cloud computing in the enterprise
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Cloud Computing in the EnterpriseTRANSCRIPT
1Entire contents © 2007 Forrester Research, Inc. All rights reserved.
February 12, 2008. Call in at 12:55 p.m. Eastern time
TeleconferenceIs Cloud Computing Viable For Enterprise IT?
James Staten, Principal Analyst
Forrester Research
2Entire contents © 2007 Forrester Research, Inc. All rights reserved.
Theme
Cloud Computing has the potential to disrupt IT
as we know it today.
3Entire contents © 2007 Forrester Research, Inc. All rights reserved.
Agenda
• IT implications of business at Internet speed
• Cloud computing defined
• Who is using it and how?
• Where this is headed
• What’s the enterprise IT play?
4Entire contents © 2007 Forrester Research, Inc. All rights reserved.
Agenda
• IT implications of business at Internet speed
• Cloud computing defined
• Who is using it and how?
• Where this is headed
• What’s the enterprise IT play?
5Entire contents © 2007 Forrester Research, Inc. All rights reserved.
Keeping up with the Jones’
Meet the new Mr. Jones.
He’s:
• Younger than you
• Faster than you
• More connected than you
• More global than you
• More flexible than you
• Investing more than you
• Didn’t used to be your competitor
6Entire contents © 2007 Forrester Research, Inc. All rights reserved.
What it takes to compete now
• Get to market faster
• Fail fast
• Do now, plan later
• Act below the budget line
If it succeeds:
• Build upon it faster
• Take it global fast
• Scale it fast (cloud scale)
7Entire contents © 2007 Forrester Research, Inc. All rights reserved.
What’s driving business to cloud-scale?
WindowsLive
8Entire contents © 2007 Forrester Research, Inc. All rights reserved.
The IT-business disconnect is growing
Business wants
• A place to experiment
• Fast integration
• Looser IT restrictions
• Responsiveness
IT wants
• Plenty of notice
• Predictability
• Stability
• Justification
Wham!
9Entire contents © 2007 Forrester Research, Inc. All rights reserved.
Who’s filling the gap?
Cloud computing
10Entire contents © 2007 Forrester Research, Inc. All rights reserved.
Agenda
• IT implications of business at Internet speed
• Cloud computing defined
• Who is using it and how?
• Where this is headed
• What’s the enterprise IT play?
11Entire contents © 2007 Forrester Research, Inc. All rights reserved.
Definition: cloud computing
A pool of highly scalable, abstracted infrastructure, capable of hosting end-customer applications,
that is billed by consumption.
12Entire contents © 2007 Forrester Research, Inc. All rights reserved.
Cloud computing characteristics
• Massive, abstracted infrastructure
» Components decided for you
• Dynamic allocation, scaling, movement of applications
• Pay per use
• No long-term commitments
• OS, application architecture independent
• No hardware or software to install
13Entire contents © 2007 Forrester Research, Inc. All rights reserved.
Cloud computing architectural fundamentals
Source: upcoming research, Cloud Computing: Not Ready For The Enterprise...Yet.
14Entire contents © 2007 Forrester Research, Inc. All rights reserved.
Cloud computing in use
Source: upcoming research, Cloud Computing: Not Ready For The Enterprise...Yet.
15Entire contents © 2007 Forrester Research, Inc. All rights reserved.
Who are the cloud providers today?Company Offering Description
Akamai ApplicationPerformance
Services
Content-delivery network solution that improves edgeperformance application experience by moving cloud applications closer to target users
Amazon.com Amazon WebServices
Elastic Compute Cloud (EC2) virtualized cloud infrastructure,Simple Storage Service (S3) cloud storage, various cloudimplemented application services
AretiInternet Virtual Hosting 3Tera AppLogic-based cloud hosting for small businesses
Enki Computing Utility 3Tera AppLogic-based cloud hosting and cloud-enabling services
Fortress ITX DynamicGrid 3Tera AppLogic-based cloud utility computing platform
Joyent Accelerator forApplications
Cloud computing platform built on OpenSolaris and JoyentAccelerators (virtual servers)
LayeredTechnology
GridLayer 3Tera AppLogic-based cloud utility computing platform
Salesforce.com Force.com Extendable cloud platform for Web-based applications
Terremark Infinistructure Cloud offering housed within Terremark collocation facilities
XCalibre FlexiScale Virtual iron-based cloud infrastructure with embedded clusterload balancing and HA services
Source: upcoming research, Cloud Computing: Not Ready For The Enterprise...Yet.
