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Ten Myths of Cloud
Computing
Rex Wang
Vice President, Oracle
November 4, 2013
Cloud Expo Silicon Valley

1

Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
The following is intended to outline our general product
direction. It is intended for information purposes only, and
may not be incorporated into any contract. It is not a
commitment to deliver any material, code, or functionality,
and should not be relied upon in making purchasing
decisions. The development, release, and timing of any
features or functionality described for Oracle’s products
remains at the sole discretion of Oracle.

2

Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
Understanding Cloud
We’ve Come a Long Way…Or Maybe Not
In a recent survey of over 1,000 adult Americans:

• 51% believe stormy weather can interfere with cloud computing
• 54% think they hardly or never use the cloud, but…
95% use online shopping, banking, file sharing
• 22% admit that they’ve pretended to know what the cloud is
• 59% believe the “workplace of the future” will exist entirely in the cloud
Source: Wakefield Research

3

Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
Myth #1: Everything Will Go to the Public Cloud

4

Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
Private and Public Cloud Adoption
40%

37%

Percent of Customers

35%

30%
25%

29%

26%

20%
15%

Private Cloud
Public Cloud

14%

10%
5%
0%

2010
Source: IOUG ResearchWire, Aug-Sept 2010 and Aug-Sept 2012

5

Copyright © 2013, Oracle and/or its affiliates. All rights reserved.

2012
Myth #2: You’re Either Cloud or You’re Not

6

Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
Cloud Is an Evolution

Traditional Silos

Consolidated

Private Cloud

Public Cloud

• Physical

• Virtual

• Self-service

• Specialized

• Dedicated

• Shared

• Auto-scaling

• Shared

• Heterogeneous

• Standardized

• Metering &
chargeback

• Standardized

Hybrid Cloud
• Federation across
public & private
• Interoperability
• Cloudbursting

Start with consolidation • Extend to private cloud • Use public cloud where appropriate

7

Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
Myth #3: Clouds Are One Size Fits All

8

Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
Service Types: IaaS, PaaS, SaaS
Business End User

Customizations

Customizations

Application

Application

Platform

SaaS Cloud

Service
Provider

PaaS Cloud
IaaS Cloud

Key
Driver
9

Consolidation

App Development

New Capability

Cost Savings

Focus

Speed

Copyright © 2013, Oracle and/or its affiliates. All rights reserved.

Service Provider

Developer

Customizations
Consumer

IT Professional

Consumer

Different Users
Deployment Models: Private, Public, Hybrid, Managed

Hybrid Cloud

Private Cloud

Public Cloud

Managed Cloud

10

Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
Myth #4: Virtualization = Cloud

=
11

Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
PaaS Outpacing IaaS
0%

10% 20% 30% 40% 50% 60%

Application Server as a Service
Private

Platform as a Service
(PaaS)

2010

Identity as a Service

Public
2010

Infrastructure as a Service
(IaaS)

Source: IOUG ResearchWire, Aug-Sept 2010 and Aug-Sept 2012

12

Copyright © 2013, Oracle and/or its affiliates. All rights reserved.

Compute as a Service

2012

2012
Consolidation at PaaS and IaaS Layers
Consolidate onto standard, shared
and elastically scalable PaaS

App

App

App

App

App

PaaS

App

App

App

PREFERRED:
Reduced operational cost, complexity and
application development time

App

Unchanged operational cost and complexity

Consolidate onto shared IaaS
without standardization

13

Copyright © 2013, Oracle and/or its affiliates. All rights reserved.

IaaS

Reduced cost of hardware, power, cooling
Oracle Database 12c
First Database Designed for Cloud

• Multiple Pluggable Databases in
shared Container Database
• Isolation and multitenancy

• More efficient resource utilization
• More efficient administration –
“manage many as one”

• Easy to provision, move, clone, upgrade
• No application changes
14

Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
Myth #5: Reducing Cost Is the Biggest Benefit
of Cloud

15

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Cloud Benefits

Cost Savings

16

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Elasticity

Insert Information Protection Policy Classification from Slide 12 of the corporate presentation template

Speed
Myth #6: Clouds Run on Commodity
Components

17

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From Best-of-Breed to Engineered Systems

Best-of-Breed
System Elements
Customer integrated

18

Copyright © 2013, Oracle and/or its affiliates. All rights reserved.

