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Is Private Cloud Right for Your Organization

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This is a presentation I did for a Focus webinar:
http://www.focus.com/webcasts/information-technology/private-cloud-right-your-organization/

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Is Private Cloud Right for Your Organization

  1. 1. Is Private Cloud Right for Your Organization?A 5-Step Litmus Test<br />Dave Roberts<br />Vice President, Strategy<br />dave.roberts@servicemesh.com<br />Company Twitter: @servicemesh<br />Personal Twitter: @sandhillstrat<br />
  2. 2. Who is ServiceMesh?<br /><ul><li>Provider of Agile IT governance, security and lifecycle management software and services for Global 2000 clients
  3. 3. Customers include some of the world’s largest and most sophisticated companies in:
  4. 4. Financial services
  5. 5. Health care
  6. 6. Consumer
  7. 7. Other IT-intensive industries
  8. 8. Global presence with headquarters in Los Angeles and offices in Austin, London, New York, Sydney, and Washington D.C.</li></ul>2<br />3X revenue growth in 2010<br />3rd consecutive year of profitability<br />
  9. 9. “I Heard There’s No Such Thing as Private Cloud”<br />Some large cloud service providers want to force the world into a one-size-fits-all, public cloud model.<br />Anything that challenges that public cloud world-view must be attacked.<br />FACT: Every G2000 enterprise that ServiceMesh is working with is building private clouds.<br />FACT: The TM Forum’s Enterprise Cloud Leadership Council (ECLC) has defined requirements and a working group that encompasses private cloud (enterprise-grade IaaS).<br />3<br />
  10. 10. The World is Multi-Dimensional<br />4<br />Excess Capacity Sellback<br />AWS EC2<br />Public<br />Internal ITorService Provider<br />Savvis<br />Private<br />Internal<br />External<br />
  11. 11. Private vs. Virtual Private<br />Public cloud vendors are retrenching and offering “virtual private cloud”<br />Characteristics<br />Shared infrastructure<br />Private access via VPN<br />Rich networking functionality<br />Private IP address space makes it appear as part of the enterprise data center<br />Question: Why would they do such a thing if private cloud didn’t exist?<br />Answer: Because enterprises are demanding more than public clouds. But they want to leverage the infrastructure across multiple customers for higher efficiency.<br />5<br />
  12. 12. Hybrid Clouds Enable Optimization<br />6<br /><ul><li>Optimize workload placement and schedule
  13. 13. Enable portability across clouds
  14. 14. Align best fit providers to unique needs
  15. 15. Drive price arbitrage between providers</li></ul>Virtual desktops<br />(Day)<br />Grid nodes (Night)<br />Dev and test environments<br />Dev and test environments<br />Grid nodes (Day)<br />Internal Private Cloud<br />External Public Cloud<br />
  16. 16. 7<br />Private Cloud Litmus Test<br />1<br />Do you have specific securityrequirements?<br /><ul><li>Data in transit
  17. 17. Data at rest
  18. 18. Data destruction requirements
  19. 19. Audit requirements
  20. 20. Regulated industry</li></li></ul><li>8<br />Private Cloud Litmus Test<br />2<br />Are you of sufficient scale?<br /><ul><li>Doesn’t make sense to build an optimized private cloud if you’re small
  21. 21. But don’t underestimate yourself
  22. 22. If you have 500 workloads or more, It might make sense to build a private cloud</li></li></ul><li>9<br />Private Cloud Litmus Test<br />3<br />Do you have a reasonable fraction of dynamic workloads?<br /><ul><li>If your workloads are largely static, then you might be better off with traditional server or virtualization solutions
  23. 23. You might still want to outsource in a traditional managed hosting model
  24. 24. Or go hybrid here:“Buy the base, rent the peak”</li></li></ul><li>10<br />Private Cloud Litmus Test<br />4<br />Can you deal with the organizational dynamicsassociated with the effort?<br /><ul><li>Building a private cloud is not simply a matter of purchasing and assembling technology
  25. 25. Shifting to a cloud operating model will require changes to processes and job roles
