ROI In The Cloud – Myth, Magic, or Measurable

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Cloud computing offers compelling business benefits, yet achieving scalability, performance and ROI is not slamdunk. You must think differently about your architecture, usage monitoring, scaling strategy, performance best practices, and high availability to maximize the ROI of cloud computing. In this Webinar, Forrester’s analyst Mike Gualtieri and Compuware CTO Imad Mouline will describe how to optimize cloud applications for your business, your users, and your checkbook.

Join Mike Gualtieri, Senior Analyst, Forrester Research, and Imad Mouline, CTO APM Solutions, Compuware to learn:

-The real ROI for cloud – scalability, reduce costs, increase revenue – and how ROI isn’t guaranteed if you ignore the new reality

-Four key qualities of cloud deployed applications to obtain ROI and quality end user experience

-Best practices to measure and ensure success with your cloud applications

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ROI In The Cloud – Myth, Magic, or Measurable

  1. 1. Mike Gualtieri - Senior Analyst, Architecture & Design, Forrester ResearchImad Mouline - Compuware CTO, APM Solutions
  2. 2. 2 © 2011 Forrester Research, Inc. Reproduction Prohibited
  3. 3. The Future Availability,Performance, And Scale InThe Cloud Mike Gualtieri, Senior Analyst, Architecture February 24, 20113 © 2011 Forrester Research, Inc. Reproduction Prohibited 2009
  4. 4. Agenda Massive scale Cloud economics Availability, performance, and scale in the cloud Recommendations4 © 2011 Forrester Research, Inc. Reproduction Prohibited
  5. 5. An explosion of activity and information.
  6. 6. More eCommerce means more of everything: users,transactions, and data6 © 2011 Forrester Research, Inc. Reproduction Prohibited
  7. 7. Yikes! This guy canpersuade a million peoplethat my product is rubbish
  8. 8. They‟re not just kids. Social networking use amongInternet users 50 and older has nearly doubled. Placeholder – social media influence8 © 2011 Forrester Research, Inc. Reproduction Prohibited
  9. 9. 80 million users! Seriously?
  10. 10. Increasing scale is a fact of life Huge historical data stores • Corporate data warehouses • Historical market data • Structured and unstructured Web data Exponential increase in business events (data in motion) • Real-time market data • Radio frequency identification (RFID), global position system (GPS) More users • More channels such as eReaders & smart phones (20% of US mobile subscribers now use smart phones) • Increased expectations for content and transactions Faster pace of change • Business must respond faster • IT must enable continuous business change10 © 2011 Forrester Research, Inc. Reproduction Prohibited
  11. 11. Agenda Massive scale Cloud economics Availability, performance, and scale in the cloud Recommendations11 © 2011 Forrester Research, Inc. Reproduction Prohibited
  12. 12. Cloud computing is here to stay.
  13. 13. Please Mr. VC, please. This will is going to be big!13 © 2011 Forrester Research, Inc. Reproduction Prohibited
  14. 14. The power of cloud economics is elasticity Peak of 5000 instances Launch of Facebook modification Steady state of ~40 instances14 © 2011 Forrester Research, Inc. Reproduction Prohibited
  15. 15. CPU performance depreciates more rapidly than that of other types of assets discouraging long-term lease arrangements.15 © 2011 Forrester Research, Inc. Reproduction Prohibited
  16. 16. Savings accrue when you scale-down Elastic scale delivers just-in-time capacity • As demand rises, resources are added • Requires apps to scale out • Load balancing governs Pay per use keeps costs low • No upfront payment • No commitment whether you use it or not • Costs aligned to use Self-service fuels productivity • If you can build it, you can deploy it – fast • API access drives use of automation16 © 2011 Forrester Research, Inc. Reproduction Prohibited
  17. 17. Agenda Massive scale Cloud economics Availability, performance, and scale in the cloud Recommendations17 © 2011 Forrester Research, Inc. Reproduction Prohibited
  18. 18. Wildly desirable business applications must strike the right balance among these seven qualities Quality What it means Users‟ perceptions of the usefulness, usability, and 1 Experience desirability of the application. The readiness of an application to perform its 2 Availability functions when needed. The speed with which an application performs a 3 Performance function to meet business and user expectations. Handle increasing or decreasing volumes of 4 Scalability transactions, services, and data. The ease with which an application can be changed 5 Adaptability or extended. Supports the security properties of confidentiality, 6 Security integrity, authentication, authorization, and nonrepudiation. Minimize the cost to build, operate, and change and 7 Economy application without comprising its business value.18 © 2011 Forrester Research, Inc. Reproduction Prohibited
