Situation Normal,    Everything Must         ChangeLeading Edge Forum   March 2011
The LEF focuses on six key interrelated researchdomains              1                       2                          3 ...
Kerching!
DANGER!Will Robinson DANGER!
Pain
Pain       No. Slides
Pain    20 slides       OK                    No. Slides
344 slides            SeverePain            risk of             harm       OK                      No. Slides
CloudComputing?
Note 1: Cloud computing is still an evolving paradigm. Its definitions, use cases, underlying technologies, issues, risks, ...
Note 1: Cloud computing is still an evolving paradigm. Its definitions, use cases, underlying technologies, issues, risks, ...
We don’t knowwhat “cloud” is yet.
“The real thing to do today is to capture,what are the dimensions of the thing that literally, I will tell you, we’re bett...
We don’t knowwhat “cloud” is yet.
We don’t knowwhat “cloud” is yet.                 bet your               company on it
We don’t know what “cloud” is yet.everybody         bet your  else is.      company on it
“open up exciting new     prospects for theemployment of computers in ways and on a scale that  would have seemed purefant...
“The challenge of the  computer utility”   Douglas Parkhill        1966
http://ftp.arl.army.mil/ftp/historic-computers/png/brlescII1.png
online, utility based ...
online, utility based ...private, public, community &        government ...
online, utility based ...private, public, community &        government ... hardware to applications
Note 1: Cloud computing is still an evolving paradigm. Its definitions, use cases, underlying technologies, issues, risks, ...
Evolution
EvolutionWhy Now?
Evolution  Why Now?Benefits & Risk
Ubiquity
Ubiquity           Certainty
Ubiquity           Certainty
Ubiquity           Certainty
Ubiquity           Innovation                        Certainty
Ubiquity                        Commodity           Innovation                          Certainty
Ubiquity           Innovation of           early lists, 1980.                           Certainty
Ubiquity           Custom built,           DB Marketing           Mid 80s                      Certainty
Ubiquity            Product           Early 90s                       Certainty
Utility ServicesUbiquity              of Salesforce                              Certainty
Ubiquity           Innovation of Z3, 1941                           Certainty
Ubiquity           Custom Built LEO, 1946                      Certainty
Ubiquity             Products           IBM 650, 1954                           Certainty
Ubiquity              Services           Tymshare, 1966                            Certainty
Ubiquity           Commodity            Hardware                       Certainty
Utility ServicesUbiquity           of Amazon EC2                              Certainty
Ubiquity           Innovation of W. H.           Wollaston, 1821                            Certainty
Ubiquity           Early Products,           Hippolyte Pixii, 1830s                      Certainty
Utility ServicesUbiquity           of the National                  Grid                              Certainty
Electricity                                          AccountsUbiquity                             Infrastructure          ...
Ubiquity                                      Commodity                   Product                             Custom built...
Ubiquity                                   Utility Services                                      Commodity                ...
Ubiquity                                io n                           at                      it is                   o d...
Ubiquity           Demand           (user competition)                                Certainty
Ubiquity           Demand           (user competition)                                Improvement                         ...
Ubiquity           Demand           (user competition)                                    io n                            ...
Ubiquity           Certainty
Ubiquity           Certainty
Ubiquity           Widespread            (Demand)                        Feature Complete                         (Improve...
Ubiquity           Utility Services               Certainty
ApplicationDatabase      Framework       Messaging           Operating System             Virtualisation  CPU          Mem...
Application   Framework       MessagingOperating System  Virtualisation    Memory            I/O
Application   Framework       MessagingOperating System  Virtualisation               Infrastructure    Memory            ...
Application   Framework       Messaging     PlatformOperating System  Virtualisation               Infrastructure    Memor...
Application                   Software   Framework       Messaging     PlatformOperating System  Virtualisation           ...
UtilityUbiquity             Software             Platform           Services           Infrastructure                     ...
“The challenge of the  computer utility”   Douglas Parkhill        1966
EvolutionWhy now?
Ubiquity                            Utility Services                  Product           Custom built                      ...
Ubiquity                  Product           Custom built                            Certainty
http://www.flickr.com/photos/21734563@N04/2179722280/
Concept
Concept          Suitability
Concept                 Technology          Suitability
AttitudeConcept                 Technology          Suitability
Ubiquity           Factors                     Certainty
Ubiquity           Factors                     Certainty
Concept
Concept          Suitability
Concept                 Technology          Suitability
AttitudeConcept           ?            Technology          Suitability
P. Strassmann
Ubiquity           Certainty
N. Carr
Ubiquity             Diminishing           Strategic Value                    Certainty
Ubiquity           Competitive            Advantage                         Certainty
Ubiquity           Cost of Doing             Business                 Certainty
Ubiquity           Certainty
Payroll    HR Systems       CRM        ERP Sales Automation   InfrastructureFinance & Accounting
Ubiquity           HR   Payroll                Certainty
Ubiquity           Standardised             Service!                          Certainty
Ubiquity           Standardised             Service!                          Marketplace                              Cer...
AttitudeConcept                 Technology          Suitability
Ubiquity           Factors                     Certainty
Ubiquity           Factors                     BENEFITS                        vs                      RISKS              ...
Recap ...
Ubiquity                                   Utility Services                                      Commodity                ...
Ubiquity           Demand           (user competition)                                        io n                        ...
UtilityUbiquity             Software             Platform           Services           Infrastructure                     ...
AttitudeConcept                 Technology          Suitability
Evolution  Why now?Benefits & Risk
Ubiquity               Early Utility               Westinghouse,                  1890s              Product           Hip...
Ubiquity           Economies of scale           (volume operations)                                 Certainty
Ubiquity           Economies of scale           (volume operations)           Focus on core           (outsource)         ...
Ubiquity           Economies of scale           (volume operations)           Focus on core           (outsource)         ...
Ubiquity           efficiency                       Certainty
Cloud will reduce your IT spend.                    Kerching!
Ubiquity           Agility           (Self Service)                     Certainty
Previous             Time             (mins) Newserver     72,00064 node           130,000 cluster
Previous   Cloud             Time     Time             (mins)    (mins) Newserver     72,000       764 node           130,...
Ubiquity           Agility           (Self Service)           Opportunity                     Certainty
Ubiquity           Agility           (Self Service)           Opportunity           Innovation           (creative destruc...
The fundamental impulse                       that sets and keeps the                       capitalist engine in motion   ...
The fundamental impulse                       that sets and keeps the                       capitalist engine in motion   ...
Creative                       DestructionJoseph A. Schumpeter    (1883 - 1950)
Ubiquity                          lu e                        Va                 in   g                d           E ro   ...
Ubiquity                          lu e                        Va                 in   g                d           E ro   ...
Ubiquity             Internet                        Electricity           Hardware                          Certainty
Ubiquity                    Internet                                Electricity                Hardware                   ...
Theory of Hierarchy                    ComponentisationHerbert A. Simon  (1916 - 2001)
Rate of evolution                     of a system is                    dependant upon                    the organisation...
Application
ApplicationDatabase   Framework     Messaging
ApplicationDatabase      Framework       Messaging           Operating System             Virtualisation  CPU          Mem...
ApplicationDatabase      Framework       Messaging           Operating System             Virtualisation  CPU          Mem...
Application        Orders of        MagnitudeCPU
Ubiquity             Software             Platform           Infrastructure                            Accelerated        ...
Henry Maudslay (1771 - 1831)
Ubiquity           Agility           (Self Service)           Opportunity           Innovation           (creative destruc...
Ubiquity           consumption                Certainty
Ubiquity           efficiency                       consumption                            Certainty
“Jevons Paradox”                    Technological progress                      that increases the                   effici...
Ray Kurzweil
To thecloud ...
Risks?
Ubiquity           Certainty
Ubiquity           Disruption           Relationships           Skills           Political Capital           Investment   ...
