Cloud Computing: Transforming IT

Transcription

1 Evaluating the Technology that is transforming IT Drue Reeves Research Director Cloud Computing / Data Center Cloud Computing: Transforming IT December 3 rd, 2009 All Contents 2009 Burton Group. All rights reserved.

2 Cloud Computing: Transforming IT 2 Thesis Cloud computing is transformational It will change business models, cost models, speed to provision applications, and data centers Cloud computing has many issues Lack of clarity and overexposure slows adoption, and increases skepticism Trust and security are chief issues ROI justification isn t always straightforward Cloud computing is coming, make no mistake Now is the time to prepare, comprehension is key Part of the IT externalization movement; will reach equilibrium between internal and external IT functions Cloud helps IT organizations focus on what s important Efficient IT service delivery Reducing costs Reducing complexity Outsourcing non-essential IT services

3 What is Cloud Computing? 3 Start with a definition Clears up any ambiguity Everyone on the same page Key takeaways Clear definition and model How/where to leverage the cloud and pitfalls to avoid Cloud business value and formulate a cloud strategy

4 Agenda 4 Why Cloud Computing? Cloud Definition and Characteristics Cloud Tiered Architecture Cloud Benefits Cloud Drawbacks and Concerns Cloud Futures Recommendations

5 Why Cloud Computing? 5 Business needs are straining IT Business dependency on IT continues to grow Business and IT are becoming one As business dependency grows, so do the IT resources necessary to run the business Many organizations have built massive, overly complex, underutilized, rigid IT infrastructure Why we are seeing some IT initiatives Data center consolidation, application rationalization, virtualization These efforts aren t enough to stem the tide; revealing some harsh realities

6 Why Cloud Computing? 6 IT is too expensive, rigid, and complex Owning and operating IT is an expensive, and time consuming proposition Many data centers are out of power/ space Complex infrastructures decrease the ability to respond to business needs Install new applications, provision additional capacity, and secure their environment Limits business agility and growth Business units are forced to go outside their IT organizations to meet their needs IT organizations have more work than personnel can reasonably manage Many data centers house extraneous, infrastructure that has nothing to do with the organization s core business

7 Economics of IT 7 capitalize the core (specific to me) expense the context (commodity)

8 Cloud Computing: Transforming IT Enterprise Strategic and non-strategic IT Services IT IT is completely owned and operated by the Enterprise s IT organization

9 Cloud Computing: Transforming IT Strategic IT Services Non-Strategic IT Services Enterprise IT SaaS PaaS SIaaS HIaaS Post-Modern or Hybrid IT Cloud Computing

10 Agenda 10 Why Cloud Computing Cloud Definition and Characteristics Cloud Tiered Architecture Cloud Benefits Cloud Drawbacks and Concerns Cloud Futures Recommendations

11 What is Cloud Computing? 11 The set of disciplines, technologies, and business models used to deliver IT capabilities (software, platforms, hardware) as an on-demand, scalable, elastic service How can I make this... Look more like this?

12 Cloud Computing: Transforming IT 12 Other common cloud computing definitions include: Public cloud: An IT capability as a service that providers offer to consumers via the public Internet. Private cloud: An IT capability as a service that providers offer to a select group of customers. Internal cloud: An IT capability as a service that an IT organization to its own business (subset of private cloud). External cloud: An IT capability as a service offered to a business that is not hosted by its own IT organization. Hybrid cloud: IT capabilities that are spread between internal and external clouds

13 Elastic and Scalable 13 Consumers can rapidly provision and de-provision IT services Cloud service appears infinitely scalable to the consumer

14 On-Demand, Self Service 14 Consumer have the ability to consume cloud services as the need arises Self-service increases IT agility to match the pace of business

15 Consumption-based pricing model 15 Vendors charge customers based on amount of the service consumed (finely granular basis. Customers pay for only the IT services they use, thereby increasing time to ROI

16 Shared Infrastructure 16 Vendors leverage the infrastructure to service multiple consumers Multi-tenancy is vital to driving down infrastructure costs

17 Virtualized and Dynamic 17 Virtualization creates a dynamic environment for quick resource provisioning and better resource management From the consumer point-of-view, the details of the infrastructure are abstracted away

