Cloudcomputing- Chris Francis- Digibiz'09

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Cloudcomputing- Chris Francis- Digibiz'09

  1. 1. Digibiz 09, London Cloud Computing: business models and commercial opportunities Open clouds, open standards and open source Dr. Chris Francis IBM June 2009 Jun © 2009 IBM Corp o ra tion
  2. 2. Open clouds, open standards and open source Cloud Computing C loud computing is a ‘new’ c o n s u m p ti o n a n d d e li v e ry m o d e l ins pired by cons umer Internet s ervices . C loud computing exhibits the following key characteris tics : •On-demand s elf-s ervice •Ubiquitous network acces s •L ocation independent res ource pooling •R apid elas ticity © 2009 IBM Co rp o ra tio n
  3. 3. Open clouds, open standards and open source Cloud Computing: A “N ew” and Disruptive Idea  Provides massively scalable computing resources from anywhere  Simplifies services delivery  Enables rapid innovation of new business models 2009  Implements a Dynamic Infrastructure for next generation data centers Cloud Computing Software as a Service 1990 Grid Computing Application Server Utility Computing Providers © 2009 IBM Co rp o ra tio n
  4. 4. Open clouds, open standards and open source The Exam Question – Why now? IT infras tructure is reaching a breaking point. 85% id le 1. 5x 7 0 ¢ p e r $1 In dis tributed computing E xplos ion of information 70% on average is s pent environments , up to driving 54% growth in on maintaining current IT 85% of computing s torage s hipments infras tructures vers us capacity s its idle. every year. adding new capabilities . $4 0 b i ll i o n 33% C ons umer product and retail 33% of cons umers notified indus tries los e about $40 of a s ecurity breach will billion annually, or 3.5 percent terminate their relations hip of their s ales , due to s upply with the company they chain inefficiencies . perceive as res pons ible. © 2009 IBM Co rp o ra tio n
  5. 5. Open clouds, open standards and open source Public Cloud Supplier(s) Enterprise Cloud Private Data/Applications Sector or Supply Chain Cloud Government Cloud © 2009 IBM Co rp o ra tio n
  6. 6. Open clouds, open standards and open source Opencloud Manifesto www.openscloudmanifesto.org 1. W o rk to g e th e r to e n s u re th a t th e c h a l le n g e s to c lo u d a d o p ti o n tog the tha tio (s e c u ri ty , i n te g ra tio n , p o rta b i l i ty , i n te ro p e ra b i l i ty , tio tab g o v e rn a n c e /m a n a g e m e n t, m e te ri n g /m o n i to ri n g ) a re a d d re s s e d ter th ro u g h o p e n c o l l a b o ra ti o n a n d th e a p p ro p ri a te u s e o f s ta n d a rd s . the tan 2. D o n o t u s e th e i r m a rk e t p o s i ti o n to l o c k c u s to m e rs i n to th e i r the tom p a rti c u l a r p la tfo rm s a n d l i m i t th e i r c h o i c e o f p ro v i d e rs . the 3. U s e a n d a d o p t e x i s ti n g s ta n d a rd s w h e re v e r a p p ro p ri a te . T h e IT tan i n d u s try h a s i n v e s te d h e a v i l y i n e x i s ti n g s ta n d a rd s a n d s ta n d a rd s try tan tan o rg a n i z a tio n s ; th e re i s n o n e e d to d u p l ic a te o r re i n v e n t th e m tio the 4. W h e n n e w s ta n d a rd s (o r a d j u s tm e n ts to e x i s ti n g s ta n d a rd s ) a re tan tme tin tan n e e d e d , w e m u s t b e j u d i c i o u s a n d p ra g m a ti c to a v o i d c re a ti n g to o tic too m a n y s ta n d a rd s . W e m u s t e n s u re th a t s ta n d a rd s p ro m o te i n n o v a ti o n tan tha tan tio a n d d o n o t i n h i b i t i t. 5. A n y c o m m u n i ty e ffo r t a ro u n d th e o p e n c l o u d s h o u l d b e d ri v e n b y the c u s to m e r n e e d s , n o t m e re ly th e te c h n i c a l n e e d s o f c l o u d p ro v i d e rs , tom th tec a n d s h o u ld b e te s te d o r v e ri fi e d a g a i n s t re a l c u s to m e r re q u i re m e n ts . tes ted tom 6. C lo u d c o m p u ti n g s ta n d a rd s o rg a n i z a ti o n s , a d v o c a c y g ro u p s , a n d tan tio c o m m u n i tie s s h o u l d w o rk to g e th e r a n d s ta y c o o rd i n a te d , m a k i n g tie tog s u re th a t e ffo rts d o n o t c o n fli c t o r o v e rl a p . tha ffo © 2009 IBM Co rp o ra tio n
  7. 7. Open clouds, open standards and open source Enough to share? Merril Lynch: The Cloud Wars : $100bn dollars+ The analysts write that by 2011 the volume of cloud computing market opportunity would amount to $160bn, including $95bn in business and productivity apps (email, office, CRM, etc.) and $65bn in online advertising. © 2009 IBM Co rp o ra tio n
  8. 8. Open clouds, open standards and open source IBM's View of Cloud Computing Com  Business benefits Bus ben – Cost savings – Employee mobility – Speed and agility in delivering new solutions  IT benefits ben – Allows IT to shift focus to business solutions instead of infrastructure – Grants economies of scale to the IT infrastructure – Is flexible in allowing use of private, public, and hybrid computing resources © 2009 IBM Co rp o ra tio n
  9. 9. Open clouds, open standards and open source Free budget for new investment and speed deployment of new capabilities V IR T U A L I Z A T IO N + S T A ND A R D IZ A T IO N + A U T O MA T I O N = C os t F l e x i b i li ty © 2009 IBM Co rp o ra tio n
