The-evolution-of-the-private-cloud

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The-evolution-of-the-private-cloud

  1. 1. INFRASTRUCTUREThe Evolution of the PrivateCloudBy George GilbertCo-Presented by:
  2. 2. INFRASTRUCTURE Prepared for George Gilbert (george.gilbert@techstrategypartners.com)Table of Contents Table of Contents 2INTRODUCTION 4Roadmap to the Private Cloud 5 Hardware 5 Software 6The Battle for the Private Cloud 7Economic Benefits 8DEFINITIONS 9FROM DEDICATED TO SHARED INFRASTRUCTURE 12The Evolution of Enterprise Management Software 14Extending Virtualization to Storage and Networks 16THE EMERGENCE OF PRIVATE CLOUDS 17Enabling Self-Service 18Extending Private Clouds with Public-Cloud Resources 20 Software Appliances 21 Distributing Software Appliances 22From Application-Aware Management . . . 23. . . to Management-Aware Applications 25Evolution of the Private Clouds © 2010 Giga Omni Media | May 2010 -2-
  3. 3. INFRASTRUCTURE Prepared for George Gilbert (george.gilbert@techstrategypartners.com)VENDOR IMPLICATIONS 27An Important Role for the Big Four 27 Integrating infrastructure layers 28 Integrating intergenerational products 28 Tying together multiple applications in an end-to-end service 29VMware vs. Microsoft 30 The Battle for the Data Center Operating System 32 The Battle to Manage Packaged Applications 34The Wild Card: Oracle 36CUSTOMER IMPLICATIONS 37ABOUT TECHALPHA 40ABOUT GIGAOM PRO 40Evolution of the Private Clouds © 2010 Giga Omni Media | May 2010 -3-
  4. 4. INFRASTRUCTURE Prepared for George Gilbert (george.gilbert@techstrategypartners.com)IntroductionEvery 15 years or so, the IT world undergoes a tectonic shift. Technological forcescollide and grind against one another, creating an upheaval that leaves the landscapeirrevocably changed. The latest such shift is currently underway: the transition tocomputing as a service, also known as cloud computing. This change promises to makecomputing more like a utility such as electricity or telephony — users plug in and getthe resources they need without much manual effort on the part of service providers.Cloud computing has brought these benefits to Internet titans like Google,Salesforce.com and Amazon, and to their customers. Traditional enterprise IT has longaspired to the same advantages, but with a crucial distinction. Businesses want theoption of greater control over governance, security and management that comes withusing their own infrastructure.For the better part of the last decade, cloud computing within the enterprise appearedelusive, short of totally replacing the hardware and software infrastructure to resemblelarge public web sites. Then came server virtualization, pioneered by VMware in theearly part of the decade. At first, virtualization’s ability to tie disparate servers into aunified pool was used only for software development and testing. But gradually, it hasbecome apparent that the technology was mature enough to deploy more widely.Suddenly, private clouds began to appear realistic.This report is neither a comprehensive recipe for building a private cloud nor acomplete review of all the products and vendors involved. Rather, it is a roadmapoutlining the technology’s likely evolution, starting with the bottom layer in Figure 1.Readers familiar with cloud computing concepts at the infrastructure level will find theparts of the report that review lower layers of the IT stack somewhat remedial. Theyare there to set the context for the more forward-looking sections that describe howhigher-level layers are likely to evolve.Evolution of the Private Clouds © 2010 Giga Omni Media | May 2010 -4-
  5. 5. INFRASTRUCTURE Prepared for George Gilbert (george.gilbert@techstrategypartners.com)Figure 1: IT is built in layers, each of which is evolving as cloud computing matures. Custom SAP App ISV App Mgt Application Frameworks Mgt JEE, .NET, LAMP, Spring Security Application Servers MoM Oracle Weblogic, Windows, IBM Mgt Websphere, Tomcat, also SQL DBMS Manager Of Operating Systems Mgt Managers Virtualization Mgt Typically HP, BMC, IBM, CA Hardware Mgt Source: TechAlphaRoadmap to the Private CloudAlthough server virtualization works with existing infrastructure, new productstailored specifically for virtual environments can make it even more powerful. Theseproducts include both hardware and software.HardwareOn the hardware side, Cisco and HP are pioneering a new class of integrated hardwarethat offers three novel capabilities:  Each chassis contains a mix of all infrastructure components with built-in management software that allows administrators to manage a single unit rather than individual servers, storage and networking gear.Evolution of the Private Clouds © 2010 Giga Omni Media | May 2010 -5-
  6. 6. INFRASTRUCTURE Prepared for George Gilbert (george.gilbert@techstrategypartners.com)  Because virtual machines (VMs), not servers, are the fundamental element of management, the infrastructure is VM-aware. It can reconfigure itself to follow VMs around the resource pool, something that was never necessary with physical servers.  The hardware is configurable on demand. This allows applications to operate as though they were running on dedicated infrastructure tuned to their individual service level requirements.SoftwareUltimately, though, the special sauce for cloud computing in the enterprise will bemanagement software. Application and infrastructure administrators will be able toagree on an application’s required service level and then let the software configure andoperate itself with minimal intervention.This evolution is likely to occur in several distinct steps. Today, for the most part,systems management software has only limited control over applications running inVMs. Administrators setting up applications to meet their service levels can only tunethe underlying infrastructure. But VMs are evolving to carry around the deploymentand operational requirements of the applications they contain, and managementsoftware is evolving to read them. Once that change is complete, management softwarewill need to be able to look inside the VM, take the pulse of the application itself andrespond appropriately. At that point, the management software can be said to beapplication-aware.Ultimately, applications must be able to understand, and to some extent control, theirown operational needs. That way, they could communicate interactively withmanagement systems to meet their service level objectives. Such applications can besaid to be management-aware. For this to happen, both ISVs such as IBM, Microsoft,Evolution of the Private Clouds © 2010 Giga Omni Media | May 2010 -6-
  7. 7. INFRASTRUCTURE Prepared for George Gilbert (george.gilbert@techstrategypartners.com)Oracle and SAP and custom application developers using frameworks like JEE, LAMP,.NET and Spring will need to build manageability into their applications.With these capabilities in place, IT would be able to operate on a self-service model.Administrators, developers and application owners would have access to resources andapplications on demand. Hardware infrastructure teams would define how developersor application administrators could use their resources; developers would define howapplication administrators could use solutions delivered on their platforms; andapplication administrators would define how end-users could use their applications.This would bring IT closer to the point where developers, infrastructureadministrators and application administrators could agree on each application’snecessary quality of service (QoS), and then set it and forget it.The Battle for the Private CloudTwo vendors, VMware and Microsoft, are actively working toward implementing thesesoftware changes. Each is following a distinct strategy in what is shaping up to be aDavid-and-Goliath battle to own the technology at the heart of the private cloud.VMware is trying to make the traditional server OS irrelevant by redefining the layersof the IT stack and sandwiching the OS between the virtualization layer and theapplication platform. (It acquired SpringSource last August for this purpose.) Thiswould let VMware put a cut-down Linux OS kernel between the virtualized hardwareand the applications, making Windows irrelevant as a server OS.Meanwhile, Microsoft aims to keep the virtualization and application layers firmlyfused to Windows. It brings significant advantages to this effort — especially a decade-long head start in application-aware systems management through its Systems Centertechnology and .NET application framework.Evolution of the Private Clouds © 2010 Giga Omni Media | May 2010 -7-
