LinuxCon North America 2013: Why Lease When You Can Buy Your Cloud


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Perhaps one of the perplexing things about cloud computing is the choice around renting time in someone else’s cloud (Amazon, Google, Rackspace or a myriad of others) or building your own. It’s not unlike the age-old car buyer’s dilemma, take the lower payments and lower total miles lease or buy the car and drive it for the long haul. Cloud computing users are often faced with the same conundrum. This presentation will focus on how to buy and build a cloud that can be fulfill the needs of most users including strategies for making use of the open source private cloud or managing workloads in both the private and public cloud using open source software.

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  • Mark Hinkle is the Senior Director, Open Source Solutions, at Citrix. He joined Citrix as a result of their July 2011 acquisition of, where he was their Vice President of Community. He is currently responsible for Citrix Open Source Business Office and the Citrix efforts around Apache CloudStack, Open Daylight, Xen Project and XenServer. Previously, he was the VP of Community at Zenoss Inc., a producer of the open source application, server, and network management software, where he grew the Zenoss Core project to over 100,000 users and 20,000 organizations on all seven continents. He also is a longtime open source expert and author, having served as Editor-in-Chief for both “ LinuxWorld Magazine ” and “ Enterprise Open Source Magazine ” . Mr. Hinkle is also the author of the book, “ Windows to Linux Business Desktop Migration ” (Thomson, 2006). He is a contributor to NetworkWorld ’ s Open Source Subnet, and his personal blog on open source, technology, and new media can be found at Open Source At Citrix – Xen Project – Apache CloudStack – Open Daylight – XenServer – Apache Software Foundation – Linux Foundation –
  • IDG Enterprise – Cloud Research URL: Date: June 2013 Survey to measure Computing Trends 1,368 Respondents Audience CIO, Computerworld, CSO, InfoWorld, ITworld, NetworkWorld Key findings Most companies are still working to identify IT operations that are candidates for cloud hosting. Cloud investments are up over last year, however, with enterprise organizations investing significantly more. Private Cloud is the preferred model; however, growth in all models is expected over the next year and a half. Lower TCO is a top selling point for both Private & Public Cloud. IT is involved more often than non-IT decision makers when determining what Cloud solutions to purchase. Most are confident that the measures/policies in place at their organizations will keep information in the cloud secure. However, they are still concerned about enforcing those policies. When it comes to making Cloud offerings more attractive, vendors should consider organization size. Enterprises want different info from vendors than SMB.
  • GigaOM: By the numbers: How Google Compute Engine stacks up to Amazon EC2 March 15, 2013 ComputerWeekly:Case study: Seadrill migrates in-house datacentre to virtual private cloud in six months August 27, 2013
  • 2011 O’Reilly Web 2.0 Conference
  • Image Source: Smart Cloud Architect NetFlix Adrian Cockcroft – Twitter(, Blog ( or Slideshare(
  • Quoted from: RoughType Blog: The cloud giveth and the cloud taketh away
  • Storage Virtualization for KVM – Putting the pieces together -
  • Sources Storage Virtualization for KVM – Putting the pieces together -
  • Storage Virtualization for KVM – Putting the pieces together -
  • Software Defined Networking (SDN) is an emerging network architecture where network control is decoupled from forwarding and is directly programmable. This migration of control, formerly tightly bound in individual network devices, into accessible computing devices enables the underlying infrastructure to be abstracted for applications and network services, which can treat the network as a logical or virtual entity. This figure depicts a logical view of the SDN architecture. Network intelligence is (logically) centralized in software-based SDN controllers, which maintain a global view of the network. As a result, the network appears to the applications and policy engines as a single, logical switch. With SDN, enterprises and carriers gain vendor-independent control over the entire network from a single logical point, which greatly simplifies the network design and operation. SDN also greatly simplifies the network devices themselves, since they no longer need to understand and process thousands of protocol standards but merely accept instructions from the SDN controllers.
