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Cloud computing trends:
meet the ground
Glen Koskela, Director Technology Strategy
Trend forecast through 2012: heavy cloud coverage
    The top IT trend among press, analysts, conferences…
    Consumers: already big, unnoticed, in public online services

       69% of online users are making use of
                  cloud computing                                          $0.06 per
                                                                          session hour    $0.10 per
                           The Cloud Wars:                                    $0.15 per
                                                                                          CPU hour

                         $100+ billion at stake                               GB/month



    Not all enterprises are fully subscribing: constraints vs. benefits
    Notion of “private clouds” or “on-premises clouds” has begun only recently
    (together these yielded only 127 Google search hits on Nov 7th, 2008)

       What is it? What does it do? How to benefit? How it evolves?
2   VISIT 2008   © Fujitsu Siemens Computers 2008   All rights reserved
What is cloud computing? What is new and different?
     A concept with many
     elements,                                                                Dynamic data center
     some new, some old                                                   Service-oriented infrastructure
       Current state-of-art in the                                           Managed infrastructure
       evolution and convergence                                                  Virtualization
       of many seemingly                                                          Grid computing
       independent trends                                                        Utility computing
                                                                                   Outsourcing
     Decoupling of the source of
                                                                               On-demand computing
     consumption of IT from the                                              Centralized SaaS architectures
     source of production                                                             Web services
       Industrialization of IT                                                        Commoditization
                                                                                Internet as delivery method
                                                                                        Automation
     Everything in IT can become                                                      Social networking
     affected by as-a-service                                                       Proliferation of devices
                                                                                 Globally integrated enterprise



          Much of what was within the corporate boundaries is being
          increasingly served up from outside
3   VISIT 2008   © Fujitsu Siemens Computers 2008   All rights reserved
Need for new concepts: IT is at tipping point
    Operational issues have                                               Energy issues have data
    IT costs at break point                                               centers at break point
        Rising costs of IT operations                                       Rising energy costs
        Continuous increase in volumes                                      Power and thermal issues
        24/7 availability of IT                                             inhibit growth
                                                                            Environmental guidelines

    Business changes have IT                                              New technologies have
    resources at break point                                              time-to-market at break point
        Budgets being cut                                                   Unpredictable workloads
        Difficulty in deploying new services                                Device diversity, real-time
        Surge of compliance requirements                                    Rich application capabilities

         The IT delivery model needs to be transformed
4   VISIT 2008   © Fujitsu Siemens Computers 2008   All rights reserved
Long-term trends and ch-ch-ch-changes
                                         Physical consolidation                         Virtualization          Dynamic pools   Shared resource pools
                                         Application consolidation                      Automation              Provisioning    Infrastructure-as-a-service
                                         Data center consolidation                      Energy usage            Metering        Usage based pricing
    Flexibility/ (business agility)




                                                                                                                                    Cloud
                                                                                                                                (as-a-service)
                                                                                                            Service-oriented

                                                                                      Dynamic

                                              Rationalized

                                                                                                                                 Economies of scale

                                        IT infrastructure becomes stateless through technologies and services
5                                     VISIT 2008   © Fujitsu Siemens Computers 2008   All rights reserved
Value proposition of cloud computing
    Characteristics                                                                    Business benefits
    Dynamic, on-demand, at any scale                                      On-d         Business driven service management
                                                                              e ma
    Shared resources                                                              nd   New levels of economics
    User and programming interface                   le                                Simplified management
                                           Scalab
    for self-service deployment                                                        Improved business agility
                                                 illing
    Non-trivial realiability and QoS   Usage b
                                                                                       Increased flexibility
    Virtualization and automation               Shar
                                                        ed                             Effective & creative service
                                        Uni
    Unified technology stacks               fied                                       deployment
                                                  stac
                                                         ks
    Quickly leverage new technologies                                                  Lower barrier to launch new services
                                                         n
                                        Virtualizatio
    Reduction of energy costs         Pro                                              Improved manageability
                                          gram
    Owned and managed by provider              mat                                     Reallocating resources to innovation
                                                      ic
                                                                                       Usage-based payment