  8. 8. INFRASTRUCTURE Prepared for George Gilbert (george.gilbert@techstrategypartners.com)But there is a dark horse in the race. Oracle is attempting to control the entire IT stack,squeezing total cost of operations to a bare minimum. A single-vendor approach all theway down — from application to chips and spinning disk drives — will allow thecompany to make favorable trade-offs not open to other vendors.Economic BenefitsThe prospect of private clouds comes along at an opportune moment. In the first greatera of computing, roughly from the 1960s through the 1980s, enterprises relied onmainframes for all their computing needs. This changed dramatically as a second eradawned in the 1990s, when ever-increasing numbers of individual servers took overtasks once performed by highly integrated mainframes. Initially, this change broughttremendous savings in capital expenses, as businesses no longer needed to invest inbig iron, but instead could buy much more cost-effective small servers, dedicatingthem to individual applications. However, as the numbers of servers grew, the task ofmanaging the landscape of dedicated but heterogeneous infrastructure became anoverwhelming expense. Figure 2 illustrates how overwhelming the cost ofinfrastructure maintenance has become relative to investment in new applications.Figure 2: Infrastructure maintenance cost crowds out other investments, particularly inapplications. Source: VMwareEvolution of the Private Clouds © 2010 Giga Omni Media | May 2010 -8-
  9. 9. INFRASTRUCTURE Prepared for George Gilbert (george.gilbert@techstrategypartners.com)Private clouds promise to liberate businesses from this upward cost spiral. In itsultimate implementation, a private cloud would deliver the efficiency of cloudcomputing combined with the control and security of internal infrastructure. Userswould gain access to infrastructure, platforms or complete applications simply byplugging into IT. The armies of administrators once necessary to manage numerousdistributed silos of specialized hardware and software would be replaced by automatedprocesses running on a single pool of resources. Applications and infrastructure wouldlargely run themselves, fulfilling most computing needs with the "lights out.”Streamlining infrastructure operations and management costs would boost IT’s abilityto build, buy, and absorb new applications. The vision of private cloud computingwould become a very productive, cost-effective reality.DefinitionsThe term cloud computing has come to encompass much of the new activity in the ITindustry, giving it different meanings depending on context. Borrowing heavily fromthe definition supplied by the National Institute of Standards, this report defines cloudcomputing as having several distinguishing characteristics, three service models, andtwo deployment models.Distinguishing characteristics:  Resource pooling allows compute, storage and network infrastructure to be shared and dynamically assigned among users and their applications.  On-demand self-service allows a consumer, whether an IT administrator, developer, or application user, to provision services without requiring interaction with the provider.  Elasticity allows services to be rapidly provisioned and scaled up or down as needed.Evolution of the Private Clouds © 2010 Giga Omni Media | May 2010 -9-
  10. 10. INFRASTRUCTURE Prepared for George Gilbert (george.gilbert@techstrategypartners.com)  Metering measures increments of time and capacity, allowing both service providers and consumers to balance cost and QoS.Service models:  Infrastructure as a Service (IaaS) provides IT administrators and developers with self-service access to shared pools of compute, storage and networking resources. The consumer, whether an administrator or developer, can deploy any software, such as operating systems and applications. Consumers can control the software they deploy but they don’t manage the underlying infrastructure.  Platform as a Service (PaaS) provides a programming platform and tools for developers, who can build and deploy applications without having to worry about managing the infrastructure. Quoting an excellent definition by Billy Marshall, founder of rPath, “PaaS allows application developers to build applications in the cloud without ever having to worry about hardware acquisition and configuration, software installation, configuration, maintenance, scalability, backups, and so on. They just sign up and start building, deploy with the push of a button, and pay for their usage as they go.”  Software as a Service (SaaS) gives consumers access to applications. Consumers may have some ability to configure applications to fit their requirements, but they don’t control the operation of the application or bear the associated IT overhead. Most SaaS vendors run a single, shared instance, which is also called multi-tenancy. However, vendors can opt to manage and deliver one instance per customer, as Oracle does with its On Demand applications. In this case, the vendor must take care to ensure that the cost to serve each customer remains competitive.Deployment Models:  Private cloud is a term that’s often used interchangeably with IaaS. However, it’s worthwhile to draw a distinction. IaaS refers to the hardware infrastructure.Evolution of the Private Clouds © 2010 Giga Omni Media | May 2010 - 10 -
  11. 11. INFRASTRUCTURE Prepared for George Gilbert (george.gilbert@techstrategypartners.com) A private cloud extends IaaS with software that manages performance, availability and security via automated provisioning, deployment and management. A private cloud is operated for the use of a single organization, but it is not limited to the physical boundaries of an enterprise’s data center. Rather, it operates within the security boundaries of a single enterprise, allowing workloads to both move and grow on demand (Figure 3).  Public cloud refers to the same arrangement when it’s owned by a service provider and available to the broader public. Figure 3: A private cloud runs on infrastructure enclosed within a firewall or VPN, not necessarily within the physical boundaries of an enterprise. Source: TechAlphaEvolution of the Private Clouds © 2010 Giga Omni Media | May 2010 - 11 -
  12. 12. INFRASTRUCTURE Prepared for George Gilbert (george.gilbert@techstrategypartners.com)From Dedicated to Shared InfrastructureAlthough existing applications are designed to work on either shared or dedicatedinfrastructure, traditionally they have run on dedicated infrastructure. IT managersfreeze-dry each application vertically on top of its own infrastructure; i.e., they install iton a specific set of specially configured servers, making sure they have the right dataand storage connectivity and often devoting dedicated network storage even thoughthe storage unit was designed to be shared.The reason comes down to management. Freeze-drying offers the best way to ensurethat applications live up to guaranteed QoS levels. The trade-off is that dedicatedinfrastructure is extremely labor-intensive to maintain. This is because the manyapplication silos become many management silos (Figure 4). Moreover, dedicatedinfrastructure often becomes highly fragmented as many different vendors’ productscongeal into the supporting infrastructure.Figure 4: Dedicating infrastructure to each application helps to guarantee quality of servicebut results in a fragmented landscape that is very costly to manage. Source: TechAlphaEvolution of the Private Clouds © 2010 Giga Omni Media | May 2010 - 12 -
