Cloud Computing: Future of  InfrastructureValue Destruction to Value CreationHP CTO SummitNew Jersey, USASurendraReddyMarch 24, 2010
(c) 2003-2010 Optena Corp.2Source:  Serving the World’s Poor, Profitably by C.K. Prahalad and Allen Hammond
High Cost Economy of Bottom 4B(c) 2003-2010 Optena Corp.3Source:  Serving the World’s Poor, Profitably by C.K. Prahalad and Allen Hammond
Changing Mindset(c) 2003-2010 Optena Corp.4
(c) 2003-2010 Optena Corp.5Source:  Serving the World’s Poor, Profitably by C.K. Prahalad and Allen Hammond
“If there is any period one would desire to be born in, is it not the age of revolution when the old and the new stand side by side, when the energies of all men are searched by fear and the hope, when the historic glories of the old can be compensated by the rich possibilities of of the new?”Ralph W. Emerson
Exploding number of application on mobile device pushes back the power to the edges
More and More Channels are emerging to serve the information hungry Humans and Machines
Technology Begets Computation(c) 2003-2010 Optena Corp.9Source: Based on Ray Kurzweil  Singularity is Near and updated by http://www.flickr.com/photos/jurvetson/43121225/sizes/l/in/set-42234/
	the technological advances enabling machines to analyze problems without “educated incapacities” or “cognitive biases”, analyze risks, simulate alternate choices, and make rapid decisions…(c) 2003-2010 Optena Corp.10
Are we reaching Singularity?“It’s a future period during which the pace of technological change will be so rapid, its impact so deep, that human life will be irreversibly transformed.” – Ray Kurzweil
Globalization and Consumerization makes enterprises more vulnerable than ever beforeBoardrooms to War-Rooms
Manufacturing of TomorrowIntelligent ManufacturingMachine-Machine IntelligenceLeadership through smart manufacturing Educationwhat is good for what circumstances?EntertainmentMonetize your branding and marketing efforts through entertainmentConsumer attention is what it counts – not how big is your advertisement budget (c) 2003-2010 Optena Corp.13
Food and DrugsIntelligent Farming/PharmingKnow who wants what/get closer to understand what they need? When they need? How to economically deliver them? Many small lots with hefty premiumsEducationUse Customer for your innovation and marketing – they are powerful and center to their social universeEntertainmentFood and Drug recalls are expensive and damages Transform crisis into opportunity by knowing them better and engaging them better(c) 2003-2010 Optena Corp.14
And, Network is the Engine of this Innovation….(c) 2003-2010 Optena Corp.15
Who is the King? Consumer or Content ?(c) 2003-2010 Optena Corp.16
One who deliversInformation + Education + Entertainment  gets  Consumer attention(c) 2003-2010 Optena Corp.17
State of the Union of IT and Business(c) 2003-2010 Optena Corp.18
So, Does IT Matter?(c) 2003-2010 Optena Corp.19X
Economic ClimateThe economic climate has caused many organizations to revisit base assumptions, such as how long to hold on to servers, how many vendors to work with for a given platform/operating environment, and how to best-utilize personnel and deal with skill shortages. Aging IT infrastructures have forced many organizations to rethink traditional, incremental technology improvement programs, and to focus instead on a holistic IT modernization program(c) 2003-2010 Optena Corp.20
Cloud ComputingNew deployment and operational model for delivering new services rapidly
Joe’s Great Wisdom on Economics of Cloudhttp://www.cloudonomics.com/(c) 2003-2010 Optena Corp.22
Cloud Computing: EnablersVirtualizationVirtual servers, virtual storage and virtual networkingAutomation is the KeyThey automate server/VM; storage, network, platform, and application provisioning(c) 2003-2010 Optena Corp.23
Pillars of Cloud ComputingSelf-service Graphical user interface or an application programming interfaceService ManagementService delivery is managed through automation, and metered use is tracked. (c) 2003-2010 Optena Corp.24
