The Politics Of Cloud Computing

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1 The Politics Of Cloud Computing Evolving Managed Services Adoption In Medium Sized Companies Martin Hingley IT Candor Limited Web Site:

2 Agenda Some Market Sizing Outsourcing, Managed Services and SaaS Spending The Development Of Cloud Computing Political Considerations Forecasts And Conclusions

3 UK Cloud Computing developments NGD opens a massive Cloud Computing data centre in Newport BT and Logica become customers HP opens and new air cooled data centre in Wynyard Centrix Software offers Workspace Discovery and Workspace iq Quest Software builds monitoring and metering products HP, IBM and Fujitsu help with Implementation Services and SaaS mainly for large organisations Citrix continues to build client access offerings, big plans for Cloud DataScape Online offers self-service SaaS Double-Take Software offers Recovery as a Service Storage Online considers offering online storage FNZ offers Platform as a Service Fasthosts launches Rise SaaS for SMBs

4 The Effect of The Credit Crunch on UK IT Spending Growth ( ) 25% 20% 15% 10% 5% 0% -5% -10% Large Companies Consumer Medium Companies Small Companies Total IT Spending Consumer and small business spending remains positive Medium and large business spending remains negative Market development is clouded by exchange rate movements

5 The Declining Value of The Pound The massive collapse in the value of the Pound 0.8 Is nearing parity with Euro / /$ Two dollars to a pound in 2007 is one and a half today This is making IT kit more expensive in the UK

6 Medium Company Quarterly Spending on IT Service and Software ( m) 1, Internet Service Implementation Service Application Software Outsourcing/ Managed Services Hardware Maintenance Operating System Software Maintenance Software as a Service Infrastructure Software Medium sized companies have 100-1k employees IT usage varies between advanced and non strategic Implementation Services is biggest category Spending on Internet Service larger than on Application Software Outsourcing/ Managed Service and SaaS are growing fastest

7 Medium Company Quarterly Spending on IT Hardware ( m) 350 Networking is largest category Storage System PC Converged Device Server Networking Peripheral PC is small and similar to spending on Converged Device Storage Systems and Servers are now the smallest categories Hardware spending is growing in H

8 The Varying Needs of Four Types of Cloud Computer Participants Finance Maximise Value Directors also Enforce SLAs have to consider Manage Supplier data protection, Contracts environmental and Balance Cap Ex other laws v Op Ex Financial Director CIOs have a difficult task in managing a mixed environment Data Center End-users have lots of SaaS Manager/CIO Cloud Computing Software Developer experience as Infrastructure as Internet-wide Distribution consumers a Service Public/Private Scalable Deployment Hardware Free Development Software Management Web Apps Simplified SDK Developers use Virtualization Self Service the evolving Cluster Pay-per-Use ecosystem Grid Utility Computing These groups often Software as a Service compete for End-User resources and don t always talk to each other!

9 Cloud Computing Supplier Participants by Type and Example OS and Middleware Goole Java Python VMWare Websphere Redhat Citrix VMWare Microsoft Hardware Cisco Dell EMC HP IBM Rackable Sun Verari Applications Microsoft Salesforce Google Mail Quicken Cloud Computing Suppliers Outsourced Data Centre Metering/Billing Salesforce SAS Google Microsoft AmazonAskAsk NCD HP Telecoms BT T- Mobile Orange Vodafone NTT Fujitsu Software Lots of Infrastructure development Large business software suppliers offer SaaS versions Hosting companies offering data centre space and/or dedicated resources Telecoms suppliers will find Cloud easier than general IT services Plenty of scope for cross the park selling to different user types

10 The Developing Cloud Computing and Hosting Ecosystem Application Layer (SaaS) hulu facebook Windows Live Bing Google Apps Cloud development ecosystem is split into 3 camps Lamp, Azure and JAVA Middleware Layer (PaaS) php MySQL memcached Apache hadoop SQL Server 2008.Net IIS7 python JAVA php Offerings are split in three horizontal layers IaaS, PaaS and SaaS OS and/or Hypervisor (IaaS) Linux VMWare ESX Xen Lamp* Hyper-V Windows Azure Linux JAVA Can be used to design new or Cloudify existing corporate applications

11 Virtualising Client Computing for Cloud Computing Laptop Desktop Thin Client Smart Phone Client Devices Local VM Streamed External Hosted Internal Hosted Virtual Clients Cloud Computing and Client Virtualisation are highly connected Users want Smart Phone access to corporate applications not just PCs can be used as thin clients Users want fully functional PCs Citrix, Redhat, Microsoft and VMWare are leaders in client virtualisation

12 The Pitfalls of Cloud Computing Cloud Computing is in its infancy has not yet helped in the shift from Capital to Operational Expenditure It is being adopted from the bottom up consumers and small businesses use SaaS for social networking and office where no technical expertise is expected Modifying corporate computing usually requires significant consolidation activities first Data Protection, Environmental laws are often not addressed by US developments Location issues are vital for Managed Services and Outsourcing success You can get just as locked into pay-as-you-go as other services

13 The Politics Of Cloud Computing Some Conclusions The UK IT market is in recession and the failing Pound makes IT expensive Cloud Computing is the hottest IT subject in years Outsourcing, Managed Services and SaaS are small but are the fastest growing spending areas for medium companies Implementation services include systems suppliers helping convert internal IT into private Cloud Cloud Computing politics The needs of financial directors, CIOs, software developers and end-users all differ Suppliers will begin to sell cross the park to exploit differences of opinion inside organisations Cloud Computing can be seen as a natural extension of Managed Services and Outsourcing Client Virtualisation and Cloud Computing are linked Issues of security, location, responsibility and compliance need addressing External Internal As always it s better to partner with companies you know and trust Users (mainly) Cloud Computing Internal External Users (mainly) Cloud Cloud Martin Hingley Implementation PaaS Consolidation IaaS IT Candor Limited Modernisation SaaS Virtualisation aas Service Hosting IT Supplier ISV Provider (Telco) Web Site: Private Public

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