Presentation Transcript

1. Cloud Computing: Moving From Hype to Reality

   Ben Pring Research Vice President
2. The Cloud —Still Beauty in the Eye of the Beholder The hype around the cloud obscures the very real sea-change occurring. The cloud is the platform. Cloud computing disrupts business models, operating principles and competitive strategies. Transition between eras is never smooth. The cloud is your future. I've looked at clouds from both sides now From up and down, and still somehow It's cloud illusions I recall I really don't know clouds at all -Joni Mitchell, "Both Sides Now" Photo Source: Tipiro
3. Cloud Computing:How Did We Get Here? Focus on "the Cloud" Focus on "Computing" A revolutionary approach emerging from evolutionary change Data Center Design Web 2.0 and Mashups Virtualization Automated Provisioning Cloud Subsidized Applications Services and Web API/Arch. Web Real-Time Infrastructure Googleplex Internet Information and Browser UI Grid Web Platforms Consumer Applications Service Management Connectivity 1990 2000 2010 2020 1980 Global-Class Design Utility Models SaaS From the Enterprise From the Web
4. Gartner's Definition of Cloud Computing and the Critical Attributes of Cloud Services Gartner defines cloud computing as “a style of computingwhere scalable and elastic IT-related capabilities are provided” as a service' to customers using Internet technologies.“ Five Attributes differentiate cloud computing 1 Service Based Consumer concerns are abstracted from provider concerns through service interfaces. 2 Scalable and Elastic Services scale automatically & dynamically to add or remove resources as needed. 3 Shared Services share a pool of resources to build economies of scale. 4 Metered by Use Services are tracked with usage metrics to enable multiple payment models. 5 Internet Technologies Services are delivered through use of Internet identifiers, formats and protocols.
5. Cloud Computing Service Models The consumer accesses, configures and/or extends the service and builds everything needed above the service boundary — or just uses the service. BPO Information Feeds Packaged Applications Service providers can be service consumers at the same time. Middleware Data Center Business Services Information Services Software as a Service Platform As a Service Cloud Enablers Infrastructure as a Service The provider optimizes everything below the service boundary, and hides complexity from the consumer.
6. Cloud is a Broad TopicFocus is Critical to Reduce Confusion Consuming Cloud Services (IaaS, PaaS, SaaS, Information, Process) Deliver Cloud Services 1 1 Implementing Cloud Computing Environments 2 Deliver Traditional Software, Hardware, Appliance, C&SI, Outsourcing and/or Managed Services 4 Enterprise Workstreams 3 Vendor Approaches 2 Manage, Secure & Govern Cloud Services & Solutions (public, private, hybrid) 3 Deliver Specialized Software, Appliances C&SI and/or Managed Services Developing Cloud-Based Applications and Solutions (Migrate, Enhance, Innovate) 4 3
7. Mainstream Large Enterprise Use Cases, Public Cloud Services Through 2012* A Development/Test and Projects E F D C B Prototyping/Proof of Concept Web Site & Application Serving SaaS (Analytics, E-Mail, Collab.) Select Custom Applications Parallelized or HPC Workloads Base Use Case Unpredictable and/or volatile workloads Project based workloads Rapid provisioning User self-service Leverage economies of scale and grid execution Other Key Considerations Manageable data risk Simple connection to internal applications Service licensing in place * Excludes Information & Business Services
8. Leading Indicators of Accelerating Change Client/server, on-premise-based license sales have stagnated and are stagnate Major supply-side consolidation has occurred and is ongoing SAP has announced no more "big" product releases Salesforce.com has proved the SaaS concept Service models are no longer on the "lunatic fringe" but are an absolute imperative Try getting VC funding for a C/S product
9. Leading Indicators of Accelerating Change #2 Groupon $950m in VC funding (largest ever) “Cloud” #1 search/enquiry term for Gartner in 2010 (second year in a row) Microsoft to now lead with SaaS Muglia departure to create legacy free leadership for Cloud Federal Government CIO/CTO issued Cloud mandate Motorola – “not why SaaS but why On Premise”?
