One of the areas of confusion is the definition of Cloud Computing. There are many definitions of Cloud Computing out there. Here is one of them that seems to represent the most commonly held view. It’s from the National Institute of Standards (NIST) and seems to be gaining in popularity, not only in the US, but also the rest of the world as well. The definition is essentially about “on-demand access to a shared pool of computing resources.” Breaking it down, cloud computing is composed of: 5 essential characteristics 3 service models 4 deployment models The 5 essential characteristics are key: On demand self-service – provisioning, monitoring, management control Resource pooling – implies sharing and a level of abstraction between consumers and services Rapid elasticity – the ability to quickly scale up/down as needed Measured service – metering utilization for either internal chargeback (private cloud) or external billing (public cloud) Broad network access – typically means access through a browser on any networked device I’ll cover the 3 service models and 4 deployment models on the next few slides.
“ Software as a Service” generally refers to applications that are delivered to END-USERS over the Internet. There are hundreds of SaaS providers out there covering a wide variety of applications. Oracle CRM On Demand is an example of a SaaS service. Another example is Salesforce.com “ Platform as a Service” generally refers to an application development and deployment platform delivered as a service to DEVELOPERS, allowing them to quickly build and deploy a SaaS application to end-users. These platform are often built on a grid computing architecture and include database and middleware. They are often specific to a language or API. For example Google AppEngine is Java and Python. EngineYard is Ruby on Rails. Salesforce.com’s Force.com is a proprietary variation of Java. Finally, “Infrastructure as a Service” generally refers to computing hardware (servers, storage and network) delivered as a service. This typically includes the associated software as well: operating systems, virtualization, clustering, etc. The best known example of this is Amazon Web Services, which offers Elastic Compute Cloud (EC2) for compute servers and Simple Storage Service (S3) for storage.
Animated slide. Let’s look closer at the distinction between public and private clouds. [CLICK] A public cloud is shared by multiple tenants, whereas a private cloud is for the exclusive use of a single organization. A public cloud is hosted and managed by the cloud service provider, and a private cloud is controlled and managed by in-house IT (of course, it’s also possible to outsource this, so there are such things as “hosted private clouds” or “virtual private clouds” but for the sake of simplicity, it’s easier to think of private clouds as in-house. A third observation is that public clouds usually offer a very limited variety of offerings, in order to be efficient, while a private cloud may need to provide a large number applications. Within a large enterprise, there are typically hundreds to thousands of apps. The NIST model includes “community clouds” which are essentially semi-private clouds for use by a group related organizations, such as all the schools in the University of California system, all the branches of the military, or all the parts suppliers to Ford or GM. And a hybrid cloud is some combination of the other three…typically for a single application. (if an organization has 1 app in a private cloud and a different app in a public cloud, that’s not considered a hybrid cloud). [CLICK] Each has its own unique advantages, and they have some common advantages as well. Because both public and private clouds are based on virtualization and grid computing, they enjoy high efficiency and utilization rates, elastic capacity for limitless scale-out and pay-as-you-go equipment procurement, and also high availability for maintaining high user service levels and business continuity. Public clouds are often faster and cheaper to get started, since there’s nothing to install. They offer economies of scale which the provider can pass on to customers. They don’t require IT to manage and administer, update, patch, etc. And they are paid for as Operating Expense, which can be simpler from a budgeting standpoint. Private clouds offer greater control over security and data privacy, compliance (this can be a big issue since there are some regulatory requirements about where data resides, audit trails, etc. that public clouds cannot meet today), and also quality of service, since private clouds can manage network bandwidth and implement optimizations that public clouds don’t allow. Private clouds also provide easier integration with other systems that are on-premise. They are potentially lower cost over the long term…breakeven is in 2 or 3 years. After that, public clouds become more expensive. And private clouds are paid for as both Capital Expense (with depreciation) and Operating Expense. Enterprises will make these trade-offs and will likely run a mix of public and private clouds. Even Oracle, which operates one of the biggest private clouds internally, also uses Amazon EC2 for some things, such as marketing demos. One popular use case is Dev & Test…engineering can use public cloud resources to set up development and test machines without waiting for IT to set them up. Another interesting use case is doing disaster recovery offsite in a public cloud.
