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Building a cloud market place the right way

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Many cloud providers, both public and private, increasingly face the challenge of offering a growing number of products through their cloud. ...

Many cloud providers, both public and private, increasingly face the challenge of offering a growing number of products through their cloud.

It's clear that the DIY model doesn't scale, and often times takes years to accomplish. This is a clear case where a markeplace approach would be a much better fit.

However, there are a number of technical and business challenges involved with building a cloud marketplace for IT products. For example, in order for a cloud marketplace to offer any value, it needs to be able to offer hundreds or potentially even thousands of products, yet at the same time, there's the demand of being able to bring a large number of users into the marketplace - while both of these components need to happen virtually simultaneously - which is no easy feat. In this session, we'll go through several real-life experiences in building cloud marketplaces, and demonstrate how this challenges can be met easily.

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  • September 27, 2012 6:52 AM PDTGoogle 675,000 applications. Apple announced earlier this month that its store had 700,000 applications Google also announced yesterday that 25 billion apps have been downloaded -- a figure Apple reached six months agohttp://news.cnet.com/8301-1035_3-57521252-94/can-apples-app-store-maintain-its-lead-over-google-play/http://news.cnet.com/8301-1035_3-57551888-94/apple-approves-1-millionth-ios-app-tracker-says/App Store has over 736,000 applications available to users. Out of those apps, a bit over 336,000 are paid
  • Three main approachesPaaS CentricVM (IaaS) CentricAutomation Centric
  • Integrated 1-Click deployment into its service, allowing users to quickly purchase and launch pre-configured software and pay by the hour or monthly. The charges are collated and added to a customer’s existing AWS bill.Instead of wading through word-of-mouth recommendations and then trying to set up the new solution, Amazon takes away the hassle and does it all for its users by providing peer reviews and charging usage fees to their existing AWS account.http://thenextweb.com/insider/2012/04/19/amazon-launches-aws-marketplace-provides-third-party-tools-and-services-for-customers-in-the-cloud/---------------- Limitations --------------The 1-Click deployment of software stack offered on the AWS Marketplace pretty much runs everything on a single EC2 instance. By default, the database and other persistence dependent services are confined to the ephemeral storage or instance storage of the EC2 instance. This is a very risky proposition as the data will be lost completely in the case of an instance failure. I wouldn’t be comfortable even running a non mission-critical application like a WordPress blog on EC2 without attaching an EBS volume. Launching a LAMP or Tomcat stack with 1-Click is great for a small proof-of-concept or a demo but no one would attempt this for a production application. Moving to the Cloud is not just about forklifting an app from on-premise server or a hoster to a VM. It is definitely much more than that! AWS Marketplace squarely focuses just on compute by launching an EC2 instance with pre-configured stack without considering any of the essential building block services like storage, networking and databases.Load Balancer limitations:For example, the Amazon EC2 instances launched through the Marketplace cannot be added to an Elastic Loadbalancer. I attempted to launch 2 instances of the free Tomcat 6.0/MySQL Stack provided by OpenLogic and adding them to an Elastic Loadbalancer. ELB threw an error and refused to add the instances. This is a huge limitation for any real world web application that intends to run on a Tomcat instance launched via the Marketplace. I wouldn’t be comfortable running my web application in just one instance without any possibility of scaling out in the future.you cannot attach the EBS root volume of an instance launched via the Marketplace as a non-root device to another instance. This is a very common scenario for EC2 customers. When an EBS backed EC2 instance crashes, customers typically try to attach the EBS root volume of the faulty EC2 instance to a healthy instance to recover the datahttp://cloudstory.in/2012/04/aws-marketplace-an-oversimplification-of-the-cloud/
  • Integrated 1-Click deployment into its service, allowing users to quickly purchase and launch pre-configured software and pay by the hour or monthly. The charges are collated and added to a customer’s existing AWS bill.Instead of wading through word-of-mouth recommendations and then trying to set up the new solution, Amazon takes away the hassle and does it all for its users by providing peer reviews and charging usage fees to their existing AWS account.http://thenextweb.com/insider/2012/04/19/amazon-launches-aws-marketplace-provides-third-party-tools-and-services-for-customers-in-the-cloud/---------------- Limitations --------------The 1-Click deployment of software stack offered on the AWS Marketplace pretty much runs everything on a single EC2 instance. By default, the database and other persistence dependent services are confined to the ephemeral storage or instance storage of the EC2 instance. This is a very risky proposition as the data will be lost completely in the case of an instance failure. I wouldn’t be comfortable even running a non mission-critical application like a WordPress blog on EC2 without attaching an EBS volume. Launching a LAMP or Tomcat stack with 