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Cloud Computing: Myths, challenges, opportunities and realities – taking control of your cloud strategy
Potential Cloud Benefits: Why are People Doing This?• A shift from "Capacity" on demand to "Capability" on demand
- Decreased time to acquiring a capability due to "low barriers to entry"
- More effective Agility and use of resources
- Increased operational efficiency/sharing through outsourcing (i.e. Someone else does the work better)
- More options through more service providers
• Reduced cost of computing resources- Clear line of sight to costs of computing resources
- Reduced power, cooling, and space requirements costs
- Increased flexibility of expenditures through operating expenses rather than capital expenses.
- More finely-targeted use of resources by paying only for what is needed.
• A shift from technology use to "value" consumption- Consumers pay for what they want to do rather than for pieces of technology
- Results evaluated based on outcomes
Cloud Risks: 70% of companies over 1000 Employees Have not yet started a Cloud Initiative — What Holds them back?
• Security: Can you trust it?
• Lack of Compliance Reporting and Auditing
• Ensuring Quality and predictability of Service and service remediation
• Delivering and verifying reduced cost over on-premises computing (Business case costs and benefits).
• Remediation of failures
• Align business need with actual cloud reality
Have already implemented
Currently implementing
Planning to implement within 18 months
Currently evaluating
Neither engaged nor evaluating
0 10 20 30Percent
Cloud Computing Strategy and Implementation
Key Issues
1. How will cloud computing be defined and evolve?
2. How will cloud computing affect the strategy and direction of IT and business?
3. How will vendors and the IT industries be affected by the cloud computing phenomenon?
Key Issues
1. How will cloud computing be defined and evolve?
2. How will cloud computing affect the strategy and direction of IT and business?
3. How will vendors and the IT industries be affected by the cloud computing phenomenon?
Internet Technologies
Metered By Use
Shared
Scalable & Elastic
Service Based
Services are delivered through use of Internet Identifiers, Formats, and Protocols.
Services are tracked with usage metrics to enable multiple payment models.
Services share a pool of resources to build economies of scale.
Services scale on-demand to add or remove resources as needed.
Consumer concerns are abstracted from provider concerns through service interfaces
5 attributes that support outcomes
Gartner defines cloud computing as "a style of computing where scalable and elastic IT-related capabilities are provided 'as a service' to customers using Internet Technologies".
1
2
3
4
5
Gartner's Definition of Cloud Computing & the Critical Attributes of Cloud Services
The Cloud Computing Spectrum
OwnerOwner Company Company Provider Provider Provider
OperatorOperator Company Provider Provider Provider Provider
Service Service AccessAccess
Closed (enterprise)
Closed (enterprise)
Closed (enterprise)
Closed group(community)
Open
Level of Level of ControlControl
Full High High Low None
Points of Points of LeverageLeverage
Skills (none)Assets (none)Arch. (none)
Skills (strong)Assets (none)Arch. (strong)
Skills (strong)Assets (some)Arch. (strong)
Skills (strong)Assets (strong)Arch. (strong)
Skills (strong)Assets (strong)Arch. (strong)
VirtualPrivate Cloud
Company A Company A
Com
pany
A
Com
pany
B
Com
pany
A
Com
pany
B
Prov
ider
X
Use
r Z
Closed Private Open Public
CommunityPublic Cloud
PublicCloud
Managed Private Cloud
Company A
CustomPrivate Cloud
Will your enterprise be pursuing a private cloud
computing strategy by 2012?
Through 2012, how will your IT organization invest in
cloud computing?
Yes76%
No4%
Maybe20%
More private75%
More public
8%
Neither11%
Don't know6%
N = 106 N = 88
Gartner Data Center Conference
Polls, December 2009
Private and Public Cloud Plans
Public or Private? Think HybridPrivate Public
Distinctions are made at the extremes, but many examples exist somewhere between.
Hybrid
The real issue is: How to deliver cloud services in my private scope to gain as many cloud computing benefits as I can while maintaining a degree of control, not whether I have a private cloud.