  26. 26. You’ll need sufficient top-down support to effect lasting change</li></li></ul><li>11<br />Private Cloud Litmus Test<br />5<br />Do you have specialrequirements?<br /><ul><li>Predictable outcomes
  27. 27. Reserved capacity
  28. 28. Known performance (CPU, disk, network)
  29. 29. Known latencies</li></li></ul><li>Basic Private Cloud Architecture Stack<br />12<br />Private Cloud Users<br />Billing<br />Workflow<br />Policy and Governance<br />Automation<br />Security<br />CloudAPI<br />Hypervisor<br />Private Cloud<br />Pod<br />External Public Cloud<br />CPU<br />Network<br />Storage<br />Private Cloud Pod<br />
  30. 30. Pod Reference Implementation<br />13<br /><ul><li>Infrastructure selection will vary based on specific organizational needs to provide the optimal combination of performance, cost, and simplicity.
  31. 31. Look for a balanced design that delivers the right ratio of CPU, storage, and network bandwidth.</li></ul>VM density:<br /><ul><li>1600 server workloads per compute rack
  32. 32. 6000 desktop workloads per compute rack </li></ul> 48 blades for a total of 576 cores. Standard memory config is 96 GB/blade, high end config is 192 GB/blade.<br /> Two 10 Gbps switches, each with 480 Gbps of network bandwidth.<br /> 100 TB of raw storage capacity and 500 GB of memory.<br /> Other reference implementation metrics and technical specs are available.<br />
  33. 33. The Need for Balance<br />14<br />
  34. 34. Pod Reference Implementation<br />15<br /><ul><li>Based on published external cloud prices, financial analysis showed that the private cloud can cost up to 75% less than comparable external cloud offerings for a high-availability use-case.
  35. 35. End-to-end automation required only minutes to provision workload, auto-scale, and configure security for complex topologies, which normally would take days or weeks.</li></li></ul><li>Adopt a Cloud Operating Model<br />Private cloud is not a product or technology you can simply buy and install<br />FAQ: “What’s the difference between virtualization and private cloud?”<br />Answer: Virtualization is a technology used to build private clouds, but clouds are more about how you operate the technology and expose it to your users than the technologies themselves<br />To extract the full advantage, you’ll need to run your internal private cloud like a (mini) service provider<br />That means you’ll have to move from your traditional IT operating model to a cloud operating model<br />To implement a cloud operating model, you’ll need to:<br />Rework processes and procedures<br />Define internal SKUs for your users<br />Create SLAs<br />Create internal pricing<br />16<br />
  36. 36. Creating Internal Private Cloud SKUs<br />17<br />Don’t forget this!Use it to fund maintenance, upgrades, continual development, and support.Think like a service provider. Run it like a business!<br />Private Cloud SKU Price<br />Internal Markup<br />SKU Cost<br />SKU Capacity<br />Aggregate Pod Capacity<br />
  37. 37. Understanding Contestability<br />Explicit Goal: Make your private cloud earn its keep.<br />To do this, you need to seek opportunities for “contestability”<br />You want competition between your own private offering and others<br />Other offerings might be other internal private clouds!<br />Don’t create a private cloud and run it poorly!<br />Don’t waste money on something that isn’t competitive<br />Don’t settle for poor service<br />18<br />
  38. 38. 19<br />Private Cloud Results<br />Deploy Fast:<br />Scale Faster:<br />Provisioning with private cloud: 4 minutes<br />Minutes<br />Automated policy enforcement<br />Start using it<br />Self-service portal<br />Provisioning with virtualization only: 3-6 weeks<br />Number of simultaneous server instances provisioned<br />IT approval<br />Provision VM and configure<br />VM request<br />Start using it<br />Provisioning with hardware procurement: 12-18 weeks<br />Hardware requisition<br />Procurement approval<br />Hardware arrives<br />Rack in data center<br />Start using it<br />Setup platform/ application<br />* Reference implementation test results, Nov 2010<br />

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