Time to Bet on the Cloud?
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Time to Bet on the Cloud?

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From the Gaming Scalability event, June 2009 in London (http://gamingscalability.org). ...

From the Gaming Scalability event, June 2009 in London (http://gamingscalability.org).

What's the state of play with Cloud Services in 2009? Which businesses are on the cloud and why? When should you look at cloud services and what's the payoff?

Alexis Richardson is CEO and co-founder of Rabbit Technologies Ltd., the commercial support company behind RabbitMQ, a leading implementation of the AMQP open business messaging standard. Alexis is also co-chair of OCCI, the new initiative from OGF to develop an Open Cloud Computing Interface. Alexis Richardson is also a co-founder of CohesiveFT. Recently CohesiveFT spun off its investment in Rabbit Technologies Limited which is now operating as a separate company. Previously Alexis was CEO and co-founder of MetaLogic, a middleware company specializing in high throughput caching and transaction management products. As a past consultant for Fortune 1000 corporations, he has worked on various high performance front-office trading solutions. Before that he worked in proprietary trading of fixed-income derivatives at Goldman Sachs, after researching and teaching mathematical logic and computer science at Oxford University.

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Time to Bet on the Cloud? Time to Bet on the Cloud? Presentation Transcript

  • Time to Bet on the Cloud? Alexis Richardson CEO Rabbit Technologies Ltd July 9 2009 alexis@rabbitmq.com 1 Thursday, 9 July 2009
  • RabbitMQThank you! Im in yr serverz, queueing yr messagez Photo credit: http://flickr.com/photos/53366513@N00/67046506/ Thursday, 9 July 2009
  • CohesiveFTHybrid solutions allow for cautious migration 20 Cloud Computing Startups You Should Know Thursday, 9 July 2009
  • Scale is not my problem Thursday, 9 July 2009
  • Scale is not my problem Animoto: 50 EC2 slices to 3,500 over 3 days Thursday, 9 July 2009
  • What CIOs say The future is “cloudy” 58% of CIOs say cloud computing will cause a radical shift in IT 47% say they're already using it or actively researching it. Source: CIO Research cited in “Cloud computing: IT execs see both promise & security issues, By LAURIANNE MCLAUGHLIN, IDG October 22, 2008 Thursday, 9 July 2009
  • http://www.flickr.com/photos/psd Thursday, 9 July 2009
  • Joyent Mosso Google AppEngine FlexiScale Slice Host Engine Amazon Yard EC2 http://www.flickr.com/photos/psd Thursday, 9 July 2009
  • PUBLIC Cloud confidential 7 Thursday, 9 July 2009
  • Magic? Cloud computing is IT as a service Source: The 451 Group Thursday, 9 July 2009
  • Magic? Cloud computing is IT as a service Security Scalability Availability Performance Cost-effectiveness Source: The 451 Group Thursday, 9 July 2009
  • Data (re)liability Thursday, 9 July 2009
  • Key points The future is “cloudy” Amazon starts at 10 cents / CPU-hour - or as little as 3 cents if you block book EngineYard “Solo” - Rails on EC2 - starts at 18 JPMorgan pay 50 according to 451 Group Merrill Lynch pay less.. IBM - I’ve heard range of 13-25 cents But it’s about choice - not just price. Thursday, 9 July 2009
  • Cloud ... is a business model Thursday, 9 July 2009
  • Cloud ... is a business model Thursday, 9 July 2009
  • Fundamental Theorem of Cloud: If you can reliably beat cloud providers on price, availability, and scalability... Then you are a cloud provider. Thursday, 9 July 2009
