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    John Landry at Mass TLC Feb09 John Landry at Mass TLC Feb09 Presentation Transcript

    • The Game Changing Disruptive Technology Driving Innovation and Capital Efficiency … aka Cloud Computing 2009 MassTLC Annual Meeting Wednesday, February 25, 2009 Moderator: John Landry Lead Dog Ventures
    • Cloud Computing The 4th Platform Shift? • Confusion and skepticism abounds.. as always! - SaaS > Software as a Service - PaaS > Platform as a Service - DaaS > Dev/Deployment Environment as Service - XaaS > X as a Service • P4.0 - the most disruptive force in software industry and by extension, the hardware industry, the storage industry… the whole freakin’ technology industry since the Web OLTP > PC > Web > Cloud • Collaborative Dev, Instant Deployment, New Application Delivery and Integration Models.. Out of the Box! Now! • Explosion of offerings at accelerating pace
    • Cloud Computing Enablers A Perfect Computing Storm! • Server Virtualization Dark Clouds … From one, let there be many! Migration • Grid Consolidation SLA’s … From many, let there be one! Cost Estimation Suppliers • Ubiquitous Fast Network Availability Privacy / Security … WiFi, 3G, WiMax, FIOS, Hi-Speed Cable Inertia LockIn • Standard Interactive Rich Client … JavaScript, AJAX, DHTML, CSS … Desktop / Laptop / SmartPhone • Open Source Development Tools Everywhere … Components, Widgets, Libraries (mootools, jstween, jquery, etc) • IT Automation and MegaScale Management! … Automatic Deployment, Metering & Billing
    • Traditional vs. Cloud Computing Traditional Cloud Computing Computing Acquisition Buy assets and build Buy service Model technical architecture Pay for fixed assets Business and administrative Pay based on use Model overhead Access Internal network or Internet, any device Model intranet, corporate client Technical Single tenant, Scalable, elastic, Model nonshared, static dynamic, multitenant
    • Cloud Computing for Dummies: Landry’s Simple Usage Model • Amazon S3 - If you bought a book, you have an S3 ID - Keys and Buckets – not for dummies! • Jungle Drive - Sets up J: ―Local‖ drive on Windows / Mac / Linux File System (WebDAV) that’s really on S3 - Drag and Drop / File Save As / Copy-Paste / Access Control - Web Access to Files / Block Moves (Advanced Features) • GoodSync by RoboForm (still a good idea!) - Syncs files between Local Drive and Jungle Drive - Access Control / Sync Settings by Folder Groups • Photo’s, Docs, Music, Vids all in one safe secure place… or in every place… and all accessible from the Web for virtually no money~!
    • The Cloud Stack: A Useful Taxonomy • Infrastructure: the core computing resources and network fabric for the cloud deployment • Platform: the software infrastructure that allows sys admins and developers to deploy an app to the cloud • Services: additional services that can be woven into the cloud app, such as billing, storage, integration • Applications: the ultimate cloud product - the actual cloud based application that the user touches.
