1. 2. Cloud CIO: 3 Private Cloud
Use Case Scenarios
Organizations looking to deploy private clouds must un-
An interactive eGuide derstand where they’re headed. A development cloud is
THE PRIVATE
an appropriate start, but consider these three scenarios
for how use of your cloud will evolve—for better or for
worse, says CIO.com’s Bernard Golden
CLOUD 6. Is Your Private Cloud
Defensive or Responsive?
Companies building private clouds mainly to keep devel-
Today, enterprises in a variety of industries are trying to determine the best use of cloud options opers from going to public clouds are too focused on the
in their organizations. The benefits – reduced cost, greater hardware utilization, scalability, and physical aspects of cloud—and missing the point about
faster time to productivity, just to name a few – are enticing. However, there are concerns about the the operational requirements, says Forrester Research’s
James Staten. Here, he shares five pieces of advice for
known drawbacks to cloud-computing models, specifically security and control, that are making
private cloud success
private cloud models the best choice for many organizations today. Private clouds are emerging as a
way for enterprises to take advantage of many of the benefits of the cloud model, but with less risk.
8. What the ‘Private Cloud’
In this eGuide, Computerworld and sister publications CIO and InfoWorld bring you a collection of Really Means
articles with news, advice, and opinions on moving to private clouds. Read on to gain insight about The definition of the private cloud may be fuzzy, but it’s
some of the effective uses for private cloud architectures, new ways of deploying them, and best all part of the age-old quest for greater efficiency in IT
practices for getting the most out of these computing models.
10. Private Cloud
Build the data center of your dreams
11. Financial IT Spotlight
Turbulence pushing banks into the cloud
13. New Job for Mainframes:
Hosting Private Clouds
Big iron could be perfect for hosting a private cloud, but
Custom publishing from where’s the user provisioning?
COMPUTERWORLD 17. Private Cloud Resources
Sponsored by
Private Cloud Use Defensive or What ‘Private Cloud’ Financial IT Mainframes Hosting
COMPUTERWORLD Case Scenarios Responsive? Really Means Private Cloud Spotlight Private Clouds
Resources 1 of 17
2. Point of View
THE PRIVATE CLOUD An interactive eGuide
Cloud CIO: 3 Private Cloud are the downstream effects of
moving to a private cloud? In
introduces the potential for disrup-
tion and failure. So why insert an
Use Case Scenarios
our work, we run across a num- entire new infrastructure into one in
ber of scenarios, some of which which applications are quite hap-
make sense, some of which don’t pily humming along? Note: This
make sense, and some of which does not imply that existing envi-
Organizations looking to deploy private clouds must understand are incomprehensible. I thought ronments will not have virtualiza-
where they’re headed. A development cloud is an appropriate start, it might be useful to share what tion brought in. One of the most
we see and what we predict are felicitous aspects of virtualization is
but consider these three scenarios for how use of your cloud will some of the ways private clouds that it provides great benefit—cost
evolve -- for better or for worse. By Bernard Golden, CIO will be used by those organiza- reduction via server consolidation—
tions implementing them. without introducing much change
IT IS BY NOW a truism that most ing environment includes the ability mirable and useful in itself, is not A planning assumption that we at the application level.
IT organizations are planning an for IT resource consumers like ap- cloud computing. bring to the table is that no orga-
IT infrastructure strategy that in- plication developers to self-service In talking to a number of in- nization is going to insert a full- 2. Most existing applications
cludes cloud computing and that resource requests, along with au- formed people, it’s clear that pri- blown cloud infrastructure into won’t benefit from being placed
an internal cloud (aka private tomated provisioning (aka orches- vate cloud implementations are their existing production applica- into a cloud computing environ-
cloud) is a fundamental part of tration) of computing resources like moving forward in many organiza- tion environment. The reasons for ment. Most production applica-
that strategy. virtual servers, network connectiv- tions, with RFPs to vendors out with this assumption are the following: tions are written with static topol-
While trying to avoid getting ity, and storage. The mere deploy- an aim of contract award in 2011 ogy and manual administration
sucked into the vortex that is de- ment of virtualization enabling sup- and implementation in 2012. 1. A key principle of CIOs every- assumed, so they can’t take ad-
fining cloud computing, I think it’s port of multiple virtual servers on The question is, how will that where is don’t mess with some- vantage of self-service and au-
safe to say that a cloud comput- a single physical server, while ad- private cloud be used, and what thing that’s in and working. Change tomated elasticity. Therefore,
Sponsored by
Private Cloud Use Defensive or What ‘Private Cloud’ Financial IT Mainframes Hosting
COMPUTERWORLD Case Scenarios Responsive? Really Means Private Cloud Spotlight Private Clouds
Resources 2 of 17
3. Point of View
THE PRIVATE CLOUD An interactive eGuide
inserting a cloud computing in- So, to summarize: putting cloud velopers are pretty expensive em- existing processes (which were, provide a more agile operations
frastructure into the production computing into an existing pro- ployees, and avoiding long waits remember, created to manage environment could be made and
environment is going to provide duction environment is disruptive for resources reduces costs. static topology, inelastic applica- pertinent measures taken.
