Cloud Computing Vision or Reality (Slightly Shorter)

Carlos Veira Lorenzo

19-01-2012

Your business technologists. Powering progress


The Context…

▶Buzzword + hype– own convenience (even us)

▶Cloud is young and

complex concept– “lack” of history

– it is still changing

▶Markets = non-additive

ecosystems– dynamic, complex and interrelated

– credible/workable comparisons?

– everyone claims to be a “leader”

2

Conditions of too much uncertainty


Our journey …

3

http://www.flickr.com/photos/esparta/4111703709/

The Foundations

Decomposing Adoption

Looking Forward

Inside Technology

http://www.flickr.com/photos/esparta/4111703709/


The Foundations » Definition

4

“The Transition of the

IT Industry from a

Product-based to a

Service-based Economy”

What it IS Cloud Computing

Source: “How Cloud Vendors lie to you and How they steal your money”Simon Wardley. IPExpo, London. Oct 13, 2009.http://bit.ly/y2SCoi



5

What it IS NOT Cloud Computing


“The Transition of the

IT Industry from a

Product-based to a

Service-based Economy”▶ “IaaS”, “PaaS” or “SaaS”

▶ Virtualization + Data Center Automation

▶ Rebranding what we currently do

▶ Outsourcing



6

EconomyProductivity

InfraestructureArchitecture

SecurityDelivery

Economies of Scale

Pay-per-use

CompetitionMarket

AutomationRapid Provisioning

Self-ServiceSimplicity

Agility

ElasticityOn-Demand

‘Designed for Failure’

Scale-OutResource-Pools

Built-to-Stock

Components

Convergence

Commodities

Multi-Tenancy

Essential Characteristics


The Foundations » Commoditization

7

It is the Life Cycle of any Object and/or Business Activity

Innovation

Custom Built

Product

Commodity

Certainty

Ub

iqu

ity

Services

Utilities

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Examples » The Journalism

Certainty

Ub

iqu

ity

Towncrier

Printed Press

TwitterBlogs

Television

Radio


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Examples » The CRM

Certainty

Ub

iqu

ity

Customer Lists (80s)

Marketing Databases (80s)

Siebel (1994)

SalesForce.com (2002)


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Examples » The IT Infrastructure

Certainty

Ub

iqu

ity

Z3 (1941)LEO (1949)

IBM 650 (1954)

Commoditized HW

Amazon EC2


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AtosSphere



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… driven by market competition …

Certainty

Ub

iqu

ity

Dem

and

for

”New

Stu

ff”

Dem

an

d C

om

pet

itio

n

Improvements on “Current Stuff”

Offer Competition

Funcionality++

Ub

iqu

ity+

+


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… wich splits markets among Leaders and Followers …

Certainty

Ub

iqu

ity

Dem

and

for

”New

Stu

ff”

Dem

an

d C

om

pet

itio

n

Improvements on “Current Stuff”

Offer Competition

‘We’

‘Competitors’

CompetitiveDisadvantage


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… so that we don’t really have a choice …

Certainty

Ub

iqu

ity

‘We’

‘Competitors’

… but keep up with changes…‘Red Queen Hypothesis’Leigh Van Valen (1973)


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… but fosters Innovation through Creative Destruction & Componentization

Certainty

Ub

iqu

ity

Creative DestructionJoseph Schumpeter, 1942

ComponentizationHerbert Simon, 1973

Enables & Accelerates


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The Innovation Cycle: examples » outside.in

Certainty

Ub

iqu

ity

Creative DestructionComponentization

“… Steven Johnsonlaunched outside.inwith 60K $ from a private investor … It would have costed50M $ just5 years before …”

What Would Google Do?Jeff Jarvis (2009)

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The Innovation Cycle: examples » the rise of Search Engines …

Certainty

Ub

iqu

ity

Search Engines

Commoditized HW

National Electrical GridInternet

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It changes consumption expectations …

Certainty

Ub

iqu

ity

+ Efficiency+ Consumption

The ‘Jevons Paradox’William Stanley Jevons (1865)

“Technological progress that increases the efficiency with which a resource is used tends to increase the rate of consumptionof that resource”

< Cost/Unit

+ Units Consummed> Global Expenditure


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… changing our current structural limits too …

