Cloud Computing - Beyond the Hype


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Presented at the New Zealand Computer Society 50th Anniversary Conference. The conference theme was about ICT Innovation.

This presentation was delivered during the conference by Phil Patton, IBM NZ will focus on answering in simple terms the key questions many are asking in their quest to understand why there is so much hype around Cloud – what are the key ingredients of Cloud Computing? And what’s different about it, what are the deployment types, and what workloads are suitable for Cloud deployment?

Phil will also cover the Enterprise Roadmap for Cloud adoption, the integration and connectivity between Cloud and legacy applications and address the significant security concerns related to the uptake of Cloud.

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Cloud Computing - Beyond the Hype

  1. 1. Cloud Computing - Beyond the Hype IBM Point of View 16 September 2010 Phil Sheehan Cloud Specialist ISV Alliance Manager
  2. 2. Where’s Cloud Today? Source: Dr Michael Snowden, OneNet Here? 3-5 yrs?
  3. 3. <ul><li>“ Cloud” is a new consumption and delivery model inspired by consumer Internet services. </li></ul><ul><li>Enabled by Virtualisation, (Service) Automation, Standardisation </li></ul><ul><li>Cloud enables : </li></ul><ul><ul><li>Self-service </li></ul></ul><ul><ul><li>Economies-of-scale </li></ul></ul><ul><ul><li>Flexible pricing models (eg. pay-per-use) </li></ul></ul><ul><ul><li>Workload based IT resource provisioning </li></ul></ul><ul><li>“ Cloud” is: </li></ul><ul><ul><li>The I ndustrialisation of Delivery for IT Services </li></ul></ul><ul><li>Similar to banking ATMs and retail Point of Sale, cloud is driven by: </li></ul><ul><ul><li>Economies of scale </li></ul></ul><ul><ul><li>Technology advancement </li></ul></ul>Cloud Computing Defined Banking Retail IT
  4. 4. What is the Research Showing Us?
  5. 5. IDC review of Asia Pacific movements in Cloud Are you currently using or considering using any public cloud services or cloud computing in your organization? Source: IDC Asia Pacific End-User Cloud Computing Survey 2009 (n=696) & 2010 (n=600)
  6. 6. Cloud Computing Overview The Key Ingredients of Cloud Computing <ul><li>Easy access to “best in class” functions </li></ul><ul><li>Flexibility and choice </li></ul><ul><li>Lower costs </li></ul><ul><li>Enhanced security and reliability </li></ul><ul><li>Rapidly Provisioned </li></ul><ul><li>Offers Enterprise Grade environment to companies of all sizes </li></ul>High Quality User Experience Significantly Improved Supply Economics <ul><li>Lower operating costs via standards and automation </li></ul><ul><li>Improved capital efficiency </li></ul><ul><li>Rapid, flexible services enhancements </li></ul>Enabling Technology <ul><li>Open, standards-based </li></ul><ul><li>Common components and processes </li></ul><ul><li>Elastic scaling and fault recovery </li></ul>Enabled by dynamic Infrastructure Compute Storage Network Cloud Services Changes in Consumption Changes in Delivery <ul><li>User provisioned </li></ul><ul><li>Self service model </li></ul><ul><li>Tiered, flexible pricing </li></ul><ul><li>Standardized offerings </li></ul><ul><li>Virtualized and automated </li></ul>
  7. 7. Cloud Computing ‘As A Service’ layers Infrastructure-as-a-service Platform-as-a-service Software-as-a-service Servers Networking Storage Middleware Collaboration Financials CRM/ERP/HR Industry applications Data centre Shared virtualised, dynamic provisioning Database Web 2.0 application runtime Java runtime Development tools 3 2 1 Employee Benefits Mgmt. Industry-specific Processes Procurement Business Travel 4 Business Process-as-a-service
  8. 8. All three cloud sub-markets to grow strongly $47B market in 2008 growing at 28% CAGR will reach $126B in 2012 Cloud spending ($B) Source: IBM (MI), IDC, CIO magazine, BCG analysis Cloud Spending by Sub-Market <ul><li>Includes both direct providers of cloud services and components suppliers </li></ul><ul><li>Data represents a worldwide view across both LE and SMB </li></ul>2008 2012 Revenue 2008  2012 CAGR Business services $20B  $52B 27% Infrastructure services $7.7B  $30B 40% Components supply $19B  $44B 23%
  9. 9. Clients will make workload-driven trade offs among functions such as security, degree of customisation, control and economics Typical roadmap for adoption of Cloud Computing
  10. 10. Adoption of cloud computing will be workload driven <ul><li>Workload characteristics determine standardization </li></ul><ul><li>Web infrastructure applications </li></ul><ul><li>Collaborative infrastructure </li></ul><ul><li>Development and test </li></ul><ul><li>High Performance Computing </li></ul><ul><li>... </li></ul>Test for Standardization Examine for Risk <ul><li>Database </li></ul><ul><li>Transaction processing </li></ul><ul><li>ERP workloads </li></ul><ul><li>Highly regulated workloads </li></ul><ul><li>... </li></ul><ul><li>High volume, low cost analytics </li></ul><ul><li>Collaborative Business Networks </li></ul><ul><li>Industry scale “smart” applications </li></ul><ul><li>... </li></ul>Explore New Workloads
  11. 11. Workloads ready now for cloud computing: TOP 25 <ul><li>Analytics </li></ul><ul><li>Data mining, text mining or other analytics </li></ul><ul><li>Data warehouses or data marts </li></ul><ul><li>Transactional databases </li></ul><ul><li>Business services </li></ul><ul><li>Customer relationship management (CRM) or sales force automation </li></ul><ul><li>E-mail </li></ul><ul><li>Enterprise resource planning (ERP) applications </li></ul><ul><li>Industry-specific applications </li></ul><ul><li>Collaboration </li></ul><ul><li>Audio/video/Web conferencing </li></ul><ul><li>Unified communications </li></ul><ul><li>VoIP infrastructure </li></ul><ul><li>Desktop and devices </li></ul><ul><li>Desktop </li></ul><ul><li>Service/help desk </li></ul><ul><li>Development and test </li></ul><ul><li>Development environment </li></ul><ul><li>Test environment </li></ul><ul><li>Infrastructure </li></ul><ul><li>Application servers </li></ul><ul><li>Application streaming </li></ul><ul><li>Business continuity/ disaster recovery </li></ul><ul><li>Data archiving </li></ul><ul><li>Data backup </li></ul><ul><li>Data center network capacity </li></ul><ul><li>Security </li></ul><ul><li>Servers </li></ul><ul><li>Storage </li></ul><ul><li>Training infrastructure </li></ul><ul><li>Wide area network (WAN) capacity </li></ul>Source: IBM Market Insights, Cloud Computing Research , July 2009: n=1200.