         Combined effect of technologies, economies and new capabilities
6   VISIT 2008   © Fujitsu Siemens Computers 2008   All rights reserved
Clouds are factories for IT services on an industrial scale
                 Own IT                               IaaS cloud                   PaaS cloud      SaaS cloud


                                                     Elastic Compute Cloud (EC2)
                                                     Simple Storage Service (S3)




                                                VMware vCloud


             Application                                Application                 Application
                                                                                                    Application
          Dev’t/Runtime                              Dev’t/Runtime                                 Dev’t/Runtime
                                                                                   Dev’t/Runtime
                                                                                                    Hardware
                 Hardware                               Hardware                    Hardware


     Sharing is achieved through resource virtualization in IaaS, while in
     PaaS/SaaS the applications and databases support multi-tenancy
7   VISIT 2008    © Fujitsu Siemens Computers 2008      All rights reserved
Not all clouds are similar – what do they provide?
    Infrastructure aaS
        Managed infrastructure with virtualized computing, storage and networking services
        Middleware systems for on-demand resource pool and provisioning management
    Platform aaS
        Managed development and runtime platform for web-scale
        services and application components                                 Insert detailed
                                                                            design here...
        Middleware and lifecycle management for development,
        integration and application server deployment
    Software aaS
        Managed multi-tenant web-based business, office or social networking applications
        Application ecosystems and component integration tools
        Subscription management


        The layers being delivered as-a-service allow different flexibility
8   VISIT 2008   © Fujitsu Siemens Computers 2008   All rights reserved
IT benefits of cloud computing
    First order benefits                                                  Second order benefits
        Cost                                                                Virtualization
        Flexibility                                                         Consolidation
        Time-to-market                                                      Service management
        Alignment                                                           Automation
        Energy                                                              High availability
        Service oriented                                                    Disaster recovery
        Market facing IT architecture                                       Live migration changes
                                                                            Cost transparency

      First and second order benefits – all in one!

9   VISIT 2008   © Fujitsu Siemens Computers 2008   All rights reserved
Clouds are being used successfully in Web 2.0 market
     Online services are driving the adoption,
     growth and new business models
                                                                           Invention   Discovery


                                                                                   Idea



                                                                                Innovation

                                                                               Entrepreneurs


                                                                             Commoditization


       A business is not a free spirit like a consumer
10   VISIT 2008   © Fujitsu Siemens Computers 2008   All rights reserved
A dose of reality to turn down the noise level
     Security… sending data outside company firewalls
     Privacy… all logons and identities are remote
     Platform dependency… lock into proprietary stacks
     Reliability… and communication around outages
     Portability… data formats and program calls
     Physical location… many nations’ laws
     Speed.. application latency
     Audit… lack of audit capability and governance
     Integration… with internal IT infrastructure


       Public clouds are not an option for every enterprise
11   VISIT 2008   © Fujitsu Siemens Computers 2008   All rights reserved
“Pure form” cloud computing will be rare among enterprises
         IT will not become 100% as-a-service and not for all

         There is a need for delivery flexibility, project by project
              Products and services
              Packaged solutions
              Managed infrastructure
              Infrastructure-as-a-service

         Customers decide which IT infrastructure and delivery model is best for them
              Depending on their particular needs, means and skills
              Redefining to what depth they consider information technology as their core
              and to what level they want to involve their strategic partners in their IT

      No one infrastructure delivery model would be optimal for all or every time
12   VISIT 2008   © Fujitsu Siemens Computers 2008   All rights reserved
How much multi-tenancy would you tolerate?
     Sharing and multi-tenancy basically means a trade-
     off between
     customer’s sovereignty and costs
        Clouds come with a risk that same resources
        accommodate unanticipated partners & events

     How much multi-tenancy can enterprises and
     public organizations tolerate?
       Shared location? Shared infrastructure?
       Shared operating environment?
       Shared application server? Shared database?
       Shared program calls? Shared database admins?

