Gitex2010 ICT strategies moving to the cloud v11

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Gitex 2010 ICT conference and presentation on ICT strategies of moving to cloud computing, business motivations and practical approaches of taking advantage of cloud computing.

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Gitex2010 ICT strategies moving to the cloud v11

  1. 1. Datamatix Gitex Conference 2010 ICT Strategies of moving to the cloud… jorge.sebastiao@its.ws
  2. 2. Business Problem-1 Source: VMware Fortune 100 Customers Cause • Overwhelming complexity • Reliance on brittle infrastructure Effect • >70% of IT budgets just “maintaining” status quo • <30% of IT budgets goes to innovation and competitive advantage Where IT Energy Is Spent 42% Infrastructure Maintenance 30% Application Maintenance 23% Application Investment 5% Infrastructure Investment Business Agility Depends on IT Agility
  3. 3. Progressive Organizations
  4. 4. Progressive Organizations Outsource IT
  5. 5. Organizations benefits in the Cloud? Speed Cost Source: IDC eXchange, "IT Cloud Services User Survey, pt. 2: Top Benefits & Challenges," (http://blogs.idc.com/ie/?p=210), October 2, 2008
  6. 6. Organizations issues with the Cloud QoS Fit Security Source: IDC eXchange, "IT Cloud Services User Survey, pt. 2: Top Benefits & Challenges," (http://blogs.idc.com/ie/?p=210), October 2, 2008
  7. 7. Business Problem-2 1. Cost 2. Scalability 3. Flexibility 4. Availability 5. Portability 6. Collaboration 7. Enable new stuff…
  8. 8. Evolution Mainframe PC / Client-Server Web Cloud Cloud Computing will transform the delivery of IT services
  9. 9. Comparison Traditional Computing Dedicated Traditional hardware procurement New services added manually Manual repair of system failure Months Incremental CapEx purchases Shared Self service Scale on-demand Automated recovery due to integration / interoperable Minutes Pay per use Consumption Ease of Use Scalability Availability Provisioning Cost Cloud Computing
  10. 10. Next Gen DC
  11. 11. Connectivity is key
  12. 12. Cloud Computing – Quote 1 “ Economic downturn, the appeal of that cost advantage will be greatly magnified" (IDC, 2008)
  13. 13. Cloud Computing – Quote 2 “Not only is it faster and more flexible, it is cheaper. […] the emergence of cloud models radically alters the cost benefit decision“ (FT Mar 6, 2009)
  14. 14. Gartner Predicts by 2012, 20% percent of businesses will have no ownership of IT assets
  15. 15. Gartner View
  16. 16. Gartner Hype Cycle Cloud Computing
  17. 17. Were the cloud is useful-1
  18. 18. Were the cloud is useful-2
  19. 19. Were the cloud is useful-3
  20. 20. Were the cloud is useful-4
  21. 21. "cloud" - definitions • Infrastructure aaS? • Grid / utility / "on demand" computing • Shared utility • eg Amazon EC2 • Platform aaS? • Ready-for-deployment scalable application platform • Google apps, Force.com, Heroku, Bungee Labs • Microsoft! (Azure) • Software aaS? • Used to be called "application service providers" • Multitenanted architectures: SalesForce.com, Xero • ... • Wide area SOA? • "Universe of all (web) services" • WS-* and REST standards • Data as a service?
  22. 22. Definition “Cloud computing is simply a buzzword used to repackage grid computing and utility computing, both of which have existed for decades.”
