Enterprise + Cloud + Open To the Point: When Open Meets Cloud Enterprise + Cloud + Open Aneel Lakhani @aneel Gartner Data Center Conference December 3-6, 2012 The Venetian Resort Hotel and Casino Las Vegas, Nevada Aneel Lakhani Notes accompany this presentation. Please select Notes Page view. These materials can be reproduced only with written approval from Gartner. Such approvals must be requested via email: vendor.relations@gartner.com. Gartner is a registered trademark of Gartner, Inc. or its affiliates. This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other authorized recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates. © 2012 Gartner, Inc. and/or its affiliates. All rights reserved.

(Enterprise) + Cloud + Open Placeholder for text (substitute your own text; delete when not used) (Enterprise) + Cloud + Open

CIOs—don’t care about cloud CIO IT Strategies Ranking of IT strategies CIOs selected as one of their top three in 2012. Ranking 2012 2011 2010 2009 2008 Delivering business solutions 1 2 1 3 1 Reducing the cost of IT 2 3 3 2 10 Developing or managing a flexible infrastructure 3 1 8 11 11 Expanding the use of information and analytics 4 7 7 10 9 Improving IT management and governance 5 4 6 4 7 Improving business alignment and relationship 6 10 2 1 2 Implementing mobility solutions 7 18 * * * Consolidating IT operations and resources 8 5 9 9 12 Implementing business process improvements 9 8 4 5 6 Improving IT organization and workforce 10 6 10 8 3 Implementing Cloud (SaaS, IaaS, PaaS) 11 9 * * * * New response category Number = 2,338

They need solutions that work now They want to pick a winner It’s not just about open source It’s not even primarily about open source It’s about speed It’s about cost It’s about alternatives (to 300lb gorillas)

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Obligatory Cloud Definition Slide Key Issue: How will cloud computing be defined and evolve? Definition: Gartner defines cloud computing as "a style of computing where scalable and elastic IT-related capabilities are provided 'as a service' to external customers using Internet technologies." 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." Service Based Consumer concerns are abstracted from provider concerns through service interfaces 1 Scalable and Elastic Services scale on-demand to add or remove resources as needed. 2 Shared Services share a pool of resources to build economies of scale. 3 5 Attributes that support outcomes Metered By Use Services are tracked with usage metrics to enable multiple payment models. 4 Internet Technologies Services are delivered through use of Internet Identifiers, Formats, and Protocols. 5

Private clouds? Yeah, get used to it Strategic Planning Assumption: Through 2014, IT organizations will spend more money on private cloud computing investments than on offerings from public cloud providers. No 5% Gartner Data Center Conference Poll, December 2011 Will your enterprise be pursuing a private cloud computing strategy by 2014? (N=150) Maybe 17% Yes 78% Key Issue: How will server virtualization lead to cloud computing? At Gartner's Data Center Conference in December 2010, 55 attendees responded to a poll asking, "By 2015, how would you describe your virtualization progress (choose the one most applicable)?" While this was a small poll in a break-out session, the responses match what we have been hearing from our clients for the past six months or so. Twenty-four percent of the respondents plan to be heavily virtualized (Stage 2) by 2015, 41% intend to have a private cloud in place (Stage 3), and 35% intend to leverage hybrid cloud computing (Stage 4) by 2015. This poll matches other, larger polls on interest in private cloud computing, but the really interesting data point was the large interest in hybrid cloud computing. Few organizations today have a hybrid cloud deployment in place. Even so, a large percentage of companies believe it is in their near future. This implies that many large enterprises will design their private clouds for future public cloud interoperability. Because few real standards exist, this will be a challenge today for enterprises starting down the private cloud path.

Hybrid? Yeah, get used to it Strategic Planning Assumption: Through 2014, IT organizations will spend more money on private cloud computing investments than on offerings from public cloud providers. Partially virtualized 8% Hybrid cloud 47% Gartner Data Center Conference Poll, December 2011 By 2015, how would you describe your virtualization progress (choose the one most applicable)? (N = 104) Heavily virtualized 17% Private cloud 32% Key Issue: How will server virtualization lead to cloud computing? At Gartner's Data Center Conference in December 2010, 55 attendees responded to a poll asking, "By 2015, how would you describe your virtualization progress (choose the one most applicable)?" While this was a small poll in a break-out session, the responses match what we have been hearing from our clients for the past six months or so. Twenty-four percent of the respondents plan to be heavily virtualized (Stage 2) by 2015, 41% intend to have a private cloud in place (Stage 3), and 35% intend to leverage hybrid cloud computing (Stage 4) by 2015. This poll matches other, larger polls on interest in private cloud computing, but the really interesting data point was the large interest in hybrid cloud computing. Few organizations today have a hybrid cloud deployment in place. Even so, a large percentage of companies believe it is in their near future. This implies that many large enterprises will design their private clouds for future public cloud interoperability. Because few real standards exist, this will be a challenge today for enterprises starting down the private cloud path.