10. Leading Indicators of Accelerating Change #3 Gartner AD Dec 2010 conference – 95% agreement with the statement “customization should be the last resort not the first” Zuckerberg – Time’s 2010 “Person of the Year” Zuckerberg – “the next Bill Gates” Marc Benioff Creation of Open Data Center Alliance CSC – 75% of RFP’s have some element of Cloud
11. expectations time Peak of Inflated Expectations Technology Trigger Trough of Disillusionment Plateau of Productivity Slope of Enlightenment Years to mainstream adoption: obsolete before plateau less than 2 years 2 to 5 years 5 to 10 years more than 10 years Beyond CRM, Beyond AWS … Platform as a Service (PaaS) Cloud Computing Elasticity Cloud/Web Platforms Cloud Storage Public Cloud Computing/the Cloud Cloud Service Integration "In the Cloud" Security Services Cloud-Computing Security Concerns Over the course of the next six years, enterprises will spend $112 billion cumulatively on SaaS, PaaS and IaaS combined. Private Cloud Computing Compute Infrastructure Services Real-Time Infrastructure Cloud Computing for the Enterprise Cloud APaaS Enterprise Portals as a Service DBMS as a Cloud Service Cloud E-Mail Dedicated E-Mail Services Browser Client OS Cloud-Enabled BPM Platforms Hybrid Cloud Computing Virtual Private Cloud Computing Cloud Testing Tools and Service Cloud Application Development Tools Security as a Service Integration as a Service Community Cloud Cloud Management Platforms Cloud-Driven Business and IT Services Cloud Advertising Virtualization Cloudbursting/Overdraft SaaS Sales Force Automation Cloud Services Brokerage SaaS Cloud Parallel Processing IT Infrastructure Utility Enhanced Network Delivery As of July 2010 From "Hype Cycle for Cloud Computing, 2010," G0001557
12. Cloud E-mail and Collaboration Market % penetration Penetration/Diffusion Model AdoptionbyIndustry Earlier Higher Education Manufacturing Retail Hospitality … Later Healthcare Providers Financial Services Defense Intelligence Shoulder 60 Midpoint 40 20 Toe 10% 0 2007 2012 2017 2022 Early running: Microsoft leads (but BPOS-D limited)Google is No. 2, with IBM and Cisco in the wings Microsoft's advantage: Installed base and minimal change for users. Graphic Source: The Cloud E-Mail and Collaboration Services Market, G00205184 (23 July 2010)
13. Cloud Market Adoption Gaining Scale SaaS PaaS IaaS $mn $bn $bn SaaS establishing itself as new norm for the software industry. Slightly slower spending on all IT over the next few years. Scale of deployments growing; multithousand seat deals are increasingly common. SucessFactors won with a 420,000-seat deal with Siemens. Platform Infrastructure a high profile area. Salesforce, VMware and Microsoft adding credibility in an early market. Integration as a service (part of brokerage) is growing – (e.g., IBM acquisition of Cast Iron). Greater interest than expected. 2013 market to be worth $8 billion (up from $6.8 billion forecast last year) and the 2014 market to be worth $10 billion.
14. Cloud Computing Delivery Models Hybrid (Internal + External) Company A Company A Company A Company A Provider X User Z Company B Company A Company B CustomPrivate Cloud Packaged Private Cloud PublicCloud ExclusiveCloud CommunityCloud Implementing a Cloud Service HW, SW, Data Centers Manage the Implementation May Be Outsourced or Delivered as a Managed Service Consuming a Cloud Service No Hardware, SW or Data Centers Manage the Service May Use Brokers to Facilitate Use of or Add Value to the Service
15. Why Private Cloud Computing? However … Cloud is immature Many enterprise service needs can't be met yet, and security, service-level issues still exist. IaaS vs. PaaS/SaaS IaaS can be a tactical solution when a strategic change may be needed. Cloud is evolutionary Private cloud computing offers a stepwise migration to cloud computing — hybrid will become the norm. Private cloud is hard Automation, processes, funding model, service catalog, culture, politics — all are difficult. Scale isn't everything Quality, security, service levels and specific market needs will drive many solutions. Private cloud isn't cheap Re-architecting infrastructure and data center management requires investment. Cloud isn't always cheap Service providers may have scale, but they also have profit needs.
