Onyx cloud & business opportunities deck v0.6
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My take on the importance of cloud computing and the related market opportunity. Less analyst numbers, more my take on what's next.
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Onyx cloud & business opportunities deck v0.6
- 1. The importance of cloud computing & market opportunity Justin Souter Souter Consulting Limited 05/07/2010 1 © Justin Souter 2010
- 2. Situation for Onyx You provide network connectivity data hosting network security and managed services Onyx Resilient Backbone etc. Customers – Sage, Vattenfall, Optical Express, Aberdeen Harbour 05/07/2010 © Justin Souter 2010 2
- 3. Challenges #1 Cloud means that customers can store data in the Cloud instead of Onyx Also host their own applications Could Cloud providers offer applications to customers in a more compelling way than Onyx? What are you customers saying? 05/07/2010 © Justin Souter 2010 3
- 4. Challenges #2 Price could be compelling (although performance?) Potentially very disruptive So what to do? Feedback? 05/07/2010 © Justin Souter 2010 4
- 5. Onyx Cloud offering 05/07/2010 © Justin Souter 2010 5
- 6. Context 05/07/2010 © Justin Souter 2010 6
- 7. The World of Work is changing “Do more with less” Global competition Global supply chains Continuous improvement Ubiquitous computing Internet Web: sharing *information* Web Services / SOA: sharing *data* 05/07/2010 © Justin Souter 2010 7
- 8. Old forms of organising are becoming a drawback Old forms will remain but others will proliferate E.g. Ford production line: Craft became Machine – what will today’s example be? “Does IT Matter?” – article about IT provision 05/07/2010 © Justin Souter 2010 8
- 9. Organising #2 Electricity example – extent of change? The Big Switch: mills become factories & are freed from water sources Technology focus becomes more about ROI than implementation Time to implementation plummets 05/07/2010 © Justin Souter 2010 9
- 10. This translates into Pressure on all parts of the organisation, both public & private sector How to respond to green / environmental concerns? Questioning of existing IT delivery model 05/07/2010 © Justin Souter 2010 10
- 11. Translation #2 We’ve got IT outsourcing, can we do better? Potential to be very disruptive to existing systems integrators The Big Switch – how will IT provision from The Cloud change things? E.g. cloud provider or integrator? 05/07/2010 © Justin Souter 2010 11
- 12. THE IMPORTANCE OF CLOUD COMPUTING 05/07/2010 © Justin Souter 2010 12
- 13. High level Save money by eliminating hardware that’s not absolutely necessary Make things happen quicker – provision via credit card Help make IT function more aligned to the business Usingboth private & public cloud Flexible IT infrastructure Buy temporary capacity Reorganise your datacentre whilst maintaining delivery 05/07/2010 © Justin Souter 2010 13
- 14. High level #2 Make the FD happy by not always asking for precious cash for kit Make IT projects happen which wouldn’t have otherwise Lower risk by greater testing in Cloud Greener IT? Retire old kit & keep little-used apps available Not constrained by dearth of electricity 05/07/2010 © Justin Souter 2010 14
- 15. Also Reduce CO2 emissions by moving virtual instances around Like the idea of Managed service + cloud facility on the same subnet 05/07/2010 © Justin Souter 2010 15
- 16. Benefits – business *&* technical Lower capital outlay – Rozmic case study Low investment: capex & time-to-live Speed to market Pay per use – stop paying when you’re not using Contract terms: by the hour Scalability & elasticity 05/07/2010 16 © Justin Souter 2010
- 17. Benefits #2 Keeps the VCs away – no need for massive infrastructure investment à la Dot Bomb Allow you to maintain use of existing facilities (in concert with virtualisation) Spec your application hardware for base load, not for peaks Underlying architecture must necessarily be ‘agile’, ready for it Application Programming Interface gives control 05/07/2010 © Justin Souter 2010 17
- 18. Vs managed hosting Managed Hosting Customer can touch their kit, meet real people managing it Everything’s under control SLAs and Service Management – someone to beat if it goes wrong Until virtualisation, expensive & over-provisioned Cloud provision Scalability, elasticity Speed to live Both are OpEx really Public cloud needs careful design & failover planning Private cloud gives benefits of both worlds? 05/07/2010 © Justin Souter 2010 18
- 19. Cloud computing 05/07/2010 © Justin Souter 2010 19
