Cloud Computing in the Enterprise

From Enterprise IT in the Cloud Computing Era New IT Models for Business Growth & Innovation, Frank Gens, SVP & Chief Analyst, IDC

Cloud Services Architecture:Making sense of *aaS, ben.reid@ .com

(Good Luck) Defining Cloud Computing

• Software-as-a-Service – “My customer resource management (CRM) system

is out on the Internet!”• Grids vs. Clouds

– Shared Virtual Resources– Batch Jobs vs. Online Applications– Different Approaches to State Management

• Network Diagrams– A service is “on a cloud somewhere”

• Virtualization Platforms & APIs– Hardware can be manipulated with software

What problems are we trying to solve?

1. Cost 2. Scalability3. Flexibility4. Availability5. Portability 6. Collaboration7. Enable new stuff that we couldn't do before!

"The cloud" - undersea cable view

The cloud - datacenter view•Massive build-out happening right now

•Google, Microsoft, Amazon, Yahoo are tier 1•HP (EDS), IBM, Rackspace?

•Scale is key

The cloud - logical view• The Cloud: The Universe of all Web Services

The "cloud" - definitions and hypeIs the "cloud":• Infrastructure aaS?

– Grid / utility / "on demand" computing– Shared utility – eg Amazon EC2

• Platform aaS?– Ready-for-deployment scalable application platform– Google apps, Force.com, Heroku, Bungee Labs– Microsoft! (Azure)

• Software aaS?– Used to be called "application service providers" – Multitenanted architectures: SalesForce.com,Xero – ...many, many others (3000 worldwide at least)

• Wide area SOA?– "Universe of all (web) services"– WS-* and REST (and Etch?) standards– Data as a service? (StrikeIron)

• *aaS?– "Universe of all economic services"– Can traditional "services" (law, accountancy, plumbing) be included in the logical

Cloud?

IDC Definitions (Sept 2008)

Cloud Services = Consumer and Business products, Services, and solutions that are delivered and consumed in real-time over the Internet

Cloud Computing = an emerging IT development, deployment and delivery model, enabling real-time delivery of products, services and solutions over the Internet (i.e., enabling cloud services) (From http://blogs.idc.com/ie/?p=190)

Key cloud services attributes• Off-site, third-party provider • Accessed via Internet • Minimal/no IT skills needed to implement • Provisioning:

– Self-service requesting – Near-real-time deployment – Dynamic and fine-grained scaling

• Pricing model:– Fine-grained – Usage-based (at least available as an option)

• User interface: browsers and their successors • System interface: Web services APIs • Shared resources/common versions (customization

"around" the shared resources) According to research firm IDC

Cloud business models

• Consumption– Pay-per-use– Perpetual license– Renewable license / Subscription

• Advertising funded

• "Bits to objects"

• Value-add for existing products– Build a user community

What's out there right now – IaaS(Infrastructure as a Service)

• Amazon– Infrastructure web services

• EC2 (Elastic Compute Cloud) - now with Windows (99.95% availability!)

• S3 (Simple Storage Service)• SimpleDB• SQS (Simple Queue Service)

– Payments and Billing– On-demand workforce (Mechanical Turk) – Search (Alexa)– Fulfilment web service

• Rackspace– Mosso – JungleDisk– SliceHost

What's out there right now – PaaS(Platform as a Service)

• Google Apps– Python only– BigTable

• Heroku– Ruby on Rails hosted on EC2

• Force.com– Apex

• Bungee Connect– Bungee Logic (a C-family language similar to C#)

• Microsoft!– Azure - .NET hosted in MS datacentres

What's out there right now – SaaS(Software as a Service)

Microsoft Windows Azure

The Azure™ Services Platform (Azure) is an internet-scale cloud services platform hosted in Microsoft data centers, which provides an operating system and a set of developer services that can be used individually or together.

What problems will come up?