16Entire contents © 2007 Forrester Research, Inc. All rights reserved.
Cloud computing: the latest evolution of hosting
Source: upcoming research, Cloud Computing: Not Ready For The Enterprise...Yet.
17Entire contents © 2007 Forrester Research, Inc. All rights reserved.
Agenda
• IT implications of business at Internet speed
• Cloud computing defined
• Who is using it and how?
• Where this is headed
• What’s the enterprise IT play?
18Entire contents © 2007 Forrester Research, Inc. All rights reserved.
Cloud’s customers
• Startups
» Web-based business, SaaS, collaboration services, widget providers, mobile services, social networking
• Small businesses
» Online businesses, online presence, collaboration, enterprise integration
• Enterprises
» R&D projects, quick promotions, widgets, online collaboration, partner integration, social networking, new business ventures
19Entire contents © 2007 Forrester Research, Inc. All rights reserved.
The cloud value prop to enterprise
• Instant, easy access to resources
• No commitment
• Pay for it with a credit card
• Instant scale if you need it
• Try first, justify second
Source: http://open.blogs.nytimes.com
20Entire contents © 2007 Forrester Research, Inc. All rights reserved.
Agenda
• IT implications of business at Internet speed
• Cloud computing defined
• Who is using it and how?
• Where this is headed
• What’s the enterprise IT play?
21Entire contents © 2007 Forrester Research, Inc. All rights reserved.
Cloud advantages
• Massive scale yields economies of scale.
• Common infrastructure speeds innovation.
» Dynamic, automated infrastructure easier
• High utilization yields greater ROI.
• Success drives IT investment.
» IT is the business.
» If your customers succeed, so do you.
22Entire contents © 2007 Forrester Research, Inc. All rights reserved.
Where the advantages really show
• Internet scale — across megacenters
• Where applied to direct services and cloud customers
• Where a common business model can be deployed on a global scale
23Entire contents © 2007 Forrester Research, Inc. All rights reserved.
Who’s got next . . . most likely
Source:
24Entire contents © 2007 Forrester Research, Inc. All rights reserved.
Why this is so compelling: It’s a disruptive technology
• Doesn’t meet enterprise needs
• Isn’t easy for enterprises to control
• Doesn’t support general enterprise IT practices
• Good enough for startups and SMBs
• “Cheap” compute
Source: upcoming research, Cloud Computing: Not Ready For The Enterprise...Yet.
25Entire contents © 2007 Forrester Research, Inc. All rights reserved.
Agenda
• IT implications of business at Internet speed
• Cloud computing defined
• Who is using it and how?
• Where this is headed
• What’s the enterprise IT play?
26Entire contents © 2007 Forrester Research, Inc. All rights reserved.
Recommendations
• Start experimenting with the cloud.
• Be prepared for your business to experiment with it.
• Let them know what you want.
• Leverage the cloud infrastructure internally.
• Build your own cloud.
27Entire contents © 2007 Forrester Research, Inc. All rights reserved.
Who are the leading enterprise cloud builders today?
Company Offering
Dell Dell Data Center Solutions offers Dell Cloud Computing Solutions for creation, optimization and management of enterprise clouds.
IBM Blue Cloud is IBM’s initiative to help enterprises, governments and educational customers build and deploy their own clouds
3Tera AppLogic is a cloud infrastructure software offering.
Sun Network.com is Sun’s first foray into this space and the model upon which SunPS is architecting clouds today
RightScale Helps enterprises leverage clouds
Source: upcoming research, Cloud Computing: Not Ready For The Enterprise...Yet.
28Entire contents © 2007 Forrester Research, Inc. All rights reserved.
Cloud building blocks
Source: upcoming research, Cloud Computing: Not Ready For The Enterprise...Yet.
29Entire contents © 2007 Forrester Research, Inc. All rights reserved.
James Staten
+1 650.581.3824
www.forrester.com
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30Entire contents © 2007 Forrester Research, Inc. All rights reserved.
Selected bibliography
• December 24, 2007, “There Are Three IT Architectures Not One”
• November 14, 2007, “Hosted eCommerce: An Interim Solution”
• August 15, 2007, “What Can Enterprise Learn From The Web Giants?”
• July 26, 2007, “Developing Enterprise Web 2.0 Applications”
• February 22, 2007, “Google Releases Google Apps Premier Edition”