HP CTO Summit, New Jersey, March 24, 2010

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Executive Keynote delivered at HP CTO summit in New Jersey on March 24th, 2010.

Executive Keynote delivered at HP CTO summit in New Jersey on March 24th, 2010.

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  • Ladies and Gentlemen. Good afternoon. It is a great honor to be here today. I would like to thank Jeff and Joe for inviting me to this summit.Ralph Waldo Emerson once asked his audience, “ if there is any period one would desire to be born in., is it not the age of revolution when the old and the new stand side by side, when the energies of all men are searched by fear and the hope, when the historic glories of the old can be compensated by the rich possibilities of of the new?”We too live in the age of revolution – with the globalization, collapse of three economies in succession in last 10 years – DotCommunism, followed by Housing, Finance, Insurance, and Banking industries all turned into rubbles due to the shakeout caused by fear and greed. As we emerge from these, we stand in the middle of new and old side by side, amidst the fear and hope, and glories of past and rich possibilities of new hopes and horizons.Dramatic emergence and dominance of globalization and hybrid organization driven by rapid change, competition, and new non-market environment emerging on us from all side. Next century is not going to be the same as before. Yesterday’s leaders may vanish tomorrow. I wanted to take this time to set the stage for all of us to think differently and see with an alien eye what are the new possibilities and opportunities in store for all us. How to set the stage to shape the future.
  • A computer can remember billions or even trillions of facts perfectly while we are hard pressed to remember a handful of phone numbers. A computer can quickly search a database with billions of records in fractions of a second. Computers can readily share their knowledge bases. The combination of human-level intelligence in a machine with a computer's inherent superiority in the speed, accuracy, and sharing ability of its memory will be formidable.
  • Cloud Computing enables companies to invest their resources in improving/streamlining their customer facing business processes and eliminate or reduce costly infrastructure plumbing. This shift from infrastructure operational innovation to business process innovation enables customer-driven innovation creating new avenues for growth and new business opportunities.


  • 1. Cloud Computing: Future of InfrastructureValue Destruction to Value Creation
    HP CTO Summit
    New Jersey, USA
    March 24, 2010
  • 2. (c) 2003-2010 Optena Corp.
    Source: Serving the World’s Poor, Profitably by C.K. Prahalad and Allen Hammond
  • 3. High Cost Economy of Bottom 4B
    (c) 2003-2010 Optena Corp.
    Source: Serving the World’s Poor, Profitably by C.K. Prahalad and Allen Hammond
  • 4. Changing Mindset
    (c) 2003-2010 Optena Corp.
  • 5. (c) 2003-2010 Optena Corp.
    Source: Serving the World’s Poor, Profitably by C.K. Prahalad and Allen Hammond
  • 6. “If there is any period one would desire to be born in, is it not the age of revolution when the old and the new stand side by side, when the energies of all men are searched by fear and the hope, when the historic glories of the old can be compensated by the rich possibilities of of the new?”Ralph W. Emerson
  • 7. Exploding number of application on mobile device pushes back the power to the edges
  • 8. More and More Channels are emerging to serve the information hungry Humans and Machines
  • 9. Technology Begets Computation
    (c) 2003-2010 Optena Corp.
    Source: Based on Ray Kurzweil Singularity is Near and updated by http://www.flickr.com/photos/jurvetson/43121225/sizes/l/in/set-42234/
  • 10. the technological advances enabling machines to analyze problems without “educated incapacities” or “cognitive biases”, analyze risks, simulate alternate choices, and make rapid decisions…
    (c) 2003-2010 Optena Corp.
  • 11. Are we reaching Singularity?
    “It’s a future period during which the pace of technological change will be so rapid, its impact so deep, that human life will be irreversibly transformed.”
    – Ray Kurzweil
  • 12. Globalization and Consumerization makes enterprises more vulnerable than ever before
    Boardrooms to War-Rooms
  • 13. Manufacturing of Tomorrow
    Intelligent Manufacturing
    Machine-Machine Intelligence
    Leadership through smart manufacturing
    what is good for what circumstances?
    Monetize your branding and marketing efforts through entertainment
    Consumer attention is what it counts – not how big is your advertisement budget
    (c) 2003-2010 Optena Corp.
  • 14. Food and Drugs
    Intelligent Farming/Pharming
    Know who wants what/get closer to understand what they need? When they need? How to economically deliver them? Many small lots with hefty premiums
    Use Customer for your innovation and marketing – they are powerful and center to their social universe
    Food and Drug recalls are expensive and damages
    Transform crisis into opportunity by knowing them better and engaging them better
    (c) 2003-2010 Optena Corp.
  • 15. And, Network is the Engine of this Innovation….
