Cloud Computing:
   In the Air or Down to earth




                          Jose “Pepe” Tam
                            ...
Reflexiones sobre Cloud Computing




                                    22
Objetivo
Diferentes ofertas de servicios existentes y los proveedores,
la arquitectura conceptual, sus desafíos y riesgos,...
Origin of the term “Cloud Computing”




• “Comes from the early days of the Internet
  where we drew the network as a clo...
What is Cloud Computing?
Cloud Computing = an emerging IT development, deployment and
delivery model, enabling real-time d...
What is Cloud Computing? (cont.)
           Cloud Computing refers to both the applications delivered as
           servic...
Cloud’s Reactions
Cloud Computing are hardware-based services offering
computing, network and storage capacity where:
    ...
What is Cloud Computing? (cont.)

Cloud computing is
using the internet to
access someone
else’s software
running on someo...
More Cloudy definitions

Software as a service (SaaS):
Software deployed as a hosted
service and accessed over the
Interne...
So... XaaS!




              1010
Service Model Architectures
   Cloud Infrastructure   Cloud Infrastructure   Cloud Infrastructure
                        ...
Cloud Computing evolution




       Pre-        Current Cloud   Offerings
       decessors
1212
What are the biggest Challenges that makes
Companies to consider Cloud Computing?




                                    ...
What are the services attributes needed to
present a Cloud Computing offering?




                                       ...
Who are the Cloud Computing Players?




                                       1515
What are the Cloud Computing Technology
Players offering?




                                          1616
Adoptions Plans for Enterprise Apps




                                      1717
Adoptions Plans for Financial & BI Apps




                                          1818
Cloud Computing application services
Adoption trends




                                       1919
Technology Evolution vs Customer Adoption




                                            2020
Gartner’s Group Hype Cycle for Cloud Computing




                                                 2121
Gartner’s Group Priority Matrix for
Cloud Computing




                                      2222
Anatomy of the Cloud:
        Technology Architecture




                                  2323
4 Cloud Deployment Models


Private cloud
enterprise owned or leased
Community cloud
shared infrastructure for specific
co...
Common Cloud Characteristics



 Cloud computing often leverages:
 Massive scale
 Virtualization
 Non-stop computing
 Free...
Anatomy of the Cloud:
        Technology Architecture




                                  2626
Anatomy of the Cloud:
        Technology Architecture




                                  2727
Anatomy of the Cloud:
        Technology Architecture




                                  2828
Anatomy of the Cloud:
        Application Architecture




                                   2929
Anatomy of the Cloud:
        Google platform
                          Core Services
                          • Hosting
...
Anatomy of the Cloud:
        Google platform




                          3131
Anatomy of the Cloud:
        Amazon Platform
                          Core Services
                          • S3 - Blo...
Anatomy of the Cloud:
        Microsoft Platform
                      Core Services
                      • Application H...
What are the risks considered when analyzing to
adopt Cloud Computing?




                                               ...
Security is the Major Issue




                              35
What are the risks considered when analyzing to
adopt Cloud Computing?




                                               ...
What are the positive criteria used to evaluate
Cloud Computing providers?




                                           ...
What are the negative criteria used to evaluate
Cloud Computing providers?




                                           ...
What are Cloud Computing expected
benefits?

  q Reduced Total Cost of Ownership:
  Cloud technology is paid incrementally...
How to builid the Business Case?



   Two Scenarios:
   - On Premise
   - Cloud Computing

   For each scenario:

   Bene...
Two Scenarios – the Costs




                            4141
Two Scenarios – Making the Business case




                                           4242
Perceived Costs Benefits of the Cloud




                                        4343
Hidden Costs of the Cloud




                            4444
Hidden Costs of the Cloud




                            4545
A Right Governance can reduce Hidden
Costs of the Cloud




                                       4646
Costs of Cloud with Governance




                                 4747
Cost of Traditional Data Centers

 11.8 million servers in data centers
 Servers are used at only 15% of
 their capacity
 ...
Energy Conservation and Data Centers


 Standard 9000 square foot costs
 $21.3 million to build with $1 million
 in electr...
Cloud Economics
Estimates vary widely on possible cost savings
“If you move your data centre to a cloud provider,
it will ...
What are the criteria used when implementing
new enterprise functionality ?




