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Prof. June Sung Park
        KAIST
Agenda
                                                    Consumer
                                                    Cloud Adoption Process
                                                    Standardization
                                        Consumer
                                        Options for
                                        Cloud Migration
                             Supplier
                             Competency-Based, Agile / Lean Process for
                             Cloud Business Development
                 Supplier
                 Diversification of
                 Architecture and Delivery Model
     Supplier
     Cloud Computing:
     Disruptive or Sustaining?




                                                                             3
IaaS: Disruptive Business Model / Fusion of State-of-Art
 Technologies

Infrastructure Outsourcing Service
               Externalization
               SLA




                                          Infrastructure as a Service
                                           Web Services
                                           Automated ITSM over Virtualization
                                           1 to Global, “Swipe and Start”,
   Infrastructure Utility Service           “Pay as You Go” Service
    Sharing Virtualized Infrastructure    Built-In Monetization Functions
    Fully-Implemented ITIL
    1 to 1 Contract

                                                                                 4
SaaS: Disruptive Business Model / Disruptive Technology
Packaged Software
          Single Code Base (Grey-Box)
          Single Tenant
          Upgrade and Distribution
                              ASP
                               Packaged App
                                Hosted by a 3rd Party
                               Usage Fee




                                                        Software as a Service
                                                         Single Code Base in Multitenant
                                                          Architecture
                                                         Frequent Upgrade
  Vendor-Managed Software                                Automated ITSM over Virtualization
   Packaged App Hosted by Vendor                        Usage Fee
   License Fee +                                        Built-In Monetization Functions
    Maintenance/Hosting Fee                              1 to Global

                                                                                           5
Architectures and Delivery Models – IaaS




                                           6
Architectures and Delivery Models - SaaS




                                           7
How to Avoid Cloud Com Crash?
    Extend your Current Capability and Asset

                                       Cloud Service Consumers
                                C                  C                    C
                                A              A        A
                                P
                                                                                               Accenture
                                       Cloud Service Brokerage
                                                                                               Appirio
                                            Cloud Service            Managed Cloud
                    Cloud Consulting       Implementation               Service
                     Cloud Service             Cloud Service          Cloud Service
                      Aggregation              Marketplace           Intermediation


                            Cloud Service/Product Providers
                                                                                               Google
                                                            A    A       A      A
                                                                                               Salesforce
                                           P       P        P    P       P
IBM                                                                                            SAP
AT&T                  I          I         I        I       I    I       I
                     IU        IaaS         PaaS                SaaS          VMS
                                                                                               Oracle
                                                                                           Microsoft
Amazon                     Cloud Service Management Platform                               CloudFoundry
Rackspace                            BSS                        OSS
IBM                                                                                   BMC
            eVapt                                                                     CloudSwitch
                                                                                                        8
How to Avoid Cloud Com Crash?
 Understand the whole Value Chain
 Build the Positive Feedback effect in collaboration with upstream
  Platform vendors and downstream Complementors


                            Cloud Service Value Chain
                                 Cloud Service    Cloud Service     Cloud Service
            Cloud Service
Provider       Strategy
                               Infrastructure &   Marketing and     Assurance &
                                    Offering          Sales            Billing

                                                       Cloud
               Cloud               Cloud                              Cloud
Consumer    Requirement         Architecture
                                                  Acquisition and
                                                                     Operation
                                                  Implementation




                                                                                    9
How to Avoid Cloud Com Crash?
    Build New Skills
                    Virtualization              Service Packaging/              Monitoring
                    App Platform                Pricing/SLA                     Metering
                    Agile Process / XP          Web Marketing                   Billing & Payment
                    SOA / WOA                   Self-Service Portal             ITIL
                    Multitenant Architecture    Real-Time Provisioning          Security
                    WAN optimization
                               Cloud Service
    Cloud Service                                  Cloud Service             Cloud Service
                             Infrastructure &
       Strategy                                  Marketing and Sales       Assurance & Billing
                                  Offering

                                                        Cloud
        Cloud                     Cloud                                         Cloud
                                                   Acquisition and
     Requirement               Architecture                                    Operation
                                                   Implementation

Business/IT Strategy       EA                   Cloud Acquisition Policy        ITIL
Planning                   SOA/WOA              Fit/Gap Analysis                Performance
BPM                        MDM                  Cost/Benefit Analysis           Monitoring
                                                App Composition Eng.