1-Click is great for a small proof-of-concept or a demo but no one would attempt this for a production application. Moving to the Cloud is not just about forklifting an app from on-premise server or a hoster to a VM. It is definitely much more than that! AWS Marketplace squarely focuses just on compute by launching an EC2 instance with pre-configured stack without considering any of the essential building block services like storage, networking and databases.Load Balancer limitations:For example, the Amazon EC2 instances launched through the Marketplace cannot be added to an Elastic Loadbalancer. I attempted to launch 2 instances of the free Tomcat 6.0/MySQL Stack provided by OpenLogic and adding them to an Elastic Loadbalancer. ELB threw an error and refused to add the instances. This is a huge limitation for any real world web application that intends to run on a Tomcat instance launched via the Marketplace. I wouldn’t be comfortable running my web application in just one instance without any possibility of scaling out in the future.you cannot attach the EBS root volume of an instance launched via the Marketplace as a non-root device to another instance. This is a very common scenario for EC2 customers. When an EBS backed EC2 instance crashes, customers typically try to attach the EBS root volume of the faulty EC2 instance to a healthy instance to recover the datahttp://cloudstory.in/2012/04/aws-marketplace-an-oversimplification-of-the-cloud/
  • 2012: Heroku’s add-on marketplace launched three years ago with 12 add-ons. Since that time, 85 service providers have launched add-ons, attracting more than 4 million installs from developers. Companies offering add-ons include Amazon RDS, Cloudant, Loggly, New Relic, SendGrid, Xeround, and Zencoder.Read more at http://venturebeat.com/2012/12/04/heroku-add-on-marketplace/#ewfcm3ceJ4Xx0J1z.99 Self-service interface – Providers can create and manage their add-ons, features, benefits, and plans, allowing them greater flexibility for testing and marketing products. Services can be deployed, configured, and integrated into apps with one-click.• Marketing best practices – New listing pages provide customization for each add-on including best practices on marketing and customer engagement. Templates are included for creating new documentation, embedding documentation into sales pages, easy plan comparisons, personalized branding and visibility into analytics and marketplace performance so that no dedicated team of marketing specialists is required.• Complete billing services – The program takes care of all aspects of the billing process for users including failed payments, declined cards, fraud, and payment and bank transaction fees. This protects providers from financial risks associated with integrating with payment gateways, fraud, and failed, declined, or expired credit cards.• Dedicated support –Heroku’s support team will provide dedicated developer support, saving providers time by handling integration issues for them. A dedicated sales team is also available to help sell the Heroku platform along with providers’ integrated services.Heroku customers include Walmart, Macy’s, Activision Blizzard, and GroupMe.Read more at http://venturebeat.com/2012/12/04/heroku-add-on-marketplace/#ewfcm3ceJ4Xx0J1z.99 Read more at http://venturebeat.com/2012/12/04/heroku-add-on-marketplace/#ewfcm3ceJ4Xx0J1z.99 2012: n November 2010, Heroku was king of the platform-as-a-service startups, hosting 100,000 applications all written in Ruby. Today, Heroku is still arguably the PaaS king, but it’s operating on a slightly larger stage. It’s now part of the Salesforce.com family and, according to former Heroku CEO and current Salesforce.com VP of Platforms Byron Sebastian, is hosting more than 1.5 million applications — an increase of approximately 15x in less than 18 months.Twelve to eighteen months ago, all our traction was with individual developers,” Sebastian said (it added 34,000 in 24 hours after unveiling a Facebook partnership in September). Now, however, enterprise developers using Force.com look at Heroku for new types of applications not well-suited for that platform. Java support, as well as a general trust in the Salesforce.com brand, helps make that decision easier.“at least 50 percent of the apps are in languages that are not Ruby,” Sebastian told me during a recent phone call. Java, Python and Node.js, in particular, are really catching on, he said.2010: According to Heroku, in a survey, nearly 30 percent of its customers said they are building mobile apps, and nearly 60 percent indicated a high interest in developing mobile offerings. Heroku currently has over 83,000 apps (mobile and web) using its platform. Some of the more popular apps are doing 1,000 to 3,000 http requests per minute. Many are offering mobile-friendly HTML, but many are also using RESTful interfaces.http://gigaom.com/cloud/heroku-mobile/Force.comSalesforceAppExchange marketplace 77,300$300 security review fee, followed by $150 each subsequent year.