                                          ...
Cloud Computing Adoption Maturity Level Models




                                                 5252
Cloud Computing Take outs
Shared resources on the web and pay as I                       … similar to birth of Web
       ...
Cumplimos el Objetivo?
1. Cuáles son los principales desafíos
   que las empresas tienen con sus
   aplicaciones y que les...
[Logo de la
Preguntas y Respuestas   organización
                         representada
                           (opcion...
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Cloud Computing: On the Air or Down to Earth - Beneficios para la Empresa

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Cloud Computing: On the Air or Down to Earth - Beneficios para la Empresa

  1. 1. Cloud Computing: In the Air or Down to earth Jose “Pepe” Tam Chief Architect Neoris
  2. 2. Reflexiones sobre Cloud Computing 22
  3. 3. Objetivo Diferentes ofertas de servicios existentes y los proveedores, la arquitectura conceptual, sus desafíos y riesgos, criterios de adopción, y beneficios. Este tema pretende responder preguntas como: 1. Cuáles son los principales desafíos que las empresas tienen con sus aplicaciones y que les hacen considerar adoptar Cloud Computing? 2. Cuáles son las ofertas actuales de proveedores de Cloud Computing? 3. Cómo están los planes de aceptación de las diferentes ofertas de Cloud Computing en los Clientes? 4. Cuáles son los riesgos que las empresas ven para adoptar Cloud Computing? 5. Qué criterios se pueden utilizar para evaluar proveedores 33
  4. 4. Origin of the term “Cloud Computing” • “Comes from the early days of the Internet where we drew the network as a cloud… we didn’t care where the messages went… the cloud hid it from us” – Kevin Marks, Google • First cloud around networking (TCP/IP abstraction) • Second cloud around documents (WWW data abstraction) • The emerging cloud abstracts infrastructure complexities of servers, applications, data, and heterogeneous platforms – (“muck” as Amazon’s CEO Jeff Bezos calls it)
  5. 5. What is Cloud Computing? Cloud Computing = an emerging IT development, deployment and delivery model, enabling real-time delivery of products, services and solutions over the Internet (i.e., enabling cloud services) ● IDC, 2008 Cloud Computing = computing as a style of computing in which scalable and elastic (massively scalable) IT-enabled capabilities are delivered as a service to external customers using Internet technologies. ● Gartner Group, 2009 (updated) Cloud computing = a pool of abstracted, highly scalable, and managed compute infrastructure capable of hosting end-customer applications and billed by consumption. ● Forrester, 2009 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 55
  6. 6. What is Cloud Computing? (cont.) Cloud Computing refers to both the applications delivered as services over the Internet and the hardware and systems software in the datacenters that provide those services. The services themselves have long been referred to as Software as a Service (SaaS), so we use that term. The datacenter hardware and software is what we will call a Cloud. When a Cloud is made available in a pay-as-you-go manner to the public, we call it a Public Cloud; the service being sold is Utility Computing. Current examples of public Utility Computing include AmazonWeb Services, Google AppEngine, and Microsoft Azure. We use the term Private Cloud to refer to internal datacenters of a business or other organization that are not made available to the public. Thus, Cloud Computing is the sum of SaaS and Utility Computing, but does not normally include Private Clouds. Electrical Engineering and Computer Sciences University of California at Berkeley Technical Report No. UCB/EECS-2009-28 http://www.eecs.berkeley.edu/Pubs/TechRpts/2009/EECS-2009-28.html 66