Optimized Solutions

Engineered Systems

Predictable, lower risk
guided deployments

Extreme performance,
efficiency
Myth #7: Cloud Will Lock You In

19

Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
Cloud Is About Choice, Value and Flexibility

- Mark Schissel, SVP and CIO
Herbalife

20

Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
Cloud and the Challenge of Lock-In
Does Your Cloud Stack Up?
• Built on industry standards
• Applications available across public and private clouds
and on-premises
• No application code changes when moving between
clouds
• Open, robust APIs for easy data access
Look for standards-based solutions, portability of apps, and data accessibility

21

Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
Myth #8: Cloud Is All Pay-Per-Use

22

Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
Cloud Pricing Varies Widely
Pay Per Use (Variable Cost)

Subscription (Fixed Cost)

Sample
Metric

•
•
•
•
•

Pros/Cons

More flexible, less predictable cost

More predictable costs, less flexible

Best For

• Temporary environments
• Apps with significant workload
fluctuations

• Long-lived applications
• Apps with steady-state workloads

Use Cases

Dev/Test environments, retail websites,
social apps

Core business apps (ERP, CRM, HCM, etc.)

Per compute hour
Per GB stored
Per API request
Per GB bandwidth
etc.

Per seat per month

Choose a pricing model that best fits your needs

23

Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
Myth #9: Public Clouds Are Not Secure

24

Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
Organizations Can Often Improve Security With
Enterprise-Grade Public Clouds
Do It Yourself

Oracle Cloud

• Limited security resources &
expertise

• Dedicated team of cloud security
experts

• Challenges meeting regulatory
requirements

• Compliance with global regulatory &
industry standards

• Security audits & assessments not
performed regularly, if at all

• Regular third-party security audits &
assessments

• Outdated hardware/software

• Automatic hardware/software updates

Not all cloud security is equal • Understand your cloud provider’s security practices

25

Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
Myth #10: Choose Best of Breed Clouds for
Every Need
ERP

CRM

26

Copyright © 2013, Oracle and/or its affiliates. All rights reserved.

Custom App

HCM
Integration with Multiple Specialized Clouds
Know the Potential Challenges
Survey of 1,355 business managers:
• 54% experienced staff downtime due to integration problems with their
cloud apps
• 52% missed business deadlines because of poor integration of cloud
apps from multiple vendors
• 75% had innovation initiatives stunted by integration problems with cloud
apps and related workflows
• 64% were unable to integrate their cloud apps with other enterprise apps
Consider the challenges of integrating multiple clouds
Source: Independent market research conducted by Dynamic Markets in May 2013; Cloud for Business Managers: the Good, the Bad and the Ugly.

27

Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
Oracle Cloud: Complete Suite of Integrated Services
Application
Services

Global
Human
Resources

Social
Services

Platform
Services

Database

Infrastructure
Services

28

Talent
Management

Sales

Social
Marketing

Database
Backup

Object
Storage

Copyright © 2013, Oracle and/or its affiliates. All rights reserved.

Marketing

Social Engagement &
Monitoring

Java

Compute

Developer

Enterprise
Resource
Planning

Service

Social
Network

Mobile

Messaging

Social Data
& Insight

Documents

Cache

Enterprise
Performance
Management

Business
Intelligence

Identity

Cloud
Marketplace

Sync
10 Cloud Myths
1. Everything will go to the public cloud
2. You’re either cloud or you’re not
3. Clouds are one size fits all
4. Virtualization = Cloud
5. Reducing cost is the biggest benefit of cloud
6. Clouds run on commodity components
7. Cloud will lock you in
8. Cloud is all pay-per-use
9. Public clouds are not secure
10. Choose best of breed clouds for every need
29

Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
Summary
• Myths about cloud computing continue to abound –
don’t buy into them!
• Do your homework and understand your cloud options
and how each impacts your business
• By making the right choices, cloud computing can offer
your business choice, value and flexibility

30

Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
Join the Conversation
www.facebook.com/OracleCloudComputing
@OracleCloudZone

#OracleCloud

https://blogs.oracle.com/cloud
Learn more:
Try now:

31

oracle.com/cloud
cloud.oracle.com

Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
facebook.com/CloudOdyssey
32

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33

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Cloud expo 10 myths rex wang oracle ss

  • 1. Ten Myths of Cloud Computing Rex Wang Vice President, Oracle November 4, 2013 Cloud Expo Silicon Valley 1 Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
  • 2. The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle. 2 Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
  • 3. Understanding Cloud We’ve Come a Long Way…Or Maybe Not In a recent survey of over 1,000 adult Americans: • 51% believe stormy weather can interfere with cloud computing • 54% think they hardly or never use the cloud, but… 95% use online shopping, banking, file sharing • 22% admit that they’ve pretended to know what the cloud is • 59% believe the “workplace of the future” will exist entirely in the cloud Source: Wakefield Research 3 Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
  • 4. Myth #1: Everything Will Go to the Public Cloud 4 Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
  • 5. Private and Public Cloud Adoption 40% 37% Percent of Customers 35% 30% 25% 29% 26% 20% 15% Private Cloud Public Cloud 14% 10% 5% 0% 2010 Source: IOUG ResearchWire, Aug-Sept 2010 and Aug-Sept 2012 5 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. 2012
  • 6. Myth #2: You’re Either Cloud or You’re Not 6 Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
  • 7. Cloud Is an Evolution Traditional Silos Consolidated Private Cloud Public Cloud • Physical • Virtual • Self-service • Specialized • Dedicated • Shared • Auto-scaling • Shared • Heterogeneous • Standardized • Metering & chargeback • Standardized Hybrid Cloud • Federation across public & private • Interoperability • Cloudbursting Start with consolidation • Extend to private cloud • Use public cloud where appropriate 7 Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
  • 8. Myth #3: Clouds Are One Size Fits All 8 Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
  • 9. Service Types: IaaS, PaaS, SaaS Business End User Customizations Customizations Application Application Platform SaaS Cloud Service Provider PaaS Cloud IaaS Cloud Key Driver 9 Consolidation App Development New Capability Cost Savings Focus Speed Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Service Provider Developer Customizations Consumer IT Professional Consumer Different Users
  • 10. Deployment Models: Private, Public, Hybrid, Managed Hybrid Cloud Private Cloud Public Cloud Managed Cloud 10 Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
  • 11. Myth #4: Virtualization = Cloud = 11 Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
  • 12. PaaS Outpacing IaaS 0% 10% 20% 30% 40% 50% 60% Application Server as a Service Private Platform as a Service (PaaS) 2010 Identity as a Service Public 2010 Infrastructure as a Service (IaaS) Source: IOUG ResearchWire, Aug-Sept 2010 and Aug-Sept 2012 12 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Compute as a Service 2012 2012
  • 13. Consolidation at PaaS and IaaS Layers Consolidate onto standard, shared and elastically scalable PaaS App App App App App PaaS App App App PREFERRED: Reduced operational cost, complexity and application development time App Unchanged operational cost and complexity Consolidate onto shared IaaS without standardization 13 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. IaaS Reduced cost of hardware, power, cooling
  • 14. Oracle Database 12c First Database Designed for Cloud • Multiple Pluggable Databases in shared Container Database • Isolation and multitenancy • More efficient resource utilization • More efficient administration – “manage many as one” • Easy to provision, move, clone, upgrade • No application changes 14 Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
  • 15. Myth #5: Reducing Cost Is the Biggest Benefit of Cloud 15 Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
  • 16. Cloud Benefits Cost Savings 16 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Elasticity Insert Information Protection Policy Classification from Slide 12 of the corporate presentation template Speed
  • 17. Myth #6: Clouds Run on Commodity Components 17 Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