little improvement for these ap- and expensive, and doesn’t pro- The question is, if an organiza- tions in an often-process heavy The challenge with this scenar-
plications. In any case, the lei- vide many benefits. This should tion’s initial foray into a private ITIL-like environment). io is that it is in conflict with what
surely march of virtualization into explain our assumption that most cloud is aimed at developers, We believe the satisfaction lev- we see as the increasingly com-
production environments should IT organizations will not retrofit what are the subsequent use sce- el to this strategy depends upon mon nature of future applications;
call into question the belief that cloud computing into their pro- narios? In other words, once de- what proportion of newly-devel- that is, the nature of applications
IT organizations are going to, over- duction computing environments. velopers begin using the private oped applications assume and is changing, with more highly vari-
night, disperse cloud computing Given this, many IT organiza- cloud for development (and, of use the elastic automation associ- able workloads, much larger scale,
capabilities throughout their pro- tions are directing their initial course, testing) purposes, what ated with cloud computing. Select- and more complex deployment to-
duction infrastructure. private cloud initiatives at serv- happens? Here are common use ing this approach might depend pologies that are more difficult to
ing developers, which makes a scenarios and their implications: upon organization-specific projec- manage in a manual fashion. In a
3. Cloud computing is expensive lot of sense. Developers are typi- tions of future application elastic- phrase, there is an impedance mis-
and disruptive to IT organizations. cally underserved by existing pro- Scenario One: Agile ity requirements. If the proportion match between the future of ap-
We constantly see organizations cesses, and offering them a self- Development, Static of applications requiring elasticity plications and the operational as-
that underestimate the cost and service option helps productivity Operations is rather low, this scenario might sumptions of this scenario.
change of moving to cloud com- and, crucially, avoids many issues In this scenario, software and QA be perfectly acceptable. For the
puting. Just the fact that a new associated with production pri- engineers are provided a private majority of newly-developed ap- Scenario Two: Agile
term — devops — needed to be vate clouds, like how to integrate cloud for development purposes, plications, static operation tech- Development, Semi-Agile
created to describe how IT has to existing heavyweight processes but when it comes time for pro- niques would be appropriate. For Operations
operate in a cloud environment like ITIL with agile self-service re- duction deployment, the applica- the minority of applications that In this scenario, new applications
should provide a clue about this. source assignment. Moreover, de- tion is operated according to the require elasticity, an exception to are placed into production in an
Sponsored by
Private Cloud Use Defensive or What ‘Private Cloud’ Financial IT Mainframes Hosting
COMPUTERWORLD Case Scenarios Responsive? Really Means Private Cloud Spotlight Private Clouds
Resources 3 of 17
4. Point of View
THE PRIVATE CLOUD An interactive eGuide
operations infrastructure that can tal number of applications. vide a production cloud environ- Scenario Three: Agile to be forwarded to an operation
support elasticity, complex topolo- This is an attractive scenario, in ment well before planning to do Development, Bypassed administrator who would evaluate
gies, and automated administra- that it reduces overall disruption so. This “premature” productiza- Operations the request and, should it be ap-
tion, while the existing applica- and provides a good deployment tion will inevitably cause problems This scenario presents an existen- propriate, would provision the re-
tions continue to operate in the option for cloud-developed and and accelerated catch up. tial challenge to the mainstream in- sources himself and then forward
older, static operations environ- -based applications. It avoids the frastructure operations organization information back to the devel-
ment. One might think of this as challenges associated with the Second, it’s easy to underestimate and, indirectly, a threat to the finan- oper sufficient to begin using the
building an add-on to the existing impedance mismatch of the previ- the change necessary to operate an cial underpinnings of the entire IT or- resource. He really didn’t under-
data center environment, which ous scenario. agile infrastructure. End-to-end au- ganization. In this scenario, develop- stand the difference between true
operates by new rules. Two things to watch out for in tomation carries implications well ers attempt to use the private cloud self-service and email-enabled re-
In a way, this scenario is con- this scenario: beyond installing a cloud software but, for various reasons, find some source requests. I wouldn’t care to
sistent with the history of com- stack and declaring “open for cloud element of the environment unsatis- hear his response to the need for
puting. New computing platforms First, the disconcerting way in business.” Just as it’s traditional that factory and choose to develop or de- self-provisioning elastic applica-
don’t displace what already exists; which applications edge from “de- new platforms accrete around old ploy in a public cloud environment. tions directly provisioning resourc-
the platforms accrete to what’s in velopment” to “production” with- ones, it’s also traditional for IT orga- An example of why this might es in response to system load.
place. What commonly happens out an official recognition or ac- nizations to overemphasize technol- come to pass can be illustrated by This response is typical of orga-
is that most new applications are knowledgement. IT operations may ogy and underrate people and pro- a scenario we ran into recently. In nizations responding to innovative
deployed on the new platform, find itself responsible for applica- cess. The outcome of this situation discussing cloud computing with developments. When confronting a
while existing platforms are lim- tions that it had no idea were go- is that the cloud application will suf- an infrastructure manager, we de- disruptive innovation, organizations
ited to minor upgrades to existing ing to move into production, re- fer many problems when put into scribed the need for resource user commonly attempt to force-fit it into
applications. And, of course, over quiring agile, elastic infrastructure. production as the operations group self service. The manager was fine existing processes and assump-
time the new platform represents That is to say, IT operations may learns on the fly how to manage an with greater agility, he allowed, tions—usually unsuccessfully.