  7. 7. Cloud’s Reactions Cloud Computing are hardware-based services offering computing, network and storage capacity where: 1) Hardware management is highly abstracted from the buyer. The underlying hardware can be anywhere geographically. 2) Buyers incur infrastructure costs as variable. Enterprises incur no infrastructure capital costs, just operational costs and operational costs are incurred on a pay-per-use basis, with no contractual obligations. 3) Infrastructure capacity is highly elastic:can be scaled up or down dynamically, and immediately, which differentiates from traditional hosting service providers. The McKinsey 1. Cloud is more expensive: attention should be document provides too focused on internal data centers, because they're more cost-effective. many assumptions and 2. Companies shouldn't focus on internal clouds: The generalizations big payoff is leveraging server consolidation via virtualization. regarding IT 3. Companies can be nearly as efficient as cloud infrastructure costs, providers: By leveraging server virtualization, internal IT organizations can raise server utilization to 35 and not enough focus percent, just shy of Google's 38 percent. on the business cases ● 77
  8. 8. What is Cloud Computing? (cont.) Cloud computing is using the internet to access someone else’s software running on someone else’s hardware in someone else’s data center while paying only for what you use. More Cloudy definitions: ● Software as a Service (SaaS) ● Platform as a Service (PaaS) ● Infrastructure as a Service (IaaS) 88
  9. 9. More Cloudy definitions Software as a service (SaaS): Software deployed as a hosted service and accessed over the Internet. Platform as a service (PaaS): Platforms that can be used to deploy applications provided by customers or partners of the PaaS provider. Infrastructure as a service (IaaS): Computing infrastructure, such as servers, storage, and network, delivered as a cloud service, typically through virtualization. 99
  10. 10. So... XaaS! 1010
  11. 11. Service Model Architectures Cloud Infrastructure Cloud Infrastructure Cloud Infrastructure IaaS Software as a Service PaaS PaaS (SaaS) SaaS SaaS SaaS Architectures Cloud Infrastructure Cloud Infrastructure IaaS Platform as a Service (PaaS) PaaS PaaS Architectures Cloud Infrastructure IaaS Infrastructure as a Service (IaaS) Architectures
  12. 12. Cloud Computing evolution Pre- Current Cloud Offerings decessors 1212
  13. 13. What are the biggest Challenges that makes Companies to consider Cloud Computing? 1313
  14. 14. What are the services attributes needed to present a Cloud Computing offering? 1414
  15. 15. Who are the Cloud Computing Players? 1515
  16. 16. What are the Cloud Computing Technology Players offering? 1616
  17. 17. Adoptions Plans for Enterprise Apps 1717
  18. 18. Adoptions Plans for Financial & BI Apps 1818
  19. 19. Cloud Computing application services Adoption trends 1919
  20. 20. Technology Evolution vs Customer Adoption 2020
  21. 21. Gartner’s Group Hype Cycle for Cloud Computing 2121
  22. 22. Gartner’s Group Priority Matrix for Cloud Computing 2222
  23. 23. Anatomy of the Cloud: Technology Architecture 2323
  24. 24. 4 Cloud Deployment Models Private cloud enterprise owned or leased Community cloud shared infrastructure for specific community Public cloud Sold to the public, mega-scale infrastructure Hybrid cloud composition of two or more clouds
  25. 25. Common Cloud Characteristics Cloud computing often leverages: Massive scale Virtualization Non-stop computing Free software Geographic distribution Service oriented software Autonomic computing Advanced security technologies
  26. 26. Anatomy of the Cloud: Technology Architecture 2626
  27. 27. Anatomy of the Cloud: Technology Architecture 2727
  28. 28. Anatomy of the Cloud: Technology Architecture 2828
  29. 29. Anatomy of the Cloud: Application Architecture 2929
  30. 30. Anatomy of the Cloud: Google platform Core Services • Hosting • Data Access (BigTable) • Google Data Services 3030
  31. 31. Anatomy of the Cloud: Google platform 3131
  32. 32. Anatomy of the Cloud: Amazon Platform Core Services • S3 - Blob storage • SimpleDB - structure data • EC2 - OS in the cloud • SQS - Queue in the cloud 3232
  33. 33. Anatomy of the Cloud: Microsoft Platform Core Services • Application Hosting (Azure) • Data - SDS & Azure Storage • Blobs (part of SDS and Azure storage) • Queues (part of Azure storage) •. NET Services (Access Control, Service Bus, & Workflow) • Live Services (Mesh & everything else) 3333
  34. 34. What are the risks considered when analyzing to adopt Cloud Computing? 3434
  35. 35. Security is the Major Issue 35
  36. 36. What are the risks considered when analyzing to adopt Cloud Computing? 3636
  37. 37. What are the positive criteria used to evaluate Cloud Computing providers? 3737
