Cloud computing strategy and key parameters required for success in offering Cloud services specific to Indian market. This market is the biggest potential opportunity with an immediate scope for business growth.
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Cloud Computing For India Guide To Success
1. Business Model and strategy
research- Cloud Computing
Indian Opportunities
Road map and challenges for success
Opportunity US $ 5bn with 30% CAGR
Prepared by Debasish Choudhury
Mail : debasishchoudhury.sai@gmail.com
http://in.linkedin.com/in/debasishchoudhury
2. Goals and Objectives
Section-A : Understand the relevant cloud for India
• Understanding the perspectives
• Key movers
Section-B Identifying the existing opportunities (From slide No 32)
• Identifying the most viable Cloud computing opportunity for India
• Customer business value and business opportunities
• Solution and business need (Products)
• External dependencies and strategic partnership eco system
• Target segment and captive opportunities
• Go to market strategy and business roll outs
• Suggestive pricing and revenue ( Grab a secret)
Section-C: Deep insight and correct techno commercial sizing (From slide 46)
• How to compete with established bigies & their weakness
• Key technical features required in product and solutions
4. Cloud Computing - Some terms
Term cloud is used as a metaphor for internet
Concept generally incorporates combinations of the
following
Infrastructure as a service (IaaS)
Platform as a service (PaaS)
Software as a service(SaaS)
Not to be confused with
Grid Computing – a form of distributed computing
Cluster of loosely coupled, networked computers acting in concert to
perform very large tasks
Utility Computing – packaging of computing resources such as
computing power, storage, also a metered services
Autonomic computing – self managed
5. Grid Computing
Share Computers and data
Evolved to harness inexpensive computers in Data center to solve variety of problems
Harness power of loosely coupled computers to solve a technical or mathematical problem
Used in commercial applications for drug discovery, economic forecasting, sesimic analysis and
back-office
Small to big
Can be confined to a corporation
Large public collaboration across many companies and networks
Most grid solutions are built on
Computer Agents
Resource Manager
Scheduler
Compute grids
Batch up jobs
Submit the job to the scheduler, specifiying requirements and SLA(specs) required for running the job
Scheduler matches specs with available resources and schedules the job to be run
Farms could be as large as 10K cpus
Most financial firms has grids like this
Grids lack automation, agility, simplicity and SLA guarantees
6. Utility Computing
More related to cloud computing
Applications, storage, computing power and network
Requires cloud like infrastructure
Pay by the drink model
Similar to electric service at home
Pay for extra resources when needed
To handle expected surge in demand
Unanticipated surges in demand
Better economics
7. Cloud computing – History
• Evolved over a period of time
• Roots traced back to Application Service
Providers in the 1990’s
• Parallels to SaaS
• Evolved from Utility computing and is a
broader concept
8. Cloud computing
Much more broader concept
Encompasses
IIAS, PAAS, SAAS
Dynamic provision of services/resource pools in a co-ordinated fashion
On demand computing – No waiting period
Location of resource is irrelevant
May be relevant from performance(network latency) perspective, data locality
Applications run somewhere on the cloud
Web applications fulfill these for end user
However, for application developers and IT
Allows develop, deploy and run applications that can easily grow capacity(scalability),
work fast(performance), and offer good reliability
Without concern for the nature and location of underlying infrastructure
Activate, retire resources
Dynamically update infrastructure elements without affecting the business
9. Clouds Versus Grids
Clouds and Grids are distinct
Cloud
Full private cluster is provisioned
Individual user can only get a tiny fraction of the total resource pool
No support for cloud federation except through the client interface
Opaque with respect to resources
Grid
Built so that individual users can get most, if not all of the resources
in a single request
Middleware approach takes federation as a first principle
Resources are exposed, often as bare metal
These differences mandate different architectures for each
11. Cloud Anatomy
Application Services(services on demand)
Gmail, GoogleCalender
Payroll, HR, CRM etc
Sugarm CRM, IBM Lotus Live
Platform Services (resources on demand)
Middleware, Intergation, Messaging, Information, connectivity etc
AWS, IBM Virtual images, Boomi, CastIron, Google Appengine
Infrastructure as services(physical assets as services)
IBM Blue house, VMWare, Amazon EC2, Microsoft Azure Platform, Sun Parascale and more
13. What is a Cloud?
Individuals Corporations Non-Commercial Privatet
Cloud Middle Ware
Storage OS Network Service(apps) SLA(monitor),
Provisioning Provisioning Provisioning Provisioning Security, Billing,
Payment
Resources
Services Storage Network OS
14. Why cloud computing
Data centers are notoriously underutilized, often idle
85% of the time
Over provisioning
Insufficient capacity planning and sizing
Improper understanding of scalability requirements etc
including thought leaders from Gartner, Forrester, and
IDC—agree that this new model offers significant
advantages for fast-paced startups, SMBs and
enterprises alike.