  23. 23. Demystifying the cloud “The interesting thing about cloud computing is that we’ve redefined cloud computing to include everything that we already do. […] The computer industry is the only industry that is more fashion-driven than women’s fashion. Maybe I’m an idiot, but I have no idea what anyone is talking about. What is it? It’s complete gibberish. It’s insane. When is this idiocy going to stop?” Larry Ellison
  24. 24. Proper Definition Source: NIST Definition of Cloud Computing v15 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, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction.: 3 Service Models 4 Deployment Models 5 Essential Characteristics
  25. 25. SaaS, PaaS and IaaS Applications delivered as a service to end-users over the Internet Infrastructure as a Service Platform as a Service Software as a Service App development & deployment platform delivered as a service Server, storage and network hardware and associated software delivered as a service
  26. 26. Models
  27. 27. Public Clouds and Private Clouds I N T E R N E T Public Clouds IaaS PaaS SaaSI N T R A N E T Private Cloud Users Public Clouds: • Lower upfront costs • Economies of scale • Simpler to manage • OpEx Private Cloud: • Lower total costs • Greater control over security, compliance & quality of service • Easier integration • CapEx & OpEx Both offer: • High efficiency • High availability • Elastic capacity • Used by multiple tenants on a shared basis • Exclusively used by a single organization IaaS PaaS SaaS
  28. 28. Types of Clouds Private (On-Premise) Infrastructure (as a Service) Platform (as a Service) Storage Server HW Networking Servers Databases Virtualization Runtimes Applications Security & Integration Storage Server HW Networking Servers Databases Virtualization Runtimes Applications Security & Integration Storage Server HW Networking Servers Databases Virtualization Runtimes Applications Security & Integration Youmanage Managedbyvendor Managedbyvendor Youmanage Youmanage
  29. 29. Cloud Control
  30. 30. Today’s Public Cloud Elements Automation of provisioning events Self management via portal / control panel Utility / Elastic Computing Multi-tenancy Virtualisation
  31. 31. Today’s Cloud Interface Portal Monitoring Applications Reporting/ Billing Provisioning Engine Resources
  32. 32. Cloud Examples
  33. 33. Shift from CapEx to OpEx is very attractive Traditional IT Cloud Computing Cloud Computing Economics
  34. 34. Cost Benchmarks 0.0 ¢ 2.0 ¢ 4.0 ¢ 6.0 ¢ 8.0 ¢ 10.0 ¢ 12.0 ¢ 14.0 ¢ 16.0 ¢ 18.0 ¢ 20.0 ¢ 30% 35% 40% 45% 50% 55% 60% 65% 70% 75% 80% Sources: Amazon, EMC CIG, VMware analysis Most enterprise customers Amazon EC2 Reserved Pricing The Private Cloud Imperative Cost per VM hour (2GB instance) Utilization
  35. 35. Value to CFO • Capital Expenditure Minimized • Predictable gross marginCapex/Opex • Financial risk increases only as business value is proven • Full costs only realized on success Managed Risk • No capital assets on balance sheet • No need to depreciate assets • No risk of capital write downs Off Balance Sheet
  36. 36. Value to CEO • No call on equity capital • No call on debt capital Capital Preservation • No trip to the Boardroom for approval • ‘Fail Fast’ doesn’t cost the earth Calculable Risk • Reduce headcount on non-core functions • No need to run a data center Strategic Focus
  37. 37. Cloud Computing: Pluses •Elasticity •On demand scaling •The illustration of infinite resources •Pay-as-you go •No up-front cost •Pay what you need: no risk for under or over provisioning
  38. 38. Cloud Computing: Minuses •Placing your valuable apps/data on a 3rd party •A rogue cloud admin •How do you apply governance/compliance •Your VMs will/may co-reside in the same machines/network as your competitors •Information leaking •Denial of service attacks
  39. 39. Cloud Risks Threat #1: Abuse and Nefarious Use of Cloud Computing Threat #2: Insecure Interfaces and APIs Threat #3: Malicious Insiders Threat #4: Data Loss or Leakage Threat #5: Account or Service Hijacking Threat #6: Unknown Risk Profile
  40. 40. Cloud Issues Issue #1: Bandwidth Issue #2: Integration Issue #3: Long term viability of service (rapid change) Issue #4: Sovereignty Issue #5: Data recovery Issue #6: Standards