TransitionUbiquity           Confusion           Governance           Trust           Security           Transparency     ...
Ubiquity           Outsourcing           Suitability           Competition           Lock-in           Second Source      ...
Ubiquity           Standardised             Service!                          Marketplace                              Cer...
Ubiquity           Outsourcing              Risks                         Marketplace                             Certainty
ManyProviders
Open APIs & Data Formats
SemanticInterop.
FacebookOpen Compute    (DC)
NASA & Rackspace   OpenStack     (IaaS)   Facebook Open Compute     (DC)
VMwares  Cloud Foundry      (PaaS)NASA & Rackspace   OpenStack     (IaaS)   Facebook Open Compute     (DC)
Ubiquity               Hybrid           Certainty
Ubiquity           Transitional Risks            Security of supply,           governance, trust ...                      ...
Ubiquity                 Cost           Economies of Scale,                Focus ...                                     H...
Be carefulwhat youre building!
Legacy?
Ubiquity           Infrastructure                     Certainty
Ubiquity           Scale-Up                      Certainty
Ubiquity            Scale-Up           N+1 models                        Certainty
Ubiquity           Legacy               Scale-Up             N+1 models                          Certainty
Need better hardware
Ubiquity           Legacy               Scale-Up             N+1 models   High Cost                          Specialised  ...
Ubiquity           Certainty
Ubiquity           Scale-Out                       Certainty
Ubiquity           Scale-Out                       Certainty
Design forUbiquity              Failure           Scale-Out                          Certainty
Cloud   Design forUbiquity                    Failure               Scale-Out                                Certainty
Cloud   Design forUbiquity                                Low Cost                    Failure                             ...
Need better  software
Ubiquity           Legacy               Scale-Up             N+1 models   High Cost                          Specialised  ...
Ubiquity                          Low Cost                          Commodity           Legacy               Scale-Up     ...
The end of cloudis nigh ...
Shouldnt    ourarchitecture evolve as   well?
Burnhim!   Heretic
Fancy ahighly resilient   cloud?
Ubiquity                          Low Cost                          Commodity           Legacy               Scale-Up     ...
Ubiquity                              Called           Legacy            "Cloud"               Scale-Up             N+1 mo...
Kerching ...
You haveno choice ...
Ubiquity             Market           You                      Certainty
Ubiquity             Market                      Competitive Gap                      Pay per use                      Foc...
Ubiquity             Market                   ure                     ss                 Pre           You                ...
“Red Queen Hypothesis”                  The need to constantly                  evolve in order to stand                  ...
Muhahaha
Recap ...
Ubiquity                                   Utility Services                                      Commodity                ...
UtilityUbiquity             Software             Platform           Services           Infrastructure                     ...
Utility Services           Economies of scale                 of the NationalUbiquity                                     ...
TransitionUbiquity           Confusion           Governance           Trust           Security           Transparency     ...
Ubiquity           Transitional Risks            Security of supply,           governance, trust ...                      ...
Ubiquity             Market                   ure                     ss                 Pre           You                ...
“Jevons Paradox”              Technological progress that increases the               efficiency with which a resource is u...
Ubiquity                                                    +Innovation                                            tion   ...
hang on ...theres more
DANGER!Complexity DANGER!
Shape
ShapeObservations
ShapeObservations  Pattern
Electricity                                          AccountsUbiquity                             Infrastructure          ...
Electricity                                          AccountsUbiquity                             Infrastructure          ...
Lifecycle
Innovation   Custom built   Product   Commodity
Frequency            Innovation   Custom built   Product   Commodity
Frequency            Innovation   Custom built   Product   Commodity
Frequency            Innovation   Custom built   Product   Commodity
Frequency             Enterprise 2.0             Information market             VRM            Innovation   Custom built  ...
Frequency             Dynamic             Deviation             Uncertain             Emergent             Serendipity    ...
Frequency       Chaotic            Innovation   Custom built   Product   Commodity
Frequency            Innovation   Custom built   Product   Commodity
Frequency                                               Electricity                                           Infrastructu...
Frequency                                                  Repeatable                                                    S...
Frequency                                                  Linear            Innovation   Custom built   Product    Commod...
Frequency       Chaotic                                    Linear            Innovation   Custom built   Product    Commod...
Frequency                            Transition            Innovation   Custom built   Product   Commodity
Frequency                         Commoditisation                                Co-Evolution                          Use...
Frequency                         Commoditisation                                Co-Evolution                          Use...
Who cares?
Frequency               Lists                    Siebel SIS ’94   Customer DBM ’80s                                    Sal...
Whats thebest method of    project management?
Use Six Sigma!
Frequency            Innovation   Custom built   Product   Commodity
Frequency                                              6 Sigma            Innovation   Custom built   Product   Commodity
Frequency                                              6 Sigma                                                   Reduce   ...
Frequency                                              6 Sigma            Innovation   Custom built   Product   Commodity
Frequency                                              6 Sigma             Reduce            Deviation            Innovati...
Use Agile!
Frequency            Agile     Encourages      Deviation            Innovation   Custom built   Product   Commodity
Frequency            Agile            Innovation   Custom built   Product   Commodity
Frequency            Agile                                                  Encourages                                    ...
Frequency                         No Magic                          Bullet            Innovation   Custom built   Product ...
Frequency              Survival             Tomorrow            Innovation   Custom built   Product   Commodity
Frequency                                             Survival                                              Today         ...
Frequency                                        VS              Survival                            Survival             ...
Innovation Paradox   Survival today requires ‘coherence,      coordination and stability’.    Survival tomorrow requires t...
http://www.flickr.com/photos/rednuht/479370088
Frequency            Innovation   Custom built   Product   Commodity
Frequency            Innovation   Custom built   Product   Commodity
Frequency               Dynamic               Deviation               Uncertain               Emergent               Seren...
Frequency               Dynamic                       Networked               Deviation               Uncertain           ...
Frequency                                   Networked            Innovation   Custom built   Product   Commodity
Frequency                                   Networked            Innovation   Custom built   Product   Commodity
Frequency                                 Hierarchical            Innovation   Custom built   Product   Commodity
Frequency            1. One size fits all            Innovation   Custom built   Product   Commodity
Frequency            1. One size fits all            2. But it worked for them?            Innovation   Custom built   Prod...
Frequency            1. One size fits all.            2. But it worked for them?            3. Outsourcing failures.       ...
Frequency            1. One size fits all            2. But it worked for them?            3. Outsourcing failures.        ...
Frequency            1. One size fits all            2. But it worked for them?            3. Outsourcing failures.        ...
Frequency            1. One size fits all            2. But it worked for them?            3. Outsourcing failures.        ...
We suck   Same           here
ShapeObservations  Pattern
Ubiquity                                                    +Innovation                                            tion   ...
Frequency                                        Commoditise                                                    Undifferen...
Frequency                                        Commoditise                                                    Undifferen...
Frequency                                        Commoditise                                                    Undifferen...
Frequency                                        Commoditise                                                    Undifferen...
Frequency                                        Commoditise                                                    Undifferen...
Frequency            Innovation   Custom built   Product   Commodity
Utility services
Ecosystem
Innovation
Identify future patterns
Next Wave
Innovate     Leverage          Commoditise
Hadoop         EC2, S3, SQS ... Copy              Amazon
20% WorkSummer of Code             Google Labs      Acquisition                     APIs                            Google
CRM Ideas            App Exchange   Acquisition                    APIs &                    Platform                     ...
New models of Management
Summary
Ubiquity                                   Utility Services                                      Commodity                ...
UtilityUbiquity             Software             Platform           Services           Infrastructure                     ...
Utility Services           Economies of scale                 of the NationalUbiquity                                     ...
TransitionUbiquity           Confusion           Governance           Trust           Security           Transparency     ...
