Outlining Cloud Computing for the Channel

Transcription

1 Outlining Cloud Computing for the Channel A clarification, extension, and expansion of cloud computing definitions for practical application in the IT reseller channel community A CompTIA Cloud/SaaS Community Resource

2 Contents EXECUTIVE SUMMARY 3 SITUATION ASSESSMENT 3 FOUNDATIONAL UNDERSTANDING OF CLOUD COMPUTING 5 WHAT CLOUD COMPUTING ISN T 6 WHO S WHO IN THE CLOUD CHANNEL 7 VENDORS 7 SERVICE PROVIDERS 7 DISTRIBUTORS AND CLOUD AGGREGATORS 8 SYSTEMS INTEGRATORS 8 VALUE ADDED RESELLERS AND MANAGED SERVICE PROVIDERS 7 CHANNELIZING THE CLOUD 8 DEPLOYMENT MODELS 8 SERVICE MODELS 9 ESSENTIAL CLOUD CHARACTERISTICS 10 ADDITIONAL CHANNEL CONSIDERATIONS 11 CONCLUSION 12 ABOUT US 12 CompTIA CLOUD/SAAS COMMUNITY 14 CompTIA 15 CONTRIBUTING AUTHORS

3 Executive Summary Cloud computing is a transformative delivery model that is changing the way technology vendors, distributors, resellers, and consumers think about, approach, and implement IT systems. What exactly the cloud is remains a matter of debate, as there are more than two dozen definitions for cloud computing. Further, how the cloud is applied to the conventional IT channel is relatively uncharted. In this paper, the CompTIA Cloud/SaaS Community will provide basic definitions and core characteristics for cloud computing, and put those definitions into a channel context. The paper is a foundational document designed to give the channel community a baseline reference for describing cloud computing and how it fits with the various constituencies that comprise the channel. Situation Assessment Escaping the cloud is almost impossible. Cloud computing or the delivery of application, platform, and infrastructure via the Internet 1 as a service is transforming the way technology vendors produce and distribute their products, as well as the way enterprises and SMB organizations consume technology. The cloud revolution is more than just webifying applications. It is a fundamental shift to a new IT architecture grounded in broad availability, multi-tenancy, shared resources, and dynamic capacity. It s about changing the entire cost structure of technology from a capital expense to a recurring operational expense. And it s making technology more accessible, productive, and affordable. And that is driving its rapid adoption. Cloud computing has morphed from a relatively limited set of Web-based services to a full gamut of business products and models. According to analyst firm Gartner, the cloud computing marketplace will grow from $46.4 billion in 2008 to more than $150 billion by Gartner predicts that 20 percent of all businesses will own no IT infrastructure by as they will have been completely transformed into near-total cloud consumers. The hype around cloud computing continues to escalate, making it increasingly difficult to separate the marketing buzz from the true implementations of technology and services via the Internet. Nearly any application or service remotely attached to the Internet is now taking on the cloud as both a descriptor and value proposition. No wonder that 59 percent of end users and 64 percent of the channel say that cloud computing needs clearer definitions, according to a new CompTIA study. 3 1 In private clouds, applications, platforms, and infrastructures can be accessible over a private network via Web browsers 2 Gartner Top Predictions for 2010, press release, January 2010 ( 3 3

4 Defining cloud computing is more than an academic exercise; it s a matter of drafting parameters of understanding among marketplace constituents that produce, support, and consume cloud-based services. Creating this shared business and technical vocabulary helps promote effective commerce among all entities in the cloud computing supply chain. Through clear and concise definitions, producers and consumers of services can develop business strategies, implementation plans, business models, and performance metrics for maximizing the potential of a revolutionary delivery system. Numerous, often competing definitions for cloud computing exist. Most do a fine job of framing what many consider the core tenants of cloud computing, yet only 24 percent of end users and 29 percent of the channel believe the existing definitions are sufficient. Illustration 1: A Cloudy Definition of Cloud Computing Respondents to a 2010 CompTIA research study said a uniform definition of cloud computing and its ecosystem would clear up market confusion and better explain and simplify the value proposition for buying and selling cloud services. End Users 59% 24% 17% Needs Clearer Definition Channel 63% 29% 8% 9% of end-users use a formal third-party definition of cloud computing; 11% use a definition developed internally. The remaining 80% use no formal definition or are unsure of what their company uses. In comparison, 18% of channel partners use a third-party definition, while 20% use an internally developed definition. The remaining 62% don t use a formal definition. And even these constituents say that the existing definitions are not consistent, according to the CompTIA study. The leading and most generally accepted definition is the one developed by the National Institute of Standards and Technology (NIST), which provides for the essential elements and characteristics of the medium. However, many vendors and solution providers believe there is an opportunity to extend the NIST definition by incorporating the unique needs of the IT reseller and services channel into the model. Illustration 2: The Layers Within A Cloud In this paper, the CompTIA Cloud/SaaS Community will affirm the NIST cloud computing definition and extend it to Cloud include Stack critical considerations Target Customer for the channel community. Through these contextualized definitions, we aim to provide the entire channel with a common SaaS End Users foundation for framing cloud computing discussions and messaging, business planning and PaaS Developers modeling, and sales and marketing execution. IaaS Operators/IT Reference: CompTIA Research Study, Cloud Computing: Opportunities and Challenges, August 2010