    • The Cloud Panel: Infrastructure & Platforms • Jon Martin: EMC Director Prod Mgt, Cloud Infrastructure Group • Dave Mitchell: IBM Director of Strategy and Emerging Business in ISV & Developer Relations • Jinesh Varia: Amazon Web Services Evangelist • Steve Vinter: Google Engineering Director • Mike Werner: Microsoft Platform Strategy Advisor, Cloud Computing
    • The Cloud Panel: Services & Applications (and $$$!) • Larry Bohn: General Catalyst Managing Director • Steve Clifton: Animoto Co-founder and CTO • Greg Arnette: Sonian Founder and CTO • Nicos Vekiarides: TwinStrata Co-Founder and CEO
    • Amazon Jinesh Varia: Amazon Web Services Evangelist
    • “totally not abstract.quot;
    • moving on up… the stack.. Fast! • Amazon Simple Storage Service (Amazon S3) Oct 2007 • Amazon Simple Queue Service (Amazon SQS) • Amazon Elastic Compute Cloud (Amazon EC2) • Amazon Red Hat Linux • Amazon SimpleDB • Amazon DevPay • Amazon Flexible Payments Service (Amazon FPS) • Amazon CloudFront CDN • AWS Management Console • Amazon EC2 running MS Windows Server® 2003 • Amazon IBM Development and Production AMIs • Amazon Public Data Instances Jan 2009
    • ..a better, faster, cheaper CDN? ―Amazon CloudFront has no upfront commitments - you only pay for what you have used. There are no upfront fees or high volume requirements and no negotiations are necessary because we have published low prices from the start.‖ ―Amazon CloudFront builds further on that seamless integration by making it really simple to distribute Amazon S3 content world- wide‖
    • ..the utility bill
    • …not the poor stepchild anymore AWS trades heavily on the fact that Amazon itself is the biggest customer. quot;We tend to build the things people are asking for internally,quot; Jassy says. And the idea that AWS is mostly about wringing extra bucks (especially off-season) out of Amazon's data centers? quot;We've far exceeded the excess capacity of our internal system,quot; Jassy says. quot;That ship sailed 18 months ago.quot; For a company at which operational data is a state secret, that's a telling detail: AWS is now big enough to be piling up its own silicon.
    • … the full Monty vision
    • Google… cute apps for the masses? And there's the real disruption. Instead of building cute apps and ladling them out to the masses — the Google and Microsoft model — Amazon is delivering silicon power to the people. Bezos is fueling a flotilla of nimble, aggressive entrepreneurs, including frontier types chafing inside gilded prisons like the Googleplex. For them, AWS is a launch pad, not just for the next million Facebook apps, but also for personal live TV channels, virtual desktops, pay-by-the-mile auto insurance, and no doubt plenty of things no one has thought of yet. Spencer Reiss – Wired 04/08
    • Google Steve Vinter: Google Engineering Director
    • ..is it all too simple? • Millions of CPUs, dozens of data • Simple Storage Service (S3) centers, customized Red Hat - $0.15/GB/month; similar cost for data Linux transfers • Google File System (GFS) • Elastic Compute Cloud (EC2) - Index split and replicated; data - Amazon Machine Image (raw and VM); split into quot;shardsquot; and $0.10/hour for small server replicated • Customer Examples: • MapReduce for massive data queries (1,000+ servers) - SmugMug: up to 750 VMs, 400TB • Global Work Queue - Zillow: 500 servers and 4TB for 3 weeks - Animoto, Sonian, TwinStrata, Akiba • Google AppEngine
    • …and will the VCs fund…
    • Maybe I’m an idiot, but… “ I can’t think of anything that isn’t cloud computing with all of these announcements‖ ______ said. Maybe I’m an idiot, but I have no idea what anyone is talking about. What is it? It’s complete gibberish. It’s insane. When is this idiocy going to stop? We’ll make cloud computing announcements. I’m not going to fight this thing. But I don’t understand what we would do differently in the light of cloud computing other than change the wording of some of our ads. That’s my view.”
