Cloud Computing
Designing Applications for Efficiency
Geva Perry
General Manager,
Cloud Computing

Global 1000 Companies Rely on GigaSpaces
- Confidential -

Market Trends
• Software architecture is undergoing a “once in a decade” transformation:
1980s Client 1990s 2000s
Mainframe N-tier Virtualized
Server
• IDC on Cloud Computing: \"This is about the IT industry's new model for the next 20
years,\"
– Vernon Turner, head of enterprise infrastructure, consumer and telecoms
research.
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Volatile and Unpredictable Application Loads
• Transactions, data and user growth - require greater investment
• Volatile and unpredictable growth rates - add greater risk
• How do you design and build applications that cost-effectively scale in such
conditions?
• Without compromising reliability, performance and time-to-market?
1,300,000,000
1,200,000,000
1,100,000,000
1,000,000,000
900,000,000
800,000,000
700,000,000
600,000,000
500,000,000
400,000,000
300,000,000
200,000,000
100,000,000
0
J-04 M-04 M-04 J-04 S-04 N-04 J-05 M-05 M-05 J-05 S-05 N-05 J-06 M-06 M-06 J-06 S-06 N-06 J-07 M-07 M-07 J-07 S-07
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Non-Scalable Applications Are Expensive and Risky
• Non-scalable applications suffer from diminishing returns on added resources
• As the business grows, per transaction costs INCREASE
• At some point the application will hit a wall, leading to:
– Application crashes (and potential disaster for the business – at huge cost)
– Expensive process of re-architecting the application every few months/years
Non-Linear Scalability (15% Contention)
$1,200,000
$1,000,000 Server cost:
$20,000
Total Solution Cost
$800,000
$600,000 Single server throughput:
The Scalability
1,000 tx/sec
$400,000 Wall
Contention:
$200,000
15%
$0
1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000
Required Throughput (e.g., Tx/Sec)
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Scalability Disasters Are More Common Than Ever
• Lost customers
• Lost revenues
• Brand damage
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Downtime Costs Can Easily Exceed $100K Per Hour
• According to a 2004 Forrester survey of 235 companies the hourly
cost of downtime was:
Percent of Companies Hourly Cost
33% $10K-100K
25% $100K-500K
13% $500K- 1M
4% >$1M
25% Didn’t Know
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Gartner Highlights the Full Impact of Downtime
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Over-Provisioning is Rampant
• Companies allocate high-end, expensive servers to handle future capacity
• The result: average industry server utilization rates are15%-20%
• The trend is changing: utilization rates are growing due to virtualization
• Companies that don’t achieve higher levels of utilization will be in a
competitive disadvantage
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The Goal: Linear Scalability On Demand
• No diminishing returns on scale
• No code changes when scaling
• Drop in another box and increase capacity linearly
$1,200,000
$1,000,000
$800,000
$600,000
$400,000
$200,000
$0
1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000
1,000 tx/sec tx/sec tx/sec tx/sec
2,000 3,000 4,000
Linear Scalability Non-Linear Scalability (15% Contention)
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The Need for Speed
“Users really respond to speed.”
– Marissa Mayer, VP, Google
• A brokerage can lose up to $4 million per millisecond of
latency
– The Tabb Group
•An additional 500 ms latency resulted in -20% traffic
– Google
• An additional 100 ms in latency resulted in -1% sales
– Amazon
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The Prevailing Model: Do You See the Problem?
Business/Services Tier
Data Tier
A B C
Back-up Back-up
Messaging Back-up Back-up
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An Actual Oracle Press Release. No Kidding.
• [Numbers in brackets are COST PER CPU]
• “Qtrax's implementation includes Oracle Database [$17.5k to $47.5k],
Oracle Real Application Clusters [$23k], Oracle Enterprise Manager [$3.5 to
$20k+] and components of Oracle Fusion Middleware [?], including Oracle
Application Server [$10k to $30k] and Oracle Coherence [$4k to $25k]. With
this software now in place, Qtrax will have the ability to support millions of
concurrent users [they better!]. “
• Total: $58K to $145.5k+ per CPU!