     Customers want to know what sort of wrappers public clouds are putting
     around their services for things like security and policy enforcements
13   VISIT 2008   © Fujitsu Siemens Computers 2008   All rights reserved
Ground level judgment
     Cloud is a collection of disembodied resources                        Enterprise IT             Public clouds
     and services mediated by cloud provider                               Enterprise data centers    Public clouds provide
                                                                           are evolving to improve    general consumer and
     If IT becomes a borderless utility, it will not                       efficiency                 business services
     matter where your data and programs are                                                          outside the firewall
     stored and executed
     Legal and political issues are tricky – even more
     than with cross-border logistics and taxes
     Clouds are prisoners of local laws, no global
     standards in areas such as privacy                                    IaaS
                                                                            Private clouds for
     Speed and willingness of authorities from                              new delivery models
     different countries to co-operate                                      inside and outside
                                                                            the firewall
     Regulations from several governments forcing
     online firms to retain data

     What about on-premise or private clouds that act as a cloud to multiple
     divisions under the corporate umbrella?
14   VISIT 2008   © Fujitsu Siemens Computers 2008   All rights reserved
Thinking of cloud computing in terms of how, not where
     Cost savings – new yields in                                          Constant application & data availability
     economies of scale
                                                                           Accountable, and policy-based
     Pay for what you use
                                                                           Dynamic provisioning (expand) and
     Resource flexibility                                                  de-provision (shrink) of IT capacity
     Increased speed to market                                             Executing and completing tasks within
                                                                           the acceptable timeframe (SLA)
     Improved service levels and
     quality rules                                                         Shared infrastructure with ability to
                                                                           ensure data is segregated
     Self-service deployment
                                                                           The ability to smack someone on the
     Reduce lock-in and switching costs
                                                                           head when something fails
     Enhanced customer experience

     More rules for sharing, more governance influencing sharing,
     combined with the economics and value of sharing
15   VISIT 2008   © Fujitsu Siemens Computers 2008   All rights reserved
Private cloud computing
       More and more enterprises are expected to
       build private cloud infrastructures to take
       advantage of benefits without the risk
       IT services are offered to a closed network
       of corporate or division offices, and can
       include business partners and value-chain
       entities                                                            “A fundamental message is
       Cloud-like IT infrastructures that operate                          that the future of infrastructure
       behind firewall or use a quarantined partition                      looks a lot like private cloud
       inside a public cloud                                               computing.”
            On-premises clouds                                             Thomas Bittman’s blog,
            Off-premises private clouds                                    Gartner, October 11th, 2008

       Data/applications do not leave the enterprise
     Infrastructure-as-a-service: on-premise or off-premise private clouds
16   VISIT 2008   © Fujitsu Siemens Computers 2008   All rights reserved
Off-premises, off-premises, private and public....

                                                                                                    Capacity
                                             Private cloud                  Private cloud
                    Public                   (off-premise)                  (off-premise)
                    cloud
                                                                                                    Costs
Off-premise
On-premise
                                                                                                    Sharing
                                                                                    Private cloud
     Private cloud                                                                  (on-premise)
     (on-premise)
                                                                                                    Flexibility




      Private clouds come with known trust boundaries, are auditable,
      provide qualified services and policies, are based on SLAs,…
17    VISIT 2008   © Fujitsu Siemens Computers 2008   All rights reserved
Clouds are immensely complex
     The key layers:
       Computing and storage infrastructure                                Application services
       Runtime environment for applications                                Periphery to meet the end-users




         Implementing a cloud service can be like pouring concrete
         into the company
18   VISIT 2008   © Fujitsu Siemens Computers 2008   All rights reserved
From complex to dynamic, service-oriented, and as-a-service
     Traditional                                              Rationalized & dynamic
                                                                                                           New delivery models:
                                                                  SAP                    Backup
                                                                                                           dynamic, efficient,
                                                                                                           responsive, massive
                                                                    Web                                    scalable, rich diversity,
                                                                                      Database
                                                                                                  Office   industrialization,
                                                                             File
                                                                                            BI             managed…
                                                                             server

                                                              Service-oriented                             Cloud (Infrastructure aaS)
     From IT focus on
                                                                  SAP                                        SAP
     technologies and resolving                                   Web                                        Web
     design constraints to                                        File                                       File
                                                                  Database                                   Database
     complete concentration on                                    BI                                         BI
     business services and                                        Office                                     Office
     innovation                                                   Backup                                     Backup