  38. 38. What are the negative criteria used to evaluate Cloud Computing providers? 3838
  39. 39. What are Cloud Computing expected benefits? q Reduced Total Cost of Ownership: Cloud technology is paid incrementally, saving organizations money. q Increased Scalability and Reliability: leverage the massive international infrastructure of the cloud provider. This brings benefits of backup, reduced latency, fault tolerance and the ability to support peak demands. q Highly Automated : No longer do IT personnel need to worry about keeping software up to date. q Flexibility: Cloud computing offers much more flexibility than past computing 3939
  40. 40. How to builid the Business Case? Two Scenarios: - On Premise - Cloud Computing For each scenario: Benefits - Savings on upgrades & hardware renewal - Savings on servers administration - Reduced time to market Costs - OPEX - Hardware - Software 4040
  41. 41. Two Scenarios – the Costs 4141
  42. 42. Two Scenarios – Making the Business case 4242
  43. 43. Perceived Costs Benefits of the Cloud 4343
  44. 44. Hidden Costs of the Cloud 4444
  45. 45. Hidden Costs of the Cloud 4545
  46. 46. A Right Governance can reduce Hidden Costs of the Cloud 4646
  47. 47. Costs of Cloud with Governance 4747
  48. 48. Cost of Traditional Data Centers 11.8 million servers in data centers Servers are used at only 15% of their capacity 800 billion dollars spent yearly on purchasing and maintaining enterprise software 80% of enterprise software expenditure is on installation and maintenance of software Data centers typically consume up to 100 times more per square foot than a typical office building Average power consumption per server quadrupled from 2001 to 2006. Number of servers doubled from 2001 to 2006 4848
  49. 49. Energy Conservation and Data Centers Standard 9000 square foot costs $21.3 million to build with $1 million in electricity costs/year Data centers consume 1.5% of our Nation’s electricity (EPA) .6% worldwide in 2000 and 1% in 2005 Green technologies can reduce energy costs by 50% IT produces 2% of global carbon dioxide emissions 4949
  50. 50. Cloud Economics Estimates vary widely on possible cost savings “If you move your data centre to a cloud provider, it will cost a tenth of the cost.” – Brian Gammage, Gartner Fellow Use of cloud applications can reduce costs from 50% to 90% - CTO of Washington D.C. Preferred Hotel Traditional: $210k server refresh and $10k/month Cloud: $10k implementation and $16k/month George Reese, founder Valtira and enStratus Using cloud infrastructures saves 18% to 29% before considering that you no longer need to buy for peak capacity 5050
  51. 51. What are the criteria used when implementing new enterprise functionality ? 5151
  52. 52. Cloud Computing Adoption Maturity Level Models 5252
  53. 53. Cloud Computing Take outs Shared resources on the web and pay as I … similar to birth of Web and eCommerce: much consume without prior investments lower cost, faster tTTM, new source of alue What expectations should I have and what A Clear definition of platform, services and value commitment I can do for proposition is key my Company if using Cloud Computing? Leveraging Cloud Computing needs some Architecture definitions: Public or Private Cloud for “virtual- When I deploy an tructure”? What Platform Computing will your Application I need to Applications Architecture Team will use? decide Where (hardware) and What (software) I will use… Remember to use Cloud Governance and complete your Business Case before How to convince my Company to adopting Cloud Computing use Cloud Computing? 5353
  54. 54. Cumplimos el Objetivo? 1. Cuáles son los principales desafíos que las empresas tienen con sus aplicaciones y que les hacen considerar adoptar Cloud Computing? 2. Cuáles son las ofertas actuales de proveedores de Cloud Computing? 3. Cómo están los planes de aceptación de las diferentes ofertas de Cloud Computing en los Clientes? 4. Cuáles son los riesgos que las empresas ven para adoptar Cloud Computing? 5. Qué criterios se pueden utilizar para evaluar proveedores de Cloud Computing? 6. Qué beneficios se pueden esperar para la empresa usando Cloud 5454
  55. 55. [Logo de la Preguntas y Respuestas organización representada (opcional)] Jose “Pepe” Tam Jose.tam@neoris.com Chief Architect - Neoris

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