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Transcript of All Contents © 2007 Burton Group. All rights reserved. Demystifying Cloud Computing Drue Reeves...
All Contents © 2007 Burton Group. All rights reserved.
Demystifying Cloud Computing
Drue Reeves
Vice President and Research Director
Cloud Computing / Data Center
June 16th, 2009
Cloud Computing
Thesis
• Cloud computing is transformational• Change business models, cost models, speed to provision, and data centers
• Cloud computing has many issues• Lack of clarity and hype slows adoption, and increases skepticism• Trust, security, and unclear ROI are chief issues
• Cloud computing is coming, make no mistake• Now is the time to prepare, comprehension is key• Part of the IT externalization movement; will reach equilibrium between
internal and external IT functions• Cloud helps IT organizations focus on what’s important
• Efficient IT service delivery, reduce costs and complexity, outsource non-essential IT service
“Technology alone is rarely the key to unlocking economic value: companies create real wealth when they combine technology with new ways of doing business.” Source: “Eight Business Technology Trends to Watch, McKinsey Quarterly 12/07”
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Cloud Computing
Business needs are straining IT
•Business dependency on IT continues to grow• Business and IT are becoming one
•As business dependency grows, so do the IT resources necessary to run the business• Many organizations have built massive, overly
complex, underutilized, rigid IT infrastructure
•Why we are seeing some IT initiatives• Data center consolidation, application rationalization,
virtualization• These efforts aren’t enough to stem the tide; revealing
some harsh realities…
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Cloud Computing
IT is too expensive; limits business expansion
• Owning and operating IT is an expensive, and time consuming proposition
• Many data centers are out of power/ spaceIT is too rigid; restricts business agility
• Complex infrastructures decrease the ability to respond to business needs
• Install new applications, provision additional capacity, and secure their environment
• Limits business agility and growth• Business units are forced to go outside their IT
organizations to meet their needsIT is too big and complex; cannot focus on core
business
• IT organizations have more work than personnel can reasonably manage
• Many data centers house extraneous, infrastructure that has nothing to do with the organization’s core business
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Enterprise
ITIT is completely “owned and operated” by the Enterprise’s IT organization
Strategic and non-strategic IT Services
Cloud Computing: Transforming IT
Enterprise
ITSaaS
PaaS
SIaaS
HIaaS
Cloud Computing
Post-Modern IT
Strategic IT Services
Non-Strategic IT Services
Cloud Computing: Transforming IT
Cloud Computing: Transforming IT
Agenda
•What is Cloud Computing?• Cloud definition and architectural model
•Why do we need it?• Cloud Computing benefits
•Why wouldn’t we use it?• Issues and drawbacks
•Recommendations
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Cloud Computing: Transforming IT
Cloud Definition and Model
•Burton Group defines cloud computing as: The set of disciplines, technologies, and business models used to render IT capabilities as an on-demand, scalable, elastic service. (aka “the cloud”)
•A cloud is a “specific instance” of a cloud computing service. For example, Amazon’s Elastic Compute Cloud (EC2) is a specific cloud computing vendor implementation.
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Cloud Computing: Transforming IT
Other common cloud computing definitions include:• Public cloud: An IT capability as a service that providers offer to consumers via
the public Internet. • Private cloud: An IT capability as a service that providers offer to a select group
of customers. • Internal cloud: An IT capability as a service that an IT organization to its own
business (subset of private cloud).• External cloud: An IT capability as a service offered to a business that is not
hosted by its own IT organization.• Hybrid cloud: IT capabilities that are spread between internal and external
clouds• Service provider: The organization providing the cloud service. Also know as
“cloud service provider” or “cloud provider”.• Service consumer: The person or organization that is using the IT capability
offered as a service. • Service procurer: The person or organization obtaining the service on behalf of
service consumers.
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Cloud Computing: Transforming IT
Cloud Computing Characteristics
• Elastic and scalable• Consumers can quickly provision and de-provision IT services; Cloud service
appears infinitely scalable to the consumer• Self-service
• Consumer have the ability to use cloud services as the need arises; Self-service increases IT agility to match the pace of business
• Consumption-based pricing model• Vendors charge customers based on amount of the service consumed. Customers
pay for only the IT services they use, thereby increasing IT ROI• Shared infrastructure
• Vendors leverage the infrastructure to service multiple consumers; Multi-tenancy is vital to driving down infrastructure costs
• Virtualized and dynamic• Virtualization creates a dynamic environment for quick resource provisioning and
better resource management
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Cloud Computing 11
Hardware Infrastructureas a Service
Software Infrastructureas a Service
Platform as aService
Softwareas a Service
Example
Google Apps, Salesforce.com, backup as a Service
Microsoft Azure, Force.com, Google App Engine, Oracle’s Cloud Strategy
Data service providers, Identity mgmt providers, security service providers
EC2, System hosting providers (BT, AT&T, Sprint) + Virtualization vendors
Cloud Tiered Architecture
Hardware Infrastructureas a Service (HIaaS)
Software Infrastructureas a Service (SIaaS)
Platform as aService (PaaS)
Softwareas a Service
(SaaS)
Service Consumer
IT Organization Built Solution IT
Organization Built
Solution IT Organization Built Solution
Service Interfaces
IT Organization Solution Architect
Cloud Computing: Transforming ITIT organization point-of-view
Cloud Computing: Transforming IT
Agenda
•What is Cloud Computing?• Cloud definition and architectural model
•Why do we need it?• Cloud Computing benefits
•Why wouldn’t we use it?• Issues and drawbacks
•Recommendations
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Cloud Computing: Transforming IT
Cloud computing benefits (in theory…):
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Cloud Computing: Transforming IT
Cloud Benefits:
•Simplifies and Optimizes IT• Enables IT to offload non-essential IT processes; reducing internal IT
complexity• IT organizations can optimize their IT resources by focusing internal