    (c) 2003-2010 Optena Corp.
  • 16. Who is the King? Consumer or Content ?
    (c) 2003-2010 Optena Corp.
  • 17. One who deliversInformation + Education + Entertainment gets Consumer attention
    (c) 2003-2010 Optena Corp.
  • 18. State of the Union of IT and Business
    (c) 2003-2010 Optena Corp.
  • 19. So, Does IT Matter?
    (c) 2003-2010 Optena Corp.
  • 20. Economic Climate
    The economic climate has caused many organizations
    to revisit base assumptions, such as how long to hold on to servers, how many vendors to work with for a given platform/operating environment, and how to best-utilize personnel and deal with skill shortages.
    Aging IT infrastructures
    have forced many organizations to rethink traditional, incremental technology improvement programs, and to focus instead on a holistic IT modernization program
    (c) 2003-2010 Optena Corp.
  • 21. Cloud Computing
    New deployment and operational model for delivering new services rapidly
  • 22. Joe’s Great Wisdom on Economics of Cloudhttp://www.cloudonomics.com/
    (c) 2003-2010 Optena Corp.
  • 23. Cloud Computing: Enablers
    Virtual servers, virtual storage and virtual networking
    Automation is the Key
    They automate server/VM; storage, network, platform, and application provisioning
    (c) 2003-2010 Optena Corp.
  • 24. Pillars of Cloud Computing
    Graphical user interface or an application programming interface
    Service Management
    Service delivery is managed through automation, and metered use is tracked.
    (c) 2003-2010 Optena Corp.
  • 25. Pillars of Cloud Computing
    Elastic data center architectures
    Applications and data run on big, flat processor and storage pools, taking as much as needed and releasing unused resources when they are no longer necessary
    Operational Support System
    Operational processes to support the service are automated as much as possible, reducing the need for manual intervention.
    (c) 2003-2010 Optena Corp.
  • 26. Pillars of Cloud Computing
    Standardized workloads
    Want to build a high-volume business? Cut the number of product variations.
    Rapid provisioning
    Customers order resources and/or applications via a Web
    No waiting for the vendor to order, install, and configure equipment, and no extended contract negotiation.
    Telco-grade billing
    Provide a simple price sheet and billing and reporting systems that help an IT organization manage its costs
    (c) 2003-2010 Optena Corp.
  • 27. Cloud Computing: Disruptive Elements
    Redefining Economies of Scale
    allows small companies to enjoy the low unit cost for scaling
    Compressed Transaction Costs
    Allowing companies to significantly enhance the richness of the information and interactivity
    (c) 2003-2010 Optena Corp.
    Credits: Joe Weinman, Cloudonomics.com
  • 28. Cloud Computing: Disruptive Elements
    Enabling Real-time Enterprise
    Enables companies to respond to changing business conditions and opportunities much faster
    Enabling User Driven Innovation
    Collaborate and Co-Create with your customers
    Availability and Reliability at Fractional Cost
    Achieve extremely high reliability architecture
    (c) 2003-2010 Optena Corp.
  • 29. Network:Powering the Engines of Innovation
    Powering the Last Mile
    Importance of reliable access with SLAs
    Design for Change
    Changing application environments, user expectations and network services demand that architects expand their thinking to ensure that the network supports new business requirements.
    New Dimensions in Network Design
    Location, Users, Applications, Devices, and Business Processes
    (c) 2003-2010 Optena Corp.
  • 30. Power of Cloud Computing
    (c) 2003-2010 Optena Corp.
  • 31. “A man who carries a cat by the tail learns something he can learn in no other way.”
    – Mark Twain
  • 32. Cloud Computing: Challenges
    (c) 2003-2010 Optena Corp.
  • 33. Applications Mobility
    What is Application Mobility?
    Ability to move applications from one location to other depends on demand, cost parameters, or to deal with disaster recovery etc
    (c) 2003-2010 Optena Corp.
  • 34. Apps-in-the-Sky
    Application Containers
    the application contained in a single server, a single image’s stack?
    the application as an n-tier ensemble of servers?Where scale-out & loose coupling are the rules?
    a structured, composed constellation of servers?Uses VLANs, port filters for isolation & security?
    (c) 2003-2010 Optena Corp.
  • 35. Network in Cloud Era
    Reliance on independently operated infrastructures to hide the details of application safety, performance, resilience, and economics.
    (c) 2003-2010 Optena Corp.
  • 36. Cloud: Promise to Fulfillment
    Moving Legacy Applications
    Boxed in applications
    VM based approach to move these applications into Cloud
    Creating New “Greenfield” Cloud Services
    Move ‘up the stack’
    Platform as the building blocks of application construction.