    • Maybe I’m an idiot, but… ―The lady doth protest too much, methinks. Hamlet Act 3, scene 2, 222–230
    • ..still a dinosaur • But what I'm asking today is whether you have changed your opinion. Do you think that Microsoft is still a dinosaur? • Benioff: I think Microsoft is still a dinosaur. More than ever, it tries to hold onto its monopolistic position around technology that they hold, whether it's SQL Server, whether it's NT, whether it's Windows, whether it's Office--these are their cash cows they don't want slaughtered. Charles Cooper and Dan Farber CNET News.com 18 March 2008
    • Microsoft Mike Werner: Microsoft Platform Strategy Advisor, Cloud Computing
    • Will Azure be like A_Zune? T http://www.youtube.com/watch?v=DDynyp 0trJY&feature=related
    • …Looking at the cloud thru Windows? • Red Dog? Pink Poodle? Azure? • Srivasta coaxed Dave Cutler, the father of Microsoft’s NT operating system, out of “semi- retirement,” and began assembling a core team of engineers. Because of Srivastava’s and Cutler’s pedigrees, the team consisted primarily of “Windows guys.” • So how do you turn a bunch of Windows guys into services guys? Mary Jo Foley 2/23/09 ZD-Net
    • 5-10 Years? • What we announced today was much broader than anything anyone has tried before,quot; says Microsoft Senior Vice-President Robert Muglia. • Gartner analyst David Mitchell Smith says quot;this is much bigger than NT. It is a tremendously broad and ambitious strategy. This is clearly about more than just competing with Amazon.― • But it will be a long time before any of Microsoft's plans come to pass. quot;Realistically, you're talking about five to 10 yearsquot; before Azure's full impact is felt, said Muglia. So far, all it has done is give programmers at the conference some software tools to begin experimenting with Azure. Actual services won't begin to roll out until 2009
    • ..it’s all about margins? quot;I'd be surprised if no one else does this,quot; he says, pausing for effect. quot;It's a really good idea!quot; And there may be an ace up his sleeve. Any economist will tell you that a commodity business — storing and processing data, for instance — is a mug's game, with prices that plunge inevitably toward the cost of production (in the case of bits, pretty close to zero). That's music to his' ears. quot;Commodity businesses don't scare us,quot; he says. quot;We're experts at them. We've never had 35 or 40 percent margins like most tech companies.
    • Clouds & Open Source • Berquist said: quot;With cloud computing the operating system and the infrastructure is managed and paid for by the vendor rather than by the customer. • quot;The more we move towards cloud computing, the more that rewards open source because the cloud software vendor can not afford to pay for software for say 25,000 server CPUs. • quot;They will go towards open source and in many cases self support. People can not afford to spend the money that would be necessary in the old client to server model. • quot;It can be 10 times cheaper than relying on the commercial guys.― Tom Berquist CFO Ingres
    • ..out of the Blue Cloud
    • IBM Dave Mitchell: IBM Director of Strategy and Emerging Business in ISV & Developer Relations
    • ..out of the Blue Cloud
    • IBM Cloud Strategy?
    • ..and what about hardware? • Dell is projecting, in fact, that 35 per cent of x64 server sales could be driven by high performance computing, service providers, and these hyperscale distributed computing deployments within the next three years. • …the differences in the ways that search engine companies implement their code to distribute data and queries across their machines will drive the architectural choices Dell helps these companies make. Different search engines get slightly different, but still custom, boxes
    • EMC Mike Feinberg: EMC SVP, Cloud Infrastructure Group, EMC Jon Martin: EMC Director of Product Management
    • ..the death of hardware? • Manufacturers like IBM and Sun are struggling to move to the new model. Sun already offers an online rental system and expects to keep selling hardware. quot;We've got to be the infrastructure,quot; says Greg Papadopoulos, Sun's chief technical officer. If you can't be them, arm them. The Death of Hardware Quentin Hardy Forbes Magazine February 11, 2008
    • ..they’ve got the power! Project 02: The Dalles Oregon Data Center 68K Sq Ft Google: 450,000 Servers! 105+ Mwatts Google Data Centers power needs equivalent to San Francisco Operational Competency & cheap power is key cloud-dominance ..and upstream on the Columbia, Microsoft and Yahoo have contracted for 95MW ..and MS announced plans for data centers in Siberia and Dublin, Google in Lithuania and Dublin, and AT&T for couple in Shanghai
    • Google.. It’s special? • …it is now the norm for Google to construct its data centers by piecing together intermodal shipping containers pre-packed with servers and cooling equipment. In 2003, Google filed for a patent on this sort of modular data center, and the patent was granted last October. • If Google can leverage an extra five degrees centigrade from Intel, it can save a few penguins - and some serious cash. According to Data Center Knowledge, Google runs at least 36 data centers across the globe, and several more are under construction. • Intel also customizes power saving motherboards for Google - a service not afforded other customers.