Pillars of Cloud ComputingElastic data center architecturesApplications and data run on big, flat processor and storage pools, taking as much as needed and releasing unused resources when they are no longer necessaryOperational Support SystemOperational processes to support the service are automated as much as possible, reducing the need for manual intervention. (c) 2003-2010 Optena Corp.25
Pillars of Cloud ComputingStandardized workloadsWant to build a high-volume business? Cut the number of product variations. Rapid provisioningCustomers order resources and/or applications via a Web No waiting for the vendor to order, install, and configure equipment, and no extended contract negotiation. Telco-grade billingProvide a simple price sheet and billing and reporting systems that help an IT organization manage its costs(c) 2003-2010 Optena Corp.26
Cloud Computing: Disruptive ElementsRedefining Economies of Scaleallows small companies to enjoy the low unit cost for scalingCompressed Transaction CostsAllowing companies to significantly enhance the richness of the information and interactivity(c) 2003-2010 Optena Corp.27Credits: Joe Weinman, Cloudonomics.com
Cloud Computing: Disruptive ElementsEnabling Real-time EnterpriseEnables companies to respond to changing business conditions and opportunities much fasterEnabling User Driven InnovationCollaborate and Co-Create with your customersAvailability and Reliability at Fractional CostAchieve extremely high reliability architecture(c) 2003-2010 Optena Corp.28
Network:Powering the Engines of InnovationPowering the Last Mile Importance of reliable access with SLAsDesign for ChangeChanging application environments, user expectations and network services demand that architects expand their thinking to ensure that the network supports new business requirements. New Dimensions in Network DesignLocation, Users, Applications, Devices, and Business Processes(c) 2003-2010 Optena Corp.29
Power of Cloud Computing(c) 2003-2010 Optena Corp.30
“A man who carries a cat by the tail learns something he can learn in no other way.”                                                             – Mark Twain
Cloud Computing: Challenges(c) 2003-2010 Optena Corp.32
Applications MobilityWhat is Application Mobility?Ability to move applications from one location to other depends on demand, cost parameters, or to deal with disaster recovery etc(c) 2003-2010 Optena Corp.33
Apps-in-the-SkyApplication Containersthe application contained in a single server, a single image’s stack?the application as an n-tier ensemble of servers?Where scale-out & loose coupling are the rules?a structured, composed constellation of servers?Uses VLANs, port filters for isolation & security?(c) 2003-2010 Optena Corp.34
Network in Cloud EraReliance on independently operated infrastructures to hide the details of application safety, performance, resilience, and economics.  (c) 2003-2010 Optena Corp.35
Cloud: Promise to FulfillmentMoving Legacy ApplicationsBoxed in applicationsVM based approach to move these applications into CloudCreating New “Greenfield” Cloud ServicesMove ‘up the stack’Platform as the building blocks of application construction.  (c) 2003-2010 Optena Corp.36
Security, Data Privacy, and IPLoss of Competitive Advantage,Increased costs of data disclosure,Possibility of illegal or unauthorized transaction enabled by data leak
Management & VisibilityLack of management tools and end-to-end business process visibilityInability to configure and deploy complex business processes
Meta-data & InteroperabilityLack of meta-data for end-to-end business processes, Transaction Processing across service providers
Discussion(c) 2003-2010 Optena Corp.40
Trends and Countertrends are Powerful Market Movers(c) 2003-2010 Optena Corp.41
Reality – Pulse of the Customers(c) 2003-2010 Optena Corp.42Source: Forrester Research
Countertrend	Virtualization is driving the IT industry towards an optimized infrastructure and ensure that they are creating an agile and integrated framework that subsumes the deployment of the server, network and storage – accelerating the application deployment by many fold(c) 2003-2010 Optena Corp.43
