1. Cloud Computing Larry Gottschalk Computer Science Faculty Metropolitan State University

2. Definition The movement of computing from the desktop and corporate servers to computing services (on a myriad of hosts/servers). Striking similarity to service bureaus and time- sharing systems of 40 years ago. Biggest difference: now is internet connections, instead of dedicated phone lines.

3. Analogous to Elec Utility Billed for services used Separate bill from each utility used Visibility to infrastructure costs (unlike now with x employees, y servers used for both development AND operations) “on demand computing” says it all

4. Drivers Cost to maintain applications on desktops, departmental and enterprise servers is astronomical, and not getting better. Distraction of IT staff by doing maintenance Service level management also is outsourced. Reliability (service level can be contract item) Cost: 18% lower; electric power 16% less Abililty to experiment with one or two apps

5. Cloud Architecture Large server farms Linked by high-bandwidth connections Carefully managed, highly tuned.

6. Cloud Major Players The usual heavy hitters have entered: – Oracle – IBM – Yahoo – Amazon – Google – Microsoft – Qwest, and other phone companies

7. Terminology Cloud Computing also referred to as: – On demand computing – Software as a service – The Internet as platform (First two phrases worked back in time sharing days also.) Virtualization: – Location of service hidden behind generic URL – Variable number of servers running your app(s) Done with high speed links within server farms

8. Different Offerings The next four slides list discrete market offerings of Cloud Computing: – Infrastructure as a service (Most important) – Software as a service (2 nd most important – Desktop productivity tools into the cloud(minor) – “dumb terminals” serviced by cloud (minor)

9. CC: Infrastructure as a Service (IAAS) This is the time-share of 40 years ago. You can move your corporate apps to the Cloud. The Cloud provider is responsible for uptime, and for restarting apps when they crash. Enterprise gains dynamic scalability (if have contracted for it) Enterprise gets locked into vendor APIs – API== “Application Programming Interface”

10. CC: Software as a Service (SAAS) Second most important segment Useful applications: – Customer contact tracking – Market research – Engineering applications – ERPs – Industry specific apps in Petroleum, Engineering, Medicine, Transportation

11. CC: Desktop productivity tools into the cloud Minor segment Desktop productivity becomes remote service: – Google docs – Buzzword (bought by Adobe) – Photoshop Express

12. CC: “dumb terminals” serviced by cloud Minor segment Some (10%?) of PCs will have no OS nor even browser. Simply a boot program to download and start the server apps. Examples of dumb-terminal emulation s/w: – eyeOS system – AIR (formerly Apollo) from Adobe – Open-Laszlo, an open-source project

13. Restraints to adoption Disruptive Price appears as line item CEO can criticize CIO’s desire to build empire Lots of re-packaging without innovation, which is masked by excessive hyped marketing

14. Other restraints to adoption Privacy: can leaks of data be prevented? Security: will data ever be lost? (no FDIC for data) Reliability: can level of service guarantees be met? Ownership issues – If you terminate subscription and you discover you need a document, can you get it? – Can you really ever delete a document? – If gov’t subpoenas your data, will you even be told, and ever be told whether data was surrendered or not.

15. What does future hold? Possible Probable Desirable

16. Possible Worst case: there are one or two disasters written up widely, causing pulling back by clients. Bad case: huge cost of outsourcing becomes better understood Good case: 40 to 60% of Enterprise Computing gets outsourced Best case: Enterprise computer centers wither.

17. Probable Innovation will continue, with massive value for customers Market may get overheated with everyone jumping in, and customers oversold In lead now are Google, Amazon, VMWare, Citrix, Microsoft, HP, and IBM. Innovators at this time are Google, Amazon, and VMWare.

18. Desirable Cloud computing is seen as alternative to in- house processing. Each firm strikes a balance between the two depending on its own values. – Ownership of data – Ability to determine own destiny – Desire to get out from under maintenance. Example: Target.com vis-à-vis Amazon.

19. Lots of new entrants The startsups will or are becoming IPOs McAfee and Verizon teaming up Cisco/EMC joint venture (large storage) Compuware (application monitoring) Rackspace Cetrom/ASCIIgroup joint venture (CaaS) IBM SmarterPlanet

20. DOD RACE (Rapid Access Computing Environment) Claims 99.99% availability (53 minutes down / year)

21. Discussion questions What industries or market segments will become adopters beyond just the mission critical apps? – Large firms? Medium firms? What are effects on vendors to IT: – Server market – Large storage market