the vast preponderance of the to- find themselves challenged to pro- automated, elastic application. but the request for resources had In this scenario, developers quite
Sponsored by
Private Cloud Use Defensive or What ‘Private Cloud’ Financial IT Mainframes Hosting
COMPUTERWORLD Case Scenarios Responsive? Really Means Private Cloud Spotlight Private Clouds
Resources 4 of 17
5. Point of View
THE PRIVATE CLOUD An interactive eGuide
happily begin to use the private This kind of situation can be resources that expects developers are deployed into public clouds vice, elastic provisioning, and agile
cloud, but, when confronted with blunt or subtle, but, in the end, to justify why they want a server that support low friction interaction. operations fully committed to cloud
unwillingness on the part of opera- falls short of what developers (or storage or whatever). Overall, organizations looking to computing characteristics. Anything
tions to support self-service, ap- want. One of the main points that Putting an unresponsive produc- deploy private clouds should thor- less will, in the end, fall short.
plication elasticity, etc., become we emphasize with our clients is tion infrastructure behind an ag- oughly understand what they’re
dissatisfied with the offering and that cloud computing reduces ile development environment may signing up for. A development cloud Bernard Golden is CEO of consult-
choose to either: (1) deploy the the friction in obtaining and using end up investing in a development is an appropriate start, but is not ing firm HyperStratus, which
application outside of the internal computing resources — discard- cloud that ends up unused. Even sufficient for a long-term plan. It’s specializes in virtualization, cloud
data center; or (2) more worryingly, ing the endless requests, meet- worse, this scenario can hold the inevitable that a development cloud computing and related issues. He
turn their back on the private cloud ings, telephone calls, emails, potential for stranded investment, will be the first step toward imple- is also the author of “Virtualization
and choose to develop and deploy escalations, not to mention the as expensive production environ- menting a larger production environ- for Dummies,” the best-selling
in a public cloud environment. often heavy-handed rationing of ments lie fallow while applications ment capable of supporting self-ser- book on virtualization to date.
Sponsored by
Private Cloud Use Defensive or What ‘Private Cloud’ Financial IT Mainframes Hosting
COMPUTERWORLD Case Scenarios Responsive? Really Means Private Cloud Spotlight Private Clouds
Resources 5 of 17
6. Expert Advice
THE PRIVATE CLOUD An interactive eGuide
Is Your Private Cloud Defensive dustries and geographies. Yet two
characteristics are strong indica-
or Responsive?
tors of the likelihood of building a
private cloud: company size and
growth of the virtualized environ-
ment. It’s no surprise that 60% of
Companies building private clouds mainly to keep developers from going to public clouds are those prioritizing private clouds
are at companies with more than
too focused on the physical aspects of cloud -- and missing the point about the operational
1,000 employees. These large en-
requirements, says Forrester Research’s James Staten. Here, he shares five pieces of advice terprises sink more investment
for private cloud success. By James Staten, CIO into their own data centers, opera-
tions personnel, and IT processes,
A STRONG MINORITY of enter- not the operations — and it’s the traditional IT deployments means terprises their favored way of de- so they have more to lose if the
prise IT shops are prioritizing the operations that make the cloud. faster time-to-market and higher livering cloud value without these business goes to the public cloud.
development of a private cloud, “The Cloud” is no longer an elu- productivity for the business. But, risks is to set up a private cloud. Although the prioritization of
but Forrester surveys suggest sive term that is just entering the consuming public cloud services The prioritization of building private clouds is affecting a wide
these moves will fail. The reason market. Today, enterprises of all still poses major concerns for IT a private cloud grew in 2010 for range of organizations, invest-
lies in the motivation behind these sizes and across all verticals are security and operations managers. 24% of IT decision makers who ments in several key areas differ
efforts and the focus. Most are talking about, and deciding how Security remains the number one view building an internal cloud as for those who are prioritizing ver-
building private clouds to keep to implement cloud strategies. concern among senior IT decision- a high or critical priority. In exam- sus those who are not. Specifi-
their developers from going to the That’s because the promise of in- makers—cited almost twice as of- ining these decision makers, we cally, increased investments are
public cloud and are focused on stant access to a technology ser- ten as the next highest concern, found that the desire to adopt an being made in four infrastructure
the physical aspects of the cloud, vice at a fraction of the cost of maturity. As a result, for many en- internal private cloud crosses in- categories to accommodate the
Sponsored by
Private Cloud Use Defensive or What ‘Private Cloud’ Financial IT Mainframes Hosting
COMPUTERWORLD Case Scenarios Responsive? Really Means Private Cloud Spotlight Private Clouds
Resources 6 of 17
7. Expert Advice
THE PRIVATE CLOUD An interactive eGuide
private cloud option, including the tizing a private cloud, but just do is private cloud desires simply just happen if capacity is avail- portant not to think that build-
overall data center budget and not have the operational maturity won’t be met. It’s time to find out able. This may not provide the 15 ing a private cloud will suddenly
consulting and outsourcing ser- to pull it off, here are a few rec- whos holding back this effort and minute timelines that developers squash a company’s interest in
vices. But, these same organiza- ommendations to get ahead of why. We’ve found that virtual en- are accustomed to with public public clouds. That’s because the
tions are still not investing enough the problem: vironment administrators are of- clouds solutions, but it greatly im- elasticity, scale, and economics
in key operational requirements ten trying to protect their jobs and proves the experience with I&O. are superior in public cloud offer-
that are essential to guarantee- 1. Set the right expecta- consequently don’t share their ings. My advice: don’t fight it. Em-
ing the success of a private cloud. tions with your executives. knowledge. These workers need 4. Seek a hosted cloud brace public clouds as part of the
For example, automation and self- If the company is expecting a pri- to be shown a path of career ad- provider if it’s too soon to strategy and draw lines of distinc-
service portals are two major fac- vate cloud to be up and running vancement as they move to a automate and empower. tion between what is best for the
tors contributing to a well-oiled in the next year, the infrastructure higher value role in private cloud If it’s a struggle to standardize public cloud and what should re-
private cloud. Yet, 44% of those and operations team may have operations. For example, they and automate virtualized infra- main in-house. Force-fitting every
prioritizing private clouds have been sold up the river. Implement- can improve the use of the virtu- structure, or there’s reluctance workload into a private cloud, no
no plans to invest in automation ing a private cloud isn’t as simple al environment and managing the to empower developers, you sim- matter how capable the solution
software for their virtualized envi- as the vendors say, and simply pool, not the individual VMs. ply aren’t ready to build or oper- is, will ultimately be a disservice.