  13. 13. INFRASTRUCTURE Prepared for George Gilbert (george.gilbert@techstrategypartners.com)Shared infrastructure clearly streamlines management and reduces fragmentation,and server virtualization has gone a long way toward hosting and isolating software onwhat appears, to the software, to be dedicated and specially configured CPUs andmemory. VMware is working closely with partners such as Cisco, EMC and NetApp toextend this functionality to storage and connectivity. As that work progresses, theshared pool of infrastructure beneath virtualization software will continue to grow.The transition will accelerate as the hardware infrastructure itself becomes morehomogeneous, more easily configurable and more aware of VMs.Until that process is further along, however, many business and mission-criticalapplications will remain on fragmented infrastructure in legacy silos, with traditionalmanagement focused individually on servers, storage and networks, as shown below.Figure 5: Pools of virtual infrastructure will grow, but some infrastructure will continue to bededicated to legacy applications. Source: TechAlphaEvolution of the Private Clouds © 2010 Giga Omni Media | May 2010 - 13 -
  14. 14. INFRASTRUCTURE Prepared for George Gilbert (george.gilbert@techstrategypartners.com)The Evolution of Enterprise Management SoftwareManaging enterprise systems has always been a challenge. The sheer complexity of thetask — dealing with endless variation of product categories, vendors within categories,current and legacy versions of installed products, specific configurations, androadblocks thrown up by vendors who don’t want their products to disappear behindsomeone else’s management console — has made management software the ITequivalent of the La Brea Tar Pit. Vendors roaming that space become trapped andsink into the morass of legacy implementations.Moreover, management software has tended to be as fragmented as the hardware itcontrols. IT administrators in large enterprises have generally organized themselvesinto tribes that attended to individual parts of the landscape such as servers, storage,networks, security, and databases and applications. Consequently, they tend to buymanagement software dedicated to their specialty. It takes a heavy mix of professionalservices to patch everything together and many administrators to keep it running.Figure 6: Managing servers, storage, networks, security, and applications separatelyfragments infrastructure further, adding to complexity and maintenance costs. Legacy Silos Apps Servers Network Storage Source: TechAlphaEvolution of the Private Clouds © 2010 Giga Omni Media | May 2010 - 14 -
  15. 15. INFRASTRUCTURE Prepared for George Gilbert (george.gilbert@techstrategypartners.com)Cisco and HP are tackling the problem by building servers, storage and networks thatwork together as a single unit. This makes managing infrastructure much easier.However, it does not obviate the need for systems management. Rather, it implies thatthe role of management will become broader.A critical management issue for cloud computing has been that shared infrastructuremakes it difficult to trace a software problem to a specific piece of hardware. This issuehas held back deployment of IaaS for mission-critical applications. Bettervirtualization management tools from VMware, Microsoft and Citrix haven’t yet fixedthe problem entirely. An Oracle database management system installed on a VM canstill think it’s running on hardware that supports the QoS it requires when, in fact, it’srunning on systems that aren’t configured to support that QoS level.Some of the newest systems address this issue by making it possible to reconfigure thehardware underlying the VMs on demand. As a result, application owners can havegreater assurance that virtualized applications are running on hardware that appearsconfigured and dedicated just for them. Loudcloud, renamed Opsware and laterbought by HP, actually had this ability 9 years ago. The profile for running a givenapplication could trigger provisioning and configuration changes across servers,databases, load balancers, firewalls and storage. However, it stopped short ofaddressing the bare metal.When Cisco introduced its Unified Computing System (UCS), it included thiscapability via a technology called Service Profiles. As part of a deepening alliance withCisco, EMC introduced IONIX Unified Infrastructure Manager (UIM). IONIXmanages Vblocks, which integrate Cisco’s UCS with EMC’s storage arrays. The firstrelease of IONIX UIM managed only UCS, but it will be able to configure and manageEMC storage as well sometime in mid 2010.Cisco’s UCS Manager configures all the minute details of the hardware infrastructureone layer beneath the hypervisor (see Figure 7). UCS Manager permits anadministrator or an automated policy to change an extraordinarily broad array ofEvolution of the Private Clouds © 2010 Giga Omni Media | May 2010 - 15 -
  16. 16. INFRASTRUCTURE Prepared for George Gilbert (george.gilbert@techstrategypartners.com)settings including the identity, I/O configuration, MAC addresses for LANconnectivity, WWNs for SAN connectivity, firmware versions, BIOS boot order, andnetwork attributes such as QoS settings, access control lists, pin groups and thresholdpolicies. This lets infrastructure administrators show application administratorsexactly the same settings as if the setup were freeze-dried the traditional way. Just asimportant, they can do it very rapidly. The integrated hardware that was developed inresponse to server virtualization now can help the virtualization layer extend moreeffectively to storage and networks.Figure 7: The management console in Cisco’s UCS Manager permits an administrator orautomated policy to adjust all the parameters normally associated with an applicationrunning on freeze-dried infrastructure. Each unique collection of settings can represent adistinct Service Profile to be applied to a pool of infrastructure on demand. Source: CiscoExtending Virtualization to Storage and NetworksLayering a hypervisor on a pool of infrastructure configured with a specific ServiceProfile on Cisco’s UCS, or doing the equivalent on HP’s BladeSystem Matrix, doesn’tfully deliver all the benefits of dedicated infrastructure. Server virtualizationtechnology doesn’t do as good a job with networking and storage as it does with CPUsand memory. For example, a hypervisor can’t yet reserve and isolate bandwidth on aLAN for multiple data and management traffic streams or for storage traffic on a SAN.UCS has this capability. It can carry data, clustering, management, VM migration andSAN traffic, and isolate and manage them separately without having to install separatenetwork cards and cables. As other vendors add this capability, it will be much easierEvolution of the Private Clouds © 2010 Giga Omni Media | May 2010 - 16 -
  17. 17. INFRASTRUCTURE Prepared for George Gilbert (george.gilbert@techstrategypartners.com)for VMware and Microsoft to make various implementations look identical to softwarerunning on their systems. VMware has said that this functionality is on its roadmap.Having a single vendor build the servers, storage and networks as part of a singlesystem isn’t the only way to build the foundation for IaaS, but it can greatly simplifymatters. Infrastructure that’s designed as a single system takes less work to operateseamlessly. On that foundation, virtualization vendors can provide the fluidity thatenables IaaS and guarantees the QoS. And administrators no longer need to tend toisolated islands of infrastructure supporting each application. Instead, they can controlthe entire system from a single management interface.With an infrastructure that has the integration of a mainframe but the malleability ofsoftware, customers can build the foundation for a series of huge operationalimprovements. Now that the infrastructure is easily configurable, it opens up theopportunity for IT infrastructure administrators to set policies in the systemsmanagement software for how the infrastructure can be used. Then they can hand thereins to application developers and application administrators, who can agree on therequired performance, availability and security for each application; dial-in thosesettings; and let the system run.This is the theory, at least. A great deal of development remains to be done before itbecomes practical. The magic will be in management software designed specifically forprivate clouds; that is, IaaS deployments with an additional management layer.VMware has been talking about the software mainframe since the introduction ofvSphere last summer. Microsoft has been talking more broadly about dynamic IT for adecade. Both these initiatives anticipate a full realization of the private cloud.The Emergence of Private CloudsIt used to take a fair amount of iteration and even guesswork to deliver just the rightamount of infrastructure to support an application. To borrow a phrase from EMC’sEvolution of the Private Clouds © 2010 Giga Omni Media | May 2010 - 17 -
