Moving From Hype to Reality

chirpskulkInternet and Web Development

Nov 3, 2013 (3 years and 5 months ago)

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Ben
Pring

Research Vice President


Cloud Computing:

Moving From Hype to Reality

Photo Source:
Tipiro

I've
looked at clouds

from
both sides now

From up and down,

and
still somehow

It's cloud illusions
I
recall

I really don't know

clouds at
all

-
Joni Mitchell, "Both Sides Now
"


The hype around the cloud
obscures the very real sea
-
change occurring.


The cloud is
the platform.


Cloud computing disrupts
business models, operating
principles and competitive
strategies.


Transition between eras is
never smooth.


The cloud is your future.

The Cloud


Still

Beauty in the Eye of the
Beholder

1980

1990

2000

2010

2020

Internet

Web

Cloud

Connectivity

Information

and Browser UI

Services and
Web

API/Arch.

Focus on "Computing"

Utility Models

Service
Management

Grid

Real
-
Time
Infrastructure

Automated

Provisioning

Virtualization

Data Center Design

From the Enterprise

SaaS

Global
-
Class Design

Consumer

Applications

Web Platforms

Googleplex

Subsidized
Applications

Web 2.0 and

Mashups

From the Web

Focus on "the Cloud"

A revolutionary approach emerging from evolutionary change


Cloud Computing:

How Did We Get Here?

Gartner defines cloud computing as
“a
style of computing

where
scalable and
elastic IT
-
related capabilities are
provided” as
a service' to customers
using Internet
technologies.“

Five Attributes differentiate cloud computing

1

Service Based

Consumer concerns are abstracted from



provider
concerns through service interfaces
.

2

Scalable and Elastic

Services scale automatically & dynamically to



add
or remove resources as needed
.

3

Shared

Services share a pool of resources to build



economies
of scale.

4

Metered by Use

Services are tracked with usage metrics to



enable
multiple payment models
.

5

Internet Technologies

Services are delivered through use of Internet



identifiers
, formats and protocols
.

Gartner's
Definition of Cloud Computing and
the Critical Attributes of Cloud Services

Cloud Computing Service Models

Infrastructure as a Service

Business Services

Information Services

Software as a Service

Platform As a Service

Cloud

Enablers

Service
providers
can be
service
consumers
at the same
time.

Data Center

Middleware

The provider optimizes everything
below the service boundary, and hides
complexity from the consumer.

The consumer accesses,
configures and/or
extends the service and
builds everything needed
above the service
boundary


or just uses
the service.

BPO

Packaged
Applications

Information Feeds

Cloud is a Broad Topic

Focus is Critical to Reduce Confusion

4 Enterprise Workstreams



Consuming Cloud
Services
(
IaaS
,
PaaS
,
SaaS
, Information,
Process)


Implementing Cloud
Computing
Environments

Manage, Secure &
Govern Cloud
Services & Solutions
(public, private, hybrid)

3

2

1

3 Vendor Approaches



Deliver Cloud
Services


Deliver Traditional
Software, Hardware,
Appliance, C&SI,
Outsourcing and/or
Managed Services

2

1

Developing Cloud
-
Based Applications
and Solutions (
Migrate,
Enhance, Innovate)

4

Deliver Specialized
Software, Appliances
C&SI and/or Managed
Services

3

Mainstream Large Enterprise Use Cases,

Public Cloud Services Through 2012*

D


SaaS

(Analytics, E
-
Mail,
Collab
.)

E


Select Custom Applications

F


Parallelized or HPC Workloads

B


Prototyping/Proof of Concept

Base Use Case

Unpredictable and/or
volatile workloads

Project based workloads

Rapid provisioning

User self
-
service

Leverage economies of
scale and grid execution


Other Key Considerations

Manageable data risk

Simple connection to
internal applications

Service licensing in place

C


Web Site & Application Serving

A


Development/Test and Projects

* Excludes Information & Business Services

Leading Indicators of Accelerating Change


Client/server, on
-
premise
-
based license sales
have stagnated and are stagnate


Major supply
-
side consolidation has occurred
and is ongoing


SAP has announced no more "big" product
releases


Salesforce.com

has proved the
SaaS

concept


Service models are no longer on the "lunatic
fringe" but are an absolute imperative


Try getting VC funding for a C/S product

Leading Indicators of Accelerating Change #2


Groupon

$
950m

in VC funding (largest ever)


“Cloud” #1 search/enquiry term for Gartner in
2010 (second year in a row)


Microsoft to now
lead

with
SaaS


Muglia

departure to create legacy free leadership
for Cloud


Federal Government CIO/
CTO

issued Cloud
mandate


Motorola


“not why
SaaS

but why On Premise”?