TrendShift in Vendor StrategiesCisco entering the server market, the HP acquisition of 3Com, or the Virtual Computing Environment (VCE) partnership between Cisco, EMC and vmware will impact IT organizations The benefits touted include greater agility, flexibility and efficiency(c) 2003-2010 Optena Corp.44
CountertrendHow will the competitive landscape evolve for server operating systems (OSs)Windows, AIX, HP-UX, Solaris, Linux and z/OS? New technologies, new modes of computing, and infrastructure virtualization and automation are changing the architecture and role of the OS. VMs will become the norm on the server, with increased use on the client as well, creating a new control point below the OS. Appliances — based on a VM architecture — will make modular/customized (lightweight) OSs interesting and useful.(c) 2003-2010 Optena Corp.45
Trend: Applications in the SkyThe emerging wave of cloud computing represents a major shift in IT. This is not a single transition, but rather multiple parallel paths of evolution, at different levels of the technology stack. (c) 2003-2010 Optena Corp.46
CountertrendWe see the demand for different layers of the classic technology stack “in the sky”Storage (Amazon Simple Storage Service [Amazon S3]), Database (Amazon SimpleDB, Google Bigtable and Microsoft SQL Data Services), Raw computing power (Amazon Elastic Compute Cloud [EC2]), Programming language environments (Google App Engine, Heroku, Bungee Connect and Microsoft Azure Services Platform), Application-centric platforms (salesforce.com'sForce.com) ,and Applications themselves (Microsoft Dynamics).(c) 2003-2010 Optena Corp.47
TrendsProliferation of Smart devices Exploding number of application on mobile device pushes back the power to the edgesPushing new variant of client server applicationsExploding number of Mobile Apps(c) 2003-2010 Optena Corp.48
CountertrendApp Store for CloudLooking further into the future, cloud platforms will have more-direct support for monetization and managementLinking monetization to reputation-based reuse will have a powerful effect in accelerating the evolution of solutions targeted to diverse market requirements(c) 2003-2010 Optena Corp.49
Open Cloud Consortiumopencloudconsortium.org(c) 2003-2010 Optena Corp.50
Open Cloud Consortium501(3)(c) Not-for-profit corporationDefine and Promote StandardsSupports the development of standards, interoperability frameworks, and reference implementations.Manages cloud computing infrastructure to support scientific researchOpen Cloud Testbed and  Intercloud Testbed.Open Science Data Cloud.Develops benchmarks.(c) 2003-2010 Optena Corp.51
MembersCompaniesAerospace, Booz Allen Hamilton, Cisco, InfoBlox, Open Data Group, Optena, Raytheon, YahooUniversitiesCalIT2, Johns Hopkins, MIT Lincoln Lab, Northwestern Univ., University of Illinois at Chicago, University of ChicagoGovernment agenciesNASAOpen Source ProjectsSector Project(c) 2003-2010 Optena Corp.52
Working GroupsLarge Data CloudOpen Cloud TestbedIntercloud MetadataVirtual Networking (c) 2003-2010 Optena Corp.53
OCC Testbed(c) 2003-2010 Optena Corp.54C-WaveCENICDragonPhase 29 racks250+ Nodes1000+ Cores10+ Gb/s Hadoop
Sector/Sphere

HP CTO Summit, New Jersey, March 24, 2010

  • 1.
    Cloud Computing: Futureof InfrastructureValue Destruction to Value CreationHP CTO SummitNew Jersey, USASurendraReddyMarch 24, 2010
  • 2.
    (c) 2003-2010 OptenaCorp.2Source: Serving the World’s Poor, Profitably by C.K. Prahalad and Allen Hammond
  • 3.
    High Cost Economyof Bottom 4B(c) 2003-2010 Optena Corp.3Source: Serving the World’s Poor, Profitably by C.K. Prahalad and Allen Hammond
  • 4.
  • 5.
    (c) 2003-2010 OptenaCorp.5Source: Serving the World’s Poor, Profitably by C.K. Prahalad and Allen Hammond
  • 6.
    “If there isany period one would desire to be born in, is it not the age of revolution when the old and the new stand side by side, when the energies of all men are searched by fear and the hope, when the historic glories of the old can be compensated by the rich possibilities of of the new?”Ralph W. Emerson
  • 7.
    Exploding number ofapplication on mobile device pushes back the power to the edges
  • 8.
    More and MoreChannels are emerging to serve the information hungry Humans and Machines
  • 9.
