Cloud Computing
The Evolution of IT
17 March 2010
Agenda
Market Overview
What Is the State of Cloud Computing Today
Competitive Highlights
Vendor Comparison and SWOT Analysis
Future Outlook
Cloud Services
Definition
Consumer and business products, services, and solutions
delivered and consumed in real-time over the Internet
Cloud Services
Public -
open to a largely unrestricted universe of potential users; designed for a market, not a single enterprisePrivate
- designed for, and access restricted to, a single enterprise (orextended enterprise); an internal shared resource, not a commercial offering; IT Org is the “vendor” of the shared/std service to its users
Deployment
Models
[Note: large gray zones between these two broad categories]
Shared, standard service – built for a market (public), not a single customer
Solution-packaged
– a “turnkey” offering, integrates required resources
Self-service – admin, provisioning; may require some “on-boarding” support
Elastic scaling – dynamic and fine-grained
Use-based pricing
– supported by service metering
Accessible via the Internet/IP – ubiquitous (authorized) network access
Standard UI technologies
– browsers, RIA clients and underlying technologies
Published service interface/API
– e.g., web services APIs
Key
Three Core Principals of Cloud
Computing
Abstraction
CAPEX OPEX
How Cloud Layers Map to Use Cases
Cloud
Applications
(Apps-as-a-Service)
Cloud
(Application)Platforms
(Platform-as-a-Service)
Cloud
Infrastructure
(Infrastructure-as-a-Service)
Application Development Software Application Server Middleware Data Access, Analysis, and Delivery Information & Data Management
Integration & Process Automation Middleware Other Application Dev and Deployment
Quality & Life-Cycle Tools Enterprise Portals
Servers Storage Networks Clients
System and Network Management Software Security Software
Storage Software System Software
Collaborative Applications Content Applications
Enterprise Resource Management Applications Supply Chain Management Applications
Operations and Manufacturing Applications Engineering Applications
Customer Relationship Management Applications
Cloud Architecture
H
y
b
r
i
d
• Enterprise’s cloud services
portfolio includes both private
and public cloud services
• Some specific services are
delivered through a
combination of public and
private models (e.g., private
cloud “bursting to” a public
cloud service)
Public
• Designed for a
market, not a single
enterprise
• Open to a largely
unrestricted universe
of potential users
Private
• Designed for, and access
restricted to, a single
enterprise (or extended
enterprise)
• An internal shared
resource, not a commercial
offering
Cloud Services as a
% of IT
Worldwide IT Spending by Consumption Model
IT Cloud Services On-Premise IT
5%
10%
CAGR 26% 4% 44 17 0 100 200 300 400 500 600 2009 2013 W orldw ide IT Spending ($ billion) 359 416IT Cloud Services Forecast
Update
Applications
49%
App
Dev/Deploy
10%
Storage
9%
Servers
12%
Infra-structure
Software
20%
Applications
38%
App
Dev/Deploy
13%
Storage
14%
Servers
15%
Infra-structure
Software
20%
Worldwide IT Cloud Services Revenue* by Product/Service Type
* Includes revenue from delivery of Applications, Application Development & Deployment Software, Systems Infrastructure Software, Server capacity and Disk Storage capacity via the Cloud Services model; AD&D excludes online B2B messaging
providers/exchanges
2009
$17.4 billion
2013
$44.2 billion
Cloud Services
Growth
Impact
460.4 433.1 430 435 440 445 450 455 460 465 470 475 480 4852012
2013
W orldw ide IT Spending ($ billion)Net new IT growth = $27.3 billion
IT Cloud
IT Cloud Services growth Traditional IT product growth
27%
73%
Source: IDC, September 2009
Today an Optimally Run DC Beats
Cloud Costs in the Long Run, but…..
£0.00 £5,000,000.00 £10,000,000.00 £15,000,000.00 £20,000,000.00 £25,000,000.00 £30,000,000.00 Start up cost Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Data Centre Cloud
In H2 2009, IDC analyzed the costs of running 100% of a typical
large businesses IT infrastructure in a DC versus the cloud:
After year 3,
cloud costs
exceeded the
DC
Final Score
DC: £15M
Cloud: £26M
Even with 3 year
Poorly Run DCs Can Very Quickly
Dwarf Cloud Costs
£0.00 £5,000,000.00 £10,000,000.00 £15,000,000.00 £20,000,000.00 £25,000,000.00 £30,000,000.00 £35,000,000.00 £40,000,000.00 £45,000,000.00 £50,000,000.00 Start up cost Year 2 Year 4 Year 6 Year 8 Year 10 Data Centre Cloud
Most businesses’ DCs are a far cry from completely optimized.
A worst case scenario of the analysis shows a different picture:
DC reaches space
capacity in year 3.
