HP CTO Summit, New Jersey, March 24, 2010


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Executive Keynote delivered at HP CTO summit in New Jersey on March 24th, 2010.

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  • 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.
  • 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.
  • 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.
  • HP CTO Summit, New Jersey, March 24, 2010

    1. 1. Cloud Computing: Future of InfrastructureValue Destruction to Value Creation<br />HP CTO Summit<br />New Jersey, USA<br />SurendraReddy<br />March 24, 2010<br />
    2. 2. (c) 2003-2010 Optena Corp.<br />2<br />Source: Serving the World’s Poor, Profitably by C.K. Prahalad and Allen Hammond<br />
    3. 3. High Cost Economy of Bottom 4B<br />(c) 2003-2010 Optena Corp.<br />3<br />Source: Serving the World’s Poor, Profitably by C.K. Prahalad and Allen Hammond<br />
    4. 4. Changing Mindset<br />(c) 2003-2010 Optena Corp.<br />4<br />
    5. 5. (c) 2003-2010 Optena Corp.<br />5<br />Source: Serving the World’s Poor, Profitably by C.K. Prahalad and Allen Hammond<br />
    6. 6. “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<br />
    7. 7. Exploding number of application on mobile device pushes back the power to the edges<br />
    8. 8. More and More Channels are emerging to serve the information hungry Humans and Machines<br />
    9. 9. Technology Begets Computation<br />(c) 2003-2010 Optena Corp.<br />9<br />Source: Based on Ray Kurzweil Singularity is Near and updated by http://www.flickr.com/photos/jurvetson/43121225/sizes/l/in/set-42234/<br />
    10. 10. the technological advances enabling machines to analyze problems without “educated incapacities” or “cognitive biases”, analyze risks, simulate alternate choices, and make rapid decisions…<br />(c) 2003-2010 Optena Corp.<br />10<br />
    11. 11. Are we reaching Singularity?<br />“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.” <br />– Ray Kurzweil<br />
    12. 12. Globalization and Consumerization makes enterprises more vulnerable than ever before<br />Boardrooms to War-Rooms <br />
    13. 13. Manufacturing of Tomorrow<br />Intelligent Manufacturing<br />Machine-Machine Intelligence<br />Leadership through smart manufacturing <br />Education<br />what is good for what circumstances?<br />Entertainment<br />Monetize your branding and marketing efforts through entertainment<br />Consumer attention is what it counts – not how big is your advertisement budget <br />(c) 2003-2010 Optena Corp.<br />13<br />
    14. 14. Food and Drugs<br />Intelligent Farming/Pharming<br />Know who wants what/get closer to understand what they need? When they need? How to economically deliver them? Many small lots with hefty premiums<br />Education<br />Use Customer for your innovation and marketing – they are powerful and center to their social universe<br />Entertainment<br />Food and Drug recalls are expensive and damages <br />Transform crisis into opportunity by knowing them better and engaging them better<br />(c) 2003-2010 Optena Corp.<br />14<br />
    15. 15. And, Network is the Engine of this Innovation….<br />(c) 2003-2010 Optena Corp.<br />15<br />
    16. 16. Who is the King? Consumer or Content ?<br />(c) 2003-2010 Optena Corp.<br />16<br />
    17. 17. One who deliversInformation + Education + Entertainment gets Consumer attention<br />(c) 2003-2010 Optena Corp.<br />17<br />
    18. 18. State of the Union of IT and Business<br />(c) 2003-2010 Optena Corp.<br />18<br />
    19. 19. So, Does IT Matter?<br />(c) 2003-2010 Optena Corp.<br />19<br />X<br />
    20. 20. Economic Climate<br />The economic climate has caused many organizations <br />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. <br />Aging IT infrastructures <br />have forced many organizations to rethink traditional, incremental technology improvement programs, and to focus instead on a holistic IT modernization program<br />(c) 2003-2010 Optena Corp.<br />20<br />
    21. 21. Cloud Computing<br />New deployment and operational model for delivering new services rapidly<br />
    22. 22. Joe’s Great Wisdom on Economics of Cloudhttp://www.cloudonomics.com/<br />(c) 2003-2010 Optena Corp.<br />22<br />
    23. 23. Cloud Computing: Enablers<br />Virtualization<br />Virtual servers, virtual storage and virtual networking<br />Automation is the Key<br />They automate server/VM; storage, network, platform, and application provisioning<br />(c) 2003-2010 Optena Corp.<br />23<br />