Leading Indicators of Accelerating Change #3


Gartner AD Dec 2010 conference


95%
agreement with the statement “customization
should be the
last
resort not the first”


Zuckerberg



Time’s 2010 “Person of the Year”


Zuckerberg



“the next Bill Gates” Marc
Benioff



Creation of Open Data Center Alliance


CSC


75% of RFP’s have some element of
Cloud


Beyond CRM, Beyond AWS …

Over the course of the next
six
years, enterprises will spend
$112 billion cumulatively on
SaaS
,
PaaS

and
IaaS

combined.

From
"Hype
Cycle for Cloud Computing, 2010
,"
G0001557

Technology
Trigger

Peak of

Inflated
Expectations

Trough of
Disillusionment

Slope of Enlightenment

Plateau of
Productivity

time

expectations

Years to mainstream adoption:

less than 2 years

2 to 5 years

5 to 10 years

more than 10 years

obsolete

before plateau

As of
July 2010

Cloud Services Brokerage

Cloudbursting/Overdraft

Cloud Management Platforms

Community Cloud

Virtual Private

Cloud Computing

Browser

Client OS

DBMS as a Cloud Service

Cloud Application Development Tools

Cloud Testing Tools and Service

Hybrid Cloud Computing

Cloud
-
Enabled BPM Platforms

Cloud E
-
Mail

Enterprise Portals as a Service

Cloud APaaS

Compute Infrastructure Services

Cloud Service Integration

Cloud Storage

Elasticity

Platform as a

Service (PaaS)

Cloud Computing

Cloud/Web Platforms

Public Cloud Computing/the Cloud

Real
-
Time Infrastructure

Dedicated E
-
Mail Services

Enhanced Network Delivery

IT Infrastructure Utility

SaaS

SaaS Sales Force Automation

Virtualization

Cloud Advertising

Security as a Service

Cloud
-
Driven

Business and IT

Services

Cloud Computing for the Enterprise

Private Cloud Computing

Cloud Parallel Processing

Cloud
-
Computing Security Concerns

Integration as a Service

"In the Cloud" Security Services

Cloud E
-
mail and Collaboration Market

Adoption

by

Industry


Earlier

-
Higher Education

-
Manufacturing

-
Retail

-
Hospitality





Later

-
Healthcare Providers

-
Financial Services

-
Defense

-
Intelligence

Graphic Source: The Cloud E
-
Mail and Collaboration Services Market, G00205184 (23 July 2010)

Early running: Microsoft leads (but BPOS
-
D limited)

Google is No. 2, with IBM and Cisco in the wings

Microsoft's advantage: Installed base and minimal change for users.

Penetration/Diffusion Model

% penetration

0

20

40

60

Toe

Shoulder

2007

2012

2022

2017

10%

Midpoint

Cloud
Market Adoption Gaining Scale

SaaS

PaaS

IaaS


Platform Infrastructure a
high profile area.


Salesforce,
VMware and
Microsoft adding credibility
in
an early market
.


Integration as a
service
(part
of
brokerage
)
is
growing


(e.g
.,
IBM
acquisition of Cast Iron
).


Greater interest than
expected.


2013 market to be worth
$
8 billion
(up from $
6.8
billion
forecast last year)
and the 2014 market to
be worth $
10 billion.

$bn

$
mn

$bn


SaaS

establishing itself as new
norm for the software industry
.


Slightly slower spending on all

IT over the next few years.


Scale of deployments growing;
multithousand

seat deals are
increasingly common.