19 Cloud Computing: Transforming IT 19 Cloud Tiered Architecture Example Software as a Service Platform as a Service Software Infrastructure as a Service Hardware Infrastructure as a Service Google Apps, on-line , Salesforce.com, backup as a Service Microsoft Azure, Force.com, Google App Engine, Tibco Silver, IBM smash (AMI) Data services, Identity mgmt, security services providers, CDN AWS/EC2, System hosting providers (BT, AT&T, Sprint) + Virtualization vendors

20 Cloud Computing: Transforming IT IT organization point-of-view Service Interfaces Service Consumer Software as a Service (SaaS) IT Organization Built Solution Platform as a Service (PaaS) Software Infrastructure as a Service (SIaaS) IT Organization Built Solution Hardware Infrastructure as a Service (HIaaS) IT Organization Built Solution IT Organization Solution Architect

22 Cloud Computing: Transforming IT 22 Cloud Benefits: Simplifies and Optimizes IT Reduce complexity by abstracting infrastructure Enables IT to offload non-essential IT processes; refocuses staff on driving core business value Allows IT organizations to defer capital costs Cloud services enable act as a release value for data centers that are power and space constrained, deferring new data center construction Converts capital expenses into operational expenses On demand, self-service models increase IT agility Using the cloud, IT organizations can quickly provision IT resources whenever business demands, especially for short-term IT resource needs Cloud computing vendors employ highly skilled IT professionals Cloud computing business models require providers to hire, train, and retain highly skilled employees to ensure service quality

23 Cloud Computing: Transforming IT 23 Cloud Benefits Enables Faster ROI through better resource management IT organizations pay for only the IT services they use, enabling better resource tracking, predictable costs, budget forecasting and faster ROI As cloud computing trust increases, IT organizations will use cloud services as a disaster recovery option Rather than using a co-location facility or a new data center, IT organizations will backup data to the cloud Public and externally facing private clouds can more easily support a mobile workforce Ubiquitous access to external IT services better support mobile workforce than internally hosted IT services accessed via VPN

25 Inflexible/Non-Existent SLAs 25 Inflexible, boilerplate service-level agreements are norm

26 Inability to Manage Risks 26 Lack of vendor transparency and inability to audit service security measures obscures risk assessment Data security and compliance vary by vendor; IT organizations must dig into vendor s storage replication, data encryption, account access

27 Unclear Long-Term Return On Investment 27 Return On Investment Sorry there friend, your ROI is under the other shell Poor internal cost insight creates an inability to determine cloud service ROI

28 Market Immaturity 28 Vendor flux and poor service implementations creates consumer uncertainty

29 Inability to Monitor/Manage 29 Inability to manage and monitor service for events and issues Lack of management APIs to monitor/verify service levels

30 Vendor Lock-in 30 Vendor Lock-In At the point you realize you re locked in, it s far too late to escape Lack of cloud interoperability, proprietary data models, and poor application portability make cloud migration difficult

31 Cloud Characteristics 31 Let s Look at those cloud characteristics again

32 Elastic and scalable 32 What infrastructure is my applications running on? How much of the service can I consume at one time?

33 On-demand, Self-Service 33 Will the cloud enable/increase shadow IT?

34 Consumption-based Pricing 34 What happens if you don t pay your bill? Do you lose your data? How do I control and monitor consumption? (Wireless phone bill)

35 Shared Infrastructure 35 Who are you sharing that server with?

36 Virtualized and Dynamic 36 Can the vendor move my data or application? Will that cause a data compliance issue? (Federal, state, etc)

38 Cloud Futures 38 Technology and Vendor Trends Competition will increase, prices will decrease Cloud enablers (E.g. VMware) bringing a deluge of vendors to IaaS Product stratification (vcloud Express, ATMOS storage) Rise of enterprise grade clouds Announcements soon on customer-driven enterprise cloud requirements Hybrid and federated clouds To compete, cloud vendors will federate best-in-class cloud services Increase in private clouds Both from public clouds (e.g. VPCs) and completely private entities

39 Cloud Futures 39 Technology and Vendor Trends Standardization OVF, vcloud API, Delta Cloud Cloud brokers Aggregate and vet providers, limit liability, predict cloud capacity Negotiable and programmatically readable SLAs Some vendors already negotiate Integration with enterprise management vendors Blur the lines between internal and external clouds Will some countries become data safe havens? Will the Patriot Act drive data away from the US? What effect does this have on the US economy?

