Opportunites and Challenges in Cloud COmputing

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Opportunities and Challenges in Cloud Computing - IBM, Shailab Nagar, As part of cloud symposium, at ACM Bangalore Compute 2009

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<ul><li> 1. Opportunities &amp; Challenges in Cloud Computing Shailabh Nagar IBMJan 2009 </li></ul> <p> 2. The Cloud has 5 distinct layers and value propositions. Very significant opportunities exist abovethe infrastructure level, where much of the cloud discussion has been focused previously.2 3. Evolving a cloud definitionIT Customers:IT Analysts:- Flexible pricing / business models - Variable pricing- Outsourced, on demand- No long term commitmentsprovisioning - Hosted, on dem. provisioning- Unlimited scaling- Massive, elastic scaling- SW developer platform- Standard Internet technology- Flexible - Abstracted infrastructure - Service-oriented Common Attributes of Clouds Elastic scaling Rapid provisioning Advanced virtualizationFlexible pricingPress:Financial Analysts: - Pay by consumption- Utility pricing - Lower costs - Hosted, a-a-s provisioning - On demand provisioning- Parallel, on demand processing - Grid and SaaS combination - Scalable - Massive scaling - Virtualized, efficient infrastructure - Efficient infrastructure- Flexible - Simple and easy3 4. Cloud Computing is a model of shared network-delivered services, both public and private, in which the user sees only the service, and need not worry about the implementation or infrastructure Consumable web- PeopleStandard InternetServicesdelivered servicestechnologies requiring no installation,minimal setup Business Important roles for both Services public and private Rapid provisioningclouds.Application ServicesService layers separated by clean APIs, enabling Flexible pricing composition.PlatformServicesBuilt on radically Elastic scaling scalable, manageable, Infrastructure virtualized IT resourcesAdvancedServicesvirtualization 4 5. Cloud Computing Definition: Another view End Users / Requestors New combinations of services to form differentiating value Government/ Consumers Industrypropositions at lowerAcademics(Startups/ SMB/ Enterprise) costs in shorter time Cloud applications enable the simplification INNOVATIVE BUSINESS MODELSof complex services A cloud computing platform combines modular components SIMPLIFIED SERVICES on a service oriented architecture An Elastic pool of high Public Cloudperformance virtualized compute resources Internet protocol based Enterprise Cloudconvergence of networks and devices 5 6. There are major opportunities at all levels of the stack, and the Cloud will grow rapidly at the top layers Cloud(Application, Business and People) Answer Live MeshPeople ServicesHealth BETA Service Cloud LayersBusiness Services Application Services Platform ServicesInfrastructure Services2009 20062000 Static, dedicated, outsourcedNetwork-delivered, off-premisesShared, automated, dynamic6 7. The Cloud has 5 distinct layers and value propositions. Very significant opportunities exist abovethe infrastructure level, where much of the cloud discussion has been focused previously. The Cloud model can be truly disruptive if it can reduce the IT operational expenses ofenterprises: development, management, integration, and energy consumption.7 8. IT Operational Challenges Rising operational costs of systems and networking Costs &amp; Service Explosion in volume of data and information Delivery Difficulty in deploying new applications and servicesSecurity of your assets and your clients information Business ResiliencyLandslide of compliance requirements and government mandates &amp; Security Systems and applications need to be availableRising energy costs and rising energy demand Energy Power and thermal issues inhibit operations Efficiency Environmental compliance and social responsibilityUnpredictable workload characteristics Changing application Manage fast growth of smart objects and data volumes models Need maximum flexibility for real time interaction 8 9. Cloud technologies offer operational expense reductions at all layers People cloud, tagging, wisdom of crowds People Break linear relationship between revenue and labor costsServices Business Businesses (i.e. Telco) can easily experiment with new services Services Time-to-value of new services greatly decreased Improved consumability via Web delivery of apps and servicesApplication Web-resident