  18. 18. INFRASTRUCTURE Prepared for George Gilbert (george.gilbert@techstrategypartners.com)VP of marketing, Chuck Hollis, admins used to “have a hunch, provision a bunch.” As aresult, most applications were greatly over-provisioned.Private clouds offer the potential to automate provisioning, making for much moreefficient resource allocation. They also offer the potential to automate operations.Today private clouds offer modest automation. In provisioning, this amounts to thebeginnings of self-service. In operations, it’s the ability to take corrective action whensomething goes wrong, mostly by adjusting the infrastructure, but increasingly byaddressing applications. In the future, management software will ask the applicationswhat they need and parcel out the necessary resources according to the requiredservice level, and the applications will reconfigure themselves in response.Infrastructure and applications will work hand-in-hand with management to deliverthe right service levels.Enabling Self-ServiceA key goal for private clouds is to enable IT to set up a self-service catalog, astandardized list of available infrastructure, platform, and application services. (Figure7 illustrates a mockup of a service catalog portal.) Admins, developers and applicationowners would select from the list the services they want to use. For example, anadministrator would define the QoS characteristics of a mission-critical applicationand the management software would configure the infrastructure to deliver it. Theservice level might allocate servers, storage and networking for 100 percent uptimeusing high-availability clustering, tier-one storage for highest throughput andresilience, mirroring to a remote site for disaster recovery and a maximum 300millisecond response time for end users.An application owner could choose a service level for, say, an SAP application thatincluded metering to measure the cost of delivering a particular QoS for departmentalchargeback. With the SAP application deployed, the application owner and IT managercould fine-tune the management policy for performance, availability and securityEvolution of the Private Clouds © 2010 Giga Omni Media | May 2010 - 18 -
  19. 19. INFRASTRUCTURE Prepared for George Gilbert (george.gilbert@techstrategypartners.com)relative to the cost of the resources required. From that point, the automated policyengine would adjust the infrastructure allocation dynamically to maintain the agreedQoS.This sort of operation would be a major step forward from today’s islands ofautomation. However, administrators would lack visibility into and direct control overthe applications themselves. The management software wouldn’t be able tocommunicate directly and automatically with the applications. The managementsoftware would still be mostly constrained to managing applications by measuring andmetering their use of infrastructure and relying on administrator intervention for fine-tuning.Figure 8: Mock-up of a portal that delivers a self-service catalog of IT services. Source: VMwareVendors are getting closer to delivering this capability. In the coming year, privatecloud management software from VMware and others will let administrators definethe service level requirements of some applications.Evolution of the Private Clouds © 2010 Giga Omni Media | May 2010 - 19 -
  20. 20. INFRASTRUCTURE Prepared for George Gilbert (george.gilbert@techstrategypartners.com)Extending Private Clouds with Public-CloudResourcesThe services listed in a self-service catalog could come from anywhere — internalresources or an external provider. Once a private cloud incorporates externalresources, two issues become critical, namely cost transparency and governance.Cost transparency is an issue whenever shared infrastructure is institutionalized. Withdedicated infrastructure, it’s easy to account for the cost to support any givenapplication; with shared infrastructure, resource allocations are inherently ambiguous.But the need for cost transparency becomes especially acute when part of the sharedinfrastructure is housed externally. Some line-of-business managers wonder why theestimated storage costs internally are 10 times the figure at Amazon. The IT managerswho serve them increasingly worry that internal IT must compete on price with public-cloud service providers. Many are beginning to wonder how they will compete againstthe scale and process discipline of a service provider with tens or even hundreds ofthousands of servers.IT’s advantage is its knowledge of business requirements. Yes, CIOs will have to adjusttheir tools and processes so they can provide full transparency for cost relative to QoSjust like any service provider. But one of their critical contributions will be governance.They know best which workloads to support internally and which can migrate to apublic cloud.Applications that are not mission-critical are prime targets to migrate, at least in part,to external infrastructure. Mission-critical applications, especially those that need thegreatest resilience or require the finest degree of management control, such as Oracleor SAP, will be bound to their dedicated infrastructure for the foreseeable future.(There are exceptions — for instance, the service provider T-Systems maintains500,000 SAP users running on virtualized infrastructure — but such operations arenot for the faint of heart.) Unless these applications are upgraded to make them moreEvolution of the Private Clouds © 2010 Giga Omni Media | May 2010 - 20 -
  21. 21. INFRASTRUCTURE Prepared for George Gilbert (george.gilbert@techstrategypartners.com)manageable on newer, shared infrastructure, they may become this generation’smainframe equivalents: They may never move.Similarly, sensitive data tends to be stored internally, where access can be tightlycontrolled. An HR program that stores social security numbers may be kept in-housedespite having less critical management requirements. Merely authenticating usersand systems and authorizing access to data isn’t enough when a private cloud extendsto public infrastructure. Typically, in public clouds, the customer can create some levelof isolation. But that’s not the same as having complete physical control of the data,where it’s placed, and even how it’s erased in one location when moved to another.For the time being, CIOs are justified in lacking confidence that shared infrastructure,especially in public clouds, is as secure or resilient as dedicated, internalinfrastructure. But private-cloud security will mature. As service providers improvetheir security processes, physically isolating sensitive data and giving enterprisesgreater physical control over it, CIOs are likely to feel more comfortable managing dataexternally. Emerging management standards eventually will make it easier to balancecost and control.Software AppliancesSoftware appliances start to address such issues by incorporating governance,management requirements and cost instructions within a virtual container. The termsoftware appliance refers to a standardized software container in the form of a file thatcontains the entire “bag of bits” to be deployed, including the operating system,application, middleware and all the information required to recreate the VMs runningin concert for a given application. The current standard, Open Virtualization Format(OVF), is backed by VMware, Citrix and Microsoft, among others.OVF contains information that makes VMs portable across different vendors’ virtual-machine implementations. It would be more useful if it were to include service-levelEvolution of the Private Clouds © 2010 Giga Omni Media | May 2010 - 21 -
