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Opportunities & Challenges in Cloud Computing Shailabh Nagar IBM Jan 2009

Opportunites and Challenges in Cloud COmputing

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Opportunities and Challenges in Cloud Computing - IBM, Shailab Nagar, As part of cloud symposium, at ACM Bangalore Compute 2009

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Page 1: Opportunites and Challenges in Cloud COmputing

Opportunities & Challenges in Cloud Computing

Shailabh NagarIBM

Jan 2009

Page 2: Opportunites and Challenges in Cloud COmputing

The Cloud has 5 distinct layers and value propositions. Very significant opportunities exist above the infrastructure level, where much of the cloud discussion has been focused previously.

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Page 3: Opportunites and Challenges in Cloud COmputing

Evolving a cloud definition

IT Analysts:- Variable pricing- No long term commitments- Hosted, on dem. provisioning- Massive, elastic scaling- Standard Internet technology- Abstracted infrastructure- Service-oriented

IT Customers:- Flexible pricing / business models- Outsourced, on demand

provisioning- Unlimited scaling- SW developer platform- Flexible

Common Attributes of CloudsElastic scaling

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Financial Analysts:- Utility pricing- Hosted, a-a-s provisioning- Parallel, on demand processing- Scalable- Virtualized, efficient infrastructure- Flexible

Press:- Pay by consumption- Lower costs- On demand provisioning- Grid and SaaS combination- Massive scaling- Efficient infrastructure- Simple and easy

Elastic scaling

Rapid provisioning

Advanced virtualization

Flexible pricing

Page 4: Opportunites and Challenges in Cloud COmputing

Rapid provisioning

Cloud Computing is a model of shared network-delivered services, both public and private, in which the user sees only the service, and need not worry about the implementation or infrastructure

BusinessServices

PeopleServices

Important roles for both public and private

clouds.

Consumable web-delivered services

requiring no installation, minimal setup

technologiesStandard Internet

technologies

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Flexible pricing

InfrastructureServices

PlatformServices

ApplicationServices

Built on radically scalable, manageable, virtualized IT resources

Service layers separated by clean APIs, enabling

composition.

clouds.

Elastic scaling

virtualizationAdvanced

virtualization

Page 5: Opportunites and Challenges in Cloud COmputing

Cloud Computing Definition: Another view

INNOVATIVE BUSINESS MODELS

End Users / Requestors

Government/ Academics

Industry(Startups/ SMB/ Enterprise)

Consumers

• Cloud applicationsenable the simplificationof complex services

• New combinations of services to form differentiating value propositions at lowercosts in shorter time

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Enterprise Cloud

Public Cloud

INNOVATIVE BUSINESS MODELS

• An “Elastic” pool of high performance virtualized compute resources

of complex services• A cloud computingplatform combines modular componentson a service oriented architecture

• Internet protocol based convergence of networks and devices

SIMPLIFIED SERVICES

Page 6: Opportunites and Challenges in Cloud COmputing

Answer

Live Mesh

CloudThere are major opportunities at all levels of the stack, and the Cloud will grow rapidly at the top layers (Application, Business and People)

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Infrastructure Services

Platform Services

Application Services

Business Services

2000 2006

‘People’ Services

2009

Serv

ice C

loud L

ayers

Health BETA

Static, dedicated, outsourced Network-delivered, off-premises Shared, automated, dynamic

Page 7: Opportunites and Challenges in Cloud COmputing

The Cloud model can be truly disruptive if it can reduce the IT operational expenses of enterprises: development, management, integration, and energy consumption.

The Cloud has 5 distinct layers and value propositions. Very significant opportunities exist above the infrastructure level, where much of the cloud discussion has been focused previously.