5 Foundational Understanding of Cloud Computing Near universal agreement exists that cloud computing is the Web-based delivery of a service that provides extensible, elastic, and multi-tenant access to computing resources. The definition gets fuzzy from there. What does it mean to be elastic or extensible? Some groups include ease of use or ease of deployment in their definitions, but these are subjective measures. And, of course, simple definitions tend to breakdown when actual services are tied to them. A Web-based customer relationship management (CRM) solution such as Salesforce.com is generally considered a staple in the cloud computing portfolio, but is a search engine such as Google or Microsoft s Bing? Web-based services such as Hotmail and Yahoo are part of cloud computing, but are s delivered to a remote client over an SSL or HTTPS connection from an on-premise Microsoft Exchange server also a part of the cloud computing universe? A good starting point for defining cloud computing is the definition crafted by NIST. The government research and standard setting agency admits that its definition is fluid and subject to change. However, the NIST definition 4, now in its fifteenth iteration, provides clear tenets for what constitutes the basics of cloud computing as a technology and delivery mechanism. The NIST definition is: Cloud Computing is a model for enabling convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction. This cloud model promotes availability and is composed of five essential characteristics (on-demand self-service, broad network access, resource pooling, rapid elasticity, and measured service), three service models (software as a service, platform as a service, and infrastructure as a service), and four deployment models (private cloud, community cloud, public cloud, and hybrid cloud). As an addendum, NIST makes the following note about the nature of cloud computing: Cloud software takes full advantage of the cloud paradigm by being service oriented with a focus on statelessness, low coupling, modularity, and semantic interoperability. In other words, cloud computing isn t necessarily proprietary and should have near universal interoperability and communications channels to ensure access to and usability of data. The CompTIA Cloud/SaaS Community concurs with NIST s definition, adding that cloud computing applications, platforms, and infrastructures should guarantee interoperability of solutions, openness in standards, accessibility to resources and data, and portability to different service providers. In our opinion, this openness is necessary for ensuring the sustained adoption and growth of cloud computing by assuring optimal business value to customers

6 White Paper: Outlining Cloud 9% Computing of end-users for use the a formal Channel third-party definition of cloud computing; 11% use a definition developed internally. The remaining 80% use no formal definition or are unsure of what their company uses. In comparison, 18% of channel partners use a third-party definition, while 20% use an internally developed definition. The remaining 62% don t use a formal definition. Bearing the NIST definition in mind, it is helpful to think of cloud computing broadly in two layers: (1) applications and services that encompass packaged cloud apps (SaaS Software as a Service) and custom cloud apps (developed on PaaS Platform as a Service), and, (2) the shared network, server, storage, and security resources that constitute IaaS (Infrastructure as a Service). Illustration 2: The Layers Within A Cloud Cloud Stack SaaS PaaS IaaS Target Customer End Users Developers Operators/IT Reference: What Cloud Computing Isn t Given the hype, anticipated exponential growth, and ambiguous definitions, many technology companies are claiming to be cloud-computing providers. Nevertheless, the fact that some technologies and services share many of the characteristics found in the NIST definition does not make them a part of the cloud computing universe. Before getting into the channel specifics, CompTIA Cloud/SaaS Community believes it is necessary to define exclusions. The following technologies and computing delivery models are explicitly not considered cloud computing. Fat clients/devices Proprietary browser access Virtualization independent of cloud implementations Grid computing Mainframes Online backup Client/server computing infrastructures Proprietary appliances Dedicated hosting services Systems that leverage Internet connectivity, but are not Web based These systems and models fall outside the core definition because they only share certain characteristics of cloud computing or are components and/or mechanisms for accessing cloud computing resources. For instance, a personal computer with network access is an absolute necessity for accessing cloud resources, but a PC is not cloud computing. Similarly, private clouds can be closed, private networks, but that does not make a mainframe cloud computing. 6 6

