View stunning SlideShares in full-screen with the new iOS app!Introducing SlideShare for AndroidExplore all your favorite topics in the SlideShare appGet the SlideShare app to Save for Later — even offline
View stunning SlideShares in full-screen with the new Android app!View stunning SlideShares in full-screen with the new iOS app!
1 Cloud Computing Seminar Cambridge 1st February 2011 Using The Public Cloud To Reduce Cost Morgan Hill Consultants Ltd 12 Melcombe Place London NW1 6JJ +44 (0)203 174 0393 www.morganhill.co.uk
Some Views on Cloud Computing 2 So what is it all about?
Terms You Will Come Across 3 There is overlap between these but essentially there are three terms in use today: SaaS Software as a Service eg. Salesforce PaaS Platform as a Service eg: Microsoft Azure IaaS Infrastructure as a Service eg: AWS, Amazon Web Services What is the big change from what we used to have?
The Big Change is Not Technical it is Largely Approach 4 The retailer approach to IT Infrastructure The key things about a retailer:
Cost transparency, the price is marked on the product
Cost is actionable, it can be compared and if it is too much you can go somewhere else
Customer loyalty is earned, if you don’t like the experience you go somewhere else next time. You are not usually locked into any single retailer.
Now consider this approach in an IT environment.
AWS Rate Card 5 Here are the clear and transparent prices for Amazon EC2 (elastic compute) servers. How does an organisation take advantage of this transparency and retail approach?
Organisational Information 6 The information available to most organisations is not usually in a form that lends itself to getting the most from this level of cost transparency. What other barriers might exist?
The Organisational IT Environment 7 Up to now the IT organisation has been hampered by the difficulty in achieving on going internal cost transparency and a complex array of costs and contracts from big IT vendors:
no - difficult to be clear about what all the real costs are
Control organisational demand by showing the real cost of services consumed
Cost transparency used to be hard to achieve. When this is done the financial benefits of some cloud services will be much easier to see and then achieve. So how do we make costs transparent?
Cost Transparency 9 We need an ability to describe the real costs of the services provided. With this information we have the means to take action.
Making Cost Actionable 10 When costs are actionable then it is easier to consider the applications of new strategies and delivery models. The example below is based on our experience of using this approach to reduce IT opex by 11% with no degradation of service. So where does the AWS cloud help to reduce these costs?
AWS Cloud – Impact on Costs 11 The previous example saw AWS used to reduce the following costs: Data Centre
Servers, fewer servers required to provision for theoretical maximum loads
Storage, a wider choice of storage devices some very in-expensive
WAN, removal of high cost fibre links for in house redundancy
Buildings, release of lease costs for “dark site”
Utilities and security, release of buildings related costs
People, contactor costs for system maintenance tasks
Pan European central application 1, provisioned in the cloud
Removed capex requirement for 9 regional data centre deployments of hardware
Pan European central application 2, provisioned in the cloud
Switch from proprietary database on Unix to open source database on Linux in the cloud
Removed all licence costs and hardware maintenance contracts
The big change is not technology
It is around a retailer mentality towards customers and costs, this means cost transparency and paying for what you actually need
This is often in contrast to the approach of typical large IT vendors
To benefit it is necessary to have effective cost transparency over existing services
This is much easier to achieve now than in the past
Once achieved then a range of options exist to reduce cost an important one of which is cloud based Infrastructure as a service.