Slide 1 - NetEvents : THE Meeting Place for Technology Leaders

© Copyright 2009. Yankee Group Research, Inc. All rights reserved. November 18, 2009NetEvents Press Summit© Copyright 2009. Yankee Group Research, Inc. All rights reserved. www.yankeegroup.com

Datacenter transformation & the cloudConference Debate Session I

Camille MendlerYankee [email protected] | @cmendler

NetEvents Press SummitSingapore: November 19, 2009

© Copyright 2009. Yankee Group Research, Inc. All rights reserved. November 18, 2009NetEvents Press Summit

Enterprise IT needs a new operating model

Capacity management is more challenging than ever

Distributed enterprises drive a collaborative culture

Line-of-business executives want better control over IT

Speed to market remains a top business priority


ICT budgets aren’t growing, but they are in flux

Fixed voice, 11%

Hosting/apps services, 11%

Staff/admin (payroll, training,

etc), 17%

Wireless (mobile, Blackberry), 16%

Maintenance services , 14%

Other, 5%

Fixed data, 13%

Networking/PBX equipment, 13%

Large enterprise: ICT budget distribution

Source: Yankee Group Anywhere Enterprise: 2008 Managed IT and Communications survey. Numbers rounded.

• The key issue is to move expenditure from different buckets

• Enterprises are increasinglyreceptive to OPEXfocused propositions

• Cloud computing propositions touch various aspects of existing enterprise budgets


Cloud computing is an operational model

Software as a Service (SaaS)

Platform as a Service (PaaS)

Infrastructure as a Service (IaaS) Secu

rity

an

d

Com

plian

ce

Virtualization layer

Pool of computing resources (servers, storage), helping IT depts and developers to scale computing and storage requirements in real-time on a per-usage basis.Eg: Amazon, GoGrid, AT&T Synaptic hosting, VZB’s CaaS, Rackspace

Middle layer provides key management tools to deploy cloud-based apps, and facilitates platform integration. Eg: Force.com, Microsoft’s Azure, LongJump, Elastra, rPath, RightScale

Application layer offers productivity, collaboration and business applications,

offered on a subscription basis. Eg: Salesforce, Netsuite, IBM Lotus Live, Google Apps, Workday, SugarCRM


What’s in it for enterprises?

Top 5 motivations to use Infrastructure as a Service (IaaS)

43%

29%

23%

19%

15%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Ability to access to newskills/capabilities

Cost savings on ITstaffing/administration

Disasterrecovery/business

continuity

Capacity management

Cost savings onhardware/infrastructure

Percent of respondents

Source: Yankee Group Anywhere Enterprise--Large: 2009 Transforming Infrastructure and Transforming Applications Survey, Wave 1-6


The cloud community needs to grow up

Common tendencies

• Cliquey• Squabbles about service

definitions & standards

• Geek-led• Focusing on tech, not

customers

• Immature• Lacks consistency of

process

Common failings

• Transparency

• Trust

• Professionalism

Yankee Group’s review of contracts, SLAs and privacy terms of SaaS, IaaS and PaaS providers indicates much work is needed


What cloud service providers need to deliver

5%

8%

14%

18%

24%

26%

0%

5%

10%

15%

20%

25%

30%

Network andapplication

specific SLAs

Networkredundancy

Serverredundancy

Back upfacility

Cross-serverdynamic load

balancing

Tools toassess packetdelivery rate to

site

Percentof

respondents

Source: Yankee Group Anywhere Enterprise--Large: 2009 Transforming Infrastructure and Transforming Applications Survey, Wave 1-6

Cloud service providers need to work harder to earn trust

Critical reliability measuresfor enterprises


‘As is’: Cloud contractual risk is yours to bear

GoGrid (IaaS) Offers ‘10,000% SLA.’ Eg: Failure of 15 minutes will result in 1500 minute or 25 hour service credit.

The small print: “The maximum credit during a single calendar year, for all Service features combined, is two months' Service fees, regardless of the length of Failure or the number of occurrences.”

Risks involved in using cloud services could outweigh their benefits

Salesboom (SaaS) CRM & ERP

The small print: “Salesboom.com shall not be liable for […] damages of any kind whatsoever, […] regardless of any party's negligence.”