  • Fundamental Theorem of Cloud: If you can reliably beat cloud providers on price, availability, and scalability... Then you are a cloud provider. Thursday, 9 July 2009
  • Thursday, 9 July 2009
  • Cheap is good Market conditions place additional emphasis on cost-savings In uncertain economic times, companies look for immediate cost-cutting measures. Cloud computing can reduce IT costs without negatively affecting ongoing operations. Capital expenditure via “hardware refresh” vs. operating expense. Thursday, 9 July 2009
  • Other people’s money Software computers are a heck of a lot cheaper to assemble, deploy, manage than metal Someone else spending their capital is way better than me spending my capital I’ll spend my money on an IT staff that helps me leverage these two axioms Thursday, 9 July 2009
  • Elasticity = Freedom Thursday, 9 July 2009
  • Thursday, 9 July 2009
  • Bet on: CHOICE Thursday, 9 July 2009
  • Thursday, 9 July 2009
  • Thursday, 9 July 2009
  • How big can this be? 2008: first real “year of cloud” MS Azure, VMware, GoGrid, Mosso, and and and .... (But ISPs still don’t “get it”) More cloud services than users? Much much more to come... confidential 24 Thursday, 9 July 2009
  • Thursday, 9 July 2009
  • Use Case: Ocean Observatories “Global Twitter for Data” DMAC Thursday, 9 July 2009
  • Use Case: Ocean Observatories “Global Twitter for Data” Service.DomainName Region Virtual IP Cloud IPs DMAC Thursday, 9 July 2009
  • Use Case: Ocean Observatories “Global Twitter for Data” Service.DomainName Region Virtual IP Cloud IPs DMAC Thursday, 9 July 2009
  • Use Case: Ocean Observatories “Global Twitter for Data” Service.DomainName Region Virtual IP Cloud IPs DMAC Thursday, 9 July 2009
  • It’s complicated Thursday, 9 July 2009
  • The ‘fool proof’ enterprise The future is “cloudy” Disruption is bad It must be failure proof Plans are not subject to change You can take opportunity without risk Business is a source of revenue, IT is a source of risk And IT must justify itself with predictions Sales people are there to help you (eat) Machine huggers... Thursday, 9 July 2009
  • Business expects Thursday, 9 July 2009
  • Reasonable concerns The future is “cloudy” Will my apps, tools, and people still work in the Will I get fired for this? exact same way? Is it cheap to change? Can I control my infra? Is it stable? Migrating sunk resources is hard. Can I Does the cloud provider move my whole data have business model that I center to the cloud? can rely on? What is their cost of capital? Thursday, 9 July 2009
  • Clouds don’t care Thursday, 9 July 2009
  • Amazon’s CTO on Economic Drivers • Increasing Uncertainty • Growing Abundance • Intensifying Competition • Growing Power of Customers • Limited access to capital From Push to Pull – Emerging Model for Mobilizing Resources – John Hagel & John Seely Brown - 2005 Thursday, 9 July 2009
  • Amazon Use Cases Media Distribution Scalable Web Sites Backup and Recovery Financial Applications Large-scale Simulation Elastic Computing Thursday, 9 July 2009
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  • Thursday, 9 July 2009
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  • Founded Jan 2008 20+ Million Users 4 of top 10 games on Facebook 20 billion customer minutes per month (55% of YouTube) 100% AWS Thursday, 9 July 2009
  • Founded Jan 2008 20+ Million Users 4 of top 10 games on Facebook 20 billion customer minutes per month (55% of YouTube) 100% AWS S3 (games 1-2MB ea) Thursday, 9 July 2009
  • Founded Jan 2008 20+ Million Users 4 of top 10 games on Facebook 20 billion customer minutes per month (55% of YouTube) 100% AWS EC2 Load Balancing M1.S M1.S M1.S M1.S Mid-Tier M1.L M1.L S3 (games 1-2MB ea) Database M1.XL EBS EBS EBS EBS Thursday, 9 July 2009