7 There is also debate as to whether managed services the remote monitoring and management of on-premise hardware and software is part of cloud computing. Under the strictest definition, managed services are not, even though they share virtually the same business structure and revenue model. The difference is the on-premise perquisites associated with managed services, which are really an evolution of conventional break/fix services. By the NIST definition, cloud computing is not bound by the scale and performance limitations of conventional infrastructure and break/fix services. Nevertheless, it is possible to deliver cloud computing as a service managed by a third-party provider hence the debate. Who s Who in the Cloud Channel The channel is a vast amalgamation of diverse technology businesses that play different and overlapping roles in the delivery of products and services to end-user organizations. The types of companies that exist in the conventional channel won t change all that much in the cloud era. However, their roles will vary depending on their capabilities. In this section, we ll identify the various companies in the cloud channel and the roles they perform. Vendors Includes all conventional hardware manufacturers, software publishers, independent software vendors (ISVs), and pure-play cloud computing companies that act as a source the underlying provider of applications, platforms, and infrastructure. Some vendors may only provide the technology (products) for building clouds. Service Providers Typically includes telecommunications carriers, global systems integrators, business process outsourcing firms, and Internet service providers that provide the bridging infrastructures between cloud computing service providers, vendors, and end customers. Increasingly, service providers are the companies building private and hybrid clouds for large enterprises. Distributors and Cloud Aggregators Increasingly, distributors act as cloud sources, consolidating resources and applications for resale through the channel. Aggregators are essentially distributors of cloud resources without the legacy hardware and software distribution business. These entities will often integrate resources to build holistic cloud services sold through the channel. Systems Integrators The reseller integrates complex technologies into holistic systems. The traditional role of systems integrators isn t changing much in the cloud, except that they, like service providers, are building private and hybrid clouds. Many systems integrators are also building systems for delivering cloud computing independent of their OEM vendor partners, and are implementing cloud application/saas solutions for clients. Value Added Resellers and Managed Service Providers VARs and MSPs are reselling cloud services and adding their own professional and valueadded services to the sale. This model differs little from the conventional hardware and 7 7

8 software resale model, except that highly complex and extensive value-added services are sometimes harder to justify and include in the cloud sale. VARs needn t just resell services; they can act as brokers and referral agents to cloud computing providers, collecting commissions for their efforts. And it s the VARs that are typically providing the migration and customization services for end users adopting cloud services. This group also includes hybrid service providers that combine cloud-based applications and services with legacy, on-premise ones, and born-in-the-cloud service providers (resellers that started solely on cloud services and are unencumbered by legacy hardware and software products). It s important to recognize that cloud computing makes it possible for the aforementioned entities to deliver end-to-end implementations. That means a vendor often can deliver cloud-based services direct to consumers without involving a channel partner. Likewise, a traditional VAR can build a cloud service independent of vendor partners and deliver it to customers. The key elements for channel delivery are: plan/design: Crafting scope-of-adoption and deployment plans delivery: Migration of a consumer s infrastructure and data from legacy, on-premise systems to cloud-based sets of applications (SaaS, PaaS) and resources (IaaS) implementation: Enabling the use of cloud computing resources management: Ongoing administration of cloud applications and resources support: Training, customization, and adjustments of cloud computing operations The degree to which each channel entity delivers services is dependent on their technology specialization, target customers, and ability to service customers. For instance, a large vendor may want to take cloud services direct to customers, but may not have the resources to scale end-to-end delivery. A vendor may be capable of performing all the functions in this delivery paradigm, but cannot reach all market segments with a limited sales force. Conversely, small VARs may have the ability to independently deliver cloud computing infrastructure or applications, but cannot scale to meet the needs of mid-market and enterprise customers. In the end, scale is the limiting factor of cloud delivery in the channel. Channelizing the Cloud CompTIA s Cloud/SaaS Community believes the NIST definition of cloud computing is a good framing for general interpretation, particularly for enterprise consumers of Web-based services. What it doesn t do is take the realities of the conventional channel marketplace into consideration. In this section, we will put the NIST definition into a channel context, making it applicable to vendors, solution providers, VARs, systems integrators, distributors, and other channel constituents. Deployment Models Private cloud Some organizations may choose to build and operate their own private cloud 8 8