Ubiquity             Market                   ure                     ss                 Pre           You                ...
hang on ...theres more
Electricity                                          AccountsUbiquity                             Infrastructure          ...
Frequency            Innovation   Custom built   Product   Commodity
Frequency                         Commoditisation                                Co-Evolution                          Use...
Frequency               Lists                    Siebel SIS ’94   Customer DBM ’80s                                    Sal...
Frequency            Chaotic           Transition           Linear             Innovation   Custom built   Product   Commo...
Frequency                                              6 Sigma             Reduce            Deviation            Innovati...
Frequency                                        VS              Survival                            Survival             ...
Innovate     Leverage          Commoditise
I work for Government, wedont compete with      anyone.
Frequency                                        A                                               B            Innovation  ...
Sometimes disruptiveFrequency                                        A                                               B    ...
Sometimes disruptiveFrequency                                        Excavation                                Cable      ...
Frequency                                                  Utility                                                  Servic...
Always disruptiveFrequency                                                  Utility                                       ...
Always disruptiveFrequency                                                   Utility                                      ...
Always disruptiveFrequency                                                   Utility                                      ...
Always disruptiveFrequency                                                   Utility                                      ...
"Success is a lousyteacher. It makes you think you know what     youre doing."             Bill Gates
Frequency                         Feature            Innovation   Custom built   Product   Commodity
Frequency                         Proprietary                          Feature            Innovation    Custom built   Pro...
Frequency                         Proprietary                          Feature                  Service            Innovat...
Frequency                         Proprietary                Open                          Feature                  Servic...
To COMPETE I  lose my high profit revenue stream andgive away my code?
Frequency                         Mass Communication            Innovation    Custom built   Product   Commodity
Frequency                         Mass Communication                                   Printing                   Distribu...
Frequency                         Mass Communication                                   Printing                   Distribu...
Frequency                         Mass Communication                                                   Digitsation        ...
Frequency                                          Software                                           Platform            ...
Frequency                                          Software                                           Platform            ...
Frequency                                          Software                                           Platform            ...
Frequency                                          Software                                           Platform            ...
Frequency                                          Software                                           Platform            ...
Frequency                                          Software            $7.5 Bn                        Platform            ...
€763 billion ofcumulative economic  benefits over theperiod 2010 to 2015  CEBR, Cloud Dividend, Dec10
"We dont want the next  Intel or Google to becreated in China or India"               President Obama
I work for Government, wedont compete with      anyone.
Thatscheating
Changing Tactics ...              Chaotic                          Transition                                       Linear...
Changing Tactics ...              Chaotic                          Transition                                       Linear...
Changing Tactics ...              Chaotic                      Transition              LinearFrequency                    ...
Changing Tactics ...              Chaotic               Transition              LinearFrequency                           ...
Changing Tactics ...              Chaotic                  Transition              LinearFrequency                   Reven...
Changing Tactics ...              Chaotic                    Transition                 LinearFrequency                   ...
Changing Tactics ...              Chaotic                    Transition              LinearFrequency                   Rev...
Changing Tactics ...              Chaotic                    Transition                    LinearFrequency                ...
Changing Tactics ...              Chaotic                       Transition              LinearFrequency                   ...
Changing Tactics ...              Chaotic                       Transition              LinearFrequency                   ...
Changing Tactics ...              Chaotic                       Transition                      LinearFrequency           ...
Changing Tactics ...              Chaotic                       Transition              LinearFrequency                   ...
Ooops,bugger.
Changing Tactics ...              Chaotic                       Transition              LinearFrequency                   ...
Changing Tactics ...              Chaotic                       Transition                       LinearFrequency          ...
To SURVIVE Ineed to lose my highprofit revenue stream  and give away my        code?
Note 1: Cloud computing is still an evolving paradigm. Its definitions, use cases, underlying technologies, issues, risks, ...
Technology
Gotcha!
The LEF focuses on six key interrelated researchdomains              1                       2                          3 ...
@swardleyLeading Edge Forum               March 2011
Situation Normal, Everything Must Change
Situation Normal, Everything Must Change
Situation Normal, Everything Must Change
Situation Normal, Everything Must Change
Situation Normal, Everything Must Change
Situation Normal, Everything Must Change
Situation Normal, Everything Must Change
Situation Normal, Everything Must Change
Situation Normal, Everything Must Change
Situation Normal, Everything Must Change
Situation Normal, Everything Must Change
Situation Normal, Everything Must Change
Situation Normal, Everything Must Change
Situation Normal, Everything Must Change
Situation Normal, Everything Must Change
Situation Normal, Everything Must Change
Situation Normal, Everything Must Change
Situation Normal, Everything Must Change
Situation Normal, Everything Must Change
Situation Normal, Everything Must Change
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Situation Normal, Everything Must Change

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Opening keynote by Simon Wardley at the Eduserv Symposium 2011 - Virtualisation and the Cloud.

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Situation Normal, Everything Must Change

  1. 1. Situation Normal, Everything Must ChangeLeading Edge Forum March 2011
  2. 2. The LEF focuses on six key interrelated researchdomains 1 2 3 Business/IT Business/IT Relationship The Consumerization of Co-evolution Management IT How are business and How can Enterprise IT How are consumer IT changing each other? add more value to the technologies and the organization? Internet affecting both the firm and central IT? 4 5 6 Organizing IT for the The Changing Nature of Business Future Work Sustainability What will the retained How will management, How can IT be used central IT function employees and the to help make firms look like? culture of the firm need more to change? environmentally friendly? Leading Edge Forum March 2011
  3. 3. Kerching!
  4. 4. DANGER!Will Robinson DANGER!
  5. 5. Pain
  6. 6. Pain No. Slides
  7. 7. Pain 20 slides OK No. Slides
  8. 8. 344 slides SeverePain risk of harm OK No. Slides
  9. 9. CloudComputing?
  10. 10. Note 1: Cloud computing is still an evolving paradigm. Its definitions, use cases, underlying technologies, issues, risks, and benefits will be refined in a spirited debate by the public andprivate sectors. These definitions, attributes, and characteristics will evolve and change over time.Note 2: The cloud computing industry represents a large ecosystem of many models, vendors, and market niches. This definition attempts to encompass all of the various cloud approaches.Definition of Cloud Computing:Cloud computing is a model for enabling convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, andservices) that can be rapidly provisioned and released with minimal management effort or service provider interaction. This cloud model promotes availability and is composed of five essentialcharacteristics, three service models, and four deployment models.Essential Characteristics:On-demand self-service. A consumer can unilaterally provision computing capabilities, such as server time and network storage, as needed automatically without requiring human interactionwith each service’s provider.Broad network access. Capabilities are available over the network and accessed through standard mechanisms that promote use by heterogeneous thin or thick client platforms (e.g., mobilephones, laptops, and PDAs).Resource pooling. The provider’s computing resources are pooled to serve multiple consumers using a multi-tenant model, with different physical and virtual resources dynamically assignedand reassigned according to consumer demand. There is a sense of location independence in that the customer generally has no control or knowledge over the exact location of the providedresources but may be able to specify location at a higher level of abstraction (e.g., country, state, or datacenter). Examples of resources include storage, processing, memory, networkbandwidth, and virtual machines.Rapid elasticity. Capabilities can be rapidly and elastically provisioned, in some cases automatically, to quickly scale out and rapidly released to quickly scale in. To the consumer, thecapabilities available for provisioning often appear to be unlimited and can be purchased in any quantity at any time.Measured Service. Cloud systems automatically control and optimize resource use by leveraging a metering capability at some level of abstraction appropriate to the type of service (e.g.,storage, processing, bandwidth, and active user accounts). Resource usage can be monitored, controlled, and reported providing transparency for both the provider and consumer of theutilized service.Service Models:Cloud Software as a Service (SaaS). The capability provided to the consumer is to use the provider’s applications running on a cloud infrastructure. The applications are accessible fromvarious 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 includingnetwork, 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 or acquired applications created using programminglanguages and tools supported by the provider. The consumer does not manage or control the underlying cloud infrastructure including network, servers, operating systems, or storage, buthas 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 theconsumer 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 infrastructurebut has control over operating systems, storage, deployed applications, and possibly limited control of select networking components (e.g., host firewalls).Deployment Models:Private cloud. The cloud infrastructure is operated solely for an organization. It may be managed by the organization or a third party and may exist on premise or off premise.Community cloud. The cloud infrastructure is shared by several organizations and supports a specific community that has shared concerns (e.g., mission, security requirements, policy, andcompliance considerations). It may be managed by the organizations or a third party and may exist on premise or off premise.Public cloud. The cloud infrastructure is made available to the general public or a large industry group and is owned by an organization selling cloud services.Hybrid cloud. The cloud infrastructure is a composition of two or more clouds (private, community, or public) that remain unique entities but are bound together by standardized orproprietary technology that enables data and application portability (e.g., cloud bursting for load-balancing between clouds).Note: Cloud software takes full advantage of the cloud paradigmby being service oriented with a focus on statelessness, low coupling, modularity, and semantic interoperability.