                                                                                                 10
How to Avoid Cloud Com Crash?
 Adopt Iterative Customer Development Process



                       Customer Discovery



                       Customer Validation

                                                  Founded in April 2004.
                        Customer Creation         Now has the world’s largest virtual
                                                   goods catalog of 100M+ items
                                                   created by 50M+ members.
                                                  Followed customer development
                                                   process
                       Company Building           Leveraged cloud services; no press
                                                   release at launch; charged from
                                                   Day 1.
                                                  Using agile process and XP,
                                                   shipped in 6 months and ships 20
                                                   times a day.
                                                                                  11
Cloud Migration Options – Hyper-Hybrid Approach
   An optimal approach is to decide
    what apps or user groups are
    appropriate for a private cloud, and
    what for a public cloud, considering
    security, compliance, accountability,
    availability, etc.

   Both internal and external cloud
    services should support the basic
    properties of cloud, i.e., virtualization,
    multitenancy, service catalog, service
    portal, automated provisioning,
    elasticity, metering and billing, etc.


   Cloud-in-a-box, providing
    prepackaged Integrated cloud stacks,
    available from several vendors.

                                                  12
How to Migrate Apps to Cloud?

Replace Apps by SaaS
Standardize silos,      Replace
Adapt to better
functionality

                                               Apps Moved to PaaS
Apps Moved to IaaS                  Refactor   Adapt code
Keep code,              Rehost
Re-platform from Unix
to Linux,
Choose an optimal
IaaS architecture
                                                Apps Rebuilt on
Apps Redesigned                     Rebuild     PaaS
for PaaS                 Revise                 Abandon code,
EA / SOA                                        Keep functionality,
transformation                                  Standardize silos
followed by Rehost
or Refactor



                                                               13
Cloud Adoption Process

   Describe As-Is           Select             Develop         Create Req’t Spec
     Enterprise          Architectural         Business        and Test Plan and
    Architecture         Components             Case            Move to Cloud




  Define business       Scan and catalog      Define project    Develop use cases,
process, data and se     cloud services;     scope; Estimate    test cases and NFQ
   rvice models         Match candidate      cost/benefit of       requirements;
                       components with       cloud adoption      Construct a pilot
                       candidate clouds;                          system; Roll out
                       Do fit/gap analysis
                                                                              14
Questions




june.park@kaist.ac.kr




                        15

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Roadmap to hyper hybrid cloud