Cloud Software as a Service (SaaS). The capability provided to the consumer is to use the provider’s applications running on a cloud infrastructure and accessible from various client devices through a thin client interface such as a Web browser (e.g., web-based email). The consumer does not manage or control the underlying cloud infrastructure, network, servers, operating systems, storage, or even individual application capabilities, with the possible exception of limited user-specific application configuration settings. Cloud Platform as a Service (PaaS). The capability provided to the consumer is to deploy onto the cloud infrastructure consumer-created applications using programming languages and tools supported by the provider (e.g., java, python, .Net). The consumer does not manage or control the underlying cloud infrastructure, network, servers, operating systems, or storage, but the consumer has control over the deployed applications and possibly application hosting environment configurations. Cloud Infrastructure as a Service (IaaS). The capability provided to the consumer is to provision processing, storage, networks, and other fundamental computing resources where the consumer is able to deploy and run arbitrary software, which can include operating systems and applications. The consumer does not manage or control the underlying cloud infrastructure but has control over operating systems, storage, deployed applications, and possibly select networking components (e.g., firewalls, load balancers).
There are three cloud infrastructure or service delivery models.
What are the key benefits that enterprises see in Cloud Computing? Here’s are some recent results from a survey by IDC. Benefits: the top reason to use cloud computing is speed/ease of deployment, and the next 3 are all related to lower costs.
And what are the key concerns that enterprises see in Cloud Computing? Here’s are results from the same survey by IDC. Issues: Security is the top issue. The next 2 (Perf & Avail) relate to Quality of Service. The next 2 relate to concerns about how well the cloud application fits the business requirements. There is also concern about long-term costs, lock-in and regulatory compliance.
De-position cloud = virtualization thinking. Consider your cloud implementation- where do you want to focus your efforts- on servers or applications? PaaS adds far more value to business than IaaS.
As I travel around the country and talk to clients, prospects, and partners I hear a common set of themes as companies work hard to: Refresh their enterprise architecture to a modern technology stack Make progress on their project portfolio in times of challening funding Show business value on a project by project basis And increase user adoption and productivity
What is causing the Facepalm for business and technology leaders?
- - - - - Lower Costs Drive Innovation Create revenue enhancement opportunities Tighten Business relationships Provide project compliance and governance Ensure security and audit ability of environments Show more business value, FASTER!
You’re not expecting a CTO to tell you that technology doesn’t solve everything… If only it were that easy, right? Well, I think it’s better for everyone to understand that technology innovation must be matched by process improvement, change management, solid leadership, [etc] in order to succeed.
How can you think your way through some of those challenges -- I’ve personally seen hundreds of client create dramatic results when embracing the Cloud and taking all of those challenges and business pressures and start to use that pressure to form diamonds out of coal – taking the challenges inherent in application delivery and making them a weapon to use in their fight for systems and processes that show business value and increase user adoption.
For companies who are positioning to [drive a clear strategic direction, improve business process, do other things software can’t do FOR you], Cloud computing offers the ability to… - SUMMARIZE Infrastructure Amazon E2C Akamai
REFER AGAIN TO BUSINESS CHALLENGES – EXPLAIN HOW EACH OF THESE SOLVES A BUSINESS PROBLEM FOR THE CIO/CTO Additionally the service delivery story differs in this Cloud Computing model because services are often delivered at a lower-cost due to the ability to adapt a delivery model to just in time staffing, and remote work. The Cloud model of service delivery is not to ‘land and expand’ like the client/server GSI firms, it’s focused on the right resource doing billable client work at the right time. This advantage for clients is critical in gaining a flexible cost structure and deployment and support models.
