Software Licensing in the Cloud<br />Stuart Charlton<br />Chief Software Architect, Elastra<br />Automating application In...
Objectives<br />Put simply, given Cloud Computing,is there still room for a software product industry?<br />Where are the ...
Waves of IT Evolution<br />Agile<br />Timeline<br />Virtual<br />ServiceOriented<br />Cloud<br />J2EE<br />Costly<br />Cli...
Automated Provisioning
Elastic Infrastructure
Virtual Data Centers
Pay Per Usage
Governance Models</li></ul>J2EE<br /><ul><li>Silos of Function
Redundancy
Sprawl</li></ul>Service Oriented<br /><ul><li>Reuse Processes
Composable Units
Decouple Components</li></ul>Virtualization<br /><ul><li>Pool Infrastructure
Optimize Resources
Decouple the Physical</li></ul>3<br />
New Powers of Governance<br />Software Units<br />Compute Units<br />WebLogic<br />Oracle DB<br />Groups & Chargebacks<br ...
The Cloud Provider Continuum<br />“Supplier Ecosystem”<br />“Retail Ecosystem”<br />Closer to theDeveloper/User<br />Close...
“On Demand” Strains Traditional Licensing<br />Growing numbers of infrastructure & services<br />Give people “on demand” f...
Package & Payment Models<br />Spectrum:<br />As a Service<br />Low footprint<br />Revocable<br />As a Product<br />Higher ...
Pricing Models<br />Traditional models still dominate<br />E.g. Oracle’s pricing on Amazon EC2<br />A trending shift to pe...
Information Asymmetry<br />Enterprise software is largely a “market for lemons”<br />Seller knows more than thebuyer<br />...
Enterprise Licensing & Maintenance<br />21% Annual Maintenance Fees<br />The “Wrap and Roll”<br />Vendor wants to make its...
The Enterprise Acquisition Process<br />RFP-led or Strategic Sourcing<br />Lots of Front Loaded Risk-Mitigation<br />Purch...
Popular and Growing Alternatives<br />“Adoption-Led Acquisition”<br />Try and buy<br />Pay after a period<br />Open source...
Acquiring Software in the Cloud<br />Supports a wider variety of adoption-led scenarios<br />E.g. On-demand doesn’t need t...
Tech Challenges to a On-Demand Licensing <br />License description<br />There are a wide variety of forms & sizes<br />Cus...
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Software Licensing In The Cloud (CloudWorld 2009)

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Stuart Charlton's session at Cloud World 2009 in San Francisco.

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  • THE IDEA: Express the information required to run Enterprise Applications in a set of open, extensible, declarative markup languages.
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  • Software Licensing In The Cloud (CloudWorld 2009)