16. Real-Time Infrastructure Sprawled Component Orientation Virtualized Layer Orientation Automated Service Orientation Policies Cloud- enabled Optimization Workloads Data Resources Identities Provisioning Availability Asset, power costs down, flexibility up Service levels and agility up Services 2002 2002 through 2012 2010 through 2020 The Evolution of Infrastructureand Private Cloud Computing
17. Private Cloud Trends * 5% Don’t know Maybe 24% 80 Where are you with private cloud computing? (n=81) Processes Yes 66% 14% No plans * Funding/ chargeback 62 16% 2012 Plans No 10% 30% 2011 Plans 56 Culture 35% Implemented Will your enterprise be pursuing a private cloud computing strategy by 2014? (n=655) 10 20 30 0 Service desc 46 40 Politics Heavily virtualized 24% Hybrid cloud 35% 36 Technology What are your three biggest challengesin creating a private cloud computing service? (n=167) D/T N-P Prod Customerrelationship * 31 Private cloud 41% * 11 Not sure By 2015, how would you describe you virtualization progress (choose one)? (n=55)
18. Are You Ready For Cloud Computing? Organizational Assessment Outsourcing Models and Vendor Management Governance and Investment Models Roles, Responsibilities, Policies, Guidelines Run, Grow and/or Transform the Business Technology Readiness Assessment Data Center, Infrastructure and Operations Architecture Data-Readiness Assessment Data Definitions and Security Levels Consuming Public Cloud Services Implementing Private Cloud Computing Environments Manage, Secure & Govern Cloud Services Developing Cloud-Centric Applications and Solutions
19. Strategy: How are you approaching cloud computing? The only bad cloud strategy is no cloud strategy Project teams, financial models, assessments Governance: When, where, why and how will you consume public or private cloud services? Not everything will not move to external services Determine how IT can act as a cloud service broker Infrastructure and operations: To what extent do cloud models drive design of your next-generation data centers Private cloud is more than use of virtual servers Security: What can be done to realistically assess risks and mitigate the security, regulatory and compliance challenges? Realistically assess and stratify risk Carefully embrace new trust models Application development: What is your cloud application strategy? Look beyond hosted applications to cloud optimized applications What Does a CIO Need To Do?
20. Thank You!
21. Benefits Agility — Capability and capacity on demand Reduced operational complexity, cost Shift from capital to operational cost Variable operational cost models Leverage provider scale and Innovation New cloud-enabled business solutions Challenges Security and compliance Legal and accounting uncertainties Lack of transparency and control Technical issues and service assurance Integration and process Integrity Greater cost over time for many use cases High & Clear Embrace Public Consider Private Benefit Low or Uncertain Experiment Avoid Low & Manageable High or Unmanageable Challenges This Year Next Year Timing Longer Direct IT Indirect Direct Business A Cloud Computing Decision Model: Start With A Business Impact Analysis Business Impact Analysis Scope
22. Choosing the Right Path Looks easier … Infrastructure as a Service Easier: To encapsulatean application, but… Harder: New applications will require traditional development techniques — even for the cloud Tactical: The right solution for a static/legacy application — but not for an evolving, dynamic application Looks harder … Platformas a Service Harder: Requires applications to be cloud-aware and cloud-enabled, but… Easier: To develop and maintain new applications leveraging cloud services Strategic: Enables cloud-enabled scaling and flexibility
23. Modify existing service procurement models to address cloud computing: Build on standard self-service terms and conditions Establish a range of trust models. Selective review of provider implementation, potentially through integrators or "cloud brokers" Examine service interface format and granularity Establish governance, trust and security models: Involve legal, finance, procurement, and business professionals in the cloud project team Service-level guarantees, operational metrics Realistically assess risk and trust models Make the IT organization your "cloud broker" Develop Contingency Plans Up Front Exit, Extension, Migration, Integration, Interoperability Three Important Best Practices For Cloud Service Consumption Pick-List or Programmatically Defined Service Levels Cloud Computing Traditional Off-Premise Negotiated and Contractually Defined Service Levels
24. Public Cloud Planning Assumptions Today less than 50% of public cloud initiatives are initiated by IT and IT controls less than 1/3 of the related budgets. By 2012, enterprise concerns over lock-in and standards will supplant security as the biggest objections to external cloud computing. By 2013 community and exclusive cloud resource delivery models will mature to address concerns with public cloud access and sharing By 2013 60% of ISVs and 40% of IT organizations will have completed production software projects using services of a PaaS. Through year-end 2013, many enterprise SaaS applications will have a higher total cost of ownership after three years versus on-premises alternatives. By 2015, 50% of all new application ISVs will be pure SaaS providers By 2015, 50% of Global 1000 enterprises will rely on external services for at least one critical revenue-generating process. Through 2020, the most common use of cloud services will be hybrid architectures combining on-premises and cloud-sourced capabilities.