Save 35% becomes the graphic TCO Models for making the switch to Cloud Computing consist of a thorough review of People, Process and Tools employed within the solutions being migrated to the Cloud. Hardware, Network infrastructure, software, personnel, and all the costs associated with these assets need to be catalogued, and reviewed. A plan is built for the target asset needs around costs, and personnel to determine 3 or 5 year TCO metrics. Companies consistently save 35% or more when migrating an application to the Cloud. Key assets are redeployed, and business strategy snaps into focus
Speaking points: What does it mean for Sales, Service, Marketing teams? For IT Teams? Specific benefits I can sing about here. NEED TO ADD THESE POINTS? TELL A STORY? Cloud Model is the secret sauce…and here’s why: My years as an IT executive helped me see first-hand how IT struggled to focus on the business – how we were slow to market with solutions, how we seemed arrogant about whether users used our systems or not, and about how SLOW everything was to implement or change as our company business model adapted to changing markets. Cloud Computing changes that story forever. I remember how we struggled to show the value for our investment in a consistent fashion that the business would SIGN UP for. Cloud Computing changes that story forever. I remember how slowly we adapted to business rules and market changes…and how tight-fisted we were about any business control of those rules and our systems. REVIEW DESIGN OF THIS SLIDE
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“ Here is how we factored our costs, basic Exchange costs (CALs, SAs and the like) paired with Postini is around $500k. That’s not our full costs though … where the costs really start adding up is in storage and disaster recovery (particularly when you consider we have DR plans for 18 countries). So when you take unified messaging, storage, DR and admin costs which come to $500k and add the original $500k we were looking at $1 million USD per year as a total.”
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Collaboration, Community, Customer Partner-enabled Business-focused then tech focused How can cloud offer business innovation Hoe can cloud offer tech innovation Consider moving it up in the deck Changes IT focus: Strips away thumbwresting infrastructure vendor battles and software provider versioning issues Utilizes intellectual capital of IT team better That strategy team you always expected to bridge the gap between IT and Business? They can do their job now. The fantastic and brilliant developers you couldn’t keep? Get them focused on building customer and partner portals and communities which foster customer retention, bigger wallet share, and new customer acquisition by being an innovation partner with the business Transform existing focus on your server room to your business partner’s programs and business model Strip away all the trappings of your old ways, and embrace the opportunity to matter in a new way Remove application backlog Consolidate application silos in one envioronment, one one platform you can control Accelerate how your expertise impacts the business in dramatic ways
Pick a Candidate project to get started Who has the skills to engage and learn the Cloud How can you start to save fast and achieve higher ROI? Capture statistics to compare Cloud model to existing stack
Migrating The Enterprise To The CloudWhy Cloud Computing Matters4th Annual Cloud World Forum 2010, London UKKeynote: Chris Miller
Definition of Cloud Computing A style of computing where massively scalable (and elastic) IT-related capabilities are provided “as a service” to external customers using Internet technologies. This cloud model promotes availability and is composed of: 3 Service Models 5 Essential Characteristics 4 Deployment ModelsSource: NIST Definition of Cloud Computing v15
SaaS, PaaS and IaaS Software as a Service Applications delivered as a service to end-users over the Internet App development & deployment Platform as a Service platform delivered as a service Server, storage and networkInfrastructure as a Service hardware and associated software delivered as a service