SucessFactors

won with a
420,000
-
seat deal with
Siemens.

Cloud Computing Delivery Models


Implementing

a Cloud Service


HW, SW, Data Centers


Manage the
Implementation


May Be Outsourced or Delivered
as a Managed Service


Consuming

a Cloud Service


No Hardware, SW or Data Centers


Manage the
Service


May Use Brokers to Facilitate Use of
or Add Value to the Service

Hybrid (Internal + External)

Exclusive

Cloud

Company A

Company A

Company B

Community

Cloud

Company A

Company B

Provider X

User Z

Public

Cloud

Company A

Packaged

Private Cloud

Company A

Custom

Private Cloud


Why Private Cloud Computing?

Cloud is evolutionary

Private cloud computing
offers a stepwise migration
to cloud computing


hybrid
will become the norm.

Cloud is immature

Many enterprise service needs
can't be met yet, and security,
service
-
level issues still exist.

Scale isn't everything

Quality, security, service levels
and specific market needs will
drive many solutions.

Cloud isn't always cheap

Service providers may have scale,
but they also have profit needs.

Private cloud isn't cheap

Re
-
architecting infrastructure
and data center management
requires investment.

IaaS vs. PaaS/SaaS

IaaS can be a tactical
solution when a strategic
change may be needed.

Private cloud is hard

Automation, processes,
funding model, service
catalog, culture, politics


all are difficult.

However …

The Evolution of Infrastructure

and Private Cloud Computing

Provisioning

Optimization

Availability

2010 through 2020

Policies

Services

Service
levels and
agility up

Cloud
-

enabled

Automated

Service Orientation

Workloads

Data

Resources

Identities

Real
-
Time Infrastructure

2002

Sprawled

Component Orientation

2002 through
2012

Asset, power
costs down,
flexibility up

Virtualized

Layer Orientation

Private Cloud Trends

Yes

66%

No

10%

Maybe

24%

Will your enterprise be
pursuing a private cloud
computing strategy by 2014?
(n=655)

Heavily
virtualized

24%

Private
cloud

41%

Hybrid
cloud

35%

By 2015, how would you
describe you virtualization
progress (choose one)? (n=55)

0

10

20

30

Where are
you with
private cloud
computing?
(n=81)

Implemented

2011 Plans

2012 Plans

No plans

Don’t know

35%

30%

16%

14%

5%

D/T

N
-
P

Prod

Not sure

Customer

relationship

Technology

Politics

Service desc

Culture

Funding/

chargeback

Processes

11

31

36

40

46

56

62

80

What are your
three biggest
challenges

in creating a
private cloud
computing
service? (n=167)

*

*

*

*

Are You Ready For Cloud Computing?


Organizational Assessment

-
Outsourcing Models and Vendor
Management

-
Governance and Investment Models


Roles, Responsibilities, Policies, Guidelines


Run, Grow and/or Transform the Business


Technology Readiness Assessment

-
Data Center, Infrastructure and
Operations

-
Architecture


Data
-
Readiness Assessment

-
Data Definitions and Security Levels

Consuming
Public Cloud
Services

Implementing
Private Cloud
Computing
Environments

Developing

Cloud
-
Centric
Applications and
Solutions

Manage, Secure &
Govern Cloud
Services

What Does a CIO Need To Do?


Strategy: How are you approaching cloud computing?

-
The only bad cloud strategy is no cloud strategy

-
Project teams, financial models, assessments


Governance: When, where, why and how will you consume
public or private cloud services?

-
Not everything will not move to external services

-
Determine how IT can act as a cloud service broker


Infrastructure and operations: To what extent do cloud models
drive design of your next
-
generation data centers

-
Private cloud is more than use of virtual servers


Security: What can be done to realistically assess risks and
mitigate the security, regulatory and compliance challenges?

-
Realistically assess and stratify risk

-
Carefully embrace new trust models


Application development: What is your cloud application strategy?

-
Look beyond hosted applications to cloud optimized applications

Thank You!

