Current State of Cloud Computing

Joe KinsellaCTO & Founder

CloudHealth® Technologies

About Me Founder & CTO of CloudHealth

Technologies Entrepreneur & technical executive Cloud computing enthusiast, evangelist

& blogger Member of “first Scrum team”

Twitter: @joekinsellaEmail: joe@cloudhealthtech.comBlog: www.hightechinthehub.com

VPE at SilverBack & Sonian, Director at Dell Built large scale cloud public cloud infrastructure Passion for solving complex problems IT management software geek

Agenda

Review drivers of cloud adoption Discuss key trends happening in cloud– Cloud going mainstream– Winners & losers– Enterprise adoption– Governance– Complexity– Security– Cost– Vendor lock-in– Hybrid cloud

Why the Cloud Matters

Cloud Has Gone Mainstream

2.5%2006-2010

13.5%2011-2014

34%2015-2017

34%2018-2020

16%2020 and Beyond

Innovators

Early Adopters

Early Majority

Late Majority

Laggards

Public Cloud & SaaS Winning“Private cloud, as a thing, is near to or approaching zero.” - Adam Jacob, CTO, Chef

"All of them will go to Amazon or Microsoft in the end.” - Ed Anderson, VP Cloud Services, Gartner

SaaS & IaaS winning Amazon & Microsoft leading

pack Private cloud has struggled

– High cost of management– Inability to keep pace with

innovation Change in definition of hybrid

cloud indicator– 2011: private cloud center of hybrid

strategy– 2016: public cloud & SaaS center of

hybrid strategy

“By 2018, most software vendors will have fully shifted to a SaaS/PaaS code base.” - Frank Gens, Senior VP at IDC

Enterprise Adoption Is Accelerating Early cloud adoption

driven in lines of business (“going rogue”)

Shadow IT produced great innovation in mobile, SaaS, cloud & open source

But Shadow IT came with organization risk

Enterprise IT has shifted its approach to remain relevant to business partners

IT now increasingly driver of cloud adoption

Complexity Growing Multiple products,

services & tools Increased complexity of

infrastructure Pace of innovation Specialized knowledge Increased complexity of

management New distribution of

responsibilities Complexity of managing

TCO / ROI

We’re Still Wrestling with Governance Cloud consists of multiple

services, products & supporting tools

Each product has different SLAs, security model, pricing, management console & more

Cloud management increasingly shared across organization

IT often influencer / auditor not owner

Businesses want agility without sacrificing governance

Organizations increasingly in need new model governance cost, availability, security, security, availability, usage

Failure to effectively governance cloud major driver in failed / stalled adoption

Security – Still a Concern Cloud providers have made

substantial investments to make cloud secure

Rich features can make cloud more secure than on-premise

But still much ownership delegated to customer

New approach to security required to support new models

Risks in lack of security have never been higher

June 2014 - New Jersey-based maker of collaboration tools suffered DoS followed by request to contact attacker via email. Upon discovering breach of AWS accounts, Code Spaces attempted to lock out hacker. Hacker discovered attempt and proceeded to destroy infrastructure & data. Company shutdown.

Code Spaces Wake Up Call

Cost is Still a Priority Cost common reason for failure

(“cloud dropout”) Lack of clearly communicated

TCO/ROI can derail strategy Common reasons for cost

overruns– Lack of standardization, human error,

lack of ongoing optimization, lack of understanding of optimum infrastructure

Select 3rd party product to manage & report TCO

Cost management is continuous in cloud

Vendor Lock-In Concerns Increasing SaaS services increasingly

divergent Evolution from IaaS to PaaS

increasing likelihood of lock-in Data gravity decreases ability to

easily move Vendor lock in hard to avoid Customers increasingly looking for freedom of choices Brokerage giving way to heterogeneous future

Prepare for a Messy Hybrid Future

ASSETS

COST

USAGE

PERFORMANCE

AVAILABILITY

SECURITY

ASSETS

COST

USAGE

PERFORMANCE

AVAILABILITY

SECURITY

ASSETS

COST

USAGE

PERFORMANCE

AVAILABILITY

SECURITY

Private Clouds

Public Clouds

Private Datacenters

AGGREGATOR

PROVISIONING

MANAGEMENT

You

ASSETS

COST

USAGE

PERFORMANCE

AVAILABILITY

SECURITY

SaaS

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Questions?