Cloud Computing: Future of InfrastructureValue Destruction to Value Creation

HP CTO SummitNew Jersey, USA

Surendra ReddyMarch 24, 2010

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Source: Serving the World’s Poor, Profitably by C.K. Prahalad and Allen Hammond

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High Cost Economy of Bottom 4B

Source: Serving the World’s Poor, Profitably by C.K. Prahalad and Allen Hammond

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Changing Mindset

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Source: Serving the World’s Poor, Profitably by C.K. Prahalad and Allen Hammond

“If there is any period one would desire to be born in, is it not the age of revolution when the old and

the new stand side by side, when the energies of all men are searched by fear and the hope, when the

historic glories of the old can be compensated by the rich possibilities of of the new?”

Ralph W. Emerson

Exploding number of application on mobile device pushes back the power to the edges

More and More Channels are emerging to serve the information

hungry Humans and Machines

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Technology Begets Computation

Source: Based on Ray Kurzweil Singularity is Near and updated by http://www.flickr.com/photos/jurvetson/43121225/sizes/l/in/set-42234/

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the technological advances enabling machines to analyze problems without “educated incapacities” or “cognitive biases”, analyze risks, simulate alternate choices, and make rapid decisions…

Are we reaching Singularity?“It’s a future period during which the

pace of technological change will be so rapid, its impact so deep, that human

life will be irreversibly transformed.” – Ray Kurzweil

Globalization and Consumerization makes enterprises more vulnerable than

ever before

Boardrooms to War-Rooms

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Manufacturing of Tomorrow• Intelligent Manufacturing

» Machine-Machine Intelligence» Leadership through smart manufacturing

• Education» what is good for what circumstances?

• Entertainment» Monetize your branding and marketing efforts through

entertainment» Consumer attention is what it counts – not how big is

your advertisement budget

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Food and Drugs

• Intelligent Farming/Pharming» Know who wants what/get closer to understand what they

need? When they need? How to economically deliver them? Many small lots with hefty premiums

• Education» Use Customer for your innovation and marketing – they are

powerful and center to their social universe• Entertainment

» Food and Drug recalls are expensive and damages » Transform crisis into opportunity by knowing them better

and engaging them better

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And, Network is the Engine of this Innovation….

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Who is the King? Consumer or Content ?

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One who deliversInformation + Education +

Entertainment gets Consumer attention

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State of the Union of IT and Business

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So, Does IT Matter?X

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Economic Climate

• The economic climate has caused many organizations » to revisit base assumptions, such as how long to hold

on to servers, how many vendors to work with for a given platform/operating environment, and how to best-utilize personnel and deal with skill shortages.

• Aging IT infrastructures » have forced many organizations to rethink traditional,

incremental technology improvement programs, and to focus instead on a holistic IT modernization program

Cloud Computing

New deployment and operational model for delivering new services rapidly

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Joe’s Great Wisdom on Economics of Cloud

http://www.cloudonomics.com/

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Cloud Computing: Enablers

• Virtualization» Virtual servers, virtual storage and virtual

networking

• Automation is the Key» They automate server/VM; storage, network,

platform, and application provisioning

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Pillars of Cloud Computing

• Self-service » Graphical user interface or an application

programming interface

• Service Management» Service delivery is managed through automation,

and metered use is tracked.

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Pillars of Cloud Computing

• Elastic data center architectures» Applications and data run on big, flat processor

and storage pools, taking as much as needed and releasing unused resources when they are no longer necessary

• Operational Support System» Operational processes to support the service are

automated as much as possible, reducing the need for manual intervention.

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Pillars of Cloud Computing

• Standardized workloads» Want to build a high-volume business? Cut the number

of product variations. • Rapid provisioning

» Customers order resources and/or applications via a Web » No waiting for the vendor to order, install, and configure

equipment, and no extended contract negotiation. • Telco-grade billing

» Provide a simple price sheet and billing and reporting systems that help an IT organization manage its costs

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Cloud Computing: Disruptive Elements

• Redefining Economies of Scale» allows small companies to enjoy the low unit cost

for scaling

• Compressed Transaction Costs» Allowing companies to significantly enhance the

richness of the information and interactivity

Credits: Joe Weinman, Cloudonomics.com

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Cloud Computing: Disruptive Elements

• Enabling Real-time Enterprise» Enables companies to respond to changing

business conditions and opportunities much faster

• Enabling User Driven Innovation» Collaborate and Co-Create with your customers

• Availability and Reliability at Fractional Cost» Achieve extremely high reliability architecture

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Network:Powering the Engines of Innovation

• Powering the Last Mile » Importance of reliable access with SLAs

• Design for Change• Changing application environments, user expectations

and network services demand that architects expand their thinking to ensure that the network supports new business requirements.