Company-/Entity-Owned Assets and
Scope Are Bound by Exclusive
Membership Defined by Company/Entity
No Owned Assets and Scopes Are
Open to Anyone Who Can Pay for Service
as Delivered by Provider
Cloud Computing:Private or Public
Choose public• Proven• Total costs are less• Service-level guarantees meet all
requirements• Meets enterprise security needs• Meets legal/data ownership
requirements• Meets regulatory compliance
requirements• Failure remediation/disaster
recovery (including provider failure) proven and meets needs
Go HybridBuild private
• Public service unproven, immature• Internal costs are lower — including
if service use declines precipitously• Service-level requirements cannot be
met by public provider• Public providers cannot meet
security needs• Legal/data ownership issues unclear,
or do not meet requirements• Compliance requirements cannot be
met through public offering• Provider/connection failure recovery
not sufficient to meet needs
Prov
isio
ning
Optimization
Availability
2010 to 2020
Policies
Services
Service levels and agility up
Cloud-enabled
AutomatedService-Orientation
WorkloadsData
ResourcesIdentities
Real-Time Infrastructure
The Evolution of Infrastructure and Private Cloud Computing Can Affect Your Books
2002
SprawledComponent-Orientation
2002 to 2012
Asset, power costs down, flexibility up
VirtualizedLayer-Orientation
Is there anything left to capitalize?
Is there anything left to capitalize?
Application Infrastructure Services (PaaS)
Application Services (SaaS)
System Infrastructure Services (IaaS)
Layers of a Cloud Ecosystem: The value is in delivery "as a service"
Processes, Applications, Application Infrastructure,System Infrastructure
Consumers
Business Process Services
The Cloud Ecosystem
Expectation/Satisfaction Management
API
management
(WS*, R
EST,
HTTP, Events)
Providers
PaaS
• Platform Infrastructure high profile, low revenue.
• Salesforce, VMWare& Microsoft adding
credibility. • Integration as a Service
(Brokerage) growing.
$mn$bn SaaS
Cloud Markets are Growing with Adoption
• SaaS becoming the more mainstream.
• Slightly slower IT spending ahead.
• Multi-thousand seat deals are increasingly common.
0
5
10
15
20
25
2009 2010 2011 2012 2013 2014
0
100
200
300
400
500
600
700
2009 2010 2011 2012 2013 2014
Platform InfrastructureIntegration Services
0.0
2.0
4.0
6.0
8.0
10.0
12.0
2009 2010 2011 2012 2013 2014Compute ServicesStorage ServicesBackup Services
IaaS
• Greater interest than expected.
• 2013 market $8bn (up from $6.8bn) and 2014 market to be worth $10bn.
$bn
Key Issues
1. How will cloud computing be defined and evolve?
2. How will cloud computing affect the strategy and direction of IT and business?
3. How will vendors and the IT industries be affected by the cloud computing phenomenon?
What are People Doing In the Cloud?Collaboration and
ProductivityInterest in simple, cloud-based productivity apps
Development & Test
Mock up the data and move now
Web Application Serving
Servers are half there already
EmailMost Major Universities
Seeking to Move
SaaSSucessfactors won with a
420,000 seat deal with Siemens
PrototypingTry before you
buy
CrowdsourcingMining what the collective knows
ContextInformation about people
is everywhere
CloudSourcing Is Outcomes Based
4. Financial Metrics
•Starts with the customer'sview of service•Focuses on outcomes•Starts with the customer'sview of service•Focuses on outcomes
1. Performance Metrics
Process A Step1
Process A Step 2
Process A Step 3 Outcome AOutcome A
Process B Step1
Process B Step 2
Process B Step 3 Outcome BOutcome B
Service
SLA
SLA
Customers
2. Service-Level Agreements
Gartner Business Value Model
3. Business Metrics
Face A New Money Reality to Keep Your UsersDisconnect Price From Cost•Customers pay for parts•Customers trained to care about technology•Budget recycling•Customers stop IT from making sensible decisions
Reconnect Price To Value•Customers pay for what they need to do•Customers trained to evaluate prices in terms of outcomes•Providers are free to spend whatever makes sense•Providers balance the "margin" between price and cost
Can Your IT Organization Handle a Business "Fly-By" to the Cloud?