        Dynamic, industrialized, virtualized, automated, managed, scalable,…
19     VISIT 2008   © Fujitsu Siemens Computers 2008   All rights reserved
Infrastructure-as-a-service: clouds to enterprises
     Compelling future                                                     Acquisition model = service based
                                                                             I am interested in results, not how IT is built
         For finished IT services
                                                                           Business model = usage based
         For attached IT services
                                                                             I only want to pay for what I use
         For IT service integration
                                                                           Access model = Intranet or private
                                                                             I can optimize according to core and context,
                                                                             mission-critical and non-critical systems

                                                                           Technical model = dynamic
                                                                             I can scale up or down dynamically, as need arises

                                                                           Delivery model = flexible
                                                                             No single IT delivery model fits all my projects




     Next level in IT efficiency gained by unified technology stacks,
     sharing resources and industrializing services
20   VISIT 2008   © Fujitsu Siemens Computers 2008   All rights reserved
Summary – a next generation service, not a toolkit technology
     Cloud computing will change:
         The way IT is used and delivered
         The ways software is used or licensed
         The ways data centers are built and run
     Enterprises will not be running IT fully off the Internet cloud
     But most enterprises (of all sizes) will come into touch with some form of cloud
     Cloud computing as IaaS will become part of the 21st century IT

                                                                           We aspire to offer most benefits of
                                                                           cloud computing to our customers
                                                                           We do this via our Dynamic Infrastructures:
                                                                           as a product, as a solution, as a service