ronment. And only 11% of cloud saying the virtual server environ- ate a private cloud yourself. If this
builders have a self-service por- ment is a private cloud probably 3. Realize a self-service is the case, refocus efforts on a James Staten is Vice President
tal implemented today, while 62% won’t fit the bill either. portal doesn’t mean loss service provider who can offer a and Principal Analyst at Forrester
are interested, but holding off. It’s of control. There should be an hosted private cloud solution. Research, serving infrastructure
going to be very difficult to lure 2. Standardize and auto- approval workflow between the re- and operations professionals.
developers away from the public mate the virtual environ- quest and the deployment. But, 5. Map workloads to the
cloud without these core features. ment. Without aggressively pur- once the approval has been re- appropriate private and
If you’re one of the 24% priori- suing these steps, the bottom line ceived, the deployment should public cloud options. It’s im-
Sponsored by
Private Cloud Use Defensive or What ‘Private Cloud’ Financial IT Mainframes Hosting
COMPUTERWORLD Case Scenarios Responsive? Really Means Private Cloud Spotlight Private Clouds
Resources 7 of 17
8. Opinion
THE PRIVATE CLOUD An interactive eGuide
What the ‘Private Cloud’ Really Means
ago with its WebSphere Cloud-
The definition of the private cloud may be fuzzy, but it’s all part of the age-old Burst Appliance , which is basi-
quest for greater efficiency in IT By Eric Knorr, InfoWorld cally a blade server preconfigured
for Java dev and test that lets de-
CLOUD COMPUTING has two turning to an Internet-based ser- mins, and live happily ever af- we can see the real cost of IT!), velopers self-provision resources
distinctly different meanings. vice. The idea is that you get all ter with vastly reduced costs. Not and identity-based security helps through a Web interface, with me-
The first is simple: The use of any the scalability, metering, and even the goofiest know-nothing ensure only authorized people get tering of those resources built in.
commercial service delivered over time-to-market benefits of a pub- believes that one anymore. access to the infrastructure and HP jumped into the private
the Internet in real time, from Am- lic cloud service without ceding Yet, despite natural skepticism, application resources they need. cloud feet first with its CloudStart
azon’s EC2 to software as a ser- control, security, and recurring the private cloud appears to be Predictably, no early private solution, which combines hard-
vice offered by the likes of Sales- costs to a service provider. taking shape. The technologies cloud adopters (none that I’ve ware (HP BladeSystem Matrix),
force or Google. I’ve ridiculed the private cloud underlying it are pretty obvious, heard of, anyway) have made the software (HP Cloud Service Auto-
The second meaning of cloud in the past, for two reasons. First, beginning with virtualization (for quixotic attempt to turn their en- mation), and professional servic-
computing describes the archi- because all kinds of existing tech- easy scalability, flexible resource tire infrastructure into a private es (HP Cloud Consulting) to yield
tecture and technologies neces- nologies and approaches can be management, and maximum cloud. Instead, they have identi- private cloud deployments with-
sary to provide cloud services. grandfathered into the definition. hardware utilization) and data fied certain areas where the cloud in 30 days. Rather than dev and
The hot trend of the moment is And second, because it smacks center automation (mainly for au- model makes sense, such as test, HP is focusing on delivering
the so-called private cloud, where of the mythical “lights out” data to-provisioning of physical hosts). dev and test, a low-risk use case business applications as private
companies in effect “try cloud center, where you roll out a bunch Chargeback metering keeps busi- we’ve heard about for awhile. IBM cloud “services,” from Microsoft
computing at home” instead of of automation, lay off your ad- ness management happy (look, ventured into this area over a year Exchange to Oracle PeopleSoft to
Sponsored by
Private Cloud Use Defensive or What ‘Private Cloud’ Financial IT Mainframes Hosting
COMPUTERWORLD Case Scenarios Responsive? Really Means Private Cloud Spotlight Private Clouds
Resources 8 of 17
9. Opinion
THE PRIVATE CLOUD An interactive eGuide
SAP Business Objects. back, and so on. goods or services, partner clouds er. On the other hand, one of the on top of pooled, well-managed
You can argue, of course, that A multipurpose appliance is one actually deliver services. most exciting use cases for the virtual resources has legs, be-
this is just another prepackaged way to skin the private cloud. But So on the one hand, the pri- private cloud is the ability for en- cause it has the potential to take
deal of the type consultancies if you ask me, the most interesting vate cloud is just another step to- terprises to establish quasi-pub- a big chunk of cost and menial
have been offering for years. The emerging use case for the private ward the commodification of IT, lic clouds for partners, which may labor out of the IT equation. The
main difference is that so much cloud is what you might call the where internal customers pick accelerate business-to-business e- lights in the data center will never
cloudy stuff comes in the big “partner cloud.” Just as a decade from a menu of metered services commerce in unanticipated ways. go out. The drive for greater effi-
honking blade server package— ago companies began offering Web across a virtualized infrastructure, Without question, the private ciency, though, has had a dozen
virtual machine management, portals for their customers and rather than specifying the nth re- cloud comes with a large dose of names in the history of IT, and the
auto-provisioning, virtualization- partners, with Web forms for man- quirement for custom deploy- hogwash. Nonetheless, the model private cloud just happens to be