Projects

Imp

ort

ance Current IT Limits

UnmetDemand




19

IT becomes a “Cost of doing Business”, rather than a “Strategic Asset”

Certainty

Ub

iqu

ity

Volume Market

Value Market

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http://www.nicholasgcarr.com/articles/matter.html

“... as they become ubiquitous -they become commodity inputs. From a strategic standpoint, they become invisible; they no longer matter”

IT Doesn’t MatterNicholas Carr (2003)

“… there is no direct relation between spending on computers, profits or productivity”

The Business Value of ComputersPaul Strassmann (1990)

http://www.infoeconomics.com/business-value.php




20

In fact, Cloud Computing is about Balancing Risks and Opportunities …

Commoditization

Economies of Scale

Pay per Use

Focus on Core

Speed

Innovation

Transition

Confusion

Governance

• Management, Leadership, Control

Confidence

Security

Transparency

Outsourcing

Suitability

Competence

Cautivity

Strategic Control

Decision




21

… but just remember …

Certainty

Ub

iqu

ity

‘We’

‘Competitors’… we don’t really have a choice but keep up with changes…‘Red Queen Hypothesis’Leigh Van Valen (1973)


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Market Environment » General Outlook

22

The same way the Transport Industry delivers people and “things” …

Car Shuttle Bus PlanePrivate vs. Public

“Price vs. Features” (Flexibility / Agility / Security)



23

… the IT Industry will do it too …

Traditional IT/Private Cloud

HostedVPC*

Community Cloud

IaaS/PaaS/SaaS

Private vs. Public

“Price vs. Features” (Flexibility / Agility / Security)

* VPC: Virtual Private Cloud



24

… though we are still in the early stages of adoption …

Private Cloud

HostedVPC

Community Cloud

XaaS


Private Cloud

HostedVPC

Community Cloud

XaaS

Market Segment / Business Activity / Service Type

Customer/Company Profile

Country(s)/Location(s)


25

Adoption is a complex, multidimensional phenomenon …



26

… and every Business has its own Technology Mix …

Private Cloud

HostedVPC

Community Cloud

XaaS

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… evolving with time, in line with each Business Strategy (hopefully)

Private Cloud

HostedVPC

Community Cloud

XaaS

Co

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an

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... so, there is room for everything!...

The same way IT is an heterogeneous

environment today …

… our experience with Cloud Services is

and will be increasingly Hybrid!

http://www.flickr.com/photos/evelynishere/3327074778/sizes/l/in/photostream/

… what we don’t know is the internal

composition for our own context/market




Market Environment » Decomposing Adoption

29

Projection exercise » Company Size, Delivery Type & Adoption Rate

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

SaaS Public

PaaS Public

Private

IaaS Public

Private

Q

Q

Q

Q

MobilityVerticals

Q

SaaS

MPaaS

M

L

SaaS/PaaSVerticals QM

ProjectsPoCs

QMCapacityVerticals, VDI

L

Virt2IaaSDCiaB, VDI

DCiaB

QQMVerticals

ML


2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

SaaS Public

PaaS Public

Private

IaaS Public

Private


30

… but cross-service interactions can accelerate adoption » Look-out!

Third Parties can also start activities in the

Cloud because of interactions with you!


2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

SaaS Public

PaaS Public

Private

IaaS Public

Private


31

… but uncertainty is everywhere » non linear behavior + high deviation


2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

SaaS Public

PaaS Public

Private

IaaS Public

Private


32

Bottom line: talking about “Cloud Adoption” is meaningless

“There are no diseases, but patients”

Analyze and speak about your own

context/market: strategically & tactically


Market Environment » Looking forward

33

The Cloud is a Building Block of the Future » Gartner

http://cloudcomputing.sys-con.com/node/1939920

5 year projection … 10 year projection …






34

The Cloud is a Building Block of the Future » Gartner


5 year projection … 10 year projection …

Internet of ThingsM2M

NFC

Big Data

AnalyticsBusiness Intelligence

Mobility B2BB2C

BYOC






35

The Cloud is a Building Block of the Future » Atos LookOut Radars

http://lookout.atosconsulting.com/radars/





36

The Cloud is a Building Block of the Future » Atos LookOut Radars


Context-Aware

Smart Objects

Ubiquitous Connectivity

Crowdsourcing

Wearable Computing

Robotics

Digitally Connected Society

Zero Tolerance





37

IT Industry growth model » Less “Bodies” = Services++ & Technology++

Time

Cloud Computing

Outsourcing / Services

Professional Services



38

http://www.flickr.com/photos/artemuestra/2941650098/sizes/m/in/photostream/

Cloud Service Delivery can provide the

cost efficiencies that we all need

But!: we also need have to get ready for a post-crisis context

… growth in a “systemic” crisis context … are you kidding me?