21   VISIT 2008   © Fujitsu Siemens Computers 2008   All rights reserved
Thank You!

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VISIT2008 Cloud Computing

  • 1. Cloud computing trends: meet the ground Glen Koskela, Director Technology Strategy
  • 2. Trend forecast through 2012: heavy cloud coverage The top IT trend among press, analysts, conferences… Consumers: already big, unnoticed, in public online services 69% of online users are making use of cloud computing $0.06 per session hour $0.10 per The Cloud Wars: $0.15 per CPU hour $100+ billion at stake GB/month Not all enterprises are fully subscribing: constraints vs. benefits Notion of “private clouds” or “on-premises clouds” has begun only recently (together these yielded only 127 Google search hits on Nov 7th, 2008) What is it? What does it do? How to benefit? How it evolves? 2 VISIT 2008 © Fujitsu Siemens Computers 2008 All rights reserved
  • 3. What is cloud computing? What is new and different? A concept with many elements, Dynamic data center some new, some old Service-oriented infrastructure Current state-of-art in the Managed infrastructure evolution and convergence Virtualization of many seemingly Grid computing independent trends Utility computing Outsourcing Decoupling of the source of On-demand computing consumption of IT from the Centralized SaaS architectures source of production Web services Industrialization of IT Commoditization Internet as delivery method Automation Everything in IT can become Social networking affected by as-a-service Proliferation of devices Globally integrated enterprise Much of what was within the corporate boundaries is being increasingly served up from outside 3 VISIT 2008 © Fujitsu Siemens Computers 2008 All rights reserved
  • 4. Need for new concepts: IT is at tipping point Operational issues have Energy issues have data IT costs at break point centers at break point Rising costs of IT operations Rising energy costs Continuous increase in volumes Power and thermal issues 24/7 availability of IT inhibit growth Environmental guidelines Business changes have IT New technologies have resources at break point time-to-market at break point Budgets being cut Unpredictable workloads Difficulty in deploying new services Device diversity, real-time Surge of compliance requirements Rich application capabilities The IT delivery model needs to be transformed 4 VISIT 2008 © Fujitsu Siemens Computers 2008 All rights reserved
  • 5. Long-term trends and ch-ch-ch-changes Physical consolidation Virtualization Dynamic pools Shared resource pools Application consolidation Automation Provisioning Infrastructure-as-a-service Data center consolidation Energy usage Metering Usage based pricing Flexibility/ (business agility) Cloud (as-a-service) Service-oriented Dynamic Rationalized Economies of scale IT infrastructure becomes stateless through technologies and services 5 VISIT 2008 © Fujitsu Siemens Computers 2008 All rights reserved
  • 6. Value proposition of cloud computing Characteristics Business benefits Dynamic, on-demand, at any scale On-d Business driven service management e ma Shared resources nd New levels of economics User and programming interface le Simplified management Scalab for self-service deployment Improved business agility illing Non-trivial realiability and QoS Usage b Increased flexibility Virtualization and automation Shar ed Effective & creative service Uni Unified technology stacks fied deployment stac ks Quickly leverage new technologies Lower barrier to launch new services n Virtualizatio Reduction of energy costs Pro Improved manageability gram Owned and managed by provider mat Reallocating resources to innovation ic Usage-based payment Combined effect of technologies, economies and new capabilities 6 VISIT 2008 © Fujitsu Siemens Computers 2008 All rights reserved
  • 7. Clouds are factories for IT services on an industrial scale Own IT IaaS cloud PaaS cloud SaaS cloud Elastic Compute Cloud (EC2) Simple Storage Service (S3) VMware vCloud Application Application Application Application Dev’t/Runtime Dev’t/Runtime Dev’t/Runtime Dev’t/Runtime Hardware Hardware Hardware Hardware Sharing is achieved through resource virtualization in IaaS, while in PaaS/SaaS the applications and databases support multi-tenancy 7 VISIT 2008 © Fujitsu Siemens Computers 2008 All rights reserved
  • 8. Not all clouds are similar – what do they provide? Infrastructure aaS Managed infrastructure with virtualized computing, storage and networking services Middleware systems for on-demand resource pool and provisioning management Platform aaS Managed development and runtime platform for web-scale services and application components Insert detailed design here... Middleware and lifecycle management for development, integration and application server deployment Software aaS Managed multi-tenant web-based business, office or social networking applications Application ecosystems and component integration tools Subscription management The layers being delivered as-a-service allow different flexibility 8 VISIT 2008 © Fujitsu Siemens Computers 2008 All rights reserved
  • 9. IT benefits of cloud computing First order benefits Second order benefits Cost Virtualization Flexibility Consolidation Time-to-market Service management Alignment Automation Energy High availability Service oriented Disaster recovery Market facing IT architecture Live migration changes Cost transparency First and second order benefits – all in one! 9 VISIT 2008 © Fujitsu Siemens Computers 2008 All rights reserved
  • 10. Clouds are being used successfully in Web 2.0 market Online services are driving the adoption, growth and new business models Invention Discovery Idea Innovation Entrepreneurs Commoditization A business is not a free spirit like a consumer 10 VISIT 2008 © Fujitsu Siemens Computers 2008 All rights reserved
  • 11. A dose of reality to turn down the noise level Security… sending data outside company firewalls Privacy… all logons and identities are remote Platform dependency… lock into proprietary stacks Reliability… and communication around outages Portability… data formats and program calls Physical location… many nations’ laws Speed.. application latency Audit… lack of audit capability and governance Integration… with internal IT infrastructure Public clouds are not an option for every enterprise 11 VISIT 2008 © Fujitsu Siemens Computers 2008 All rights reserved
