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The	
  OpenStack	
  CSP:	
  
What	
  Kind	
  of	
  Provider	
  Will	
  You	
  Be?	
  

                                     Bernard	
  Golden	
  
                                     CEO,	
  HyperStratus	
  
Who is Bernard Golden?
CEO: HyperStratus, enterprise cloud computing
consultancy
•    Clients include Korea Telecom, Trend Micro, BMC

20+ years experience in large IT shops, enterprise
software, global consultancy, venture capital

Virtualization and Cloud Computing Advisor, CIO
Magazine
•  Sys-con “Top 50 blog,” AlwaysOn “Top 20 blog”

Books:
•  Author, Virtualization for Dummies, 
•  Co-author “Creating the Infrastructure for Cloud
   Computing” (Intel Press 5/11)
•  Co-author: “Cloud Computing: Understanding
   the Risks” (ITGovernance Press (12/11)

     2                                                  2
What	
  the	
  opportunity	
  can	
  look	
  like:	
  
                         	
  
“Each	
  day	
  AWS	
  adds	
  enough	
  compuGng	
  muscle	
  to	
  
power	
  one	
  whole	
  Amazon.com	
  circa	
  2000,	
  when	
  it	
  
                     was	
  a	
  $2.8bn	
  business”	
  
             -­‐	
  Werner	
  Vogels,	
  Amazon	
  CTO	
  
Service	
  Provider	
  Cloud	
  Drivers	
  
•  Developed	
  Economies	
  
   –  Build	
  out	
  hosGng,	
  colo,	
  MSP	
  offerings	
  
   –  Respond	
  to	
  compeGGon	
  	
  
   –  Customer	
  interest/demand	
  
•  Emerging	
  Economies	
  
   –  Preclude	
  compeGGon	
  
   –  Leapfrog	
  generaGon	
  of	
  infrastructure	
  
   –  Fulfill	
  tradiGonal	
  telecom	
  role	
  
   –  Support	
  naGonal	
  economic	
  development	
  
   –  Dominate	
  next	
  generaGon	
  of	
  compuGng	
  
Self-Service
        Service
      Identity and
   Application
   Portal
           Catalog
      Access Mgt
     Management

                          Portal Layer




                                                                     System Management and Monitoring 
  Policy
          Automated
        Policy
       Resource Use
 Definition
          Rules
          Engine
          Review




                                                                                                                               Billing/Chargeback
                                                                                                          Capacity Planning
                Workflow/Governance Layer


  Service
          Automated
      System 
         System 
 Definition
        Provisioning
   Templates
       Monitoring

    Administration and Orchestration Layer


Virtualized
       Virtualized
    Virtualized
    Virtualization
Networking
         Storage
        Compute
       Management

                    Virtualization Layer


  Servers
           Network
        Storage
       Bandwidth


                         Infrastructure
Service	
  Provider	
  Cloud	
  Strategy	
  
Approach	
         Infrastructure	
                    Offering	
  Characteris5cs	
  
                                                       Target	
  market:	
  applicaGons	
  
                                                       Target	
  buyer:	
  developer	
  
                                                       Offering:	
  standardized	
  
                   Soware:	
  Open	
  Source	
        Presales:	
  low	
  
Commodity	
        Hardware:	
  White	
  Label	
       MarkeGng:	
  informal	
  
                                                       (meetups,	
  user	
  groups,	
  etc.)	
  
                                                       Sales:	
  internal,	
  low	
  touch	
  
                                                       MarkeGng	
  promoGon:	
  pizza	
  
                                                       Target	
  market:	
  infrastructure	
  
                                                       Target	
  buyer:	
  VP	
  Ops,	
  CIO	
  
                                                       Offering:	
  customized	
  
                   Soware:	
  Proprietary	
  or	
     Presales:	
  high	
  
Enterprise	
       Open	
  Source	
                    MarkeGng:	
  formal	
  
                                                       (conferences,	
  sponsorships)	
  
                   Hardware:	
  Brand	
  Name	
  
                                                       Sales:	
  external,	
  high	
  touch	
  
                                                       MarkeGng	
  promoGon:	
  golf	
  
                                                       ouGng	
  
OpenStack	
  Service	
  Provider	
  Lifecycle	
  
                        Assess	
                        Plan	
                            Implement	
                       Launch	
                            Penetrate	
  
