Impact of cloud computing on the software industry

www.persistentsys.com

Impact of Cloud Computing on the Software Industry

Anand DeshpandeNovember 2010


Personal History and Biases

• Founder and CEO of Persistent Systems.• Established in 1990.• Leader in outsourced software product development.• We work with more than 250 Customers, 5000+

employees.

• Responsible for tracking Technology and for sales. Personally, track database technologies.


Cloud computing

and mobile devices

will transform the

software industry.


What is driving the adoption of cloud computing?

Economics.


What is driving the adoption of cloud computing?

• Illusion of infinite resources• No up-front cost• Fine-grained billing (e.g. hourly)

Utility Computing: Pay-as-you-go computing promises substantially reduced cost.

Economics.


Unused resources

We are grossly over-provisioned

• Capacity includes:• Computer Servers• Storage• Software Licenses• Network bandwidth• Energy• Air Conditioning • Rent• Maintenance Costs• Operator Staff

Static data center

Demand

Capacity

Time

Resources

Slide Credits: Berkeley RAD Lab


Heavy penalty for under-provisioning:Poor quality of service – lost customers.

Lost revenue

Lost users

Reso

urc

es

Demand

Capacity

Time (days)1 2 3

Reso

urc

es

Demand

Capacity

Time (days)1 2 3

Reso

urc

es

Demand

Capacity

Time (days)1 2 3



Ideally, want optimal provisioning of capacity across all resources.

Static data center

Data center in the cloud

Demand

Capacity

Time

Resources

Demand

Capacity

Time

Resources


Reso

urc

es

Demand

Capacity

Time (days)1 2 3 Pay-per-use

business models


What must the Cloud Provision for?

•

Source: Microsoft

Usage

Com

pute

Time

Average

Inactivity

Period

“On and Off “

On & off workloads (e.g. batch job)Over provisioned capacity is wasted Time to market can be cumbersome

Average UsageCom

pute

Time

“Growing Fast“

Successful services needs to grow/scale Keeping up w/ growth is big IT challenge Complex lead time for deployment

Com

pute

Time

“Unpredictable Bursting“

Average Usage

Unexpected/unplanned peak in demand Sudden spike impacts performance Can’t over provision for extreme cases

Com

pute

Time

Average Usage

“Predictable Bursting“

Services with micro seasonality trends Peaks due to periodic increased demandIT complexity and wasted capacity


By reducing server sprawl, improving utilization, simplifying operations, standardizing, increasing reliability, reducing energy and cooling

• hardware costs can be reduced 33-70 percent• maintenance costs can be reduced up to 50 percent• support costs can be reduced by as much as 33 percent• floor space/facility costs can be reduced 33-50 percent

http://www-935.ibm.com/services/us/its/html/green-datacenter-svcs-landing.html

http://www-935.ibm.com/services/us/its/html/green-datacenter-svcs-landing.html


Cloud Computing: Why Now?

Business factors• Minimal capital

expenditure• Pay-as-you-go

billing model

Economies of Scale in the Data Center• Experience of

operating data centers efficiently

Technology factors• Pervasive

broadband Internet

• Maturity in Virtualization Technology

Clean Slate Approach• Multi-tenancy• Challenging the

status-quo

Economic slowdown has accelerated the adoption of cloud computing.


Mobile Internet is getting mainstream• Network: Roadmap for 3G/LTE/4G/WiFi/WiMax is

getting established.• Operating Systems: Android launch has been very

impressive. iOS, Windows7 are viable contenders, cannot rule out Symbian.

• Devices: Price points for smart phones are getting affordable.

• Form factor: With the launch of the iPad and tablet form factors from Dell and Samsung, the tablet war has just begun.

• User Interface: Touch, motion and gestures


Expectations from the Mobile Internet• Always on access with super fast boot time.• Fast broadband speeds• Near zero latency access to nearly all information• More than day-long battery life• Appropriate form factor• Location based information• Presence


The landscape is changing


Are you ready?


What does this mean for me?

http://www.sxc.hu/browse.phtml?f=download&id=697729


Custom software

Hardware

IT Maintenance

Software Products

Total IT Costs

Business Model Pay per use

IT

Budgets

Consequences of the Cloud


Proliferation of AppStores and the pay-per-use business models for apps


Products will be consumed in ready-to-eat bite-sized portions


From the App Store

Low per Unit Cost

ZeroLoyalty

Pay per Use

Snap-inSnap-out


Innovation through Gandhian Engineering

Getting more for less for more


India: the source

and the market

for innovation


Persistent: your trusted partner to help you get there

now!


We welcome your comments:

Anand Deshpande ([email protected])Persistent SystemsNovember 2010