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The Cloud Revolution - Philippines Cloud Summit

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@randybias 
The Cloud Revolution 
Business Transformation with Cloud Computing! 
Randy Bias, Founder & CEO, Cloudscaling! ...

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Introduction

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Who 
Scale Builder! 
3 * 100k+ sq ft datacenters @ 14MW each! 
1000s of servers, 100s of switches! 
Leader in Production C...

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The Cloud Revolution - Philippines Cloud Summit

  1. 1. @randybias The Cloud Revolution Business Transformation with Cloud Computing! Randy Bias, Founder & CEO, Cloudscaling! PH Cloud Summit! September 25th, 2014 CCA - NoDerivs 3.0 Unported License - Usage OK, no modifications, full attribution*! * All unlicensed or borrowed works retain their original licenses
  2. 2. Introduction
  3. 3. Who Scale Builder! 3 * 100k+ sq ft datacenters @ 14MW each! 1000s of servers, 100s of switches! Leader in Production Cloud Deployments! 1st OpenStack Public Compute Cloud in U.S.! 1st Public Compute Cloud Korea for KT uCloud! (CloudStack)! 1st Public Storage Cloud in Korea and 2nd in U.S.! OpenStack Foundation Board of Directors! Top 10 Cloud Computing Pioneer 3
  4. 4. Today’s Goals The Cloud Revolution! Cloud and the Enterprise! Cloud and the Philippines (+APAC) 4 1 2 3
  5. 5. What is Cloud?
  6. 6. What is Cloud Computing? ? On demand services? Self-service Web Apps? IT-as-a- Service? Virtualization? 6
  7. 7. ... could it be something else? ? On demand services? Self-service Web Apps? Disruption? IT-as-a- Service? Virtualization? 7
  8. 8. Enterprise Computing Approach 8
  9. 9. Cloud Computing Approach 9
  10. 10. Cloud Computing’s Real Pioneers 10
  11. 11. Cloud is Fundamentally Disruptive Enterprise Computing "Client-Server" Cloud Computing "Web" Mainframe Computing "Big Iron" 1960 1980 2000 2020 Disruption Disruption Disruption 11
  12. 12. Example Cloud Technology Google’s MapReduce! re-written from scratch as open source! Google's hardware reference architecture! Enterprise’s wouldn’t consider 10yrs ago! Hadoop market is destroying traditional BI! 21B by 2018 w/ 54% CAGR! OpenStack on a similar trajectory! … for private cloud! Many others:! Cassandra, Riak, Mesosphere, Docker, and many more 12
  13. 13. Hadoop Reference Architecture 13
  14. 14. Google’s Hidden Power? Map Reduce 14
  15. 15. The Simplified Model of Cloud 15
  16. 16. Cloud Comes in Many Forms SaaS for end users PaaS for app developers IaaS for dev/ops Public Private 16
  17. 17. IaaS Growth
  18. 18. Enterprises Love AWS 18
  19. 19. AWS Still A Juggernaut* * SOURCE: Huan Liu http://huanliu.wordpress.com/2014/02/26/amazon-ec2-grows-62-in-2-years/ 19
  20. 20. Yes, That’s a Log Scale 20
  21. 21. AWS Revenue Run Rate - Feb’14 21 Math:! 2.97M VMs * $1512/year == 4.5B! (for EC2 alone) Assumptions:! • $.175/hr avg cost based on m1.large! • 720 hours in a month (keeping it simple)! • EC2 is probably ~70% of all AWS revenues! • http://huanliu.wordpress.com/2014/02/26/amazon-ec2-grows-62-in-2- years/ $6.4B
  22. 22. Cloud & Enterprise
  23. 23. What do Enterprises Care About? ACCELERATING! TIME TO VALUE! DevOps Data Center & 23 Cloud Computing! Agile Development! Business ! Agility! Operational Discipline! Agile Methodologies Continuous Integration Continuous Testing & Delivery IaaS / PaaS !! Public / Private / Hybrid !! Big Data / Analytics !! Public APIs Continuous Deployment App Automation Line of Business Enablement New App Initiatives (Mobile, SaaS, etc.) Data Center Modernization
  24. 24. Path to Greater Agility? DevOps! DevOps 24 Software Development Quality Assurance Technology Operations
  25. 25. DevOps Explained 25 Application Automation Continuous Integration Continuous Deployment Operations OODA Loop Agile SW Development Continuous Delivery Cycle Feedback and Learning
  26. 26. DevOps Simplified Application Automation! Apps Scale Themselves Up / Down! Apps “Route Around Failures” In Infrastructure! Apps Are Infrastructure-Aware! Apps Manage Their Own Data Replication/Redundancy! Continuous App Delivery Methodology! Continuous Integration! Continuous Deployment! Continuous Delivery! Net Result: Cloud-Native Applications! 26
  27. 27. Ops OODA Loop 27
  28. 28. Cloud-Native Shifts Uptime Responsibility Enterprise Model Cloud Model 28 99.9%! Applications! (8h46m down) 99.999%! Infrastructure! ($$$$) 99.999% Applications! (5m down) 99% Infrastructure! ($$)
