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1 5541 Central Ave, Suite 172, Boulder, Colorado Phone: (602) ;
2 Powering a Clean Tomorrow Green Energy Data Centers and Storage in the Coming Age of Vast Cloud Computing Behavior is a mirror in which everyone shows their own image
3 Dr. Suchindran Chat Chatterjee s Short Bio Currently: President and CEO, Kender Energy, Inc. Advisor, Cool Energy, Inc., Boulder, CO Nominated member of the Delta Airlines Customer Advisory Board Founder and Chairman of Synergy and 21 st Century Solutions Vice-President and CIO at The Mutual of Omaha Insurance Companies and The Bank of Montreal/Harris Bank Director of I/S at The Nationwide Insurance Group of Companies Chief of Software & Oper Systems at Digital Equipment Corporation Chief Aerospace Testing Engineer, Sverdrup Aerospace, Arnold Air Force Base, Tennessee [Tested almost all ratings of Military and Civilian Aircraft, & the Space Shuttle] Current Adjunct Professor: Engineering, Computer Science, English, and Management & Member of Dean s & Technology Councils, AZ State Univ B.S. - Aeronautical Engineering & Technical Writing M.A. - Technical Communication & Linguistics M.S. - English and Higher Education Administration Ph.D. - Computer Sciences [Vanderbilt University] M.B.A. - Information Systems Management & Finance [Digital Executive Management Prog/HBS] MCSE, CPCU, CLU, PE (Lic Prof Engr) Renowned in Computational Fluid Dynamics and Operating Systems Honored as Technology Executive & CIO of the Year 2003 by Computerworld Magazine Nominated for I/T Security Executive for North America for 2008 by Computer Security Institute
4 THE CONSTANTS Moore s Law is totally out of control (a good thing) 3 years in tech time is now relates to a decade in real time!! The ipad was first released 19 months ago!! PRIVATE AND PUBLIC CLOUD COMPUTING ARE HERE TO STAY Storage cost and footprint will exponentially get cheaper and smaller The population of the world will reach ~10 Billion by 2050 The world will get more and more digitally interconnected The number of devices that need instant access to data will explode; the workforce and offices will become more virtual Cost of legacy power generation & T&D will get much more expensive and indefensible to maintain status quo We will run out of fossil fuels (coal, petroleum, natural gas, etc.) The ozone layer is in trouble and we must reduce our carbon footprint within the decade Singapore, South Korea, Taiwan, et al are already very power hungry and fully developed
5 THE VARIABLES How soon will the developing world become more the fully developed world (India, China, Brazil, et al)? What legislative and political climates will rule around the world? What are the pain points in power costs to truly wake up the human race? How do we convince corporate boards/execs to be more strategic in their data and energy planning? What are the security, application, and architecture challenges in this cloud world? How do we quantify data center and network responsiveness, agility, and readiness to support all cloud computing with true strategic planning mindsets? What is each CIO s cloud readiness & how to measure it? How can power be globally distributed for JIT usage?
6 THE BIGGEST TRANSITION IN THE HISTORY OF MANKIND
7 Breaking the Dam(n!) Colo Managed Colocation 1 st step to outsourcing Managed Hosting dedicated servers managed by 3 rd party take some pain away Cloud Hosting Lower cost, easier, lower risk, more reliable
8 trending away from the Pain Source: Google Insight for Search
9 Source: Forbes.com, Servers: Why Thrifty Isn t Nifty Traditional Hosting Costs Continue to Grow High CapEx (30% H/W obsolescence) Low facility asset utilization (55%) High Depreciation (42-50%) Power/Cooling costs > Server Costs Not Green [Source: Forbes.com, Kenneth Brill, Servers: Why Thrifty Isn t Nifty ]
10 MULTIPLE DEFINITIONS Understanding how others view Cloud Computing
11 Forrester Research A pool of abstracted, highly scalable, and managed compute infrastructure capable of hosting end-customer applications and billed by consumption 1 Is Cloud Computing Ready for The Enterprise? Forrester Research, Inc.
12 Forrester Research (cont D) Different than SaaS Prescripted & Abstracted Infrastructure Fully Virtualized Dynamic Infrastructure Software Pay by Consumption Free of Long-Term Contracts Application and OS Independent Free of Software or Hardware Installation Cloud computing has all the earmarks of being a potential disruptive innovation that all infrastructure and operations professionals should heed.