  • 18. From Best-of-Breed to Engineered Systems Best-of-Breed System Elements Customer integrated 18 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Optimized Solutions Engineered Systems Predictable, lower risk guided deployments Extreme performance, efficiency
  • 19. Myth #7: Cloud Will Lock You In 19 Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
  • 20. Cloud Is About Choice, Value and Flexibility - Mark Schissel, SVP and CIO Herbalife 20 Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
  • 21. Cloud and the Challenge of Lock-In Does Your Cloud Stack Up? • Built on industry standards • Applications available across public and private clouds and on-premises • No application code changes when moving between clouds • Open, robust APIs for easy data access Look for standards-based solutions, portability of apps, and data accessibility 21 Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
  • 22. Myth #8: Cloud Is All Pay-Per-Use 22 Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
  • 23. Cloud Pricing Varies Widely Pay Per Use (Variable Cost) Subscription (Fixed Cost) Sample Metric • • • • • Pros/Cons More flexible, less predictable cost More predictable costs, less flexible Best For • Temporary environments • Apps with significant workload fluctuations • Long-lived applications • Apps with steady-state workloads Use Cases Dev/Test environments, retail websites, social apps Core business apps (ERP, CRM, HCM, etc.) Per compute hour Per GB stored Per API request Per GB bandwidth etc. Per seat per month Choose a pricing model that best fits your needs 23 Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
  • 24. Myth #9: Public Clouds Are Not Secure 24 Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
  • 25. Organizations Can Often Improve Security With Enterprise-Grade Public Clouds Do It Yourself Oracle Cloud • Limited security resources & expertise • Dedicated team of cloud security experts • Challenges meeting regulatory requirements • Compliance with global regulatory & industry standards • Security audits & assessments not performed regularly, if at all • Regular third-party security audits & assessments • Outdated hardware/software • Automatic hardware/software updates Not all cloud security is equal • Understand your cloud provider’s security practices 25 Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
  • 26. Myth #10: Choose Best of Breed Clouds for Every Need ERP CRM 26 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Custom App HCM
  • 27. Integration with Multiple Specialized Clouds Know the Potential Challenges Survey of 1,355 business managers: • 54% experienced staff downtime due to integration problems with their cloud apps • 52% missed business deadlines because of poor integration of cloud apps from multiple vendors • 75% had innovation initiatives stunted by integration problems with cloud apps and related workflows • 64% were unable to integrate their cloud apps with other enterprise apps Consider the challenges of integrating multiple clouds Source: Independent market research conducted by Dynamic Markets in May 2013; Cloud for Business Managers: the Good, the Bad and the Ugly. 27 Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
  • 28. Oracle Cloud: Complete Suite of Integrated Services Application Services Global Human Resources Social Services Platform Services Database Infrastructure Services 28 Talent Management Sales Social Marketing Database Backup Object Storage Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Marketing Social Engagement & Monitoring Java Compute Developer Enterprise Resource Planning Service Social Network Mobile Messaging Social Data & Insight Documents Cache Enterprise Performance Management Business Intelligence Identity Cloud Marketplace Sync
  • 29. 10 Cloud Myths 1. Everything will go to the public cloud 2. You’re either cloud or you’re not 3. Clouds are one size fits all 4. Virtualization = Cloud 5. Reducing cost is the biggest benefit of cloud 6. Clouds run on commodity components 7. Cloud will lock you in 8. Cloud is all pay-per-use 9. Public clouds are not secure 10. Choose best of breed clouds for every need 29 Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
  • 30. Summary • Myths about cloud computing continue to abound – don’t buy into them! • Do your homework and understand your cloud options and how each impacts your business • By making the right choices, cloud computing can offer your business choice, value and flexibility 30 Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
  • 31. Join the Conversation www.facebook.com/OracleCloudComputing @OracleCloudZone #OracleCloud https://blogs.oracle.com/cloud Learn more: Try now: 31 oracle.com/cloud cloud.oracle.com Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
  • 32. facebook.com/CloudOdyssey 32 Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
  • 33. 33 Copyright © 2013, Oracle and/or its affiliates. All rights reserved.