www.lbisoftware.com

Overview of Cloud Computing Overview of Cloud Computing & Potential Business Impact& Potential Business Impact

Gary Reuter LBi Software

Northeast PeopleSoft & Northeast PeopleSoft & NY/NJ NY/NJ

JD Edwards RUG MeetingJD Edwards RUG Meeting

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AgendaAgenda IntroductionsIntroductions Describing Cloud ComputingDescribing Cloud Computing Advantages/IssuesAdvantages/Issues Cloud Appropriate SolutionsCloud Appropriate Solutions Getting Started in the CloudGetting Started in the Cloud Q & AQ & A

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LBi SoftwareLBi Software Over 20 years HCM FocusOver 20 years HCM Focus Experience with Packaged Software Experience with Packaged Software

SolutionsSolutions Active Participant in Quest & RUG Active Participant in Quest & RUG

EventsEvents Team culture – average tenure is 10 Team culture – average tenure is 10

yearsyears Platform independent/process orientedPlatform independent/process oriented Technology centricTechnology centric

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Origin of the termCloud Computing

Origins are from the early days of the Origins are from the early days of the Internet where the network was portrayed as Internet where the network was portrayed as a clouda cloud

First cloud around networking (TCP/IP First cloud around networking (TCP/IP abstraction)abstraction)

Second cloud around documents (WWW data Second cloud around documents (WWW data abstraction)abstraction)

The emerging cloud abstracts infrastructure The emerging cloud abstracts infrastructure complexities of servers, applications, data, complexities of servers, applications, data, and heterogeneous platformsand heterogeneous platforms

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Cloud ComputingCloud Computing

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What is a Cloud What is a Cloud ComputingComputing

Cloud ComputingComputing via Computing via

the internetthe internetOn-demand On-demand

network accessnetwork accessShared pool of Shared pool of

configurable configurable resourcesresources

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A Working Description of A Working Description of Cloud ComputingCloud Computing

Cloud computing - a model for enabling convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly deployed and/or released with minimal management effort or service provider interaction

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5 Essential Cloud 5 Essential Cloud CharacteristicsCharacteristics

Broad network access Broad network access On-demand On-demand Resource poolingResource pooling

Location independenceLocation independence ““Infinite” scaleInfinite” scale Measured serviceMeasured service

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4 Cloud Deployment 4 Cloud Deployment ModelsModels

Private cloud Private cloud Community cloudCommunity cloud Hybrid cloudHybrid cloud Public cloudPublic cloud

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Public CloudPublic Cloud Sold to the public, infinite-scale

infrastructure

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3 Cloud Service Types3 Cloud Service Types

*To be considered “cloud” they must be deployed on top of cloud infrastructure that has the key characteristics

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StorageStorage Infrastructure Infrastructure NetworkingNetworking Virtual MachinesVirtual Machines SoftwareSoftware

Inside the CloudInside the Cloud

Cloud InfastructureSaaSPaaS

IaaS

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Foundation Elements of Foundation Elements of Cloud ComputingCloud Computing

VirtualizationVirtualization Grid technologyGrid technology Service Oriented Service Oriented

ArchitecturesArchitectures Distributed Distributed

ComputingComputing Broadband NetworksBroadband Networks Browser as a Browser as a

platformplatform Free and Open Free and Open

Source SoftwareSource Software

Autonomic Systems

Web 2.0 Web application

frameworks Service Level

Agreements

Other Technologies

Primary Technologies

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Driving Cloud Adoption

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Cloud EconomicsCloud Economics

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Traditional Data Center Traditional Data Center CostsCosts

Average 9000 square foot costs $21 Average 9000 square foot costs $21 million to build with $1 million in million to build with $1 million in electricity costs/yearelectricity costs/year

11.8 million servers; used at only 15% 11.8 million servers; used at only 15% of capacityof capacity

Typically consume up to 100 times more Typically consume up to 100 times more energy per square foot than a typical energy per square foot than a typical office buildingoffice building

Data centers consume 1.5% of our Data centers consume 1.5% of our Nation’s electricity (EPA)Nation’s electricity (EPA)

