Washington D.C, March 30, 1965, g ‘Over the past century or more there have evolved in this country a limited number of basic systems serving the general public - a group generally termed "public utilities.” What is now developing, very rapidly, is a critical need - as yet not fully perceived - for a new national i f ti l information utility which can gather, store, process, ti tilit hi h th t program, retrieve and distribute on the broadest possible scale, to industry; to the press…Just as an electrical energy system distributes power, this new information utility will enable subscribers to obtain, economically, efficiently, and immediately, the required information flow to facilitate the conduct of business, personal and ,p other affairs’ Western Union Document
1961: CTSS (Compatible Time-Sharing System) demonstrated at MIT
ARPA, Washington 25, D.C. April 23, 1963 g p It will possibly turn out, I realize, that only on rare occasions do most or all of the computers in the overall system operate together in an integrated network. It seems to me to be interesting and important, nevertheless, to develop a capability for integrated network operation. If such a network as I envisage nebulously could be brought into operation, we would have at least four large computers, perhaps six or eight small computers, and a great assortment of disc files and magnetic tape units–not to mention the remote consoles and teletype stations–all churning away. It seems easiest yp g y to approach this matter from the individual user’s point of view–to see what he would like to have, what he might like to do, and then to try to figure out how to make a system within which his requirements can be met Memorandum For Members and Affiliates of the Intergalactic Computer Network, J.C.R. Licklider
What Ever Happened to Client/Server? pp “Client Servers were a tremendous mistake. And we are sorry that we sold it y to you. Instead of applications running on the desktop and data sitting on the server, everything will be Internet based." Larry Ellisson, June 1999
And more recently… y• In 1999 Salesforce.com pioneered the concept of delivering t d li i enterprise applications via a simple website. i li ti i i l b it• In 2002 Amazon started to offer Amazon Web Services, which provided a suite of cloud based services including cloud-based storage and computation• In 2006 Amazon launched its Elastic Compute cloud 2006, (EC2) as a commercial web service that allows small companies and individuals to rent computers on which to p p run their own computer applications• In 2009 Google and others started to offer browser- based enterprise applications, though services such as Google Apps
IT Doesn’t Matter Harvard Business Review, 2003 Technological, economic, Technological economic and competitive forces are combining to transform the role information technology plays in business, with profound implications f IT f d i li ti for management and investment as well as strategy and organization.
Walmart losing market-share in 2007 g ‘Wal-Mart was making their margins on sourcing and great t h l t technology systems, b t everyone h got that t but has t th t now," says Patricia Edwards, a portfolio manager and managing director at Wentworth Hauser and Violich who Wentworth, focuses on retail ... Furthermore, analysts say that Wal- Marts reliance on homegrown IT systems—and its g y conviction of their superiority—needs to change. [CIO Rollin] Ford and his team, they say, must bring in best- of-breed commercial applications, such as BI and price- fb d i l li ti h d i optimization tools, that can help it compete with rising retail superstars such as Target JC Penney and Tesco’ Target, Tesco
Trend 1: The Internet as a Unifying CommunicationPlatform The Internet will connect billions of people and trillions of devices.
Trend 2: The Internet as an Intelligent Application PlatformThe Internet will become theservice platform of the future and it will take over largepparts of the functionality and y intelligence that is currently provided on personal platforms. l tf
Trend 3: The Internet as an Immersive Medium The Internet is becoming an immersive medium that will support a natural interaction between people and their environment.
Software-as-a-service is key driver y• The most important contribution to cloud computing has been th emergence of "killer apps" f b the f "kill " from l di leading technology giants such as Microsoft and Google. When these companies deliver services in a way that is reliable and easy to consume, the knock-on effect to the industry as a whole is a wider general acceptance of online g services• Other key factors that have enabled cloud computing to evolve include the maturing of virtualisation technology, the development of universal high-speed bandwidth, and universal software interoperability standards
Critical Attributes of Cloud Computing p g• Service Based: Consumer concerns are abstracted from provider concerns through service interfaces• Scalable & Elastic: Services scale on-demand to add or remove resources as needed needed.• Shared: Services share a pool of resources to build economies of p scale.• Metered B U M t d By Use: S iServices are tracked with usage metrics t enable t k d ith t i to bl multiple payment models.• Internet Technologies: Services are delivered through use of Internet Identifiers, Formats, and Protocols.