Agility over cost Don't Know Enable Hybrid Quality 2% 3% 1% Agility/ Strategic Guideline: For most enterprises deploying private cloud computing services, the most significant benefit will be speed of deployment for standard and common infrastructure requests. Don't Know 2% Enable Hybrid 1% Quality 3% Agility/ Speed 59% Defend IT 3% Cost 21% Business Alignment 11% Gartner Data Center Conference Poll, December 2011: What is your main driver in moving to private clouds? (N = 155)

Tech is easy, people and process are hard Strategic Guideline: Technology is one of the least challenging concerns with private cloud computing; much more important are processes, funding models, service requirements, culture and politics. First Choice Second Third Culture 56 Management and operations processes 80 Funding/chargeback model 62 Service description and self-service interface 46 What are your three biggest challenges in creating a private cloud computing service? Business/customer relationship 31 Technology 36 Gartner Data Center Conference Poll, December 2010 (N = 167) Politics 40 Not sure 11

Sticking points Shared resource pools Buy-in anticipation of demand Strategic Guideline: For most enterprises deploying private cloud computing services, the most significant benefit will be speed of deployment for standard and common infrastructure requests. Shared resource pools Buy-in anticipation of demand Service cost/price transparency Governance and policies Business justification and ROI Standard services, predefined architecture, dynamic delivery

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What is open Equality — The more everyone's rights and responsibilities are equal, the more open something is. Inclusiveness — The more parties who can participate in using and shaping something, the more open it is.

What is open Licensing — conditions for use Community — conditions for participation Architecture — conditions for evolution 13

Evaluating openness

Applied to the Linux kernel Licensing — restrictions on distributing derivative works, but derivative works are more open Community — not equal or inclusive Architecture — easily built upon, extended, etc.

"Open” is a feature Open source cloud technologies, such as hypervisors and cloud management platforms (CMPs), Open APIs, such as the Amazon Web Services (AWS) APIs and the Open Cloud Computing Interface (OCCI) Open formats and protocols, such as the Open Virtualization Format (OVF) and Cloud Infrastructure Management Interface (CIMI)

“Open” is a marketing term "The introduction of these open cloud products marks the first time any company has deployed a large-scale open source public cloud powered by…" "…extends support for open cloud ecosystem." "…sets itself apart from the cloud crowd by developing innovative and flexible Web and cloud services using open source software." "…an open cloud provides the interoperability that will free companies from being locked in to a single cloud vendor."

Open hype Interoperability and portability Reduced lock-in Freedom from commercial interests Lower costs

Open reality: interoperability and portability are hard The API is not the implementation: Just because you can write to it doesn't mean it will actually work Wide adoption is required to even begin to consider portability or interoperability Private Clouds Public Clouds Hybrid Clouds Traditional IT IT organization acting as a provider and broker

Open reality: there is always lock-in Visibility and control does not prevent dependency and lock in Real lock-in will be at the Cloud Management Platform — open source or commercial Having visibility and control of the code you use does not prevent you from being utterly dependent on it in a way that biases all your other technology decisions Real lock-in, the kind that there is no backing out from without significant risk, will come from the Cloud Management Platform—whether open source or commercial

Open reality: you cannot escape vendors Open means open to everybody, including vendors You still need: Support, integration, services, maintenance, and so on. Open means open to everybody, including vendors, who can dominate or be the sources of any open project, initiative, code, standard, protocol, API, etc You still need: support, maintenance, integration, professional services, etc.

Open reality: open can be more expensive Capital expense often offset with greater operating expense The same goes for migration/transition between cloud providers or platforms Capital expense reduction through lower upfront technology costs can (and often is) offset with greater operating expense for custom implementation, configuration, integration, support, maintenance, upgrades, patching, professional services The same goes for migration/transition between cloud providers or platforms

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Any, some, all of a cloud can be “open"

Open source cloud technologies Hardware: BackBlaze Storage Pods Open Compute Hypervisors: KVM Xen Cloud Management Platforms: CloudStack Eucalyptus OpenNebula OpenStack Storage: Ceph OpenStack Swift Riak Networking: Floodlight OpenFlow Controller Open vSwitch Configuration: Cfengine Chef Puppet Not Exhaustive List

Open APIs AWS OpenStack CloudStack Eucalyptus VMware vCenter VMware vCloud jclouds Deltacloud Not Exhaustive List

Open formats, protocols, standards Association for Retail Technology Standards (ARTS) Cloud Security Alliance (CSA) Cloud Standards Customer Council (CSCC) Open Data Center Alliance (ODCA) Distributed Management Task Force (DMTF) European Telecommunications Standards Institute Technical Council Cloud (ETSI TC CLOUD) General Services Administration (GSA) Institute for Electrical and Electronics Engineers (IEEE) National Institute of Standards and Technology (NIST) Organization for Advancement of Structured Information Standards (OASIS) Open Grid Forum (OGF) Object Management Group (OMG) Open Cloud Consortium (OCC) Storage Network Industry Association (SNIA) The Open Group Telecommunications Management (TM) Forum Not Exhaustive List

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They need solutions that work now They want to pick a winner It’s not just about open source It’s not even primarily about open source It’s about speed It’s about cost It’s about alternatives (to 300lb gorillas)

Thanks Aneel Lakhani @aneel To the Point: When Open Meets Cloud Gartner Data Center Conference December 3-6, 2012 The Venetian Resort Hotel and Casino Las Vegas, Nevada Aneel Lakhani Notes accompany this presentation. Please select Notes Page view. These materials can be reproduced only with written approval from Gartner. Such approvals must be requested via email: vendor.relations@gartner.com. Gartner is a registered trademark of Gartner, Inc. or its affiliates. This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other authorized recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates. © 2012 Gartner, Inc. and/or its affiliates. All rights reserved.