  • 2012: Heroku’s add-on marketplace launched three years ago with 12 add-ons. Since that time, 85 service providers have launched add-ons, attracting more than 4 million installs from developers. Companies offering add-ons include Amazon RDS, Cloudant, Loggly, New Relic, SendGrid, Xeround, and Zencoder.Read more at http://venturebeat.com/2012/12/04/heroku-add-on-marketplace/#ewfcm3ceJ4Xx0J1z.99 Self-service interface – Providers can create and manage their add-ons, features, benefits, and plans, allowing them greater flexibility for testing and marketing products. Services can be deployed, configured, and integrated into apps with one-click.• Marketing best practices – New listing pages provide customization for each add-on including best practices on marketing and customer engagement. Templates are included for creating new documentation, embedding documentation into sales pages, easy plan comparisons, personalized branding and visibility into analytics and marketplace performance so that no dedicated team of marketing specialists is required.• Complete billing services – The program takes care of all aspects of the billing process for users including failed payments, declined cards, fraud, and payment and bank transaction fees. This protects providers from financial risks associated with integrating with payment gateways, fraud, and failed, declined, or expired credit cards.• Dedicated support –Heroku’s support team will provide dedicated developer support, saving providers time by handling integration issues for them. A dedicated sales team is also available to help sell the Heroku platform along with providers’ integrated services.Heroku customers include Walmart, Macy’s, Activision Blizzard, and GroupMe.Read more at http://venturebeat.com/2012/12/04/heroku-add-on-marketplace/#ewfcm3ceJ4Xx0J1z.99 Read more at http://venturebeat.com/2012/12/04/heroku-add-on-marketplace/#ewfcm3ceJ4Xx0J1z.99 2012: n November 2010, Heroku was king of the platform-as-a-service startups, hosting 100,000 applications all written in Ruby. Today, Heroku is still arguably the PaaS king, but it’s operating on a slightly larger stage. It’s now part of the Salesforce.com family and, according to former Heroku CEO and current Salesforce.com VP of Platforms Byron Sebastian, is hosting more than 1.5 million applications — an increase of approximately 15x in less than 18 months.Twelve to eighteen months ago, all our traction was with individual developers,” Sebastian said (it added 34,000 in 24 hours after unveiling a Facebook partnership in September). Now, however, enterprise developers using Force.com look at Heroku for new types of applications not well-suited for that platform. Java support, as well as a general trust in the Salesforce.com brand, helps make that decision easier.“at least 50 percent of the apps are in languages that are not Ruby,” Sebastian told me during a recent phone call. Java, Python and Node.js, in particular, are really catching on, he said.2010: According to Heroku, in a survey, nearly 30 percent of its customers said they are building mobile apps, and nearly 60 percent indicated a high interest in developing mobile offerings. Heroku currently has over 83,000 apps (mobile and web) using its platform. Some of the more popular apps are doing 1,000 to 3,000 http requests per minute. Many are offering mobile-friendly HTML, but many are also using RESTful interfaces.http://gigaom.com/cloud/heroku-mobile/Force.comSalesforceAppExchange marketplace 77,300$300 security review fee, followed by $150 each subsequent year.
  • RightScale has figured out that across its user base, 87 per cent of the compute capacity managed by RightScale is coming from customers that span more than one cloud provider and more than one cloud typeCloudStack from Citrix Systems, Eucalyptus from Eucalyptus Systems, and OpenStack, the open source alternative championed by NASA and Rackspace Hosting.On the traditional public cloud front, where companies have their own proprietary infrastructure cloud tools and controllers, RightScale supports Amazon Web Services, Datapipe, IDC Frontier (a subsidiary of Yahoo! Japan), Logicworks, Rackspace Cloud, and SoftLayer.the free edition of the tool is now used by over 45,000 system administrators,over the past two years, the amount of revenue per customer that the company has been able to wring out of paying customers has grown by a factor of 2.5.Moreover, the number of processor cores under management across all RightScale users has doubled over the past year, and the number of virtual server instances launched by the RightScale service is now north of 3.84 million. The time it has taken to add each successive million virtual servers under management has been cut in half, which is another way of saying that the amount of deployed infrastructure is riding a nice hockey stick curve. (The company says nothing about how many virtual servers have been retired, of course.)http://www.theregister.co.uk/2012/03/27/rightscale_hybrid_clouds/
  • RightScale has figured out that across its user base, 87 per cent of the compute capacity managed by RightScale is coming from customers that span more than one cloud provider and more than one cloud typeCloudStack from Citrix Systems, Eucalyptus from Eucalyptus Systems, and OpenStack, the open source alternative championed by NASA and Rackspace Hosting.On the traditional public cloud front, where companies have their own proprietary infrastructure cloud tools and controllers, RightScale supports Amazon Web Services, Datapipe, IDC Frontier (a subsidiary of Yahoo! Japan), Logicworks, Rackspace Cloud, and SoftLayer.the free edition of the tool is now used by over 45,000 system administrators,over the past two years, the amount of revenue per customer that the company has been able to wring out of paying customers has grown by a factor of 2.5.Moreover, the number of processor cores under management across all RightScale users has doubled over the past year, and the number of virtual server instances launched by the RightScale service is now north of 3.84 million. The time it has taken to add each successive million virtual servers under management has been cut in half, which is another way of saying that the amount of deployed infrastructure is riding a nice hockey stick curve. (The company says nothing about how many virtual servers have been retired, of course.)http://www.theregister.co.uk/2012/03/27/rightscale_hybrid_clouds/
  • Any app - All clouds