  22. 22. INFRASTRUCTURE Prepared for George Gilbert (george.gilbert@techstrategypartners.com)requirements for deployment, security and operations. Deployment information mightinclude how to set up Web, application and database servers and how theycommunicate; what type of network topology the application needs; and what storageresources are needed, both locally and remotely. Security information might includewhat VLANs are needed and where the firewalls should be. Operational informationmight include a detailed format for describing how the infrastructure should grab andrelease resources to maintain the application’s QoS relative to the budgeted cost.VMware is trying to extend OVF in this direction with its own standard, called vApp.Distributing Software AppliancesWith all that information about management requirements standardized and attached,it would be easier to move software appliances from internal to external infrastructureand between one cloud and another. Standards are evolving to facilitate these tasks aswell. VMware’s vCloud API goes a long way toward standardizing how to move asoftware appliance between internal and external infrastructure.However, an API alone won’t be enough to make the process seamless. There are non-obvious strings that tie down virtual appliances to their original data centers. First,management technology must catch up with the web services architecture that enablescustomers to choose which services to manage internally and which to federateexternally. Today’s technology can map out the application topology and showdependencies and response times, but it can’t yet manage everything as a single end-to-end service. Traditional management technology isn’t yet able to monitor andenforce QoS across the organizational boundary. For example, even if a serviceprovider were able to assure the performance of a workload delivered in a softwareappliance, the workload may still require connectivity to internal facilities such asmainframes and on-site customer information systems. Today’s managementtechnology isn’t good at making sure the two sides can communicate reliably andsecurely.Evolution of the Private Clouds © 2010 Giga Omni Media | May 2010 - 22 -
  23. 23. INFRASTRUCTURE Prepared for George Gilbert (george.gilbert@techstrategypartners.com)Ultimately, the solution is to rewrite applications to understand how to run ondistributed infrastructure. There are two possibilities. They could be partitioned so themore portable components could be sent to external service providers for capacity ondemand. Alternatively, certain components could be designed to run permanently inexternal clouds. Regardless, legacy applications that are too long in the tooth to rewritewill probably continue to be tethered to internal data centers.From Application-Aware Management . . .Today, management tools can look at the QoS information tied to a software applianceand tune the infrastructure to make the associated application run at the requiredservice levels. But the management software can’t look inside the application, make adetermination of what has gone wrong, and then fine-tune it to run better. The nextstep is to extend automated management control to applications.Symantec has traditionally distinguished itself with backup, availability and disasterrecovery software featuring agents that control not just infrastructure but applicationsas well. However, these agents have only limited control. If an SAP application serverfails but the underlying software remains in operation, a Symantec managementapplication can see the failure and restart SAP on the same or a different system. HPand BMC have more advanced management tools that can see deeply into SAPenvironments. They can see where bottlenecks are forming and thresholds are beingreached, but they, too, have only a limited repertoire of responses. No currentmanagement product has enough knowledge of the context be trusted to adjustapplication health and performance parameters automatically.Evolution of the Private Clouds © 2010 Giga Omni Media | May 2010 - 23 -
  24. 24. INFRASTRUCTURE Prepared for George Gilbert (george.gilbert@techstrategypartners.com)Figure 9: Application-aware management systems would have visibility into and automatedcontrol over the health and performance of applications themselves, not just the supportinginfrastructure. Administrator Custom App Oracle Management Application Platform Virtualized Infrastructure Source: TechAlphaA fully application-aware management system, by contrast, would know right out ofthe box about the performance of all application components. It wouldn’t need customagents that work only with the most popular applications. It would be aware of all thedistinct services in a Microsoft Exchange 2007 deployment including the mailbox,client access, hub transport, unified messaging, edge transport and Blackberryconnectivity. It would know that end-to-end email service was slowing down becausethe mailbox server couldn’t keep up with the client access, hub transport andBlackberry services feeding it. The management software would either hot-addresources to the mailbox server or fire up a new one and let the other services know it’sEvolution of the Private Clouds © 2010 Giga Omni Media | May 2010 - 24 -
  25. 25. INFRASTRUCTURE Prepared for George Gilbert (george.gilbert@techstrategypartners.com)there, all without administrator intervention. This level of automation requires moresophisticated applications.. . . to Management-Aware ApplicationsDespite help from application-aware management, both packaged applications andcustom applications built on private clouds would still require some involvement fromadministrators to manage their deployment, capacity, performance and security.Private clouds will make it easier for administrators to deploy and dial-in the rightQoS, but maintaining an application’s operation still won’t be completely automatic.Only when applications are designed from the ground up to interact with theirenvironment will mainstream IT achieve productivity comparable to that of largepublic-cloud services such as Amazon, eBay and Google. First, deployment andoperations teams must be able to make all but the most strategic management policiesaccessible to developers in a standardized format. While that day may seem far off,thought leaders at Microsoft, T-Systems and VMware are already assessing therequirements.In such an environment, any application — whether SAP, a next-generation SaaSapplication built by a startup, or a corporate application built on a PaaS service such asMicrosoft Azure — would need to be able to monitor itself and communicate its needsto the outside world. It would need to be able to predict its resource requirements andcommunicate them to an external management system, which would provision theappropriate resources based on the priority of its service level agreement and confirmwhat it has provisioned with the application. The application, in turn, would be able toadjust to the new conditions.Evolution of the Private Clouds © 2010 Giga Omni Media | May 2010 - 25 -
  26. 26. INFRASTRUCTURE Prepared for George Gilbert (george.gilbert@techstrategypartners.com)Figure 10: A management-aware application would be aware of its own health andperformance. It would interact with a management system to get the resources necessary tomeet its required service level. Administrator Custom App Oracle Management Application Platform Virtualized Infrastructure Source: TechAlphaThis sort of interaction between applications and infrastructure implies some degree ofstandardization. For instance, an application might need to report its existing andrequired number of threads or work processes, physical or virtual memoryrequirements, and some standard way of measuring and accelerating criticaltransactions. The external management system likely would remain the repository forthe policy engine that tells the infrastructure what resources to provide to maintain theapplication’s QoS. The key change is that the application itself would be the primarycontrol and management node, while the external management system existed to serveit, not run it.Evolution of the Private Clouds © 2010 Giga Omni Media | May 2010 - 26 -
