451 CloudScape success stories, vendors and directions
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1 451 CloudScape success stories, vendors and directions John Barr, The 451 Group
2 Agenda Cloud Codex Journeys in the Clouds Market Monitor Top and tail with a European perspective
3 The 451 Group: Who we are Founded in 1999 Three operating divisions: 451 Research - analyzing the business of enterprise IT innovation Cloud, Virtualization, Green IT, HPC, Low latency technologies Tier 1 Research datacenter, hosting & IT services The Uptime Institute Datacenter Tier System, Uptime Network, IT Symposium Offices in New York (HQ), Boston, London, San Francisco, Santa Fe, Washington DC, London, Spain and Austria 125 employees with 45+ analysts
4 451 Research: who uses us? 900+ customers across Vendors Investors including 150 VCs, private equity and 80 investment banks Service-providers End users In addition to our published research: TechDealmaker M&A research, deal tracking Market Monitor - market sizing Three major events a year
5 European Research Projects The 451 Group connects the needs of industry to the research agenda Projects and activities GridEcon Challengers Gridipedia / IT-tude Cloud Experts group
6 Software licensing in distributed environments Tradi<onal so=ware licensing models are under pressure as they do not sa<sfy the changing business needs of today s enterprises. Elas<cLM The rules have changed Mul%core Virtualiza%on Grid Cloud The goal of SmartLM is a new licensing paradigm that delivers a win- win for both user needs and vendor business strategies.
7 The Cloud and ICE Infrastructure Computing for the Enterprise
8 Cloud Computing is a Continuum
9 Grids of Clouds or Clouds of Grids? Clouds Clusters, Grids Technical Data Center HPC Applica3ons HPC- - Without Limita.ons Expand HPC beyond internal grid Self- service HPC infrastructure sharing Desktop, DR and enterprise IT resource harves3ng Adap3ve clusters High Throughput Compu.ng Maximize compute resources Compress processing 3mes Balance applica3on demand and IT supply IT Data Center Enterprise Applica3ons Clouds- - Beyond Virtualiza.on Simplify & automate infrastructure pooling & management Flex resources for variable applica3on demand Improve LOB applica3on services & cost management Simplify & automate applica3on environment setup
10 451 CloudScape - Service Overview An interdisciplinary approach A comprehensive, coherent conceptual framework the 451 Cloud Codex Cloud marketplace surveillance and analysis: vendors, service providers Market sizing, surveys End users: best practices, vendor selection, peer events Actionable advice to improve opportunity for success
11 A Cloud Codex What are Cloud services Criteria for defining Cloud Deployment models Features
12 The Cloud Services Stack
13 Managed Hosting vs. Cloud
14 Cloud Criteria Publicly Accessible Programmatic Management Interfaces Multi-tenant Architecture Accounting Granularity and Cost Allocation Scalability and Elasticity Rich Web Management Capabilities Rapid Provisioning * and Self-Service Virtualization and Hardware Independence
15 Cloud Criteria vs. Architecture Cloud Criteria Cloud Architecture Publicly Accessible Programmatic Management Interfaces Multi-tenant Architecture Accounting Granularity and Cost Allocation Scalability and Elasticity Rich Web Management Capabilities Rapid Provisioning and Self-Service Virtualization and Hardware Independence Public Cloud Services Private Enterprise Cloud Cloud-like Enterprise Architecture Modern Enterprise Architecture
16 Cloud Spectrum
17 Four Pillars of Cloud Computing Hosted Private Cloud
18 e 451 Group: Who we are and who uses us? Journeys in the Cloud
19 Engineering Private Cloud Project Services Network: - Brought IT back in-house - Remodeled in the image of Google, Salesforce.com, YouTube, Amazon but not sold internally as cloud - Virtualized, multi-tenanted, multiple chargeback mechanisms Outcome: - 30% infrastructure cost savings - Key benefits: agility, collaboration, location-independence - Next up put its user community in the cloud (desktops) - Key advantage: project-based - Barrier cultural
20 Transportation PaaS Project Halo: - Use cloud to extend its enterprise operationally and commercially into the airport space - Move departure control system onto a.net service bus with universal access to run EasyJet and third-party apps - Deploy over secure VPNs via local 3G operators - Retain Savvis for certain dedicated apps Goal: - Remove dependence on service desks - Drive down cost and time to market - Create private cloud for some operations, use public cloud for others - Flexibility to support its bursty model
21 Pharmaceutical Project: - Longtime grid user has been trying to do this with its own datacenters - Three public cloud projects testing peak demand offload - Using insensitive data and NONMEM apps - Run HPC workloads (and grid middleware) on Amazon Goal: - Required capacity varies from 30% to 300% - Reduce capex, improve time to market and provisioning - Use cloud instead of buying additional CPUs - Also considering IBM and Microsoft
22 E-tailer Project: - Use GoGrid public cloud for QA, testing and more - Will move entire search engine marketing to cloud - Also considering Amazon and IBM - Cloud can help improve 3% utilization due to seasonal sales model Goals and benefits: - Reduce capex, improve time to market and provisioning - Reduced QA deployment from two days to 30 minutes - Multiple weekly changes to website instead of one - Organizational and cultural barriers
23 Energy Challenge: - Internal provisioning = weeks/months - Developers went to AWS - Guerrilla activity uncovered Innovation: - Enfranchise use - Extend existing management tools to support hybrid model with rules and reporting - Self-service, service catalogs - Baked-in process change? - Real cloud strategy under way
24 Chip Design Cloudbursting Project: - Cloudburst internal grid to Amazon cloud - Already uses external services for CRM, HR, etc. - Cost allocation is key Challenges: - Meeting contractual obligations in the cloud - New spending capex or cloud?
