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Exploring Cloud Computing Options for
Data Warehousing
July 26, 2012
Mark Madsen
@markmadsen
www.ThirdNature.net
Cloud Computing
" a model for enabling ubiquitous convenient on …a model for enabling ubiquitous, convenient, on‐
demand network access to a shared pool of configurable 
computing resources (e g networks servers storagecomputing resources (e.g., networks, servers, storage, 
applications, and services) that can be rapidly 
provisioned and released with minimal managementprovisioned and released with minimal management 
effort or service provider interaction." 
http://csrc nist gov/publications/nistpubs/800-145/SP800-145 pdfhttp://csrc.nist.gov/publications/nistpubs/800 145/SP800 145.pdf
What people see: seemingly infinite resource to apply to 
performance problems on short notice and at low cost
Generators: Expensive Product
Generators: Commodity Product
Generators as a Service: Electricity
The Natural Process of Commoditization
Simon Wardley, A Lifecycle Approach to Cloud Computing
Managing Hardware Resources
Systems are sized for the peak workload, with the 
expectation that it will fluctuate.
Capacity
Demand
Resources
Time
Idle resources = low utilizations = money wastedIdle resources   low utilizations   money wasted
CapacityCapacity
Idle resources
Demand
Resources
Time
Not enough resource is (much) worse than too much.
Capacity
Demand
Capac ty
Resources
Time
Maintaining capacity just above the peak asMaintaining capacity just above the peak as 
workloads increase is the art of capacity planning.
One problem is the large step when upgrading toOne problem is the large step when upgrading to 
more resources, equating to a large capital cost.
CapacityCapacity
Demand
Resources
e a d
Time
Great performance after an upgrade, badGreat performance after an upgrade, bad 
performance at year‐end before the next upgrade.
A steady decline can be worse for user perceptionA steady decline can be worse for user perception 
than constant mediocre performance.
Capacityp y
Idle
Demand
Resources
Time
What everyone would like: elastic capacity
Pay for the resources you use when you use them,Pay for the resources you use when you use them, 
not up front for the entire system that supplies them. 
Just like electricityJust like electricity.
Capacityp y
Resources
D d
Time
Demand
Time
Five Key Cloud Characteristics
1. On‐demand self‐service
2. Network accessibility
3. Resource pooling
4 Measured service4. Measured service
5. Elasticityy
Cloud Architecture
Started with virtual machines
M M M M MMem Mem Mem Mem Mem
Lots of servers, lots of virtual 
nodes. But in public clouds:
CPU
Disk
CPU
Disk
CPU
Disk
CPU
Disk
CPU
Disk
• Storage can, often is separated
• VMs don’t run across nodesDisk Disk Disk Disk Disk
• Great for OLTP, not so much for BI
• Implies new software architectures
Memory
p
Mem
CPU
Disk
Mem
CPU
Disk
Mem
CPU
Disk
Mem
CPU
Disk
Mem
CPU
Disk
Mem
CPU
Disk
Mem
CPU
Disk
Mem
CPU
Disk
Mem
CPU
Disk
Mem
CPU
Disk
Mem
CPU
Disk
Mem
CPU
Disk
Mem
CPU
Disk
Mem
CPU
Disk
Mem
CPU
Disk
CPUs
Memory
CPUs
Memory
CPUs
Memory
CPUs
Shared disk Shared disk Shared disk Shared disk
Database Architecture and the Cloud
Virtualizing on a single server makes 
no sense for a database that needs 
If your server hardware 
environment looks like this:
the full resources.
then it’s probably good for 
Mem
CPU
Disk
Mem
CPU
Disk
Mem
CPU
Disk
Mem
CPU
Disk
Mem
CPU
Disk
Mem
CPU
Disk
Mem
CPU
Disk
Mem
CPU
Disk
Mem
CPU
Disk
Mem
CPU
Disk
Mem
CPU
Disk
Mem
CPU
Disk
Mem
CPU
Disk
Mem
CPU
Disk
Mem
CPU
Disk
Mem
CPU
Mem
CPU
Mem
CPU
Mem
CPU
Mem
CPU
p y g
lightweight transaction 
processing, simple storage and 
i l d l
Disk Disk Disk Disk Disk
retrieval, procedural 
computations on data.