Cloud Service – Division of Ownership PaaS - Managed IaaS – Co-location Hosting SaaS Users Users Users Applications Applications Applications Tools Tools Toolsr e mt su C o OS OS OS Hardware Hardware Hardware Network Network Network Physical Physical Physicalr e d v o P ec vr e S i r i Indicates separation between Provider and Customer
Public Clouds and Private Clouds Public Clouds Private Cloud• Used by • Exclusively multiple I I SaaS used by a tenants on a SaaS N N single shared basis T T PaaS organization• Hosted and E R • Controlled and PaaS managed by R A managed by IaaS N N cloud service IaaS in-house IT E E provider T • Large number T• Limited variety of applications of offerings Users Both offer: Public Clouds: Private Cloud: • High efficiency • Lower upfront costs • Lower total costs • High availability • Economies of scale • Greater control over security, • Elastic capacity • Simpler to manage compliance & quality of service • OpEx • Easier integration • CapEx & OpEx
IT Services Distribution Models Cloud services are a continuation of the Enterprise trend to virtualization.Customer Data Center Customer Data Center Customer Data Center Cloud Services (Client/Server) (Storage and offline Real-time apps, Storage apps) Centralization Virtualization Cloud Services Customer Site Customer Site Customer Site Customer Site Cloud Business Drivers: Cost savings, and faster time to value Cloud Business Concerns: Data security and privacy, responsiveness of the network
Application & Server Service Models Example Cloud Service Model Service Providers Software as a Service (SaaS) Use provider’s applications over a network Platform as a Service (PaaS) Access to cloud infrastructure resources to create and deploy user -defined applications Infrastructure as a Service (IaaS) Rent processing, storage, network capacity, and other fundamental computing resources
Network Service Models Public Clouds Cloud Types Internet $ CDN’s More Private Line IP Sec Private (SONET) WAN Opt Clouds Reliability Wavelength Private Clouds (DWDM) VPN Private VPN (MPLS) Private Line SONET CDN’s Public Less Internet VPN DWDM $ The Internet (IPSec) Clouds WAN Opt Less More Hybrid Cloud Security Public and Private
Extending Virtualization to the Network High Network VirtualizationEfficiency & Operational Flexibility Extend seamless virtualization across regional/national boundaries Remove subnet-level limitations of Virtual Machines: virtualization Resource Utilization Power Efficiency Desktop/Server Virtualization Tie-in to service providers’ VPN and L2 service offerings Increase processor utilization Leverage full scope of service provider expertise to enable new Reduce number of servers applications & business models Dedicated Client/Server Incremental reduction in power The ultimate value… Physical separation A necessary first step… Very low per-server utilization Runaway power & space costs Low Brute-force scaling… Historical Present Mode Looking Ahead
Emerging DatacenterTechnologies Data Center Virtual Machines Cloud Computing Storage
Cloud Service Delivery Integration Old Model CoLo / Mng Hosting CSD Model Service Provider InternetExternalProvidersServiceProvider MPLS Trend Trend MPLS L2VPN/L3VPN L2VPN/L3VPN HQ HQ Enterprise Datacenter Enterprise Datacenter • Integrated IaaS and Cloud VPNs • Provide fat pipes to external colo’s • SP integrates compute resources into regional sites and CO’s • SP is a dumb pipe between IT DC’s and “Rackspace” or Terremark like hosting providers • Partnerships between network service providers and SaaS/PaaS providers to offer end to end service
New Service models drive new topologies Fundamentally a Service MPLS WAN Line between WAN and DC is blurring Service is portable Networks need to be extensible
Choose the Right Network for Cloud DeliveryLevel 3 and Cloud Service Level 3 provides the right type End users get an Excellent Provider Connection - of cloud based on the end Cloud service experience Onnet users business needs MidMarket Public The Internet Cloud SaaS Large Private Enterprise Private Line Clouds Healthcare IaaS (SONET) Private VPN (MPLS) Wavelength Financial PaaS (DWDM) Services Cloud Service The Level 3 Adaptive Cloud Business Users Providers Bringing together buyers and sellers over a network optimized for cloud service delivery.