  11. 11. Note 1: Cloud computing is still an evolving paradigm. Its definitions, use cases, underlying technologies, issues, risks, and benefits will be refined in a spirited debate by the public andprivate sectors. These definitions, attributes, and characteristics will evolve and change over time.Note 2: The cloud computing industry represents a large ecosystem of many models, vendors, and market niches. This definition attempts to encompass all of the various cloud approaches.Definition of Cloud Computing:Cloud computing is a model for enabling convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, andservices) that can be rapidly provisioned and released with minimal management effort or service provider interaction. This cloud model promotes availability and is composed of five essentialcharacteristics, three service models, and four deployment models.Essential Characteristics:On-demand self-service. A consumer can unilaterally provision computing capabilities, such as server time and network storage, as needed automatically without requiring human interaction Cloud computing iswith each service’s provider.Broad network access. Capabilities are available over the network and accessed through standard mechanisms that promote use by heterogeneous thin or thick client platforms (e.g., mobilephones, laptops, and PDAs).Resource pooling. The provider’s computing resources are pooled to serve multiple consumers using a multi-tenant model, with different physical and virtual resources dynamically assignedand reassigned according to consumer demand. There is a sense of location independence in that the customer generally has no control or knowledge over the exact location of the providedresources but may be able to specify location at a higher level of abstraction (e.g., country, state, or datacenter). Examples of resources include storage, processing, memory, networkbandwidth, and virtual machines. an evolvingRapid elasticity. Capabilities can be rapidly and elastically provisioned, in some cases automatically, to quickly scale out and rapidly released to quickly scale in. To the consumer, thecapabilities available for provisioning often appear to be unlimited and can be purchased in any quantity at any time.Measured Service. Cloud systems automatically control and optimize resource use by leveraging a metering capability at some level of abstraction appropriate to the type of service (e.g.,storage, processing, bandwidth, and active user accounts). Resource usage can be monitored, controlled, and reported providing transparency for both the provider and consumer of theutilized service.Service Models: paradigm.Cloud Software as a Service (SaaS). The capability provided to the consumer is to use the provider’s applications running on a cloud infrastructure. The applications are accessible fromvarious 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 includingnetwork, 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 or acquired applications created using programminglanguages and tools supported by the provider. The consumer does not manage or control the underlying cloud infrastructure including network, servers, operating systems, or storage, buthas 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 theconsumer 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 infrastructurebut has control over operating systems, storage, deployed applications, and possibly limited control of select networking components (e.g., host firewalls).Deployment Models:Private cloud. The cloud infrastructure is operated solely for an organization. It may be managed by the organization or a third party and may exist on premise or off premise.Community cloud. The cloud infrastructure is shared by several organizations and supports a specific community that has shared concerns (e.g., mission, security requirements, policy, andcompliance considerations). It may be managed by the organizations or a third party and may exist on premise or off premise.Public cloud. The cloud infrastructure is made available to the general public or a large industry group and is owned by an organization selling cloud services.Hybrid cloud. The cloud infrastructure is a composition of two or more clouds (private, community, or public) that remain unique entities but are bound together by standardized orproprietary technology that enables data and application portability (e.g., cloud bursting for load-balancing between clouds).Note: Cloud software takes full advantage of the cloud paradigmby being service oriented with a focus on statelessness, low coupling, modularity, and semantic interoperability.
  12. 12. We don’t knowwhat “cloud” is yet.
  13. 13. “The real thing to do today is to capture,what are the dimensions of the thing that literally, I will tell you, we’re betting our company on, and I think pretty much everybody in the technology industry is betting their companies on” Steve Ballmer
  14. 14. We don’t knowwhat “cloud” is yet.
  15. 15. We don’t knowwhat “cloud” is yet. bet your company on it
  16. 16. We don’t know what “cloud” is yet.everybody bet your else is. company on it
  17. 17. “open up exciting new prospects for theemployment of computers in ways and on a scale that would have seemed purefantasy only five years ago”
  18. 18. “The challenge of the computer utility” Douglas Parkhill 1966
  19. 19. http://ftp.arl.army.mil/ftp/historic-computers/png/brlescII1.png
  20. 20. online, utility based ...
  21. 21. online, utility based ...private, public, community & government ...
  22. 22. online, utility based ...private, public, community & government ... hardware to applications
  23. 23. Note 1: Cloud computing is still an evolving paradigm. Its definitions, use cases, underlying technologies, issues, risks, and benefits will be refined in a spirited debate by the public andprivate sectors. These definitions, attributes, and characteristics will evolve and change over time.Note 2: The cloud computing industry represents a large ecosystem of many models, vendors, and market niches. This definition attempts to encompass all of the various cloud approaches.Definition of Cloud Computing:Cloud computing is a model for enabling convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, andservices) that can be rapidly provisioned and released with minimal management effort or service provider interaction. This cloud model promotes availability and is composed of five essentialcharacteristics, three service models, and four deployment models.Essential Characteristics:On-demand self-service. A consumer can unilaterally provision computing capabilities, such as server time and network storage, as needed automatically without requiring human interactionwith each service’s provider.Broad network access. Capabilities are available over the network and accessed through standard mechanisms that promote use by heterogeneous thin or thick client platforms (e.g., mobilephones, laptops, and PDAs).Resource pooling. The provider’s computing resources are pooled to serve multiple consumers using a multi-tenant model, with different physical and virtual resources dynamically assignedand reassigned according to consumer demand. There is a sense of location independence in that the customer generally has no control or knowledge over the exact location of the provided +44 yearsresources but may be able to specify location at a higher level of abstraction (e.g., country, state, or datacenter). Examples of resources include storage, processing, memory, networkbandwidth, and virtual machines.Rapid elasticity. Capabilities can be rapidly and elastically provisioned, in some cases automatically, to quickly scale out and rapidly released to quickly scale in. To the consumer, thecapabilities available for provisioning often appear to be unlimited and can be purchased in any quantity at any time.Measured Service. Cloud systems automatically control and optimize resource use by leveraging a metering capability at some level of abstraction appropriate to the type of service (e.g.,storage, processing, bandwidth, and active user accounts). Resource usage can be monitored, controlled, and reported providing transparency for both the provider and consumer of theutilized service.Service Models:Cloud Software as a Service (SaaS). The capability provided to the consumer is to use the provider’s applications running on a cloud infrastructure. The applications are accessible fromvarious 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 includingnetwork, 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 or acquired applications created using programminglanguages and tools supported by the provider. The consumer does not manage or control the underlying cloud infrastructure including network, servers, operating systems, or storage, buthas 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 theconsumer 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 infrastructurebut has control over operating systems, storage, deployed applications, and possibly limited control of select networking components (e.g., host firewalls).Deployment Models:Private cloud. The cloud infrastructure is operated solely for an organization. It may be managed by the organization or a third party and may exist on premise or off premise.Community cloud. The cloud infrastructure is shared by several organizations and supports a specific community that has shared concerns (e.g., mission, security requirements, policy, andcompliance considerations). It may be managed by the organizations or a third party and may exist on premise or off premise.Public cloud. The cloud infrastructure is made available to the general public or a large industry group and is owned by an organization selling cloud services.Hybrid cloud. The cloud infrastructure is a composition of two or more clouds (private, community, or public) that remain unique entities but are bound together by standardized orproprietary technology that enables data and application portability (e.g., cloud bursting for load-balancing between clouds).Note: Cloud software takes full advantage of the cloud paradigmby being service oriented with a focus on statelessness, low coupling, modularity, and semantic interoperability.
