1. 1 Kosmas Kitsos Hewlett Packard Greece and Cyprus September 2010 Design and deployment of Clouds: a view of practices, challenges and experiences

2. 2 Cloud computing defined “Cloud computing is a style of computing where scalable and elastic IT-enabled capabilities are delivered as a service to external customers using Internet technologies” Source: Gartner, Inc. “Cloud Computing Key Initiative Overview” by David Cearley, February 5, 2010 Dedicated delivery Infra App Data Platform Infra App Data Platform Infra App Data Platform App Data Platform IaaS Infra App Data Platform App Data Infra App Data Platform Data PaaS SaaS Infra App Data Platform SaaS User 1 User 2 User 1 User 2 User 1 User 2 User 1 User 2 User 1 User 2

3. 3 CloudIaaSUtility computing Outsourced, co-location Provisioning Minutes Hours to days (2-3)Weeks (4-6) Service ordering On-line/self provisioning Online/self provisioning Portal once agreement established - manual Purchase order - manual Processors Virtual X86 Virtual or physical X86 Virtual or Physical x86/Itanium/ RISC based Any choice Scale up/ scale down Automatic – minutes Plus in minutes/ minus monthly Plus in days (2/3)/ minus monthly Your choice (4-6 weeks) Application types Multi-tenant (virtual hosting) Single tenant or multi-tenant users (Dedicated or virtual hosting) Single tenant user, parallelized or not (dedicated hosting) Your choice Data transfer Internet Internet or physicalDedicated Payment By actual usagePer month At order or per month As simple comparison of Delivery models

4. 4 One cloud community, many requirements ENTERPRISE IT  Hybrid service environment  Cost and value transparency  Control + security SERVICE PROVIDERS  Standardized services  Quality of service  Predictable growth APP DEVELOPERS  Open scalable apps  Full lifecycle management  Agile growth environment HP

5. 5 HP offerings for the enterprise ENTERPRISE IT APP DEVELOPERS SERVICE PROVIDERS CREATE HP CloudStart HP Cloud Discovery Workshop PROVIDE HP Cloud Roadmap Service HP Cloud Service Automation CONSUME HP Business Process as a Service HP Infrastructure as a Service HP Software as a Service HP

6. 6 HP Cloud Services MarketsHP Cloud services ConsumerSnapfish Print/publishMagCloud IT managementITSM + BSM App managementTesting + assurance Public sectorSchoolCloud Traditional Offerings still exist: Adaptive Infrastructure as a Service, Utility Services

7. 77 Companies and gov rely on HP –7–7

8. 8©2009 HP Confidential8 Some references Scope: –4,000,000+ users –13 facilities –445,000 sq ft raised floor –34 mainframes –6100 servers –3800 terabytes of Storage –2,800 application / database instances –215 software vendors Benefit: – Reduced costs & simplified processes – Improved time-to-market from 6 months to 24-hours (test/dev) – 72 day SLA for production system time-to-market will soon be 72-hours – 99.99% uptime since inception – Security accreditation process reduced from 80 days to 40 Scope: – Deploy and manage1,500 servers during 9-months project window with zero hours from infrastructure team required Benefit: – Saved 12,000 man hrs – from 8 hrs per server to ZERO – Reduced the delivery time from 5 months to 2 hours – Saved 5,000 man hours and reduced timeline by 1 month during data center migration – Broke “server hoarding” culture 500 servers reclaimed at the end of their lease period Saving approx $750,000 CAPEX – Utilization in the new environment is up to 80% from as low as 3% before Scope: – Provide a highly resilient, on- demand computing infrastructure for the business – Improve the cost to management ratios – Deploy capacity on demand to meet changing business requirements – Provide high availability configurations to meet capacity – Information transparency for cost management and chargeback Benefit: – New revenue generating product capability delivered to the business Global Bank Government Agency Telco