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Page 8: Opportunites and Challenges in Cloud COmputing

Rising operational costs of systems and networking

Explosion in volume of data and information

Difficulty in deploying new applications and services

Security of your assets and your clients’ information

Landslide of compliance requirements and government mandates

Systems and applications need to be available

Costs &

Service

Delivery

Business

Resiliency

& Security

IT Operational Challenges

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Systems and applications need to be available

Rising energy costs and rising energy demand

Power and thermal issues inhibit operations

Environmental compliance and social responsibility

Unpredictable workload characteristics

Manage fast growth of “smart” objects and data volumes

Need maximum flexibility for real time interaction

Energy

Efficiency

Changing

application

models

Page 9: Opportunites and Challenges in Cloud COmputing

BusinessServices

People

Services

• People cloud, tagging, wisdom of crowds• Break linear relationship between revenue and labor costs• People cloud, tagging, wisdom of crowds• Break linear relationship between revenue and labor costs

• Businesses (i.e. Telco) can easily experiment with new services• Time-to-value of new services greatly decreased• Businesses (i.e. Telco) can easily experiment with new services• Time-to-value of new services greatly decreased

Cloud technologies offer operational expense reductions at all layers

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InfrastructureServices

PlatformServices

ApplicationServices

• Ensembles simplify hardware (server / stg / network) management.• Virtual image management contains scaling costs of update, etc.• Power and heat management reduce energy costs / emissions

• Deployment technologies uncouple service deployment from hardware.

• Improved consumability via Web delivery of apps and services• Web-resident development, deployment, update, app management• Easy app composition reduces development costs

Page 10: Opportunites and Challenges in Cloud COmputing

Global Annual IT SpendingEstimated US$B 1996-2010

Uncontrolled system management costs150

200

250

300

New Server Spending

Server Mgt and Admin Costs

Power and Cooling Costs

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Steady CAPEX spend:Not the key problem to address

management costs

$0B

50

100

Industry hypothesis is that clouds will be driven by scale.However to capitalize on this, providers must address the server management cost problem, not just CAPEX

Page 11: Opportunites and Challenges in Cloud COmputing

Business Case ResultsAnnual savings: 87%

Payback Period: 32 days

Return On Investment (ROI): 2673 %

Business Case Results: IBM TAP Cloud Deployment

StrategicChange Capacity

100%New

DevelopmentLiberated

funding for new development,

transformation investment or direct savingPower

Costs

Software Costs

Without Cloud With Cloud

TAP - The Technology Adoption Program is IBM's new model for managing technology to drive innovation

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Current IT

Spend

Hardware, labor & power savings reduced annual cost of operation by 86.7%Hardware Costs

( - 88.7%)

Labor Costs ( - 80.7%)

Deployment (1-time)

Note: 3-Year Depreciation Period with 10% Discount Rate

Hardware Costs

(annualized)

Labor Costs (Operations and

Maintenance)

Power Costs(- 88.9%)

Software Costs

Page 12: Opportunites and Challenges in Cloud COmputing

Benefits of a Services-oriented Cloud – Application development• Enterprise application development with Websphere 7.0

• Web2.0 application development with Linux, Apache, MySQL, PHP (LAMP)

Traditional native approach Cloud-based deployment

• OS installation =~ 1 hour• WAS download + unzip + install = 8 + 5 + 35 = 48

min

• Order on cloud service (< 1min)• Deploy appliance to target and activate (7 min)WAS cell ready to deploy application = 8 min

Traditional native approach Cloud-based deployment

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Traditional native approach Cloud-based deployment

• OS installation (1 hr)• Apache download, install, config =~ 30 min• MySQL =~ 30 min, PHP =~ 30 min, Perl =~ 30 min• Admin tools =~ 1 hr Ready to use: ~ 4 hrs

• Order on cloud service (< 1min)• Deploy XAMPP appliance to target and activate (6

min)LAMP stack ready to deploy application: ~ 7 min

• Resource procurement, setup, and provisioning

• Management and monitoring of virtualized infrastructure

• Manual on-boarding onto new applications and services

• Access to service offering content from service catalog

• Standardized deployment with less human error

• Accelerated provisioning and on-boarding for new customers

• No procurement and management of infrastructure

Page 13: Opportunites and Challenges in Cloud COmputing

The Cloud model can be truly disruptive if it can reduce the IT operational expenses of enterprises: development, management, integration, and energy consumption.

