Cloud Computing Potentials

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Cloud Computing Potentials, Volz Innovation GmbH

Cloud Computing Potentials, Volz Innovation GmbH

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  • 1. Cloud Computing Potentials Discussion Document Raphael Volz, Abraham Taherivand June 2009 1
  • 2. Executive summary  Cloud computing applies best practices of enterprise computing of last decades  Cloud services (IT-Services operated by IT-vendor) particularly attractive for SMEs  Cloud infrastructure only cheaper, if inhouse infrastructure utilization is low  Becoming a cloud infrastructure provider requires high resource utiliziation and tight control of KPIs  Applying cloud computing architecture principles makes inhouse IT-infrastructure more controllable  Building own cloud platform possible through available Open Source platforms  Open Source platforms successfully used in many application 2
  • 3. Agenda  Genesis of Cloud Computing  IT-demand perspective (of a SME)  IT-supply perspective  ... cost view  ... engineering view  Summary 3
  • 4. Virtualization is experiencing a renaissance and is the basis of cloud computing Evolution of enterprise computing 1960 1980 2000 2008 Cloud Mainframe Client/Server Virtualization Computing  Mainframe is the  Large number of  One server hosts  „Cloud“ as one platform for all servers for multiple virtual abstract resource applications specific machines combining all server  Client access via applications  Virtual machines capacity terminal  Distributed share server  Dynamic utilization  Increasing capacity access via resources of "cloud“ eventually means to network  More efficient use of resources (on buy new, larger protocols server resources demand) mainframe  Usually: low  Cloud is the  IBM invents utilization per platform for all virtualization to server applications optimize mainframe performance Source of pictures: Wikimedia Commons, Mainframe IBM 704 by LLNL 4
  • 5. Amazon and Google commercialize their infrastructure Genesis of cloud computing – Amazon und Google  Consumer internet providers require high availability  Amazon offer:  Downtime = lost sales  Storage (S3/CloudFront/Simple DB)  Google: ~40k US$ per minute  Virtual Server  Amazon: ~35k US$ per minute (EC2, Elastic MapReduce)  Yahoo: ~10k US$ per minute  Messaging System (SQS)  Big providers requirements unmet by  Google offer: market offer  Own application platform  Big providers invest massively into (Java/Python) own platforms and infrastructure  Price model:  Standardized I. CPU hours (Amazon by power,  Solid parallelized Google by use)  Fail-over and load-balanced II. Data transfer Notes: revenue / minute from annual reports 2008 III. Storage space Assumption: total systems failure worldwide IV. No. of requests (Amazon) 5
  • 6. IT vendors not only build but also „run“ their solution Examples for cloud services <SalesForce> CRM ERP for SME Budgeting Usual price model: No. of users + resource consumption Collaboration CRM Invoicing 6
  • 7. IT vendors not only build but also „run“ their solution Examples cloud services Motivation IT vendors <SalesForce> CRM  Economies of scale Run through standardized ERP for SME multi-tier operation Budgeting  Increased margins by eliminating middle- Build men in distribution channel Collaboration  Simplification of CRM engineering by control of platform Plan Invoicing Note: Shift of value generation: today future 7
  • 8. Agenda  Genesis of Cloud Computing  IT-demand perspective (of a SME)  IT-supply perspective  ... cost view  ... engineering view  Summary 8
  • 9. Discuss with us ! Full version available at: Contact: 27