IT by the pound: The pay as you go IT department
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Transcript of IT by the pound: The pay as you go IT department
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Copyright © 2010 by Virtustream, Inc. All rights reserved worldwide. “Actualize the Enterprise Cloud™” is a trademark of Virtustream, Inc. All other trademarks are property of their respective owners. No part of this publication may be reproduced, transmitted, transcribed, stored in a retrieval system, or translated into any human or computer language in any form or by any means without the express written permission of Virtustream, Inc.
Julian BoxChief Technology Office
20th October, 2010
IT by the Pound: The pay as you go IT Department?
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• What is driving Cloud Adoption• What is the “Cloud”• Cost models in the Cloud• Summary• Questions?
Agenda
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• It is estimated that the CO2 emissions of the IT industry alone exceeds the carbon output of the entire aviation industry
• By 2008, IT emissions accounted for 4% of the world’s carbon emissions, and at least 10% of most G20 energy bills
• By next year around 33% of a corporation’s IT Budget will be spent on energy• 80% of IT departments do not know what their electricity consumption is• 86% of ICT departments do not know what their carbon foot print is• There was a six fold annual Information growth from 2006 to 2010, to 988
Exabyte's (988 Billion Gigabytes), up to 8X network, 16X storage & 20X compute capacity needed
• 85% of all computer information will be in your corporate networks• Only 25% of the world population is currently connected to the Internet with
some predicting an additional Billion users by the end of 2015
What is Driving Cloud Adoption?
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• Currently 80% of connected devices are PC’s or Phones, up to 2.5x additional devices will be connected by 2015 including Cars, TVs, and other households devices
• YouTube on its own consumes more bandwidth today as the entire internet did in 2000
• Energy costs are higher now than they have been for 50 years and predicted to grow approximately 20% per annum over the next 5 years (Many predictions have oil at $200 a barrel within the next few years)
• Under utilised Compute power even when virtualized within a private Cloud• The growing demand for true utility based compute and storage pricing• Increasing demand for true flexibility to meet future demands
What is Driving Cloud Adoption?
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Cloud Market Overview
User Access & Interface
Business Process
Application
Application Framework
Web Service
Database
IaaSInfrastructure as a Service
PaaSPlatform
as a Service
Operating System
Virtual Machine
Server
I/O
Storage
Data Center
Network
SaaSSoftware as a
Service
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2
3• Applications delivered via Internet• Typically offer configurable options• Examples: Salesforce, Google Apps
• Cloud application development platforms• Provides software development kit (SDK) with
APIs exposed for developers to use• Examples: Microsoft Azure, Amazon
• Remote computing, storage and/or virtual machines• Typically self-service provisioning & pay-per-use billing• Targets users seeking empty compute “containers”• Examples: Virtustream, Rackspace, Terramark, Savvis
Cloud Computing is generally segmented into three distinct service categories:
Man
agem
ent a
nd S
ecur
ity
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8
Cloud Computing Reference Model
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SAAS
PAAS
IAAS
PresentationModality
PresentationPlatform
APIs
Applications
Data Metadata Content
Integration & Middleware
APIs
Core Connectivity & Delivery
Abstraction
Hardware
Facilities
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Infrastructure as a Service in the Security Model
9Cloud Security Alliance 2009
PresentationModality
PresentationPlatform
APIs
Applications
Data Metadata Content
Integration & Middleware
APIs
Core Connectivity & Delivery
Abstraction
Hardware
Facilities So
ftw
are
as a
Ser
vice
(S
aaS
)
Pla
tfo
rm a
s a
Ser
vice
(P
aaS
)
Infr
astr
uct
ure
as
a S
ervi
ce (
IaaS
)
Application
Information
Management
Network
Trusted Computing
Compute & Storage
Physical
SDLC, Binary Analysis, ScannersWebApp Firewalls, Transactional Sec.