  24. 24. Evolution
  25. 25. EvolutionWhy Now?
  26. 26. Evolution Why Now?Benefits & Risk
  27. 27. Ubiquity
  28. 28. Ubiquity Certainty
  29. 29. Ubiquity Certainty
  30. 30. Ubiquity Certainty
  31. 31. Ubiquity Innovation Certainty
  32. 32. Ubiquity Commodity Innovation Certainty
  33. 33. Ubiquity Innovation of early lists, 1980. Certainty
  34. 34. Ubiquity Custom built, DB Marketing Mid 80s Certainty
  35. 35. Ubiquity Product Early 90s Certainty
  36. 36. Utility ServicesUbiquity of Salesforce Certainty
  37. 37. Ubiquity Innovation of Z3, 1941 Certainty
  38. 38. Ubiquity Custom Built LEO, 1946 Certainty
  39. 39. Ubiquity Products IBM 650, 1954 Certainty
  40. 40. Ubiquity Services Tymshare, 1966 Certainty
  41. 41. Ubiquity Commodity Hardware Certainty
  42. 42. Utility ServicesUbiquity of Amazon EC2 Certainty
  43. 43. Ubiquity Innovation of W. H. Wollaston, 1821 Certainty
  44. 44. Ubiquity Early Products, Hippolyte Pixii, 1830s Certainty
  45. 45. Utility ServicesUbiquity of the National Grid Certainty
  46. 46. Electricity AccountsUbiquity Infrastructure Payroll CRM HR systems ERP Web Portal Search Engines Enterprise 2.0 Information market VRM Certainty
  47. 47. Ubiquity Commodity Product Custom built Innovation Certainty
  48. 48. Ubiquity Utility Services Commodity Product Services Custom built Innovation Certainty
  49. 49. Ubiquity io n at it is o d m m Co Certainty
  50. 50. Ubiquity Demand (user competition) Certainty
  51. 51. Ubiquity Demand (user competition) Improvement (supply competition) Certainty
  52. 52. Ubiquity Demand (user competition) io n at it is o d m m Co Improvement (supply competition) Certainty
  53. 53. Ubiquity Certainty
  54. 54. Ubiquity Certainty
  55. 55. Ubiquity Widespread (Demand) Feature Complete (Improvement) Certainty
  56. 56. Ubiquity Utility Services Certainty
  57. 57. ApplicationDatabase Framework Messaging Operating System Virtualisation CPU Memory I/O
  58. 58. Application Framework MessagingOperating System Virtualisation Memory I/O
  59. 59. Application Framework MessagingOperating System Virtualisation Infrastructure Memory I/O
  60. 60. Application Framework Messaging PlatformOperating System Virtualisation Infrastructure Memory I/O
  61. 61. Application Software Framework Messaging PlatformOperating System Virtualisation Infrastructure Memory I/O
  62. 62. UtilityUbiquity Software Platform Services Infrastructure ... as a Product Certainty
  63. 63. “The challenge of the computer utility” Douglas Parkhill 1966
  64. 64. EvolutionWhy now?
  65. 65. Ubiquity Utility Services Product Custom built Certainty
  66. 66. Ubiquity Product Custom built Certainty
  67. 67. http://www.flickr.com/photos/21734563@N04/2179722280/
  68. 68. Concept
  69. 69. Concept Suitability
  70. 70. Concept Technology Suitability
  71. 71. AttitudeConcept Technology Suitability
  72. 72. Ubiquity Factors Certainty
  73. 73. Ubiquity Factors Certainty
  74. 74. Concept
  75. 75. Concept Suitability
  76. 76. Concept Technology Suitability
  77. 77. AttitudeConcept ? Technology Suitability
  78. 78. P. Strassmann
  79. 79. Ubiquity Certainty
  80. 80. N. Carr
  81. 81. Ubiquity Diminishing Strategic Value Certainty
  82. 82. Ubiquity Competitive Advantage Certainty
  83. 83. Ubiquity Cost of Doing Business Certainty
  84. 84. Ubiquity Certainty
  85. 85. Payroll HR Systems CRM ERP Sales Automation InfrastructureFinance & Accounting
  86. 86. Ubiquity HR Payroll Certainty
  87. 87. Ubiquity Standardised Service! Certainty
  88. 88. Ubiquity Standardised Service! Marketplace Certainty
  89. 89. AttitudeConcept Technology Suitability
  90. 90. Ubiquity Factors Certainty
  91. 91. Ubiquity Factors BENEFITS vs RISKS Certainty
  92. 92. Recap ...
  93. 93. Ubiquity Utility Services Commodity Product Services Custom built Innovation Certainty
  94. 94. Ubiquity Demand (user competition) io n at it is o d m m Co Improvement (supply competition) Certainty
  95. 95. UtilityUbiquity Software Platform Services Infrastructure ... as a Product Certainty
  96. 96. AttitudeConcept Technology Suitability
  97. 97. Evolution Why now?Benefits & Risk
  98. 98. Ubiquity Early Utility Westinghouse, 1890s Product Hippolyte Pixii, 1830s Certainty
  99. 99. Ubiquity Economies of scale (volume operations) Certainty
  100. 100. Ubiquity Economies of scale (volume operations) Focus on core (outsource) Certainty
  101. 101. Ubiquity Economies of scale (volume operations) Focus on core (outsource) Pay per use (utility) Certainty
  102. 102. Ubiquity efficiency Certainty
  103. 103. Cloud will reduce your IT spend. Kerching!
  104. 104. Ubiquity Agility (Self Service) Certainty
  105. 105. Previous Time (mins) Newserver 72,00064 node 130,000 cluster
  106. 106. Previous Cloud Time Time (mins) (mins) Newserver 72,000 764 node 130,000 15 cluster
  107. 107. Ubiquity Agility (Self Service) Opportunity Certainty
  108. 108. Ubiquity Agility (Self Service) Opportunity Innovation (creative destruction, componentisation) Certainty
  109. 109. The fundamental impulse that sets and keeps the capitalist engine in motion comes from the new consumers, goods, the new methods of production or transportation, the new markets, the new forms of industrial organization that capitalist enterprise creates.Joseph A. Schumpeter (1883 - 1950)
  110. 110. The fundamental impulse that sets and keeps the capitalist engine in motion comes from the new consumers, goods, the new methods of production or transportation, the new markets, the new forms of industrial organization that capitalist enterprise creates.Joseph A. Schumpeter (1883 - 1950)
  111. 111. Creative DestructionJoseph A. Schumpeter (1883 - 1950)
  112. 112. Ubiquity lu e Va in g d E ro Certainty
  113. 113. Ubiquity lu e Va in g d E ro Enables Innovation Certainty
  114. 114. Ubiquity Internet Electricity Hardware Certainty
  115. 115. Ubiquity Internet Electricity Hardware Enable Innovation Search Certainty
  116. 116. Theory of Hierarchy ComponentisationHerbert A. Simon (1916 - 2001)
  117. 117. Rate of evolution of a system is dependant upon the organisation of its subsystems.Herbert A. Simon (1916 - 2001)
  118. 118. Application
  119. 119. ApplicationDatabase Framework Messaging
  120. 120. ApplicationDatabase Framework Messaging Operating System Virtualisation CPU Memory I/O
  121. 121. ApplicationDatabase Framework Messaging Operating System Virtualisation CPU Memory I/O
  122. 122. Application Orders of MagnitudeCPU
  123. 123. Ubiquity Software Platform Infrastructure Accelerated Innovation Certainty
  124. 124. Henry Maudslay (1771 - 1831)
  125. 125. Ubiquity Agility (Self Service) Opportunity Innovation (creative destruction, componentisation) Certainty
  126. 126. Ubiquity consumption Certainty
  127. 127. Ubiquity efficiency consumption Certainty
  128. 128. “Jevons Paradox” Technological progress that increases the efficiency with which a resource is used, tends to increase the rate of consumption of that resource.William Stanley Jevons, 1865
  129. 129. Ray Kurzweil
  130. 130. To thecloud ...