    Technology Begets Computation(c)2003-2010 Optena Corp.9Source: Based on Ray Kurzweil Singularity is Near and updated by http://www.flickr.com/photos/jurvetson/43121225/sizes/l/in/set-42234/
  • 10.
    the technological advancesenabling machines to analyze problems without “educated incapacities” or “cognitive biases”, analyze risks, simulate alternate choices, and make rapid decisions…(c) 2003-2010 Optena Corp.10
  • 11.
    Are we reachingSingularity?“It’s a future period during which the pace of technological change will be so rapid, its impact so deep, that human life will be irreversibly transformed.” – Ray Kurzweil
  • 12.
    Globalization and Consumerizationmakes enterprises more vulnerable than ever beforeBoardrooms to War-Rooms
  • 13.
    Manufacturing of TomorrowIntelligentManufacturingMachine-Machine IntelligenceLeadership through smart manufacturing Educationwhat is good for what circumstances?EntertainmentMonetize your branding and marketing efforts through entertainmentConsumer attention is what it counts – not how big is your advertisement budget (c) 2003-2010 Optena Corp.13
  • 14.
    Food and DrugsIntelligentFarming/PharmingKnow who wants what/get closer to understand what they need? When they need? How to economically deliver them? Many small lots with hefty premiumsEducationUse Customer for your innovation and marketing – they are powerful and center to their social universeEntertainmentFood and Drug recalls are expensive and damages Transform crisis into opportunity by knowing them better and engaging them better(c) 2003-2010 Optena Corp.14
  • 15.
    And, Network isthe Engine of this Innovation….(c) 2003-2010 Optena Corp.15
  • 16.
    Who is theKing? Consumer or Content ?(c) 2003-2010 Optena Corp.16
  • 17.
    One who deliversInformation+ Education + Entertainment gets Consumer attention(c) 2003-2010 Optena Corp.17
  • 18.
    State of theUnion of IT and Business(c) 2003-2010 Optena Corp.18
  • 19.
    So, Does ITMatter?(c) 2003-2010 Optena Corp.19X
  • 20.
    Economic ClimateThe economicclimate has caused many organizations to revisit base assumptions, such as how long to hold on to servers, how many vendors to work with for a given platform/operating environment, and how to best-utilize personnel and deal with skill shortages. Aging IT infrastructures have forced many organizations to rethink traditional, incremental technology improvement programs, and to focus instead on a holistic IT modernization program(c) 2003-2010 Optena Corp.20
  • 21.
    Cloud ComputingNew deploymentand operational model for delivering new services rapidly
  • 22.
    Joe’s Great Wisdomon Economics of Cloudhttp://www.cloudonomics.com/(c) 2003-2010 Optena Corp.22
  • 23.
    Cloud Computing: EnablersVirtualizationVirtualservers, virtual storage and virtual networkingAutomation is the KeyThey automate server/VM; storage, network, platform, and application provisioning(c) 2003-2010 Optena Corp.23
  • 24.
    Pillars of CloudComputingSelf-service Graphical user interface or an application programming interfaceService ManagementService delivery is managed through automation, and metered use is tracked. (c) 2003-2010 Optena Corp.24
  • 25.
    Pillars of CloudComputingElastic data center architecturesApplications and data run on big, flat processor and storage pools, taking as much as needed and releasing unused resources when they are no longer necessaryOperational Support SystemOperational processes to support the service are automated as much as possible, reducing the need for manual intervention. (c) 2003-2010 Optena Corp.25
  • 26.
    Pillars of CloudComputingStandardized workloadsWant to build a high-volume business? Cut the number of product variations. Rapid provisioningCustomers order resources and/or applications via a Web No waiting for the vendor to order, install, and configure equipment, and no extended contract negotiation. Telco-grade billingProvide a simple price sheet and billing and reporting systems that help an IT organization manage its costs(c) 2003-2010 Optena Corp.26
  • 27.
    Cloud Computing: DisruptiveElementsRedefining Economies of Scaleallows small companies to enjoy the low unit cost for scalingCompressed Transaction CostsAllowing companies to significantly enhance the richness of the information and interactivity(c) 2003-2010 Optena Corp.27Credits: Joe Weinman, Cloudonomics.com
  • 28.