Memory
If you want to use it for a data 
warehouse, you need:
CPUs
Shared disk
• A shared‐nothing database
• A proper storage architecture
• D i li i• Dynamic licensing
Three Models of Deployment
2 Leased / hosted2. Leased / hosted
private cloud
1. Public cloud
3. Private cloud
Benefits and Rationale
Wh did / id i t th l d?Why did you / are you considering a move to the cloud?
Two primary reasons:
▪ Cost reduction
▪ Reduced time to value
47%
50%
Hardware savings
Pay only for what we use
42%
44%
46%
Lower outside maintenance costs
Lower labor costs
Software license savings Cost reduction
40%
40%
42%
Able to take advantage of latest functionality
Reduce IT support needs
Lower outside maintenance costs
39%
39%
39%
Able to scale IT resources to meet needs
Relieve pressure on internal resources
Rapid deployment
Reduce time to value
39%Resolve problems related to updating/upgrading
IBM global survey of IT and line-of-business decision makers
Unexpected Benefits
Speed to deploy:
▪ opex vs capex means faster approvals and 
less planningless planning
▪ Provision on‐demand means ability to do all 
those small projects that needed resourcesthose small projects that needed resources 
and staff to set up
Performance management:
▪ Resource‐oriented fixes done in minutes
▪ Instead of static resources and fluctuations 
in performance, set static SLAs and fluctuate 
the resources
Administration:Administration:
▪ No more hardware or operating system 
upgrades to deal withupgrades to deal with
Public Cloud Challenges
1. Multi‐tenant servers and 
unpredictable I/O performance
2. Legal problems:
▪ Data co‐mingling in multi‐tenant 
databases
▪ Data locality and national laws
3. Cloud compatibility for data 
integration and data management 
( )tools (environment, data movement)
4. Security requirements
When these are a concern, private clouds 
may be the better option today.
What are manager preferences?
Prefernottouse cloud
21%
44%
35%
Data warehouses or data 
marts
Prefer not to use cloud
Private cloud preference
Public cloud preference
9%
52%
39%
Data mining, text mining, or 
other analytics
9%
y
IBM global survey of IT and line-of-business decision makers
Comparison of Models
New and growing use cases drive the need to expand
The use cases are now interactive applications, lower latency 
data, complex analytics and rapidly growing data volumes.
Image Attributions
Thanks to the people who supplied the images used in this presentation:
Commoditization diagram – from A Lifecycle Approach to Cloud Computing, © Simon WardleyCommoditization diagram  from A Lifecycle Approach to Cloud Computing, © Simon Wardley
tesla coil train ‐ http://www.flickr.com/photos/winterhalter/27364687
Amazon Virtual Private Cloud diagram‐ © Amazon, Inc..
caged_tower_melbourne.jpg ‐ http://www.flickr.com/photos/vermininc/2227512763
About the Presenter
Mark Madsen is president of Third
Nature, a technology research and
consulting firm focused on businessconsulting firm focused on business
intelligence, analytics and
information management. Mark is an
award-winning author architect andaward winning author, architect and
former CTO whose work has been
featured in numerous industry
publications. During his career Markpublications. During his career Mark
received awards from the American
Productivity & Quality Center, TDWI,
Computerworld and the Smithsonianp
Institute. He is an international
speaker, contributing editor at
Intelligent Enterprise, and managesg p g
the open source channel at the
Business Intelligence Network. For
more information or to contact Mark,
visit http://ThirdNature.net.
About Third Nature
Third Nature is a research and consulting firm focused on new and
emerging technology and practices in business intelligence, analytics and
performance management. If your question is related to BI, analytics,p g y q y
information strategy and data then you‘re at the right place.
Our goal is to help companies take advantage of information-driven
t ti d li ti W ff d ti ltimanagement practices and applications. We offer education, consulting
and research services to support business and IT organizations as well as
technology vendors.
We fill the gap between what the industry analyst firms cover and what IT
needs. We specialize in product and technology analysis, so we look at
emerging technologies and markets e al ating technolog and h it isemerging technologies and markets, evaluating technology and hw it is
applied rather than vendor market positions.

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