Cloud Computing: Beyond the Hype The Views of Research University CIOs. Rich Fagen, CIO, Caltech

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1 Cloud Computing: Beyond the Hype The Views of Research University CIOs Rich Fagen, CIO, Caltech

2 Cloud Computing The set of disciplines, technologies, and business models used to deliver appropriately managed IT capabilities as a service. The Burton Group

3 Type of Clouds Private Cloud Virtual Private Cloud Federated Cloud Public Cloud

4 Categories of Cloud Services Software as a Service (SaaS) Platform as a Service (PaaS) Infrastructure as a Service (IaaS)

5 Common IT Functions Available in the Cloud Web-based Software Applications Software Development Environment Databases Computation Raw Data Storage

6 Enabling Technologies Advanced Networks Multi-core Processors Advances in Data Storage Virtualization Parallelization

7 Some Cloud Use Cases Websites with spikey traffic Start up companies Backup/disaster recovery Development and test environments and document sharing Outsource portions of existing IT infrastructure

8 The Big Players in the Cloud Gmail Google Docs Google Apps Google App Engine Google Gdrive?

9 The Big Players in the Cloud Amazon Web Services (AWS) Elastic Compute Cloud (EC2) Simple Storage Service (S3) Elastic Map Reduce Simple DB Cloud Front Simple Queue Service (SQS) Virtual Private Cloud

10 The Big Players in the Cloud Exchange Online Business Productivity Online Suite SharePoint Online Azure (development environment)

11 The Big Players in the Cloud SalesCloud ServiceCloud CustomCloud Chatter

12 The Big Players in the Cloud Cloudburst IBM Computing on Demand LotusLive inotes

13 The Big Players in the Cloud Cloud Servers Cloud Sites Cloud Files

14 Living on Amazon Heroku: managed software development platform RightScale: Cloud management platform EngineYard: Ruby on Rails managed environment

15 What are CIOs at the major research Universities thinking about cloud computing? Informal survey of CIOs at top research universities in the U.S. Typically early adopters of new technologies (many of which originated at Universities and research labs)

16 CIO s Biggest Benefits of Cloud Adoption Cost Containment Elasticity and Scalability on demand Ability to focus on core/unique competencies and move away from directly providing commodity services Limitations of local data center Shift to cheaper and/or greener source of power, reduce campus power consumption More consistent service levels Access to a wider range of services and tools

17 CIO s Biggest Benefits of Cloud Adoption, continued Outsource complexity of the stack Better collaboration across institutions Improved institutional compliance Stopability : Easier to set up and tear down services Agility in adopting new and innovative applications Geographic redundancy

18 CIO s Biggest Barriers to Cloud Adoption Data security Data privacy (HIPAA, FERPA, etc.) Losing control of data Push back by IT staff/ institutional culture Integration with current software stack Unwinding the relationship/exit strategy Bandwidth costs Lack of well-defined Service Level Agreement

19 CIO s Biggest Barriers to Cloud Adoption, continued Cutting through the Hype Immaturity of cloud services Uncertainty around impacts of broad deployment of services in the cloud Enormous complexity Lack of consistent legal agreements Maintaining identity and credentials; lack of adoption of common identity systems Charging individual researchers

20 Breaking Down the Barriers to Adoption of Cloud Services Improved Service Level Agreements Virtual Private Clouds Network Peering Arrangements Solid Track Record Over Time Federated Identity Systems Standardize ERP Implementations

21 Questions CIOs are Asking Will I need the same skill sets among my staff in the cloud era? (Ratio of sysadmins to servers is 1 to 100 vs. 1 to x,000s in cloud)? Will consortial arrangements among universities provide a non-commercial above campus cloud? Do I really know my cost structure for provisioning IT services locally, as opposed to in the cloud? Will increasing cost pressures force me to abandon the strategy of building out new IT infrastructures and data centers in the future?

22 Microsoft s new $550,000,000 data center in Northlake, Illinois is 500,00 square feet.

23 Google s data center in The Dalles, Oregon.

24 The CIO s take: Within the next three years, cloud computing will have a major impact on the way my institution deploys and delivers IT services Agree 80% Disagree 20%

25 Is the Cloud the Ultimate Disrupter? Epochal transformation is underway. Analogous to rise of the power grid. A portion of computer sales to corporations and higher education will dry up. Source: Nicholas Carr, The Big Switch

26 ECAR Study Findings Current adoption of the cloud among universities is broad but shallow. Adoption of cloud services is growing incrementally. Transformative impact of cloud is still several years away. >25% of colleges outsource student , but less than 5% do so for faculty and staff. We are likely at the very beginning of the cloud era. Source: Goldstein, Alternative IT Sourcing Strategies

27 The Big Switch References Nicholas Carr: W.W. Norton, 2008 Cloud Computing: An Executive Primer Howard: The Burton Group Alternative IT Sourcing Strategies Goldstein: Educause Center for Applied Research (ECAR) Above the Clouds Armbrust et al: Berkeley RAD Lab Above Campus Services Waggoner/Wheeler : Educause Review olume44/abovecampusservicesshapingthep/185222

28 Words of Wisdom Rich - you had better pick another career. The services your organization provides will soon be supplanted by external providers who will be able to do it much better and cheaper. What you do is commodity, it s over. Bob 1989