    Cloud Computing: DisruptiveElementsEnabling Real-time EnterpriseEnables companies to respond to changing business conditions and opportunities much fasterEnabling User Driven InnovationCollaborate and Co-Create with your customersAvailability and Reliability at Fractional CostAchieve extremely high reliability architecture(c) 2003-2010 Optena Corp.28
  • 29.
    Network:Powering the Enginesof InnovationPowering the Last Mile Importance of reliable access with SLAsDesign for ChangeChanging application environments, user expectations and network services demand that architects expand their thinking to ensure that the network supports new business requirements. New Dimensions in Network DesignLocation, Users, Applications, Devices, and Business Processes(c) 2003-2010 Optena Corp.29
  • 30.
    Power of CloudComputing(c) 2003-2010 Optena Corp.30
  • 31.
    “A man whocarries a cat by the tail learns something he can learn in no other way.” – Mark Twain
  • 32.
    Cloud Computing: Challenges(c)2003-2010 Optena Corp.32
  • 33.
    Applications MobilityWhat isApplication Mobility?Ability to move applications from one location to other depends on demand, cost parameters, or to deal with disaster recovery etc(c) 2003-2010 Optena Corp.33
  • 34.
    Apps-in-the-SkyApplication Containersthe applicationcontained in a single server, a single image’s stack?the application as an n-tier ensemble of servers?Where scale-out & loose coupling are the rules?a structured, composed constellation of servers?Uses VLANs, port filters for isolation & security?(c) 2003-2010 Optena Corp.34
  • 35.
    Network in CloudEraReliance on independently operated infrastructures to hide the details of application safety, performance, resilience, and economics. (c) 2003-2010 Optena Corp.35
  • 36.
    Cloud: Promise toFulfillmentMoving Legacy ApplicationsBoxed in applicationsVM based approach to move these applications into CloudCreating New “Greenfield” Cloud ServicesMove ‘up the stack’Platform as the building blocks of application construction. (c) 2003-2010 Optena Corp.36
  • 37.
    Security, Data Privacy,and IPLoss of Competitive Advantage,Increased costs of data disclosure,Possibility of illegal or unauthorized transaction enabled by data leak
  • 38.
    Management & VisibilityLackof management tools and end-to-end business process visibilityInability to configure and deploy complex business processes
  • 39.
    Meta-data & InteroperabilityLackof meta-data for end-to-end business processes, Transaction Processing across service providers
  • 40.
  • 41.
    Trends and Countertrendsare Powerful Market Movers(c) 2003-2010 Optena Corp.41
  • 42.
    Reality – Pulseof the Customers(c) 2003-2010 Optena Corp.42Source: Forrester Research
  • 43.
    Countertrend Virtualization is drivingthe IT industry towards an optimized infrastructure and ensure that they are creating an agile and integrated framework that subsumes the deployment of the server, network and storage – accelerating the application deployment by many fold(c) 2003-2010 Optena Corp.43
  • 44.
    TrendShift in VendorStrategiesCisco entering the server market, the HP acquisition of 3Com, or the Virtual Computing Environment (VCE) partnership between Cisco, EMC and vmware will impact IT organizations The benefits touted include greater agility, flexibility and efficiency(c) 2003-2010 Optena Corp.44
  • 45.
    CountertrendHow will thecompetitive landscape evolve for server operating systems (OSs)Windows, AIX, HP-UX, Solaris, Linux and z/OS? New technologies, new modes of computing, and infrastructure virtualization and automation are changing the architecture and role of the OS. VMs will become the norm on the server, with increased use on the client as well, creating a new control point below the OS. Appliances — based on a VM architecture — will make modular/customized (lightweight) OSs interesting and useful.(c) 2003-2010 Optena Corp.45
  • 46.
    Trend: Applications inthe SkyThe emerging wave of cloud computing represents a major shift in IT. This is not a single transition, but rather multiple parallel paths of evolution, at different levels of the technology stack. (c) 2003-2010 Optena Corp.46
  • 47.