  • Open Flow OpenFlow is an open standard that enables researchers to run experimental protocols in the campus networks we use every day. OpenFlow is added as a feature to commercial Ethernet switches, routers and wireless access points – and provides a standardized hook to allow researchers to run experiments, without requiring vendors to expose the internal workings of their network devices. OpenFlow is currently being implemented by major vendors, with OpenFlow-enabled switches now commercially available. In a classical router or switch, the fast packet forwarding (data path) and the high level routing decisions (control path) occur on the same device. An OpenFlow Switch separates these two functions. The data path portion still resides on the switch, while high-level routing decisions are moved to a separate controller, typically a standard server. The OpenFlow Switch and Controller communicate via the OpenFlow protocol, which defines messages, such as packet-received, send-packet-out, modify-forwarding-table, and get-stats. The data path of an OpenFlow Switch presents a clean flow table abstraction; each flow table entry contains a set of packet fields to match, and an action (such as send-out-port, modify-field, or drop). When an OpenFlow Switch receives a packet it has never seen before, for which it has no matching flow entries, it sends this packet to the controller. The controller then makes a decision on how to handle this packet. It can drop the packet, or it can add a flow entry directing the switch on how to forward similar packets in the future. OpenFlow is the first standard communications interface defined betweenthe control and forwarding layers of an SDN architecture. OpenFlow allows direct access to and manipulation of the forwarding plane of network devices such as switches and routers, both physical and virtual (hypervisor-based). It is the absence of an open interface to the forwarding plane that has led to the characterization of today’s networking devices as monolithic, closed, and mainframe-like. No other standard protocol does what OpenFlow does, and a protocol like OpenFlow is needed to move network control out of the networking switches to logically centralized control software
  • Floodlight - The Floodlight controller is an enterprise-class, Apache-licensed, Java-based OpenFlow Controller. It is supported by a community of developers including a number of engineers from Big Switch Networks. OpenFlow is a open standard managed by the Open Networking Foundation (ONF). It specifies a protocol through switch a remote controller can modify the behavior of networking devices through a well-defined “forwarding instruction set”. Floodlight is designed to work with the growing number of switches, routers, virtual witches, and access points that support the OpenFlow standard. Open Daylight – The adoption of new technologies and pursuit of programmable networks has the potential to significantly improve levels of functionality, flexibility and adaptability of mainstream datacenter architectures. To leverage this abstraction to its fullest requires the network to adapt and evolve to a Software-Defined architecture. One of the architectural elements required to achieve this goal is a Software-Defined-Networking (SDN) platform that enables network control and programmability. OpenStack Networking “Quantum” – OpenStack Networking is a pluggable, scalable and API-driven system for managing networks and IP addresses. Like other aspects of the cloud operating system, it can be used by administrators and users to increase the value of existing datacenter assets. OpenStack Networking ensures the network will not be the bottleneck or limiting factor in a cloud deployment and gives users real self service, even over their network configurations. Networking Capabilities OpenStack provides flexible networking models to suit the needs of different applications or user groups. Standard models include flat networks or VLANs for separation of servers and traffic. OpenStack Networking manages IP addresses, allowing for dedicated static IPs or DHCP. Floating IPs allow traffic to be dynamically rerouted to any of your compute resources, which allows you to redirect traffic during maintenance or in the case of failure. Users can create their own networks, control traffic and connect servers and devices to one or more networks. The pluggable backend architecture lets users take advantage of commodity gear or advanced networking services from supported vendors. Administrators can take advantage of software-defined networking (SDN) technology like OpenFlow to allow for high levels of multi-tenancy and massive scale. OpenStack Networking has an extension framework allowing additional network services, such as intrusion detection systems (IDS), load balancing, firewalls and virtual private networks (VPN) to be deployed and managed. Open vSwitch Open vSwitch is a production quality, multilayer virtual switch licensed under the open source Apache 2.0 license. It is designed to enable massive network automation through programmatic extension, while still supporting standard management interfaces and protocols (e.g. NetFlow, sFlow, SPAN, RSPAN, CLI, LACP, 802.1ag). In addition, it is designed to support distribution across multiple physical servers similar to VMware's vNetwork distributed vswitch or Cisco's Nexus 1000V. See the full feature list here