Why Are Organizations Interested in Cloud? Benefits of Cloud Computing Speed CostSource: IDC eXchange, "IT Cloud Services User Survey, pt. 2: Top Benefits & Challenges," (http://blogs.idc.com/ie/?p=210), October 2, 2008
What Are the Challenges Organizations Face? Challenges of Cloud Computing Security QoS FitSource: IDC eXchange, "IT Cloud Services User Survey, pt. 2: Top Benefits & Challenges," (http://blogs.idc.com/ie/?p=210), October 2, 2008
Applying Cloud’s Greatest Value Infrastructure or Platform?“Conventional” Rethinking theCloud Wisdom Value of CloudCloud Implementation Cloud ImplementationPaaS Where should you focus your cloud efforts? PaaSIaaS IaaSApplications, not infrastructure, drive your business
Sales Pressures Marketing PressuresSell More with Less Shrinking BudgetsClient Management Increase brand visibilityLack of Data and Analytics ROI on marketing budget Business PressuresService Pressures Business ModelFirst Call Resolution Innovation CenterBe Client-Knowledgeable Channel StrategyWorkflow and Forecasting Customer Stickiness
Project Portfolio TCO & ROIApplication Backlog Shrinking Project BudgetsApplication Silos Reconcile Skillset MatrixAdoption and Usage ROI and TCO Scrutiny CIO PressuresBusiness Expectation Business ModelBusiness Impact Innovation CenterRevenue Enhancement Partner EnablementCost Avoidance Customer Stickiness
Technology is not a silver bullet… Requires execution of project fundamentals Business Alignment Requirements Technical specifications User Acceptance Demands focus for maximum benefit and ROI Process Improvement Change Management Solid Leadership Best Practices Expertise
Why Cloud Computing is transforming Businesses
Computational Engines Pools / cloudbursting Pool A Pool B Pool C Node 1: Windows XP Node 2: Mac OSFront-end host Remote Objects Registry R-HTTP R-SOAP Node 3: 64 bits Server / Linux Parallel Computing Applications → Borrow RsSupervisor → Use Rs → Release Rs .NET Appli Node 4 : EC2 virtual machine 1 Perl Scripts Node 4 : EC2 virtual machine 1 → logOn Web Application → logOn → Use R → Borrow R Cloudbursting → Use R → logOff → Generate Graphics/Data → logOff via AWS → Release R Node 5 : EC2 virtual machine 2
Where the market is going: Where it has before In order to move to the majority phase of technology adoption, we need IT support, endorsement, and promotion. The enablers of this adoption are IT’s ability to extend applications with a platform and the proliferation of multivendor solutions Mainframe Client/Server Software As Cloud A Service Computing Technology Adoption LifecycleEra Geoffrey A. Moore Mid 20th Late 20th Early 21th Today Century Platforms Century Platforms Century PlatformsPlayers •Trusted AdvisorModel •Value Added •Value Added Direct Sales Direct Sales Reseller Reseller Teams Teams •Value Added •Value Added Distributor DistributorPlayers
Cloud Computing Changes the Gameboard Focus on Business Impact Accelerate Speed to Market Increase Adoption Validate Business Models quickly and thoroughly Provides Lower TCO and Higher ROI 30-40% lower TCO (Yankee Group) Significant ROI due to Cost Avoidance and Supply Savings vs. tradition On-Premise deployment model Responds well to Change Plan. Deploy. Innovate. Tools in hands of business to enact change Development, Governance and Compliance tools in hands of IT
Why is your organization using or planning to use SaaS inthe next 12 months?
Google Apps vs. Exchange TCO Review (Serena) 34
The Cloud Computing Model is mature is supported by a strong network of platforms is secure and scalable drives innovation provides business-focus and accelerates delivery creates community and customer opportunities lowers TCO, increases ROI releases the valve on “Pressure Points”
Why is your organization currently transitioning from acurrent on-premises solution to a SaaS solution?
Case Study: Social MediaAstadia created "Crocs Ideas"a social media site Consumers can POST Ideas to Crocs Members can VOTE on submitted Ideas and voice comments Consumers can participate in product SURVEYS to help Crocs innovate new products Consumers can preview the COMING SOON products and follow these products when they reach market COMING SOON: All of Crocs other social media presence on Facebook, Twitter, and Blogs are now being integrated Crocs, Inc. is a designer, manufacturer and retailer of footwear under the Crocs™ brand. They are sold in 100 countries.