http://www.flickr.com/photos/artemuestra/2941650098/sizes/m/in/photostream/



39

http://www.flickr.com/photos/double-m2/4694962578/sizes/l/in/photostream/

http://www.flickr.com/photos/mad_house_photography/4411839186/sizes/l/in/photostream/

… just do things differently to obtain better results (hopefully)

A different mindset can make the “magic” happen

Not “IT Surgeons” any more!

Let’s embrace the Power Shovel!








Technology » Market roles

40

The Cloud Computing “Sphere”

Consumers

Service Providers

Technology Providers

System Integrators



41

Consumers » Substantially different? Not really … You already (should) do it

http://www.flickr.com/photos/vgb-studios/6605427961/sizes/l/in/photostream/

… they get the benefits:

simplicity, agility, speed & cost effectiveness

… but maturity will always be our duty: SLA’s,

Security, Automation, Governance, …

… not a problem, just an opportunity!







42

Let’s talk about the details: let’s talk about Technology ;-)

http://www.flickr.com/photos/vgb-studios/6605420695/sizes/l/in/photostream/Service Providers


http://www.flickr.com/photos/vgb-studios/6605408553/sizes/l/in/photostream/System Integrators

Technology Providers

They also have to know!


Technology » A Technical Architecture Perspective

43

Cloud(Enterprise Architecture)

Cloud Infrastructure Services

Presentation

Application

Persistence

vA

pp

Presentation

Application

Persistence

vA

pp

Presentation

Application

Persistence

vA

pp

Containerized DesignUnchanged Application Designs

Underlying scale-out Infrastructure

Cloud Architecture

Cloud Service

vNode vNode vNode vNode

RAIN* DesignScale-outDesigned for Failure at the Application LevelStack of Commodity Components

It’s Services what drive Designs, not the opposite » EA won’t disappear

Layered DesignLimited Scale-out

Designed for Failure at the Infrastructure Level

EA*

Containerized DesignSSO* + Integrated BSS* & OSS*

Fabric Computing

* RAIN: Redundant Array of Inexpensive Nodes* EA: Enterprise Architecture* SSO: Single Sign-On* OSS: Operational Support Services* BSS: Business Support Services



44

Different worlds … different Business Strategies

Cloud(Enterprise Architecture)Cloud Architecture

▲Cheap Technologies– Commodity DC* + HW + OSS*

▶Ad-hoc Applications &

Infrastructure– Skilled Teams + New/Evolved Processes

– “DevOps”: boundaries gets blurred

▲Service-based Automation– Infrastructure semantics can be ignored

– Business-oriented semantics!

▼Costly!– Enterprise DC* + HW + COTS* Layers

– Increasingly bigger with Time & Scale!

▲ IT Investment Protection– Skills + Engineering Patterns & Practices

– Virtualization + New/Evolved Processes

▶ Infrastructure-based

Automation– Infrastructure semantics matter

– Infrastructure-oriented semantics

– Virtualization silos

* OSS: Open Source Software* COTS: Commercial Of The Shelf* DC: Data Cener



45

▲Commodities don’t care

about Feature

Differentiation– Commodity DC + HW + OSS

▼ IaaS don’t care about

Feature Differentiation on

COTS– Multivendor IaaS “standardize” APIs on

commonalities; (i.e: OpenStack)

Cloud(Enterprise Architecture)Cloud Architecture

Different worlds … different Business Strategies

Why invest in “Products” for “Features”

that we will never use?