13 Other Definitions Cloud computing is an emerging approach to shared infrastructure in which large pools of systems are linked together to provide IT services. IBM press release on Blue Cloud a hosted infrastructure model that delivers abstracted IT resources over the Internet Thomas Weisel Partners LLC from Into the Clouds: Leveraging Data Centers and the Road to Cloud Computing Cloud computing describes a systems architecture. Period. This particular architecture assumes nothing about the physical location, internal composition or ownership of its component parts. James Urquhart blog post
14 Multiple Graphic DescriPtions of the cloud
15 REDEFINING THE DEFINITION Our view of Cloud Computing
16 Defining the Segments SaaS Software as a Service Storage as a Service PaaS Platform as a Service IaaS Infrastructure as a Service
17 Colo vs. Managed vs. Cloud Hosting Colocation Managed Cloud Time Weeks to Months Days to Weeks Minutes Scalability Slowest, Rigid & Costly Slower, somewhat flexible, Costly Cost High CapEx Costly, sometimes month/year contracts, no CapEx Instant, Flexible, Payper-usage No contracts, usage based, no upfront costs Green Low Low High - virtualized Pricing model Buy Servers & Colo costs whether used or not Rent Servers & Hosting costs whether used or not Rent based on usage only
18 Is the Hosting Model Ripe for Change Technology has evolved People demand more control Instant gratification In-house too costly from CapEx and Human Capital Colocation for those who want to be physically there Managed is not dynamic enough Cloud Computing - Enabling Technology to move from Traditional Hosting to Cloud Hosting
19 the cloud s snowball effect Maturation of Virtualization Technology Virtualization enables Compute Clouds Compute Clouds create demand for Storage Clouds Storage + Compute Clouds create Cloud Infrastructure Cloud Infrastructure enables Cloud Platforms & Applications Multiple Cloud types lead to Cloud Aggregators Niche requirements enable Cloud Extenders
20 the cloud PyramiD Build upon a foundation Layers equate structure Building blocks: Infrastructure, Platforms, Applications Breadth vs. Niche
21 the cloud PyramiD inversed 1000 s of Cloud Applications currently Handful of Cloud Platforms Elite group of Cloud Infrastructure providers # of Marketplace providers
22 cloud computing is virtualized compute power and storage delivered via platform-agnostic infrastructures of abstracted hardware and software accessed over the Internet. These shared, on-demand IT resources, are created and disposed of efficiently, are dynamically scalable through a variety of programmatic interfaces and are billed variably based on measurable usage.
23 cloud applications SaaS resides here Most common Cloud / Many providers of different services Examples: SalesForce, Gmail, Yahoo! Mail, Quicken Online Advantages: Free, Easy, Consumer Adoption Disadvantages: Limited functionality, no control or access to underlying technology
24 cloud Platforms Containers Closed environments Examples: Google App Engine, Heroku, Mosso, Engine Yard, Joyent or Force.com (SalesForce Dev Platform) Advantages: Good for developers, more control than Application Clouds, tightly configured Disadvantages: Restricted to what is available, other dependencies
25 cloud infrastructure Provide Compute and Storage clouds Virtualization layers (hardware/software) Examples: Amazon EC2, GoGrid, Amazon S3, Nirvanix, Linode Advantages: Full control of environments and infrastructure Disadvantages: premium price point, limited competition
26 cloud extenders (Wild Card) Provides extension to Cloud Infrastructure and Platforms with basic functionality Examples: Amazon SimpleDB, Amazon SQS, Google BigTable Advantages: Extends functionality of Compute & Storage Clouds to integrate with legacy system or other clouds Disadvantages: Sometimes requires use of specific Platforms or Infrastructure
27 cloud aggregators (Wild Card) Sits on top of various Cloud Infrastructures for management Examples: RightScale, Appistry Advantages: Provides more options for Cloud environments Disadvantages: Dependent on Cloud Providers
28 the new cloud PyramiD
29 FROM Hosting to the Clouds Static Dynamic = Quick & Easy Scalability Cost Prohibitive Cost Effective = Cost Efficiencies Predictable Unpredictable = Innovations Stagnant Growth = Evolution Traditional Hosting Cloud Hosting = FUTURE!
