Impact of cloud computing on the software industry
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Impact of Cloud Computing on the Software Industry
Anand DeshpandeNovember 2010
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Personal History and Biases
• Founder and CEO of Persistent Systems.• Established in 1990.• Leader in outsourced software product development.• We work with more than 250 Customers, 5000+
employees.
• Responsible for tracking Technology and for sales. Personally, track database technologies.
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Cloud computing
and mobile devices
will transform the
software industry.
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What is driving the adoption of cloud computing?
Economics.
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What is driving the adoption of cloud computing?
• Illusion of infinite resources• No up-front cost• Fine-grained billing (e.g. hourly)
Utility Computing: Pay-as-you-go computing promises substantially reduced cost.
Economics.
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Unused resources
We are grossly over-provisioned
• Capacity includes:• Computer Servers• Storage• Software Licenses• Network bandwidth• Energy• Air Conditioning • Rent• Maintenance Costs• Operator Staff
Static data center
Demand
Capacity
Time
Resources
Slide Credits: Berkeley RAD Lab
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Heavy penalty for under-provisioning:Poor quality of service – lost customers.
Lost revenue
Lost users
Reso
urc
es
Demand
Capacity
Time (days)1 2 3
Reso
urc
es
Demand
Capacity
Time (days)1 2 3
Reso
urc
es
Demand
Capacity
Time (days)1 2 3
Slide Credits: Berkeley RAD Lab
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Ideally, want optimal provisioning of capacity across all resources.
Static data center
Data center in the cloud
Demand
Capacity
Time
Resources
Demand
Capacity
Time
Resources
Slide Credits: Berkeley RAD Lab
Reso
urc
es
Demand
Capacity
Time (days)1 2 3 Pay-per-use
business models
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What must the Cloud Provision for?
•
Source: Microsoft
Usage
Com
pute
Time
Average
Inactivity
Period
“On and Off “
On & off workloads (e.g. batch job)Over provisioned capacity is wasted Time to market can be cumbersome
Average UsageCom
pute
Time
“Growing Fast“
Successful services needs to grow/scale Keeping up w/ growth is big IT challenge Complex lead time for deployment
Com
pute
Time
“Unpredictable Bursting“
Average Usage
Unexpected/unplanned peak in demand Sudden spike impacts performance Can’t over provision for extreme cases
Com
pute
Time
Average Usage
“Predictable Bursting“
Services with micro seasonality trends Peaks due to periodic increased demandIT complexity and wasted capacity
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By reducing server sprawl, improving utilization, simplifying operations, standardizing, increasing reliability, reducing energy and cooling
• hardware costs can be reduced 33-70 percent• maintenance costs can be reduced up to 50 percent• support costs can be reduced by as much as 33 percent• floor space/facility costs can be reduced 33-50 percent
http://www-935.ibm.com/services/us/its/html/green-datacenter-svcs-landing.html
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Cloud Computing: Why Now?
Business factors• Minimal capital
expenditure• Pay-as-you-go
billing model
Economies of Scale in the Data Center• Experience of
operating data centers efficiently
Technology factors• Pervasive
broadband Internet
• Maturity in Virtualization Technology
Clean Slate Approach• Multi-tenancy• Challenging the
status-quo
Economic slowdown has accelerated the adoption of cloud computing.
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Mobile Internet is getting mainstream• Network: Roadmap for 3G/LTE/4G/WiFi/WiMax is
getting established.• Operating Systems: Android launch has been very
impressive. iOS, Windows7 are viable contenders, cannot rule out Symbian.
• Devices: Price points for smart phones are getting affordable.
• Form factor: With the launch of the iPad and tablet form factors from Dell and Samsung, the tablet war has just begun.
• User Interface: Touch, motion and gestures
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Expectations from the Mobile Internet• Always on access with super fast boot time.• Fast broadband speeds• Near zero latency access to nearly all information• More than day-long battery life• Appropriate form factor• Location based information• Presence
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The landscape is changing
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Are you ready?
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What does this mean for me?
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Custom software
Hardware
IT Maintenance
Software Products
Total IT Costs
Business Model Pay per use
IT
Budgets
Consequences of the Cloud
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Proliferation of AppStores and the pay-per-use business models for apps
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Products will be consumed in ready-to-eat bite-sized portions
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From the App Store
Low per Unit Cost
ZeroLoyalty
Pay per Use
Snap-inSnap-out
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Innovation through Gandhian Engineering
Getting more for less for more
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India: the source
and the market
for innovation
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Persistent: your trusted partner to help you get there
now!
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We welcome your comments:
Anand Deshpande ([email protected])Persistent SystemsNovember 2010