services on core business value processes, rather than wasting time and energy managing lesser value IT services and resources that can be externalized
•Public cloud business models allow IT organizations to defer costs today. Long term, overall IT prices will stabilize• Cloud services enable act as a release value for data centers that are
power and space constrained, deferring new data center construction
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Cloud Computing: Transforming IT
Cloud Benefits
• On demand, self-service business models increase IT agility• Using the cloud, IT organizations can quickly provision IT resources
whenever business demands, especially for short-term IT resource needs
• Enables Faster ROI through better resource management• Pay as you go: IT organizations pay for only the IT services they use,
enabling better resource tracking, budget forecasting and faster return on invested IT dollar
• Ceiling price: IT organization consume as much as they like (up to a ceiling) encouraging outside consumption without process red-tape
• Cloud computing vendors employ highly skilled IT professionals to operate their service• Cloud computing business models require providers to hire, train, and
retain highly skilled employees to ensure service quality
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Cloud Computing: Transforming IT
Cloud Benefits
•As cloud computing trust increases, IT organizations will use cloud services as a disaster recovery option• Rather than using a co-location facility or a new data center, IT
organizations will backup data to the cloud
•Public and externally facing private clouds can more easily support a mobile workforce• Internet-based clouds (public and private) provide greater IT service
access to mobile workforce than internally hosted IT services accessed via VPN
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Resource GrowthRate
Time
Resource Usage Growth
Excess Capacity
Purchased
Time to utilization
Traditional IT Growth Pattern
Cloud Growth Pattern
Cloud Computing: Transforming ITCloud computing-based IT resource growth model
Cloud Computing: Transforming IT
Agenda
•What is Cloud Computing?• Cloud definition and architectural model
•Why do we need it?• Cloud Computing benefits
•Why wouldn’t we use it?• Issues and drawbacks
•Recommendations
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Why Cloud Computing? 20
Cloud is the opiate of the enterprise masses?
Cloud Computing: Transforming IT
Cloud Drawbacks and Concerns:
• Poor or non-existent service-level agreements (SLAs)• Inflexible, boilerplate SLAs are the norm
• Inability to manage risks• Lack of vendor transparency and inability to audit service security measures
obscures risk assessment• Unclear return-on-investment
• Poor cost insight creates an inability to determine cloud service costs• Vendor lock-in
• Lack of cloud interoperability, proprietary data models, and poor application portability make cloud migration difficult
• Market immaturity• Vendor flux and poor service implementations creates consumer uncertainty
• Inability to manage and monitor service for events and issues• Lack of management APIs /monitor/verify service levels
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Cloud Computing: Transforming IT
Cloud Issues
•Shared Infrastructure• As we open up systems, customers expect the same security,
reliability, and availability• Who are you sharing that server with?
•Consumption-based pricing• What happens if you don’t pay your bill? Do you lose your data?• How do I control and monitor consumption? (Wireless phone bill)
• Improved Business Continuity and Elasticity• What infrastructure is my applications running on?• What protection do I have against outages?• What legal recourse do I have?
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Cloud Computing: Transforming IT
Cloud Issues
•Massively scalable• Where does my data reside? In a foreign country?• Can any “fly-by-night” code-jockey be a cloud?
•Mobility and Flexibility• Will vendor relationship management hamper mobility?• Will we see service brokers emerge?
• Internet-based and easily accessible• Will the cloud enable an increase of shadow IT?
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Cloud Computing: Transforming IT
Agenda
•What is Cloud Computing?• Cloud definition and architectural model
•Why do we need it?• Cloud Computing benefits
•Why wouldn’t we use it?• Issues and drawbacks
•Recommendations
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Cloud Computing: Transforming IT
Cloud Computing Recommendations (ying)
• Build an internal cloud• Building an internal IT services model can ease cloud adoption. IT
organizations must comprehend what applications and infrastructure can/should be moved to the cloud
• Evaluate your organization’s ability to consume the cloud • IT organizations must determine the processes and infrastructure that can be
moved to the cloud and those that cannot. Can the organization manage multiple cloud vendor relationships?
• Scale incrementally and offload non-value added capacity • Use the cloud to offload applications and infrastructure that are not core. The
cloud can act as a pressure release valve for IT organizations that have insufficient IT personnel or are out of power and space
• Use the cloud to operate at a higher level • IT organizations must right-size their IT capabilities and focus on core
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Cloud Computing: Transforming IT
Cloud Computing Recommendations (yang)
• Don’t abdicate responsibility to the cloud • Although cloud computing represents a way to offload IT capabilities, service
delivery and liability remains with the IT organization• Calculate cloud costs vs. do-it-yourself (DIY) costs
• Monitor cloud costs closely and watch for hidden charges. Compare cloud costs to hosting the same service internally including operational costs (e.g. energy or personnel) and capital costs (e.g. servers, storage, and software).
• Safeguard your data • Data is a primary business asset. Before putting data into the cloud, clearly
identify any potential risks to data
Cloud is coming, now is the time to prepare. Cloud computing’s on-demand business model, elasticity, and scalability enable IT organizations to streamline operations, offload lesser value IT processes and focus on core business value
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Burton Group Resources
Documents and other related content
• “On the Death of SOA” – Chris Howard• “Facing the Headwind: Good Ideas for Bad Times” – Chris
Howard“Cloud”: Infrastructure
• The Dynamic Data Center • Data Center Model
IT1 Upcoming Research
• Cloud Computing Root Document• Cloud Storage• Moving Out: The Externalization of IT• Cloud Computing Risk Management
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28Q & A