CLOUD SERVICES POTENTIAL & CHALLENGES. Alf Henryk Wulf June 7 th 2011

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1 CLOUD SERVICES POTENTIAL & CHALLENGES Alf Henryk Wulf June 7 th 2011

2 The Cloud Service Projection changing customer demands: In 2 5 years 40 % of business customers will buy ICT from the cloud. 20% of companies will no longer run ICT equipment in-house 3 years from now. The total size of the public cloud market will grow from $25.5 billion in 2011 to $159.3 billion in

3 Typical Cloud Services User Access to the Internet Enjoy Music & Video Make Phone Calls Communicate Content Meet your friends Share your holiday Stay connected 3

4 Cloud Services need connectivity User Access to the Internet Desktop as a Service Quality of Service No latency Secure Unified Communication Platform as a Service Computing as a Service High Speed 100% Available Low Cost Storage as a Service Web Services 4

5 User Access to the Internet The Cloud WAN Services Network AND = the The Wide invisibly Area part Network of the Internet DOCSIS Modem Fibernode Cable Operator CMTS International Network A Video B Voice Modem DSLAM Voice DSL-Network ONT OLT Content Fiberbased FTTx C Video EthNT EthSwitch Ethernet Services Backbone BSC GSM / UMTS enodeb LTE SGSN SGW GGSN D Video Mobile Network PGW Voice 5

6 User Access to the Internet The All data WAN transfer Network via = the The WAN invisibly part of the Internet DOCSIS Modem Fibernode CMTS Cable Operator International Network A Video B Voice Modem DSLAM Voice DSL-Network ONT OLT Content Fiberbased FTTx C Video EthNT EthSwitch Ethernet Services Backbone BSC SGSN GSM / UMTS enodeb SGW LTE Mobile Network GGSN PGW D Video Voice 6

7 Cloud services come timely What we experience occurring at the same time Broadband Networking Significant investment already started on LTE mobile network built out. Massive investment in new fiber based NGA infrastructure expected center virtualization The physical server and storage environment can be allocated and used following the demand. Virtual machines replace physical infrastructure Cloud services IT infrastructure for residential and business in the future will have the cloud as integrated component. This is mainly driven by the large variety of end user devices and new application software 7

8 Cloud Services to change today s IT Leveraging better available storage and servers* Typical single use servers operate at 5%-10% of capacity, with one application Legacy data centers have low productivity Average CPU Utilization is: 3.38% Virtualization allows multiple servers, in the form of virtual machines, operating at capacity utilization of 80% Lower CAPEX as less machines are needed, lower energy consumption Peak CPU Utilization is: 8.75% *Source: Dimension, Presentation Title Month All COPYRIGHT Rights Reserved 2011 ALCATEL-LUCENT. Alcatel-Lucent 2008, ALL XXXXX RIGHTS RESERVED.

9 Cloud Services and IT A reference case for true NG datacenters 16*20 Gbit/s DDR IB 5*40 Gbit/s QDR IB 100GbE 100GBit/s Lambda 60/500km Dark Fiber 100GbE 17*10GbE 17*10GbE 16*8 Gbit/s FC 16*8 Gbit/s FC 9

10 Cloud Services and IT Virtual machines not limited to single sites WAN Interconnect VM VM VM Intra center Inter center 10

11 Cloud Services to change today s IT The datacenter interconnect Legacy Architecture Distributed Servers & Storage follow user locations High effort for replicated storage and data consistency Not scalable to follow the increasing amount of data Pairs of centers Everything comes from the cloud Reduction to new main sites with maximum performance Changes the demand for the WAN towards bandwidth & QoS Location selection driven by environmental criteria Main Site centers Cloud Services 11

12 Industry challenges for Cloud Services Source: Yankee Group Focus Report january 2011 Verizon Nabs a Valuable Chunk in the Cloud Computing Land Grab 12

13 Cloud Services challenge for the WAN Main criteria for successful deployment Bandwidth Never enough Throughput depends on distance and WAN quality Transfer rates at multiples of 100Gbit/s Latency For voice services Milliseconds are in use today For data transfer every Microsecond of latency is critical Speed of light is 5km per microsecond Strong impact on the End-User experience Caching For the traditional internet type of traffic file caching reduced the WAN traffic significantly Caching of streaming data (e.g. video) and metadata needed for today s cloud applications 13

14 SUMMARY 1. IT & Communications are merging 2. Managing data and access to data is most critical 3. Virtualization of IT, Communication and Applications 4. Cloud Services need broadband to take off 5. Today s WAN Networks are not yet cloud ready 14

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