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Opportunities & Challenges in Cloud Computing
Shailabh NagarIBM
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.
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Evolving a cloud definition
IT Analysts:- Variable pricing- No long term commitments- Hosted, on dem. provisioning- Massive, elastic scaling- Standard Internet technology- Abstracted infrastructure- Service-oriented
IT Customers:- Flexible pricing / business models- Outsourced, on demand
provisioning- Unlimited scaling- SW developer platform- Flexible
Common Attributes of CloudsElastic scaling
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Financial Analysts:- Utility pricing- Hosted, a-a-s provisioning- Parallel, on demand processing- Scalable- Virtualized, efficient infrastructure- Flexible
Press:- Pay by consumption- Lower costs- On demand provisioning- Grid and SaaS combination- Massive scaling- Efficient infrastructure- Simple and easy
Elastic scaling
Rapid provisioning
Advanced virtualization
Flexible pricing
Rapid provisioning
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
BusinessServices
PeopleServices
Important roles for both public and private
clouds.
Consumable web-delivered services
requiring no installation, minimal setup
technologiesStandard Internet
technologies
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Flexible pricing
InfrastructureServices
PlatformServices
ApplicationServices
Built on radically scalable, manageable, virtualized IT resources
Service layers separated by clean APIs, enabling
composition.
clouds.
Elastic scaling
virtualizationAdvanced
virtualization
Cloud Computing Definition: Another view
INNOVATIVE BUSINESS MODELS
End Users / Requestors
Government/ Academics
Industry(Startups/ SMB/ Enterprise)
Consumers
• Cloud applicationsenable the simplificationof complex services
• New combinations of services to form differentiating value propositions at lowercosts in shorter time
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Enterprise Cloud
Public Cloud
INNOVATIVE BUSINESS MODELS
• An “Elastic” pool of high performance virtualized compute resources
of complex services• A cloud computingplatform combines modular componentson a service oriented architecture
• Internet protocol based convergence of networks and devices
SIMPLIFIED SERVICES
Answer
Live Mesh
CloudThere are major opportunities at all levels of the stack, and the Cloud will grow rapidly at the top layers (Application, Business and People)
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Infrastructure Services
Platform Services
Application Services
Business Services
2000 2006
‘People’ Services
2009
Serv
ice C
loud L
ayers
Health BETA
Static, dedicated, outsourced Network-delivered, off-premises Shared, automated, dynamic
The Cloud model can be truly disruptive if it can reduce the IT operational expenses of enterprises: development, management, integration, and energy consumption.
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.
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Rising operational costs of systems and networking
Explosion in volume of data and information
Difficulty in deploying new applications and services
Security of your assets and your clients’ information
Landslide of compliance requirements and government mandates
Systems and applications need to be available
Costs &
Service
Delivery
Business
Resiliency
& Security
IT Operational Challenges
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Systems and applications need to be available
Rising energy costs and rising energy demand
Power and thermal issues inhibit operations
Environmental compliance and social responsibility
Unpredictable workload characteristics
Manage fast growth of “smart” objects and data volumes
Need maximum flexibility for real time interaction
Energy
Efficiency
Changing
application
models
BusinessServices
People
Services
• People cloud, tagging, wisdom of crowds• Break linear relationship between revenue and labor costs• People cloud, tagging, wisdom of crowds• Break linear relationship between revenue and labor costs
• Businesses (i.e. Telco) can easily experiment with new services• Time-to-value of new services greatly decreased• Businesses (i.e. Telco) can easily experiment with new services• Time-to-value of new services greatly decreased
Cloud technologies offer operational expense reductions at all layers
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InfrastructureServices
PlatformServices
ApplicationServices
• Ensembles simplify hardware (server / stg / network) management.• Virtual image management contains scaling costs of update, etc.• Power and heat management reduce energy costs / emissions
• Deployment technologies uncouple service deployment from hardware.