    • Intel gets it… • Intel says that by 2012, Mega Data Centers run by the likes of Google, Microsoft, Amazon, and Facebook will account for 20 to 25 per cent of its server chip sales. Unless the economy is still melting… currently 10% • Focused on optimizing server hardware and software for use in any quot;shared, dynamically-scalable resource pool.― • Economics are different: you get so much scale that the cost of labor becomes [much smaller]. And what you're left with is that about 50 per cent of the total cost of ownership...is the cost of the compute infrastructure - server and storage - and about another 25 per cent is the cost of power.― • The company has even reorganized itself to create a single organization dedicated to cloud fluffing. Its new high-density compute organization is building lower-power, high-density servers. It's fashioning containerized data centers that run at higher temperatures and consume far less power. It's optimizing code.
    • … but is Apple the sleeper cell? • the iPhone can easily sync applications such as e-mail, contacts, calendar, music and video content. It is estimated that there have been 600 million downloads of iTunes making it the most successful app in history • the iPhone fills as hub of users' digital lifestyle. The proof is in the numbers: Apple recently reported that over 100 million applications have been downloaded from the AppStore site.
    • Sonian Greg Arnette: Sonian Founder and CTO
    • Head in the Clouds?
    • ..and live from the PDC • For example, Muglia points out that Microsoft can run e-mail programs for corporate customers in its own data centers for a fraction of the cost of customers running the systems themselves. That can free up capital spending dollars and allow staffers to focus on more critical jobs. • Lubor Ptacek, an executive at software maker Open Text, which helps companies keep track of various types of information, plans to advise customers to let Microsoft archive older records at its data centers. quot;In this economy, companies still need to keep their content, but they don't have the money to spend on fancy new storage systems,quot; he says.
    • TwinStrata Nicos Vekiarides TwinStrata Co-Founder and CEO
    • Animoto Steve Clifton, Animoto Co-founder and CTO
    • ..the end of slideshows
    • Cloud Computing for Geeks • Company: 18 month old NYC startup • Application: Make it easy for people to create videos with their own photos or their own music • Architecture: App built on Amazon EC2, S3 and SQS. • Biz Model.. Free 30 second video, $3 for full size • Early Spring 08: Average • Method: Each video request spins up and EC2 server instance using 5K vids / day about 5 mins of CPU time at $0.10/min - Revenue is $3 • Mid-April 08 Facebook App • Scaled Up 1000X with no fixed 750K vids / 3 days! costs… now that’s a new model! Max 25K vids / hour!
    • General Catalyst Larry Bohn: General Catalyst Managing Director
    • Using S3 to Avoid VC • Amazon's developer-customers reap several advantages. Capital efficiency is one. (Trendy Mountain View- and Delhi-based startup SlideShare cheekily dubbed one of its presentations quot;Using S3 to Avoid VC.quot;) Another is instant scalability. AWS users can add or delete server and storage capacity without getting up from their Aerons. Jonathan Boutell Dec 10, 2008 2:02 AM GMT
    • ..invest in apps? Amazon, Google, Apple? • That's not Amazon's only edge. Chasing those fat margins, both Google and Microsoft are building their own Web apps — the same market indie developers can enter on the cheap using AWS. • Sergey and Larry will gladly toss you the API for Google Earth — but if you're building a better mapping app, Amazon is your place. And even if Google or Microsoft eventually does embrace utility computing, would anyone building, say, a better search engine want to park their code in Mountain View? • As VC Fred Wilson suggests, quot;Amazon is out-Googling Google.quot;
    • Q&A The World Wide Computer … programming it will be the great enterprise of the 21st century Nick Carr