What is Cloud Computing?

 The biggest thing since the web?

-Arkodyuti Saha

How big is Cloud Computing?

-$42 B

Estimated size of the cloud computing
Infrastructure market in 2012, up from
$16B in 2008, IDC October 2008

What is Driving Cloud Computing?

Customer Perspective:
• In one word: economics
• Faster, simpler, cheaper to use cloud apps
• No upfront capital required for servers and storage
• No ongoing operational expenses for running data-center
• Applications can be accessed from anywhere, anytime

What is Driving Cloud Computing?

Vendor Perspective:
• Easier for application vendors to reach new customers
• Lowest cost way of delivering and supporting applications
• Ability to use commodity server and storage hardware
• Ability to drive down data center operational cots
• In one word: economics

What are the Barriers to Cloud Computing?

Customer Perspective:
• Data Security
• Many customers don’t wish to trust their data to “the cloud”
• Data must be locally retained for regulatory reasons
• Latency
• The cloud can be many milliseconds away
• Not suitable for real-time applications
• Application Availability
• Cannot switch from existing legacy applications
• Equivalent cloud applications do not exist

Not all applications work on public clouds

What are the Barriers to Cloud Computing?

Vendor Perspective:
• Service Level Agreements
• What if something goes wrong?
• What is the true cost of providing SLAs?
• Business Models
• SaaS/PaaS models are challenging
• Much lower upfront revenue
• Customer Lock-in
• Customers want open/standard APIs
• Need to continuously add value

The Private Enterprise Cloud:

• Harness the advantages of clouds for the enterprise
• Cost-effective datacenter infrastructure
• Server and storage resource pools
• High Availability and Reliability in Software
• Virtual application environment
• Separation of processing and storage
• On-demand Application Deployment
• Greatly increases server utilization
• Prioritization based on business requirements

Private Cloud Architecture Elements:

• Server Virtualization
• Enable any app to run on any server anytime
• Highly Available Storage
• Network block and file servers
• Low latency, high-bandwidth network
• Enable application mobility in the cloud
• Pre-emptive application scheduler
• Implements business rules and priorities
• Low-cost industry standard servers
• Transcend hardware failures with software

Enterprise Private Clouds:

• Significantly improves average server utilization
• Driving corresponding reductions in CAPEX and OPEX
• Allows the use of low-cost server and software hardware
• Further reducing CAPEX
• Reduces power consumption
• Further reducing OPEX
• Increases control over resource allocation
• Scheduler implements business priorities
• Improves application and data availability
• Consistent mechanisms to deal with HW failure

Cloud Computing Summary:

• Move the application to “the cloud”
• Decouple the user and data-center location
• Software as a service business models
• Google/Yahoo/Amazon/Facebook/etc
• Similar benefits with enterprise applications
• Salesforce, Netsuite, SugarCRM
• Similar benefits for internally developed applications
• Makes software easy to deploy across multiple sites

Conclusions (cont)

• Cloud Computing is the fastest growing part of IT
• Tremendous benefits to customers of all sizes
• Cloud services are simpler to acquire and scale up or down
• Key opportunity for application and infrastructure vendors
• Public clouds work great for some but not all applications
• Private clouds offer many benefits for internal applications
• Public and private clouds can be used in combination

Economic environment is accelerating adoption of cloud solutions.