  131. 131. Risks?
  132. 132. Ubiquity Certainty
  133. 133. Ubiquity Disruption Relationships Skills Political Capital Investment Certainty
  134. 134. TransitionUbiquity Confusion Governance Trust Security Transparency Certainty
  135. 135. Ubiquity Outsourcing Suitability Competition Lock-in Second Source Control Certainty
  136. 136. Ubiquity Standardised Service! Marketplace Certainty
  137. 137. Ubiquity Outsourcing Risks Marketplace Certainty
  138. 138. ManyProviders
  139. 139. Open APIs & Data Formats
  140. 140. SemanticInterop.
  141. 141. FacebookOpen Compute (DC)
  142. 142. NASA & Rackspace OpenStack (IaaS) Facebook Open Compute (DC)
  143. 143. VMwares Cloud Foundry (PaaS)NASA & Rackspace OpenStack (IaaS) Facebook Open Compute (DC)
  144. 144. Ubiquity Hybrid Certainty
  145. 145. Ubiquity Transitional Risks Security of supply, governance, trust ... Hybrid Certainty
  146. 146. Ubiquity Cost Economies of Scale, Focus ... Hybrid Certainty
  147. 147. Be carefulwhat youre building!
  148. 148. Legacy?
  149. 149. Ubiquity Infrastructure Certainty
  150. 150. Ubiquity Scale-Up Certainty
  151. 151. Ubiquity Scale-Up N+1 models Certainty
  152. 152. Ubiquity Legacy Scale-Up N+1 models Certainty
  153. 153. Need better hardware
  154. 154. Ubiquity Legacy Scale-Up N+1 models High Cost Specialised Certainty
  155. 155. Ubiquity Certainty
  156. 156. Ubiquity Scale-Out Certainty
  157. 157. Ubiquity Scale-Out Certainty
  158. 158. Design forUbiquity Failure Scale-Out Certainty
  159. 159. Cloud Design forUbiquity Failure Scale-Out Certainty
  160. 160. Cloud Design forUbiquity Low Cost Failure Commodity Scale-Out Certainty
  161. 161. Need better software
  162. 162. Ubiquity Legacy Scale-Up N+1 models High Cost Specialised Certainty
  163. 163. Ubiquity Low Cost Commodity Legacy Scale-Up N+1 models Certainty
  164. 164. The end of cloudis nigh ...
  165. 165. Shouldnt ourarchitecture evolve as well?
  166. 166. Burnhim! Heretic
  167. 167. Fancy ahighly resilient cloud?
  168. 168. Ubiquity Low Cost Commodity Legacy Scale-Up N+1 models Certainty
  169. 169. Ubiquity Called Legacy "Cloud" Scale-Up N+1 models High Cost Specialised Certainty
  170. 170. Kerching ...
  171. 171. You haveno choice ...
  172. 172. Ubiquity Market You Certainty
  173. 173. Ubiquity Market Competitive Gap Pay per use Focus on core Economies of scale You Speed to market Certainty
  174. 174. Ubiquity Market ure ss Pre You Certainty
  175. 175. “Red Queen Hypothesis” The need to constantly evolve in order to stand still relative to a surrounding ecosystemProf. Van Valen
  176. 176. Muhahaha
  177. 177. Recap ...
  178. 178. Ubiquity Utility Services Commodity Product Services Custom built Innovation Certainty
  179. 179. UtilityUbiquity Software Platform Services Infrastructure ... as a Product Certainty
  180. 180. Utility Services Economies of scale of the NationalUbiquity Grid (volume operations) Focus on core (outsource) Pay per use Early Products, (utility) Hippolyte Pixii, 1830s Agility (Self Service) Certainty
  181. 181. TransitionUbiquity Confusion Governance Trust Security Transparency Outsourcing Suitability Disruption Relationships Competition Skills Lock-in Political Capital Second Source Investment Control Certainty
  182. 182. Ubiquity Transitional Risks Security of supply, governance, trust ... Hybrid Certainty
  183. 183. Ubiquity Market ure ss Pre You Prof. Van Valen “Red Queen Hypothesis” Certainty
  184. 184. “Jevons Paradox” Technological progress that increases the efficiency with which a resource is used, tends to increase the rate of consumption of that resource. consumptionefficiency
  185. 185. Ubiquity +Innovation tion uc n str io de isat ti ve ent ea pon cr com Joseph A. Schumpeter Herbert A. Simon (1883 - 1950) (1916 - 2001) Certainty
  186. 186. hang on ...theres more
  187. 187. DANGER!Complexity DANGER!
  188. 188. Shape
  189. 189. ShapeObservations
  190. 190. ShapeObservations Pattern
  191. 191. Electricity AccountsUbiquity Infrastructure Payroll CRM HR systems ERP Web Portal Search Engines Enterprise 2.0 Information market VRM Certainty
  192. 192. Electricity AccountsUbiquity Infrastructure Payroll CRM HR systems ERP Web Portal Search Engines Enterprise 2.0 Information market VRM Certainty
  193. 193. Lifecycle
  194. 194. Innovation Custom built Product Commodity
  195. 195. Frequency Innovation Custom built Product Commodity
  196. 196. Frequency Innovation Custom built Product Commodity
  197. 197. Frequency Innovation Custom built Product Commodity
  198. 198. Frequency Enterprise 2.0 Information market VRM Innovation Custom built Product Commodity
  199. 199. Frequency Dynamic Deviation Uncertain Emergent Serendipity Worth Innovation Custom built Product Commodity
  200. 200. Frequency Chaotic Innovation Custom built Product Commodity
  201. 201. Frequency Innovation Custom built Product Commodity
  202. 202. Frequency Electricity Infrastructure Payroll CRM HR systems Innovation Custom built Product Commodity
  203. 203. Frequency Repeatable Standard Known Predictable Procedural CODB Innovation Custom built Product Commodity
  204. 204. Frequency Linear Innovation Custom built Product Commodity
  205. 205. Frequency Chaotic Linear Innovation Custom built Product Commodity
  206. 206. Frequency Transition Innovation Custom built Product Commodity
  207. 207. Frequency Commoditisation Co-Evolution User & Supply Competition Innovation Custom built Product Commodity
  208. 208. Frequency Commoditisation Co-Evolution User & Supply Competition Innovate Creative Destruction Componentisation Innovation Custom built Product Commodity
  209. 209. Who cares?
  210. 210. Frequency Lists Siebel SIS ’94 Customer DBM ’80s Salesforce ’02 Centric ‘70s Innovation Custom built Product Commodity
  211. 211. Whats thebest method of project management?
  212. 212. Use Six Sigma!