9. 99 Delivery models: the customer perspective –IaaS: for administrators or tech savvy consumers –PaaS: for development aware consumers –SaaS: for all consumers Shared SOFTWARE services Shared PLATFORM services Shared INFRASTRUCTURE services SERVE RS NETWORK STORAGE POWER & COOLING MANAGEMENT SOFTWARE

10. 10 The problem: use the existing or go for new ? Scalable Cloud Solutions for any business needs HP Heterogeneous Cloud Solution (IaaS/PaaS/SaaS ) Encompasses comprehensive reference architecture Highly customizable for complex needs Integrates HP and 3 rd party software for holistic solution HP Cloud Service Automation (IaaS/PaaS) Tuned Software and services to run your applications Enables integrated infrastructure and platform services Focused cloud solution in your infrastructure HP BladeSystem Matrix + CloudStart (IaaS) HP Converged Infrastructure and Technology on HP hardware Services to deliver the ideal foundation for shared infrastructure Built for speed. IaaS Now.

11. 11 Example: HP Enterprise Services Labs The Enterprise Services Labs (esLabs) service is designed for hosting non-production infrastructures for engineering, development and testing environments. Our charter is to support a standardised product development lifecycle with high quality, cost effective capabilities that deliver quantifiable value. Enterprise Labs Infrastructure -as-a- Service Security Virtual Server Farms DBMS Services Midrange Servers Backup Network Remote Access Monitoring Automatio n Storage

12. 12 Money: are there benefits of scale in “small scale” ? Cost Leadership –Optimize your presence Hardware Optimize cost of individual datacenter components Economies of scale Differentiation Move to virtualization /cloud services Service Optimize return of entire datacenter Flexibility & elasticity Business requirements Absolute lowest CapEx and OpEx Instant time to market Direct B2T connection Global scalability Flexible demand support Technology requirements Massive datacenters Large orders Intense energy focus Elastic on global scale Intelligent storage Resiliency in software only

13. 13 Traditional Costs vs Cloud (no bandwidth) Traditional Costs 1:50 Admin 1000VMs Cloud Initial Setup Storage ThinP Servers Networking Storage Cost Benefit Mostly from automation Competitive Differentiation Power Cooling Admin Maintenance SW Servers Networking Storage Power Cooling Admin Maintenance SW Servers Networking Storage Power Cooling Admin Maintenance SW Aggressive concurrency Economies of scale Use intelligent SLAs Servers Networking Storage Power Cooling Admin Maintenance SW Low cost Servers Networking Storage Power Cooling Admin Maintenance Servers Networking Storage Power Cooling Admin Maintenance Intelligent sourcing Benefit from technology changes over time The only way to accurately track cost changes in components

14. 14 COST OPTIMIZATION EXAMPLES HP Utility Ready Computing Service: www.hp.com/go/utilityreadycomputing HP Utility Ready Computing Service CAPABILITIES Utility Ready Computing is a strategic HP offering delivered through a service contract, providing proactive, reactive, and automated services and BladeSystem capacity based on a euro-per-blade- per-hour price. The price is fixed for the contract. The blades are owned by HP but managed by the customer on their site and metered and billed monthly based on usage. Provides dial up/dial down compute capacity Density optimized for the data center Extreme scale out datacenters with lean management Shared infrastructure for accelerated service delivery Purpose built scale-out product lines: example servers

15. 15 Time: how long does it take ? –Component lifetime is1/3 of DC expected lifetime. –At least 1 or 2 technology refreshes must be planned during the lifetime of the project. –The most frequent reason of financial model failure is the absence of MLU (Middle Life Upgrade) –B2T model: Business to Technology –HP: Interoperability, Planning. –According to existing trends: –12 months to begin –12-24 months to accumulate usage (utilization) –Utilization is what counts, so lack of utilization magnifies the apparent cost of the service

16. 16 From bare floor to cloud within 30 days, users can: 1. Request a compute service via a portal 2. Have service provided immediately 3. Use the service without worrying about security, management, etc 4. Scale or cancel the service 5. Get a regular report on consumption or chargeback Service Delivered Service Requested * Based on typical duration time after hardware and software installation as well as consulting service terms and conditions Industry’s most complete, turnkey cloud solutions Example Solution: HP CloudStart