  10. 10. Open clouds, open standards and open source An Internal IBM Example Without Cloud With Cloud  B u s i n e s s C a s e R e s u l ts  A n n u a l s a v i n g s : $3 . 3 M (8 4 % ) $3. (84 $3 . 9 M $3. 100% to $0 . 6 M New 100% Development Liberated funding  P ayback P eriod: 73 days for new  Net P resent Value (NP V): $7.5M Strategic Software development,  Internal R ate of R eturn (IR R ): 496% Costs Change R eturn On Inves tment (R OI): 1039% transformation  Capacity investment or Power Costs direct saving Current Deployment (1-time) IT Labor Costs Software Spend (Operations and Costs Maintenance) Hardware, Power Costs labor & power (88.8%) savings Hardware Costs Labor Costs reduced (annualized) ( - 80.7%) annual cost of Hardware Costs operation by ( - 88.7%) 83.8% Note: 3-Year Depreciation Period with 10% Discount Rate © 2009 IBM Co rp o ra tio n
  11. 11. Open clouds, open standards and open source Virtualisation is a set of concepts and techniques that allow efficient implementations of clouds. Linux is a particular operating system that both provides virtualisation and can itself be virtualised. © 2009 IBM Co rp o ra tio n
  12. 12. Open clouds, open standards and open source IBM Blue Cloud – Announced in N ovember, 2007 lou © 2009 IBM Co rp o ra tio n
  13. 13. Open clouds, open standards and open source Virtualisation is Magic lis gic  An application running elsewhere can appear to be running on your desktop. Appearance  Your entire desktop could be running elsewhere with only inputs and output displays handled locally.  What might appear to be dedicated hardware might actually be virtualised software images swapped in and out as needed.  Your hardware can be kept busier and you can use less of it.  You can save money.  New modes of use. Reality © 2009 IBM Co rp o ra tio n
  14. 14. Open clouds, open standards and open source Virtualisation: Common Elements of Success lis  Increases Hardware Utilization Inc Ha – Leverage hardware investment Appearance – This is how it all started in the '60s  Saves Energy Sav – Consolidate workloads onto smaller set of hardware resources – Reduce “server sprawl”  Reduces Administrative Costs Adm ost – Better planning of downtime, avoidance of downtime, greater automation and mobility of workloads Reality © 2009 IBM Co rp o ra tio n
  15. 15. Open clouds, open standards and open source What's Special about Linux?  Linux supports multiple hardware platforms supports ple tfor orm – Spanning from embedded devices to supercomputers – Speed of support for new platforms – Availability of skills, portability of applications – Scale-out through clustering as well as scale-up through SMP  Linux has an affinity with virtualisation ha – Supported on all major hypervisors, – Ability to be paravirtualised  Linux is flexible is fl ble – Modular and customizable, with flexible usage licensing  Linux is developed by an open community is de oped open omm – Sharing skills and resources, leading to faster development © 2009 IBM Co rp o ra tio n
  16. 16. Open clouds, open standards and open source Virtual Linux Desktops skt  Linux saves costs on the desktop sa osts the – This is the primary reason for adoption – With free and open source productivity suites, this is a very viable option  Virtual Linux desktop solutions can help reduce desk-side and help desk olu ons he support costs ppor ost – Instant client updates, rapid problem resolution, simplified application deployment and backup – Significantly reduced threat of data loss through component failure or theft  For many, such a solution is a very tangible olu ble example of the power of Linux, virtualisation, ple pow on, and cloud computing acting in concert. oud ompuput onc © 2009 IBM Co rp o ra tio n
  17. 17. Open clouds, open standards and open source The Future of Cloud Computing  Real interoperability through open standards  Increasing number of workloads transitioning to the private and public clouds  New workloads and business opportunities arising from and running on clouds  Adoption of the hybrid cloud model  Greater use of Linux on desktops and in datacenters © 2009 IBM Co rp o ra tio n
  18. 18. Open clouds, open standards and open source Parting ideas  Cloud computing gradually increasing in applicability and scope – prepare through centralization, harmonization and virtualization.  Cloud computing will be significant on both the server and the desktop.  Linux will be especially important for cloud computing because of its security, scalability, flexibility, reliability, and portability.  Traditional enterprise and desktop computing will not vanish overnight.  “Open” & real interoperability is essential for market adoption  Complementary licensing is a must.  Regulatory barriers – tariff & non-tariff barriers © 2009 IBM Co rp o ra tio n
  19. 19. Digibiz 09, London Cloud Computing: business models and commercial opportunities Open clouds, open standards and open source Dr. Chris Francis IBMp June 2009 Jun © 2009 IBM Corp o ra tion

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