  • Amazon's cloud revenues rocket up as company posts loss
  • LinuxCon North America 2013: Why Lease When You Can Buy Your Cloud

    1. 1. BUY YOUR CLOUD WHYLEASEWHEN YOU CAN MarkR. Hinkle SeniorDirector, OpenSourceSolutions Citrix @mrhinkle
    3. 3. WHY LEASE WHEN YOU CAN BUY YOUR CLOUD @mrhinkle PRIVATE VS PUBLIC CLOUD 1. Speed of Deployment 26 % 2. Savings of CAPEX (capital expenditures) 25 % 3. Lower total cost of ownership (TCO) 25 % 4. Enabling business continuity 20 % 5. . Greater flexibility to react to charging marketing conditions 15 % 1. Lower total cost of ownership (TCO) 23 % 2. Enabling business continuity 20 % 3. Replacing on-premise legacy technology 20 % 4. Speed of deployment 19 % 5. . Savings on CAPEX (capital expenditure) 15 % PUBLIC CLOUD PRIVATE CLOUD MOST EFFECTIVE ARGUMENTS FOR MOST EFFECTIVE ARGUMENTS FOR
    4. 4. WHY LEASE WHEN YOU CAN BUY YOUR CLOUD @mrhinkle 100 million Instagram users and 40 million Vine users affected. PUBLIC CLOUD OUTAGES Everyonehasdowntime iMessage, 17% of all iTunes users affected, Documents in Cloud Gmail, Google Drive, YouTube and The Microsoft Azure Cloud suffered a worldwide service interruption that impacted secure traffic for almost a full day. AMAZON AUGUST 26, 2013 APPLE iCLOUD August 22, 2013 Google August 16, 2013 MICROSOFT AZURE February 22, 2013
    5. 5. WHY LEASE WHEN YOU CAN BUY YOUR CLOUD @mrhinkle BENEFITS OF PUBLIC AND PRIVATE CLOUDS Convenienceovercustomization All-In-One Solution “ $ ✔ Infinitely customizable to your needs. “Although it is early days, we have not experienced any downtime like the latest AWS [Amazon Web Services] glitch that affected Netflix and Instagram. I expected cloud products to be more rigid, so I was pleasantly surprised to learn that it can be tweaked to accommodate our legacy applications.” “ Value Pricing Long Features List AWS offers an extremely comprehensive cloud service, with everything from DNS to database. Google does not. This makes building applications on AWS easier, since you have bigger building blocks. So if you don’t mind locking yourself into a vendor, you’ll be more productive on AWS. Sebastien Stadl, CEO -- Scalr Broad Coverage Richard Du Plessis, CIO --Seadrill Flexibility No CAPEX Varied Support Expertise Req’d Bigger Investment $ $$
    6. 6. WHY LEASE WHEN YOU CAN BUY YOUR CLOUD @mrhinkle Abraham Masl ow The Psychol ogy of Sci ence Di f f erent i at i on AroundnotintheCloud If all you have is a hammer everything looks like a nail. “ “
    7. 7. WHY LEASE WHEN YOU CAN BUY YOUR CLOUD @mrhinkle TABLE STAKES FOR CLOUD COMPUTING MINIMUMREQUIREMENTSFORCLOUD A consumer can unilaterally provision computing capabilities Capabilities are available over the network and accessed through standard mechanisms that promote use by heterogeneous thin or thick client platforms The provider’s computing resources are pooled to serve multiple consumers using a multi-tenant model, with different physical and virtual resources dynamically assigned and reassigned according to consumer demand. Capabilities can be elastically provisioned and released, in some cases automatically, to scale rapidly outward and inward commensurate with demand. ON DEMAND SELF-SERVICE BROAD NETWORK ACCESS RESOURCE POOLING RAPID ELASTICITY MEASURED SERVICE [The NIST Definition of Cloud Computing Cloud systems automatically control and optimize resource use by leveraging a metering capability(at some level of abstraction appropriate to the type of service (e.g., storage, processing, bandwidth, and active user accounts)
    8. 8. WHY LEASE WHEN YOU CAN BUY YOUR CLOUD @mrhinkle NO WORLD OF TWO CLOUDS DEVELOPERSANDOPERATIONSNEEDONECLOUD Lydia Leong Gartner Analyst – No World of Two Clouds I do not believe in a “world of two clouds”, where there are cloud IaaS offerings that are targeted at enterprise workloads, and there are cloud IaaS offerings that are targeted at cloud-native workloads …I believe that the market leaders will offer a range of infrastructure resources. Some of those infrastructure resources will be more resilient, and will be more expensive. And customers will pay for the level of performance they receive.
