0. 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 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.

1. (Enterprise) + Cloud + Open
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(Enterprise) + Cloud + Open

2. 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
Reducing the cost of IT
Developing or managing a flexible infrastructure
Expanding the use of information and analytics
Improving IT management and governance
Improving business alignment and relationship
Implementing mobility solutions * * *
Consolidating IT operations and resources
Implementing business process improvements
Improving IT organization and workforce
Implementing Cloud (SaaS, IaaS, PaaS) * * *
* New response category
Number = 2,338

3. 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)

4. Enterprise + (Cloud) + Open
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Enterprise + (Cloud) + Open

5. 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

6. 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
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.

7. 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
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.

8. 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)

9. 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

10. 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

11. Enterprise + Cloud + (Open)
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Enterprise + Cloud + (Open)

12. 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.

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

14. Evaluating openness

15. 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.

16. "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)

17. “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."

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

19. 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

20. 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

21. 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.

22. 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

23. Enterprise + (Cloud + Open)
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Enterprise + (Cloud + Open)

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

25. 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

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

27. 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

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

29. 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)

30. 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 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.