    1. 1. Software Licensing in the Cloud<br />Stuart Charlton<br />Chief Software Architect, Elastra<br />Automating application Infrastructure<br />
    2. 2. Objectives<br />Put simply, given Cloud Computing,is there still room for a software product industry?<br />Where are the problems with today’s licensing regime?<br />What opportunities arise with cloud computing to improve the licensing situation?<br />How could we resolve technical barriers to software licensing in the cloud?<br />2<br />
    3. 3. Waves of IT Evolution<br />Agile<br />Timeline<br />Virtual<br />ServiceOriented<br />Cloud<br />J2EE<br />Costly<br />Client<br />Server<br />Cloud Computing<br /><ul><li>Virtualized Software Layer
    4. 4. Automated Provisioning
    5. 5. Elastic Infrastructure
    6. 6. Virtual Data Centers
    7. 7. Pay Per Usage
    8. 8. Governance Models</li></ul>J2EE<br /><ul><li>Silos of Function
    9. 9. Redundancy
    10. 10. Sprawl</li></ul>Service Oriented<br /><ul><li>Reuse Processes
    11. 11. Composable Units
    12. 12. Decouple Components</li></ul>Virtualization<br /><ul><li>Pool Infrastructure
    13. 13. Optimize Resources
    14. 14. Decouple the Physical</li></ul>3<br />
    15. 15. New Powers of Governance<br />Software Units<br />Compute Units<br />WebLogic<br />Oracle DB<br />Groups & Chargebacks<br />Groups & License Use<br />Apps & Quotas<br />Utilizations &SLAs<br />Dashboards<br />Encourage Efficient Use<br />Accounting<br />Specify Policy<br />Which Apps Used Which Resources?<br />Metering and Chargeback<br />Graphic View of Data Center Design & Use<br />Trends of Consumption<br />DetermineQuotas for Appsor Groups<br />Allocate Resources by Price & Capabilities<br />Prioritize Resource Costs to Business Priorities<br />Restrict Excessive Consumption<br />4<br />
    16. 16. The Cloud Provider Continuum<br />“Supplier Ecosystem”<br />“Retail Ecosystem”<br />Closer to theDeveloper/User<br />Closer to theSysAdmin/Ops<br />Platform-as-a-Service<br />Infrastructure-as-a-Service<br />5<br />
    17. 17. “On Demand” Strains Traditional Licensing<br />Growing numbers of infrastructure & services<br />Give people “on demand” freedom, they’ll use it!<br />A wide variety of licensing models<br />Customized licenses are common with enterprises<br />Rigid license enforcement policies<br />E.g. tied to a single IP address / machine<br />Services of all shapes and sizes<br />From low-level infrastructure to full software systems<br />Consolidation of enterprise software vendors<br />“Wait and see” approach with cloud computing<br />6<br />
    18. 18. Package & Payment Models<br />Spectrum:<br />As a Service<br />Low footprint<br />Revocable<br />As a Product<br />Higher footprint<br />Perpetual<br />7<br />
    19. 19. Pricing Models<br />Traditional models still dominate<br />E.g. Oracle’s pricing on Amazon EC2<br />A trending shift to perceived-value pricing<br />8<br />
    20. 20. Information Asymmetry<br />Enterprise software is largely a “market for lemons”<br />Seller knows more than thebuyer<br />Increased popularity of:<br />Proof-of-Concepts<br />Detailed RFPs<br />Open Source<br />On demand access<br />9<br />
    21. 21. Enterprise Licensing & Maintenance<br />21% Annual Maintenance Fees<br />The “Wrap and Roll”<br />Vendor wants to make its quarterly performance <br />Company wants to reduce itsspend<br />“Let’s discount maintenance for 2 years”<br />… and do it over again<br />10<br />
    22. 22. The Enterprise Acquisition Process<br />RFP-led or Strategic Sourcing<br />Lots of Front Loaded Risk-Mitigation<br />Purchase for peak demand up-front<br />Large capital outlays<br />11<br />
    23. 23. Popular and Growing Alternatives<br />“Adoption-Led Acquisition”<br />Try and buy<br />Pay after a period<br />Open source<br />Pay for support and/or complements like indemnity<br />“Agile Acquisition”<br />Co-develop the requirements and architecture<br />Growing with large-scale acquisition (e.g. government)<br />12<br />
    24. 24. Acquiring Software in the Cloud<br />Supports a wider variety of adoption-led scenarios<br />E.g. On-demand doesn’t need to be open source<br />Reduced capital and lead times for agile acquisition<br />13<br />
    25. 25. Tech Challenges to a On-Demand Licensing <br />License description<br />There are a wide variety of forms & sizes<br />Customization is common and expected with enterprises<br />License enforcement & auditing<br />How one be sure license are enforced?<br />…or at least audited?<br />Especially with fewer human barriers to access<br />14<br />
    26. 26. A Sketch of a Solution<br />Hyperlinked Cloud Modeling<br />Describing Software, Architecture, and Infrastructure<br />… Along with Entitlements!<br />Cloud Entitlement Modeling<br />Participating Roles<br />Digital Identity and Authorization<br />A Cloud Entitlement Reference Architecture<br />An Entitlements Language<br />15<br />
    27. 27. Hyperlinked Cloud Markup Languages<br />Modular, layered, open-world, “connective tissue” for automated applications<br />CONCEPT<br />IMPLEMENTATION<br />MARKUP<br />DEFINE<br />ECML<br />EDML<br />EMML<br />EXTEND<br />ELML<br />16<br />
    28. 28. Cloud Modeling Bridges Collaboration Gaps<br />Enterprise architects<br />IT OPERATIONS<br />Change & Configuration Management<br />Standard Designs<br />Application architects<br />IT management<br />Policy-Based Architectural Designs<br />Auditing, Metering, and Planning<br />End-to-End<br />CollaborativeIT Service Model<br />Automated Planning, Provision & Configuration <br />Dev/qa teams<br />Deploy & Configure Systems<br />Code, Resources, & Builds<br />SYSTEM ADMINS<br />Test System<br />Staging System<br />Production System<br />Enterprise Cloud<br />Private & Public Cloud Resources<br />17<br />
    29. 29. Cloud Entitlements – Participating Roles<br />18<br />
    30. 30. Digital Identity and AuthorizationEssential Building Blocks for Interoperable Entitlements<br /> (Kerberos) (PKI)<br />19<br />
    31. 31. Digital Identity and AuthorizationPossible Approaches or Standards<br />SAML v2.0 <br />Web Services and Web Browsers<br />WS-Federation and WS-Trust<br />Primarily for Microsoft Windows and Azure<br />OAuth<br />RESTful delegated authentication, growing at IETF<br />FOAF+SSL<br />Emerging Semantic Web approach to identity<br />Mutual SSL Authentication<br />Basic scenario, long history,relies on PKI trust<br />20<br />
    32. 32. A Cloud Entitlements Reference Architecture<br />21<br />
    33. 33. Entitlements Modeling<br />A uniform Rights & Duties foundation is possible<br />E.g. Open Digital Rights Language<br />Beware Patents<br />(includes standardslike XACML!)<br />Cloud could use targeted, minimal, extensions for payment & accounting<br />ODRL v2 Core Model<br />22<br />
    34. 34. A Minimal Licensing Entitlements Language<br />Example Rights:<br />Provision<br />Scale<br />Quota<br />Example Duties:<br />Usage Audit<br />Subscription fee<br />23<br />
    35. 35. Summary<br />Traditional Software Licensing is Under Strain<br />On Demand Models change prevailing assumptions of what is static<br />A full shift to “As a Service” models is not likely<br />But the enterprise software industry must adapt<br />Change business practices<br />and/or<br />Adopt enhanced technology to resolve license complexity<br />24<br />
    36. 36. Thank You<br />Stuart Charlton<br />stuartc@elastra.com<br />Automating Application Infrastructure<br />

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