based disaster recovery, charge- aging accounts and ordering new ments that tie up resources forev- of providing commodity services the latest one. •
Sponsored by
Private Cloud Use Defensive or What ‘Private Cloud’ Financial IT Mainframes Hosting
COMPUTERWORLD Case Scenarios Responsive? Really Means Private Cloud Spotlight Private Clouds
Resources 9 of 17
10. Opinion
THE PRIVATE CLOUD An interactive eGuide
Private
If you’re a CIO with a data center agement software. VMware, old goals: Consolidate workloads
to run, that has to make you think. Microsoft, the OpenStack open on a shared infrastructure to in-
Assuming you’re not ready to en- source project, and many others crease utilization and lower costs,
Cloud
trust your company’s crown jewels are building cloud-oriented au- while taking increasing advan-
to the public cloud, couldn’t you tomation and controls on top of tage of virtualization to respond
satisfy IT requests faster internal- today’s virtualization platforms. more quickly to business needs.
ly by borrowing from the Amazon Depending on the number and Someday, either through propri-
playbook? Standardize on com- sophistication of your users, you etary links or open APIs, your pri-
Build the data center of your dreams modity servers and storage. Con- may not need or want elabo- vate cloud may integrate with one
By Doug Dineley, InfoWorld nect them using a converged IP rate self-service and chargeback or more public clouds, allowing
network infrastructure. Layer on mechanisms. Your on-demand re- you to migrate or extend work-
IF YOU BUILD IT, they will come” hours, hundreds of developers virtualization to support resource source pool might exist only to loads in ways that make business
may be a line from a baseball had jumped at the chance to spin pooling, isolated multitenancy, au- serve other IT groups within the sense. In the meantime, building
fantasy, but it describes what re- up some servers simply by open- tomated provisioning, and dynam- company, as a shared platform a fast and flexible private cloud
ally happened in the world of ing their browsers and typing in ic scaling and contraction. Provide for batch processing or short-term may be the only way to discour-
cloud computing. One late sum- their credit card numbers. Today, a Web front end and workflow en- projects or to allow your develop- age the people you serve—be they
mer day in 2006, online book- Amazon’s Elastic Compute Cloud gine that allows your “customers” ment and test teams to do their developers, marketing managers,
seller Amazon.com quietly made is the foundation for countless to serve themselves, and bill them thing without burdening server, or entire business units -- from
a portion of its excess data cen- tech startups, and Amazon counts each month for what they use. storage, and network admins. taking their projects to Amazon
ter capacity available to curious its business customers in the hun- Unlike Amazon, you don’t need Ultimately, “private cloud” is EC2 or some other cloud they can
developers over the Web. Within dreds of thousands. to develop your own cloud man- just a new name for the same open in their browsers.•
Sponsored by
Private Cloud Use Defensive or What ‘Private Cloud’ Financial IT Mainframes Hosting
COMPUTERWORLD Case Scenarios Responsive? Really Means Private Cloud Spotlight Private Clouds
Resources 10 of 17
11. Industry Perspective
THE PRIVATE CLOUD An interactive eGuide
Financial IT Spotlight
tional IT model and even the vir- or scale down and then allocate
Turbulence pushing banks into the cloud By Dan Morris, Computerworld tualized model both lock in ad- costs appropriately.
ditional fixed costs (data center Every server installation into a
WE ALL KNOW that the old busi- better tailoring of products Virtualized Computing v. space, server infrastructure, and data centre, whether it is a tradi-
ness model for investment bank- to customer needs Cloud Computing permanent staff). IT needs to give tional physical design or it sup-
ing technology doesn’t work and • Mobile banking Efforts to reduce costs in the ar- the company CFO flexibility—this ports a virtual environment, com-
this is driving bank technology eas of data center leases, power, is essentially a lever to adjust IT mits the bank to power costs,
departments everywhere to cut So how can an IT manager re- support, hardware procurement costs as part of the arsenal of additional data centre floor
costs. However I was struck by a duce shared costs in 2011 but en- and IT operations have typically protecting the business over the space—this is in addition to the
recent special report in The Econ- able business expansion in 2012? focused on the virtualization of long term. capital outlay costs from purchas-
omist which outlines that, while And what will the new trend be in server infrastructure. The result ing the server itself. Since cloud
investment banks are shrinking, 2013? Unless you are better at has been to reduce both variable Give the CFO a Lever computing solutions are based on
their retail arms (Citibank, HSBC, predicting the future than I am, this and fixed costs, however the vir- The CFO would much rather have cpu cycle or per-user consump-
Santander, etc.) are growing due is an impossible task. If outright tualized computing model is still flexibility built into the business tion, they can be scaled based
to changes in technology. The key cutting services is not an option, based upon long term fixed costs. which is what cloud computing of- upon the business demand—users
trends they found were: then in these challenging times These costs don’t decrease if the fers. The cloud shifts the mix of can be added or removed as the
the best option is to build flexibility business model changes. costs from fixed to variable which business grows or shrinks; and
• Improved services through into your operating budget, which An external cloud solution can provides him that control. Specifi- the same goes for CPU usage.