  213. 213. Frequency Innovation Custom built Product Commodity
  214. 214. Frequency 6 Sigma Innovation Custom built Product Commodity
  215. 215. Frequency 6 Sigma Reduce Deviation Innovation Custom built Product Commodity
  216. 216. Frequency 6 Sigma Innovation Custom built Product Commodity
  217. 217. Frequency 6 Sigma Reduce Deviation Innovation Custom built Product Commodity
  218. 218. Use Agile!
  219. 219. Frequency Agile Encourages Deviation Innovation Custom built Product Commodity
  220. 220. Frequency Agile Innovation Custom built Product Commodity
  221. 221. Frequency Agile Encourages Deviation Innovation Custom built Product Commodity
  222. 222. Frequency No Magic Bullet Innovation Custom built Product Commodity
  223. 223. Frequency Survival Tomorrow Innovation Custom built Product Commodity
  224. 224. Frequency Survival Today Innovation Custom built Product Commodity
  225. 225. Frequency VS Survival Survival Tomorrow Today Innovation Custom built Product Commodity
  226. 226. Innovation Paradox Survival today requires ‘coherence, coordination and stability’. Survival tomorrow requires thereplacement of these erstwhile virtues. Salaman & Storey
  227. 227. http://www.flickr.com/photos/rednuht/479370088
  228. 228. Frequency Innovation Custom built Product Commodity
  229. 229. Frequency Innovation Custom built Product Commodity
  230. 230. Frequency Dynamic Deviation Uncertain Emergent Serendipity Worth Innovation Custom built Product Commodity
  231. 231. Frequency Dynamic Networked Deviation Uncertain Emergent Serendipity Worth Innovation Custom built Product Commodity
  232. 232. Frequency Networked Innovation Custom built Product Commodity
  233. 233. Frequency Networked Innovation Custom built Product Commodity
  234. 234. Frequency Hierarchical Innovation Custom built Product Commodity
  235. 235. Frequency 1. One size fits all Innovation Custom built Product Commodity
  236. 236. Frequency 1. One size fits all 2. But it worked for them? Innovation Custom built Product Commodity
  237. 237. Frequency 1. One size fits all. 2. But it worked for them? 3. Outsourcing failures. Innovation Custom built Product Commodity
  238. 238. Frequency 1. One size fits all 2. But it worked for them? 3. Outsourcing failures. 4. Business Alignment. Innovation Custom built Product Commodity
  239. 239. Frequency 1. One size fits all 2. But it worked for them? 3. Outsourcing failures. 4. Business Alignment. 5. Innovation vs Efficiency. Innovation Custom built Product Commodity
  240. 240. Frequency 1. One size fits all 2. But it worked for them? 3. Outsourcing failures. 4. Business Alignment. 5. Innovation vs Efficiency. 6. Management Yo-Yos. Innovation Custom built Product Commodity
  241. 241. We suck Same here
  242. 242. ShapeObservations Pattern
  243. 243. Ubiquity +Innovation tion uc n str io de isat ti ve ent ea pon cr com Joseph A. Schumpeter Herbert A. Simon (1883 - 1950) (1916 - 2001) Certainty
  244. 244. Frequency Commoditise Undifferentiated to Utility Services Innovation Custom built Product Commodity
  245. 245. Frequency Commoditise Undifferentiated Innovate to Utility Services Componentisation Innovation Custom built Product Commodity
  246. 246. Frequency Commoditise Undifferentiated Innovate to Utility Services Componentisation Worth ∝ 1 Certainty Innovation Custom built Product Commodity
  247. 247. Frequency Commoditise Undifferentiated Innovate to Utility Services Componentisation Adoption Innovation Custom built Product Commodity
  248. 248. Frequency Commoditise Undifferentiated Innovate to Utility Services Componentisation Leverage Ecosystem (Size) Innovation Custom built Product Commodity
  249. 249. Frequency Innovation Custom built Product Commodity
  250. 250. Utility services
  251. 251. Ecosystem
  252. 252. Innovation
  253. 253. Identify future patterns
  254. 254. Next Wave
  255. 255. Innovate Leverage Commoditise
  256. 256. Hadoop EC2, S3, SQS ... Copy Amazon
  257. 257. 20% WorkSummer of Code Google Labs Acquisition APIs Google
  258. 258. CRM Ideas App Exchange Acquisition APIs & Platform Salesforce
  259. 259. New models of Management
  260. 260. Summary
  261. 261. Ubiquity Utility Services Commodity Product Services Custom built Innovation Certainty
  262. 262. UtilityUbiquity Software Platform Services Infrastructure ... as a Product Certainty
  263. 263. Utility Services Economies of scale of the NationalUbiquity Grid (volume operations) Focus on core (outsource) Pay per use Early Products, (utility) Hippolyte Pixii, 1830s Agility (Self Service) Certainty
  264. 264. TransitionUbiquity Confusion Governance Trust Security Transparency Outsourcing Suitability Disruption Relationships Competition Skills Lock-in Political Capital Second Source Investment Control Certainty
  265. 265. Ubiquity Market ure ss Pre You Prof. Van Valen “Red Queen Hypothesis” Certainty
  266. 266. hang on ...theres more
  267. 267. Electricity AccountsUbiquity Infrastructure Payroll CRM HR systems ERP Web Portal Search Engines Enterprise 2.0 Information market VRM Certainty
  268. 268. Frequency Innovation Custom built Product Commodity
  269. 269. Frequency Commoditisation Co-Evolution User & Supply Competition Innovate Creative Destruction Componentisation Innovation Custom built Product Commodity
  270. 270. Frequency Lists Siebel SIS ’94 Customer DBM ’80s Salesforce ’02 Centric ‘70s Innovation Custom built Product Commodity
  271. 271. Frequency Chaotic Transition Linear Innovation Custom built Product Commodity
  272. 272. Frequency 6 Sigma Reduce Deviation Innovation Custom built Product Commodity
  273. 273. Frequency VS Survival Survival Tomorrow Today Innovation Custom built Product Commodity
  274. 274. Innovate Leverage Commoditise
  275. 275. I work for Government, wedont compete with anyone.
  276. 276. Frequency A B Innovation Custom built Product Commodity
  277. 277. Sometimes disruptiveFrequency A B Innovation Custom built Product Commodity
  278. 278. Sometimes disruptiveFrequency Excavation Cable Hydraulic Innovation Custom built Product Commodity
  279. 279. Frequency Utility Service Innovation Custom built Product Commodity
  280. 280. Always disruptiveFrequency Utility Service Innovation Custom built Product Commodity
  281. 281. Always disruptiveFrequency Utility Service Vendor Revenue Innovation Custom built Product Commodity
  282. 282. Always disruptiveFrequency Utility Service Vendor Revenue Innovation Custom built Product Commodity
  283. 283. Always disruptiveFrequency Utility Service Vendor Amazon Revenue Innovation Custom built Product Commodity
  284. 284. "Success is a lousyteacher. It makes you think you know what youre doing." Bill Gates
  285. 285. Frequency Feature Innovation Custom built Product Commodity
  286. 286. Frequency Proprietary Feature Innovation Custom built Product Commodity
  287. 287. Frequency Proprietary Feature Service Innovation Custom built Product Commodity
  288. 288. Frequency Proprietary Open Feature Service Innovation Custom built Product Commodity
  289. 289. To COMPETE I lose my high profit revenue stream andgive away my code?