DLP, CMF, Database ActivityMonitoring, Encryption
GRC, IAM, VA/VM, Patch Management,Configuration Management, Monitoring
NIDS/NIPS, Firewalls, DPI, Anti-DDoS,QoS, DNSSEC, OAuth
Hardware & Software RoT & API’s
Host-based Firewalls, HIDS/HIPS,Integrity & File/Log Management,Encryption, MAsking
Physical Plant Security, CCTV, Guards
PCI
HIPAA
GLBA
SOX
J FirewallsJ Code ReviewJ WAFJ EncryptionJ Unique User IdsJ Anti-VirusJ Monitoring/IDS/IPSJ Patch/Vulnerability ManagementJ Physical Access ControlJ Two-Factor Authentication
Cloud Model
Security Control ModelCompliance Model
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Cloud Options
On-Premise– Private Cloud– Small risk– Reduced costs– Complicated On-Boarding
Process– Limited flexibility
Off-Premise– Full Off Premise Cloud Solution– Medium risk– Simplified On-Boarding Process
but longer duration– Reduced costs– Highly flexible – Highly Scalable
Hybrid– Best of Both Solutions– Small risk– Reduced costs– Simplified On-Boarding Process– Flexibility including option to migrate
to an Off–Premise solution– Limited Scalability
DR Only– Enhanced linked version –
Private Cloud to Off-Premise– Small risk– Reduced costs– Simplified On-Boarding Process– Limited flexibility
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• An evolution in IT pricing and delivery made available through self service based portals via the Internet or direct connection with a flexible, pay as you go business model
• Requires a highly scalable, flexible and efficient architecture− Data resides within Multi-Tenanted, dynamically scalable resource pools− Based on virtualisation and/or scale-out application environments
• Multiple stakeholders have varied expectations of cloud….− CEO wants IT to support business growth− CIO wants IT to impact business value− CFO wants effective IT asset utilization− Shareholders want IT to support business flexibility
Overview
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Computing Paradigm's Business Value Model
A particular computing style or paradigm can be evaluated based on how well it satisfies demand for particular business values.
The cloud computing paradigm offers capabilities that hold the potential to deliver higher business values than the on-site paradigm.
The business values against which the cloud computing and on-site paradigms are compared are listed in the "Value Category" column in figure 1.
Optimization
The model measures the value delivered by a particular paradigm by its proximity to the ideal (i.e. in that case, the maximum desired value). It awards that ideal, maximum value with a score of 1.0.
Respectively, a 0.0 score awards the minimal value. The business values assigned to the two paradigms are listed in the "Cloud, Value's Score" and " On-Site, Value's Score" columns in figure 1.
Some business values are more important than others. Therefore, we define the relative importance of business values in the model by assigning them weights that total 100%. Weights are listed in the column "Category's Importance (Weight)" in figure 1 and are graphically represented in Figure 2.
Figure 1. Value Model
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Technology Maturation
• Security• Lack of Automation• More Power Efficiency• Standards
Cultural Shift
• IP Protection• Interoperability and Lock-In • Compliance and Audit • Guaranteed Quality of Service
The Challenges to Cloud Adoption
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Virtustream has performed in-depth TCO and ROI calculations to estimate the savings that would be achieved moving from a physical and/or a virtualised environment to our xStream Platform over a five year period:
ClientType of Business
Pre-existing Environment
Characteristics
Pre-existing TCO Over 5
YearsTCO
Private Cloud
TCO xStream Platform
Private Cloud
Savings
xStream Platform Savings
Large, complex traditional environment
£6,091,062 £3,281,433 £2,414,285 46% 60%
Blend of traditional and virtualized environment
£669,000 £484,600 £384,000 28% 43%
Highly optimized virtual private cloud
£1,987,081 N/A £1,614,009 N/A 19%
Government Body
Financial Organisation
Legal Firm
Expected Savings From A Move to the Cloud
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• What is driving Cloud Adoption• What is the “Cloud”• Example Cost models in the Cloud
Summary
Is the Cloud cost effective and can it deliver the best value for money?
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A Final Word
Virtualisation Technology is the most significant shift in the delivery of Information Systems to business since the inception of the microprocessor – Virtustream 2004
Cloud - the next step in the evolution of virtualisation and a paradigm shift in IT application development and infrastructure deployment generating even greater efficiency, reductions in costs, less complexity, more flexibility, and faster time to market – Virtustream 2009