesPeriphery to meet the end-users

Implementing a cloud service can be like pouring concreteinto the company


From complex to dynamic, service-oriented, and as-a-service

New delivery models: dynamic, efficient, responsive, massive scalable, rich diversity, industrialization, managed…

Traditional Rationalized & dynamic

Service-oriented Cloud (Infrastructure aaS)

SAP

Web

Office

Backup

Database

BIFileserver

SAPWeb

OfficeBackup

DatabaseBI

File

SAPWeb

OfficeBackup

DatabaseBI

File

From IT focus on technologies and resolving design constraints to complete concentration on business services and innovation

Dynamic, industrialized, virtualized, automated, managed, scalable,…


Infrastructure-as-a-service: clouds to enterprisesCompelling future

For finished IT services

For attached IT services

For IT service integration

Acquisition model = service based

Business model = usage based

Access model = Intranet or private

Technical model = dynamic

Delivery model = flexible

I am interested in results, not how IT is built

I only want to pay for what I use

I can optimize according to core and context, mission-critical and non-critical systems

I can scale up or down dynamically, as need arises

No single IT delivery model fits all my projects

Next level in IT efficiency gained by unified technology stacks,sharing resources and industrializing services


Summary – a next generation service, not a toolkit technologyCloud computing will change:

The way IT is used and delivered

The ways software is used or licensed

The ways data centers are built and run

Enterprises will not be running IT fully off the Internet cloud

But most enterprises (of all sizes) will come into touch with some form of cloud

Cloud computing as IaaS will become part of the 21st century IT

We aspire to offer most benefits of cloud computing to our customers

We do this via our Dynamic Infrastructures: as a product, as a solution, as a service

Thank You!