The Cloud has 5 distinct layers and value propositions. Very significant opportunities exist above the infrastructure level, where much of the cloud discussion has been focused previously.

The challenge is in achieving the operational expense reduction at all layers of the cloud at a sufficient scale. We’ve been here before and opportunity is knocking once more !

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Page 14: Opportunites and Challenges in Cloud COmputing

Cloud management services. A layer of management services will be required to provide enterprise-level QoS transparently, from both intranet and public clouds.

CRM application

Using Cloud services does not free the service user from all management requirements.

Confidential Data

Public/Private

Encrypted/anonymized data

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Core businessapplication

Analytics application

Public cloud

Non-cloud

Dashboard, PD…

HA service

Backup service

Primary service

PrivateClouds

Page 15: Opportunites and Challenges in Cloud COmputing

Architectural Model for Cloud Computing

End User

Requests

& Operators

Service Request & Operations

Design & Build

IT Infrastructure & ApplicationProvider

ServiceCreation & Deployment

Virtual ImageManagement

Service Catalog,Component

Library

DatacenterInfrastructure

AccessServices

User Request Management/Self Service Portal

Security: Identity, Access, Integrity,

Isolation, Audit & Compliance

Usage Accounting

License Management

Image Lifecycle Management Provisioning Performance

ManagementAvailability/Backup/

Restore

Service Lifecycle Management

Service Management

15August 24, 2008

Image Library(Store)

Deployment

OperationalLifecycle of Images

Service Catalog

Request UI

Operational UIStandards Based Interfaces

Virtualized Infrastructure

Service Management

Service Oriented Architecture Information Architecture

Standards Based Interfaces

Cloud Administrator

Optimized Middleware(image deployment, integrated security, workload mgmt., high-availability)

Service Oriented Architecture Information Architecture

Isolation, Audit & Compliance Accounting Management

Virtual Resources & Aggregations

SMP Servers Network HardwareStorage Servers

System Resources

Blades Storage

Virtualized Infrastructure

Server Virt. Storage Virt. Network Virt.

Page 16: Opportunites and Challenges in Cloud COmputing

Network-Delivered Services are the culmination of a long term trend to simplify the purchase of IT Services

1990: Berners-Lee invents the World-Wide Web1994: CommerceNet

1998: RosettaNet1999: i-Mode mobile internet

1961: John McCarthy proposes computing as a utility1961: IBM Services Bureau

1975: First inter-industry EDI standards

1981: SMTP defines the standard electronic mail service1985: United Nations sponsors EDIFACT

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2000: IBM BCRS2000: UDDI 1.0; “SaaS” coined

2001: Dot com bubble bursts

2005: IBM AoD2006: Amazon EC2

2007: Google Health; force.com launch2008: IBM ww Cloud Computing

centers

1999: i-Mode mobile internet

20101980 1990 20001960-

1970

IBM ServiceBureau (1961)

Page 17: Opportunites and Challenges in Cloud COmputing

Evolution of Cloud Computing

• Anytime, anywhere

Software as a Service

Utility Computing

Cloud Computing

We can leverage experiences from this evolution

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• Solving large problems with parallel computing

• Network-based subscriptions to applications• Offering computing

resources as a metered service

• Anytime, anywhere access to IT resources delivered dynamically as a service.

Utility Computing

Grid Computing

Page 18: Opportunites and Challenges in Cloud COmputing

The Cloud model can be truly disruptive if it can reduce the IT operational expenses of enterprises: development, management, integration, and energy consumption.

The Cloud has 5 distinct layers and value propositions. Very significant opportunities exist above the infrastructure level, where much of the cloud discussion has been focused previously.

The challenge is in achieving the operational expense reduction at all layers of the cloud at a sufficient scale. We’ve been here before and opportunity is knocking once more !

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Page 19: Opportunites and Challenges in Cloud COmputing

Thank you

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