Cost effective solutions to key business demands
Move workloads to improve efficiency
15. How do they work?
A conventional legacy view as observed by many
Public clouds are opaque
What applications will work well in a cloud?
Many of the advantages offered by Public Clouds appear useful for “on
premise” IT
Self-service provisioning
Legacy support
Flexible resource allocation
What extensions or modifications are required to support a wider
variety of services and applications?
Data assimilation
Multiplayer gaming
Mobile devices
16. Cloud computing – Characteristics
A conventional legacy view as observed by many
Agility – On demand computing infrastructure
Linearly scalable – challenge
Reliability and fault tolerance
Self healing – Hot backups, etc
SLA driven – Policies on how quickly requests are processed
Multi-tenancy – Several customers share infrastructure, without
compromising privacy and security of each of the customer’s data
Service-oriented – compose applications out of loosely coupled
services. One service failure will not disrupt other services. Expose
these services as API’s
Virtualized – decoupled from underlying hardware. Multiple
applications can run in one computer
Data, Data, Data
Distributing, partitioning, security, and synchronization
18. Public clouds
Open for use by general public
Exist beyond firewall, fully hosted and managed by the
vendor
Individuals, corporations and others
Amazon's Web Services and Google appEngine are
examples
Offers startups and SMB’s quick setup, scalability,
flexibility and automated management. Pay as you go
model helps startups to start small and go big
Security and compliance?
Reliability concerns hinder the adoption of cloud
Amazon S3 services were down for 6 hours
19. Public Clouds (Now)
Large scale infrastructure available on a rental basis
Operating System virtualization (e.g. Xen, kvm) provides CPU isolation
“Roll-your-own” network provisioning provides network isolation
Locally specific storage abstractions
Fully customer self-service
Service Level Agreements (SLAs) are advertized
Requests are accepted and resources granted via web services
Customers access resources remotely via the Internet
Accountability is e-commerce based
Web-based transaction
“Pay-as-you-go” and flat-rate subscription
Customer service, refunds, etc.
20. Private Clouds
Within the boundaries(firewall) of the organization
All advantages of public cloud with one major difference
Reduce operation costs
Has to be managed by the enterprise
Fine grained control over resources
More secure as they are internal to org
Schedule and reshuffle resources based on business demands
Ideal for apps related to tight security and regulatory concerns
Development requires hardware investments and in-house
expertise
Cost could be prohibitive and cost might exceed public clouds
21. Clouds and SOA
SOA Enabled cloud computing to what is today
Physical infrastructure like SOA must be discoverable, manageable
and governable
REST Protocol widely used(Representational State Transfer)
22. Clouds for Developers
• Ability to acquire, deploy, configure and host
environments
• Perform development unit testing,
prototyping and full product testing
23. Open Source Cloud Infrastructure
Simple
Transparent => need to “see” into the cloud
Scalable => complexity often limits scalability
Secure => limits adoptability
Extensible
New application classes and service classes may require new features
Clouds are new => need to extend while retaining useful features
Commodity-based
Must leverage extensive catalog of open source software offerings
New, unstable, and unsupported infrastructure design is a barrier to
uptake, experimentation, and adoption
Easy
To install => system administration time is expensive
To maintain => system administration time is really expensive
24. Open Source Cloud Ecosystem - Tools
• RightScale
– Startup focused on providing client tools as SaaS
hosted in AWS
– Uses the REST interface
• Canonical
– Ubuntu 9.10 (Karmic Koala)
– Includes KVM and Xen Hypervisors
25. Open Source Cloud Anatomy
Extensibility
Simple architecture and open internal APIs
Client-side interface
Amazon’s AWS interface and functionality (familiar and testable)
Networking
Virtual private network per cloud
Must function as an overlay => cannot supplant local networking
Security
Must be compatible with local security policies
Packaging, installation, maintenance
system administration staff is an important constituency for uptake
27. Clouds and Virtualization
Operating System virtualization (Xen, KVM, VMWare, HyperV)
is only apparent for IaaS
AppEngine = BigTable
Hypervisors virtualize CPU, Memory, and local device access as
a single virtual machine (VM)
IaaS Cloud allocation is
Set of VMs
Set of storage resources
Private network
Allocation is atomic
SLA
Monitoring
28. Cloud Performance
Extensive performance study using HPC applications and
benchmarks
Two questions:
Performance impact of virtualization
Performance impact of cloud infrastructure
Observations:
Random access disk is slower with Xen
CPU bound can be faster with Xen -> depends on configuration
Kernel version is far more important
No statistically detectable overhead
AWS small appears to throttle network bandwidth and
(maybe) disk bandwidth -> $0.10 / CPU hour
30. Cloud computing open issues
Governance
Security, Privacy and control
SLA guarantees
Ownership and control
Compliance and auditing
Sarbanes and Oxley Act
Reliability
Good servive provider with 99.999% availability
Cloud independence – Vendor lockin?