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Traditional Software Traditional Software CostsCosts$800 billion dollars spent yearly on $800 billion dollars spent yearly on

purchasing and maintaining purchasing and maintaining enterprise software enterprise software Expensive upgrade costsExpensive upgrade costs Expensive licensing costsExpensive licensing costs InflexibilityInflexibility 80% of enterprise software expenditure 80% of enterprise software expenditure

is on installation and maintenanceis on installation and maintenance

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Cloud EconomicsCloud EconomicsEstimates vary widely on possible cost savings:Estimates vary widely on possible cost savings: ““If you move your data center to a cloud provider, it If you move your data center to a cloud provider, it

will cost a tenth of the cost.” – will cost a tenth of the cost.” – Brian Gammage, Gartner Brian Gammage, Gartner FellowFellow

““Use of cloud applications can reduce costs 50% to Use of cloud applications can reduce costs 50% to 90%” - 90%” - CTO of Washington D.C.CTO of Washington D.C.

““IT resource subscription pilot saw 28% cost IT resource subscription pilot saw 28% cost savings” - Alchemy Plus (backing from Microsoft)savings” - Alchemy Plus (backing from Microsoft)

Preferred HotelPreferred Hotel Traditional: $210k server refresh and $10k/monthTraditional: $210k server refresh and $10k/month Cloud: $10k implementation and $16k/monthCloud: $10k implementation and $16k/month

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Possible Effects ofPossible Effects ofCloud ComputingCloud Computing

Small enterprisesSmall enterprises use SaaS and public cloudsuse SaaS and public clouds minimize growth of data centersminimize growth of data centers

Large enterprisesLarge enterprises data centers evolve to act as private cloudsdata centers evolve to act as private clouds use hybrid clouds to leverage both internal use hybrid clouds to leverage both internal

and public cloudsand public clouds Public clouds may adopt standards in order Public clouds may adopt standards in order

to run workloads from competing hybrid to run workloads from competing hybrid cloud infrastructurescloud infrastructures

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Cloud Deployment Cloud Deployment ExamplesExamples

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Salesforce.com in Salesforce.com in GovernmentGovernment

New Jersey TransitNew Jersey Transit Used it to build/run their call center, incident Used it to build/run their call center, incident

management, complaint tracking, and service portalmanagement, complaint tracking, and service portal 500% More inquiries handled500% More inquiries handled 0 New agents required0 New agents required 36% Decrease in response time36% Decrease in response time

U.S. Army used CRM for new Recruiting U.S. Army used CRM for new Recruiting systemsystem U.S. Army needed a tool to track potential new U.S. Army needed a tool to track potential new

recruits who visited its Army Experience Centerrecruits who visited its Army Experience Center Used it to track all core recruitment functions and Used it to track all core recruitment functions and

allows the Army to save time and resourcesallows the Army to save time and resources

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Cloud at LBi SoftwareCloud at LBi Software Customer Website HostingCustomer Website Hosting

Brochure/Bulletin board websitesBrochure/Bulletin board websites Application HostingApplication Hosting

LBi offers SaaS services for our flagship LBi offers SaaS services for our flagship productsproducts

Backup Disaster Recovery at LBi data Backup Disaster Recovery at LBi data centercenter Backup every hour from EC2 to S3Backup every hour from EC2 to S3 Real time data replication from EC2 to LBiReal time data replication from EC2 to LBi

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Cloud at LBi SoftwareCloud at LBi SoftwareLoad TestingLoad Testing

We launched an extra large instance to We launched an extra large instance to host our CaseManager applicationhost our CaseManager application

We launched a medium size instance to We launched a medium size instance to host the load testing software host the load testing software

The load testing software simulated The load testing software simulated various amounts of users and requests various amounts of users and requests

Other load testing services in the cloudOther load testing services in the cloud

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Amazon EC2Amazon EC2

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Amazon EC2Amazon EC2

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Thank You!Thank You!

For more information: www.LBiSoftware.comFor more information: www.LBiSoftware.com