  41. 41. Cloud Architecture Information Assessment Power Model Cost Model Ecological Model Social Model Sustainability Information (Economic, Ecological, Social) Sustainability Models Sustainability Dashboard Global Workload Manager Business Continuity Open Cirrus Site Economical ($) Ecological Social IT cooling Ntwk support econo. overall CO2 (tonnes-eq) water (mill. Gal) Resource Use (GJ-eq) ecolog. overall State of devt. Risk of instability social overall Site 1 (APJ-1) $0.72 $0.35 $0.16 $0.43 6.0 2.6 83 High Low Site 2 (US-1) $1.27 $0.59 $0.21 $1.11 6.8 3.3 96 High Very Low Site 3 (APJ-2) $1.05 $0.47 $0.12 $1.07 5.9 2.3 81 High Low Site 4 (US-2) $0.75 $0.35 $0.12 $0.61 6.1 2.7 85 High Very Low Site 5 (Europe-1) $0.27 $0.13 $0.05 $0.09 4.3 2.4 59 Low High Site 6 (Europe-2) $1.82 $0.77 $0.11 $1.17 10.2 4.3 142 High Low Site 7 (US-3) $1.23 $0.54 $0.11 $0.98 15.0 4.4 192 High Low Site 8 (APJ-3) $0.55 $0.26 $0.10 $0.16 6.9 2.6 95 Med. Low Site 9 (US-1) $1.01 $0.44 $0.10 $0.83 5.3 2.5 74 High Very Low Bricks-and- Mortar (US) $0.58 $0.70 $0.12 $0.83 9.0 2.1 127 High Very Low The Cloud HP Yahoo UIUC Intel KIT IDA MIMOS RAS ETRI internet Monitoring
  42. 42. Cloud Metrics Sustainability Economic Ecological Social Server Storage Networking Facility Support Carbon Emission Water Use Resource Consumption Legal HR Economic Development Sociopolitical Stability Health
  43. 43. Cloud Dashboard Example-HP Open Cirrus Site Economical ($) Ecological Social IT cooling ntwk support econo. overall CO2 (tonnes-eq) water (mill. Gal) Resource Use (GJ-eq) ecolog. overall State of devt. Risk of instability social overall Site 1 $0.72 $0.35 $0.16 $0.43 6.0 2.6 83 High Low Site 2 $1.27 $0.59 $0.21 $1.11 6.8 3.3 96 High Very Low Site 3 $1.05 $0.47 $0.12 $1.07 5.9 2.3 81 High Low Site 4 $0.75 $0.35 $0.12 $0.61 6.1 2.7 85 High Very Low Site 5 $0.27 $0.13 $0.05 $0.09 4.3 2.4 59 Low High Site 6 $1.82 $0.77 $0.11 $1.17 10.2 4.3 142 High Low Site 7 $1.23 $0.54 $0.11 $0.98 15.0 4.4 192 High Low Site 8 $0.55 $0.26 $0.10 $0.16 6.9 2.6 95 Med. Low Site 9 $1.01 $0.44 $0.10 $0.83 5.3 2.5 74 High Very Low Bricks-and- Mortar (US) $0.58 $0.70 $0.12 $0.83 9.0 2.1 127 High Very Low
  44. 44. Deployment Models Public Cloud Cloud infrastructure made available to the general public. Private Cloud Cloud infrastructure operated solely for an organization. Virtual Private Cloud Cloud services that simulate the private cloud experience in public cloud infrastructure Hybrid Cloud Cloud infrastructure composed of two or more clouds that interoperate or federate through technology Community Cloud Cloud infrastructure shared by several organizations and supporting a specific community NIST Deployment Models …other
  45. 45. Ownership and Control Ownership Control Internal Resources All cloud resources owned by or dedicated to enterprise External Resources All cloud resources owned by providers; used by many customers Private Cloud Cloud definition/ governance controlled by enterprise Public Cloud Cloud definition/ governance controlled by provider
  46. 46. Hybrid Cloud Ownership Control Internal Resources All cloud resources owned by or dedicated to enterprise External Resources All cloud resources owned by providers; used by many customers Private Cloud Cloud definition/ governance controlled by enterprise Public Cloud Cloud definition/ governance controlled by provider Hybrid Cloud Interoperability and portability among Public and/or Private Cloud systems
  47. 47. Today’s Strategy should be “Hybrid”
  48. 48. ROI Elements 1.Current hosting costs 2.Current HR staff costs 3.DC Cooling/power/space 4.Migration costs 5.Licensing 6.Legal
  49. 49. Fix the Mesh, Spaghetti 1. Architect 2. Decouple 3. Virtualized 4. Utility 5. Security
  50. 50. Architect is a must…
  51. 51. Security
  52. 52. Roadmap Architect, Layer, Decouple, Secure Virtualized Utility Computing Hybrid Private Clouds Fix Virtualization Automation In-house Hybrid Start here
  53. 53. Action Plan Forward 1. Be tactical (low hanging fruit) 2. Strategic opportunity where PaaS delivers unique value 3. Ensure applications are cloud ready architectures 4. Start managing ICT as a service now • Service Catalogue • SLA 5. Assess situation • asset register • current application suite • migration path
  54. 54. Questions +973-36040991 jorge.sebastiao@its.ws

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