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Oracle Open World Preso on Cloud Economics

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Presentation on Cloud Economics and Business Cases for Cloud Models

Presentation on Cloud Economics and Business Cases for Cloud Models

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  • 1. Session ID: CON7393Session Title: Cloud Economics - A Business Case ApproachOracle Open World 2012 Ron Batra, Director, Cloud Computing October 1, 2012 © 2011 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are the property of their respective owners.
  • 2. Speaker Bio Currently leads Product Development and Management for AT&T Hosting, Cloud and Application Services. •~18+ years cross industry technology experience in IT, Consulting and Product Management, in Sales, Delivery and Leadership roles from $500K to $20MM. •Oracle experience include Database, Apps and Middleware. •Industry vertical includes Energy, Utilities, Semi-Conductor, Telecom, Healthcare, Finance, Automotive, Aerospace, Retail •Served as an Oracle Deputy CTO – 2008-2009, •Serving as an Oracle ACE Director – since 2007 •Serve User Groups (IOUG, OAUG) in several capacities.2
  • 3. Contact Information www.linkedin.com/in/ronbatra @ronbatra rb9360@att.com +151293486593
  • 4. Safe Harbor and Disclaimer Information contained in this presentation represents my views only. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. All content is copyrighted and no reproduction in any format allowed, unless authorized by the author.4
  • 5. AT&T in the Cloud Space5 © 2011 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are the property of their respective owners.
  • 6. AT&T is Focused on Delivering Highly Secure, ReliableCloudBuilding on a history in multi-tenancy Layered Securityand infrastructure services Protects the Cloud• Global experience securing 38 data centers globally, with audited network, logical and physical controls• Broad experience managing and securing multi-tenant environments• Extensive experience providing Logical separation in virtual, shared infrastructures• Corporate wide focus on layered Physical security, including investment in AT&T Labs to combat cyber threats Network6 © 2011 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are the property of their respective owners.
  • 7. AT&T Cloud Architect Joins a Portfolio of Application Solutions Enterprise On-Demand AT&T Managed Solutions Client Self Service Managed AT&T Network z Self-service multi-tenant Managed virtualized multi- Managed virtualized Highly reliable physical public cloud tenant (virtual private) dedicated (private) infrastructure7
  • 8. AT&T Cloud Architect Flexible Options for Every Application Public Private Bare Metal Dedicated Instance Instance Server Server Instance/VM Hypervisor Server Hardware Physical Virtualized • General purpose • Uses similar to • High performance • Constant/ stable web applications public instances computing workloads • Development/ test • Plus compliance or • I/O intensive data • Dedicated server • Variable/ transient performance needs processing virtualization workloads • Database servers8
  • 9. Full Featured Service Helps You Create Your Cloud Deployment Public Private Bare Metal Dedicated Single Tenant Servers    Virtual via Hypervisor   Optional Hourly Billing    Monthly Billing     Provisioning Time Minutes Minutes Minutes 2-4 HoursChoose the Add-on Options and Features You Need, Including:• Software: OS, database, virtualization, control panel, utility• Network: bandwidth, port speed, IP addresses, load balancing, VPN access, content delivery• Monitoring: hardware and OS monitoring, system health monitoring, application monitoring• Security: Intrusion detection systems, firewalls, anti-virus and anti-spyware protection, SSL certificates• Storage: Backup, replication, snapshots, object-based storage• Other Options: Email delivery service, digital transcoding 9
  • 10. Cloud Computing 101 and NIST10 © 2012 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property.
  • 11. NIST Definition of Cloud Computing •Cloud computing is a model for enabling convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction. This cloud model promotes availability and is composed of five essential characteristics, three service models, and four deployment models. •Note 1: Cloud computing is still an evolving paradigm. Its definitions, use cases, underlying technologies, issues, risks, and benefits will be refined in a spirited debate by the public and private sectors. These definitions, attributes, and characteristics will evolve and change over time. •Note 2: The cloud computing industry represents a large ecosystem of many models, vendors, and market niches. This definition attempts to encompass all of the various cloud approaches Source: National Institute of Standards and Technology (NIST).11
  • 12. What is “Cloud Computing”?“…a model for enabling ubiquitous,convenient, on-demand network accessto a shared pool of configurablecomputing resources that can berapidly provisioned and released withminimal management effort or serviceprovider interaction.”- National Institutes of Standards and Technology12 © 2011 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are the property of their respective owners.