46

The World is not static » Enterprise Apps “consume” new Tech “on Upgrade”

Layered Design

EA

Technology Builders

EA Solutions will, eventually, became SaaS

Carlos Veira Lorenzo 47

Infrastructure Service/Application

“World of Products” “World of Code”

SaaS/BPaaSIaaS

Systems IntegrationManaged Services

Structural

Risk

Map

▶ Standard

Transports

▶ Infrastructure

Semantics

▶ Ad-hoc Data

Transformations

▶ Information

Schemas

▶ Semantic

Mappings

▶ Data

Formats

▶ Vertical Industry

Information

Brokers/Exchangers

▶ Product

Behaviors

▶ Infrastructure

Products/Services

+-▶ Hard-coded

Mappings

▶ Product

Settings▶ Web Services

▶ Code

▶ Labor

Intensive

▶ Technology

Intensive

▶ Mix of Technology

and Labor

▶ Scripts

▶ Architecture

▶ Patterns


Lock-in Risks not structurally “differential”: the ecosystem is just bigger

Not everything is equally risky!

Divide and Conquer!



“Orchestration”▶ Element

Management▶ BPM*

▶ Workflow & Process

Automation

It doesn’t exist a clearly “Functional Frontier” for

each Technology Domain!

* BPM: Business Process Management

Lock-in Risks not structurally “differential”: the ecosystem is just bigger


* CSA: Client/Server Architecture

EACSA*

Legacy Systems

An Appliance Strategy can simplify EA


Lock-in risks are not structurally “differential”: the ecosystem is just bigger

Every component evolves

and changes with time!


http://thinkinbig.org/index.php/2011/05/thinking-about-cloud-strategy/

http://blogs.the451group.com/information_management/2011/04/15/nosql-newsql-and-beyond/


* OSS: Open Source Software




















» Explosion of Data Persistence Services

» Massive scale-out/elastic semantics


Mitigation: OSS*; Engineering patterns;

Technology ubiquity degree; vendor selection

* OSS: Open Source Software


















Subsystem Map for Hybrid, Multi-Cloud, and Multi-Technology Environment

Operational Support Services

Self-Service Portal

• API

Service Automation

Service Desk

• Incidents

• Problems

• Changes

Configuration MonitoringCapacity &

Performance LicensingProvisioning

& LCMService Level

Cloud Service/Fabric Controller

VMWare

• vCloud

• vSphere

• vFabric

Microsoft

• System Center

• Hyper-V

• Azure

Citrix

• XenDesktop

• XenServer

• Cloud.com

RedHat

• RHEV

• KVM/SPICE

• OpenShift

OpenStack

Amazon

RackSpace

…

SalesForce

NetSuite

SAP

…

Traditional IT

* SAL: Service Abstraction/Adaptation Layer* ESB: Enterprise Service Bus* EAI: Enterprise Application Integration

SAL* SAL* SAL* SAL* SAL* SAL* SAL* SAL* SAL*

Business Support Services

Service Catalog

Ordering Pricing Rating Billing Metering Entitlement

Accounting

• Payables

• Receivables

• Clearing

SAL* SAL* SAL* SAL* SAL* SAL* SAL*SAL*

ESB*/EAI*



It is a (complex) Cloud Ecosystem has his own Life Cycle …


Self-Service Portal

• API

Service Automation

Service Desk

• Incidents

• Problems

• Changes



& LCMService Level


VMWare

• vCloud

• vSphere

• vFabric

Microsoft

• System Center

• Hyper-V

• Azure

Citrix

• XenDesktop

• XenServer

• Cloud.com

RedHat

• RHEV

• KVM/SPICE

• OpenShift

OpenStack

Amazon

RackSpace

…

SalesForce

NetSuite

SAP

…

Traditional IT

SAL* SAL* SAL* SAL* SAL* SAL* SAL* SAL* SAL*


Service Catalog


Accounting

• Payables

• Receivables

• Clearing

SAL* SAL* SAL* SAL* SAL* SAL* SAL*SAL*

* SAL: Service Abstraction/Adaptation Layer* ESB: Enterprise Service Bus* EAI: Enterprise Application Integration

ESB*/EAI*

… Evolves with time asynchronously !