    9. 9. WHY LEASE WHEN YOU CAN BUY YOUR CLOUD @mrhinkle DIFERENTIATION AROUND CLOUDS Cloudconsistency, DifferentAmenities Cloud should abstract compute, network and storage but level of service provided for each should be consumable at different levels (E.g IOPS, network throughput, RAM Technical support, integration support or other expertise that provides value to the user. May include level of knowledge above and beyond the cloud (E.g. tooling, hosted applications, etc.). Manage tools, integrations and other features that differentiate the experience. Integration with other tools (E.g. CloudStack/Netscaler, OpenStack/Dell Crowbar, Amazon EC2/CloudWatch) ToolingExpertisePerformance
    10. 10. WHY LEASE WHEN YOU CAN BUY YOUR CLOUD @mrhinkle CASE STUDIES DesignCase The reality, of course, today is that if you come up with a great idea you don't get to go quickly to a successful product. There's a lot of undifferentiated heavy lifting that stands between your idea and that success. The kinds of things that I'm talking about when I say undifferentiated heavy lifting are things like these: figuring out which servers to buy, how many of them to buy, what time line to buy them. “ “ Jef f Bezos CEO Amazon 2011 O’ Rei l l y Web 2. 0 Conf erence
    11. 11. WHY LEASE WHEN YOU CAN BUY YOUR CLOUD @mrhinkle CASE STUDY | NETFLIX STREAMING MULTIMEDIAFastTimetomarket, LimitedCapital Streaming multimedia, elastic services for peak hours, growing quickly around the world. Making a land grab (disrupting competitors), fast growth, new markets Innovation not in infrastructure but in the delivery of services is the differentiator. Open source ecosystem to manage delivery.  Auto-scaled large scale services, ephemeral instances (36 hour avg lifetime),. Fast Growth, Single Application Time To Market Innovation on the Delivery Layer Super Scale, Limited Capital Source:
    12. 12. WHY LEASE WHEN YOU CAN BUY YOUR CLOUD @mrhinkle CASE STUDY | FINANCIAL CALL CENTER PrivacyandSpeedofUtmost Importance World wide presence of representatives looking up financial data and providing customer service over the phone. Application doing look-ups against a replicated database.  Look-ups across networks can time-out. Write to CRM databases take longer Speed to answer is important, ability to take orders and make account changes immediately impacts company revenue. Overview Data Security Important Network Latency Issues Fast Service
    13. 13. WHY LEASE WHEN YOU CAN BUY YOUR CLOUD @mrhinkle CASE STUDY | XYZ ENTERPRISE LegacyEnterprise, LookingtotheCloudforAdvantages Numerous apps, running on bare metal or virtualized. Apps aren’t built for cloud and changeover costs can be expensive. Existing hardware is already purchased, capacity planning is in effect.  Management of existing IT and opportunity cost of not moving quickly are chief costs.  Self-Service, unified virtualization management, pooling of resources, agility. Typical enterprise Existing Capital Investment Primary Cost of IT What They Hope To Gain Legacy Infrastructure VMware Xen KVM LegacyApps LegacyApps User Generated Requests (Backlogged Ticket System) User Generated Requests (Backlogged Ticket System) Existing ProcessesExisting Processes IT Ops, Sysadmins, Network Ops Legacy Management ToolsLegacy Management Tools
    14. 14. WHY LEASE WHEN YOU CAN BUY YOUR CLOUD @mrhinkle Ni chol as Carr Rough Type Bl og Aut hor, Does IT Mat t er BUILD YOU CLOUD WithOpenSource “I don’t see any way around this – it’s the price we pay for the convenience of centralized apps and databases – but it’s worth keeping in mind that in the cloud we’re all guinea pigs, and that means we’re all dispensable. Caveat cloudster.”