Cloud provider goes out of business
Data Security
Cloud lockin and Loss of control
Plan for moving data along with Cloud provider
Cost?
Simplicity?
Tools
Controls on sensitive data?
Out of business
Big and small
Scalability and cost outweigh reliability for small
businesses
Big businesses may have a problem
31. Battle in the cloud
• Amazon Web Services
• Google App Engine
– Free upto 500 MB,
• Free for small scale applications?
• Universities?
– Pay when you scale
• GoGrid
• .. Some more Hosting companies
• Where is HP, IBM, Oracle(+sun) and Dell?
33. Re asserting the objectives
• Identifying the most viable Cloud computing opportunity for
India
• Customer business value and business opportunities
• Solution and business need (Products)
• External dependencies and strategic partnership eco system
• Target segment and captive opportunities
• Go to market strategy and business roll outs
• Suggestive pricing and revenue ( Grab a secret)
34. Don’t Ignore : Microsoft and Amazon face challenges
Globus/Nimbus
Client-side cloud-computing interface to Globus-enabled TeraPort cluster at U of C
Based on GT4 and the Globus Virtual Workspace Service
Shares upsides and downsides of Globus-based grid technologies
Enomalism (now called ECP)
Start-up company distributing open source
REST APIs
Reservoir
European open cloud project
Many layers of cloud services and tools
Ambitious and wide-reaching but not yet accessible as an implementation
Eucalyptus
Cloud Computing on Clusters
Amazon Web Services compatible
Supports kvm and Xen
Open Nebulous
Joyent
Based on Java Script and Git
35. Identifying the most viable Cloud computing opportunity for
India
• What is the hidden IT pilferages in India
– The hardware market enjoys healthy sell. PC,LAN, Routers, servers etc
– There is an estimate of US $ 4 bn OS piracy
– Un successful attempt in open source having a grip on US $ 12BN
– Other applications pirated, infringed, locally developed US $ 16BN
– Beyond budget scenario killing an US $ 20 Bn market of ERP,CRM,SCM,MAIL,
DB etc in SME, Govt, Education etc
• What differentiates & brings a compelling Cloud on pay per
use or flexible usage
– Remote OS and desktop applications
– Customized ERP & CRM for SME and Retail chains from cloud with flavour of
private cloud
– Clustered virtualised DB services without load of licensing and on hosted
model
– Education content digitised and on affordable scale
– Foot on street with resellers on commission basis
36. Identifying the most viable Cloud computing opportunity for
India
an example ( offering pitch of a major SI to a major Government entity)
I. Infrastructure as a service for :
•Roll out of new applications whose usage is un
predictable
•Development and testing platforms
•Infrastructure that is coming up for refresh
II. DR as a service for mission –Critical
applications
•Application on SAAS mode
•Document Management system
•Online CMS
•Design and build private cloud
37. Customer business value and business opportunities
• OS & Office applications
– The OS license per user when offered from cloud reduces the overhead and contributes
higher sale at lower prices
– Enhanced office applications lead customization and continued revenue
• DB & Web servers
– DB designed from cloud will reduce the cost up to 80% to user and increase the
marketability by 1200%
– Back up and restoration can be very cheap and profitable
• ERP, CRM & BPM
– The license cost is nominal but customization and infrastructure backed by Cloud will
reduce the cost to 75% !!
– Open up the health exchange services
• Multi media content
– A huge hit for education
• Personalised services
– Services like web talk will move to new heights
– Social networking to new revenue
– New developed and open market place for innovative software developments !!
38. Solution and business need
• Target retail
– A huge base of retail under price pressure and not capable to avoid the hardware cost.
But compromise on OS & Application
– Package and hybrid for Private cloud with :
• CRM
• ERP
• BI & DWH
• BPM
• SCM
• Target Education ( Primary and higher)
– Packaged content of education multi media for regions and states and launched through
partners
• Target Govt
– A comprehensive partnered OS, MAIL, DB, WEB and ERP
• Target New Tech SME & big industries
– Up coming segments of Pharmacy, Chemical , power & auto
• Target home and domestic
– House hold PC is a sleeping dragon over god mine !!
