A Tale of Two Paradigms - A Systems Perspective on Cloud

Transcription

1 A Tale of Two Paradigms - A Systems Perspective on Cloud Computing by Ed Black d & C O f h President & CEO of the Computer & Communications Industry Association (CCIA)

2 Cloud Computing "Cloud Computing represents a computing paradigm shift in which users store, access, and utilize data remotely using the Internet. The cloud is a network of data centers providing commoditized computing power software, hardware, and services to end users in a fashion similar to electricity or water." CCIA Abstract

3 The Cloud...

4 The Public Cloud...

5 Private Cloud...

6 Hybrid Cloud - Interaction of Public and Private

7 Data Freedom, Google s view:

8 ...

9 Mainframe Market Background In banking, finance, health care, insurance, public utilities, government, and a multitude of other public and private enterprises, the mainframe computer continues to form the foundation of modern business. IBM 1 1. ftp://

10 What is a Mainframe? Since the 1960s, mainframe computers and the mainframe style of computing dominate the landscape of large-scale business computing IBM 1 IBM System/360 launched in 1964 Large computing platform capable of running thousands of tasks Known for power and reliability Used for large bulk data processing (e.g., payroll processing) and transactional workloads (e.g., airline bookings) Typically used by large companies, universities, iti and governments 1. ftp://

11 Mainframe Market Timeline PRO- -COMPETITIVE AC CTIONS Consent Decree against IBM 1956 EU opens inquiry into IBM abuses 1980 QSGI names leading OEM in Q3 earnings 2007 IBM and the Seven T3 Tech joins PSI suit against IBM Dwarves (Burroughs, 2007 UNIVAC, NCR, Control Amdahl, Hitachi enter market Sequent sells mainframe Data, Honeywell, GE, RCA) 1975 emulator PSI files countersuit 2007 T3 files EU complaint 2009 PRO-MONO OPOLIST ACTIONS DOJ drops 3rd suit against IBM 1982 IBM buys Sequent 1999 Amdahl, Hitachi exit mainframe business 2000 Protective restraints phased out by DOJ, EU 2001 IBM files suit against Platform Solutions 2006 IBM buys PSI 2008? IMPACT

12 IBM Blocks Competition Blocking Competition IBM Blocks IBM- Compatible Mainframe Competitors Controlling Channel IBM Controls the Supply of Mainframe Solutions Tying mainframe OS to HW Refusal to supply and exclusive dealing Refusal to license patents Terminating supply of interface information Terminating customer licenses for emulators Restricting sale of used mainframes

13 DOJ s Warning to IBM The expiration of the Decree, after all, does no more than release IBM from a 41-year-old consent decree that has outlived its usefulness. IBM is most assuredly not receiving any exemption from the antitrust laws. If, after the Decree terminates, IBM engages in any anticompetitive activity that would violate the antitrust laws, it would immediately be liable to suit. For example, should IBM engage in anticompetitive tying -- be it to parts or operating systems -- the United States could bring an action for injunctive relief both to stop the illegal conduct and to get other, broader prophylactic relief. Also, IBM would be liable to a host of potential private treble damage actions. - DOJ Consent Decree

14 Everyone is Impacted Just about everyone has used a mainframe computer IBM 1 CONSUMERS indirectly use mainframes everyday for ATM transactions, airline reservations, and other daily transactions. BUSINESSES have trillions of dollars of application and data assets tied up in mainframes today. GOVERNMENTS are some of the biggest users of mainframes for tax, healthcare, and other citizen applications. Mainframes are at the very core of most of the businesses within the nine segments of this country's critical infrastructure. The vast majority of the nation's Critical Information Infrastructure resides on and is processed by IBM mainframes. Post 9/11 White House Briefing by Ronn Bailey

15 The Importance of the Mainframe Mainframes are critically important to the operation of many businesses and government institutions-- All 50 of the world s top global l banks depend d on IBM mainframes Over 80% of corporate and government data resides on mainframes 94% of F1000 companies use mainframes for their most critical IT needs Over $5 trillion worth of corporate apps and data rely on IBM mainframes today IBM System z mainframe is the best foundation for cloud initiatives 1 Without the IBM mainframe, the global financial system would collapse

16 IBM Motives... By controlling the mainframe market, IBM can charge above-market prices for mainframe technology 24x cost of servers (up from 4x in 1999) 2 IBM derives about 25 percent of company revenue and nearly half of its profit from its mainframes Sanford C. Bernstein & Company 3 1. IDC WW Server Operating Environments New License and Subscription Shipments and Installed Base 2. Analysis by Peerstone Research based on IDC and TPC data

17 IBM & The Cloud "This is the next generation of computer architecture, and IBM wants to get in front of it. " Mervyn Adrian, analyst Forrester Research "The companies that have the best chance of making money from the cloud are those that get things to connect and work together and help customers move their computing around. This is music to the ears of big IT firms, not least IBM. Nearly 80% of its revenues come from infrastructure software and IT services, which it can offer globally." -Economist

18 IBM s New Cloud Campaign Text

19 IBM Clearly Sees Itself in the Cloud Cloud Infrastructure From IBM s Website... Mainframe

20 Layers of the Cloud 80% of World s Corporate and Government Data on Mainframes Mainframe Data Lock-in

21 IBM, Linux Playbook and the Cloud In 2000, the Linux operating system was a hot technology, but it had not spread much beyond scientists, researchers and computer programmers. Then I.B.M. declared that it would back Linux with investment, research and marketing, and the technology moved swiftly into the corporate mainstream. The same thing happened with the personal computer in the early 1980s, when I.B.M. endorsed d that upstart technology and entered the market. Starting this week, I.B.M. is returning to the same playbook, Sta t g t s wee,.b.m. s etu g to t e sa e playboo, introducing some initial products and services and a roadmap for its stable of corporate and government customers to comfortably embrace cloud computing. - Steve Lohr, NYT

22 Proposed Remedies Eliminate IBM s anti-competitive activity Prevent software/hardware tying RAND licensing for patents, software and interfaces PRICE INNOVATION CHOICE

23 Principles of an Open Cloud - IBM s Open Cloud Manifesto As cloud computing matures, there are several key principles that must be followed to ensure the cloud is open and delivers the choice, flexibility and agility organizations demand: 1. Cloud providers must work together to ensure that the challenges to cloud adoption (security, integration, portability, interoperability, governance/management, metering/monitoring) are addressed through open collaboration and the appropriate use of standards. 2. Cloud providers must not use their market position to lock customers into their particular platforms and limit their choice of providers. 3. Cloud providers must use and adopt existing standards wherever appropriate. The IT industry has invested heavily in existing standards d and standards d organizations; there is no need to duplicate or reinvent them. 4. When new standards (or adjustments to existing standards) are needed, we must be judicious and pragmatic to avoid creating too many standards. We must ensure that standards promote innovation and do not inhibit it. 5. Any community effort around the open cloud should be driven by customer needs, not merely the technical needs of cloud providers, and should be tested or verified against real customer requirements. 6. Cloud computing standards organizations, advocacy groups, and communities should work together and stay coordinated, making sure that efforts do not conflict or overlap.