standardized technology is why banks and financial institu- offer expansion and contraction cally, he is looking for agility from There are three primary risks
• Data mining which allows tions are moving to the cloud. of variable costs whereas a tradi- IT—the ability to quickly scale up with this approach. The first is
Sponsored by
Private Cloud Use Defensive or What ‘Private Cloud’ Financial IT Mainframes Hosting
COMPUTERWORLD Case Scenarios Responsive? Really Means Private Cloud Spotlight Private Clouds
Resources 11 of 17
12. Industry Perspective
THE PRIVATE CLOUD An interactive eGuide
that variable costs can be more lic cloud solution, however with Moving Forward of cloud computing, organi- charge back model to sup-
expensive than fixed costs in the a good cross-charging model it • Look at the current IT oper- zations need to appreciate port the strategy.
long term. This comes down to a is still possible to assign variable ations to assess and iden- data security risks and un-
case-by-case analysis. However in costs to the respective business. tify systems that would be derstand regulatory trends. In summary, banking technol-
the current dynamic environment, Third, regulatory concerns regard- excellent candidates to be This impacts your system ogy organizations need to think
banks are typically willing to pay a ing data security in the cloud re- migrated over to the cloud. choice that could be allowed more like a bank—our internal
bit more for that added flexibility. mains. This drives many organiza- Systems that are deemed to reside in the cloud. customers and the CFO will ap-
The second risk is vendor lock- tions to build private. Although this non-sensitive and non- • Develop your IT team to preciate the benefits.
in which drives banks to cloud so- is arguably a lesser cousin of the transactional are low risk think and embrace a cloud
lutions that are open. An alterna- public cloud in terms of cost man- candidates. strategy for your organiza- Dan Morris is a Principal Consultant
tive solution is for banks to build agement, it is a good solution that • Understand the risks of tion ranging from private to and head of the Project Manage-
private clouds which are more is superior to the conventional fixed cloud computing. Despite public clouds. Most criti- ment Practice for ITPM Consulting.
capital cost intensive than a pub- cost, single IT cost centre approach. the significant advantages cally, work out an effective Dan lives in Singapore.
Sponsored by
Private Cloud Use Defensive or What ‘Private Cloud’ Financial IT Mainframes Hosting
COMPUTERWORLD Case Scenarios Responsive? Really Means Private Cloud Spotlight Private Clouds
Resources 12 of 17
13. News Analysis
THE PRIVATE CLOUD An interactive eGuide
New Job for Mainframes: Hosting Private Clouds
of their future cloud plans. earlier, once IBM added Linux,
Big iron could be perfect for hosting a private cloud, but And IBM has been promoting you could run virtual x86 servers
where’s the user provisioning? Tam Harbert, Computerworld mainframes as cloud platforms on a mainframe.
for several years. The compa- Over the past several years,
MENTION CLOUD COMPUTING to Of course, Toigo’s isn’t the only It’s also one of the reasons why ny’s introduction last year of the some organizations have done
a mainframe professional, and he’s definition of what constitutes a most cloud computing today runs zEnterprise, which gives organi- just that, consolidating and vir-
likely to roll his eyes. Cloud is just cloud. Most experts say that a key on x86-based distributed archi- zations the option of combining tualizing x86 servers using Linux
a much-hyped new name for what attribute of the cloud is that the dy- tectures, not mainframes. Other mainframe and distributed com- on the mainframe. Once you start
mainframes have done for years, he’ll namic provisioning is self-service— reasons: Mainframe hardware is puting platforms under an umbrel- doing that, you have the basis for
say. “A mainframe is a cloud,” con- that is, at the user’s demand. expensive, licensing and software la of common management, is a a private cloud.
tends Jon Toigo, CEO of Toigo Part- But the controlled environment costs tend to be high, and there key part of IBM’s strategy to make “You have this incredibly scal-
ners International, a data manage- of the mainframe, which is the is a shortage of mainframe skills. mainframes a part of the cloud, able server that’s very strong in
ment consultancy in Dunedin, Fla. basis for much of its security, tra- Nevertheless, mainframe ven- say analysts. transaction management,” says Ju-
If you, like Toigo, define a cloud ditionally requires an administra- dors contend that many compa- The company set the stage 10 dith Hurwitz, president and CEO of
as a resource that can be dy- tor to provision computing power nies want to use their big iron for years ago when it gave all of its Hurwitz & Associates, an IT consul-
namically provisioned and made for specific tasks. That’s why the cloud computing. In a CA Tech- mainframes, starting with zSeries tancy in Needham, Mass. “Here’s
available within a company with mainframe has a reputation as nologies-sponsored survey of 200 S/390, the ability to run Linux. this platform that has scalability
security and good management old technology that operates un- U.S. mainframe executives last While mainframes had been vir- and partitioning built in at its core.”
