Cloud Computing in the Enterprise

February 12, 2008. Call in at 12:55 p.m. Eastern time Teleconference Is Cloud Computing Viable For Enterprise IT? James Staten, Principal Analyst Forrester Research

Theme Cloud Computing has the potential to disrupt IT as we know it today.

Agenda
IT implications of business at Internet speed
Cloud computing defined
Who is using it and how?
Where this is headed
What’s the enterprise IT play?

Keeping up with the Jones’
Meet the new Mr. Jones.
He’s:
Younger than you
Faster than you
More connected than you
More global than you
More flexible than you
Investing more than you
Didn’t used to be your competitor

What it takes to compete now
Get to market faster
Fail fast
Do now, plan later
Act below the budget line
If it succeeds:
Build upon it faster
Take it global fast
Scale it fast (cloud scale)

What’s driving business to cloud-scale? Windows Live

The IT-business disconnect is growing
Business wants
A place to experiment
Fast integration
Looser IT restrictions
Responsiveness
IT wants
Plenty of notice
Predictability
Stability
Justification
Wham!

Who’s filling the gap? Cloud computing

Agenda

Definition: cloud computing A pool of highly scalable, abstracted infrastructure, capable of hosting end-customer applications, that is billed by consumption.

Cloud computing characteristics
Massive, abstracted infrastructure
Components decided for you
Dynamic allocation, scaling, movement of applications
Pay per use
No long-term commitments
OS, application architecture independent
No hardware or software to install

Cloud computing architectural fundamentals Source: upcoming research, Cloud Computing: Not Ready For The Enterprise...Yet.

Cloud computing in use Source: upcoming research, Cloud Computing: Not Ready For The Enterprise...Yet.

Who are the cloud providers today? Source: upcoming research, Cloud Computing: Not Ready For The Enterprise...Yet. Virtual iron-based cloud infrastructure with embedded cluster load balancing and HA services FlexiScale XCalibre Cloud offering housed within Terremark collocation facilities Infinistructure Terremark Extendable cloud platform for Web-based applications Force.com Salesforce.com 3Tera AppLogic-based cloud utility computing platform GridLayer Layered Technology Cloud computing platform built on OpenSolaris and Joyent Accelerators (virtual servers) Accelerator for Applications Joyent 3Tera AppLogic-based cloud utility computing platform DynamicGrid Fortress ITX 3Tera AppLogic-based cloud hosting and cloud-enabling services Computing Utility Enki 3Tera AppLogic-based cloud hosting for small businesses Virtual Hosting AretiInternet Elastic Compute Cloud (EC2) virtualized cloud infrastructure, Simple Storage Service (S3) cloud storage, various cloud implemented application services Amazon Web Services Amazon.com Content-delivery network solution that improves edge performance application experience by moving cloud applications closer to target users Application Performance Services Akamai Description Offering Company

Cloud computing: the latest evolution of hosting Source: upcoming research, Cloud Computing: Not Ready For The Enterprise...Yet.

Agenda

Cloud’s customers
Startups
Web-based business, SaaS, collaboration services, widget providers, mobile services, social networking
Small businesses
Online businesses, online presence, collaboration, enterprise integration
Enterprises
R&D projects, quick promotions, widgets, online collaboration, partner integration, social networking, new business ventures

The cloud value prop to enterprise
Instant, easy access to resources
No commitment
Pay for it with a credit card
Instant scale if you need it
Try first, justify second
Source: http://open.blogs.nytimes.com

Agenda

Cloud advantages
Massive scale yields economies of scale.
Common infrastructure speeds innovation.
Dynamic, automated infrastructure easier
High utilization yields greater ROI.
Success drives IT investment.
IT is the business.
If your customers succeed, so do you.

Where the advantages really show
Internet scale — across megacenters
Where applied to direct services and cloud customers
Where a common business model can be deployed on a global scale

Who’s got next . . . most likely Source:

Why this is so compelling: It’s a disruptive technology
Doesn’t meet enterprise needs
Isn’t easy for enterprises to control
Doesn’t support general enterprise IT practices
Good enough for startups and SMBs
“ Cheap” compute
Source: upcoming research, Cloud Computing: Not Ready For The Enterprise...Yet.

Agenda

Recommendations
Start experimenting with the cloud.
Be prepared for your business to experiment with it.
Let them know what you want.
Leverage the cloud infrastructure internally.
Build your own cloud.

Who are the leading enterprise cloud builders today? Source: upcoming research, Cloud Computing: Not Ready For The Enterprise...Yet. Helps enterprises leverage clouds RightScale Network.com is Sun’s first foray into this space and the model upon which SunPS is architecting clouds today Sun AppLogic is a cloud infrastructure software offering. 3Tera Blue Cloud is IBM’s initiative to help enterprises, governments and educational customers build and deploy their own clouds IBM Dell Data Center Solutions offers Dell Cloud Computing Solutions for creation, optimization and management of enterprise clouds. Dell Offering Company

Cloud building blocks Source: upcoming research, Cloud Computing: Not Ready For The Enterprise...Yet.

Thank you James Staten +1 650.581.3824 [email_address] www.forrester.com Join our IT Research Panel today! By signing up you can contribute to surveys and get complimentary access to pre-published insight, comparative data, and best practices drawn from the surveys conducted. Visit: http://itpanel.forrester.com/

Selected bibliography
December 24, 2007, “There Are Three IT Architectures Not One”
November 14, 2007, “Hosted eCommerce: An Interim Solution”
August 15, 2007, “What Can Enterprise Learn From The Web Giants?”
July 26, 2007, “Developing Enterprise Web 2.0 Applications”
February 22, 2007, “Google Releases Google Apps Premier Edition”

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Cloud Computing in the Enterprise

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Cloud Computing in the Enterprise — Presentation Transcript