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This document summarizes a presentation on cloud computing given by Ron Batra of AT&T. It discusses the NIST definition of cloud computing, including its essential characteristics, service models, and deployment models. It also covers cloud computing use cases across different industry segments and delivery models. Finally, it discusses how to calculate the total cost of ownership for evaluating a potential move to the cloud.
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- 1. Session ID: CON7393 SessionTitle: Cloud Economics - A Business Case Approach Oracle Open World 2012 Ron Batra, Director, Cloud Computing October 1, 2012 © 2011 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are the property of their respective owners.
- 2. Speaker Bio Currently leads Product Development and Management for AT&T Hosting, Cloud and Application Services. •~18+ years cross industry technology experience in IT, Consulting and Product Management, in Sales, Delivery and Leadership roles from $500K to $20MM. •Oracle experience include Database, Apps and Middleware. •Industry vertical includes Energy, Utilities, Semi- Conductor, Telecom, Healthcare, Finance, Automotive, Aerospace, Retail •Served as an Oracle Deputy CTO – 2008-2009, •Serving as an Oracle ACE Director – since 2007 •Serve User Groups (IOUG, OAUG) in several capacities. 2
- 3. Contact Information www.linkedin.com/in/ronbatra @ronbatra rb9360@att.com +15129348659 3
- 4. Safe Harbor andDisclaimer Information contained in this presentation represents my views only. 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. All content is copyrighted and no reproduction in any format allowed, unless authorized by the author. 4
- 5. AT&T in theCloud Space 5 © 2011 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are the property of their respective owners.
- 6. AT&T is Focusedon Delivering Highly Secure, Reliable Cloud Building on a history in multi-tenancy Layered Security and infrastructure services Protects the Cloud • Global experience securing 38 data centers globally, with audited network, logical and physical controls • Broad experience managing and securing multi-tenant environments • Extensive experience providing Logical separation in virtual, shared infrastructures • Corporate wide focus on layered Physical security, including investment in AT&T Labs to combat cyber threats Network 6 © 2011 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are the property of their respective owners.
- 7. AT&T Cloud ArchitectJoins a Portfolio of Application Solutions Enterprise On-Demand AT&T Managed Solutions Client Self Service Managed AT&T Network z Self-service multi-tenant Managed virtualized multi- Managed virtualized Highly reliable physical public cloud tenant (virtual private) dedicated (private) infrastructure 7
- 8. AT&T Cloud Architect Flexible Options for Every Application Public Private Bare Metal Dedicated Instance Instance Server Server Instance/VM Hypervisor Server Hardware Physical Virtualized • General purpose • Uses similar to • High performance • Constant/ stable web applications public instances computing workloads • Development/ test • Plus compliance or • I/O intensive data • Dedicated server • Variable/ transient performance needs processing virtualization workloads • Database servers 8
- 9. Full Featured ServiceHelps You Create Your Cloud Deployment Public Private Bare Metal Dedicated Single Tenant Servers Virtual via Hypervisor Optional Hourly Billing Monthly Billing Provisioning Time Minutes Minutes Minutes 2-4 Hours Choose the Add-on Options and Features You Need, Including: • Software: OS, database, virtualization, control panel, utility • Network: bandwidth, port speed, IP addresses, load balancing, VPN access, content delivery • Monitoring: hardware and OS monitoring, system health monitoring, application monitoring • Security: Intrusion detection systems, firewalls, anti-virus and anti-spyware protection, SSL certificates • Storage: Backup, replication, snapshots, object-based storage • Other Options: Email delivery service, digital transcoding 9
- 10. Cloud Computing 101and NIST 10 © 2012 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property.
- 11. NIST Definition ofCloud Computing •Cloud computing is a model for enabling convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction. This cloud model promotes availability and is composed of five essential characteristics, three service models, and four deployment models. •Note 1: Cloud computing is still an evolving paradigm. Its definitions, use cases, underlying technologies, issues, risks, and benefits will be refined in a spirited debate by the public and private sectors. These definitions, attributes, and characteristics will evolve and change over time. •Note 2: The cloud computing industry represents a large ecosystem of many models, vendors, and market niches. This definition attempts to encompass all of the various cloud approaches Source: National Institute of Standards and Technology (NIST). 11
- 12. What is “CloudComputing”? “…a model for enabling ubiquitous, convenient, on-demand network access to a shared pool of configurable computing resources that can be rapidly provisioned and released with minimal management effort or service provider interaction.” - National Institutes of Standards and Technology 12 © 2011 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are the property of their respective owners.