  27. 27. INFRASTRUCTURE Prepared for George Gilbert (george.gilbert@techstrategypartners.com)Vendor ImplicationsThe evolution of private clouds implies the technical milestones described above. Buthow they’re defined, who controls them, and the resulting industry structure are openissues. Each vendor is using its market strengths to tilt the playing field in its direction.The dominant providers of system management services, CA, BMC, HP and IBM, maynot seem well positioned for an emerging environment in which traditional technologywill become obsolete. However, these vendors have unique strengths that translatehandily into the era of hybrid virtual/physical and internal/external infrastructure.Meanwhile, VMware and Microsoft will have the biggest impact on the evolution ofprivate clouds. They are the vendors best positioned to influence how manageability isbuilt into software and how it is integrated into hardware infrastructure. Oracle istrying to sidestep the market battles at all levels by selling a complete integratedsolution.An Important Role for the Big FourUpon a cursory look, it appears that private clouds would diminish opportunities forthe Big Four incumbent management vendors. After all, homogeneous internalinfrastructure is easier to manage. Entirely new technology is required to manageworkloads that have been delegated to external service providers. However, no otherexisting candidates can play the role described by BMC’s CTO, Kia Behnia, as “a singlepoint of aggregation and control.”The Big Four have taken the initiative in bridging physical and virtual infrastructure.But they also have skills and experience to offer in three crucial areas:Evolution of the Private Clouds © 2010 Giga Omni Media | May 2010 - 27 -
  28. 28. INFRASTRUCTURE Prepared for George Gilbert (george.gilbert@techstrategypartners.com)Integrating infrastructure layersThese vendors have lots of experience tying together distinct infrastructure layers toform a vertically integrated stack. The operating system, database, middleware andother components might come from different vendors and have their ownmanagement capabilities built-in. There’s a need for software that manages the wholecollection. If a component fails, for instance, this software can restart the relevantpiece or the whole stack.Integrating intergenerational productsWhen the entire stack of software comes from one vendor and one generation, thatvendor’s management software clearly has the advantage. But stacks from differentvendors and generations often grow up next to each other and require broader end-to-end management. Today, no one does a better job of bridging these gaps than the BigFour. For example, Computer Associates and BMC are expert at bridging mainframeand server-based applications and infrastructure. HP’s Business Availability Centerexcels at integrating the management of Web-based applications and earlier-generation systems.The technology that would manage QoS dynamically fits right into this scheme: It’s acomposite of traditional tools that control physical infrastructure, tools from servervirtualization vendors and an emerging generation of tools from the traditionalvendors that control the emerging integrated infrastructure. The first inklings of thepower of this new regime are starting to appear. BMC and HP have made strategicacquisitions, BladeLogic and Opsware respectively, that accelerate their ability tomanage hybrid environments that include both physical and virtual infrastructure. Theresulting products address labor-intensive and error-prone IT tasks of serverprovisioning, configuration and compliance. They ensure that servers receive the rightsoftware, get patched and updated properly, and remain within guidelines for security,regulatory and operational policies.Evolution of the Private Clouds © 2010 Giga Omni Media | May 2010 - 28 -
  29. 29. INFRASTRUCTURE Prepared for George Gilbert (george.gilbert@techstrategypartners.com)Figure 11: The emerging virtual infrastructure stack will need to be integrated with previous-generation stacks into a single management framework — a specialty of the Big Four. Custom SAP ISV App Mgt App Application Frameworks Mgt Custom Sales Order App ISV App Mgt JEE, .NET, LAMP, Spring Application Server Security Application Servers MoM Mgt Security Oracle Weblogic, Windows, IBM Mgt Customer Information Control System MoM Websphere, Tomcat, also SQL DBMS (CICS), DB2 Operating Systems Mgt Operating System, Mgt Virtualization Mgt Virtualization Servers, Storage, Networks Mainframe Mgt Mgt Manager of Managers: single point of aggregation and control Source: TechAlphaTying together multiple applications in an end-to-end serviceFor instance, HP has extended its expertise to helping customers source, integrate andmanage systems no matter where those systems originated; they could be acombination of packaged legacy systems, in-house development and SaaSapplications. The technical objective is to manage end-to-end services with one all-encompassing SLA that flows to the constituent applications. An enterprise should beable to create a B2B commerce site comprising, say, a custom Websphere application,an SAP sales and distribution application, and an SaaS component that would let amulti-tier supply chain collaborate on replenishment plans that runs on Amazon.Evolution of the Private Clouds © 2010 Giga Omni Media | May 2010 - 29 -
  30. 30. INFRASTRUCTURE Prepared for George Gilbert (george.gilbert@techstrategypartners.com)Figure 12: Private cloud management systems will need to control end-to-end services thatmight include components running at external service providers. Service Provider Virtualized Infrastructure Legacy Silos Private cloud management Apps Servers Service Provider management Network Storage End-to-End Service Management Source: TechAlphaThe Big Four won’t develop the ability to manage an end-to-end service acrossorganizational boundaries overnight. It’s not yet possible for a management system toprovide visibility into and control over QoS for each component and meter everythingall the way out to those running at Amazon or another service provider. And it’s notclear how long it will take for internal management systems to extend their reach fullyto the public cloud. Until they do, there will be a need for internal infrastructureVMware vs. MicrosoftDespite critical contributions from hardware infrastructure vendors and incumbentmanagement vendors, VMware and Microsoft are driving the biggest parts of theEvolution of the Private Clouds © 2010 Giga Omni Media | May 2010 - 30 -
  31. 31. INFRASTRUCTURE Prepared for George Gilbert (george.gilbert@techstrategypartners.com)upheaval. They are defining the software layer that works most directly with thehardware. They are also driving the technology for management-aware applications.To understand their strategies and handicap their odds, it helps to understand wherethey are applying leverage and how strong that leverage is (Figure X). Windows runson about 75 percent of servers. Forty percent run packaged applications from SAP andOracle at the high end, down to ubiquitous applications such as Microsoft’s Exchange,SQL Server and Sharepoint and IBM’s Lotus Domino. Another 40 percent servecustom applications built by developers using frameworks such as .NET, LAMP, JEEand SpringSource. Among this group, the market can be further divided between thedevelopment frameworks used to build applications and the application servers usedto run them. Enterprise developers are split fairly evenly between .NET-basedframeworks (which run only on Windows) and Java-based frameworks. Within theJava market, developers are split between SpringSource, which VMware bought lastsummer, and JEE, owned by Oracle. The last 20 percent of servers run ITinfrastructure tasks such as file sharing. These rough figures indicate where eachcompany’s assets will prove most valuable.Figure 13: Server deployments by percentage. (20 percent is devoted to IT infrastructureservices such as directories and file sharing.) Source: TechAlphaVMware and Microsoft would probably find little to differ over in the layers called outin Figure 1. However, what each layer does, how the layers work together, how they arepriced, and how the vendors take them to market are likely to differ substantially.Evolution of the Private Clouds © 2010 Giga Omni Media | May 2010 - 31 -