A Cloud Computing Decision Model:

Start With A Business Impact Analysis


Benefits

-
Agility


Capability and capacity on demand

-
Reduced operational complexity, cost

-
Shift from capital to operational cost

-
Variable operational cost models

-
Leverage provider scale and Innovation

-
New cloud
-
enabled business solutions


Challenges

-
Security and compliance

-
Legal and accounting uncertainties

-
Lack of transparency and control

-
Technical issues and service assurance

-
Integration and process Integrity

-
Greater cost over time for many use cases

Challenges

Benefit

Low &

Manageable

High or

Unmanageable

High &
Clear

Low or

Uncertain

Avoid

Embrace

Public

Experiment

Consider

Private

Scope

Timing

Direct

Business


Direct IT

Indirect

This
Year

Next
Year

Longer

Business Impact Analysis

Choosing the Right Path


Looks easier






Infrastructure

as a Service


Easier:
To encapsulate

an application,
but…


Harder:
New applications will
require traditional development
techniques


even for the cloud


Tactical:
The right solution for a
static/legacy application


but not
for an evolving, dynamic application




Looks harder …





Platform

as a Service


Harder:
Requires applications to be
cloud
-
aware and cloud
-
enabled,
but…


Easier:
To develop and maintain
new applications leveraging cloud
services


Strategic:
Enables cloud
-
enabled
scaling and flexibility




Three Important Best Practices

For Cloud Service Consumption


Modify existing service procurement
models to address cloud computing:

-
Build on standard self
-
service terms and conditions

-
Establish a range of trust models.

-
Selective review of provider implementation,
potentially through integrators or "cloud brokers"

-
Examine service interface format and granularity


Establish governance, trust and
security models:

-
Involve legal, finance, procurement, and business
professionals in the cloud project team

-
Service
-
level guarantees, operational metrics

-
Realistically assess risk and trust models

-
Make the IT organization your "cloud broker"


Develop Contingency Plans Up Front

-
Exit, Extension, Migration, Integration, Interoperability

Pick
-
List or

Programmatically

Defined Service Levels

Negotiated and

Contractually Defined

Service Levels

Cloud

Computing

Traditional

Off
-
Premise

Public Cloud Planning Assumptions


Today less than 50% of public cloud initiatives are initiated by IT and
IT controls less than 1/3 of the related budgets.


By 2012, enterprise concerns over lock
-
in and standards will supplant
security as the biggest objections to external cloud computing.


By 2013 community and exclusive cloud resource delivery models
will mature to address concerns with public cloud access and sharing


By 2013 60% of ISVs and 40% of IT organizations will have
completed production software projects using services of a
PaaS
.


Through year
-
end 2013, many enterprise
SaaS

applications will have
a higher total cost of ownership after three years versus on
-
premises
alternatives.


By 2015, 50% of all new application ISVs will be pure
SaaS

providers


By 2015, 50% of Global 1000 enterprises will rely on external
services for at least one critical revenue
-
generating process.


Through 2020, the most common use of cloud services will be hybrid
architectures combining on
-
premises and cloud
-
sourced capabilities.

What Does Private Cloud Look Like?

image




User

management

Right arrow

Limit access, set user
policies

image




Self
-
service

catalog and

pricing

Right arrow

Menu of offerings, from raw
compute to ready
-
to
-
run
application images

image




Service

automation and

usage metering

Right arrow

Automate service life cycle
from provisioning to
retirement

image




Resource

pool

Right arrow

“Virtualize" enterprise
resources (and not just with
VMs)

Private Cloud Architecture

Service Governor

Resource
Management


Configuration management


Performance management


Security

Service
Management


Service catalog


Service
-
level management


Service demand and financial management

Resources


Physical and virtual resources


Component managers

Access
Management


Self
-
service/programmable interface


Subscriber management


Identity and access management

External Management APIs

No Vendor "Has It All" for private cloud


Expect to Integrate Functionality From Many

Small Vendors


Adaptive Computing


DynamicOps


Eucalyptus Systems


newScale


Platform Computing


Univa



Large Vendors


BMC Software


CA (acquired 3Tera)


Citrix (acquired
VMLogix
)


HP


IBM


Microsoft


Novell


Quest (acquired
Surgient
)


Tibco

(acquired
DataSynapse
)