- 20. Fulfilment of On-demand computing? Internal Cloud External Cloud Combination Cf Virtualisation VMWare’s virtual datacentre OS vCloud – standardisation Which horse for which course? 05/07/2010 20 © Justin Souter 2010 http://www.jroller.com/MasterMark/resource/_enterprise-cloud-6.1.jpg
- 21. Use Cases Props to the Open Cloud Manifesto http://www.opencloudmanifesto.org/resources.htm http://www.scribd.com/doc/18172802/Cloud-Computing-Use-Cases-Whitepaper Following are their graphics from v3.0 (CC BY-SA) 05/07/2010 © Justin Souter 2010 21
- 22. 05/07/2010 © Justin Souter 2010 22
- 23. 05/07/2010 © Justin Souter 2010 23
- 24. 05/07/2010 © Justin Souter 2010 24
- 25. There’s always a but! 05/07/2010 © Justin Souter 2010 25
- 26. BUT Remember that most customers operate heterogeneous infrastructure People are risk-averse vis-a-vis technology There is a lot of inertia Also remember hype cycle Can you use the Cloud with your ICL mainframe? Although latterly the OS seemed to be updated to run on Windows?? 05/07/2010 © Justin Souter 2010 26
- 27. Downsides ≠ Computing as we know it: “ephemeral” [let me explain!] Ma.gnolia example / AWS outages Security Will it work with your existing infrastructure? Will your apps need a re-design? Sharp intake of breath – it’s new, can we trust it? Cf Outsourcing (although not identical set of issues) Is Service Management ‘infrastructure’ in place yet? 05/07/2010 © Justin Souter 2010 27
- 28. Downsides Patriot Act SLA or mirage? Information assurance concerns Where’s the risk / return point for most organisations? On-board – off-boarding Inter-operability standards Fear / scary Though biggest issues perhaps is people? 05/07/2010 © Justin Souter 2010 28
- 29. RAID Risks Assumptions Issues Dependencies 05/07/2010 © Justin Souter 2010 29
- 30. Risks Your Cloud provider evaporates Your comms are compromised Physical Security You haven’t got your architecture sorted and Your data disappears Your existing applications don’t work too well with cloud You don’t have failover to another provider sorted, and your service goes down 05/07/2010 © Justin Souter 2010 30
- 31. Assumptions You’ll have enough bandwidth Business people understand the complexities of Cloud There are skills available to help crack tech issues You, as IT Manager will get credit for doing more with less Your data pipes are resilient 05/07/2010 © Justin Souter 2010 31
- 32. Issues Difficult to swap between providers Business opportunity for Steve & Arjuna! Do business people understand cloud, or is it just the techie? If so, this will limit uptake 05/07/2010 © Justin Souter 2010 32
- 33. Dependencies Skills Bandwidth External providers Integration software Major vendors Electricity The status quo not changing too dramatically (e.g. India & China catch-up & speed past) Recession can be overcome 05/07/2010 © Justin Souter 2010 33
- 34. Market Opportunity 05/07/2010 © Justin Souter 2010 34
- 35. Opportunity If Onyx doesn’t do it, someone else will If customers get used to doing it for themselves, they’ll do it for more than hosting N.b. “Cloud computing: We don't understand it or we don't need it, say SMEs” 05/07/2010 © Justin Souter 2010 35
- 36. Unfreeze – Change – Refreeze Customers will be risk-averse until situation arises where they need to take strategic decision Run out of room in their data centre Hardware blows up / data centre catches fire Change of business direction dictates tech change Business wants to outsource IT Dept. 05/07/2010 © Justin Souter 2010 36
- 37. Packages that customers could buy Greenfield small businesses Ross Cooney’s bed & breakfast idea Test environments Peaking websites Less risky – archiving perhaps Massive processing requirements What can we do now that we couldn’t do before? 05/07/2010 © Justin Souter 2010 37
- 38. Players / competition Amazon Web Services MS Azure Google App Engine Rightscale Aserver / DaaS Flexiant / Flexiscale / Extility SymmetriQ Cloudsoft Others Emerging local cluster Onyx Arjuna Emailcloud / Rozmic Inkspot Souter Consulting 05/07/2010 38 © Justin Souter 2010
- 39. Latest thoughts Reduce costs, increase flexibility Change the way businesses operate How can Cloud be the ‘friend’ of IT Managers / CTOs – so they don’t get outsourced Can Onyx play in this space – “move up the food chain”? Love the idea of Sage & spinning up instances on AWS instead of building a multi-tenant architecture for existing software 05/07/2010 © Justin Souter 2010 39
- 40. Issues How to bridge the chasm from now to future Systems integrators become Cloud Integrators? E.g. Okere, Cloud Sherpas Become a Cloud integrator, or Cloud provider Security issues Practical, technical issues – needs a ‘wrapper’ Confidence / mainstream / hype cycle 05/07/2010 © Justin Souter 2010 40
