1 CloudArena What Cloud Should Fit You? 2012 ? ? Gary Ramsay, OpSource 10 th October, 2012

2 Agenda High level definitions and cloud models Business drivers for Cloud Probable cloud adoption journey Questions and Answers

3 Cloud computing – a simple definition, major disruption! Cloud Computing: “IT resources and services that are abstracted from the underlying infrastructure and provided “on- demand” and “at scale” in a multi-tenant environment.” Cloud Computing: “IT resources and services that are abstracted from the underlying infrastructure and provided “on- demand” and “at scale” in a multi-tenant environment.”...such a simple concept...yet so much confusion! Buying IT components as a ‘Service”: Source: Gartner

4 Explaining the definition...in simple ways! Cloud Computing: “IT resources and services that are abstracted from the underlying infrastructure and provided “on- demand” and “at scale” in a multi-tenant environment.” Cloud Computing: “IT resources and services that are abstracted from the underlying infrastructure and provided “on- demand” and “at scale” in a multi-tenant environment.” “IT resources and services that are abstracted from the underlying infrastructure … …and provided “on-demand” … … and “at scale”… …in a multi-tenant environment.” Most architectures today are closely coupled – and have strong dependencies between underlying elements. All these aspects have to be changed – and elements have to be SEPERATED from each other…this is most often achieved via VIRTUALISATION “on-demand’ implies one only sources or buys what you need In order to do this a HIGH order of automation is required – to allow one to ‘turn on or turn off’ capacity “at scale’” refers to sourcing at a better rate than one can do oneself New providers that focus in one area and have many clients have better scale – and thus this typically refers to sourcing from a provider This refers to the architecture that providers use to deploy and deliver services. It is a way to used shared infrastructure for dedicated offerings

5 Characteristics of cloud computing Pay-per-use Self-service Standardized Multi-tenant On-demand Scalable Network-based Abstracted Easy-to-use

6 Cloud Definition from NIST PublicPrivateHybridCommunity Deployment Models Service Models Software as a Service (SaaS) Platform as a Service (PaaS) Infrastructure as a Service (IaaS) Essential Characteristics On-Demand Self Service Global Secure Access Utility Billing Elastic Scale Automation Orchestration NIST = The National Institute of Standards and Technology

7 Cloud computing service models

8 Cloud Services … examples PaaS (Platform-as-a Service) SW development frameworks Application suites CaaS (Communications-as-a-Service) Conferencing (Web, Voice, Video) Video Bridging and Switching Messaging Presence Productivity SaaS (Software-as-a-Service) ERP CRM Service Desk Mail Applications Messaging Applications Social Networking IaaS (Infrastructure-as-a-Service) Data Centre Compute Infrastructure Storage Resources Database WAN services Contact Centre Infrastructure Cloud computing service models

9 Basic definitions: IaaS cloud types Private Cloud Public Cloud Hosted Private Cloud Virtual Private Cloud Hybrid Cloud Community Cloud A Cloud architecture that is deployed for the sole use of a single enterprise – and reside on the enterprise premise (i.e. on-premise) A Cloud architecture that is deployed for the sole use of a single enterprise – but hosted by a cloud services provider (i.e. off-premise) A Cloud architecture that is deployed for the provision of public cloud services – a cloud architecture that serve multiple enterprises – hence sharing of underlying infrastructure elements occur (to varying degrees, based on the actual service type). A dedicated partition within a Public Cloud architecture that is allocated to a single enterprise – hence certain elements of the architecture are shared, while others are dedicated to a single enterprise (related to the service type). A Cloud architecture that is made up of a combination of previous Cloud Types – most often a combination of Private and Public Cloud Architectures (once again related to the service types). A Public Cloud Architecture for the provision of cloud services to a specific or limited community or segment or vertical.

10 Basic definitions: cloud types and service types Aligned to: National Institute of Standards and Technology (NIST), Information Technology Laboratory To some, clouds are associated with an off premise, hosted model…

11 The business benefits of cloud computing…drivers...why would one not consider these benefits? Business continuity Technology independence Operational complexity Specialised skills Risk optimization Time-to-market Innovation New business models Resource leverage Strategic agility No capex, less assets Pay-as-you-use On-demand capacity Elasticity Economies of scale Time-to-value Cost optimization

12 Cloud has appeal to different buyers “I need a market analytic tool now. I don’t care how it’s delivered to me” Marketing Manager “I don’t want to go through the process of a CAPEX request for an application I’m only going to need for 6 months” HR Manager “Our staff need access to our inventory management system in real time when they're on the road” Sales Manager “Where our tools are stored doesn’t matter to me. I just want our virtual team to be sharing work and collaborating as soon as possible” - Project Manager

13 Cloud Services, WW Share by Industry Sector The high-tech, manufacturing and financial services sectors and the public sector will continue to be the most-aggressive adopters of cloud services through 2015 The North American market continues to be, by far, the largest regional market representing 60% of the global market currently, but growth in China remains of interesting potential. Financial services organizations in aggregate represent the largest users of public cloud services. Gartner predicts the fastest growing revenue generating segment of public clouds will be storage services (89.5%) followed by Compute Services (47.8%) and supply management (39.5%).