    CountertrendWe see thedemand for different layers of the classic technology stack “in the sky”Storage (Amazon Simple Storage Service [Amazon S3]), Database (Amazon SimpleDB, Google Bigtable and Microsoft SQL Data Services), Raw computing power (Amazon Elastic Compute Cloud [EC2]), Programming language environments (Google App Engine, Heroku, Bungee Connect and Microsoft Azure Services Platform), Application-centric platforms (salesforce.com'sForce.com) ,and Applications themselves (Microsoft Dynamics).(c) 2003-2010 Optena Corp.47
  • 48.
    TrendsProliferation of Smartdevices Exploding number of application on mobile device pushes back the power to the edgesPushing new variant of client server applicationsExploding number of Mobile Apps(c) 2003-2010 Optena Corp.48
  • 49.
    CountertrendApp Store forCloudLooking further into the future, cloud platforms will have more-direct support for monetization and managementLinking monetization to reputation-based reuse will have a powerful effect in accelerating the evolution of solutions targeted to diverse market requirements(c) 2003-2010 Optena Corp.49
  • 50.
  • 51.
    Open Cloud Consortium501(3)(c)Not-for-profit corporationDefine and Promote StandardsSupports the development of standards, interoperability frameworks, and reference implementations.Manages cloud computing infrastructure to support scientific researchOpen Cloud Testbed and Intercloud Testbed.Open Science Data Cloud.Develops benchmarks.(c) 2003-2010 Optena Corp.51
  • 52.
    MembersCompaniesAerospace, Booz AllenHamilton, Cisco, InfoBlox, Open Data Group, Optena, Raytheon, YahooUniversitiesCalIT2, Johns Hopkins, MIT Lincoln Lab, Northwestern Univ., University of Illinois at Chicago, University of ChicagoGovernment agenciesNASAOpen Source ProjectsSector Project(c) 2003-2010 Optena Corp.52
  • 53.
    Working GroupsLarge DataCloudOpen Cloud TestbedIntercloud MetadataVirtual Networking (c) 2003-2010 Optena Corp.53
  • 54.
    OCC Testbed(c) 2003-2010Optena Corp.54C-WaveCENICDragonPhase 29 racks250+ Nodes1000+ Cores10+ Gb/s Hadoop
  • 55.
  • 56.
  • 57.
  • 58.
    Thank Youblog: cloudrants.comfacebook.com/cloudwavetweet:@sureddyemail: sureddy@optena.com(c) 2003-2010 Optena Corp.55

Editor's Notes

  • #7 Ladies and Gentlemen. Good afternoon. It is a great honor to be here today. I would like to thank Jeff and Joe for inviting me to this summit.Ralph Waldo Emerson once asked his audience, “ if there is any period one would desire to be born in., is it not the age of revolution when the old and the new stand side by side, when the energies of all men are searched by fear and the hope, when the historic glories of the old can be compensated by the rich possibilities of of the new?”We too live in the age of revolution – with the globalization, collapse of three economies in succession in last 10 years – DotCommunism, followed by Housing, Finance, Insurance, and Banking industries all turned into rubbles due to the shakeout caused by fear and greed. As we emerge from these, we stand in the middle of new and old side by side, amidst the fear and hope, and glories of past and rich possibilities of new hopes and horizons.Dramatic emergence and dominance of globalization and hybrid organization driven by rapid change, competition, and new non-market environment emerging on us from all side. Next century is not going to be the same as before. Yesterday’s leaders may vanish tomorrow. I wanted to take this time to set the stage for all of us to think differently and see with an alien eye what are the new possibilities and opportunities in store for all us. How to set the stage to shape the future.
  • #9 A computer can remember billions or even trillions of facts perfectly while we are hard pressed to remember a handful of phone numbers. A computer can quickly search a database with billions of records in fractions of a second. Computers can readily share their knowledge bases. The combination of human-level intelligence in a machine with a computer's inherent superiority in the speed, accuracy, and sharing ability of its memory will be formidable.
  • #13 Cloud Computing enables companies to invest their resources in improving/streamlining their customer facing business processes and eliminate or reduce costly infrastructure plumbing. This shift from infrastructure operational innovation to business process innovation enables customer-driven innovation creating new avenues for growth and new business opportunities.