9 infrastructures. NIST says private clouds may be managed and/or hosted by third parties. The channel plays a critical role in the development of private clouds by providing consulting, design, deployment, implementation, and ongoing support services to private cloud operators. Community cloud NIST says this cloud type is one shared by several organizations and supports a specific community that has shared concerns. Few examples of this type have emerged to date, but a shared cloud among a small set of businesses established for secure exchange of information or transactions would be considered a community cloud. It s more likely that a community cloud would be hosted and managed by an independent third party given that numerous constituents would use it. Here, the channel has the opportunity to build, manage, resell, and support community clouds. Public cloud Owned by private entities for use among general industry groups, a public cloud is a shared infrastructure (network, compute, storage) accessible over the public Internet for cloud-based and remotely delivered services. The public cloud is a critical element in the cloud computing chain that the channel leverages to support its customers. Hybrid cloud Known by many different names, hybrid clouds are the combination of two or more of the other deployment models, such as private and public clouds. Hybrid clouds are the most common form of cloud computing implementation since they may leverage public resources, private services, and in many cases, legacy, on-premise infrastructure. Integrating and enabling hybrid clouds provides a wealth of opportunity for the channel in consultation, integration, and support services. Service Models Software as a Service (SaaS) Applications running on a cloud infrastructure via a thin client or browser. SaaS includes such services as managed (Microsoft Exchange), CRM (Salseforce.com), and office productivity applications (Google Apps). Vendors providing such services are reselling their offerings through solution providers who can add deployment, migration, training, and support services on top of the core offering. Platform as a Service (PaaS) A platform or environment upon which users can develop and deploy services for consumption. PaaS providers include Microsoft Azure, Salesforce.com s Force.com, and Google s App Engine. The channel can either use PaaS to develop its own unique offerings or resell capacity and support to organizations that require PaaS services. For the channel, PaaS is about exercising expertise to both leverage platforms and support cloud-based platforms. Infrastructure as a Service (IaaS) Different from conventional hosting services, IaaS comprises the sharing of infrastructure 9 9

10 resources for running software in the cloud that would ordinarily be deployed and operated on-premise. IaaS provides consumers with the processing, storage, networks, and other fundamental computing resources required for running applications. The channel is both a provider and broker of IaaS by building and delivering cloud-based infrastructures, reselling infrastructure services, and supporting organizations in their use and operations of the services. Essential Cloud Characteristics The NIST definition covers the essential characteristics that comprise cloud computing. However, some are potentially disruptive to the channel. In this section, we ll deviate from pointing out the channel role and opportunities, and instead show how the cloud can disintermediate segments of the traditional hardware and software channel and disrupt conventional vendor business models. It s imperative that the channel recognizes the opportunity the cloud creates to prevent disintermediation and to seize relevant new opportunities. On-demand self-service NIST says a consumer can unilaterally provision computing capabilities as needed without requiring human interaction with the service s provider. From a channel perspective, automatic self-service is problematic since it eliminates the professional support and maintenance services that solution providers have traditionally delivered. While the cloud simplifies the delivery of resources and applications, it doesn t completely drive out complexity. The channel will find greater degrees of value and opportunity in more complex cloud offerings where users have the option but not the expertise to exercise self-service. Additionally, many traditional complex integration/ interoperability, change management, and business process consulting opportunities will remain open to the channel. Broad network access Cloud computing requires ubiquitous and persistent network connectivity accessible by client devices. The one truism of the cloud is that it will never fully eliminate on-premise hardware, since both client and network devices are required to connect to the cloud. The channel will continue to play a vital role in building and maintaining on-premise infrastructures. Resource pooling Cloud computing requires extensive infrastructure and resources that can scale to support applications potentially accessed by millions of users at any point, from any place. For many companies, this requirement makes the provisioning of cloud services the purview of large technology vendors who have the financial and technical resources to build large, distributed data center networks. This doesn t mean smaller channel companies cannot deliver cloud computing, but it does raise the bar. Rapid elasticity Cloud computing consumers should be able to expand and scale their technology consumption at will, or at least with greater speed than conventional, on-premise 10 10