Traditional companies are adapting… p p g• Dell • 2008: pays $1,4 Billion for EqualLogic • 2009: buys Perot Systems • 2010: buys Boomi Insite One and Compellent Boomi, Technologies• HP • 2008: buys EDS • 2010: pays $2,4 Billion for 3PAR • 2011: buys Vertica
The Red Ocean of cloud infrastructure stacks Dedicated Commercial Cloud Stacks Open Source Cloud Stacks Eucalyptus Enterprise Editon Eucalyptus Enterprise Editon OpenNebula Cloud.com CloudStack Nimbus Project VMware vCloud Director OpenStack Surgient Platform ‘Customers are overwhelmed by Wakame‐VDC (Japan) Morph Labs mCloud competing technology stacks with Morph Labs mCloud competing technology stacks with Enomaly ECP IT Automation Tools with Cloud Functionality CA/3Tera AppLogic unclear boundaries and definitions Abiquo which make it hard to compare. In Novell Cloud Manager Nimbula Director Nimbula Director Citrix XenCloud ki d f i BMC Cloud Lifecycle Management BMC Cloud Lifecycle Management these kinds of environments some large th t DynamicOps l Univa UniCloud ‘trusted’ players typically end up HP Cloud Service Automation Parallels Elastic IT dominating the market’ Dell VIS RedHat Cloud Foundations RedHat Cloud Foundations Intalio/IaaS Private Cloud Appliances HexaGrid VxDatacenter IBM CloudBurst Cloupia Unified Infrastructure Controller Unisys Secure Private Cloud Joyent Smart OS Joyent Smart OS Oracle Exalogic Elastic Cloud Oracle Exalogic Elastic Cloud Flexiant Extility Vblock from EMC/Cisco/VMware Platform ISF Microsoft Azure Appliance
Gartner Says SaaS Revenue Within the Enterprise Application Software Market to Total $9.2 Billion in 2010• Social media and social software are becoming increasingly integrated with SaaS solutions, as social platforms such as Facebook and Twitter are leveraging customer service, sales and marketing initiatives. In contrast, recent research indicates that social software has the lowest adoption rate by buyers of SaaS solutions solutions.• Content, communications and collaboration (CCC) continues to lead the enterprise SaaS market with worldwide CCC revenue on pace to reach $2.9 billion in 2010, followed by customer relationship management ( g (CRM) revenue of $ ) $2.6 billion.• For CCC technologies, SaaS use varies across the market segments. For F certain markets, such as ECM and search, S S i b l used t i k t h d h SaaS is barely d at all, while for Web conferencing, it is the predominant form of software access.
The user versus the CIO: the IBBT caseThe user is on the cloud The CIO not yetDropbox (box.net) ERP Agresso (in‐house)Iphone and Ipad apps and Ipad Windows Exchange (in‐house) Exchange (in‐house)Gmail Alfresco (in‐house)Facebook Drupal (in‐house)Twitter Considering CRM in the cloud moving mail CRM in the cloud, moving mail to the cloudEvernoteE t
“The Cloud Integrator” g System integrators will become p y g partners that help businesses configure the right combination of computing resources (private cloud, public cloud, legacy applications), applications) aligned with their business needs in the most cost effective and secure manner
Aligning Business and Technology CoBiT COSO CMMi Balanced SC KPI’s Enterprise Architecture Business ICT Organisation Service organisation •Roles Processes •Functions •Itil Processes P •AsL •Outsourcing
What are the VC’s doing? g• In a departure from recent years when asked about their predictions for industry sectors, more VCs expect investments in Information Technology (IT) to increase than in the Life Sciences and Cleantech sectors Investments in Consumer Internet & Digital sectors. Media (82 percent), Cloud Computing (80 percent) and Mobile/Telecom (66 percent) are anticipated to increase in the year ahead. h d• Cloud Computing Startup Nomadesk Raises $7 Million To Support US Expansion (oct 2010)• Enterprise Cloud Storage Platform Box.net Raises $48M From Andreessen Horowitz And Others (mar 2011)
Dynamic interplay between Private and Public Clouds
Preference shift in public and p p private clouds
The future: spot markets for cloud computing ( p p p g (SpotCloud) ? )