Lifecycle	
  Step	
     Evaluate	
  opportunity	
       Create	
  business	
  plan	
      Implement	
                       Begin	
  formal	
  sales	
          Build	
  business	
  and	
  
                        and	
  determine	
              with	
  costs,	
  revenues,	
     infrastructure	
  and	
           and	
  markeGng	
  efforts	
  	
     expand	
  offerings	
  
                        strategy	
  type	
              operaGons	
                       begin	
  market	
  
                                                                                          engagement	
  
AcGviGes	
              Evaluate	
  Target	
            Evaluate	
  and	
  select	
       Order	
  and	
  install	
         Announcement	
  and	
               Build	
  ecosystem	
  of	
  
                        Market:	
  Commodity	
          soware	
  and	
                  hardware	
  and	
                 iniGal	
  markeGng	
                complementary	
  
                        or	
  Proprietary	
             hardware	
                        soware	
  components	
           acGviGes	
                          products,	
  service	
  
                                                        components	
                                                                                            providers	
  
                        Survey	
  PotenGal	
  and	
     Determine	
                       Implement	
  cloud	
              Educate	
  customer	
               Offer	
  addiGonal	
  
                        ExisGng	
  User	
  Base	
       implementaGon	
                   offerings	
  defined	
  in	
        base	
                              product	
  capabiliGes	
  
                                                        method	
  (self,	
  SI,	
         planning	
  step	
                                                    to	
  provide	
  more	
  
                                                        partner)	
                                                                                              plaborm	
  value	
  
                                                        Define	
  cloud	
  offerings	
      Integrate	
  cloud	
              Engage	
  iniGal	
                  Grow	
  cloud	
  
                                                                                          infrastructure	
  with	
          customers	
  for	
  success	
       infrastructure	
  to	
  
                                                                                          customer	
  portal,	
             stories	
                           support	
  market	
  
                                                                                          billing,	
  monitoring,	
                                             penetraGon	
  
                                                                                          etc.	
  
                        Determine	
  key	
              Develop	
  business	
             Hire	
  and	
  train	
            Begin	
  partnering	
               ConGnue	
  markeGng	
  
                        offerings	
  for	
  iniGal	
     model	
  including	
  five	
       personnel	
  to	
  support,	
     acGviGes	
                          and	
  sales	
  
                        launch	
                        year	
  revenues,	
  cost,	
      sell	
  cloud	
  offerings	
  
                                                        personnel	
  
                                                        requirements	
  
DuraGon	
               2	
  –	
  4	
  weeks	
          4	
  –	
  12	
  weeks	
           12	
  –	
  26	
  weeks	
          26	
  –	
  52	
  weeks	
            Ongoing	
  
CSP	
  RecommendaGons	
  
•    Customer	
  adopGon	
  is	
  everything	
  
•    Choose	
  a	
  strategy	
  
•    CSP	
  lifecycle	
  requirements	
  
•    Map	
  requirements	
  to	
  current	
  capabiliGes	
  
•    Create	
  lifecycle	
  plan	
  
Your	
  Choice	
  Influences	
  Your	
  DirecGon	
  
                        But	
  
Making	
  the	
  Plaborm	
  Choice	
  is	
  Only	
  the	
  Start	
  

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OpenStack CSP: What Kind of Provider Will You Be