• New Dimensions in Network Design• Location, Users, Applications, Devices, and Business

Processes

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Power of Cloud ComputingWith

Traditional Model

WithCloud Model

Savings

Capex $ 2.9 M $ 912,000 68%Physical Servers 3372 304 90% reduction

in serversCabinets 93 8.5 90% reduction

in floor spacePower Consumption

404KW 66 KW 83% reduction power

“A man who carries a cat by the tail learns something he can learn in no other way.”

– Mark Twain

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Cloud Computing: Challenges

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Applications Mobility

• What is Application Mobility?» Ability to move applications from one location to

other depends on demand, cost parameters, or to deal with disaster recovery etc

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Apps-in-the-Sky

• Application Containers» the application contained in a single server,

a single image’s stack?» the application as an n-tier ensemble of servers?

Where scale-out & loose coupling are the rules?» a structured, composed constellation of servers?

Uses VLANs, port filters for isolation & security?

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Network in Cloud Era

• Reliance on independently operated infrastructures to hide the details of application safety, performance, resilience, and economics.

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Cloud: Promise to Fulfillment

• Moving Legacy Applications» Boxed in applications» VM based approach to move these applications into Cloud

• Creating New “Greenfield” Cloud Services» Move ‘up the stack’» Platform as the building blocks of application construction.

Security, Data Privacy, and IPLoss of Competitive Advantage,

Increased costs of data disclosure,Possibility of illegal or unauthorized

transaction enabled by data leak

Management & VisibilityLack of management tools and end-to-

end business process visibilityInability to configure and deploy complex

business processes

Meta-data & InteroperabilityLack of meta-data for end-to-end business processes, Transaction

Processing across service providers

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Discussion

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Trends and Countertrends are Powerful Market Movers

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Reality – Pulse of the Customers

Source: Forrester Research

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Countertrend

Virtualization is driving the IT industry towards an optimized infrastructure and ensure that they are creating an agile and integrated framework that subsumes the deployment of the server, network and storage – accelerating the application deployment by many fold

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Trend

• Shift in Vendor Strategies» Cisco entering the server market, the HP

acquisition of 3Com, or the Virtual Computing Environment (VCE) partnership between Cisco, EMC and vmware will impact IT organizations

» The benefits touted include greater agility, flexibility and efficiency

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Countertrend

• How will the competitive landscape evolve for server operating systems (OSs)» Windows, AIX, HP-UX, Solaris, Linux and z/OS?» New technologies, new modes of computing, and

infrastructure virtualization and automation are changing the architecture and role of the OS.

» VMs will become the norm on the server, with increased use on the client as well, creating a new control point below the OS.

» Appliances — based on a VM architecture — will make modular/customized (lightweight) OSs interesting and useful.

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Trend: Applications in the Sky

• The emerging wave of cloud computing represents a major shift in IT. » This is not a single transition, but rather multiple

parallel paths of evolution, at different levels of the technology stack.

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Countertrend

• We see the demand for different layers of the classic technology stack “in the sky”

• Storage (Amazon Simple Storage Service [Amazon S3]), • Database (Amazon SimpleDB, Google Bigtable and Microsoft

SQL Data Services), • Raw computing power (Amazon Elastic Compute Cloud [EC2]), • Programming language environments (Google App Engine,

Heroku, Bungee Connect and Microsoft Azure Services Platform),

• Application-centric platforms (salesforce.com's Force.com) ,and • Applications themselves (Microsoft Dynamics).

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Trends

• Proliferation of Smart devices » Exploding number of application on mobile device

pushes back the power to the edges» Pushing new variant of client server applications» Exploding number of Mobile Apps

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Countertrend

• App Store for Cloud» Looking further into the future, cloud platforms

will have more-direct support for monetization and management

» Linking monetization to reputation-based reuse will have a powerful effect in accelerating the evolution of solutions targeted to diverse market requirements

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Open Cloud Consortium

opencloudconsortium.org

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Open Cloud Consortium

• 501(3)(c) Not-for-profit corporation• Define and Promote Standards

» Supports the development of standards, interoperability frameworks, and reference implementations.

• Manages cloud computing infrastructure to support scientific research

» Open Cloud Testbed and Intercloud Testbed.» Open Science Data Cloud.

• Develops benchmarks.

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Members

• Companies» Aerospace, Booz Allen Hamilton, Cisco, InfoBlox, Open Data

Group, Optena, Raytheon, Yahoo• Universities

» CalIT2, Johns Hopkins, MIT Lincoln Lab, Northwestern Univ., University of Illinois at Chicago, University of Chicago

• Government agencies» NASA

• Open Source Projects» Sector Project

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Working Groups

• Large Data Cloud• Open Cloud Testbed• Intercloud Metadata• Virtual Networking

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OCC Testbed

Phase 2• 9 racks• 250+ Nodes• 1000+ Cores• 10+ Gb/s

MREN

CENIC DragonC-Wave

• Hadoop• Sector/Sphere• Thrift• KVM & Xen

VMs

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Thank You

blog: cloudrants.comfacebook.com/cloudwave

tweet: @sureddyemail: sureddy@optena.com