Key insights from VMware into the ways cloud computing is challenging industries

1. Insights into the ways
cloud computing is
challenging industries

2. Is Cloud Inherently Disruptive?
Cloud computing models often lie behind the disruption we can see occurring in
many industries. But upstart start-ups challenging the way business is done in
their sector recognise that technology is only one element. Every unorthodox
new organisation is also experimenting with radical new approaches in areas
such as delivery, pricing and customer service.
While technology plays an essential role, without new organisational models,
changes in business processes and novel forms of revenue generation, these
businesses cannot move the status quo very far from its point of origin. Together,
new technology and associated payment models combine with innovative ways
of doing business to create a perfect storm of disruption.
But how is this happening in reality? How is cloud being used to challenge
established practice? What does this mean for end-users? In this new white
paper, we have taken a look at a number of companies that are already ruffling
feathers in their respective industries.
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3. Disruption in Education
The traditional basis of further education is
changing. In the US, students aged over 25
have risen from 36% in 2008 to 38% in
2011 1. By 2020, this is predicted to rise to
42% 2.
Studying as a more mature student is no
walk in the park. People have many
commitments, such as jobs and families,
which take a large portion of their time. Distance learning is proving popular for
many older learners - the Open University alone has nearly 14,000 postgraduate
distance learners across the world 3 - particularly those doing so as part of their
professional development. It is also a great delivery mechanism for people with
mobility problems, or who live in more remote locations.
But distance learning can be an expensive option, which is where Massive Open
Online Courses (MOOCs) come in. Working with established universities, a
number of cloud-based educational platforms offer higher courses for free,
accessible through a browser.
1
http://www.clasp.org/admin/site/publications/files/Nontraditional-Students-Facts-2011.pdf
http://www.forbes.com/sites/coursera/2012/11/16/taking-the-next-step-in-online-education-with-credit-equivalency/
2
http://www.forbes.com/sites/coursera/2012/11/16/taking-the-next-step-in-online-education-with-creditequivalency/
3
http://www.independent.co.uk/student/postgraduate/postgraduate-study/going-the-distance-the-new-trend-fordistance-learning-8500809.html
One of the biggest cloud-based learning platforms is Coursera. Coursera has a
broad focus, with courses in science, humanities, business and mathematics,
and already has over 4 million users 4. Coursera uses cloud storage to house all
of its data, indexes more than 2.5 million documents and its database handles 10
billion SQL queries every month 5.
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4. Disruption in Education
Up until recently, these courses have been for personal interest, not contributing
directly towards a university level course. Coursera has taken another step in
this direction, however, and at the beginning of 2013 five of its courses were
approved for college credit by the American Council of Education. At the end of
these courses, monitored exams can be taken online through ProctorU, which
uses webcams to allow a proctor to oversee a student’s exam. This is a paid-for
service, but it is still inexpensive compared to regular college courses 6.
It’s not only MOOCs that are disrupting education by providing services for
distance learners. Established institutions are adopting online services to expand
their student base and provide more options for those in full time work. The
Georgia Institute of Technology Distance Learning and Professional Education is
one such organisation, providing distance learning for over 14,000 people and
serving over 3,500 companies, in a number of fields such as defence, aerospace,
logistics, construction and finance. But coordinating such a program is no easy
task. In recent years, the unit has switched to a virtualised environment to serve
100 employees in geographically disparate locations. Using VMware vSphere in
the datacentre and the VMware View 4.6 virtualisation platform on devices, staff
have become more productive as they can access exactly what they need, on any
device, wherever they happen to be 7.
Another online education service, Udacity, offers courses in mathematics and
computer science. It is founded on an extremely successful online course offered
by Stanford University: Introduction to Artificial Intelligence. This was a new
direction for Stanford and was immensely successful. The course attracted
58,000 people from around the world, four times the size of the university’s
student population 8. Udacity’s online enrolment has far surpassed this, recently
reaching 750,000 users 4.
4.7
14,000
users
&
3,500
companies
million users
On Coursera’s cloud-based
education system
Served by the Georgia Institute of Technology’s
distance learning platform
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5. Disruption in Security
New-generation security providers are
using cloud-based systems and big data
analytics to change their industry for good.
This approach to cyber threat prevention,
detection and response uses scalable
cloud storage to house vast amounts of
data, derived from information shared
across the community of users.
CrowdStrike is one example of this new breed of security provider. Using
analytical techniques on big data sets, CrowdStrike can gain insights into attacks
at a level that has not previously been possible. This means attackers can be
discovered and profiled based on behaviour across a whole range of activities,
not simply from individual actions or transgressions. The reasons for an attack
and its objectives can also be identified,9 meaning that similar threats can be
identified quickly, pinpointed and actively diverted or intercepted, rather than
simply taking a fire fighting approach which deals with attacks as quickly as
possible after they happen.
