Cloud Computing: A Business Perspective - GridPP

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Cloud Computing:
Different Perspectives

Will Venters

utilitycomputing.wordpress.com pegasus.lse.ac.uk


Cloud Computing


Gartner:

“a style of computing where
massively scalable IT
-
related capabilities are
provided ‘as a service’ using Internet
technologies to multiple external customers”



“This elasticity of resources, without paying a
premium for large scale, is unprecedented in
the history of IT”

(Armbrust et al 2009).







Werner Vogels
:
CTO/VP

of Amazon

: This
misses “Pay per use” and
“on demand”

The cloud

service provider

utilitycomputing.wordpress.com pegasus.lse.ac.uk


Different styles of offering

utilitycomputing.wordpress.com pegasus.lse.ac.uk


Profit Models


Google Model: “Produce it and they will come”


Value out of meta
-
information


“mining reality”


Advertising


Pay
-
per
-
use


Licensing


Managed Service


Aligned products
-

“value
-
add”

utilitycomputing.wordpress.com pegasus.lse.ac.uk


Cloud Providers: IaaS / PaaS


Aim for high utilisation ...


Multi
-
tenanted and so large data centres.


Benefit from Economies of Scale.


Must load
-
balance across
industries/applications (electricity utilities)...


Profit by statistical multiplexing of services.


Must provide requisite SLA.

The Corporate /
Government

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Nature of Corporate
Computing


Lots of servers (e.g. Government has ~9000 server rooms)


Low server utilisation.


Silo’s of application stacks


and much replication.


Software licence issues and costly procurement.


70% to 80% of their budgets go to maintenance (Rittig
2007).


Capital Expenditure harder to justify in current economy
than operating expenditure.



But McKinsey notes typical data
-
centers can operate at
lower cost than required to outsource to Amazon EC2.







utilitycomputing.wordpress.com pegasus.lse.ac.uk


“Hollowing out IT
Departments”



In the long run the IT department is
unlikely to survive, at least not in its
familiar form. It will have little left
to do once the bulk of business
computing shifts out of private date
-
centres and into “the cloud”.
Business units and even individual
employees will be able to control the
processing of information directly,
without the legions of technical
specialists





(N.Carr 2009 p118)


utilitycomputing.wordpress.com pegasus.lse.ac.uk



Costs:
entry, ongoing, exit (Stallman’s “trap”


lock
-
in/interoperability).


Trust:
viability of partners, traditional Outsourcing
challenges


Security:
Private Clouds, Virtual Private clouds, Physical
risks of consolidated data
-
centres, 99.95 vs. 99.99


Policy:
Legal jurisdiction, Regulation(Sarbanes
-
Oxley/HIPPAA), IT
-
Forensics.


Expertise:
Role of Consultants as enablers of Cloud
Services, Customer
-
care issues.







Corporate
-
Cloud Issues

utilitycomputing.wordpress.com pegasus.lse.ac.uk


Themes in Corporate Cloud


Data, data, data.


Green IT


Testing new ideas.


Converting data
-
centres to Private
-
Clouds and thus
having transparent TCO for business units.


Developing World (BrIC)


SMEs and Startup (e.g. using Business Analytics)


Mashups


Ambidextrous Organisations (e.g. Guardian
Newspapers and MP expenses)


New organisational forms and Virtual Organisations.






utilitycomputing.wordpress.com pegasus.lse.ac.uk


But there is a legacy…




“5 Billion lines of COBOL code
are written a year”



Paul Daugherty, Chief Technology
Architect, Accenture, October 2009.




GridPP Perspective

?

utilitycomputing.wordpress.com pegasus.lse.ac.uk


GridPP and “the Cloud”


Opportunity for a new “language of eScience”


Lessons from the GridPP for Cloud
users/providers?


New models of collaboration for “community
cloud” development


(G
-
cloud etc.)


Lessons for corporates attacking large data
-
analytics and reality
-
mining.

Questions?

w.venters@lse.ac.uk

pegasus.lse.ac.uk

utilitycomputing.wordpress.com

utilitycomputing.wordpress.com pegasus.lse.ac.uk


Further Reading


Aluetta, K. (2010). Googled: The end of the world as we know it London, Virgin books.


Armbrust, M., A. Fox, et al. (2009). Above the Clouds: A Berkeley View of Cloud Computing,
UC Berkeley Reliable Adaptive Distributed Systems Laboratory.


Bandyopadhyay, Subhajyoti, Marston, Sean R., Li, Zhi and Ghalsasi, Anand, Cloud Computing:
The Business Perspective (November 23, 2009). Available at SSRN:
http://ssrn.com/abstract=1413545


Carr, N. (2005). "The End of Corporate Computing." MIT Sloan Management Review 46(3):
67
-
73.


Carr, N. (2008). The Big Switch: Rewiring the World, from Edison to Google, W. W. Norton &
Co.


Natis, Y., E. Knipp, et al. (2009). Who's Who in Application Platforms for Cloud Computing:
The Cloud Specialists. Research, Gartner.


Weinhardt, C., A. Anandasivam, et al. (2009). "Cloud Computing


A Classification, Business
Models, and Research Directions." Business & Information Systems Engineering 1(5): 391
-
399.


Yang, H. and M. Tate (2009). Where are we at with Cloud Computing. 20th Australasian
Conference on Information Systems, Melbourne.