Published on February 20, 2009
Opportunities & Challenges in Cloud Computing Shailabh Nagar IBM Jan 2009
The Cloud has 5 distinct layers and value propositions. Very significant opportunities exist above the infrastructure level, where much of the cloud discussion has been focused previously. 2
Evolving a cloud definition IT Customers: IT Analysts: - Flexible pricing / business models - Variable pricing - Outsourced, on demand - No long term commitments provisioning - Hosted, on dem. provisioning - Unlimited scaling - Massive, elastic scaling - SW developer platform - Standard Internet technology - Flexible - Abstracted infrastructure - Service-oriented Common Attributes of Clouds Elastic scaling Rapid provisioning Advanced virtualization Flexible pricing Press: Financial Analysts: - Pay by consumption - Utility pricing - Lower costs - Hosted, a-a-s provisioning - On demand provisioning - Parallel, on demand processing - Grid and SaaS combination - Scalable - Massive scaling - Virtualized, efficient infrastructure - Efficient infrastructure - Flexible - Simple and easy 3
Cloud Computing is a model of shared network-delivered services, both public and private, in which the user sees only the service, and need not worry about the implementation or infrastructure Consumable web- People Standard Internet Services delivered services technologies requiring no installation, minimal setup Business Important roles for both Services public and private Rapid provisioning clouds. Application Services Service layers separated by clean APIs, enabling Flexible pricing composition. Platform Services Built on radically Elastic scaling scalable, manageable, Infrastructure virtualized IT resources Advanced Services virtualization 4
Cloud Computing Definition: Another view End Users / Requestors • New combinations of services to form differentiating value Government/ Consumers Industry propositions at lower Academics (Startups/ SMB/ Enterprise) costs in shorter time • Cloud applications enable the simplification INNOVATIVE BUSINESS MODELS of complex services • A cloud computing platform combines modular components SIMPLIFIED SERVICES on a service oriented architecture • An “Elastic” pool of high Public Cloud performance virtualized compute resources • Internet protocol based Enterprise Cloud convergence of networks and devices 5
There are major opportunities at all levels of the stack, and the Cloud will grow rapidly at the top layers Cloud (Application, Business and People) Answer Live Mesh ‘People’ Services Health BETA Service Cloud Layers Business Services Application Services Platform Services Infrastructure Services 2009 2006 2000 Static, dedicated, outsourced Network-delivered, off-premises Shared, automated, dynamic 6
The Cloud has 5 distinct layers and value propositions. Very significant opportunities exist above the infrastructure level, where much of the cloud discussion has been focused previously. The Cloud model can be truly disruptive if it can reduce the IT operational expenses of enterprises: development, management, integration, and energy consumption. 7
IT Operational Challenges Rising operational costs of systems and networking Costs & Service Explosion in volume of data and information Delivery Difficulty in deploying new applications and services Security of your assets and your clients’ information Business Resiliency Landslide of compliance requirements and government mandates & Security Systems and applications need to be available Rising energy costs and rising energy demand Energy Power and thermal issues inhibit operations Efficiency Environmental compliance and social responsibility Unpredictable workload characteristics Changing application Manage fast growth of “smart” objects and data volumes models Need maximum flexibility for real time interaction 8
Cloud technologies offer operational expense reductions at all layers • People cloud, tagging, wisdom of crowds People • Break linear relationship between revenue and labor costs Services Business • Businesses (i.e. Telco) can easily experiment with new services Services • Time-to-value of new services greatly decreased • Improved consumability via Web delivery of apps and services Application • Web-resident development, deployment, update, app management Services • Easy app composition reduces development costs Platform • Deployment technologies uncouple service deployment from hardware. Services • Ensembles simplify hardware (server / stg / network) management. Infrastructure • Virtual image management contains scaling costs of update, etc. Services • Power and heat management reduce energy costs / emissions 9
Global Annual IT Spending Estimated US$B 1996-2010 300 Power and Cooling Costs Server Mgt and Admin Costs 250 New Server Spending 200 Uncontrolled system 150 management costs 100 Steady CAPEX spend: 50 Not the key problem to address $0B Industry hypothesis is that clouds will be driven by scale. However to capitalize on this, providers must address the server management cost problem, not just CAPEX 10
Business Case Results: IBM TAP Cloud Deployment TAP - The Technology Adoption Program is IBM's new model for managing technology to drive innovation With Cloud Without Cloud Business Case Results New 100% Annual savings: 87% Development Liberated Payback Period: 32 days funding for new Software Strategic Return On Investment (ROI): 2673 % development, Costs Change transformation Capacity investment or Power direct saving Costs Current Deployment (1-time) IT Labor Costs Spend (Operations and Software Costs Maintenance) Power Costs (- 88.9%) Hardware, labor & power savings Hardware Labor Costs reduced annual cost Costs ( - 80.7%) of operation by (annualized) 86.7% Hardware Costs ( - 88.7%) Note: 3-Year Depreciation Period with 10% Discount Rate 11
Benefits of a Services-oriented Cloud – Application development • Enterprise application development with Websphere 7.0 Traditional native approach Cloud-based deployment • Order on cloud service (< 1min) • OS installation =~ 1 hour • Deploy appliance to target and activate (7 min) • WAS download + unzip + install = 8 + 5 + 35 = 48 WAS cell ready to deploy application = 8 min min • Web2.0 application development with Linux, Apache, MySQL, PHP (LAMP) Traditional native approach Cloud-based deployment • Order on cloud service (< 1min) • OS installation (1 hr) • Deploy XAMPP appliance to target and activate (6 • Apache download, install, config =~ 30 min min) • MySQL =~ 30 min, PHP =~ 30 min, Perl =~ 30 min LAMP stack ready to deploy application: ~ 7 min • Admin tools =~ 1 hr Ready to use: ~ 4 hrs • Access to service offering content from service • Resource procurement, setup, and provisioning catalog • Management and monitoring of virtualized • Standardized deployment with less human error infrastructure • Accelerated provisioning and on-boarding for new customers • Manual on-boarding onto new applications and services • No procurement and management of infrastructure 12
The Cloud has 5 distinct layers and value propositions. Very significant opportunities exist above the infrastructure level, where much of the cloud discussion has been focused previously. The Cloud model can be truly disruptive if it can reduce the IT operational expenses of enterprises: development, management, integration, and energy consumption. The challenge is in achieving the operational expense reduction at all layers of the cloud at a sufficient scale. We’ve been here before and opportunity is knocking once more ! 13
Cloud management services. A layer of management services will be required to provide enterprise-level QoS transparently, from both intranet and public clouds. Using Cloud services does not free the service user from all management requirements. Confidential Data Encrypted/anonymized data CRM application Public/ Private Clouds Primary service Core business HA service application Public cloud Backup service Analytics application Dashboard, PD… Non-cloud 14
Architectural Model for Cloud Computing Service Service Request & IT Infrastructure & Application Creation & Deployment Operations Provider Virtual Image End User Datacenter Management Service Management Requests Infrastructure & Operators Access User Request Management/Self Service Portal Services Service Lifecycle Management Design Service Catalog, & Build Image Lifecycle Performance Availability/Backup/ Component Provisioning Management Management Restore Library Security: Identity, Access, Integrity, Usage License Accounting Management Isolation, Audit & Compliance Image Library (Store) Cloud Administrator Service Oriented Architecture Information Architecture … Optimized Middleware (image deployment, integrated security, workload mgmt., high-availability) Depl
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