Enterprise Computing Strategies

This gig is bigger than grid:from HPC to service orientation

John BarrJohn.barr@the451group.com+44 7988 764900Research Director Financial Markets

OGF22 Boston

Enterprise Computing Strategies

• ECS: what is it?

• ECS Report findings

• ECS Directions

• EU Grid Research

What is ECS?

• Builds on The 451 Group’s Grid Adoption Research Service – relationships with 250+ early adopters

• Grid is the starting point, but not the end point

• Insight into early adopter trends in FSI and other verticals

• Published reports, industry summits, surveys, advisory services

Where we’ve been:Grid Deployment Model

Where we’re going: ECS Evolution Roadmap

Enterprise Computing Strategies

Business Drivers : 2003-06 (cross vertical)

77%

57%

49%

41%

26%Time to Market

Competition

Do New Things

Save Money

Improved Performance

Business Drivers : 2007 (FSI)

Drivers - drill down

Grid Maturity

Deployment Strategies

• Creation of enterprise utilities is driving adoption.• Competitive advantage and growth remain key

individual drivers.• Driving out cost is a constant. • It’s a multidimensional world.• No right answer.• Groups with the widest range of activities and

assets are using grids to integrate them horizontally.

• Grid is a platform for running new workloads as shared services.

Virtualization and Grids

Virtualization and Grids:Vectors Intersect Elegantly

• Convergence of grids, multicore and virtualization = profound effects.

• It is a fundamental driver of change.• Not just a speed bump.• Virtualize everything?• Making on-demand capacity access from

third-party service providers more viable.• End of grid?

Enterprise and Public Utility

Grids and Enterprise Utilitya sweet spot

• Shared IT infrastructure = maturity of process.

• Requires groups of like-minded people• Leading adopters applying ‘Gridonomics’.• So is IT a profit center or not?• So what’s the unit of measure?

– Federal Reserve– NYSE

• SaaS and open source are additive, self-service is a driver.

• Can it cope with fast markets?

Grids and Public Utility Computing: coming

• Emphasis on flexibility and utilization as banks max out space.

• Users with enterprise utilities are more likely to examine hosted in-house/outsourcing options.

• Maturity of technology (like virtualization) and pricing models.

• Growing ISV appetite to support utility models. • The Amazon effect.• Grids deliver economies of scale for next-

generation hosting providers = increased adoption.• How is it being used?

Grids and Public Utility Computing:But Hold Your Horses

• Multi-tenanted resources/security/transparency/latency.

• On-demand, per-use pricing, software licensing.• SaaS pricing complexity, lack of application

services.• Capex to opex - loss of budget predictability.• Immaturity of pricing models. • Back in the conversation- won’t be an 'all or

nothing' play• Cost vs. in-house.A lot of marketing, but not yet a

market.

Challenges : 2003-06 (cross-sector)

46%

33%

33%

31%

28%

20%

19%

19%

18%

18%

15%

14%

1%Semantic Web

Skills Shortage

App Dev

Lack of Standards

Prove ROI

Grid to Utility

Grid to SOA

Grid Enabling Apps

Security

Data Mgmt

Cultural

Bandwidth

Licensing

Challenges: 2008 (FSI)

A Market in Transition

• Early adopters moving from Level 4 towards Level 6 in IT Evolution Model

• Integrating compute and datagrid• Intersection of grids and virtualization• Open source road crash?

• Applying ‘Gridonomics’

• Eco-Efficient IT

– Corporate governance, taxation, legislation

• Cloud computing

– Use of enterprise and public utility models

• Emphasis on flexibility and utilization as FSI users max out space

It’s not just Grid

The 451 Group in Europe

• Significant European Union Grid research investment

• EU Commission is our client

• 451 Project involvement

• NESSI, Challengers Initiative– help to define the research agenda

Conclusions

• Enterprise Computing Strategy– Evolution of Grid– Cloud?

• Improve connection of research to industrial exploitation

John BarrJohn.barr@the451group.com

OGF22 Boston

Enterprise Computing StrategyFSI SummitHosting Transformation Summit London, June 3-5 2008