30 SECURITY & CONTROL IN THE CLOUD Firewalls and DMZs Data De-duplication on steroids Can port controls ever transcend the psychology of human behavior? Just because you are paranoid does not mean no one is about to attack your TCOM weak points Is actual experience ever going to live up to the amazing demo?
31 OPER SYST & APPLICATION DELIVERY Are we going back to the glass houses of my work days in the 1970s? We solved the challenge of pull and push installs, now we abandon it all? EDS, MIS, ISS, IS, IT, huh? Doesn t cloud computing actually make it easier on all of us, as in the 70s? Bottom line, our disc packs have come so far over five decades!!!!
32 LIVING ON THE EDGE OF THE INTERNET If you don t live life on the edge you are taking up too much room We have blown past Moore s Law over four decades because we don t recognize any boxes The cloud is not the end, it is just the beginning of again going where no one has gone before
33 CLOUD APPLIANCE OR SOFTWARE? It is appliance and software The challenge then is: How do we find the power to light up the coming 10 BILLION people while fulfilling Moore s Law? How do we stop spewing carbons since we all live on this same mud ball we call home? Do we want our progeny to have amazing computing power in their hands while wearing oxygen masks?
34 GENERATION -Waste Heat Challenge #1 Industrial Processes Wasted heat = missed business efficiency opportunity Many processes preclude re-use of waste heat Waste heat <300 C poor for steam power generation Typical expected 1-5 year payback 24/7/365 processes are ideal Forest products, kilns, roasters, metals, glass, CHP
35 GENERATION - Waste Heat Challenge #2 Military Power Generation 125,000 gensets fielded; 2.1GW capacity; 10,000 new/yr 10kW to 100kW most common (16.8 kw average) Gensets use 360 Mgal/year JP-8 during wartime $15/gallon min fuel cost in theater 80% of Afghanistan casualties occur in logistical ops $1.3B retrofit TAM, $170M annual new TAM
36 Engine Peak Power 20kW System Cost/Watt $5.00 Installed Cost $100,000 Annual O&M $/kwh $0.01 Annual Discount Rate 8.00% Years of Operation 10 Waste Heat Recovery Customers: Coffee Roasters (Diedrich) CSP (Sopogy, Chromasun) Military Gensets (DRS, Cummins) Brick Makers Cement Kilns Industrial Kilns (CoorsTek) Simple Payback Time (80% capacity): Value LCOE Analysis ($/kwh) Levelized Cost of Electricity (LCOE) Annual Energy Produced (kwh) $0.10/kWh 7.2 years $0.15/kWh 4.8 years $0.25/kWh 2.9 years $0.50/kWh 1.5 years Annual O&M costs $100,000 Capacity Factor 20% $ $ % $ $ % $ $ % $ $ % $1, $ % $1, $ % $1, $ % $1, $ % $1, $ Competitive with Grid Electricity
37 Stirling Engines ORC s, TE Steam, gas turbines, ICE s Waste Heat Quality & Availability Vast amount of low temp industrial waste heat = huge opportunity Lower thermal efficiencies challenge economics Free fuel supports economics Cool Energy Proprietary and Confidential T BTU Source: EPA National Emissions Inventory Database
38 Data from coops 26,000 WHR opportunities 7% of electricity from coops 370,000 total US sites 50% of sites suitable for SolarHeart (<100kW) $50B TAM at $4500/kW $15B SAM 11GW capacity Waste Heat Recovery Market
39 Are power sources infinite and mysterious? Why do we treat the issue of our power consumption like it is not OUR problem as a human race? Legacy power generation and delivery is known and finite Thinking can be operational, tactical, or strategic two of these approaches will kill air breathing races Time to recognize, bring together, and solve the socio-technical plate-tectonic tsunami already overtaking us?
40 QUESTIONS AND COMMENTS?
41 MY CONTACT INFORMATION Dr. Suchindran Chat Chatterjee
42 Powering a Clean Tomorrow Green Energy Data Centers and Storage in the Coming Age of Vast Cloud Computing Behavior is a mirror in which everyone shows their own image
43 5541 Central Ave, Suite 172, Boulder, Colorado Phone: (602) ;
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