11 infrastructure. While the channel can act as broker of elastic services, solution providers stand an equal chance of being disintermediated by the self-service nature of many simplified cloud computing services. Measured service Cloud computing is delivered most often as an operational expense, meaning that it s a recurring, predictable payment model similar to electricity and telephone charges. The end user has metered access to applications and infrastructure by the drink. Many solution providers are at loggerheads with cloud computing vendors over who should bill the customer since billing is analogous to account ownership. But measured service requires the provider to have the ability to measure variable consumption of services, and performance of that function is often only possible by the cloud vendor. Some vendors are meeting their channel partners halfway by controlling the billing process, while providing tools through which the reseller can bill their clients. The exception to disintermediation are entities that were created specifically to capitalize on cloud computing. This small but emerging class of channel businesses is free of the legacy considerations and business constraints of conventional hardware and software sales. It remains unclear how these businesses will evolve in the cloud computing era. For now, they re thriving because they are unencumbered. Additional Channel Considerations The NIST definition doesn t encompass some of the practical and operational necessities related to cloud computing. These operational necessities are critical to the channel, which we will outline here. Each of these items is both a deliverable and a role in which the channel can provide expert service and consultation. Service level agreements (SLAs) Cloud computing is delivered and administered by third-party providers. The performance of service delivery is measured through service-level agreements, which specify expectations of the cloud consumer. SLAs take on greater significance when cloud computing is delivered as a managed and monitored set of services by an intermediary channeling multiple offerings. Regulatory compliance When an organization contracts or subscribes to a cloud service, it is assigning risk and liability to the provider. As part of the SLA or other contractual metrics, providers of cloud services and resources must account for regulatory compliance issues such as auditing and inspection, data storage and reporting, process and procedure guidance, and response and remediation services. Security and privacy One of the top inhibitors to cloud computing adoption is security and privacy concerns. The NIST definition mentions nothing of security, yet the core security tenets confidentiality, integrity, and availability are essential for cloud adoption. The channel can serve as an advisor, assessor, and provider of security and privacy services to those delivering or adopting cloud services

12 Transparency and operational visibility Cloud computing provides the channel with a window into the customer s computing and technology use that was previously unavailable. Solution providers can use the intelligence gleaned from cloud consumption to provide monitoring and optimization services and to make recommendations for application and infrastructure improvements. Training and support Cloud computing is changing the delivery mechanism of applications and infrastructures to the ultimate consumers. Even if the channel is in part disintermediated from the sales and operations process, it may still play a vital role as a consultant as many users will require training and customization support to ensure they get their expected return on investment. Conclusion Given that it is a dynamic medium and business model, defining cloud computing may prove as futile as chasing clouds. As such, current definitions are transient since innovations in technology and delivery will likely bring even more change. The intent of the CompTIA Cloud/SaaS Community and the NIST effort before it is to provide the channel industry with a foundational framework and understanding of cloud computing. It is our belief that this effort will spawn greater clarity about the forms and capabilities of cloud computing, the tools that measure its performance, optimized business models for delivery and support, and, ultimately, its return-on-investment rationale for consumers. As such, this paper should be seen as a beginning for both defining and understanding the practical applications of cloud computing. About Us CompTIA Cloud/SaaS Community The CompTIA Cloud/SaaS Community is a collaborative group of technology suppliers and cloud computing vendors, distributors, service providers, and resellers dedicated to advancing cloud computing in the global technology marketplace. Our community is dedicated to defining cloud computing technologies, business models, and best practices; building cloud tools and resources; creating and administrating professional credentials; and deliberating and resolving issues related to evolving cloud computing challenges and opportunities. Our community is resolved to promote industry and regulatory standards that ensure the openness, performance, and integrity of cloud computing platforms, applications, and businesses. Our underlying goal is nothing less than ensuring high quality and performance in cloud computing among all marketplace constituents. For more information about the CompTIA Cloud/SaaS Community or to get involved in our community s activities, please contact communities@comptia.org

13 CompTIA CompTIA is the voice of the world s information technology (IT) industry. Its members are the companies at the forefront of innovation and the professionals responsible for maximizing the benefits organizations receive from their investments in technology. CompTIA is dedicated to advancing industry growth through its educational programs, market research, networking events, professional certifications, and public policy advocacy. For more information visit or follow CompTIA on Twitter at Contributing Authors Lawrence M. Walsh, Lead President The 2112 Group Brad DeSent, Community Chair President Apex Consulting Group Chris Chase Solutions Integrator Directive Denna Mensch Vice President Synnex Corporation Frank Hughes President Cloud Services Depot Jim Chow Senior Manager, Google Apps Channels Google Kunjal Trivedi Managed Services Strategist Cisco Michael Proper CEO Clear Center Richard Stopa Principal ICC Global Hosting Shiv Kumar Executive Vice President ZSL Inc. Stephen Cho Director Google Apps Channels Google Terry Calloway President Data Technique, Inc. Tricia Wurts President Wurts & Associates Dave Sobel CEO Evolve Technologies 13 13

14 2010 The Computing Technology Industry Association, Inc. All rights reserved. CompTIA is a U.S. registered trademark of CompTIA, Inc. Security Trustmark is a trademark of CompTIA, Inc. Other products and company names mentioned herein may be trademarks of their respective companies. Reproduction or dissemination prohibited without written consent of CompTIA. Printed in the U.S Sep10 14