    15. 15. WHY LEASE WHEN YOU CAN BUY YOUR CLOUD @mrhinkle Software Defined Datacenter We are moving towards the era of the software defined datacenter. Simply put all the resources we consume will be virtualized then we are able to provision, configure and manage these resources giving us the ability to program infrastructure through APIs and other mechanisms. THE THREE PILLARS OF THE CLOUD Onceit’svirtualizedyourcanprogramit
    16. 16. WHY LEASE WHEN YOU CAN BUY YOUR CLOUD @mrhinkle BUILD YOUR OWN CLOUD HowtoMovetotheCloud OpenSourceSoftware Flexible, Customizable, Interoperable BestofBreed Use the software that best suits your needs PublicandPrivate Look for tools that manage both clouds SegregateWorkloads Public cloud has advantages, use both VirtualizationVirtualization Infrastructure-as-a-Service (IaaS)Infrastructure-as-a-Service (IaaS) Platform-as-a-ServicePlatform-as-a-Service APIs APIs ManagementTools
    17. 17. WHY LEASE WHEN YOU CAN BUY YOUR CLOUD @mrhinkle Cl oud Vi rt ual i zat i on Choosingtherightvirtualizationtechnologyforyourcloud
    18. 18. WHY LEASE WHEN YOU CAN BUY YOUR CLOUD @mrhinkle CLOUD STORAGE CHALLENGES TraditionalProblems • Lots of choices for file system and virtualization management • Lack of virtualization aware file systems • File systems/storage functionality implemented in other layers of virtualization stack (Snapshots, block streaming, image formats in QEMU) • No well defined interface points in the virtualization stack for storage integration • No standard interface/APIs available for services like backup and restore • Need for a single FS/storage solution that works for local, SAN and NAS storage (Mixing storage into a single filesystem namespace)
    19. 19. WHY LEASE WHEN YOU CAN BUY YOUR CLOUD @mrhinkle Cl oud St orage Sol ut i ons StorageforaCloudyWorld
    20. 20. WHY LEASE WHEN YOU CAN BUY YOUR CLOUD @mrhinkle SDN OVERVIEW SoftwareMeetstheNetwork Business ApplicationsBusiness Applications Network ServicesNetwork Services SDNSDN Control SoftwareControl Software API Network DevicesNetwork DevicesNetwork Devices Application Layer Control Layer Control Data Plane Interface (e.g. OpenFlow) API Infrastructure Layer
    21. 21. WHY LEASE WHEN YOU CAN BUY YOUR CLOUD @mrhinkle OpenFlow enables networks to evolve, by giving a remote controller the power to modify the behavior of network devices, through a well-defined "forwarding instruction set". The growing OpenFlow ecosystem now includes routers, switches, virtual switches, and access points from range of vendors. Image from Hitchhiker’s Guide to21 OPENFLOW TheStandardforNetworkControl
    22. 22. WHY LEASE WHEN YOU CAN BUY YOUR CLOUD @mrhinkle SOFTWARE DEFINED NETWORKING TheFastestEvolvingPartoftheCloudLandscape
    24. 24. WHY LEASE WHEN YOU CAN BUY YOUR CLOUD @mrhinkle HOWTO BE A CLOUD HERO CloudComputingisstillevolvingdon’tjumpthegun “ MakeCommitmentswithCare Avoid Lock-in, Be careful of start-ups bearing gifts PickYourSpots Look for the opportunities e.g Hardware Refresh ValueYourTime Improve Productivity, Time to Value SoftwareDefinedDatacenter Your data center is now programmable My IT budget was $4 billion last year. Amazon sold $800 million in cloud services…we have a long way to go. A Fortune 100 CIO
    25. 25. WHY LEASE WHEN YOU CAN BUY YOUR CLOUD @mrhinkle Mark R. Hi nkl e Seni or Di rect or, Open Source Sol ut i ons Ci t ri x CONTACT ME NoEgoTheRismyMiddle Initial mrhinkle @mrhinkle
    26. 26. Sl i des are avai l abl e at : www. sl i deshare. net /soci al i zedsof t war e THANK YOU ForyourAttention