1. Regulatory Issues2. Legislative Issues3. Geopolitical4. Security Vulnerabilities5. Application Architecture6. Hardware dependencies7. Control over your servers8. Cost of the cloud9. If it Ain’t Broke Don’t Fix it

A simple cloud services architecture today

The Cloud Provider Continuum

A Cloud Technology Reference Model

Begin with the Basic Data Center

A Cloud Technology Reference Model

Add easy software access to:

Elements - HW/SW/Network/Storage Settings, Installations, and Configurations

Resources - Reservations from a pool of excess capacity in storage, computing, and network

A Cloud Technology Reference Model

Add some visibility:

A Web of Metadata (What uses or contains what other things?)

Lifecycle (when and how can things change?)

A Cloud Technology Reference Model

Add some real-world context:

Governance (Who has authority / responsibility to change, and how?)

Architecture Views (How are my concerns addressed?)

A Cloud Technology Reference Model

Infrastructure Clouds Start Here:

“Cloud Servers” Try to Extend Infra:

Cloud Platforms, As Perceived Today

How Cloud Platforms Likely Will Evolve

Filling in the Architecture Gap

Why Cloud Computing Is Very Important

67.2%

73.3%

77.0%

77.5%

77.9%

81.5%

83.6%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Sharing systems/information simpler

Encourages more standard IT

Offers the latest functionality

Less in-house IT staff, costs

Low monthly payments

Pay only for what you use

Easy/fast to deploy

% responding 3, 4 or 5

Q: Rate the benefits commonly ascribed to the 'cloud'/on-demand model

(1=not important, 5=very important)

Source: IDC Enterprise Panel, August 2008 n=244

When to Bring Cloud Computing Into Plans?

Organizations Shifting Fast In Cloud Use

Q: Current and future level use of cloud services in your organization? (1=none, 5=widespread)

Source: IDC Enterprise Panel, August 2008 n=244

Storage Capacity

Server Capacity

App Development/Deployment

Business Apps

Personal Apps

Collaborative Apps

IT Management Apps

31.5%

28.7%

25.9%

34.0%

36.1%

46.3%

39.3%

15.5%

15.6%

16.8%

23.4%

25.0%

25.4%

26.2%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

% responding 4 or 5

CurrentIn 3 years

Cloud Computing Is “Crossing the Chasm”

Source: The Chasm Group

Challenges Suppliers Are Tackling

Q: Rate the challenges/issues of the 'cloud'/on-demand model (1=not significant, 5=very significant)

Not enough majorsuppliers yet

Bringing back in-housemay be difficult

Worried cloud willcost more

Not enough ability tocustomize

Hard to integrate within-house IT

Availability

Performance

Security

74.6%

80.3%

81.1%

83.3%

84.5%

84.8%

88.1%

88.5%

65% 70% 75% 80% 85% 90%

% responding 3, 4 or 5

•Implications for IT Strategy & Organization

Implications for IT Strategy & Organization

Cloud will be part of an expanding portfolio of options– Along with Traditional On-Premise and Next-gen On-Premise

If organization is a “visionary” or “pragmatist”, it’s time now to start getting experience using Cloud offerings

• Phase-in Cloud where the advantages tip the scales

SOA – especially as an IT management approach – is essential to flexible and integratable IT services sourcing

– Cloud services will allow some offload of SOA implementation to cloud services providers, and speed the Dynamic IT journey

IT skills portfolio will continue to shiftSupplier Mgt, Web Svcs Dev/Integration, Bus. Process Insight IT Ops “boiler room”, Application technical specialists

When to use cloud services now?

• Non-sensitive binary object storage (docs, pdfs, images etc) – use S3 or similar NOW!

• Moving server hosting to the Cloud: business case needs developing– Management tools not mature– Not ready for Enterprise apps - but soon

• Azure will be a key player for PaaS– Google, SalesForce(?) main competitors– Lots of niches

• SaaS– When setting up a new business, use it now! Don't saddle your

business with expensive, inflexible, rapidly depreciating assets you don't need!