Building a cloud market place the right way Building a cloud market place the right way Presentation Transcript

  • Building a Cloud Marketplace The Easy Way @natishalom natishalom.typepad.com 1
  • The Marketplace Promise 2
  • Following The Mobile App Store 3
  • Overview of Current Deployment Centric PaaS Centric CloudMarketplaces IaaS (VM) Centric 4
  • Amazon IaaS (VM) CentricMarketplace 5
  • • Main Features Amazon – One-Click Deployment – Search IaaS (VM) – Customer Rating Centric – BillingMarketplace • Limitations – Single VM – Load Balancer – EBS 6
  • Strong Conflict of Interest• Provides Competing IaaS Services – RDS – SimpleDB – LoadBalancer – Memcache• Unfair Advantage 7
  • SalesForce –PaaS CentricMarketplace 8
  • • Main FeaturesSalesForce – – Self-Service – BillingPaaS Centric – SupportMarketplace • Statistics – 12 –> 85 providers – 4M Installs – 15x growth in 18 months – 34K apps in 24hr after Facebook launch 9
  • Deployment- CentricMarketplace 10
  • • Main Features – Multi CloudDeployment- – Billing – Management Centric – Clustered AppsMarketplace • Statistics – 87% multi cloud customers – 45,000 users – X2 #Cores Year – 3.8M instances launched 11
  • OtherMarketplace Examples 12
  • Main Lessons• Build it and they will come – Classic chicken & egg problem – The marketplace comes after the market has been established!• Me too? – Growing fragmentation makes it harder for app providers to join (See: Microsoft Surface) 13
  • Doing it Right 14
  • • Wait till you establish yourDoing it market (e.g. Apple, Amazon, SalesForce)Right? • Challenge – Most of the players don’t have the time nor the chance to follow this model 15
  • • Breaking the chicken & egg challengeDoing it Right – Bootstrap – DIY – Get the providers first – Get the consumers through the providers 16
  • • No one is going to do theBootstrap job for you – Design for on-boarding on a massive scale – Focus first on the popular providers - the easy target is open source providers – Use a generic approach that will enable you to on- board many apps easily 17
  • Moving Apps • No code change • Plug-in to the current way of At Massive running apps • Add cloud properties from the Scale – The outside •Cloudify Way Use the baby steps approach18 18
  • Leverage Existing Automation FrameworksConfiguration Centric APP Centric (PaaS) 19
  • How it works... 1 Upload your recipe. 2 Cloudify creates VMs & installs agents 3 Agents install and manage your app 4 Cloudify automates the scaling 20
  • Get 100’s of recipes out of the box Leverage Puppet Templates 21
  • • Create enough incentiveGet the App for the provider to invest Providers in your marketplace First – Free access – Reduce the investment to a minimum – Make it open: make the effort worthwhile beyond your own marketplace 22
  • Make it Open • Recipes work on any cloud including private cloudThe Cloudify • Same investment to get Way the app into and out of the marketplace 23
  • Get the • Leverage the app provider’s network toConsumers bring the consumers in • Example – Embedded YouTube 24
  • Get the • The Cloudify WidgetConsumers -The Cloudify Way 25
  • Demo Time... 26
  • Thank You!GET IT TODAY, IT’S OPEN SOURCE & FREE: WWW.CLOUDIFYSOURCE.ORG GITHUB.COM/CLOUDIFY/CLOUDIFY-RECIPES 27