Overview of Cloud Computing and the Potential Business Impact

Overview of Cloud Computing & Potential Business Impact Gary Reuter LBi Software Northeast PeopleSoft & NY/NJ JD Edwards RUG Meeting

Agenda
Introductions
Describing Cloud Computing
Advantages/Issues
Cloud Appropriate Solutions
Getting Started in the Cloud
Q & A

LBi Software
Over 20 years HCM Focus
Experience with Packaged Software Solutions
Active Participant in Quest & RUG Events
Team culture – average tenure is 10 years
Platform independent/process oriented
Technology centric

Origin of the term Cloud Computing
Origins are from the early days of the Internet where the network was portrayed as a cloud
First cloud around networking (TCP/IP abstraction)
Second cloud around documents (WWW data abstraction)
The emerging cloud abstracts infrastructure complexities of servers, applications, data, and heterogeneous platforms

Cloud Computing

What is a Cloud Computing
Cloud Computing
Computing via the internet
On-demand network access
Shared pool of configurable resources

A Working Description of Cloud Computing
Cloud computing - a model for enabling convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly deployed and/or released with minimal management effort or service provider interaction

5 Essential Cloud Characteristics
Broad network access
On-demand
Resource pooling
Location independence
“ Infinite” scale
Measured service

4 Cloud Deployment Models
Private cloud
Community cloud
Hybrid cloud
Public cloud

Public Cloud Sold to the public, infinite-scale infrastructure

3 Cloud Service Types *To be considered “cloud” they must be deployed on top of cloud infrastructure that has the key characteristics

Storage
Infrastructure
Networking
Virtual Machines
Software
Inside the Cloud Cloud Infastructure SaaS PaaS IaaS

Foundation Elements of Cloud Computing
Virtualization
Grid technology
Service Oriented Architectures
Distributed Computing
Broadband Networks
Browser as a platform
Free and Open Source Software
Autonomic Systems
Web 2.0
Web application frameworks
Service Level Agreements
Other Technologies Primary Technologies

Driving Cloud Adoption

Cloud Economics

Traditional Data Center Costs
Average 9000 square foot costs $21 million to build with $1 million in electricity costs/year
11.8 million servers; used at only 15% of capacity
Typically consume up to 100 times more energy per square foot than a typical office building
Data centers consume 1.5% of our Nation’s electricity (EPA)

Traditional Software Costs
$800 billion dollars spent yearly on purchasing and maintaining enterprise software
Expensive upgrade costs
Expensive licensing costs
Inflexibility
80% of enterprise software expenditure is on installation and maintenance

Cloud Economics
Estimates vary widely on possible cost savings:
“ If you move your data center to a cloud provider, it will cost a tenth of the cost.” – Brian Gammage, Gartner Fellow
“ Use of cloud applications can reduce costs 50% to 90%” - CTO of Washington D.C.
“ IT resource subscription pilot saw 28% cost savings” - Alchemy Plus (backing from Microsoft)
Preferred Hotel
Traditional: $210k server refresh and $10k/month
Cloud: $10k implementation and $16k/month

Possible Effects of Cloud Computing
Small enterprises
use SaaS and public clouds
minimize growth of data centers
Large enterprises
data centers evolve to act as private clouds
use hybrid clouds to leverage both internal and public clouds
Public clouds may adopt standards in order to run workloads from competing hybrid cloud infrastructures

Cloud Deployment Examples

Salesforce.com in Government
New Jersey Transit
Used it to build/run their call center, incident management, complaint tracking, and service portal
500% More inquiries handled
0 New agents required
36% Decrease in response time
U.S. Army used CRM for new Recruiting system
U.S. Army needed a tool to track potential new recruits who visited its Army Experience Center
Used it to track all core recruitment functions and allows the Army to save time and resources

Cloud at LBi Software
Customer Website Hosting
Brochure/Bulletin board websites
Application Hosting
LBi offers SaaS services for our flagship products
Backup Disaster Recovery at LBi data center
Backup every hour from EC2 to S3
Real time data replication from EC2 to LBi

Cloud at LBi Software
Load Testing
We launched an extra large instance to host our CaseManager application
We launched a medium size instance to host the load testing software
The load testing software simulated various amounts of users and requests
Other load testing services in the cloud

Amazon EC2

Thank You!
For more information: www.LBiSoftware.com

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