development, deployment, update, app management Services Easy app composition reduces development costs Platform Deployment technologies uncouple service deployment from hardware.Services Ensembles simplify hardware (server / stg / network) management. Infrastructure Virtual image management contains scaling costs of update, etc.Services Power and heat management reduce energy costs / emissions 9 10. Global Annual IT Spending Estimated US$B 1996-2010 300 Power and Cooling Costs Server Mgt and Admin Costs 250 New Server Spending 200 Uncontrolled system 150 management costs 100 Steady CAPEX spend:50 Not the key problem to address $0B Industry hypothesis is that clouds will be driven by scale. However to capitalize on this, providers must address the server management cost problem, not just CAPEX10 11. Business Case Results: IBM TAP Cloud Deployment TAP - The Technology Adoption Program is IBM's new model for managing technology to drive innovation With Cloud Without Cloud Business Case Results New 100% Annual savings: 87% Development Liberated Payback Period: 32 daysfunding for new SoftwareStrategicReturn On Investment (ROI): 2673 %development,CostsChange transformationCapacityinvestment or Power direct saving Costs CurrentDeployment (1-time)ITLabor CostsSpend(Operations and SoftwareCostsMaintenance)Power Costs (- 88.9%)Hardware, labor &amp;power savingsHardware Labor Costsreduced annual costCosts ( - 80.7%)of operation by (annualized) 86.7% Hardware Costs( - 88.7%) Note: 3-Year Depreciation Period with 10% Discount Rate11 12. Benefits of a Services-oriented Cloud Application development Enterprise application development with Websphere 7.0Traditional native approach Cloud-based deployment Order on cloud service (&lt; 1min) OS installation =~ 1 hour Deploy appliance to target and activate (7 min) WAS download + unzip + install = 8 + 5 + 35 = 48 WAS cell ready to deploy application = 8 minmin Web2.0 application development with Linux, Apache, MySQL, PHP (LAMP) Traditional native approach Cloud-based deployment Order on cloud service (&lt; 1min) OS installation (1 hr) Deploy XAMPP appliance to target and activate (6 Apache download, install, config =~ 30 min min) MySQL =~ 30 min, PHP =~ 30 min, Perl =~ 30 min LAMP stack ready to deploy application: ~ 7 min Admin tools =~ 1 hrReady to use: ~ 4 hrs Access to service offering content from serviceResource procurement, setup, and provisioning catalogManagement and monitoring of virtualized Standardized deployment with less human error infrastructure Accelerated provisioning and on-boarding for new customersManual on-boarding onto new applications and services No procurement and management of infrastructure12 13. The Cloud has 5 distinct layers and value propositions. Very significant opportunities exist abovethe infrastructure level, where much of the cloud discussion has been focused previously. The Cloud model can be truly disruptive if it can reduce the IT operational expenses ofenterprises: development, management, integration, and energy consumption.The challenge is in achieving the operational expense reduction at all layers of the cloud at asufficient scale. Weve been here before and opportunity is knocking once more !13 14. Cloud management services. A layer of management services will be required to provide enterprise-level QoS transparently, from both intranet and public clouds. Using Cloud services does not free the service user from all management requirements. Confidential Data Encrypted/anonymized data CRM application Public/ Private Clouds Primary serviceCore business HA service applicationPublic cloudBackup serviceAnalyticsapplication Dashboard, PDNon-cloud 14 15. Architectural Model for Cloud Computing Service Service Request &amp; IT Infrastructure &amp; ApplicationCreation &amp; DeploymentOperations Provider Virtual ImageEnd UserDatacenter ManagementService ManagementRequests Infrastructure &amp; OperatorsAccess User Request Management/Self Service PortalServicesService Lifecycle ManagementDesign Service Catalog,&amp; Build Image Lifecycle Performance Availability/Backup/ Component ProvisioningManagement ManagementRestoreLibrarySecurity: Identity, Access, Integrity,Usage LicenseAccounting ManagementIsolation, Audit &amp; Compliance Image Library(Store) Cloud Administrator Service Oriented ArchitectureInformation Architecture Optimized Middleware (image deployment, integrated security, workload mgmt., high-availability) Depl </p>