  • 1.
  • 2. Prof. June Sung Park KAIST
  • 3. Agenda Consumer Cloud Adoption Process Standardization Consumer Options for Cloud Migration Supplier Competency-Based, Agile / Lean Process for Cloud Business Development Supplier Diversification of Architecture and Delivery Model Supplier Cloud Computing: Disruptive or Sustaining? 3
  • 4. IaaS: Disruptive Business Model / Fusion of State-of-Art Technologies Infrastructure Outsourcing Service  Externalization  SLA Infrastructure as a Service  Web Services  Automated ITSM over Virtualization  1 to Global, “Swipe and Start”, Infrastructure Utility Service “Pay as You Go” Service  Sharing Virtualized Infrastructure  Built-In Monetization Functions  Fully-Implemented ITIL  1 to 1 Contract 4
  • 5. SaaS: Disruptive Business Model / Disruptive Technology Packaged Software  Single Code Base (Grey-Box)  Single Tenant  Upgrade and Distribution ASP  Packaged App Hosted by a 3rd Party  Usage Fee Software as a Service  Single Code Base in Multitenant Architecture  Frequent Upgrade Vendor-Managed Software  Automated ITSM over Virtualization  Packaged App Hosted by Vendor  Usage Fee  License Fee +  Built-In Monetization Functions Maintenance/Hosting Fee  1 to Global 5
  • 6. Architectures and Delivery Models – IaaS 6
  • 7. Architectures and Delivery Models - SaaS 7
  • 8. How to Avoid Cloud Com Crash?  Extend your Current Capability and Asset Cloud Service Consumers C C C A A A P Accenture Cloud Service Brokerage Appirio Cloud Service Managed Cloud Cloud Consulting Implementation Service Cloud Service Cloud Service Cloud Service Aggregation Marketplace Intermediation Cloud Service/Product Providers Google A A A A Salesforce P P P P P IBM SAP AT&T I I I I I I I IU IaaS PaaS SaaS VMS Oracle Microsoft Amazon Cloud Service Management Platform CloudFoundry Rackspace BSS OSS IBM BMC eVapt CloudSwitch 8
  • 9. How to Avoid Cloud Com Crash?  Understand the whole Value Chain  Build the Positive Feedback effect in collaboration with upstream Platform vendors and downstream Complementors Cloud Service Value Chain Cloud Service Cloud Service Cloud Service Cloud Service Provider Strategy Infrastructure & Marketing and Assurance & Offering Sales Billing Cloud Cloud Cloud Cloud Consumer Requirement Architecture Acquisition and Operation Implementation 9
  • 10. How to Avoid Cloud Com Crash?  Build New Skills Virtualization Service Packaging/ Monitoring App Platform Pricing/SLA Metering Agile Process / XP Web Marketing Billing & Payment SOA / WOA Self-Service Portal ITIL Multitenant Architecture Real-Time Provisioning Security WAN optimization Cloud Service Cloud Service Cloud Service Cloud Service Infrastructure & Strategy Marketing and Sales Assurance & Billing Offering Cloud Cloud Cloud Cloud Acquisition and Requirement Architecture Operation Implementation Business/IT Strategy EA Cloud Acquisition Policy ITIL Planning SOA/WOA Fit/Gap Analysis Performance BPM MDM Cost/Benefit Analysis Monitoring App Composition Eng. 10
  • 11. How to Avoid Cloud Com Crash?  Adopt Iterative Customer Development Process Customer Discovery Customer Validation  Founded in April 2004. Customer Creation  Now has the world’s largest virtual goods catalog of 100M+ items created by 50M+ members.  Followed customer development process Company Building  Leveraged cloud services; no press release at launch; charged from Day 1.  Using agile process and XP, shipped in 6 months and ships 20 times a day. 11
  • 12. Cloud Migration Options – Hyper-Hybrid Approach  An optimal approach is to decide what apps or user groups are appropriate for a private cloud, and what for a public cloud, considering security, compliance, accountability, availability, etc.  Both internal and external cloud services should support the basic properties of cloud, i.e., virtualization, multitenancy, service catalog, service portal, automated provisioning, elasticity, metering and billing, etc.  Cloud-in-a-box, providing prepackaged Integrated cloud stacks, available from several vendors. 12
  • 13. How to Migrate Apps to Cloud? Replace Apps by SaaS Standardize silos, Replace Adapt to better functionality Apps Moved to PaaS Apps Moved to IaaS Refactor Adapt code Keep code, Rehost Re-platform from Unix to Linux, Choose an optimal IaaS architecture Apps Rebuilt on Apps Redesigned Rebuild PaaS for PaaS Revise Abandon code, EA / SOA Keep functionality, transformation Standardize silos followed by Rehost or Refactor 13
  • 14. Cloud Adoption Process Describe As-Is Select Develop Create Req’t Spec Enterprise Architectural Business and Test Plan and Architecture Components Case Move to Cloud Define business Scan and catalog Define project Develop use cases, process, data and se cloud services; scope; Estimate test cases and NFQ rvice models Match candidate cost/benefit of requirements; components with cloud adoption Construct a pilot candidate clouds; system; Roll out Do fit/gap analysis 14