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
  • Impact of cloud computing on the software industry

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

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