39. External dependencies and ecosystem
• ISV and Applications
– Segment basis applications like Mail, finance & accounting, CRM, ERP need to be looped.
– Regional and clustered opportunity need to be tweaked and packed in a clod
• Resellers
– VAR and IT sellers to map the lead to closures
• SI and tech partners
– Customize to build private clouds and offer dedicated help desks
• Infrastructure players
– Connectivity and data centers
40. Target segment and captive opportunities
• Retail
– The opportunity lies with 200 plus organised retailes
• Education ( Primary and higher)
– Pan India primary education
– Engineering colleges
• Govt
– Indian Railways and state e-gov
• New Tech SME & big industries
– Chemical and drug + hospitals
– Automotive
– Power
• home and domestic
– Education
– Entertainment
41. GO To Market (GTM) & BUSINESS ROLL OUT
• Capturing the business need of high volume high margin segments
– Package the offering
– Build the re seller
– Target retail and education on phase-1 and Govt on Phase-2 and domestic on phase-3
• Design the offerings
– Create various flavours in collaboration with applications
• Build the cloud in offering mode
– Deploy the applications
– Build the fulfilment models
– Prepare the menu card
– Nurture the infrastructure provider
A time line of 3 to 6 months
42. Suggestive pricing and revenue
Three main purposes
Software as a service (SaaS)
Enterprise resource management through
internet
Platform as a service (PaaS)
Developing software on a shared platform on the
cloud
Infrastructure as a service (IaaS)
Getting service from a full computer
infrastructure through the internet
Storage & databases
43. Suggestive pricing and revenue
• Collection of servers owned by a cloud
provider
• Cloud automatically utilizes the right no.
of servers, adding or releasing servers, as
load fluctuates
• Data Centers
44. Suggestive pricing and revenue- A reference
Wuxi China Cloud Computing Center at
IBM establishes the first Cloud Computing Center for software companies in China
the new Wuxi Tai Hu New Town Science and Education Industrial Park in Wuxi, China
• Offers emerging Chinese software companies the ability to tap into a virtual computing
environment to support their development activities.
• A shared facility, providing each company in the Wuxi Software Park with its own virtual data
center
• Enabled by IBM technology and service
• Managed with IBM Tivoli systems management products
• Hardware – IBM System x, System p and BladeCenter
• Benefits
– Up to 2Fast deployment of Rational software development environments
– 00K software developers, 100 companies
– Cost efficient shared infrastructure
"The China Cloud Computing Center represents a milestone in service-oriented
computing," said T. W. Liu, the chairman and CEO of iSoftStone. "It will allow
companies in the Wuxi Software Park to leapfrog to the newest computing
models and will provide an efficient IT platform for software development."
45. Suggestive pricing and revenue
• Converging Web-centric clouds and enterprise data centers
• Establishing Pan India but converged with worldwide cloud
computing centers to drive adoption
• Need to lead the way in bringing cloud computing benefits
to enterprises
47. Challenge for cloud system proposed by : Microsoft, Amazon,
Google & Sales force .
Enterprise Cloud : A complete out of reach of these major players
• Enterprise cloud need
– Specific business process and customizable Private clouds are not the feature in the
offerings of the above players.
• Security and reliability
– The business specific clustered security with partition of multi tenancy is the need.
– Multi level access is absent.
• Enhanced values and pricing
– Specific value added enterprise IT system is absent.
• Application developments
– Enterprise specific SDLC process is absent.
48. Challenge for cloud system proposed by : Microsoft, Amazon,
Google & Sales force .
Retail Cloud : A complete out of reach of these major players
• Retail cloud need
– Segment specific customized application is absent
• Business enhancement features
– Critical business need of SCM and ERP missing
– Other applications are too completed to access from cloud
• Operational need and compliances
– Various modules for small business missing
• Sharing and collaborating
– Various platforms to collaborate is absent
– Hitless merger from PC to business with applications is a total miss match
49. Challenge for cloud system proposed by : EMC, CISCO, ORACLE etc
IAAS /PAAS Cloud : Miles to go to reach the business
• On demand setup
– Sizing and dedicated feature based services absent
• Business centric maintenance
– Availability and SLA management to serve end customers is poorly managed
• Reliable multi tenancy
– Load and demand mapping without cost implication is totally ignored
• Business specific fabric computing
– High demand and on demand systems design with unique customization is long way to
go.
– Application and delivery models with complying to PCMM and ITIL standards poorly
mapped.