50% refresh to
high-end servers required
Year 6 requires build
out for new facility +
expensive refresh due
to limited space
Cloud costs are
Summary: The State of Cloud Services
Today
Cloud services will be a key strategic technology that stands to
rapidly grow in importance over the next 3 years. Most
important points for planning include:
Today Cloud Applications (SaaS) remains the most mature
technology, but Cloud Infrastructure and Platforms will develop
rapidly
The price of cloud services will decline further as more vendors
launch offerings, and competition increases
Agenda
Market Overview
What Is the State of Cloud Computing Today
Competitive Highlights
Vendor Comparison and SWOT Analysis
Future Outlook
Cloud Landscape
Vendor Strategies & Backgrounds
Traditional IT Cloud IT Infrastructure Platform Software IaaS PaaS SaaS Cloud
Business Google Amazon
SalesForce.com IBM Microsoft VMware Azure vCloud App Engine Google Apps EC2 Force.com Computing On
IBM Compute On Demand Overview
Product Name
Year of
Launch
Cloud Service
Type
Compute on Demand
Infrastructure as a Service
2002
Strengths
Weaknesses
Opportunities
Threats
Very strong global reach, and support for a wide range of platforms
Long experience and large degree of investment into service by IBM
Standards-based approach, but not agreed to by some key vendors
Offering made for large enterprises and government
Flexible variable cost model, with options for hourly, weekly, and annual rates
Wide range of security and management tools within the offering
IBM focus broadening to “Dynamic Infrastructure” offerings
Amazon Web Services Overview
Product Name
Year of
Launch
Cloud Service
Type
Amazon Web Services
Infrastructure as a Service
2006
Strengths
Weaknesses
Opportunities
Threats
Utilizes Amazon’s IT infrastructure – 15 years of development and hundreds of millions invested
Highly flexible, supports wide range of
programming models, OS’ and DBs
Persistent storage costs extra – must use Amazon EB3 or S3
Support seems expensive versus alternatives
ranging from $100 USD to $400 USD per month
Great for applications that require heavy processing for short duration delivering big savings
Continued build out of platform enabling
greater capabilities and easier usage
GoGrid, Google App Engine, and IBM offer competing services
Amazon lacks customer relationship with
Rackspace CloudServers Overview
Product Name
Year of
Launch
Cloud Service
Type
Cloud Servers
Infrastructure as a Service
March 2006
Strengths
Weaknesses
Opportunities
Threats
Allows combination of cloud and dedicated servers
Standards-based approach to API based on DMTF
Currently only available in US
Currently only supports Linux instances (Windows instances in beta)
Global expansion leveraging Rackspace’s DCs in UK and Asia
One of the most open and flexible APIs
Limited tools means lots of manual monitoring and optimization
GoGrid Cloud Hosting Overview
Product Name
Year of
Launch
Cloud Service
Type
Cloud Hosting
Infrastructure as a Service
April 2008
Strengths
Weaknesses
Opportunities
Threats
Very high performance specs versus other platforms
Free support, and management tools
Majority of operation US-centric – not yet a global player
No dynamic scaling for workloads
Flexibility: allows pure cloud hosting and hybrid hosting
API supports Java, Python, PHP, and Ruby
Smaller vendor, means potentially uncertain future
Windows Azure Overview
Product Name
Year of
Launch
Cloud Service
Type
Windows Azure
Platform as a Service
Beta since July 2009 – launch Feb 2010
Strengths
Weaknesses
Opportunities
Threats
Built to allow applications to run in cloud, or partly on premise and partly in cloud
Uses Visual Studio SDK. Extensive automation features built in
Limited support for non Microsoft OS’, programming languages, and DBs Current cost model problematic if only running small applications
Easy leap for businesses standardized on Microsoft
Automation features for load balancing, VM management, mean lower barrier for entry
Main competition at the moment coming from Amazon and Google
Force.com Overview
Product Name
Year of
Launch
Cloud Service
Type
Force.com
Platform as a Service
September 2007
Strengths
Weaknesses
Opportunities
Threats
Developers can build on existing salesforce.com data objects, security models, user interfaces, etc.
Over 130,000 custom apps deployed
Less control over platform versus alternatives
No on-premise option – can only run in salesforce.com hosted environment
Integration with 800+ salesforce.com apps ISV partnerships with BMC, and CA allows more routes to market
Upper limit on growth??? Platform versus salesforce.com’s core business
Google App Engine Overview
Product Name
Year of
Launch
Cloud Service
Type
Google App Engine
Platform as a Service
Beta since April 2008
Strengths
Weaknesses
Opportunities
Threats
Free to start: 500 MB storage, and 5 million page views per month
Automatic scaling and management. No VM tailoring required, just write your app
Python is main development language. Java is supported but not all classes No support for relational DB; must use Google Bigtables
Extremely low barrier for entry, ideal for pilots and testing
Still in Beta – expect development of new features
Strong lock in potential. Powerful but non standard APIs
VMware vCloud Overview
Product Name
Year of
Launch
Cloud Service
Type
vCloud
Platform as a Service
August 2009
Strengths
Weaknesses
Opportunities
Threats
Extension of VMware DC technology, potentially very good fit for VMware customers
Growing eco-system of partners
Still in very early stages of building out partner offerings
Some aspects of the technology still under development
Good fit for businesses wishing to develop hybrid cloud architecture
Compelling argument for portability given that eco-system of providers will all use same underlying platform and standards
Support for hypervisors outside of VMware at the moment is limited (and could remain so)
Agenda
Market Overview
What Is the State of Cloud Computing Today
Competitive Highlights
Vendor Comparison and SWOT Analysis
Future Outlook
Comparing the Two Key Aspects of Current
Cloud Offerings
Automation
Adaptability
STRENGTH
Lower Cost: Easier
migration &
management
Capable of running almost
any type of system,
regardless of development
platform or infrastructure
WEAKNESS
Inflexibility in
development and
infrastructure
environment
Significant effort required to
migrate, optimize and
manage system within cloud
environments
Cloud User Surveys -
Challenges
Q: Rate the
challenges/issues
of the 'cloud'/on-demand model
Source: IDC Enterprise Panel, 3Q09, n = 263, September 2009 (Scale: 1 = Not at all concerned 5 = Very concerned)
76.0% 76.8% 79.8% 80.2% 81.0% 82.9% 83.3% 87.5% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Not enough ability to customize Hard to integrate with in-house IT Bringing back in-house may be difficult Lack of interoperability standards On-demand paym’t model may cost more Performance Availability