  29. 29. Cloud-Native is a Mindset Change 29 bowzer.company.com! (scale-up) Attribution: Bill Baker, Distinguished Engineer, Microsoft web001.company.com! (scale-out) (Virtual) Servers *are* cattle
  30. 30. Cloud-Native is the Opportunity 30 Traditional Applications 2012 89M 2015 139M +56% New Scale-Out Applications 2012 5M 2015 32M +540% Source: EMC, IDC, Gartner, AWS
  31. 31. Cloud-Native is the Future 31 500M 375M 250M 125M 0M 2012 2015 2018
  32. 32. These New Apps Require New Infra 32 LEGACY & TRADITIONAL APPLICATIONS CLOUD-NATIVE APPLICATIONS Silos Physical Clusters Virtualized App App App APIs Scale-Out Elastic App HW HW HW HW HW HW HW HW HW HW App HW App HW App HW
  33. 33. Matching Apps to Infrastructure 33 Don’t Migrate Could Migrate Enterprise Virtualization NEW SCALE-OUT APPS (ELASTIC) Cloud Possible Cloud Native $4-8x $1x Legacy Custom Apps Websites, Dev/Test, Collaboration Apps, Packaged Software (ERP/CRM) Scale-out Web Apps, Apps Hosted on PaaS, Big Data, Mobile Apps, etc Cloud Infrastructure LEGACY APPS (INELASTIC)
  34. 34. Where is the Urgency for Enterprises? “Seventy percent of the companies that were on the Fortune 1000 list a mere 10 years ago have now vanished – unable to adapt to change,” states Forrester analyst Craig Le Clair 34
  35. 35. Enterprise & Public IaaS
  36. 36. Essential Understandings 36 “The cloud lets its users focus on delivering differentiating business value ... ” ! -- Werner Vogels, Amazon CTO “... get into the [Google] mind-set ... robustness ... has to be designed into your software ... assume that the hardware [is] ... unreliable and broken ... at any point.” ! -- Adrian Cockcroft, Netflix Chief Cloud Architect
  37. 37. Netflix in Detail 4.3B, 2000 employees! 100% bet on AWS! Transitioned from legacy enterprise DC model to “cloud native” model! Entered entirely new markets! EU, APAC, South America! No boots on ground, no investment! 37
  38. 38. Samsung in Detail 320B, 400,000 employees! Samsung global mobile services! Using AWS EC2 globally and in U.S.! Using KT uCloud in South Korea! Example Apps! ChatOn messaging application embedded in all Galaxies! Other mobile applications developed on EC2 38
  39. 39. Cloud, Philippines, and APAC
  40. 40. Microsoft Philippines Cloud Report* Top 3 reasons for cloud adoption! Supporting unpredictable workloads! Increasing business / IT flexibility! Reducing hardware costs! Interest primarily in private and hybrid! Security still top cloud adoption concern! Source: Microsoft Accelerating Cloud in the Philippines Infographic 40
  41. 41. KT uCloud First public cloud in KR; one of first in APAC! Early adoption was *very* slow! Ultimately, modern apps drove adoption:! Online gaming, web startups, mobile applications! Took 2-3 years to ramp up! Impediments to adoption:! Server hugging! Government regulation (KISA audit standards) 41
  42. 42. Public Cloud Service Growth > 23% 5 times that of the overall IT industry 42 http://www.idc.com/getdoc.jsp?containerId=prUS24298013
  43. 43. IaaS is $4B and Growing Fastest 43 http://www.idc.com/getdoc.jsp?containerId=prUS24977214
  44. 44. Emerging Markets are Growing Fastest 44 http://www.idc.com/getdoc.jsp?containerId=prUS24977214 http://www.idc.com/getdoc.jsp?containerId=prUS24298013
  45. 45. IDC’s APEJ Cloud End-User Survey 73% of all companies are already using or planning to use cloud services within the next 12 months.! ! More than 25% of organizations expect that within five years, the majority of their IT capability will be delivered through public cloud services and that within three years, they will access 55% of IT resources through some form of cloud — public, private, or hybrid. 45 http://www.idc.com/getdoc.jsp?containerId=AP6684423V
  46. 46. Brief Word on Hybrid Cloud
  47. 47. Hybrid-first Cloud Strategy Private Clouds Must be Interoperable with Public Cloud Leaders HYBRID CLOUD PRIVATE CLOUD PUBLIC CLOUD 47 OCS Interoperability means: SLAs, QoS, TCO, Feature Parity, & Same Behavior
  48. 48. Hybrid is the Future Unfortunately … it’s largely IN the future! Application portability driving hybrid cloud! No standards yet or ability to have interop.! Hybrid success stories are hard to find! OpenStack has best chance to fix this 48
  49. 49. Wrapping Up
  50. 50. Cloud Fundamentally Transformative Business Agility 50 DevOps Enablement Cloud Native Apps Hybrid to Public Elastic Cloud Architecture
  51. 51. Q & A

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