  290. 290. Frequency Mass Communication Innovation Custom built Product Commodity
  291. 291. Frequency Mass Communication Printing Distribution Innovation Custom built Product Commodity
  292. 292. Frequency Mass Communication Printing Distribution Barriers to Entry Innovation Custom built Product Commodity
  293. 293. Frequency Mass Communication Digitsation Internet Innovation Custom built Product Commodity
  294. 294. Frequency Software Platform Do more, faster Infrastructure Innovation Custom built Product Commodity
  295. 295. Frequency Software Platform Do more, faster Infrastructure Innovate Innovation Custom built Product Commodity
  296. 296. Frequency Software Platform Do more, faster Infrastructure Innovate Disruptive Innovation Custom built Product Commodity
  297. 297. Frequency Software Platform Do more, faster Infrastructure Innovate Disruptive Barriers Innovation Custom built Product Commodity
  298. 298. Frequency Software Platform Do more, faster Infrastructure Innovate Disruptive Barriers New Management Innovation Custom built Product Commodity
  299. 299. Frequency Software $7.5 Bn Platform Infrastructure Do more, faster Innovate Disruptive Barriers New Management Innovation Custom built Product Commodity
  300. 300. €763 billion ofcumulative economic benefits over theperiod 2010 to 2015 CEBR, Cloud Dividend, Dec10
  301. 301. "We dont want the next Intel or Google to becreated in China or India" President Obama
  302. 302. I work for Government, wedont compete with anyone.
  303. 303. Thatscheating
  304. 304. Changing Tactics ... Chaotic Transition LinearFrequency Portable Calculator music player Social Network Time keeper ID Card Camera Address book Health Monitor Phone Social Gaming GIS Radio Lifecycle Innovation Custom built Product Commodity
  305. 305. Changing Tactics ... Chaotic Transition LinearFrequency Portable Calculator music player Social Network Time keeper ID Card Camera Address book Health Monitor Phone Social Gaming GIS Radio Lifecycle Innovation Custom built Product Commodity
  306. 306. Changing Tactics ... Chaotic Transition LinearFrequency 1 Future Worth ∝ Certainty Lifecycle Innovation Custom built Product Commodity
  307. 307. Changing Tactics ... Chaotic Transition LinearFrequency CRM Lifecycle Innovation Custom built Product Commodity
  308. 308. Changing Tactics ... Chaotic Transition LinearFrequency Revenue Streams CRM Lifecycle Innovation Custom built Product Commodity
  309. 309. Changing Tactics ... Chaotic Transition LinearFrequency Revenue Streams Barriers to Entry Infrastructure Lifecycle Innovation Custom built Product Commodity
  310. 310. Changing Tactics ... Chaotic Transition LinearFrequency Revenue Streams Barriers to Entry Lifecycle Innovation Custom built Product Commodity
  311. 311. Changing Tactics ... Chaotic Transition LinearFrequency Revenue Streams Barriers to Entry Platform Lifecycle Innovation Custom built Product Commodity
  312. 312. Changing Tactics ... Chaotic Transition LinearFrequency Revenue Streams Barriers to Entry Differential Competitors Social CRM Lifecycle Innovation Custom built Product Commodity
  313. 313. Changing Tactics ... Chaotic Transition LinearFrequency Revenue Streams Barriers to Entry Differential Social CRM Lifecycle Innovation Custom built Product Commodity
  314. 314. Changing Tactics ... Chaotic Transition LinearFrequency Revenue Streams Barriers to Entry Differential "Moat" Tower Mobile Collaboration Social CRM Lifecycle Innovation Custom built Product Commodity
  315. 315. Changing Tactics ... Chaotic Transition LinearFrequency Revenue Streams Barriers to Entry Differential "Moat" Competitors Tower Lifecycle Innovation Custom built Product Commodity
  316. 316. Ooops,bugger.
  317. 317. Changing Tactics ... Chaotic Transition LinearFrequency Revenue Streams Barriers to Entry Differential Open Source Competitors Lifecycle Innovation Custom built Product Commodity
  318. 318. Changing Tactics ... Chaotic Transition LinearFrequency Revenue Streams Barriers to Entry Differential Open Source Competitors Inertia Lifecycle Innovation Custom built Product Commodity
  319. 319. To SURVIVE Ineed to lose my highprofit revenue stream and give away my code?
  320. 320. Note 1: Cloud computing is still an evolving paradigm. Its definitions, use cases, underlying technologies, issues, risks, and benefits will be refined in a spirited debate by the public andprivate sectors. These definitions, attributes, and characteristics will evolve and change over time.Note 2: The cloud computing industry represents a large ecosystem of many models, vendors, and market niches. This definition attempts to encompass all of the various cloud approaches.Definition of Cloud Computing:Cloud computing is a model for enabling convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, andservices) that can be rapidly provisioned and released with minimal management effort or service provider interaction. This cloud model promotes availability and is composed of five essentialcharacteristics, three service models, and four deployment models.Essential Characteristics:On-demand self-service. A consumer can unilaterally provision computing capabilities, such as server time and network storage, as needed automatically without requiring human interaction Cloud computing iswith each service’s provider.Broad network access. Capabilities are available over the network and accessed through standard mechanisms that promote use by heterogeneous thin or thick client platforms (e.g., mobilephones, laptops, and PDAs).Resource pooling. The provider’s computing resources are pooled to serve multiple consumers using a multi-tenant model, with different physical and virtual resources dynamically assignedand reassigned according to consumer demand. There is a sense of location independence in that the customer generally has no control or knowledge over the exact location of the providedresources but may be able to specify location at a higher level of abstraction (e.g., country, state, or datacenter). Examples of resources include storage, processing, memory, networkbandwidth, and virtual machines. an evolvingRapid elasticity. Capabilities can be rapidly and elastically provisioned, in some cases automatically, to quickly scale out and rapidly released to quickly scale in. To the consumer, thecapabilities available for provisioning often appear to be unlimited and can be purchased in any quantity at any time.Measured Service. Cloud systems automatically control and optimize resource use by leveraging a metering capability at some level of abstraction appropriate to the type of service (e.g.,storage, processing, bandwidth, and active user accounts). Resource usage can be monitored, controlled, and reported providing transparency for both the provider and consumer of theutilized service.Service Models: paradigm.Cloud Software as a Service (SaaS). The capability provided to the consumer is to use the provider’s applications running on a cloud infrastructure. The applications are accessible fromvarious 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 includingnetwork, 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 or acquired applications created using programminglanguages and tools supported by the provider. The consumer does not manage or control the underlying cloud infrastructure including network, servers, operating systems, or storage, buthas 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 theconsumer 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 infrastructurebut has control over operating systems, storage, deployed applications, and possibly limited control of select networking components (e.g., host firewalls).Deployment Models:Private cloud. The cloud infrastructure is operated solely for an organization. It may be managed by the organization or a third party and may exist on premise or off premise.Community cloud. The cloud infrastructure is shared by several organizations and supports a specific community that has shared concerns (e.g., mission, security requirements, policy, andcompliance considerations). It may be managed by the organizations or a third party and may exist on premise or off premise.Public cloud. The cloud infrastructure is made available to the general public or a large industry group and is owned by an organization selling cloud services.Hybrid cloud. The cloud infrastructure is a composition of two or more clouds (private, community, or public) that remain unique entities but are bound together by standardized orproprietary technology that enables data and application portability (e.g., cloud bursting for load-balancing between clouds).Note: Cloud software takes full advantage of the cloud paradigmby being service oriented with a focus on statelessness, low coupling, modularity, and semantic interoperability.
  321. 321. Technology
  322. 322. Gotcha!
  323. 323. The LEF focuses on six key interrelated researchdomains 1 2 3 Business/IT Business/IT Relationship The Consumerization of Co-evolution Management IT How are business and How can Enterprise IT How are consumer IT changing each other? add more value to the technologies and the organization? Internet affecting both the firm and central IT? 4 5 6 Organizing IT for the The Changing Nature of Business Future Work Sustainability What will the retained How will management, How can IT be used central IT function employees and the to help make firms look like? culture of the firm need more to change? environmentally friendly? Leading Edge Forum March 2011
  324. 324. @swardleyLeading Edge Forum March 2011

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