  32. 32. INFRASTRUCTURE Prepared for George Gilbert (george.gilbert@techstrategypartners.com)The Battle for the Data Center Operating SystemWhile VMware uses the phrase “data center operating system,” it has a very differentvision of the operating system from Microsoft. VMware wants to make the operatingsystem a vestigial appendage of a bygone era. It aims to reduce the OS to a simpleappliance tucked between the application and management layers.Figure 14: By integrating a virtual infrastructure management layer and an applicationmanagement layer, VMware could make the traditional operating system irrelevant. VMware Custom App ISV App Microsoft Application Frameworks Custom App ISV App JEE, .NET, LAMP, Spring, vmforce.com Application Frameworks Application Platform .NET Tomcat now: force.com, Weblogic, Websphere, SQL DBMS, etc., future Windows Server OS / Application Platform vSphere Virtualization Hyper-V Virtualization Servers, Storage, Networks Servers, Storage, Networks Source: TechAlphaA traditional operating system has two responsibilities, both of which VMware ispositioning itself to take on. First, it abstracts the hardware so all resource elementslook alike. To the software running on a data center OS as VMware defines it,individual storage elements would melt into a uniform resource pool, leaving VMwarein control of the new generation of shared hardware infrastructure.Evolution of the Private Clouds © 2010 Giga Omni Media | May 2010 - 32 -
  33. 33. INFRASTRUCTURE Prepared for George Gilbert (george.gilbert@techstrategypartners.com)This development would wipe out a large part of the value of Windows. Microsoft hasgone to Herculean effort and expense corralling hardware vendors to write and testdevice drivers; this is a key part of the network effect that propelled its platform todominance. Where Windows traditionally has managed all the hardware by itself,VMware is horning in on the territory. Thus, as Microsoft scrambles to catch up invirtualization, it’s in the rare position of being behind in the hardware domain. And forall the talk of tension between VMware and EMC, the storage company gave VMwareaccess to its multibillion-dollar test lab to make sure VMware’s hypervisor could sit ontop of any vendor’s hardware — a tremendous hidden asset.The second responsibility of an operating system is to provide common services toapplications such as resource scheduling, memory management or file storage. But theboundary between operating system and applications is evolving, and VMware isattempting to accelerate the movement of corporate and ISV developers away fromtraditional operating systems and towards application frameworks. Just about allcustom and many ISV applications today are built in JEE, .NET, LAMP, Ruby on Railsor Spring. These frameworks make it easy to build applications that talk to databasesand have rich user interfaces. The next step is to make it easy to build applications thatmonitor their own health and performance, availability and security levels andcommunicate resource needs to the management system.This was the motivation behind the VMware’s acquisition of SpringSource. Nobody isunder the impression that all applications in the future will be built on the Springframework or deployed on the Tomcat application server. But now that VMware has allthe pieces, it can figure out how to put together a solution that lets any applicationframework integrate deeply with the private-cloud management layer. At that point,both corporate and ISV developers will be able to build management-awareapplications.VMware just took another major step forward with its platform strategy to offer amigration path beyond private clouds by teaming with Salesforce.com to create a jointPaaS offering. The new product, vmforce.com, will combine the mainstream, popularEvolution of the Private Clouds © 2010 Giga Omni Media | May 2010 - 33 -
  34. 34. INFRASTRUCTURE Prepared for George Gilbert (george.gilbert@techstrategypartners.com)Spring framework with all the application services and data already in the Force.comPaaS offering. In other words, Java developers can deploy Spring-based applicationsand take advantage of the built-in manageability, application functionality andcustomer-related data that previously required Force.com’s proprietary developertools. VMwares vCloud management services will be a key part of making applicationsportable between vmforce.com, customers’ own premises and other service providers,as long as the applications don’t exploit features specific to any PaaS offering.Where is Windows in all this? It doesn’t matter. VMware can embed a tiny version ofLinux between the application framework’s runtime server and the hardwaremanagement layer to provide the bare minimum of traditional OS services.Today, Microsoft uses its overwhelming server OS market share to extract premiumpricing for the virtualization-enabled Windows Data Center Edition and an additionalpremium for the Systems Center management platform. Virtualization is priced as afeature. VMware, by contrast, won’t require Windows. Thus it would be able to offer acompetitive price for its runtime platform, which will support all applicationframeworks, plus its management layer.The problem for VMware is that this strategy works best for custom applications,which account for only 40 percent of servers. It needs to overcome Microsoft’soverwhelming advantage with the 40 percent of servers that run packagedapplications, dominated by Microsoft’s SQL Server, Exchange, SharePoint, OfficeCommunication Server and others. Apparently, VMware has a strategy in place to doso.The Battle to Manage Packaged ApplicationsAs long as Microsoft’s server applications dominate, it will be very difficult for VMwareto redefine the platform for packaged applications. VMware’s best chance to seize thatground may be where it appears weakest today: serving small to mid-size customers.Evolution of the Private Clouds © 2010 Giga Omni Media | May 2010 - 34 -
  35. 35. INFRASTRUCTURE Prepared for George Gilbert (george.gilbert@techstrategypartners.com)Although this segment is ill-defined, it probably tops out with customers that have lessthan 50 servers. These customers’ ability to absorb private cloud managementfunctionality is badly lagging VMware’s ability to deliver it. Microsoft’s functionality,still mostly focused on server consolidation, appears good enough. But as VMwarepoints out, Microsoft became dominant in servers when it overthrew Novell by offeringsuperior versions of the two highest-volume server applications: email and file andprinter sharing. It looks like VMware is planning to do the same thing, offering theseapplications through its more than 1,500 service providers via SaaS.On the email side, VMware’s likely strategy is to deliver Exchange server functionalitythrough service providers. Many observers were perplexed when VMware boughtZimbra, but there’s no mystery. Zimbra is a substitute for Exchange, not figurativelybut literally. Companies can migrate their servers while end users continue to runOutlook. Small IT shops can offload mail to someone else. Zimbra’s purportedattraction for service providers is that it’s designed for low-cost, cloud-scale operation.VMware’s strategy for file sharing is more speculative at this point. The company maycombine desktop virtualization delivered as a service with a new approach to filesharing. This, too, could be managed by service providers. The best clue is thatVMware CEO Paul Maritz spent five years leading a startup called PI (pronounced“pie,” but short for “personal information”) that attempted to redefine how usersaccess, store, organize and share information. Press reports at the time suggested thatit would be a more modern and sophisticated version of Sharepoint. In 2008, he soldPI to EMC, which has continued to develop the software in stealth mode.VMware’s increasingly aggressive push into desktop virtualization might be related.Desktop virtualization is about enabling a user’s environment to follow him frommachine to machine rather than being tied to, say, a single laptop. PI is part of aneffort to make a user’s environment more task- and information-centric, rather thanthe current application-centric approach typified by Microsoft Office.Evolution of the Private Clouds © 2010 Giga Omni Media | May 2010 - 35 -