  • 12. “Pure form” cloud computing will be rare among enterprises IT will not become 100% as-a-service and not for all There is a need for delivery flexibility, project by project Products and services Packaged solutions Managed infrastructure Infrastructure-as-a-service Customers decide which IT infrastructure and delivery model is best for them Depending on their particular needs, means and skills Redefining to what depth they consider information technology as their core and to what level they want to involve their strategic partners in their IT No one infrastructure delivery model would be optimal for all or every time 12 VISIT 2008 © Fujitsu Siemens Computers 2008 All rights reserved
  • 13. How much multi-tenancy would you tolerate? Sharing and multi-tenancy basically means a trade- off between customer’s sovereignty and costs Clouds come with a risk that same resources accommodate unanticipated partners & events How much multi-tenancy can enterprises and public organizations tolerate? Shared location? Shared infrastructure? Shared operating environment? Shared application server? Shared database? Shared program calls? Shared database admins? Customers want to know what sort of wrappers public clouds are putting around their services for things like security and policy enforcements 13 VISIT 2008 © Fujitsu Siemens Computers 2008 All rights reserved
  • 14. Ground level judgment Cloud is a collection of disembodied resources Enterprise IT Public clouds and services mediated by cloud provider Enterprise data centers Public clouds provide are evolving to improve general consumer and If IT becomes a borderless utility, it will not efficiency business services matter where your data and programs are outside the firewall stored and executed Legal and political issues are tricky – even more than with cross-border logistics and taxes Clouds are prisoners of local laws, no global standards in areas such as privacy IaaS Private clouds for Speed and willingness of authorities from new delivery models different countries to co-operate inside and outside the firewall Regulations from several governments forcing online firms to retain data What about on-premise or private clouds that act as a cloud to multiple divisions under the corporate umbrella? 14 VISIT 2008 © Fujitsu Siemens Computers 2008 All rights reserved
  • 15. Thinking of cloud computing in terms of how, not where Cost savings – new yields in Constant application & data availability economies of scale Accountable, and policy-based Pay for what you use Dynamic provisioning (expand) and Resource flexibility de-provision (shrink) of IT capacity Increased speed to market Executing and completing tasks within the acceptable timeframe (SLA) Improved service levels and quality rules Shared infrastructure with ability to ensure data is segregated Self-service deployment The ability to smack someone on the Reduce lock-in and switching costs head when something fails Enhanced customer experience More rules for sharing, more governance influencing sharing, combined with the economics and value of sharing 15 VISIT 2008 © Fujitsu Siemens Computers 2008 All rights reserved
  • 16. Private cloud computing More and more enterprises are expected to build private cloud infrastructures to take advantage of benefits without the risk IT services are offered to a closed network of corporate or division offices, and can include business partners and value-chain entities “A fundamental message is Cloud-like IT infrastructures that operate that the future of infrastructure behind firewall or use a quarantined partition looks a lot like private cloud inside a public cloud computing.” On-premises clouds Thomas Bittman’s blog, Off-premises private clouds Gartner, October 11th, 2008 Data/applications do not leave the enterprise Infrastructure-as-a-service: on-premise or off-premise private clouds 16 VISIT 2008 © Fujitsu Siemens Computers 2008 All rights reserved
  • 17. Off-premises, off-premises, private and public.... Capacity Private cloud Private cloud Public (off-premise) (off-premise) cloud Costs Off-premise On-premise Sharing Private cloud Private cloud (on-premise) (on-premise) Flexibility Private clouds come with known trust boundaries, are auditable, provide qualified services and policies, are based on SLAs,… 17 VISIT 2008 © Fujitsu Siemens Computers 2008 All rights reserved
  • 18. Clouds are immensely complex The key layers: Computing and storage infrastructure Application services Runtime environment for applications Periphery to meet the end-users Implementing a cloud service can be like pouring concrete into the company 18 VISIT 2008 © Fujitsu Siemens Computers 2008 All rights reserved
  • 19. From complex to dynamic, service-oriented, and as-a-service Traditional Rationalized & dynamic New delivery models: SAP Backup dynamic, efficient, responsive, massive Web scalable, rich diversity, Database Office industrialization, File BI managed… server Service-oriented Cloud (Infrastructure aaS) From IT focus on SAP SAP technologies and resolving Web Web design constraints to File File Database Database complete concentration on BI BI business services and Office Office innovation Backup Backup Dynamic, industrialized, virtualized, automated, managed, scalable,… 19 VISIT 2008 © Fujitsu Siemens Computers 2008 All rights reserved
  • 20. Infrastructure-as-a-service: clouds to enterprises Compelling future Acquisition model = service based I am interested in results, not how IT is built For finished IT services Business model = usage based For attached IT services I only want to pay for what I use For IT service integration Access model = Intranet or private I can optimize according to core and context, mission-critical and non-critical systems Technical model = dynamic I can scale up or down dynamically, as need arises Delivery model = flexible No single IT delivery model fits all my projects Next level in IT efficiency gained by unified technology stacks, sharing resources and industrializing services 20 VISIT 2008 © Fujitsu Siemens Computers 2008 All rights reserved
  • 21. Summary – a next generation service, not a toolkit technology Cloud computing will change: The way IT is used and delivered The ways software is used or licensed The ways data centers are built and run Enterprises will not be running IT fully off the Internet cloud But most enterprises (of all sizes) will come into touch with some form of cloud Cloud computing as IaaS will become part of the 21st century IT We aspire to offer most benefits of cloud computing to our customers We do this via our Dynamic Infrastructures: as a product, as a solution, as a service 21 VISIT 2008 © Fujitsu Siemens Computers 2008 All rights reserved