Cloud Computing: Myths, challenges, opportunities and ... · Public or Private? Think Hybrid Private Public Distinctions are made at the extremes, but many examples exist somewhere

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Cloud Computing: Myths, challenges, opportunities and realities – taking control of your cloud strategy

Potential Cloud Benefits: Why are People Doing This?• A shift from "Capacity" on demand to "Capability" on demand

- Decreased time to acquiring a capability due to "low barriers to entry"

- More effective Agility and use of resources

- Increased operational efficiency/sharing through outsourcing (i.e. Someone else does the work better)

- More options through more service providers

• Reduced cost of computing resources- Clear line of sight to costs of computing resources

- Reduced power, cooling, and space requirements costs

- Increased flexibility of expenditures through operating expenses rather than capital expenses.

- More finely-targeted use of resources by paying only for what is needed.

• A shift from technology use to "value" consumption- Consumers pay for what they want to do rather than for pieces of technology

- Results evaluated based on outcomes

Cloud Risks: 70% of companies over 1000 Employees Have not yet started a Cloud Initiative — What Holds them back?

• Security: Can you trust it?

• Lack of Compliance Reporting and Auditing

• Ensuring Quality and predictability of Service and service remediation

• Delivering and verifying reduced cost over on-premises computing (Business case costs and benefits).

• Remediation of failures

• Align business need with actual cloud reality

Have already implemented

Currently implementing

Planning to implement within 18 months

Currently evaluating

Neither engaged nor evaluating

0 10 20 30Percent

Cloud Computing Strategy and Implementation

Key Issues

1. How will cloud computing be defined and evolve?

2. How will cloud computing affect the strategy and direction of IT and business?

3. How will vendors and the IT industries be affected by the cloud computing phenomenon?

Key Issues




Internet Technologies

Metered By Use

Shared

Scalable & Elastic

Service Based

Services are delivered through use of Internet Identifiers, Formats, and Protocols.

Services are tracked with usage metrics to enable multiple payment models.

Services share a pool of resources to build economies of scale.

Services scale on-demand to add or remove resources as needed.

Consumer concerns are abstracted from provider concerns through service interfaces

5 attributes that support outcomes

Gartner defines cloud computing as "a style of computing where scalable and elastic IT-related capabilities are provided 'as a service' to customers using Internet Technologies".

1

2

3

4

5

Gartner's Definition of Cloud Computing & the Critical Attributes of Cloud Services

The Cloud Computing Spectrum

OwnerOwner Company Company Provider Provider Provider

OperatorOperator Company Provider Provider Provider Provider

Service Service AccessAccess

Closed (enterprise)

Closed (enterprise)

Closed (enterprise)

Closed group(community)

Open

Level of Level of ControlControl

Full High High Low None

Points of Points of LeverageLeverage

Skills (none)Assets (none)Arch. (none)

Skills (strong)Assets (none)Arch. (strong)

Skills (strong)Assets (some)Arch. (strong)

Skills (strong)Assets (strong)Arch. (strong)

Skills (strong)Assets (strong)Arch. (strong)

VirtualPrivate Cloud

Company A Company A

Com

pany

A

Com

pany

B

Com

pany

A

Com

pany

B

Prov

ider

X

Use

r Z

Closed Private Open Public

CommunityPublic Cloud

PublicCloud

Managed Private Cloud

Company A

CustomPrivate Cloud

Will your enterprise be pursuing a private cloud

computing strategy by 2012?

Through 2012, how will your IT organization invest in

cloud computing?

Yes76%

No4%

Maybe20%

More private75%

More public

8%

Neither11%

Don't know6%

N = 106 N = 88

Gartner Data Center Conference

Polls, December 2009

Private and Public Cloud Plans

Public or Private? Think HybridPrivate Public

Distinctions are made at the extremes, but many examples exist somewhere between.

Hybrid

The real issue is: How to deliver cloud services in my private scope to gain as many cloud computing benefits as I can while maintaining a degree of control, not whether I have a private cloud.