Not only has cloud storage enabled the delivery of new security insights based
on the analysis of vast amounts of shared data, but it has also allowed security
services to operate without slowing down local systems. This has led to effective
new approaches against all kinds of contemporary global threats including
zero-day attacks 10.
4
https://www.coursera.org/, http://www.educationdive.com/news/moocs-by-the-numbers-howdo-edx-coursera-and-udacity-stack-up/161100/
5
http://www.youtube.com/watch?v=Fukl_VKfiz4
6
http://www.forbes.com/sites/coursera/2012/11/16/taking-thenext-step-in-online-education-with-credit-equivalency/
7
http://www.vmware.com/files/pdf/customers/VMware-GeorgiaTech-11Q4-EN-Case-Study.pdf?src=WWW_customers_VMware-Georgia-Tech-11Q4-EN-Case-Study.pdf
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9
http://www.nytimes.com/2011/08/16/science/16stanford.html?_r=0
http://www.crowdstrike.com/technology/index.html
10
http://techcrunch.com/2013/09/08/crowdstrike-raises-30m-fordata-security-platform-built-to-put-adversaries-on-the-defensive/
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6. Disruption in TV
The way that Netflix has challenged
existing providers of broadcast media
services has become a familiar story.
However, a more recent disruptor in TV –
Aereo – is starting to attract a lot of
attention, not to mention lawsuits, with the
likes of Fox, CBS, ABC and NBC attempting
to shut the service down through the
courts.
Using miniature antenna, the service allows users to watch live TV on the go,
using a laptop, smartphone or tablet. It works anywhere within the broadcast area
for ordinary TV networks, as long as a fast internet connection is available. It also
lets users record TV to watch later - the most basic package costs just $8 a
month for 20 hours of DVR recording and unlimited access to live TV 11. This is
possible thanks to the plummeting costs of cloud storage – at the end of 2012,
Aereo was purchasing petabytes of storage for as little as $95 per terabyte - a
price that continues to drop 12.
So far, Aereo has overcome all legal challenges. It is planning to expand out from
the current cities where it offers the service – as of October 2013 these are New
York City, Atlanta, Boston, Dallas, Miami, Cincinnati, San Antonio, Columbus and
Salt Lake City - and into a total of 22 US cities by the end of the year.
As little as
$95 of storage
per terabyte
11
https://aereo.com/faqs
12
http://gigaom.com/2012/12/05/aereo-ceo-our-cheap-tv-wouldnt-exist-without-cloud-computing/
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7. Disruption in Automobiles
The automotive industry has seen a lot of
disruption during its existence, in fields
from product design and manufacturing, to
on-board diagnostic and control systems.
But the next big challenge to the industry’s
modus operandi could impact an area that
has stayed relatively untouched until
recently: the driver.
Autonomous vehicles are exactly what they sound like – cars that drive themselves, without the need for active human control. Over recent decades, extensive time and money has been invested in Advanced Driver Assistance Systems
(ADAS). Cruise control, which automatically maintains a safe distance between
vehicles, and automatic parking are both examples of ADAS. Autonomous cars
go one step further, as they are able to completely take over driving.
Three US states - Nevada, California and Florida - have passed laws allowing
these vehicles to be tested on public roads with a valid license. Other states have
rejected such laws for now, while others are in the process of considering bills 13.
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8. Disruption in Automobiles
One disruptor in this space might be surprising: Google. Something traditional
automotive companies have been grappling with is how to process the volumes
of data created by the various sensors around the vehicle. Currently, a sizeable
computer in the boot is needed for most autonomous car prototypes.
Google’s design makes extensive use of cloud services, to collate and process
information on car status, road conditions and environmental factors which can
then be analysed and broadcast across the fleet 14. Currently it is difficult to guarantee continuous connectivity, but Google continues to work on improving the
vehicle and how it collates, shares and uses information.
Along with Audi and Continental, Google is one of the first companies to gain a
license for its autonomous cars in Nevada, which requires 10,000 miles to be
driven successfully on Nevada roads. That said, a consumer version is unlikely to
be available for about 5-15 years 15.
13
http://cyberlaw.stanford.edu/wiki/index.php/Automated_Driving:_Legislative_and_Regulatory_Action
14
http://analysis.telematicsupdate.com/v2x-safety/autonomous-car-road-driverless-driving
15
http://www.theregister.co.uk/2012/09/25/google_automatic_cars_legal/
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