VMware

Private Cloud Computing Success
Factors and Best Practices


Virtualization must be brought in from the "Wild West" through

operational controls and risk exposure mitigation


New roles needed


solution architects, automation specialist,
service owner, cloud capacity manager, IT financial/costing analyst


Systematic top down or opportunistic approaches focused on a
specific pain point are viable paths to private cloud computing


Standardization is the hard part


of software stacks/versions, of
architectural patterns, of infrastructure components, of processes


Once standardized, the result is agility


faster time to market and
faster maintenance


and lower operational and capital costs


Expect to invest in solution integration and potentially development
of functionality not available in packaged software or appliances

Change is Hard; it's much more than Technology



Private Cloud Planning Assumptions


Through 2012, IT organizations will spend more on private cloud
computing investments than on offerings from public cloud providers.


By year
-
end 2012, half of the Global 100 will have at least one
service that they consider to be a private cloud
-
computing service,
using VMs as a basic building block.


By 2015, the majority of virtualized deployments will evolve to support
some private cloud computing capabilities, but less than 20% will be
"complete" private cloud deployments.


Through 2015, more than 90% of private cloud computing
deployments will be for infrastructure as a service.


By 2015, six vendors will account for at least 50% of private cloud
computing revenue.


The majority of private cloud computing services will evolve to
leverage public cloud services in a hybrid mode by 2015.


Through 2015, less than 2% of legacy applications will be able to
"burst" into the cloud while concurrently running in the data center

Securing Private & Public Cloud:

Thinking and Acting Differently

Adaptive Security Capabilities


Virtualized
security controls


Security administrators

program policies, not devices


Security policy based on

logical attributes


Context
-
aware


policy is

assigned via the context of

the workload and the

information supported


Virtual Private Network Technologies


Provide isolation from other tenants


Extend network addressing space


Enable security and monitoring tools to be
extended from the enterprise


Alternatively, place security controls in

the VM to move with the
workload


Amazon's
VPC


No dedicated
machines (yet)


Custom network

layer
with
Xen

hypervisor for

isolation


The Next Major
Battleground
:

Cloud Ecosystems and Brokers

Ecosystem
: A
business model where a
company or entity provides an set of services
and/or a managed implementation as a
foundation
to
build/host, deliver and/or support
delivery of a cloud service.


Brokerage
: A business model where a company or
entity adds value to one or more (public , private or
hybrid) cloud services on behalf of one or more
consumers of those services
.


Insure

Context

Security

Provisioning

Billing/Support


Aggregate

Arbitrate

Customize

Integrate

Govern

Service

Provider

Service
Provider

X

Service

Provider

Service
Consumer

A

Service

Provider

Brokerage

Role

Service

Provider

Service
Consumer

B

Service

Provider

Service
Consumer

C

Service

Provider

Service
Provider

Y

Service

Provider

Service
Provider

Z

Service

Provider

Service

Provider

Infrastructure

Platform

Management

Security

Service

Provider

Service Consumer

Pricing Svc. Delivery

Support

SLA Mgmt.

Manage, Secure & Govern Cloud Services
IT Becomes A Service Broker

Private Cloud

Private Cloud

Private Cloud

Private Cloud
Resources

Virtual
Private
Clouds

Virtual
Private
Clouds

Virtual
Private
Clouds

Virtual
Private

Public
Resources

Public
Resources

Public
Resources

Public
Resources

Access Management

Service Management

Service Governor

Resource Management

Placement

Optimization

Automated
Service Delivery

Cloud Computing: Private or Public?

Choose public


Proven


Total costs are less


Meets requirements:

-
Service
-
levels

-
Security

-
Legal/data ownership

-
Regulatory compliance

-
Failure remediation/disaster
recovery (including if the provider
goes out of business

Choose public


Proven


Total costs are less


Meets requirements:

-
Service
-
levels

-
Security

-
Legal/data ownership

-
Regulatory compliance

-
Failure remediation/disaster
recovery (including if the provider
goes out of business

The majority of private cloud computing services will evolve

to leverage public cloud services in a hybrid mode by 2015.

Go Hybrid