  19. 19. Availability • Monitor application and infrastructure Monitored for expected and unexpected events that can detect or foretell an outage. • Mitigate the effect of known Fault vulnerabilities by implementing redundant components and the ability tolerant to operate in a crippled mode. • Identify and rehearse failure scenarios and put in place a support regime to Fixable quickly investigate, escalate, and resolve problems.
  20. 20. What does high availability mean? Uptime %* Downtime per year 99.999% (5 nines) 5.26 minutes 99.99% (4 nines) 52.6 minutes 99.5% 1.83 days 99% (2 nines) 3.65 days 98% 7.30 days 95% 18.25 days *Uptime calculations assume no scheduled downtime.20 © 2011 Forrester Research, Inc. Reproduction Prohibited
  21. 21. 8.85 is the average number of hosts involved in delivering an online transaction in 2010. Investigating and resolving incidents can be more challenging in the cloud. 21 © 2011 Forrester Research, Inc. Reproduction ProhibitedSource: Gomez
  22. 22. Can “dial tone” reliability be achieved?22 © 2011 Forrester Research, Inc. Reproduction Prohibited
  23. 23. Cloud best practices: Availability  Continuously monitor availability from your user‟s perspective  Implement end-to-end (user-to-application-to-infrastructure) diagnostics  Design for fault-tolerance – don‟t let one component take you down  Load test to determine your breaking point 1. Is there a problem? 2. Where is the problem? 3. What is the23 © 2011 Forrester Research, Inc. Reproduction Prohibited problem?
  24. 24. Performance • Application response time meets or beats user Fast expectations and business requirements. • Application response time is consistent under normal and Consistent load conditions of increasing users, workload, and data.
  25. 25. Achieving top performance is a moving target Source: Gomez.com25 © 2011 Forrester Research, Inc. Reproduction Prohibited
  26. 26. Cloud best practices: Performance  Understand where all your bottlenecks are  Mitigate bottlenecks – Asynchronous transactions to boost perceived user performance – Make liberal use of caching: browser, edge, application – Use elastic caching platforms eliminate database bottleneck  The performance for one transaction to benchmark “fast”  Test performance understand normal and peak load to baseline “normal”  Continuously monitor performance from your user‟s perspective26 © 2011 Forrester Research, Inc. Reproduction Prohibited
  27. 27. Scalability • Application can handle an increasing volume of transactions. Transactions • Example: mouse click to search, button on ATM machine • Bounding: users, connections, bandwidth • Application can handle an increasing volume of services needed to process transactions. Services • Example: business logic, calculations, integration • Bounding: compute workload • Applications can handle an increasing volume of transient and persistent data. Information • Example: customer profile, transaction history, content, and documents • Bounding: Size and amount of data27 Entire contents © 2009 Forrester Research, Inc. All rights reserved.
  28. 28. Cloud best practices: Scalability  Architect for elasticity  Use an elastic platform to scale services and data  Isolate functions to scale them separately  Implement a cloud bursting strategy (like Farmville)  Automate scaling to quickly scale-up and down28 © 2011 Forrester Research, Inc. Reproduction Prohibited
  29. 29. Agenda Massive scale Cloud economics Availability, performance, and scale in the cloud Recommendations29 © 2011 Forrester Research, Inc. Reproduction Prohibited
  30. 30. ROI in the cloud can be significant  How much upfront investment can you save by paying for only what you use? – 1. Calculate TCO for infrastructure to support peak usage – 2. Determine high and low usage requirements weekly or monthly – 3. This is a lease versus buy calculation, so you‟ll need financial help to calculate net present value (NPV) – 4. Enhance calculation by including any operational costs and savings and upfront development work to run in the cloud  What is the value of fast, continuous change (aka time-to-market) – 1. Calculate the cost of being wildly desirable but being unable to scale fast enough to serve customers – 2. Calculate the impact of competitors Ask your CFO to perform a lease/buy30 © 2011 Forrester Research, Inc. Reproduction Prohibited analysis.