83% Looking at SaaS
Business Unit
• Can't wait for IT• Looks Easy• Rapid "time to capability"• Transparency of pricing• Visibility to value• Operational budget
IT – "Umm…No!"
• Potential for shelf-ware as a service
• Possible governance issues of application portfolio
• Release management dictated by the provider
• Security concerns• Longer-term TCO uncertainties• OP2OD (on-premise to
on-demand) integration
And…Three Styles of Security for Public/Private Cloud can Affect your Safety
Publ
ic C
loud
Priv
ate
Clo
ud
Low Medium High
• Security built into VM is used
• Accept vendor security claims
• Third-party security on VM is used
• Certification/ accreditation of system
• Security is performed outside the VM
• Security product certification
• Brokered in Cloud
• Custom or industry assessment
• Outside the cloud
• No trust of the cloud
Security "Pressure"
Trust of the Cloud
• Security assessment difficulties
- Adequate information is hard to obtain
• Data compromise risk- Encryption a partial solution
to privacy issues• Data loss risk- How do you back up a cloud
service?• Vendor viability and data
portability concerns- Open cloud portability
standards still immature.• Growing potential for
"cloud hacking"- Can a highly distributed and
virtualized environment be secure?
• Cloud Provider Security
• SAS 70 sufficient?
1. The right to retain ownership, use and control of one's own data
2. The right to service-level agreements that address liabilities, remediation and business outcomes
3. The right to notification and choice about changes that affect the service consumer's business processes
4. The right to understand the technical limitations or requirements of the service up front
5. The right to understand the legal requirements of jurisdictions in which the provider operates
6. The right to know what security processes the provider follows
7. The responsibility to understand and adhere to software license requirements
What are the Rights and Responsibilities of Cloud Service Consumers?So…Assess Your Rights and Responsibilities in the Cloud
Industries are Changing: Government Cloud Initiatives Can Affect Private Sector Decisions
Anyone
Exclusive
ServiceAccess
OwnershipAgency Third PartyGovernmentwide
LimitedMembership
CentralizedMultiagency
CloudServices
SharedMultiagency
CloudServices
ExternalMultiagency
CloudServices
Internal Single-Agency
CloudServices
Shared Single-Agency
CloudServices
ExternalSingle-Agency
CloudServices
GovernmentPublic Cloud
Services
Public CloudServices
Key Issues
1. How will cloud computing be defined and evolve?
2. How will cloud computing affect the strategy and direction of IT and business?
3. How will vendors and the IT industries be affected by the cloud computing phenomenon?
The New Vendor Reality: A Risky Transition
• Manage the Shift from Product to Service
• Risky Proposition – Giving away your Customers
• Discover new Pricing Models
• Cannibalizing On-Premises Products
• New Powerhouse Vendors
• Will the Business Models work?
Select Vendors Who demonstrate a Grasp of the New Reality
Cloud Services Brokerage: A Multiplicative Growth Effect
• Potentially every service, every consumer, and every combination of services may need brokerage
• Enabling technologies as arms dealers
• Game changes for systems integrators as they move to cloud services to get:- Greater Degree of
leverage- Economies of scale- Size of market
opportunity- Distinguishing between
one-off value add from leveraged multiple Customer engagements.
Cloud Service Consumers
Cloud Services
Opportunities for Brokerage and Brokerage Enabling Technologies
CloudService Provider
CloudService Provider
CloudService Provider
CloudService Provider
Cloud Service Providers
Cloud-Enabling Your IT Strategy Is Your Cloud Strategy• Conduct assessments to determine
potential use cases, constraints & readiness- Organizational (IT & Business)- Technology (Infrastructure & Applications)- Data Readiness, Risk Profile
• Determine when, where, why and how to consume public/community cloud services - Categorize workloads & defining use cases- Not everything will not move to external services
• Move toward a private cloud model for your own infrastructure & applications- Private cloud is more than use of virtual servers
• Integrate Cloud Into Your App Strategy - Look beyond hosted applications to cloud
optimized applications you build or buy
Consuming Public Cloud
Services
Implementing Private Cloud-
Computing Environments
Developing Cloud-Based Applications
and Solutions
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