    (c) 2003-2010 Optena Corp.
  • 37. Security, Data Privacy, and IPLoss of Competitive Advantage,Increased costs of data disclosure,Possibility of illegal or unauthorized transaction enabled by data leak
  • 38. Management & VisibilityLack of management tools and end-to-end business process visibilityInability to configure and deploy complex business processes
  • 39. Meta-data & InteroperabilityLack of meta-data for end-to-end business processes, Transaction Processing across service providers
  • 40. Discussion
    (c) 2003-2010 Optena Corp.
  • 41. Trends and Countertrends are Powerful Market Movers
    (c) 2003-2010 Optena Corp.
  • 42. Reality – Pulse of the Customers
    (c) 2003-2010 Optena Corp.
    Source: Forrester Research
  • 43. Countertrend
    Virtualization is driving the IT industry towards an optimized infrastructure and ensure that they are creating an agile and integrated framework that subsumes the deployment of the server, network and storage – accelerating the application deployment by many fold
    (c) 2003-2010 Optena Corp.
  • 44. Trend
    Shift in Vendor Strategies
    Cisco entering the server market, the HP acquisition of 3Com, or the Virtual Computing Environment (VCE) partnership between Cisco, EMC and vmware will impact IT organizations
    The benefits touted include greater agility, flexibility and efficiency
    (c) 2003-2010 Optena Corp.
  • 45. Countertrend
    How will the competitive landscape evolve for server operating systems (OSs)
    Windows, AIX, HP-UX, Solaris, Linux and z/OS?
    New technologies, new modes of computing, and infrastructure virtualization and automation are changing the architecture and role of the OS.
    VMs will become the norm on the server, with increased use on the client as well, creating a new control point below the OS.
    Appliances — based on a VM architecture — will make modular/customized (lightweight) OSs interesting and useful.
    (c) 2003-2010 Optena Corp.
  • 46. Trend: Applications in the Sky
    The emerging wave of cloud computing represents a major shift in IT.
    This is not a single transition, but rather multiple parallel paths of evolution, at different levels of the technology stack.
    (c) 2003-2010 Optena Corp.
  • 47. Countertrend
    We see the demand for different layers of the classic technology stack “in the sky”
    Storage (Amazon Simple Storage Service [Amazon S3]),
    Database (Amazon SimpleDB, Google Bigtable and Microsoft SQL Data Services),
    Raw computing power (Amazon Elastic Compute Cloud [EC2]),
    Programming language environments (Google App Engine, Heroku, Bungee Connect and Microsoft Azure Services Platform),
    Application-centric platforms (salesforce.com'sForce.com) ,and
    Applications themselves (Microsoft Dynamics).
    (c) 2003-2010 Optena Corp.
  • 48. Trends
    Proliferation of Smart devices
    Exploding number of application on mobile device pushes back the power to the edges
    Pushing new variant of client server applications
    Exploding number of Mobile Apps
    (c) 2003-2010 Optena Corp.
  • 49. Countertrend
    App Store for Cloud
    Looking further into the future, cloud platforms will have more-direct support for monetization and management
    Linking monetization to reputation-based reuse will have a powerful effect in accelerating the evolution of solutions targeted to diverse market requirements
    (c) 2003-2010 Optena Corp.
  • 50. Open Cloud Consortium
    (c) 2003-2010 Optena Corp.
  • 51. Open Cloud Consortium
    501(3)(c) Not-for-profit corporation
    Define and Promote Standards
    Supports the development of standards, interoperability frameworks, and reference implementations.
    Manages cloud computing infrastructure to support scientific research
    Open Cloud Testbed and Intercloud Testbed.
    Open Science Data Cloud.
    Develops benchmarks.
    (c) 2003-2010 Optena Corp.
  • 52. Members
    Aerospace, Booz Allen Hamilton, Cisco, InfoBlox, Open Data Group, Optena, Raytheon, Yahoo
    CalIT2, Johns Hopkins, MIT Lincoln Lab, Northwestern Univ., University of Illinois at Chicago, University of Chicago
    Government agencies
    Open Source Projects
    Sector Project
    (c) 2003-2010 Optena Corp.
  • 53. Working Groups
    Large Data Cloud
    Open Cloud Testbed
    Intercloud Metadata
    Virtual Networking
    (c) 2003-2010 Optena Corp.
  • 54. OCC Testbed
    (c) 2003-2010 Optena Corp.
    Phase 2
    9 racks
    250+ Nodes
    1000+ Cores
    10+ Gb/s
  • 58. Thank You
    blog: cloudrants.com
    tweet: @sureddy
    email: sureddy@optena.com
    (c) 2003-2010 Optena Corp.