  31. 31. Eliminate single point of failure to achieve high availability.Monitor and diagnose to fix the inevitable.
  32. 32. Eliminate bottlenecks to achieve breakneck performance.Use caching and other strategies to mitigate bottlenecks
  33. 33. Design applications and data for elasticity Auto-scale to maximize cloud ROI33 Entire contents © 2009 Forrester Research, Inc. All rights reserved.
  34. 34. Thank youMike Gualtierimgualtieri@forrester.comTwitter: mgualtieriwww.forrester.com © 2009 Forrester Research, Inc. Reproduction Prohibited
  35. 35. “ROI in the Cloud – Myth, Magic, or Measureable?” February 24, 2011 Imad Mouline - Compuware CTO, APM Solutions
  36. 36. Agenda• ROI goals of moving to the cloud – Business and technical objectives – Compuware Gomez case study• What we found – Performance impacts ROI – Cloud isn’t as simple as it seems• How we solved those problems – Optimization techniques – Learned best practices
  37. 37. Web Applications Are Moving To The Cloud – February 2011 Percentage of web app transactions that include at least one object hosted on Amazon EC2 or AzureAmazon EC2 Region PercentageEC2 Asia Pacific - Singapore 0.185EC2 US West - Northern California 3.460EC2 EU - Ireland 5.286EC2 US East - Northern Virginia 35.289Azure AppFabric Region PercentageAzure US South Central 8.669Azure US North Central 4.389Azure EU North 3.313Azure EU West 0.062Azure Asia Southeast 0.483Azure Asia East 0.020
  38. 38. Part 1: ROI Goals of Going to Cloud
  39. 39. Best Practice: Define your goals and build a planAlign goals across your organization If only there was a button to push!Why are we moving to the cloud?Common goals include:1. Trade CapEx for OpEx – can we just pay for just what we use?2. Additional Capacity – How much capacity do we need during normal and peak times?3. Improved End-User Experience – What performance goals are we trying to deliver against?4. Greater Elasticity – How quickly can the provider we select ramp up to meet our needs?5. Flexible Bursting – How fast do we need to be able to access additional capacity?
  40. 40. Case Study: Gomez Load Testing Network• Our Goals – Provide as much load as possible to test infrastructure/app – Reduce overall costs to us – Scalability (handle as many customers -- big & small -- as possible) – Response time consistency• Our challenge: Handling huge, unpredictable variations in demand 2 enterprises Options: 100K+ users 1M+ pages 5 enterprises 10K+ users 100K+ pages
  41. 41. Case Study: Gomez Load Testing Network• Our Goals – Provide as much load as possible to test infrastructure/app – Reduce overall costs to us – Scalability (handle as many customers -- big & small -- as possible) – Response time consistency• Our challenge: Handling huge, unpredictable variations in demandPlan for peak for 100% of time 2 enterprises Options: 100K+ users 1M+ pages 1) Build massive data centers with frequently under-used capacity 5 enterprises 10K+ users 100K+ pages
  42. 42. Case Study: Gomez Load Testing Network• Our Goals – Provide as much load as possible to test infrastructure/app – Reduce overall costs to us – Scalability (handle as many customers -- big & small -- as possible) – Response time consistency• Our challenge: Handling huge, unpredictable variations in demandPlan for peak for 100% of time 2 enterprises Options: 100K+ users 1M+ pages 1) Build massive data centers with frequently under-used capacity 2) Use “co-lo” facilities with 5 enterprises frequently under-used capacity 10K+ users 100K+ pages
  43. 43. Case Study: Gomez Load Testing Network• Our Goals – Provide as much load as possible to test infrastructure/app – Reduce overall costs to us – Scalability (handle as many customers -- big & small -- as possible) – Response time consistency• Our challenge: Handling huge, unpredictable variations in demand 2 enterprises Options: 100K+ users 1M+ pages 1) Build massive data centers with frequently under-used capacity 2) Use “co-lo” facilities with 5 enterprises frequently under-used capacity 10K+ users 100K+ pages 3) Use the cloud and just pay for what we need, when we need it
  44. 44. Our approach: Use the cloud Simulate hundreds of thousands of concurrent users, or millions of page views per hour by leveraging Gomez‟ network of public Cloud data centers Easily create load tests leveraging a global network of cloud datacentersRun load tests with real IE and FFbrowsers or choose from over 500 mobile devices
  45. 45. Part 2: What we found