Boomi Atomsphere (PaaS) Scheduled maintenance is excluded from its 99.99% uptime SLA calculation.

The small print: “Boomi further reserves the right to schedule additional Scheduled Maintenance on an emergency basis on twelve (12) hours’ notice, for not more than eight hours at a time.”


Law and regulation are earthbound

• Regulation did not anticipate cloud computing• Unclear how laws apply to:

—Data residing in cloud —Data moving between clouds —Involvement of third parties

• Key areas to monitor• Privacy protection• Data security• Jurisdiction

• It’s about verifiable assurance• Few cloud vendors are audited

on security, survivability, process controls

ICT procurement checklist

Quality processes: ISO9000 Audit: SAS70 Type II, SOX Data Protection: EU Safe Harbor, DP98, BDSG Service management: PinkVerify/ITIL, ISO20000 Security: ISO27001, PCI Survivability: Datacenter tier Environment: ISO14000


Sweating the details is important

By what definition? Instance / app or whole cloud uptime SLA?

Compliance to which jurisdiction?

Independent or in-house? Live or periodic?

Who’s responsible for backups? Clue: It’s probably you

What will it cost? How much time until data deleted?

Excluded from uptime calculation? What notice is given?

Cash, or credit? Is there a payout cap? Deadline to claim?

What limits in scope and payout are asserted?

Maintenance

Penalties

Privacy & data protection

Performancemonitoring

Data backup

Cost of migration

Limitation of liability

Uptime / Availability


Traditional TelcoApplicatio

ns & services

Service Manageme

nt

Network

Device

MarketplaceApplicatio

ns & services

Service manageme

nt

Network

Device

Virtual telco?Virtual telco?Applicatio

ns & services

Service Manageme

nt

Network

Device

Control Control interface interface & network& network

TotalTotalControl Control

VerticalVerticalIntegrationIntegration

VerticalVerticalIntegrationIntegration

in Cloudin Cloud

Telcos’ most disruptive competitors are in the cloud

PeripheriesApplicatio

ns & services

Service Manageme

nt

Network

Device

Control Control

peripheriesperipheries

Source: Yankee Group, 2009

?


Telcos as trusted intermediaries for the cloudCandidates: BT, DTAG, Singtel, NTT

Enterprise 1Enterprise 2 Enterprise 3

AmazonEC2 Google

Source: Yankee Group and HP Labs, 2009

SettlementReporting

Telcos can become trusted intermediaries for inter-cloud services- but they won’t do it without help

Business rulesBusiness rules

Business rules Hot swapping

MicrosoftAzure Alatum

IBM

Trusted intermediary

Business rules repositoryFederation / orchestrationMeasurement / reporting

Service level mgmtBilling / settlement

Security authentication


Securing & monitoring clouds: Who can assist?

Performance monitoring

Computer AssociatesIBMHyperic CloudstatusInfovistaKeynote SystemsNimsoftTrustSaaS

IT infrastructure optimization

Blue CoatCiscoRiverbed

A crowded landscape of enabling cloud ecosystem vendors

Opportunities exist to secure, test, monitor, federate & orchestrate disparate cloud assets – for enterprises and cloud service providers

SLA management

Digital FuelSensible Cloud

Standards

Cloud Computing Interoperability ForumSLA@SOI

Test / Certification

CanonicalPink ElephantRed HatSOASTA


Technical dependencies for the cloud

• Converged service management• Physical & virtual resources

• Cloud-optimized applications• Written from scratch for cloud

• Converged high performance network

• Ubiquitous coverage• Access-agnostic service persistence

• Next-gen datacenter infrastructure• Converged datacenter fabric

(storage/server/network)• High-speed data center interconnect

• IPv6• Provisioning of virtual machines

• Interconnect & settlement• Authentication / identity management• Cloud interworking

Who will

be involved?


Thank you!

Camille MendlerVice President

Global Service Strategies

Yankee Group

Fixed: +44 (0)207 307 1085

Mobile: +44 (0)7525 225 277

Email: [email protected]

Twitter: @cmendler

Slide 1 - NetEvents : THE Meeting Place for Technology Leaders

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