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Cloud - what's new? What role does it play in your DC strategy?

Mark Ellis – Head of Data Centre Consultancy Services (Citihub)

Enterprise Datacentre Conference 2009: London, UK

Divided Opinion

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"fashion-driven" and "complete gibberish“ – Larry Ellison (Oracle)

"It's stupidity. It's worse than stupidity: it's a marketing hype campaign,“ – Richard Stallman (Free Software Founder)

"It is a security nightmare” – John Chambers (Cisco)

"We believe deeply in on-premises software and we believe deeply in this new world of software in the cloud,“ - Ray Ozzie (Microsoft)

“ By 2012, 80 percent of Fortune 1000 enterprises will pay for some cloud computing service and 30 percent of them will pay for cloud computing infrastructure” – (Gartner)

Disruptive influences

Cloud or Fog

3

No clear definition, multiple interpretations

Cloud or Fog?

Some familiar vendors, multiple new parties

4

Disruptive influences

No longer just SME’s, large organisations are beginning to adopt cloud services

Does Cloud Sound Familiar ?

Purchase of abstracted compute, network and storage (Limited/no visibility of hardware)

Highly elastic capacity (Up or down. Technically and commercially within short time frames)

Cloud is an evolution of existing and new technologies with specific characteristics

5

1960s- 1970s - ~2000 2006 ->

? ?

Examples IBM, HP, Sun:Network.Com

Amazon EC2/S3

?

?

~2004

?

?

NCSAIBM IBM, CSC, Savvis

Pay per use approach

Ability to flex up has been around a while, but rapid flex down hasn’t

Opportunity or Threat ?

• Your latest client base (Generation Y) have greater expectations..– more technology familiar– used to instant gratification– access to services that appear to be free or nearly free !!!!!

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Cloud is an opportunity if leveraged appropriately, a threat if ignored

• Very nature of Cloud computing can make traditional IT shops look slow..– Customers will have little sympathy for those who can’t at least stay with

the pack (cost / service competitive)– Internal monopolies will be steadily eroded, as a minimum you will

constantly have counter argue

• Challenge today is to cut through the hype and be able to spot opportunities where ‘Cloud’ services can add benefit..– Reality - likely to be services in your enterprise that are poor candidates– Opportunity – possibility to leverage faster, cheaper and better services

Traditional Challenges - Internal / external platform balancing

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• Traditional problems...

Service packaging & pricing

Missed opportunities during market spikes

Over-provision & sunk cost during down-cycle

Inefficient pre-provisioning

Ph

ysic

al r

eso

urc

e

Internal provision or sourced ‘with assets’

Demand

Traditional model

Type of market

DownUp Up

Opportunities to Resolve - Internal / external platform balancing

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• Source a % of capacity from external providers to reduce risk and create agility

Service packaging & pricing

Ph

ysi

cal

reso

urc

e

t

Demand

Balanced model

Internal provision or sourced ‘with assets’

External sourcing without assets

Rapid scalability Limited over-provisioning

No pre-provisioning

Type of market

DownUp Up

Clarity of Requirements and Constraints

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Understanding and weighting your needs..

Fit for purpose

Too many internal constraints prevents external adoption

– Regulatory / compliance constraints (SOX, HIPPA, Country based)

– Performance (latency & chattiness)

– Trust (service availability & control)

– Portability i.e. avoiding lock in risk (vendor & proprietary standards)

– Value (cost benefit inc opex & capex saves)

– Security (data encrypted?)

– Service hours & utilisation

Clarity of Requirements and Constraints

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How do you score your needs...

Fit for purpose

Flexibility can reduce your service TCO, option to avoid cash outlay

RISK /COMPLIANCE

SERVICEAVAILABILITY

Your Company

ü

PERFORMANCE / COMPLEXITY ? ? ??

?

Examples

INTERNALLEGACY

ExternalCONSUMER / SME

CLOUD(Multi-tenancy)

ExternalCORPORATE

CLOUD(Multi-tenancy)

ExternalCAPTIVE CLOUD

(AKA UTILITY)

InternalCAPTIVECLOUD

InternalDEDICATED

û ûü

ü

ü

~$0.08 ~$0.09 ~$0.09 ~$0.15

ü

COST / CORE (~2.5Hhz) / HOUR ~$0.40

Months Weeks/Months Days+ 1 HourMINIMUM TERM

(Flex Down) Years

? ?ü

Your Company

Applying Cloud Principles Internally

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Q. What's are the leaders of the pack doing today?