controls, “then all of that exists al- der an outdated IT paradigm of fall, 73% of the respondents said tualizing since the introduction of Plus, the mainframe’s stron-
ready in a mainframe,” he says. command and control. that their mainframes were a part the VM operating system 30 years gest assets—reliability, availability,
Sponsored by
Private Cloud Use Defensive or What ‘Private Cloud’ Financial IT Mainframes Hosting
COMPUTERWORLD Case Scenarios Responsive? Really Means Private Cloud Spotlight Private Clouds
Resources 13 of 17
14. News Analysis
THE PRIVATE CLOUD An interactive eGuide
manageability and security—are tural, not technological. Compa- ing in mainframes either by using anybody in IT -- that I just have to age,” says Mullen.
the very characteristics that com- nies could enable self-provision- IBM’s Tivoli Service Automation point and click to get my service,” But it’s hard to find an organi-
panies are most concerned about Manager or through custom devel- Mullen says. But in every cloud zation that’s using a mainframe
as they consider rolling out ma- opment, he says. scenario, he adds, there’s some in a self-provisioned cloud com-
jor business applications in the Cloud And yet he acknowledges that kind of approval process—a way puting system. Some analysts
cloud, she says. Nirvana such implementations would still to prioritize the requests—even say the talk of the mainframe as
depend on the IT department—us- though that process may not “re- cloud is just hype. The technology
The Sticking Point: The five characteristics of ers wouldn’t have full self-service quire human eyes.” may indeed exist, but the ques-
Provisioning a private cloud: autonomy. Specifically, mainframe As for the licensing costs, Mul- tion is whether companies are ac-
But that lack of support for self-pro- 1. Scalable: High levels of systems with self-provisioning len says that IBM’s current gener- tually using it, says Bill Claybrook,
visioning is glaring. “The mainframe utilization (e.g., through vir- options would require a user to ation, System z, has a little-used president of New River Marketing
is very well controlled in most orga- tualization), with large, ma- submit a request by email, and “on-off” feature, whereby main- Research in Concord, Mass. “If
nizations, often to the point where ture data centers. IT would have to approve the re- frame administrators can turn a they are not automating things, if
it’s locked in a room and people 2. Accessible: Users can pro- quest before the resources were processor core on for a limited they don’t have a self-service por-
vision resources on their own.
can’t access it,” says Julie Craig, provisioned, Mullen explains. This time, paying short-term day rates tal, then it’s not a cloud architec-
3. Elastic: Appearance of
an analyst at Enterprise Manage- reflects the “old habits” of the for IBM software rather than buy- ture; it’s just a virtualized environ-
infinite capacity on demand.
ment Associates. “[Mainframe ven- 4. Shared: Workloads are mul-
mainframe world, he says. But he ing an expensive annual license ment,” he says.
dors] are going to have to do some tiplexed; capacity is pooled. also notes that any kind of cloud based on the number of proces- One reason why it’s hard to
developing to allow the self-service 5. Metered consumption: implementation, including those sor cores. “We are looking at tak- find a self-provisioned mainframe-
features of the cloud.” Ability to pay for use with on distributed systems, would in- ing advantage of this infrastruc- based cloud may be because
Reed Mullen, IBM’s System z no commitment. clude an approval process. ture to make it even more suitable we’re still in the early days of
cloud computing leader, says that “I know the perception is that for a cloud environment where cloud computing. “There is incon-
Source: Corporate Executive Board’s Infrastructure
the lack of self-provisioning is cul- Executive Council, Arlington, Va. the user doesn’t have to bother there is a lot of unpredictable us- gruity between what’s out there in
Sponsored by
Private Cloud Use Defensive or What ‘Private Cloud’ Financial IT Mainframes Hosting
COMPUTERWORLD Case Scenarios Responsive? Really Means Private Cloud Spotlight Private Clouds
Resources 14 of 17
15. News Analysis
THE PRIVATE CLOUD An interactive eGuide
cloud today and what these big cloud infrastructure in mainframe years, and it helped IBM develop not only avoids having to pay extra the student could just order it, it
mainframes do,” says Phil Murphy, environments today,” he says. and roll out System z Linux. for each application it adds to the would come down to the same
an analyst at Forrester Research. But as cloud computing ma- Marist has rewritten many x86- mainframe, but also benefits from auto-provisioning routine,” he
Business units might use a tures and as new models of main- based applications to run on increased utilization of the main- says. “We do it more explicitly be-
credit card to buy some extra frames begin to offer more com- Linux on its two System z main- frame, resulting in a very good re- cause it’s an academic institution.
compute cycles for a one-time puting power at lower costs than frames. The college runs 80 Linux turn on assets, says Thirsk. He The faculty decide what resources
project, for example, but most they do today, more companies servers, mostly handling adminis- calls Marist’s setup a cloud. get used by students, depending
companies wouldn’t run mission- will experiment with the main- trative tasks, on one mainframe, Skeptics would say it’s not a on their courses.”