• And don’t forget 22% annual support fees…
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Cloud Computing
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Cloud Computing
• Key Elements:
– Architecture: Virtualization, on demand provisioning, distributed computing
(parallel processing, data partitioning)
– Business model: Utility – usage-based or subscription
• Three sub-categories of cloud computing:
– Software-as-a-Service: applications
– Platform-as-a-Service: middleware, databases
– Infrastructure-as-a-Service (hardware + OS + virtualization)
• Economic drivers:
– Cloud providers benefit from economies of scale and expertise
– Only pay for what you need, when you need it
– Rapid time-to-value
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Amazon Elastic Compute Cloud (EC2)
• Rent infrastructure with a pay-per-usage model
– Compute, Bandwidth, Storage, Messages, etc.
• The Amazon Machine Image (AMI)
– Virtual resource (Hardware and Memory) which can be rapidly deployed as
needed
– Comes in several sizes
• EC2 is a part of Amazon Web Services:
– Simple Storage Service (S3)
– Simple Queue Service (SQS)
– Amazon SimpleDB (SDB)
– Flexible Payments Service (FPS)
• Two unique aspects:
– Open to third-parties
– No human interaction – just enter a credit card with no complex contracts
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Reality or Hype?
• Like all big, innovative technologies, will go through a hype cycle
• We are definitely nearing the “peak of inflated expectations”
• However…
• Gartner: “By 2012, 80 percent of Fortune 1000 companies will pay
for some cloud computing service, and 30 percent of them will pay
for cloud computing infrastructure”
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Massive Investments in Cloud Computing
• Amazon: Amazon Web Services (EC2, S3, SQS, SimpleDB and more)
• Google: Google Apps (SaaS), Google App Engine (APaaS)
• Intuit $300+ million investment
• Salesforce.com
• Microsoft: Windows Live (SaaS), SQL Server Data Services (APaaS), Windows
Cloud
• IBM: “Blue Cloud” (APaaS)
• HP: Adaptive Infrastructure as a Service (IaaS), EDS???
• Sun: Network.com (IaaS), Project Caroline (APaaS)
• EMC: Storage cloud
• Dell
• ISVs: RedHat, MySQL, Sun Solaris and others on EC2
• Telcos: AT&T, BT
• Start-Ups and Smaller Vendors: Joyent, Flexiscale, GoGrid and more
• A growing eco-system: RightScale, Elastra, CohesiveFT, Eucalyptus, 3Tera
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Cloud computing is rapidly becoming serious business
• “We expect that over the next several years the operation will
become a major business alongside our retail business”
– Adam Selipsky, vice president, Amazon Web Services
• In the last two months of 2007 usage of Amazon Web Services grew
by 40%
• $131 million revenues in Q1 from AWS
• 60,000 customers
• The majority of usage comes from banks, pharmaceuticals and
other large corporations
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Amazon Web Services Traffic Over-Taking Retail Site
Source: Amazon
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“Advanced” Cloud Uses
• Vertical and Specialized Clouds
– Compliance, Laws, Regulations
– Geography
– Industry Needs
– Technology, Platform
• Hybrid Clouds
– Cloudbursting
– Disaster Recovery, Fail-Over, Continuity
– Cloud spanning
– Cloud hopping
• Cloud Exchange
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Barriers to Cloud Computing
• Psychological Barriers
• Platform Lock-In, Dependence
• Security
• Compliance
• Costs
• Application Architecture
– How do we design applications to take advantage of the cloud?
– Grow and shrink on-demand (scalability)
– Data affinity
– Portability
– Efficiency
– Performance
– Fault-tolerance and self-healing
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The Prevailing Model: Do You See the Problem?
Business/Services Tier
Data Tier
A B C
Back-up Back-up
Messaging Back-up Back-up
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Analogy: Car Wash
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All-In-One: “Washing Unit”
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Scalability Through Parallelization
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Virtual Middleware: Eliminate All Bottlenecks
Business tier
Co-locate all application components in a single server
Manage data and messaging in memory
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Scale-Out On Demand With No Code Changes
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Write to the Database in the Background
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Achieve Resiliency with Hot Fail-Over
Primary Backup
Failure Failover
Continuous High-Availability
Single high-availability model for all tiers
Automated failover/redundancy mechanism
Active/Active – efficient use of IT resources
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Supports Common Frameworks & Languages to
Smooth Adoption and Increase Developer Productivity
C++
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