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Is Cloud Computing Viable for Enterprise IT?

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James Staten, Principal Analyst, Forrester Research on Cloud Computing

James Staten, Principal Analyst, Forrester Research on Cloud Computing

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  • 1. 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
  • 2. Theme Cloud Computing has the potential to disrupt IT as we know it today.
  • 3. 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?
  • 4. 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?
  • 5. 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
  • 6. 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)
  • 7. What’s driving business to cloud-scale? Windows Live
  • 8. 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!
  • 9. Who’s filling the gap? Cloud computing
  • 10. 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?
  • 11. Definition: cloud computing A pool of highly scalable, abstracted infrastructure, capable of hosting end-customer applications, that is billed by consumption.
  • 12. 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
  • 13. Cloud computing architectural fundamentals Source: upcoming research, Cloud Computing: Not Ready For The Enterprise...Yet.
  • 14. Cloud computing in use Source: upcoming research, Cloud Computing: Not Ready For The Enterprise...Yet.
  • 15. 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
  • 16. Cloud computing: the latest evolution of hosting Source: upcoming research, Cloud Computing: Not Ready For The Enterprise...Yet.
  • 17. 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?
  • 18. 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
  • 19. 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
  • 20. 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?
  • 21. 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.
  • 22. 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
  • 23. Who’s got next . . . most likely Source:
  • 24. 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.
  • 25. 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?
  • 26. 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.
  • 27. 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
  • 28. Cloud building blocks Source: upcoming research, Cloud Computing: Not Ready For The Enterprise...Yet.
  • 29. 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/
  • 30. 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”