critical transaction-processing ap- frame-based cloud. Hurwitz, for and it has more than 600 Linux cloud, because it has no user pro- Marist has advantages that
plications in the cloud. one, says many of her clients are servers running academic appli- visioning. But there is some provi- make building a mainframe-based
The one cloud scenario that in- looking into it, although none are cations on the other. sioning going on: When students cloud easier. It gets an academ-
cludes self-provisioning is the mod- ready to talk about it publicly. The college runs other applica- enroll to study computer science, ic discount on the mainframes,
el used by global outsourcing com- “It’s something we’re going to see tions on an IBM System p mid- for example, they are automatical- although the price breaks aren’t
panies, where far-flung developers a lot more of,” she predicts. range computer and IBM blades ly provisioned with a mainframe any larger than those available
have the ability to automatically as well. But the mainframes are partition, Thirsk says. And when to other universities, says Thirsk.
set up their own testing and de- The Very Early Adopter “the real engine,” says Bill Thirsk, they leave the school, he adds, And thanks to an IBM-sponsored
velopment platforms. Those aren’t Marist College is a poster child for Marist’s CIO. “that’s sucked back into the fold mainframe academic program at
all mainframe-based, but Murphy IBM mainframes. The college is Marist is getting big cost ben- and re-allocated automatically.” the college, Marist has a built-in,
thinks some of them must be. right down the road from an IBM efits from virtualizing on the main- Though critics might disagree, cheap source of IT labor with main-
Mullen agrees that the offshoring mainframe manufacturing plant in frame. The college avoids purchas- Thirsk says the lack of user provi- frame and System z Linux skills.
model is a good example. A plat- Poughkeepsie, N.Y. Marist has had ing extra server hardware, plus sioning isn’t important. “Where one CIO might have to
form-as-a-service setup like that “is a research-and-development part- it saves on space, power and IT “The fact is that if you wanted hire very expensive professionals
perhaps the dominant usage of a nership with IBM for more than 20 staff to manage the data center. It to change the policy [to] where to run their data center, I have an
Sponsored by
Private Cloud Use Defensive or What ‘Private Cloud’ Financial IT Mainframes Hosting
COMPUTERWORLD Case Scenarios Responsive? Really Means Private Cloud Spotlight Private Clouds
Resources 15 of 17
16. News Analysis
THE PRIVATE CLOUD An interactive eGuide
entire internship program, and my an interest in Marist’s comput- meet that load: with a mainframe.” justed its pricing structure -- all you’ll start seeing the mainframe
labor’s fairly inexpensive,” Thirsk ing environment. He notes that he Along with several concurrent moves to make the mainframe viewed in a different way,” says
notes. “I only have three profes- has hosted lots of visitors eager to developments, zEnterprise could more cloud-friendly, she says. Hurwitz. As mainframes begin to
sionals to supervise.” learn what the college is doing, in- make the mainframe into a true Eustis thinks that IBM now has run more of the same software as
Marist’s cloud is starting to get cluding representatives from 21 cloud platform, says Susan Eus- all the pieces in place to enable other high-end servers and gain
some attention. “Four years ago, companies and several universi- tis, president of WinterGreen Re- business units to self-provision a expanded service-management
when I started talking about this, ties last year. “We’re talking to a search in Lexington, Mass. Just mainframe-based cloud. capabilities, “people are going to
everybody looked at me like I was college in the Middle East that has in the past several months, she At the very least, zEnterprise see it as the high end of the serv-
crazy,” Thirsk says. But as the years over 200,000 students,” Thirsk says, IBM has improved Web- could change the traditional think- er market as opposed to a world
have passed, others have taken says. “There’s only one way to Sphere, improved z/VM and ad- ing about mainframes. “I think unto itself.”•
Sponsored by
Private Cloud Use Defensive or What ‘Private Cloud’ Financial IT Mainframes Hosting
COMPUTERWORLD Case Scenarios Responsive? Really Means Private Cloud Spotlight Private Clouds
Resources 16 of 17
17. Resources
THE PRIVATE CLOUD An interactive eGuide
VIDEO DIAGRAM DATA SHEET WHITE PAPER WHITE PAPER
Teradata Active Teradata ADW Teradata Stretch Your Cloud Computing
Data Warehouse Private Cloud Database 14 System Models for Data
Private Cloud Infographic Datasheet Warehousing
Instantly and efficiently gain insights. See all the benefits the Teradata As the high performing analytical engine Paul Barsch explains how corpora- Get the best resource utilization
Benefit from the best resource utili- Active Data Warehouse Private that powers all of Teradata’s purpose- tions can mitigate risk and meet now. Analyst Mark Madsen explores
zation. Migrate underutilized servers Cloud can provide. built platform components, Teradata dynamic business needs with cloud computing concepts and how
and storage onto a single Teradata Database 14 helps you create a consol- Teradata Active Data Warehouse database workloads fit within cloud
Read now
ADW Private Cloud, reducing costs— idated data environment that gives you Private Cloud. infrastructures.
while increasing utilization of IT a single source for enterprise-wide Read now Read now
resources. Gain efficiencies, reduce decision making. Learn why Teradata
software licenses and save sacred Database is the right data warehouse
IT dollars. appliance and enterprise data ware-
Watch now house choice.
Read now
Sponsored by
Private Cloud Use Defensive or What ‘Private Cloud’ Financial IT Mainframes Hosting
COMPUTERWORLD Case Scenarios Responsive? Really Means Private Cloud Spotlight Private Clouds
Resources 17 of 17