14 DriversAdoption rate Cloud Services: Adoption by market segment will vary Global Financial construct Agility…IT and Biz Architecture itself Have scale, will pursue architecture Private Clouds first Test Public Services…non-core Prefer “gorillas” due to risk International Financial construct Agility…IT and Biz Time to market and growth risk Scale in home markets only Private and hosted private clouds Test public services…non-core Domestic Affordability and leverage scale Agility and competitive risk Time to market and growth risk Regulatory compliance impact Private and hosted private clouds Test (I/C) public services…non-core Mid market Cost Access to IT functions Agility…somewhat More risk tolerant Hosted private and public cloud All service types…non-core and core SMB Cost, cost, cost Ability to do it oneself Access to IT functions Early adopters and rapid rate Mainly public cloud services All service types…core apps

15 What are customers’ business and IT triggers for cloud computing? TriggersReasons Reduce IT ComplexityToo many systems, vendors, moving parts Reduce OPEXSpending too much time maintaining and managing IT Improve work-force productivityNeed new collaboration tools, on-demand Efficient use of resourcesUnder or over utilized silos of resources Improve Test/Dev cyclesProvide cost effective on-demand, self-service Test/Dev environment Tech-refreshUpdate ageing infrastructure, software, skill set Make IT agile and aligned with business needsScale, support new and existing business workloads effectively Reduce CAPEXHigh cost of buying systems, deprecation of assets fast, need a pay-as-u-use model Expedite time-to-market of revenue generating services Takes too long to develop, test and provision new services

16 Most likely cloud adoption journey

17 How will the “Cloud” be used? Private Cloud New apps – ‘hosted’ SaaS Current apps – ‘hosted’ SaaS Dev/test/simulations – on demand, self service Cloud Hosting Enterprise apps Departmental apps Customers apps Partners apps Suppliers apps Employees used apps – cloud hosting Dynamic or fluctuating workloads – cloud hosting Stable workloads Legacy apps Temporary apps Public Cloud New apps - as SaaS Current apps – as SaaS Dev/test/simulations – on demand, self service Cloud Hosting Enterprise apps – non critical Departmental apps – non critical Customers, partners, suppliers apps Employees used apps Stable workloads Cloudbursting for peak workloads Legacy apps – non critical Temporary apps – non critical

18 Applications Driving Demand for Cloud Computing Test and Dev Internal Applications and SaaS Mobility StorageBusiness Continuity Integration Testing Growth projects are accelerating the pace of software development

19 Drivers of cloud computing are different for each client Strategic Tactical IT-Led Business-Led Agility and Growth Reduce Cost Mobility and SaaS Reduce Risk Speed Delivery of Growth Projects Reduce Cost Flexible Infrastructure Reduce Complexity Avoid Procurement Delays Consolidation Virtualization IT-as-a-Service

20 Which type of “Cloud” is best? Security Performance Flexibility Scalability Private Cloud Public Cloud Security Performance Flexibility Scalability Private Cloud Public Cloud

Probable Customer adoption: What we are seeing Key Findings: The cloud model is a new consumption model of technology and services The business benefits of cloud models are compelling – in many ways Adoption will need to be structured – and support existing business systems Most likely end state: hybrid model The move to cloud services is a journey over time… …and all is not equal! Most likely adoption approach Hybrid cloud model preference 4 Leverage of public cloud services 3 Building private cloud architectures 2 Cloud enablement projects 1 Emergence of public cloud models Customer will in future buy services in a combination of: On-Premise, Private and Public Cloud Customer will in future buy services in a combination of: On-Premise, Private and Public Cloud

22 Private clouds are difficult to build…move to Public User Interface and API Development Software Development Metering, Billing and Charge Back Federation Across Clouds, Single Pane of Glass Network Access and Configuration Automated, Real-Time Provisioning Lack of In-House Expertise Launching Public Cloud: roadmap planning, new feature adoption, software and UI development, upgrades, interoperability, patches, change management, performance envelopes, compliance, security, etc.

23 Thank You! Questions? Don’t fear the cloud…