41 Cloud Computing Recommendations 41 Devise a cloud strategy now: multi-step approach Conduct a business impact analysis on all applications; Determine processes, applications and infrastructure that can be moved to the cloud and those that cannot Evaluate your organization s ability to consume the cloud Cloud will likely change business processes; IT cannot change those processes alone. Business process owners must involve partners, suppliers Can the organization manage multiple cloud vendor relationships? Make sure to involve legal, finance, procurement, etc. Calculate cloud costs vs. do-it-yourself (DIY) costs Compare cloud costs to hosting the same service internally. Requires internal cost model Monitor cloud costs closely and watch for hidden charges Match cloud vendor offerings with application needs At all cloud levels (SaaS/PaaS/IaaS)

42 Cloud Computing Recommendations 42 Devise a cloud strategy now: multi-step approach Evaluate vendors capabilities, services levels, deficiencies and risks: Don t abdicate responsibility to the cloud -- look closely at SLAs, records of downtime, ask to talk with customers Risk assessment to data and applications -- Limit your liability and safeguard your data Although cloud computing represents a way to offload IT capabilities, service delivery and liability remains with the IT organization Data is a primary business asset. Before putting data into the cloud, clearly identify any potential risks to data Cloud brokers, insurance, use multiple vendors

43 Cloud Computing: Transforming IT 43 Cloud Computing Recommendations Build an internal cloud Build a target cloud architecture (internal/external/hybrid) that aligns with external cloud vendors; symmetry is key Comprehend vendor lock-in consequences before adoption Have an exit strategy Finally, scale incrementally; offload non-value capacity; focus on core Use the cloud to offload applications and infrastructure that are not core. The cloud can act as a pressure release valve for IT organizations that have insufficient IT personnel or are out of power and space

44 Cloud Computing: Transforming IT 44 Conclusions Cloud computing is transformational Change business models, cost models, speed to provision, and data centers Cloud helps IT organizations focus on what s important Efficient IT service delivery, reduce costs and complexity, outsource non-essential IT service Cloud computing has many issues Lack of clarity and hype slows adoption, and increases skepticism Trust, security, and unclear ROI are chief issues Cloud computing is coming, make no mistake Part of the IT externalization movement Now is the time to prepare, comprehension is key to unlocking business value

45 Dave s Top 10 Cloud Security Risks* * Derived from ENISA s Cloud Benefit s, Risks, and Recommendations for Information Security

46 Dave s Top 10 Cloud Security Risks* 1. Loss of governance ceding control to the provider 2. Lock-in 3. Isolation failure virtualization, networks, data 4. Compliance risks watch how your data is replicated 5. Management interface compromise No IdM, Blank Checkbook, Largely accessable * Derived from ENISA s Cloud Benefit s, Risks, and Recommendations for Information Security

47 Dave s Top 10 DCS Ref Arch Fixes 6. Data Protection in flight, at rest 7. Insecure of incomplete data deletion 8. Malicious insider 9. Cloud vendor service failure or termination 10. Service limitations resource exhaustion on part of the service provider * Derived from ENISA s Cloud Benefit s, Risks, and Recommendations for Information Security

48 Screen shots 48

49 References and Recommended Reading 49 Burton Group Cloud Computing: Transforming IT Cloud Computing: An Executive Primer Moving Out: The Externalization of IT Software as a Service Enterprise Get Ready to Go Beyond the Grind SaaS Implementation Survey: Where, When, and How to Use SaaS External Sources Dot.Cloud Peter Finigar Toward a Unified Ontology of Cloud Computing Youseff, et al. UCSB

50 Cloud Computing: Transforming IT 50 Burton Group Offer Free cloud document Cloud Computing: Transforming IT Give a business card to Scott LeSueur

51 Cloud Computing: Transforming IT 51 Questions?

52