  46. 46. What we found:Cloud Performance is a business issue … Poor Performance = Missed ROI
  47. 47. What we found:The Cloud Creates Availability and Performance Concerns • The Cloud is opaque, shared and elastic – Loss of visibility and control - traditional tools don’t apply – It’s complex, multi-source and variable – Others can affect my performance – Capacity issues and inconsistent bursting capabilities
  48. 48. Geographic Latency – West Coast Provider• Response time for sample transaction of reference application hosted on Amazon EC2 US West (California), as measured from major US cities
  49. 49. Geographic Latency – East Coast Provider• Response time for sample transaction of reference application hosted on Amazon EC2 US East (Virginia), as measured from major US cities
  50. 50. What we found:Cloud performance is highly variable• Average response time of reference app transaction across various Cloud providers, measured from several global locations
  51. 51. It’s not all about network latency
  52. 52. Part 3: How we solved those problems
  53. 53. A quick recap on Forrester’s recommendations …
  54. 54. Our major concerns: • Will we have all the capacity needed when our customers demand it? • Are we in the right places to provide a consistent service our customers?
  55. 55. Addressing Our Concerns: Cloud Vendor Criteria• Criteria – Additional Capacity and Diversity of High Volume Locations – Network of Cloud based Data Centers • Generate enough load to test any customer site • From enough locations to meet the needs of our global customer base• Key Requirements: 1. API Based – to support self-service scheduling of tests for our customers 2. Elastic Capacity – spin up servers when needed with our load agent already installed and ready to go 3. Hourly Pricing – pay only for the capacity we use 4. Location Diversity – have cloud locations in new geographies or in areas for heavy use 5. Capacity – have enough elastic capacity for the number of customers we have and volume of concurrent load tests
  56. 56. Our solution: Use Multiple Cloud Providers• Multiple providers• Multiple regions Asia/Pac• Multiple availability zones Europe North America
  57. 57. Our solution: Use Multiple Cloud Providers and our own Last Mile Network Simulate hundreds of thousands of concurrent users, or millions of page views per hour by leveraging Gomez‟ network of public Cloud data centers and Last Mile Peers Easily create load tests leveraging a global network of cloud datacenters Include peers from dozens of countries to gain insight into end user experience under loadRun load tests with real IE and FFbrowsers or choose from over 500 mobile devices
  58. 58. Pricing in the Cloud can be confusingAnd it can cost you more than necessary• Some vendors charge by • CPU hour or RAM hour or both• They all charge for bandwidth / transfer • Some are free inbound, some arent • Some charge by volume, some by bandwidth• Only the developer really knows • How the application works • What types of resources it requires Build your applications or select a Cloud vendor with an eye on optimizing their performance / cost ratio.
  59. 59. The Cloud Offers Unique Opportunities ForOptimization• Domain sharding is a common performance optimization• In traditional hosting environment, it came at a price• The Cloud, with proper planning, can provide sharding for free Potential bottleneck Bucket 1 Bucket 2
  60. 60. The Cloud Offers Unique Opportunities ForOptimization• Better performance, for little work, at no extra cost? 49 % Response Time Improvement $0 additional cost No reduction in capacity
  61. 61. Best Practice: Performance Testing Cloud CapabilitiesEvaluate vendors based on your goals…Capacity• Test vendors to 15-20% past estimated capacity goalsElasticity• Baseline end-user performance before & after testing• Test during pre-deployment and in production• Ramp elasticity testing to peak levelsBurstability• Isolate the cloud elements from other infrastructure to test• Test the “failover process”
  62. 62. Summary ROI in the Cloud is real and it’s measurable Be aware of the unique characteristics of the cloud Architect your applications to leverage cloud characteristics Consider usage pricing when designing your applications Be paranoid about availability, performance and scalability. www.compuware.com Thank You! www.cloudsleuth.net
  63. 63. Q&ASend questions via „chat‟ Additional Resources Available for download via WebEx http://www.sdtimes.com/link/34844 Being a good developer in the cloud era64 © 2011 Forrester Research, Inc. Reproduction Prohibited

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