Case Study: CRM + Force.com Replacement of internal Powerbuilder application with salesforce.com CRM and force.com application development Force.com utilized for i) enhancing logic layer for data integrations, ii) providing interfaces to present crucial data from legacy environments and iii) storing G/L data for analytics Salesforce.com deployed for account and opportunity management Big Machines utilized for centralized pricing across 100 branches Construction data integration via MHC or Reed Cast Iron orchestrations for JDE integrations Williams Scotsman offers space solutions Optimization gives valuable selling time back to for the construction, education, industrial, commercial/retail, healthcare, and sales government markets, with operations in the United States, Mexico, and Canada.
Manhattan Associates Replaces Legacy Support System withSalesforce.com Service CloudManhattan Associates is a software supplier ofsupply chain and manufacturing applications,and as a software company invest heavily intechnology to support their growing softwareapplication.Challenge Challenge Solution Solution Results ResultsExisting CRM was outdated, highly Integrated customer view/standards Standardization and automation of Existing CRM was outdated, highly Integrated customer view/standards Standardization and automation of customized, && difficult for support customized, difficult for support across groups and aligned support processes across the globe across groups and aligned support processes across the globe organization to use information with sales Higher agent productivity –– bridged organization to use information with sales Higher agent productivity bridgedExisting CRM required significant Over 250 support employees quickly process gap between groups Existing CRM required significant Over 250 support employees quickly process gap between groups administration && maintenance administration maintenance up and running Better visibility/more efficient up and running Better visibility/more efficientGlobal team spread out across the Ancillary groups responsible for carrier reporting Global team spread out across the Ancillary groups responsible for carrier reporting globe with various processes; data, license key, media and training Achieved significant savings per year globe with various processes; data, license key, media and training Achieved significant savings per year process gaps between the different integrated into Salesforce and the with Salesforce Service && Support process gaps between the different support groups integrated into Salesforce and the support process with Salesforce Service Support support groups support process
Ventyx Deploys Common Support and Service Platform/Portalusing Salesforce.com Service CloudVentyx offer a range of solutions including Assetmanagement, Mobile workforce management,customer care, Energy trading and riskmanagement.Challenge Challenge Solution Solution Results Results33 support groups on 3 disparate CRM support groups on 3 disparate CRM Replaced legacy systems with Consistency and standardization of Replaced legacy systems with Consistency and standardization of applications (Siebel, Remedy, Salesforce Service and Support processes across different support applications (Siebel, Remedy, Salesforce Service and Support processes across different support IssueNet) with separate processes Deployment of AppExch Entitlements groups IssueNet) with separate processes Deployment of AppExch Entitlements groups and communications to the and Customized Asset/Product Higher agent productivity and and communications to the and Customized Asset/Product Higher agent productivity and customer structure to better serve the customer adoption customer structure to better serve the customer adoptionNo single repository for customer data Customer and Self-Service Portal Roll- Streamlined reporting and visibility of No single repository for customer data Customer and Self-Service Portal Roll- Streamlined reporting and visibility of and reporting out data across groups and reporting out data across groups Integration of Salesforce.com with Increase in customer satisfaction with Integration of Salesforce.com with Increase in customer satisfaction with defect tracking systems more user-friendly portal/solution defect tracking systems more user-friendly portal/solution (ClearQuest/Bugazilla) database (ClearQuest/Bugazilla) database
What do you need to get “Cloud-Ready”? Review Project Backlog and Portfolio for candidate apps Analyze skillset matrix of current resources Understand valuation of long-term software and hardware assets Plan to build TCO and ROI models Get alignment between business drivers and IT on priorities and strategy as it relates to Cloud approach Utilize best practices to achieve success Start with one app and expand strategy with proven success Go to astadia.com/thinktank for more content
The Future Many of the activities loosely grouped together under cloud computing have already been happening and centralised computing activity is not a new phenomena: Grid Computing was the last research-led centralised approach. However there are concerns that the mainstream adoption of cloud computing could cause many problems for users. Whether these worries are grounded or not has yet to be seen. Many new open source systems appearing that you can install and run on your local cluster – should be able to run a variety of applications on these systems.