- 13. 5 Essential Characteristics On Demand Self Service Broad Network Access Resource Pooling Rapid Elasticity Measured Service 13
- 14. Cloud Computing ServiceModels 14
- 15. Cloud Computing DeploymentModels VPN IaaS Virtual Private Cloud Public Hybrid IaaS IaaS SaaS PaaS Private 15
- 16. Cloud Computing ValuePropositions 16 © 2011 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are the property of their respective owners.
- 17. Top 3 CloudComputing Value Propositions Private Cloud 1. All about control 1. Costs 2. Deployment Strategy (Roadmap) 3. Timeline 4. Many more…. 2. Less security concerns – everything “inside” the firewall 3. Does not need a constant and reliable connection to the Internet 17
- 18. Top 3 CloudComputing Value Propositions Public Cloud 1. Much more control: 1. No need to build, just buy service(s). Can lead to leaner and 1. Over costs agile SDLC. 2. Roadmap 3. Timeline 2. Financial model shift – to Op Ex. from Cap Ex. 3. Scale capacity linearly as business grows. 18
- 19. Cloud Computing ValuePropositions Hybrid Cloud 1. Mix and Match Computing Services, as applicable 2. Leverage existing assets and infrastructure. 3. Good balance between control and trying a new paradigm 19
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- 21. Cloud Computing UseCases 21 © 2011 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are the property of their respective owners.
- 22. Cloud Computing UseCases Matrix Cross-Referenced by Segment, Delivery Model Use Case Segment Public Private Hybrid 1 Seasonal Capacity Enterprise IaaS, PaaS IaaS, PaaS IaaS, PaaS 2 Financial Model (Opex. Vs. Enterprise IaaS, PaaS, SaaS IaaS, PaaS, IaaS, PaaS, CapEx) SaaS SaaS 3 Non-Core Competency Enterprise IaaS, PaaS, SaaS IaaS, PaaS, IaaS, PaaS, SaaS SaaS 4 Outsourcing Enterprise IaaS, PaaS, SaaS IaaS, PaaS, IaaS, PaaS, SaaS SaaS 5 Short Life Cycle Projects Enterprise IaaS, PaaS IaaS, PaaS IaaS, PaaS 6 Disaster Readiness Enterprise IaaS, PaaS IaaS, PaaS IaaS, PaaS 7 Massively Scalable Computing Enterprise IaaS, PaaS IaaS, PaaS IaaS, PaaS 8 Infrastructure Consolidation Enterprise IaaS, PaaS, SaaS IaaS, PaaS, IaaS, PaaS, SaaS SaaS 9 Universal Access Consumer Pictures, Videos, N/A N/A other media 10 Data Center Real Estate/Capacity Enterprise IaaS, PaaS IaaS, PaaS IaaS, PaaS 22 Management
- 23. Cloud Computing ValueDrivers Why go Cloud ? 23
- 24. Cloud Computing UseCases Value Drivers Use Case Top 3 Business and Technology Drivers 1 Seasonal Capacity Capacity Gap and Application and Infrastructure Total Cost Duration Architecture 2 Financial Model Cash Flow Cost of Borrowing Total Cost 3 Non-Core Competency Organizational Direction Existing On-Premise Investment Application Portfolio 4 Outsourcing Organizational Direction Application Architecture Total Cost 5 Short Life Cycle Projects Capacity Gap and Application Architecture and Total Cost Duration Integration Cost 6 Disaster Readiness Degree of Business Recovery Time Objectives Total Cost Continuity Desired (RPO/RTO) 7 Massively Scalable Capacity Gap and Usage Application and Infrastructure Total Cost Computing Pattern (s) Architecture 8 Infrastructure Existing Footprint Economies of Shared Infrastructure Total Cost Consolidation 9 Universal Access Number of Devices Application Portability Total Cost 10 Data Center Real Existing Footprint Organizational Direction Relates to #3 Estate/Capacity and #4 Management 24
- 25. Calculating Cloud TotalCost of Ownership (TCO) 25
- 26. Total Cost ofOwnership – Page I For a Business evaluating a move to Cloud Cost Item Category On Premise Public Cloud Hybrid Cloud (Private Cloud) 1 Server Hardware Infrastructure Y Usage Based ** 2 Storage Hardware Infrastructure Y Usage Based ** 3 Security Hardware Infrastructure Y Usage Based ** 4 Security Software Licensing Software Y Usage Based ** 5 Security Software Maintenance Software Y Usage Based ** 6 Networking Hardware Infrastructure Y Usage Based ** 7 Networking Software Infrastructure Y Usage Based ** 8 Datacenter Facility Facility Y Usage Based ** 9 Utilities and Power Facility Y Usage Based ** 10 Data Transfer Infrastructure N Y** ** 11 Server Software Licensing Infrastructure Y ** ** 12 Server Software Maintenance Software Y ** ** 13 Dev Platform Licensing Software Y* Y* ** 14 Dev Platform Maintenance Software Y* Y* ** 26 *Open Source Products typically do not carry licensing costs ** Depends on Configuration