25. What Does Private Cloud Look Like?
26. Private Cloud Architecture Self-service/programmable interface Subscriber management Identity and access management Access Management Service Management Service catalog Service-level management Service demand and financial management External Management APIs Service Governor Configuration management Performance management Security Resource Management Physical and virtual resources Component managers Resources
27. Small Vendors Adaptive Computing DynamicOps Eucalyptus Systems newScale Platform Computing Univa Large Vendors BMC Software CA (acquired 3Tera) Citrix (acquired VMLogix) HP IBM Microsoft Novell Quest (acquired Surgient) Tibco (acquired DataSynapse) VMware No Vendor "Has It All" for private cloud — Expect to Integrate Functionality From Many
28. Private Cloud Computing Success Factors and Best Practices Virtualization must be brought in from the "Wild West" throughoperational controls and risk exposure mitigation New roles needed — solution architects, automation specialist, service owner, cloud capacity manager, IT financial/costing analyst Systematic top down or opportunistic approaches focused on a specific pain point are viable paths to private cloud computing Standardization is the hard part — of software stacks/versions, of architectural patterns, of infrastructure components, of processes Once standardized, the result is agility — faster time to market and faster maintenance — and lower operational and capital costs Expect to invest in solution integration and potentially development of functionality not available in packaged software or appliances Change is Hard; it's much more than Technology
29. Private Cloud Planning Assumptions Through 2012, IT organizations will spend more on private cloud computing investments than on offerings from public cloud providers. By year-end 2012, half of the Global 100 will have at least one service that they consider to be a private cloud-computing service, using VMs as a basic building block. By 2015, the majority of virtualized deployments will evolve to support some private cloud computing capabilities, but less than 20% will be "complete" private cloud deployments. Through 2015, more than 90% of private cloud computing deployments will be for infrastructure as a service. By 2015, six vendors will account for at least 50% of private cloud computing revenue. The majority of private cloud computing services will evolve to leverage public cloud services in a hybrid mode by 2015. Through 2015, less than 2% of legacy applications will be able to "burst" into the cloud while concurrently running in the data center
30. Securing Private & Public Cloud:Thinking and Acting Differently Adaptive Security Capabilities Virtualized security controls Security administrators program policies, not devices Security policy based on logical attributes Context-aware — policy is assigned via the context of the workload and the information supported Virtual Private Network Technologies Provide isolation from other tenants Extend network addressing space Enable security and monitoring tools to be extended from the enterprise Alternatively, place security controls in the VM to move with the workload Amazon's VPC No dedicated machines (yet) Custom network layer with Xen hypervisor for isolation
31. ServiceProvider ServiceProvider Service Provider The Next Major Battleground:Cloud Ecosystems and Brokers Ecosystem: A business model where a company or entity provides an set of services and/or a managed implementation as a foundation to build/host, deliver and/or support delivery of a cloud service. Brokerage: A business model where a company or entity adds value to one or more (public , private or hybrid) cloud services on behalf of one or more consumers of those services. Infrastructure Platform Management Security Service ProviderY Service ProviderX Service ProviderZ ServiceProvider ServiceProvider ServiceProvider Pricing Svc. Delivery Support SLA Mgmt. Insure Context Security Provisioning Billing/Support Aggregate Arbitrate Customize Integrate Govern ServiceProvider BrokerageRole Service Consumer Service ConsumerA Service ConsumerB Service ConsumerC ServiceProvider ServiceProvider ServiceProvider
32. Manage, Secure & Govern Cloud Services IT Becomes A Service Broker Virtual Private Access Management Public Resources Public Resources Public Resources Public Resources Private Cloud Resources Virtual Private Clouds Virtual Private Clouds Virtual Private Clouds Private Cloud Private Cloud Private Cloud Service Management Service Governor Resource Management Automated Service Delivery Placement Optimization
33. Cloud Computing: Private or Public? The majority of private cloud computing services will evolveto leverage public cloud services in a hybrid mode by 2015. Go Hybrid Choose public Proven Total costs are less Meets requirements: Service-levels Security Legal/data ownership Regulatory compliance Failure remediation/disaster recovery (including if the provider goes out of business Choose public Proven Total costs are less Meets requirements: Service-levels Security Legal/data ownership Regulatory compliance Failure remediation/disaster recovery (including if the provider goes out of business