Company-/Entity-Owned Assets and

Scope Are Bound by Exclusive

Membership Defined by Company/Entity

No Owned Assets and Scopes Are

Open to Anyone Who Can Pay for Service

as Delivered by Provider

Cloud Computing:Private or Public

Choose public• Proven• Total costs are less• Service-level guarantees meet all

requirements• Meets enterprise security needs• Meets legal/data ownership

requirements• Meets regulatory compliance

requirements• Failure remediation/disaster

recovery (including provider failure) proven and meets needs

Go HybridBuild private

• Public service unproven, immature• Internal costs are lower — including

if service use declines precipitously• Service-level requirements cannot be

met by public provider• Public providers cannot meet

security needs• Legal/data ownership issues unclear,

or do not meet requirements• Compliance requirements cannot be

met through public offering• Provider/connection failure recovery

not sufficient to meet needs

Prov

isio

ning

Optimization

Availability

2010 to 2020

Policies

Services

Service levels and agility up

Cloud-enabled

AutomatedService-Orientation

WorkloadsData

ResourcesIdentities

Real-Time Infrastructure

The Evolution of Infrastructure and Private Cloud Computing Can Affect Your Books

2002

SprawledComponent-Orientation

2002 to 2012

Asset, power costs down, flexibility up

VirtualizedLayer-Orientation

Is there anything left to capitalize?

Is there anything left to capitalize?

Application Infrastructure Services (PaaS)

Application Services (SaaS)

System Infrastructure Services (IaaS)

Layers of a Cloud Ecosystem: The value is in delivery "as a service"

Processes, Applications, Application Infrastructure,System Infrastructure

Consumers

Business Process Services

The Cloud Ecosystem

Expectation/Satisfaction Management

API

management

(WS*, R

EST,

HTTP, Events)

Providers

PaaS

• Platform Infrastructure high profile, low revenue.

• Salesforce, VMWare& Microsoft adding

credibility. • Integration as a Service

(Brokerage) growing.

$mn$bn SaaS

Cloud Markets are Growing with Adoption

• SaaS becoming the more mainstream.

• Slightly slower IT spending ahead.

• Multi-thousand seat deals are increasingly common.

0

5

10

15

20

25

2009 2010 2011 2012 2013 2014

0

100

200

300

400

500

600

700

2009 2010 2011 2012 2013 2014

Platform InfrastructureIntegration Services

0.0

2.0

4.0

6.0

8.0

10.0

12.0

2009 2010 2011 2012 2013 2014Compute ServicesStorage ServicesBackup Services

IaaS

• Greater interest than expected.

• 2013 market $8bn (up from $6.8bn) and 2014 market to be worth $10bn.

$bn

Key Issues




What are People Doing In the Cloud?Collaboration and

ProductivityInterest in simple, cloud-based productivity apps

Development & Test

Mock up the data and move now

Web Application Serving

Servers are half there already

EmailMost Major Universities

Seeking to Move

SaaSSucessfactors won with a

420,000 seat deal with Siemens

PrototypingTry before you

buy

CrowdsourcingMining what the collective knows

ContextInformation about people

is everywhere

CloudSourcing Is Outcomes Based

4. Financial Metrics

•Starts with the customer'sview of service•Focuses on outcomes•Starts with the customer'sview of service•Focuses on outcomes

1. Performance Metrics

Process A Step1

Process A Step 2

Process A Step 3 Outcome AOutcome A

Process B Step1

Process B Step 2

Process B Step 3 Outcome BOutcome B

Service

SLA

SLA

Customers

2. Service-Level Agreements

Gartner Business Value Model

3. Business Metrics

Face A New Money Reality to Keep Your UsersDisconnect Price From Cost•Customers pay for parts•Customers trained to care about technology•Budget recycling•Customers stop IT from making sensible decisions

Reconnect Price To Value•Customers pay for what they need to do•Customers trained to evaluate prices in terms of outcomes•Providers are free to spend whatever makes sense•Providers balance the "margin" between price and cost

Can Your IT Organization Handle a Business "Fly-By" to the Cloud?