  • Thursday, 9 July 2009
  • Thursday, 9 July 2009
  • Produce Encode Distribute Archive Thursday, 9 July 2009
  • Video Citizen Journalism Thursday, 9 July 2009
  • 4 Weeks! Video Citizen Journalism Thursday, 9 July 2009
  • It’s BUSINESS time The future is “cloudy” MANY Clouds - not just Amazon any more They are a commercial SERVICE In production - NO WAIT needed SIMPLE resource allocation that can be audited STOP paying if you don’t like your IT provider Extend your infra in a CONTROLLED way You are not alone Thursday, 9 July 2009
  • Would you bet on the cloud Would you bet on your own infrastructure to scale Can you save money - or defer expenditure to when it is needed Will you get fired Thursday, 9 July 2009
  • Manage expectations 45 Thursday, 9 July 2009
  • Experiment ... is a business model Thursday, 9 July 2009
  • Offload some systems Some companies begin with the “coffee ordering” system Thursday, 9 July 2009
  • Make money ... is a business model Thursday, 9 July 2009
  • Play the peak game Scale confidently Leverage the cloud for peak demand or seasonal spikes. Thursday, 9 July 2009
  • Play the peak game Scale confidently Leverage the cloud for peak demand or seasonal spikes. Thursday, 9 July 2009
  • Control ... is a business model Thursday, 9 July 2009
  • Check your assumptions Analysts cite security and control top cloud-computing concern “Cloud computing has unique attributes that require risk assessment in areas such as data integrity, recovery, and privacy, and an evaluation of legal issues in areas such as e-discovery, regulatory compliance, and auditing,” 1 Customers currently lack control of security in the cloud. 1. Source: Assessing the Risks of Cloud Computing, Gartner, June 2008. 2. Source: IDC Enterprise Panel, August 2008. 3. InformationWeek Analytics Cloud Computing Survey, September, 2008 Thursday, 9 July 2009
  • Confidence ... is a business model Thursday, 9 July 2009
  • Use guerilla tactics Hybrid solutions allow for cautious migration Thursday, 9 July 2009
  • Would you bet on the cloud What about data What about latency What about regulations Thursday, 9 July 2009
  • Time to make a stand? Thursday, 9 July 2009
  • All of this has happened before and it will all happen again http://en.wikipedia.org/wiki/Eternal_return Thursday, 9 July 2009
  • Attack of the clones? CLOUD-OS LOCK IN 57 (CC) Giara @flickr.com Thursday, 9 July 2009
  • Defend your data Thursday, 9 July 2009
  • Open Services? ... is a business model Open Messaging Thursday, 9 July 2009
  • Open Cloud = Your Cloud Thursday, 9 July 2009
  • Would you bet on this? Number of EC2 Instances Steady state of ~40 instances 8 8 8 8 8 8 8 8 8 2 00 2 00 2 00 2 00 2 00 2 00 2 00 2 00 2 00 2/ 3/ 4/ 5/ 6/ 7/ 8/ 9/ 0/ 4/1 4/1 4/1 4/1 4/1 4/1 4/1 4/1 4/2 Thursday, 9 July 2009
  • Would you bet on this? Number of EC2 Instances Launch of Facebook application Steady state of ~40 instances 8 8 8 8 8 8 8 8 8 2 00 2 00 2 00 2 00 2 00 2 00 2 00 2 00 2 00 2/ 3/ 4/ 5/ 6/ 7/ 8/ 9/ 0/ 4/1 4/1 4/1 4/1 4/1 4/1 4/1 4/1 4/2 Thursday, 9 July 2009
  • Would you bet on this? Amazon EC2 easily scaled up and down to handle additional traffic Peak of 3500 instances Number of EC2 Instances Launch of Facebook application Steady state of ~40 instances 8 8 8 8 8 8 8 8 8 2 00 2 00 2 00 2 00 2 00 2 00 2 00 2 00 2 00 2/ 3/ 4/ 5/ 6/ 7/ 8/ 9/ 0/ 4/1 4/1 4/1 4/1 4/1 4/1 4/1 4/1 4/2 Thursday, 9 July 2009
  • Would you bet on this? Number of EC2 Instances 8 8 8 8 8 8 8 8 8 2 00 2 00 2 00 2 00 2 00 2 00 2 00 2 00 2 00 2/ 3/ 4/ 5/ 6/ 7/ 8/ 9/ 0/ 4/1 4/1 4/1 4/1 4/1 4/1 4/1 4/1 4/2 Thursday, 9 July 2009
  • Thursday, 9 July 2009