… fortunately, there are different Priorities, Risks, Efforts & Maturity


Self-Service Portal

• API

Service Automation

Service Desk

• Incidents

• Problems

• Changes



& LCMService Level


VMWare

• vCloud

• vSphere

• vFabric

Microsoft

• System Center

• Hyper-V

• Azure

Citrix

• XenDesktop

• XenServer

• Cloud.com

RedHat

• RHEV

• KVM/SPICE

• OpenShift

OpenStack

Amazon

RackSpace

…

SalesForce

NetSuite

SAP

…

Traditional IT

SAL SAL SAL SAL SAL SAL SAL SAL SAL


Service Catalog


Accounting

• Payables

• Receivables

• Clearing

SAL SAL SAL SAL SAL SAL SALSAL

Changes with every Customer and Service Provider! …


… There is no single or right answer!


Customer Requirements are/should be a “World of Terms & Conditions”

Customer A

Customer B

Customer C

…

Customer N

Service

Provider

The risk of new customer-based silos

is very real …

Difficult to achieve standardization,

industrialization and further Innovation


…not a “World of RFPs*”!

* RFP: Request for Proposal


Opening to a wider landscape » A complex ecosystem of federated services


▶ A federation of live components

▶ A (eco)system by itself

Complexity evolves

Asynchronous with time!

▶ Asynchronous & chaotic behavior

▶ Complex & heterogeneous in nature


The asynchronous “ocean” of Cloud orchestration complexity …

Customers (C) Service Providers (S)

Countries/Regions (R)

Potential Complexity = C * R * S


http://www.flickr.com/photos/smemon/5983673322/sizes/o/in/photostream/




58

… it is, actually, a multi-level mesh …





59

… it is, actually, a multi-level mesh …

Business transparency is key!





Choreography

Domain

60

… and a multi-domain one …

Orchestration

DomainOrchestration

Domain

Orchestration

Domain

It has impact on contracts, customer

expectations and UX*!

* UX: User eXperience




… fortunately, not every relationship matters the same

PaaS

SaaS

/BP

aa

S

▶ Consolidated Command & Control + Read-only Billing

▶ Infrastructure Semantics

▶ Consolidated Command & Control for certain Application Domains

▶ Consolidated Read-only Billing

▶ Service Semantics


▶ Infrastructure Semantics


▶ Infrastructure + Object Semantics

▶ Consolidated C&C* for more App Domains

Public▶ Consolidated Command & Control + Read-only Billing

▶ Infrastructure Semantics Private

IaaS

▶ Unified Billing (?)

▶ Unified Service Desk Experience

▶ C&C* Run-time Advisor***

▶ Unified Read-only Service Dashboard

▶ Unified Read-only Risk/Audit Dashboard

▶ Service Benchmarking


▶ Unified Read-only Business Dashboard**▶ Unified Read-only Service Dashboard




Hybrid

* C&C: Command & Control** Requires Application Instrumentation + Integration*** Requires Run-time Analytics


▶ Unified Read-only Business Dashboard**▶ Unified Read-only Service Dashboard




No

w!


Prioritization + read-only aggregation


http://www.flickr.com/photos/duncanh1/5471899402/sizes/l/in/photostream/

Let’s recap!




Cloud Computing = Product-based to a Service-based Economy

Cloud Computing follows the “standard” Innovation Lifecycle

Be prepared for post-crisis context and cloud

computing can help in that turn

With cloud, consumers get all benefits but maturity will be always their duty

Lock-in risks not structurally “different” just the IT eco-system is bigger

The risk of new customer-based silos is very real and can block innovation


Carlos Veira Lorenzo Your business technologists. Powering progress

www.atos.net

Atos, the Atos logo, Atos Consulting, Atos Worldline, Atos Sphere, Atos Cloud and Atos WorldGridare registered trademarks of Atos SA. July 2011© 2011 Atos. Confidential information owned by Atos, to be used by the recipient only. This document, or any part of it, may not be reproduced, copied, circulated and/or distributed nor quoted without prior written approval from Atos.

Thanks

For more information please contact:


[email protected]

twitter: @cveira

+34 695 671 417

Atos Spain S.A.

Albarracín 25

20037, Madrid

http://www.flickr.com/photos/granpapa/299317857/sizes/l/in/photostream/



Cloud Computing Vision or Reality (Slightly Shorter)

Technology

Transcript of Cloud Computing Vision or Reality (Slightly Shorter)