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Impact of cloud computing on the software industry

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  • Patterns that are suitable in terms of usage for apps to go to cloudLot of enterprise apps have one or other of these patternsEven if usage was very flat, even then cost of cloud is comparable now with pricing for reserved instances.In some sense it is not about usage patterns anymore, it is cost of moving to cloud + cost of running their, versus cost of running in-house for a certain QoS need
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    • 1. Impact of Cloud Computing on the Software Industry
      Anand Deshpande
      November 2010
    • 2. Personal History and Biases
      Founder and CEO of Persistent Systems.
      Established in 1990.
      Leader in outsourced software product development.
      We work with more than 250 Customers, 5000+ employees.
      Responsible for tracking Technology and for sales. Personally, track database technologies.
    • 3. Cloud computing
      and mobile devices
      will transform the
      software industry.
    • 4. What is driving the adoption of cloud computing?
      Economics.
    • 5. What is driving the adoption of cloud computing?
      Economics.
      Illusion of infinite resources
      No up-front cost
      Fine-grained billing (e.g. hourly)
      Utility Computing: Pay-as-you-go computing promises substantially reduced cost.
    • 6. We are grossly over-provisioned
      Capacity includes:
      Computer Servers
      Storage
      Software Licenses
      Network bandwidth
      Energy
      Air Conditioning
      Rent
      Maintenance Costs
      Operator Staff
      Capacity
      Resources
      Demand
      Static data center
      Time
      Unused resources
      Slide Credits: Berkeley RAD Lab
    • 7. Heavy penalty for under-provisioning:Poor quality of service – lost customers.
      Resources
      Resources
      Resources
      Capacity
      Capacity
      Capacity
      Lost revenue
      Demand
      Demand
      Demand
      2
      3
      2
      3
      2
      3
      1
      1
      1
      Time (days)
      Time (days)
      Time (days)
      Lost users
      Slide Credits: Berkeley RAD Lab
    • 8. Ideally, want optimal provisioning of capacity across all resources.
      Resources
      Capacity
      Capacity
      Resources
      Resources
      Demand
      Capacity
      Demand
      Data center in the cloud
      2
      3
      1
      Demand
      Time (days)
      Pay-per-use business models
      Time
      Time
      Static data center
      Slide Credits: Berkeley RAD Lab
    • 9. What must the Cloud Provision for?
      “Growing Fast“
      “On and Off “
      Inactivity
      Period
      Compute
      Compute
      AverageUsage
      Usage
      Average
      Time
      Time
      On & off workloads (e.g. batch job)
      Over provisioned capacity is wasted
      Time to market can be cumbersome
      Successful services needs to grow/scale
      Keeping up w/ growth is big IT challenge
      Complex lead time for deployment
      “Unpredictable Bursting“
      “Predictable Bursting“
      Compute
      Compute
      AverageUsage
      Average Usage
      Time
      Time
      Unexpected/unplanned peak in demand
      Sudden spike impacts performance
      Can’t over provision for extreme cases
      Services with micro seasonality trends
      Peaks due to periodic increased demand
      IT complexity and wasted capacity
      Source: Microsoft
    • 10. By reducing server sprawl, improving utilization,
      simplifying operations, standardizing, increasing
      reliability, reducing energy and cooling
      • hardware costs can be reduced 33-70 percent
      • 11. maintenance costs can be reduced up to 50 percent
      • 12. support costs can be reduced by as much as 33 percent
      • 13. floor space/facility costs can be reduced 33-50 percent
      http://www-935.ibm.com/services/us/its/html/green-datacenter-svcs-landing.html
    • 14. Cloud Computing: Why Now?
      Economic slowdown has accelerated the adoption of cloud computing.
    • 15. Mobile Internet is getting mainstream
      Network: Roadmap for 3G/LTE/4G/WiFi/WiMax is getting established.
      Operating Systems: Android launch has been very impressive. iOS, Windows7 are viable contenders, cannot rule out Symbian.
      Devices: Price points for smart phones are getting affordable.
      Form factor: With the launch of the iPad and tablet form factors from Dell and Samsung, the tablet war has just begun.
      User Interface: Touch, motion and gestures
    • 16. Expectations from the Mobile Internet
      Always on access with super fast boot time.
      Fast broadband speeds
      Near zero latency access to nearly all information
      More than day-long battery life
      Appropriate form factor
      Location based information
      Presence
    • 17. The landscape is changing
    • 18. Are you ready?
    • 19. What does this mean for me?
    • 20. Hardware
      IT Budgets
      Custom software
      IT Maintenance
      Software Products
      Total IT Costs
      Business Model
      Pay per use
      Consequences of the Cloud
    • 21. Proliferation of AppStores and the pay-per-use business models for apps
    • 22. Products will be consumed in ready-to-eat bite-sized portions
    • 23. From the App Store
      Low per Unit Cost
      ZeroLoyalty
      Pay per Use
      Snap-in
      Snap-out
    • 24. Innovation through Gandhian Engineering
      Getting more for less for more
    • 25. India: the source and the market for innovation
    • 26. Persistent: your trusted partner to help you get there now!
    • 27. We welcome your comments:
      Anand Deshpande (anand@persistent.co.in)
      Persistent Systems
      November 2010