  36. 36. INFRASTRUCTURE Prepared for George Gilbert (george.gilbert@techstrategypartners.com)VMware’s best hope may be that desktop virtualization and new ways of sharinginformation can break apart the two core elements of Microsoft’s business model.First, Office’s tight and ever-expanding horizontal integration has enabled Redmondto maintain its pricing despite selling hundreds of millions of units over 20 years. Aninformation- or task-centric computing experience could rupture the need fortraditional application integration. Second, every time a PC gets replaced, part of whatcustomers pay for is a new copy of Windows. Desktop and application virtualizationmake it possible to keep using of the same copy of Windows as the environmentfollows the user from machine to machine, breaking the Windows royalty pipeline.Microsoft is in the process of loosening licensing restrictions for some of thesescenarios under customer pressure.The Wild Card: OracleMicrosoft and VMware are fighting to define the next-generation data center operatingsystem by developing the layers where they’re strongest and emphasizing the valuethat would come from adopting their roadmap. Oracle is taking an entirely differentapproach. It wants to redefine the scope of vertical integration. By building the deepestintegrated stack and best-of-breed management tools to bind it together, it hopes to gofurther toward reducing total cost of operations and enabling "lights out" operation.The cost of operating Oracle’s traditional applications is high. Analysts estimate Oraclesystems cost more than $1,000 per user per month including hardware depreciation,implementation and operations. (To be fair, SAP’s price is similar.) Bringing down thatcost will likely require many of the same technologies VMware and Microsoft aretrying to develop. But a single-vendor approach all the way down from the applicationto the chips and spinning disk drives does allow Oracle to make favorable trade-offsnot open to other vendors. For instance, Oracle’s Exadata database machine isoptimized for Oracle database performance in a way no other server, storage ordatabase appliance can match. Only Oracle can break up the core of the databaseengine to achieve new performance levels. For example, it has essentially transplantedEvolution of the Private Clouds © 2010 Giga Omni Media | May 2010 - 36 -
  37. 37. INFRASTRUCTURE Prepared for George Gilbert (george.gilbert@techstrategypartners.com)parts of its database engine to the equivalent of the storage controller, so those partsare much closer to where the data is physically stored on disk. This minimizes the needto move data over the storage network, speeding up performance by orders ofmagnitude.It’s worth noting that Oracle also plans to compete aggressively in the same softwarelayers as VMware and Microsoft. In collaboration with Sun, it controls the JEEapplication framework, which has been adrift relative to Spring and .NET. And withBEA, it controls one of the two leading production servers for Java applications (theother being IBM’s Websphere). And the Java applications it runs include those basedon Spring.Technically, Oracle’s destination looks very similar to where VMware and Microsoftare headed. However, Oracle is attempting to absorb most of the major surroundingmarkets as well. It also appears to have ambitions for management software wellbeyond its own virtualization platform. It lured Richard Sarwal back after his stint ashead of development VMware when VMware appeared to pivot away from trying toreplace the Big Four’s management software. Such software is critical to Oracle’s go-to-market strategy for its Fusion applications. It aims to deliver the applications fromits data centers via SaaS with management provided remotely by Oracle on thecustomer’s premises, or under customer’s control on their premises, or a combination.Customer ImplicationsThe cloud computing market is still very young, but it’s not too early to handicap howcustomer purchases and deployments are likely to unfold. In general, despitewidespread deployment of VMware’s and Microsoft’s virtualization layers,unified infrastructure vendors such as Cisco/EMC (Vblocks) and HP(BladeSystem Matrix) are likely to find their first successes with large,sophisticated shops that are building or buying applications designedEvolution of the Private Clouds © 2010 Giga Omni Media | May 2010 - 37 -
  38. 38. INFRASTRUCTURE Prepared for George Gilbert (george.gilbert@techstrategypartners.com)around private cloud management and need growing pools of unifiedinfrastructure to support them.IT departments at large enterprises generally have the administrative scale to manageinfrastructure and applications from multiple vendors. They’re likely to retain aconventional architecture around established applications, adopting the newintegrated infrastructure only as they build out for new applications. Small to medium-size businesses are rarely early adopters, but their greater cost sensitivity and lack ofspecialized admins make them great prospects for this new infrastructure. As largercustomers become comfortable with unified infrastructure, smaller operations arelikely to embrace it for the portion of their infrastructure they don’t outsource toservice providers.Service providers are beginning to provide cloud services both public and private,moving beyond traditional hosting and managed services. These operations, too, fallinto categories. The largest of them operate infrastructure that is highly tuned fordelivering standardized services such as Amazon’s virtual servers and storage andMicrosoft’s MSN and Hotmail services. They also recognize the value of standardizingparts of their infrastructure. The new integrated infrastructure suits these operationsbecause it will more easily accommodate their custom management software. If theybuy it, they’ll buy enormous quantities — delivered in shipping-container sizeincrements.More specialized service providers such as T-Systems and Sunguard typically require amore heterogeneous hardware. In T-Systems’ case, that includes managing billing forDeutsche-Telekom and on-demand SAP systems for other customers; Sunguard servesas a failover site for disaster recovery. These providers operate highly specializedinfrastructure, which will tend to bias them against the new integrated designs. Theydo need to standardize management across their organizations, but their standards areidiosyncratic and don’t necessarily bear any relationship to the standards evolving tosupport private clouds.Evolution of the Private Clouds © 2010 Giga Omni Media | May 2010 - 38 -
  39. 39. INFRASTRUCTURE Prepared for George Gilbert (george.gilbert@techstrategypartners.com)As for the private cloud management layer, the Big Four are destined to play a biggerrole managing end-to-end services for enterprises than in the small-to-medium sizesegment or among service providers. But for application-aware private clouds andfuture management-aware applications, VMware and Microsoft have the most controlover the key leverage points that integrate how the application and hardware layerscommunicate. Microsoft’s dominance among small-to-medium size businesses gives ita major advantage among customers of that size. VMware, meanwhile, hasconfounded skeptics by maintaining its dominant position in the enterprise.Finally, the growing share of customers that define themselves as Oracle shops willresemble the IBM shops of the 1960’s through the 1980’s. Their IT landscape will bevertically integrated across Oracle technology and other vendors will play at theperiphery. The only question is what share of all customers Oracle will claim.Evolution of the Private Clouds © 2010 Giga Omni Media | May 2010 - 39 -
  40. 40. INFRASTRUCTURE Prepared for George Gilbert (george.gilbert@techstrategypartners.com)About TechAlphaTechAlpha is a management consulting and research firm that advises clients in thetechnology, media and telecommunications industries across the following functionaldisciplines:  Corporate finance and strategy, corporate development  Business unit and product strategy  Technology evaluation  Product management  Marketing  Sales and sales operations  Business development  Information technologyVisit http://techalpha.comAbout GigaOM ProGigaOM Pro gives you insider access to expert industry insights on emerging markets.Focused on delivering highly relevant and timely research to the people who need itmost, our analysis, reports and original research come from the most respected voicesin the industry. Whether you’re beginning to learn about a new market or are anindustry insider, GigaOM Pro addresses the need for relevant, illuminating insightsinto the industry’s most dynamic markets.Visit us at http://pro.gigaom.comEvolution of the Private Clouds © 2010 Giga Omni Media | May 2010 - 40 -

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