• Improved consumability via Web delivery of apps and services• Web-resident development, deployment, update, app management• Easy app composition reduces development costs
Global Annual IT SpendingEstimated US$B 1996-2010
Uncontrolled system management costs150
200
250
300
New Server Spending
Server Mgt and Admin Costs
Power and Cooling Costs
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Steady CAPEX spend:Not the key problem to address
management costs
$0B
50
100
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
Business Case ResultsAnnual savings: 87%
Payback Period: 32 days
Return On Investment (ROI): 2673 %
Business Case Results: IBM TAP Cloud Deployment
StrategicChange Capacity
100%New
DevelopmentLiberated
funding for new development,
transformation investment or direct savingPower
Costs
Software Costs
Without Cloud With Cloud
TAP - The Technology Adoption Program is IBM's new model for managing technology to drive innovation
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Current IT
Spend
Hardware, labor & power savings reduced annual cost of operation by 86.7%Hardware Costs
( - 88.7%)
Labor Costs ( - 80.7%)
Deployment (1-time)
Note: 3-Year Depreciation Period with 10% Discount Rate
Hardware Costs
(annualized)
Labor Costs (Operations and
Maintenance)
Power Costs(- 88.9%)
Software Costs
Benefits of a Services-oriented Cloud – Application development• Enterprise application development with Websphere 7.0
• Web2.0 application development with Linux, Apache, MySQL, PHP (LAMP)
Traditional native approach Cloud-based deployment
• OS installation =~ 1 hour• WAS download + unzip + install = 8 + 5 + 35 = 48
min
• Order on cloud service (< 1min)• Deploy appliance to target and activate (7 min)WAS cell ready to deploy application = 8 min
Traditional native approach Cloud-based deployment
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Traditional native approach Cloud-based deployment
• OS installation (1 hr)• Apache download, install, config =~ 30 min• MySQL =~ 30 min, PHP =~ 30 min, Perl =~ 30 min• Admin tools =~ 1 hr Ready to use: ~ 4 hrs
• Order on cloud service (< 1min)• Deploy XAMPP appliance to target and activate (6
min)LAMP stack ready to deploy application: ~ 7 min
• Resource procurement, setup, and provisioning
• Management and monitoring of virtualized infrastructure
• Manual on-boarding onto new applications and services
• Access to service offering content from service catalog
• Standardized deployment with less human error
• Accelerated provisioning and on-boarding for new customers
• No procurement and management of infrastructure
The Cloud model can be truly disruptive if it can reduce the IT operational expenses of enterprises: development, management, integration, and energy consumption.
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 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 !
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Cloud management services. A layer of management services will be required to provide enterprise-level QoS transparently, from both intranet and public clouds.
CRM application
Using Cloud services does not free the service user from all management requirements.
Confidential Data
Public/Private
Encrypted/anonymized data
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Core businessapplication
Analytics application
Public cloud
Non-cloud
Dashboard, PD…
HA service
Backup service
Primary service
PrivateClouds
Architectural Model for Cloud Computing
End User
Requests
& Operators
Service Request & Operations
Design & Build
IT Infrastructure & ApplicationProvider
ServiceCreation & Deployment
Virtual ImageManagement
Service Catalog,Component
Library
DatacenterInfrastructure
AccessServices
User Request Management/Self Service Portal
Security: Identity, Access, Integrity,
Isolation, Audit & Compliance
Usage Accounting
License Management
Image Lifecycle Management Provisioning Performance
ManagementAvailability/Backup/
Restore
Service Lifecycle Management
Service Management
15August 24, 2008
…
Image Library(Store)
Deployment
OperationalLifecycle of Images
Service Catalog
Request UI
Operational UIStandards Based Interfaces
Virtualized Infrastructure
Service Management
Service Oriented Architecture Information Architecture
Standards Based Interfaces
Cloud Administrator
Optimized Middleware(image deployment, integrated security, workload mgmt., high-availability)
Service Oriented Architecture Information Architecture
Isolation, Audit & Compliance Accounting Management
Virtual Resources & Aggregations
SMP Servers Network HardwareStorage Servers
System Resources
Blades Storage
Virtualized Infrastructure
Server Virt. Storage Virt. Network Virt.
Network-Delivered Services are the culmination of a long term trend to simplify the purchase of IT Services
1990: Berners-Lee invents the World-Wide Web1994: CommerceNet
1998: RosettaNet1999: i-Mode mobile internet
1961: John McCarthy proposes computing as a utility1961: IBM Services Bureau
1975: First inter-industry EDI standards
1981: SMTP defines the standard electronic mail service1985: United Nations sponsors EDIFACT
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2000: IBM BCRS2000: UDDI 1.0; “SaaS” coined
2001: Dot com bubble bursts
2005: IBM AoD2006: Amazon EC2
2007: Google Health; force.com launch2008: IBM ww Cloud Computing
centers
1999: i-Mode mobile internet
20101980 1990 20001960-
1970
IBM ServiceBureau (1961)
Evolution of Cloud Computing
• Anytime, anywhere
Software as a Service
Utility Computing
Cloud Computing
We can leverage experiences from this evolution
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• Solving large problems with parallel computing
• Network-based subscriptions to applications• Offering computing
resources as a metered service
• Anytime, anywhere access to IT resources delivered dynamically as a service.
Utility Computing
Grid Computing
The Cloud model can be truly disruptive if it can reduce the IT operational expenses of enterprises: development, management, integration, and energy consumption.
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 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 !
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Thank you
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