Cloud Computing - from myth to reality

Cloud computing From myth to reality Jon Collins, Managing Director Freeform Dynamics Ltd [email_address] February 2009 www.freeformdynamics.com

Agenda

Defining Cloud – love and hate

Why is Cloud happening now?

Cloud providers – through the fog

Motivations and gotchas

The near-future of Cloud

Defining Cloud

Be careful who you talk to: 2008 Buzz Word Survey © Freeform Dynamics October 2008

Cloud Love... the industry view

“ Cloud services are 'crossing the chasm' and entering a period of widespread adoption...”

“ Wildly popular with start-ups, exactly fits the way small businesses like to buy things, and has the potential to completely upend IT as we know it...”

“ The projected shift to cloud computing will result in dramatic growth in IT products in some areas and in significant reductions in other areas. In general, assets will be utilized with greater efficiency, and we are assuming that the overall effect on market growth will be neutral. We also recognize that there is considerable upside potential for higher growth.”

And Cloud Hate! “ 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.” It's stupidity. It's worse than stupidity: it's a marketing hype campaign. Somebody is saying this is inevitable - and whenever you hear somebody saying that, it's very likely to be a set of businesses campaigning to make it true.“

… But someone forgot to tell technology buyers Poll question: Are you planning any of the following initiatives over the next 6 months? © Freeform Dynamics October 2008 Reality check: only a minority of organisations of any size see cloud-related activity as strategic

Why Now? Convergence vs Collision SOA Dynamic IT Internet Sourcing Physics Global-isation Eco-nomics Boundary Erosion

It’s Just the Start … Photo Keith Collantine, www.f1fanatic.co.uk

... So buy-side reticence is not surprising Poll question: What are your views on Cloud Computing? © Freeform Dynamics October 2008

The counter-productive fog of words Imprecise definitions Conflicting definitions Vendor interest and competitive spin Hype and misleading propaganda Lack of buyer understanding Industry analyst evangelism Unrealistic expectations

A clearer view of Cloud and its providers UTILITY PLATFORM OPERATIONS COMPONENT APPLICATION AMAZON RACKSPACE AKAMAI AMAZON GOOGLE FORCE.COM MICROSOFT (SUN) EMC MOZY AMAZON QUALYS SYMANTEC MICROSOFT GOOGLE MICROSOFT GOOGLE SALESFORCE.COM NETSUITE NING FACEBOOK TWITTER Cloud providers offer a foundation of services, which can be used directly or built upon

Cloud app providers most mature – equate to SaaS Poll question: Does your organisation use any of the following SaaS types or providers? © Freeform Dynamics October 2008

Other Parties

Constructors

IBM, HP, Dell, EMC, Fujitsu-Siemens, Microsoft

Provide architecture, infrastructure, finance

Aggregators and cloud-sourcers

BT, CSC, HP/EDS, IBM

Consolidate cloud offerings as trusted party

Cloud as foundation for outsourcing, BPO

IT purchasing motivations for Cloud

Cloud appeal today is with larger scale productivity applications 10,000+ employees 250 – 1000 employees Workgroup or individual Broader deployment Poll question: Would you consider SaaS applicable to the following types of application? © Freeform Dynamics March 2008

Decision criteria result in familiar trade-offs BUSINESS REQUIREMENTS

Current Cloud ‘Gotchas’ LOCK-IN SILOS DATA CONSIST-ENCY END-OF-LIFE ESCROW SLA’S BILLING FLEX-IBILITY SERVICE SCALING CUSTOM-ISATION DATA PRIVACY CONTRACTS LEGACY AS A SERVICE SERVICE LEVELS INTEG-RATION CONFIG-URATION IDENTITY SECURITY LEGIS-LATION RELI-ABILITY GEOG-RAPHY TRUST