  12. 12. Workloads may be at different levels of readiness for cloud
  13. 13. There is a spectrum of deployment options for cloud computing Private Public Hybrid IT capabilities are provided “as a service,” over an intranet, within the enterprise and behind the firewall Internal and external service delivery methods are integrated IT activities / functions are provided “as a service,” over the Internet Third-party operated Third-party hosted and operated Enterprise data center Enterprise data center Private cloud Hosted private cloud Managed private cloud Enterprise Shared cloud services A Enterprise B Public cloud services A Users B
  14. 14. A framework for cloud computing Business planning / lifecycle management services Shared middleware services Infrastructure services Industry-specific services Integrated service management and security Cloud-based business solutions for industry-specific processes Virtualized and optimized systems storage and networking IT services that are integrated with cloud services Application infrastructure for delivering cloud services Business services delivered via the cloud Integrated capabilities for visibility, control, automation and security of cloud services Capabilities to define an enterprise architecture for business planning/alignment and tools for managing the lifecycle of cloud services Process services Collaboration services Analytics services Existing services, third-party services, partner ecosystems …
  15. 15. Security is among a top concern with cloud computing... Data and information Understand, deploy and properly test controls for access to and usage of sensitive data People and identity Mitigate the risks associated with user access to corporate resources Application and process Help keep applications secure, protected from malicious or fraudulent use, and hardened against failure Network, server and end point Optimize service availability by mitigating risks to network components Physical infrastructure Provide actionable intelligence on the desired state of physical infrastructure security and make improvements Professional services Managed services Hardware and software
  16. 16. Cloud has an Answer for Security <ul><li>Data security is built into the cloud. </li></ul><ul><li>It incorporates next-generation security and cloud service management technologies, as well as simplified security management and enforcement, offering enterprise customers the same security and compliance guarantees that are equivalent or better than what they can expect in traditional computing environments. </li></ul>
  17. 17. ©2010 Cast Iron Systems, Inc. • Confidential ©2010 Cast Iron Systems, Inc. • Confidential How Can We Bridge the Cloud & On Premise Worlds? Home-grown Applications Packaged Applications
  18. 18. Businesses that implement cloud computing are seeing significant results Reduced IT labor cost by 50 percent in configuration, operations, management and monitoring Improved capital utilization by 75 percent, significantly reducing license costs Reduced provisioning cycle times from weeks to minutes Improved quality, eliminating 30 percent of software defects Reduced end user IT support costs by up to 40 percent Simplified security management
  19. 19. Challenges in the Data Centre <ul><li>Ballooning Labour Costs </li></ul><ul><li>Sky-High Energy Consumption </li></ul><ul><li>Growing Demands from Users </li></ul><ul><li>Chaotic Data Silos </li></ul><ul><li>Exponential growth in data volume </li></ul>
  20. 20. Summary: Key Benefits of Cloud Computing <ul><li>Cloud enables the dynamic availability of IT applications and infrastructure, regardless of location. </li></ul><ul><ul><li>Enhanced service delivery reinforces efforts for customer retention, faster time to market and horizontal market expansion. </li></ul></ul><ul><li>Cloud computing promotes IT optimisation so that IT resources are configured for maximum cost-benefit. </li></ul><ul><ul><li>It supports massive scalability to meet periods of demand while avoiding extended periods of under-utilised IT capacity </li></ul></ul>
  21. 21. Summary: Key Benefits of Cloud Computing <ul><li>Cloud computing fosters business innovation by enabling organisations to explore quickly and cost effectively the potential of new, IT-enabled business enhancements that can grow with unprecedented scale. </li></ul><ul><li>Not only does cloud computing deliver a greater return on IT equipment spending, but it also promotes more efficient and effective use of technical staff – locally or remotely. </li></ul><ul><li>Cloud computing also yields significant cost savings in the real estate required for the data centre as well as power and cooling costs. </li></ul>
  22. 22. How we will differentiate IBM Cloud Computing IBM provides clear economic value and helps you work through the right mix of delivery models and choices (by workload) to reap the maximum benefit. IBM supports industry standards, has over 8 million developers, and provides a platform for open innovation. IBM provides Cloud solutions that are completely robust and secure, based on the demanding needs of today’s businesses: rapid provisioning, clear visibility of assets, robust data governance, and seamless mix of delivery models. From sourcing to usage to maintenance, IBM Cloud solutions are designed to be simple, intuitive, and built based on how people actually work. IBM has partners, delivery centers, and a world-wide network of partners in 174 countries. And we have the experience of running a globally integrated enterprise, so we understand what it takes to make a global company run. Clear economic value Integrated and open Secure and ready for business Designing for simplicity Globally relevant
  23. 23. For more information, please visit: Email Phil Sheehan –