17. 17 Know-how: the cloud ecosystem –Who has the know-how ? –Normal selling motion and purchasing motion is disturbed –New SLAs negotiated –“Moving to the cloud” competencies –Redefine competencies. Time element. –Learn to live in the new world where the service consumer knows more that the service seller…about the service Adapted from Gartner 2009 Customer Defined Service Application Infrastructure Technology Carrier Defined Application Provider Technology Provider Utility ICT Enabler/ Provider

18. 18 Where is the real know-how (examples) –Statistical multiplexing of VMs (place them where…, move them when…) –VMs versus bandwidth allocation techniques –Different sourcing mechanisms –Different sourcing mechanisms for bandwidth –Application transformation for Intelligent SLA creation –User control : the notion of VPC (Virtual Private Cloud) –SLA definition Cost contribution

19. 19 Affordable, on-demand testing solution available on Amazon EC2 HP LoadRunner in the Cloud –On-demand On-demand software increases agility in performance testing, even in unplanned, ad-hoc situations –Affordable Leverage market leading technology with affordable hourly rates to optimize application performance –Expandable Self-service access to flexible, scalable testing infrastructure – no waiting for hardware, no capital investment Storage Controller + Vugen + Analysis Load Generators On-Premise Application Under Test (AUT) Tester Cloud- Based Application Under Test (AUT)

20. 20 Competition and Content ? –Content –Standardization is a requirement for cloud. –If you can “process-describe” it then you might be able to “cloudify”. Otherwise you cannot. –Fight the tendency to define application hosting as “Software as a Service”. –Get ready for brokering –Burst to other clouds –Expand SLAs to other providers –Unique solutions from HP –Competition –Is there any competition in G Clouds ? –In what form ? –Co-opetition in agencies. –Comparison of cost models versus commercial offerings (see apps.gov) –There is nothing free (although it appears to be). –As you define “stricter” SLAs you move away from cloud into “utility computing”

21. 21 Comparison of models Network service providers Cloud service providers Internal private services Hosted service providers Managed service providers Business IT Hybrid Service Portfolio Your Customers… You will be brokering Who use these… Must use these… But they have other options too…

22. 22 Designing based on “competition” 2 Size to get Market Price for SLA Total Market Gov Market Min size to get scale benefits Size To get Price for SLA Movable Non Movable. Old and movable To Cloud Non Movable Resistance To Move New <2 years New Min size to be “competitive” Define your Competition Define your financials Target Market SUSTAINABLE Size

23. 23 Example: HP Aggregation Platform for SaaS Telco’s Cloud Services SaaS Provide r Customer Unique customer experience for ordering services Pay one invoice for IT and Com. Services Give employee details once Increase Security Quality Assurance b-b SLA b-c SLA Activate Billing & Management Catalogue

24. 24 GS1 Community private cloud development Problem  Difficult, costly and error-prone track and tracesystems Solution  Standardizes the recall form and process improvingspeed, accuracy, effectiveness and compliance  Ensures only authorized & approved recalls areissued  Real-time messaging & look up of current status  Provides self registration/payment for receivers  Subscription based model for users  Standardizes the recall form and process improvingspeed, accuracy, effectiveness and compliance  Ensures only authorized & approved recalls areissued  Real-time messaging & look up of current status  Provides self registration/payment for receivers  Subscription based model for users  A cloud-based recall service that traces andremoves potentially harmful food products fromthe supply chain Results

25. 25 HP is your partner in bringing all of the pieces together Service portfolio and catalog Sourcing and governance Shared services and service management Utility-based services, metering and reporting Training and professional services Support strategy HP provides Scalable cloud solutions that include hardware, software and services BUT MOST IMPORTANTLY Is your consulting partner for real world cloud problems: Advanced Delivery and Deployment Models Quick Time to Deployment Advanced Cost Optimizations Competitive know-how Cloud ecosystem awareness and usage

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