25 Private Hosted, Enterprise Public Clouds Cloud Projects: - Create private hosted, public enterprise clouds Goals: - Support internal, external customers - Turn fixed costs into variable costs Challenges: - Flexibility - Service management - Establish enterprise QoS, SLA
26 FSI From Grid to Cloud? Investment banking groups champion use of grid for HPC Benefits realized from shared resources Same groups asked to extend shared infrastructure to support additional activities (e.g., retail banking) All have public cloud PoCs running Features: - Improved utilization - Utility cost allocation - Silos to internal cloud: projected savings = 30%
27 Workspace is spear tip of adoption
28 Which Models Are Being Adopted?
29 Some Drivers of Enterprise Cloud Cost reduction IT staff already using cloud services Avoidance of capital expenditure Reducing footprint physical and carbon Managing underutilized resources Flexibility in scaling IT up and down Rolling out new services rapidly Accelerated time to market
30 Specific Concerns
31 What We Are Seeing PVC: people are starting to talk about an infrastructure progression from physical to virtual to clouds Public/private cloud 30% infrastructure cost savings 25%+ of capacity in the cloud Benchmarking against Amazon AMI becoming a de facto standard? Cost allocation, self-service
32 What We Are Hearing There aren t any tools There are too many tools The tools don t work the way I do! How do I get from where I am today to cloud? Easy migration or start all over again? Data Management Regulation & fate sharing Is there enough bandwidth? Especially for HPC applications How/when should I put an application on the cloud and can I leave?
33 What We Expect Once specific concerns are overcome, external clouds will be used on a production basis Standards won t hold up or advance clouds economics will A few public clouds, but many private clouds Benefits will depend mostly upon mindset
34 Recommendations to users Experiment with basic applications on multiple clouds plan to span internal/external New project no servers? Cloud scares traditional IT suppliers put it on RFPs It s a different sell To management and to end users
35 Market Monitor
36 and here come private clouds Turn your own datacenter into a cloud that works like Amazon, Rackspace and other clouds Use any combination of internal/external resources No application rewriting Advantages security and compliance leveraging existing investment in datacenters powering new cloud model inside organizations enables hybrid cloud
37 Public vs Private Cloud growth
38 What we expect Beyond virtualization and consolidation private cloud is the next act A few public clouds but many private clouds
39 Growth trends and market forecast
40 Estimated 2009 revenue breakdown by subsector
41 Estimated 2013 revenue breakdown by subsector
42 42 IaaS vendors - by geography
43 IaaS revenue by geography
44 European Landscape
45 European Landscape Lack of local cloud services suppliers Telcos need to get their act together High roaming charges Pent up demand for local data processing/storage Complex regulatory environment Adoption and revenue lags US 99% of firms are SMEs
46 Role of the European Commission Cloud is the building block of the Future Internet Internet of Things will be the biggest consumer of cloud It is up to debate whether the Internet of Things is related to cloud systems at all, The Future of Cloud Computing, Expert Group Report Non-technical issues are key to what EC can achieve: Regulatory framework to facilitate uptake of cloud Global consistency Legal and privacy issues Standards
47 It s a hybrid world - don t stand still
48 Thank You John Barr Research Director The 451 Group
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