  • 13. 5 Essential Characteristics On Demand Self Service Broad Network Access Resource Pooling Rapid Elasticity Measured Service13
  • 14. Cloud Computing Service Models14
  • 15. Cloud Computing Deployment Models VPN IaaS Virtual Private Cloud Public Hybrid IaaS IaaS SaaS PaaS Private15
  • 16. Cloud Computing Value Propositions16 © 2011 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are the property of their respective owners.
  • 17. Top 3 Cloud Computing Value PropositionsPrivate Cloud1. All about control 1. Costs 2. Deployment Strategy (Roadmap) 3. Timeline 4. Many more….2. Less security concerns – everything “inside” the firewall3. Does not need a constant and reliable connection to the Internet17
  • 18. Top 3 Cloud Computing Value PropositionsPublic Cloud 1. Much more control: 1. No need to build, just buy service(s). Can lead to leaner and 1. Over costs agile SDLC. 2. Roadmap 3. Timeline 2. Financial model shift – to Op Ex. from Cap Ex. 3. Scale capacity linearly as business grows.18
  • 19. Cloud Computing Value PropositionsHybrid Cloud 1. Mix and Match Computing Services, as applicable 2. Leverage existing assets and infrastructure. 3. Good balance between control and trying a new paradigm19
  • 20. 20
  • 21. Cloud Computing Use Cases21 © 2011 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are the property of their respective owners.
  • 22. Cloud Computing Use Cases MatrixCross-Referenced by Segment, Delivery Model Use Case Segment Public Private Hybrid 1 Seasonal Capacity Enterprise IaaS, PaaS IaaS, PaaS IaaS, PaaS 2 Financial Model (Opex. Vs. Enterprise IaaS, PaaS, SaaS IaaS, PaaS, IaaS, PaaS, CapEx) SaaS SaaS 3 Non-Core Competency Enterprise IaaS, PaaS, SaaS IaaS, PaaS, IaaS, PaaS, SaaS SaaS 4 Outsourcing Enterprise IaaS, PaaS, SaaS IaaS, PaaS, IaaS, PaaS, SaaS SaaS 5 Short Life Cycle Projects Enterprise IaaS, PaaS IaaS, PaaS IaaS, PaaS 6 Disaster Readiness Enterprise IaaS, PaaS IaaS, PaaS IaaS, PaaS 7 Massively Scalable Computing Enterprise IaaS, PaaS IaaS, PaaS IaaS, PaaS 8 Infrastructure Consolidation Enterprise IaaS, PaaS, SaaS IaaS, PaaS, IaaS, PaaS, SaaS SaaS 9 Universal Access Consumer Pictures, Videos, N/A N/A other media10 Data Center Real Estate/Capacity Enterprise IaaS, PaaS IaaS, PaaS IaaS, PaaS22 Management
  • 23. Cloud Computing Value Drivers Why go Cloud ?23
  • 24. Cloud Computing Use Cases Value Drivers Use Case Top 3 Business and Technology Drivers1 Seasonal Capacity Capacity Gap and Application and Infrastructure Total Cost Duration Architecture2 Financial Model Cash Flow Cost of Borrowing Total Cost3 Non-Core Competency Organizational Direction Existing On-Premise Investment Application Portfolio4 Outsourcing Organizational Direction Application Architecture Total Cost5 Short Life Cycle Projects Capacity Gap and Application Architecture and Total Cost Duration Integration Cost6 Disaster Readiness Degree of Business Recovery Time Objectives Total Cost Continuity Desired (RPO/RTO)7 Massively Scalable Capacity Gap and Usage Application and Infrastructure Total Cost Computing Pattern (s) Architecture8 Infrastructure Existing Footprint Economies of Shared Infrastructure Total Cost Consolidation9 Universal Access Number of Devices Application Portability Total Cost10 Data Center Real Existing Footprint Organizational Direction Relates to #3 Estate/Capacity and #4 Management24
  • 25. Calculating Cloud Total Cost of Ownership (TCO)25