  • 1. The  OpenStack  CSP:   What  Kind  of  Provider  Will  You  Be?   Bernard  Golden   CEO,  HyperStratus  
  • 2. Who is Bernard Golden? CEO: HyperStratus, enterprise cloud computing consultancy •  Clients include Korea Telecom, Trend Micro, BMC 20+ years experience in large IT shops, enterprise software, global consultancy, venture capital Virtualization and Cloud Computing Advisor, CIO Magazine •  Sys-con “Top 50 blog,” AlwaysOn “Top 20 blog” Books: •  Author, Virtualization for Dummies, •  Co-author “Creating the Infrastructure for Cloud Computing” (Intel Press 5/11) •  Co-author: “Cloud Computing: Understanding the Risks” (ITGovernance Press (12/11) 2 2
  • 3. What  the  opportunity  can  look  like:     “Each  day  AWS  adds  enough  compuGng  muscle  to   power  one  whole  Amazon.com  circa  2000,  when  it   was  a  $2.8bn  business”   -­‐  Werner  Vogels,  Amazon  CTO  
  • 4. Service  Provider  Cloud  Drivers   •  Developed  Economies   –  Build  out  hosGng,  colo,  MSP  offerings   –  Respond  to  compeGGon     –  Customer  interest/demand   •  Emerging  Economies   –  Preclude  compeGGon   –  Leapfrog  generaGon  of  infrastructure   –  Fulfill  tradiGonal  telecom  role   –  Support  naGonal  economic  development   –  Dominate  next  generaGon  of  compuGng  
  • 5. Self-Service Service Identity and Application Portal Catalog Access Mgt Management Portal Layer System Management and Monitoring Policy Automated Policy Resource Use Definition Rules Engine Review Billing/Chargeback Capacity Planning Workflow/Governance Layer Service Automated System System Definition Provisioning Templates Monitoring Administration and Orchestration Layer Virtualized Virtualized Virtualized Virtualization Networking Storage Compute Management Virtualization Layer Servers Network Storage Bandwidth Infrastructure
  • 6.
  • 7. Service  Provider  Cloud  Strategy   Approach   Infrastructure   Offering  Characteris5cs   Target  market:  applicaGons   Target  buyer:  developer   Offering:  standardized   Soware:  Open  Source   Presales:  low   Commodity   Hardware:  White  Label   MarkeGng:  informal   (meetups,  user  groups,  etc.)   Sales:  internal,  low  touch   MarkeGng  promoGon:  pizza   Target  market:  infrastructure   Target  buyer:  VP  Ops,  CIO   Offering:  customized   Soware:  Proprietary  or   Presales:  high   Enterprise   Open  Source   MarkeGng:  formal   (conferences,  sponsorships)   Hardware:  Brand  Name   Sales:  external,  high  touch   MarkeGng  promoGon:  golf   ouGng  
  • 8. OpenStack  Service  Provider  Lifecycle   Assess   Plan   Implement   Launch   Penetrate   Lifecycle  Step   Evaluate  opportunity   Create  business  plan   Implement   Begin  formal  sales   Build  business  and   and  determine   with  costs,  revenues,   infrastructure  and   and  markeGng  efforts     expand  offerings   strategy  type   operaGons   begin  market   engagement   AcGviGes   Evaluate  Target   Evaluate  and  select   Order  and  install   Announcement  and   Build  ecosystem  of   Market:  Commodity   soware  and   hardware  and   iniGal  markeGng   complementary   or  Proprietary   hardware   soware  components   acGviGes   products,  service   components   providers   Survey  PotenGal  and   Determine   Implement  cloud   Educate  customer   Offer  addiGonal   ExisGng  User  Base   implementaGon   offerings  defined  in   base   product  capabiliGes   method  (self,  SI,   planning  step   to  provide  more   partner)   plaborm  value   Define  cloud  offerings   Integrate  cloud   Engage  iniGal   Grow  cloud   infrastructure  with   customers  for  success   infrastructure  to   customer  portal,   stories   support  market   billing,  monitoring,   penetraGon   etc.   Determine  key   Develop  business   Hire  and  train   Begin  partnering   ConGnue  markeGng   offerings  for  iniGal   model  including  five   personnel  to  support,   acGviGes   and  sales   launch   year  revenues,  cost,   sell  cloud  offerings   personnel   requirements   DuraGon   2  –  4  weeks   4  –  12  weeks   12  –  26  weeks   26  –  52  weeks   Ongoing  
  • 9. CSP  RecommendaGons   •  Customer  adopGon  is  everything   •  Choose  a  strategy   •  CSP  lifecycle  requirements   •  Map  requirements  to  current  capabiliGes   •  Create  lifecycle  plan  
  • 10. Your  Choice  Influences  Your  DirecGon   But   Making  the  Plaborm  Choice  is  Only  the  Start