- 27. Total Cost ofOwnership – Page II For a Business evaluating a move to Cloud Cost Item Category On Premise Public Cloud Hybrid Cloud (Private Cloud) 15 Applications Licensing Software Y Usage Based ** ** 16 Applications Maintenance Software Y Usage Based ** ** 17 Data Center Staff People Y N ** 18 Server Administration People Y N ** 19 Network Administration People Y N** ** 20 Security Administration People Y N** ** 21 Storage Administration People Y N** ** 22 Platform (Database, Middleware People Y Y Y Administration) 23 Application Developer(s) – several People Y Y Y technologies 24 Project Management People Y Y Y 25 Architecture - Infrastructure People Y N* ** 26 Architecture - Technology People Y N* ** 27 *Open Source Products typically do not carry licensing costs ** Depends on Configuration
- 28. Total Cost ofOwnership – Page III For a Business evaluating a move to Cloud Cost Item Category On Premise Public Cloud Hybrid Cloud (Private Cloud) 27 Architecture - Application People Y Y ** 28 Architecture Integration and People Y Y ** Middleware 29 Architecture – Cloud People Y Y Y 30 Architecture - Enterprise People Y Y ** 31 Operations (IT, Business etc.) People Y Y** ** 32 Cloud Integration People/Software N N** Y 33 Testing Software (Licensing) Software Y Usage Based** ** 34 Testing Software Software Y Usage Based** ** (Maintenance) 35 Testing Life Cycle (Project) People Y Y ** 36 Business Process People Y Y Y Engineers/Analysis 28 *Open Source Products typically do not carry licensing costs ** Depends on Configuration
- 29. Key Takeaways 1. Cloud Computing Use Cases are driven by a combination of business and technology considerations 2. Total Cost of Ownership has several inputs 3. A Cloud Computing Business Case needs to include several inputs, including cost, business direction and key value drivers in helping decide a complex decision. 29
- 30. Contact Information www.linkedin.com/in/ronbatra @ronbatra rb9360@att.com +15129348659 30
- 31. SAVE THE DATE! COLLABORATE 13 April 7-11, 2013 Colorado Convention Center Denver, Colorado http://collaborate13.ioug.org
- 32. Thank You © 2012AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are the property of their respective owners. This document is not an offer, commitment, representation or warranty by AT&T and is subject to change.
Editor's Notes
- #7 AT&T is focused on these standards and helping to set this agenda because we design our cloud services for the Enterprise. That means we are creating cloud services that meet rigorous standards for security and reliability. Our approach to security is to layer network, physical and logical security so that your AT&T Cloud Services are delivered in a highly secure way that meets the standards in your industry.
- #8 We offer CoLo, Dedicated Managed Hosting, Dedicated Virtualized Managed Hosting, Synaptic Hosting with shared multi-tenant virtualized computing, Managed Application Services, initial SaaS offerings and public, on demand, pay as go Infrastructure as a Service. (CaaS, STaaS) The network is our foundation from which we will continue to build our cloud services, bringing together our experience in building platforms and delivering information across wired and wireless networks to any device. What we are hearing from our enterprise clients is they want many different sizes and flavors. Private dedicated cloud utilizing virtualization technology for my mission critical applications Public cloud for sandbox and test; provides fast turn up and turn down, offering a minimal infrastructure only SLA Hybrid environment where you might develop a pilot application in the public cloud, it becomes a success and now I want to move it over to my managed production environment that carries a full management and application SLA.Today CaaS and Synaptic – are two separate offerings and infrastructure – but we have been investing to move them closer together – with a goal for the environments to interoperable . Our goal is to offer the tiers of services you need through an adaptable and flexible platform.
- #13 Let’s begin with a quick level-set of what we mean when we say, “cloud”. National Institutes of Standards and Technology: “Cloud computing is a model for enabling ubiquitous, convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction.”Translation: Pooling IT resources in a remote environmentCloud enables a shift to shared infrastructure: Processing power is delivered over the network Apps reside in the network, accessed on demand Security is managed over the networkThe cloud sets up a the delivery of transformative technology solutions to businesses and consumers.In short, cloud means you can deliver applications, information and business processes to a desktop, laptop, table, smart device of cell phone without using the memory or real processing power of that device, keeping it information flowing quickly.