  • 26. Total Cost of Ownership – Page IFor a Business evaluating a move to Cloud Cost Item Category On Premise Public Cloud Hybrid Cloud (Private Cloud) 1 Server Hardware Infrastructure Y Usage Based ** 2 Storage Hardware Infrastructure Y Usage Based ** 3 Security Hardware Infrastructure Y Usage Based ** 4 Security Software Licensing Software Y Usage Based ** 5 Security Software Maintenance Software Y Usage Based ** 6 Networking Hardware Infrastructure Y Usage Based ** 7 Networking Software Infrastructure Y Usage Based ** 8 Datacenter Facility Facility Y Usage Based ** 9 Utilities and Power Facility Y Usage Based **10 Data Transfer Infrastructure N Y** **11 Server Software Licensing Infrastructure Y ** **12 Server Software Maintenance Software Y ** **13 Dev Platform Licensing Software Y* Y* **14 Dev Platform Maintenance Software Y* Y* **26 *Open Source Products typically do not carry licensing costs ** Depends on Configuration
  • 27. Total Cost of Ownership – Page IIFor a Business evaluating a move to Cloud Cost Item Category On Premise Public Cloud Hybrid Cloud (Private Cloud) 15 Applications Licensing Software Y Usage Based ** ** 16 Applications Maintenance Software Y Usage Based ** ** 17 Data Center Staff People Y N ** 18 Server Administration People Y N ** 19 Network Administration People Y N** ** 20 Security Administration People Y N** ** 21 Storage Administration People Y N** ** 22 Platform (Database, Middleware People Y Y Y Administration) 23 Application Developer(s) – several People Y Y Y technologies 24 Project Management People Y Y Y 25 Architecture - Infrastructure People Y N* ** 26 Architecture - Technology People Y N* **27 *Open Source Products typically do not carry licensing costs ** Depends on Configuration
  • 28. Total Cost of Ownership – Page IIIFor a Business evaluating a move to Cloud Cost Item Category On Premise Public Cloud Hybrid Cloud (Private Cloud) 27 Architecture - Application People Y Y ** 28 Architecture Integration and People Y Y ** Middleware 29 Architecture – Cloud People Y Y Y 30 Architecture - Enterprise People Y Y ** 31 Operations (IT, Business etc.) People Y Y** ** 32 Cloud Integration People/Software N N** Y 33 Testing Software (Licensing) Software Y Usage Based** ** 34 Testing Software Software Y Usage Based** ** (Maintenance) 35 Testing Life Cycle (Project) People Y Y ** 36 Business Process People Y Y Y Engineers/Analysis28 *Open Source Products typically do not carry licensing costs ** Depends on Configuration
  • 29. Key Takeaways 1. Cloud Computing Use Cases are driven by a combination of business and technology considerations 2. Total Cost of Ownership has several inputs 3. A Cloud Computing Business Case needs to include several inputs, including cost, business direction and key value drivers in helping decide a complex decision.29
  • 30. Contact Information www.linkedin.com/in/ronbatra @ronbatra rb9360@att.com +1512934865930
  • 31. SAVE THE DATE! COLLABORATE 13 April 7-11, 2013Colorado Convention Center Denver, Coloradohttp://collaborate13.ioug.org
  • 32. Thank You© 2012 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are trademarks of AT&TIntellectual Property and/or AT&T affiliated companies. All other marks contained herein are the property of their respective owners. Thisdocument is not an offer, commitment, representation or warranty by AT&T and is subject to change.

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