1. Why Open Source Powers the Cloud

2. Three Questions
2

3. Three Questions
Why Did the Number of US Automakers
Drop by 90% Between 1920 and 1940?
2

4. Three Questions
Why Did the Number of US Automakers
Drop by 90% Between 1920 and 1940?
What Does that Mean for Cloud
Computing?
2

5. Three Questions
Why Did the Number of US Automakers
Drop by 90% Between 1920 and 1940?
What Does that Mean for Cloud
Computing?
Why is Open Source Important Crucial to
the Future of Cloud Computing?
2

15. Two Facts
7

16. Two Facts
Change in Cost of
Manufacturing Model T -75%
1913-1920
Market Share Model T
75%
1920
7

17. Two Facts
Change in Cost of
Manufacturing Model T -75%
1913-1920
Market Share Model T
75%
1920
7

18. Number of US Auto Makers
8

19. Number of US Auto Makers
1920 200+
1940 17
2010 3
8

20. Number of US Auto Makers
1920 200+
1940 17
2010 3
8

21. Number of US Auto Makers
1920 200+
1940 17
2010 3
8

22. Number of US Auto Makers
1920 200+
1940 17
2010 3
8

23. 9

24. 9

25. 10

26. 10

30. Bechtel Benchmark Study
Resource Bechtel Cloud Provider
Bandwidth $500/megabit $10-$15/
megabit
(YouTube)
Sys Admin Ratio 100 servers per 17,000 servers
admin per admin
(Google)
Storage $3.75/GB/Mo $.10/GB/Mo
(Amazon)
13

31. 14

32. 14

33. • Grows from 1MM to 100+ MM insurance claims/day
in one week
14

34. • Grows from 1MM to 100+ MM insurance claims/day
in one week
• Traditional solution: $750K new hardware + $30K/
month maintenance/hosting
14

35. • Grows from 1MM to 100+ MM insurance claims/day
in one week
• Traditional solution: $750K new hardware + $30K/
month maintenance/hosting
• Cloud solution: $600/month Amazon Web Services
14

36. What Lessons Does River Rouge Teach?
15

37. What Lessons Does River Rouge Teach?
• Providers require scale to be competitive
15

38. What Lessons Does River Rouge Teach?
• Providers require scale to be competitive
• Users will shift from being providers
15

39. What Lessons Does River Rouge Teach?
• Providers require scale to be competitive
• Users will shift from being providers
• The scope and scale of applications will explode
15

40. What Lessons Does River Rouge Teach?
• Providers require scale to be competitive
• Users will shift from being providers
• The scope and scale of applications will explode
• IT will infuse every dimension of life
15

41. What Lessons Does River Rouge Teach?
• Providers require scale to be competitive
• Users will shift from being providers
• The scope and scale of applications will explode
• IT will infuse every dimension of life
• Our computing past is a poor predictor of our
computing future
15

42. What About Software?

43. Provider Software
17

44. Provider Software
• Highly scalable
17

45. Provider Software
• Highly scalable
• Extremely cost-
effective
17

46. Provider Software
• Highly scalable
• Extremely cost-
effective
• Enable flexibility
17

47. Provider Software
• Highly scalable
• Extremely cost-
effective
• Enable flexibility
• Enable differentiation at
business level
17

48. User Software
18

49. User Software
• Highly scalable
18

50. User Software
• Highly scalable
• Unencumbered
licensing
18

51. User Software
• Highly scalable
• Unencumbered
licensing
• Enable flexibility
18

52. User Software
• Highly scalable
• Unencumbered
licensing
• Enable flexibility
• Enable agility
18

53. User Software
• Highly scalable
• Unencumbered
licensing
• Enable flexibility
• Enable agility
• Enable differentiation at
application level
18

54. Proprietary Software Realities
19

55. Proprietary Software Realities
• Licenses not agile or
flexible
19

56. Proprietary Software Realities
• Licenses not agile or
flexible
• Software businesses
focused on old way
19

57. Proprietary Software Realities
• Licenses not agile or
flexible
• Software businesses
focused on old way
• Innovation occurring in
open source
19

58. Proprietary Software Realities
• Licenses not agile or
flexible
• Software businesses
focused on old way
• Innovation occurring in
open source
• Open source enables
cloud providers
19

59. Proprietary Software Realities
• Licenses not agile or
flexible
• Software businesses
focused on old way
• Innovation occurring in
open source
• Open source enables
cloud providers
• Open source enables
cloud users
19

60. Conclusions
20

61. Conclusions
• Learn from history
20

62. Conclusions
• Learn from history
• History teaches economic scale in scalable
industries
20

63. Conclusions
• Learn from history
• History teaches economic scale in scalable
industries
• Cloud computing will transform the face of what
we consider computing
20

64. Conclusions
• Learn from history
• History teaches economic scale in scalable
industries
• Cloud computing will transform the face of what
we consider computing
• Open source will be a critical and vital enabler of
cloud computing
20

65. Conclusions
• Learn from history
• History teaches economic scale in scalable
industries
• Cloud computing will transform the face of what
we consider computing
• Open source will be a critical and vital enabler of
cloud computing
• The next twenty years will be fun ... and hard
20