    24. 24. Pillars of Cloud Computing<br />Self-service <br />Graphical user interface or an application programming interface<br />Service Management<br />Service delivery is managed through automation, and metered use is tracked. <br />(c) 2003-2010 Optena Corp.<br />24<br />
    25. 25. Pillars of Cloud Computing<br />Elastic data center architectures<br />Applications and data run on big, flat processor and storage pools, taking as much as needed and releasing unused resources when they are no longer necessary<br />Operational Support System<br />Operational processes to support the service are automated as much as possible, reducing the need for manual intervention. <br />(c) 2003-2010 Optena Corp.<br />25<br />
    26. 26. Pillars of Cloud Computing<br />Standardized workloads<br />Want to build a high-volume business? Cut the number of product variations. <br />Rapid provisioning<br />Customers order resources and/or applications via a Web <br />No waiting for the vendor to order, install, and configure equipment, and no extended contract negotiation. <br />Telco-grade billing<br />Provide a simple price sheet and billing and reporting systems that help an IT organization manage its costs<br />(c) 2003-2010 Optena Corp.<br />26<br />
    27. 27. Cloud Computing: Disruptive Elements<br />Redefining Economies of Scale<br />allows small companies to enjoy the low unit cost for scaling<br />Compressed Transaction Costs<br />Allowing companies to significantly enhance the richness of the information and interactivity<br />(c) 2003-2010 Optena Corp.<br />27<br />Credits: Joe Weinman, Cloudonomics.com<br />
    28. 28. Cloud Computing: Disruptive Elements<br />Enabling Real-time Enterprise<br />Enables companies to respond to changing business conditions and opportunities much faster<br />Enabling User Driven Innovation<br />Collaborate and Co-Create with your customers<br />Availability and Reliability at Fractional Cost<br />Achieve extremely high reliability architecture<br />(c) 2003-2010 Optena Corp.<br />28<br />
    29. 29. Network:Powering the Engines of Innovation<br />Powering the Last Mile <br />Importance of reliable access with SLAs<br />Design for Change<br />Changing application environments, user expectations and network services demand that architects expand their thinking to ensure that the network supports new business requirements. <br />New Dimensions in Network Design<br />Location, Users, Applications, Devices, and Business Processes<br />(c) 2003-2010 Optena Corp.<br />29<br />
    30. 30. Power of Cloud Computing<br />(c) 2003-2010 Optena Corp.<br />30<br />
    31. 31. “A man who carries a cat by the tail learns something he can learn in no other way.” <br /> – Mark Twain <br />
    32. 32. Cloud Computing: Challenges<br />(c) 2003-2010 Optena Corp.<br />32<br />
    33. 33. Applications Mobility<br />What is Application Mobility?<br />Ability to move applications from one location to other depends on demand, cost parameters, or to deal with disaster recovery etc<br />(c) 2003-2010 Optena Corp.<br />33<br />
    34. 34. Apps-in-the-Sky<br />Application Containers<br />the application contained in a single server, a single image’s stack?<br />the application as an n-tier ensemble of servers?Where scale-out & loose coupling are the rules?<br />a structured, composed constellation of servers?Uses VLANs, port filters for isolation & security?<br />(c) 2003-2010 Optena Corp.<br />34<br />
    35. 35. Network in Cloud Era<br />Reliance on independently operated infrastructures to hide the details of application safety, performance, resilience, and economics. <br />(c) 2003-2010 Optena Corp.<br />35<br />
    36. 36. Cloud: Promise to Fulfillment<br />Moving Legacy Applications<br />Boxed in applications<br />VM based approach to move these applications into Cloud<br />Creating New “Greenfield” Cloud Services<br />Move ‘up the stack’<br />Platform as the building blocks of application construction. <br />(c) 2003-2010 Optena Corp.<br />36<br />
    37. 37. Security, Data Privacy, and IPLoss of Competitive Advantage,Increased costs of data disclosure,Possibility of illegal or unauthorized transaction enabled by data leak<br />
    38. 38. Management & VisibilityLack of management tools and end-to-end business process visibilityInability to configure and deploy complex business processes<br />