If you can’t go to a true Cloud how do you apply Cloud principles

Improve efficiency - though quick wins and a strategic road map

1. Efficient DC – PUE 1.2 Google – do you know yours?

2. Engineer app from ground up – abstracted from hardware – HA at app layer

3. Commodity (non resilient/v. cheap) hardware

4. Automation - selective rather than

5. Self Service Portals

6. Rapid innovation

7. Transparent costs (incentivising appropriate behaviour)

A. Looking at how Cloud Services provide cost effective services and apply these to internal organisation

Strategy - Multi Source by Brokering Services

12

BUY

END USERS

BILL PARTICIPATE

BROKERING / WORKFLOW ORCHESTRATION / AUTOMATION

INTERNALSERVICES

WHITE LABELLEDSERVICES

EXTERNALSERVICES

MANAGE

DEVELOPERS

CONSUMERS

iSERVICE PORTAL

SERVICE LAYER

Automate and orchestrate to hide complexity from you clients

What's your ‘vision’ for servicing your clients needs...

Service Automation - Workflow orchestration in action

• IT automation to minimize costs and increase responsiveness to business demand • Minimizing manual intervention and increasing utilization of available capacity

Service & Operations Automation

INFRASTRUCTURE SERVICES

RESOURCE POOL RESOURCE POOL

IT OPERATIONS

COMPUTESTORAGE MIDDLEWARE

WORKFLOW ORCHESTRATION

CMDB

IT ENGINEERING BUSINESS

APPLICATION SERVICES

CRM ERP

REPORTING OMS

RISKPRE-TRADE

FINANCETRADING

Front OfficeBack Office ManagementRisk

TOOLS

TEST

DevelopmentDEVELOPMENT

DesignPatterns

ReleaseManagement

ConfigurationManagement

Standards

NETWORKSTRAIGHT-THROUGH

PROVISIONING

MONITORING &CONTROL

Planning &Engineering

Portal

Self ServicePortal

OperationsPortal

CHANGE &INCIDENT MNGT

SOFTWAREPROVISIONING

MONITORING& REPORTING

HARDWAREPROVISIONING

SPACE, POWER& COOLING

DeveloperTools

BusinessPortal

DESIGN REQUEST BILLING SERVICES

OPERATE

CONFIGURE

You will have elements of this already – its not a new concept

iService Portal – Client Self Serve

• Example - iService portal gives access to all administration and self-service tasks

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My Desktop Status30 Apr 200914:44 GMT

Account Settings•Forgotten passwords•Change account passwords•Change secret questions•Activate blackberryMore options...

End User Services•Add/remove software and services•Manage software licenses•Incident management and reportingMore options...

My Services Statustblondev#1 – app1 dev env

tblontest#1 – app1 test env

Production rates trading

Production LON RMDS

Production TOK RMDS

My Events

Desktop reboot on Friday please shutdown

Infrastructure Services•Manage environments•Application platform design•Manage provisioning•Costs and billing•Incident management and reporting•Audit and complianceMore options...

Manage Services

Knowledge Base

Keywords

Select topic

Reporting•View reports•Report designer•Manage reportsMore options...

Workflow Inbox

Workflow Outbox

Emails are being delayed by 5 mins, engineers are investigating, next update 15:00 GMT

30 Apr 200911:23 GMT

Next non farm payroll on 1 May 2009

29 Apr 200913:15 GMT

tblontest#1 lease has expired, 48 hours to renew before decom

30 Apr 200914:26 GMT

Pending

Expired

Active

Active

Sev2

29 Apr 200911:10 GMT

Application Visual C++ has crashed 3 times in 30 days click here for options to fix the problem

Batch prodapp1 failed, restart?

app2 utilization >110% of authorized

RMDS formclass change request

Production Db restart request

R1001901

R1001204

R1001898

Activeû

tblondev#1 new env purchase req

app2 peak utilization extension req

P2003320

P2002340

Chat

Chat

Chat

11

2

iService Portal – Service Acquisition

• Example - Transparent services competing with selected external service providers

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Facilities Network Storage Compute Environment Middleware Application Desktop

Selection

Type

Environment

Quantity

Performance

Storage

Storage Type

Security

OS

Network

Lease Time

1GbE

RHEL 5.1 (64-bit)

CIA 211

Sybase; NAS

500Gb

High

6

Production

Cloud

1 Month

Buy

Buy

Buy

Chat

1 2 3

1

2

Internal policy prohibits use for production

iService Portal – Business Management

• Example - Consolidated billing with view of environments, lease status, and usage. Ability to reduce cost and understand impact

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Citihub’s Automation Efficiency Assessment - Rapid

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