83% Looking at SaaS

Business Unit

• Can't wait for IT• Looks Easy• Rapid "time to capability"• Transparency of pricing• Visibility to value• Operational budget

IT – "Umm…No!"

• Potential for shelf-ware as a service

• Possible governance issues of application portfolio

• Release management dictated by the provider

• Security concerns• Longer-term TCO uncertainties• OP2OD (on-premise to

on-demand) integration

And…Three Styles of Security for Public/Private Cloud can Affect your Safety

Publ

ic C

loud

Priv

ate

Clo

ud

Low Medium High

• Security built into VM is used

• Accept vendor security claims

• Third-party security on VM is used

• Certification/ accreditation of system

• Security is performed outside the VM

• Security product certification

• Brokered in Cloud

• Custom or industry assessment

• Outside the cloud

• No trust of the cloud

Security "Pressure"

Trust of the Cloud

• Security assessment difficulties

- Adequate information is hard to obtain

• Data compromise risk- Encryption a partial solution

to privacy issues• Data loss risk- How do you back up a cloud

service?• Vendor viability and data

portability concerns- Open cloud portability

standards still immature.• Growing potential for

"cloud hacking"- Can a highly distributed and

virtualized environment be secure?

• Cloud Provider Security

• SAS 70 sufficient?

1. The right to retain ownership, use and control of one's own data

2. The right to service-level agreements that address liabilities, remediation and business outcomes

3. The right to notification and choice about changes that affect the service consumer's business processes

4. The right to understand the technical limitations or requirements of the service up front

5. The right to understand the legal requirements of jurisdictions in which the provider operates

6. The right to know what security processes the provider follows

7. The responsibility to understand and adhere to software license requirements

What are the Rights and Responsibilities of Cloud Service Consumers?So…Assess Your Rights and Responsibilities in the Cloud

Industries are Changing: Government Cloud Initiatives Can Affect Private Sector Decisions

Anyone

Exclusive

ServiceAccess

OwnershipAgency Third PartyGovernmentwide

LimitedMembership

CentralizedMultiagency

CloudServices

SharedMultiagency

CloudServices

ExternalMultiagency

CloudServices

Internal Single-Agency

CloudServices

Shared Single-Agency

CloudServices

ExternalSingle-Agency

CloudServices

GovernmentPublic Cloud

Services

Public CloudServices

Key Issues




The New Vendor Reality: A Risky Transition

• Manage the Shift from Product to Service

• Risky Proposition – Giving away your Customers

• Discover new Pricing Models

• Cannibalizing On-Premises Products

• New Powerhouse Vendors

• Will the Business Models work?

Select Vendors Who demonstrate a Grasp of the New Reality

Cloud Services Brokerage: A Multiplicative Growth Effect

• Potentially every service, every consumer, and every combination of services may need brokerage

• Enabling technologies as arms dealers

• Game changes for systems integrators as they move to cloud services to get:- Greater Degree of

leverage- Economies of scale- Size of market

opportunity- Distinguishing between

one-off value add from leveraged multiple Customer engagements.

Cloud Service Consumers

Cloud Services

Opportunities for Brokerage and Brokerage Enabling Technologies

CloudService Provider




Cloud Service Providers

Cloud-Enabling Your IT Strategy Is Your Cloud Strategy• Conduct assessments to determine

potential use cases, constraints & readiness- Organizational (IT & Business)- Technology (Infrastructure & Applications)- Data Readiness, Risk Profile

• Determine when, where, why and how to consume public/community cloud services - Categorize workloads & defining use cases- Not everything will not move to external services

• Move toward a private cloud model for your own infrastructure & applications- Private cloud is more than use of virtual servers

• Integrate Cloud Into Your App Strategy - Look beyond hosted applications to cloud

optimized applications you build or buy

Consuming Public Cloud

Services

Implementing Private Cloud-

Computing Environments

Developing Cloud-Based Applications

and Solutions

Documents

Cloud Computing: Myths, challenges, opportunities and ... · Public or Private? Think Hybrid Private Public Distinctions are made at the extremes, but many examples exist somewhere