    39. 39. Meta-data & InteroperabilityLack of meta-data for end-to-end business processes, Transaction Processing across service providers<br />
    40. 40. Discussion<br />(c) 2003-2010 Optena Corp.<br />40<br />
    41. 41. Trends and Countertrends are Powerful Market Movers<br />(c) 2003-2010 Optena Corp.<br />41<br />
    42. 42. Reality – Pulse of the Customers<br />(c) 2003-2010 Optena Corp.<br />42<br />Source: Forrester Research<br />
    43. 43. Countertrend<br /> 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<br />(c) 2003-2010 Optena Corp.<br />43<br />
    44. 44. Trend<br />Shift in Vendor Strategies<br />Cisco 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 <br />The benefits touted include greater agility, flexibility and efficiency<br />(c) 2003-2010 Optena Corp.<br />44<br />
    45. 45. Countertrend<br />How will the competitive landscape evolve for server operating systems (OSs)<br />Windows, AIX, HP-UX, Solaris, Linux and z/OS?<br /> New technologies, new modes of computing, and infrastructure virtualization and automation are changing the architecture and role of the OS. <br />VMs will become the norm on the server, with increased use on the client as well, creating a new control point below the OS. <br />Appliances — based on a VM architecture — will make modular/customized (lightweight) OSs interesting and useful.<br />(c) 2003-2010 Optena Corp.<br />45<br />
    46. 46. Trend: Applications in the Sky<br />The emerging wave of cloud computing represents a major shift in IT. <br />This is not a single transition, but rather multiple parallel paths of evolution, at different levels of the technology stack. <br />(c) 2003-2010 Optena Corp.<br />46<br />
    47. 47. Countertrend<br />We see the demand for different layers of the classic technology stack “in the sky”<br />Storage (Amazon Simple Storage Service [Amazon S3]), <br />Database (Amazon SimpleDB, Google Bigtable and Microsoft SQL Data Services), <br />Raw computing power (Amazon Elastic Compute Cloud [EC2]), <br />Programming language environments (Google App Engine, Heroku, Bungee Connect and Microsoft Azure Services Platform), <br />Application-centric platforms (salesforce.com'sForce.com) ,and <br />Applications themselves (Microsoft Dynamics).<br />(c) 2003-2010 Optena Corp.<br />47<br />
    48. 48. Trends<br />Proliferation of Smart devices <br />Exploding number of application on mobile device pushes back the power to the edges<br />Pushing new variant of client server applications<br />Exploding number of Mobile Apps<br />(c) 2003-2010 Optena Corp.<br />48<br />
    49. 49. Countertrend<br />App Store for Cloud<br />Looking further into the future, cloud platforms will have more-direct support for monetization and management<br />Linking monetization to reputation-based reuse will have a powerful effect in accelerating the evolution of solutions targeted to diverse market requirements<br />(c) 2003-2010 Optena Corp.<br />49<br />
    50. 50. Open Cloud Consortium<br />opencloudconsortium.org<br />(c) 2003-2010 Optena Corp.<br />50<br />
    51. 51. Open Cloud Consortium<br />501(3)(c) Not-for-profit corporation<br />Define and Promote Standards<br />Supports the development of standards, interoperability frameworks, and reference implementations.<br />Manages cloud computing infrastructure to support scientific research<br />Open Cloud Testbed and Intercloud Testbed.<br />Open Science Data Cloud.<br />Develops benchmarks.<br />(c) 2003-2010 Optena Corp.<br />51<br />
    52. 52. Members<br />Companies<br />Aerospace, Booz Allen Hamilton, Cisco, InfoBlox, Open Data Group, Optena, Raytheon, Yahoo<br />Universities<br />CalIT2, Johns Hopkins, MIT Lincoln Lab, Northwestern Univ., University of Illinois at Chicago, University of Chicago<br />Government agencies<br />NASA<br />Open Source Projects<br />Sector Project<br />(c) 2003-2010 Optena Corp.<br />52<br />
    53. 53. Working Groups<br />Large Data Cloud<br />Open Cloud Testbed<br />Intercloud Metadata<br />Virtual Networking <br />(c) 2003-2010 Optena Corp.<br />53<br />
    54. 54. OCC Testbed<br />(c) 2003-2010 Optena Corp.<br />54<br />C-Wave<br />CENIC<br />Dragon<br />Phase 2<br />9 racks<br />250+ Nodes<br />1000+ Cores<br />10+ Gb/s <br /><ul><li>Hadoop
    55. 55. Sector/Sphere
    56. 56. Thrift
    57. 57. KVM & XenVMs</li></ul>MREN<br />
    58. 58. Thank You<br />blog: cloudrants.com<br />facebook.com/cloudwave<br />tweet: @sureddy<br />email: sureddy@optena.com<br />(c) 2003-2010 Optena Corp.<br />55<br />