- 41. Call to action IMO there is a big market opportunity Service provider, integrator, user This is the perfect time to be playing in this area The Economist says: “people want the same for less money” IT shops are being asked to do more with less money / people Chance to create critical mass locally, building on what’s going on already 05/07/2010 © Justin Souter 2010 41
- 42. Next Steps Customer scenarios that Sales teams can take to market Pros and cons to match customer needs Appropriate market segments Hosted vs Cloud exposition Customer education – at business level Cloud integrator and/or provider Competitor / gap analysis 05/07/2010 © Justin Souter 2010 42
- 43. Souter Consulting Limited 05/07/2010 © Justin Souter 2010 43 What can I do for you? Please contact me to see how we can work together! Justin Souter Justin.souter@souterconsulting.eu http://twitter.com/souterconsults http://souterconsulting.eu 07717 725504
- 44. Umm, so what do you need? Can you use SQL databases, or do you need different tool that is scalable? StormMQ is a potential example of offering something that wasn’t possible before? 05/07/2010 © Justin Souter 2010 44
Editor's Notes
- Good evening everyone, my name is Justin SouterI worked at a European System Integrator called Fujitsu Services for nearly 10 yearsI now have my own consultancy business, offering advice in technology strategy, collaboration and information management (e.g. SharePoint) – with a specialism in Web 2.0 & social mediaRoss asked me to give you an introductionGiven the limited time slot, I would like to take any questions at the end, please.I imagine many issues will be resolved by the speakers who follow me.
- Coase's LawIn the chapter The Perfect Storm, the authors give an overview of the economic effects of the kind of transactions Web 2.0 permits. According to the authors, Coase's Law (see Ronald Coase) governs the expansion of a business:A firm will tend to expand until the cost of organizing an extra transaction within the firm become equal to the costs of carrying out the same transaction on the open market.[6]However, because of the changing usage patterns of Internet technologies, the cost of transactions has dropped so significantly that the authors assert that the market is better described by an inversion of Coase's Law. That is:A firm will tend to expand until the cost of carrying out an extra transaction on the open market become equal to the costs of organizing the same transaction within the firm.[6]Thus, the authors think that with the costs of communicating dramatically dropping, firms who do not change their current structures will perish. Companies who utilize mass collaboration will dominate their respective markets.http://en.wikipedia.org/wiki/Wikinomics
- Don’t want to spoil Ross’s thunder
- Virtualisation exampleGovt. Dept. at which I worked for FSEach application went on a separate hardware box – we thought it crackersNow you can run more than one operating system on the same piece of hardware
- Most of you will have many different applications, operating systems and hardware in your data centresSo, how do we get all of that working with cloud computing – internal as well as external?Hopefully tonight will help you understand this betterEphemeral – software is just computer code, but we associate the benefits of software usually through using a physical computer, or else having the application hosted on a real box in the server roomNow though, the server could be anywhereDifferent set of issues if things go wrong – how do you fix them?
- Others joined the roster after I put this deck together
- What will the stack of skills be to help the Customer make the most of the Cloud, and Cloud computing?
- Like the example of Electricity used by Nicholas Carr is his book on Cloud computing, “The Big Switch”, perhaps the changes associated with Cloud computing are only just starting?
- Like to make a quick plug for Thinking Digital “Thinking Digital is an annual conference where the world's greatest thinkers and innovators gather to inspire, to entertain, and to discuss the latest ideas and technologies.”13-15th May at the Sage Gateshead Connect North East security conference “The second CONNECT North East annual investment conference will provide a unique platform for young technology companies producing answers to some of Britain’s most pressing security problems. Nine companies will have the chance to pitch for between £250,000 and £1m of funding on the day.”Tuesday 28th April, Sedgefield