Lessons for Long Life as a CIO · CIO Perspectives San Francisco, CA May 18, 2011. 3 More...

Lessons for Long Life as a CIO

Timothy Chou

CIO PerspectivesSan Francisco, CA

May 18, 2011

3

More VegetablesMore VinegarMore FruitMore ChewingMore SleepMore LaughterMore ActionMore GivingMore BathingMore Walking

Ten Lessons for Long Life

Less MeatLess SaltLess SugarLess SwallowingLess WorryLess AngerLess WordsLess WantingLess ClothingLess Riding

4

SW

Model One

1Traditional

$4000/user(one time)

$800/user/yearSupport

5

Model Two


1Traditional

$800/user/year

$0/user

2Open Source

$1600/user/year

SW

Support

6

Cost to Manage Software is 4x the PurchasePrice per Year


1Traditional

$800/user/year

SW

Support

Mgmt

$16,000/user/year($1300/user/month)

To manage the security, availability, performance, problems and change

7

Model Three


1Traditional

$800/user/year

$0/user

2Open Source

$1600/user/year

3Outsourcing


$800/user/year

Bid<1300/user

/month

@H @C

SW

Support

Mgmt

8

Model Four


1Traditional

$800/user/year

$0/user

2Open Source

$1600/user/year

4Hybrid


$800/user/year

$150/user/month

@H @C

3Outsourcing


$800/user/year

Bid<1300/user

/month

@H @C

SW

Support

Mgmt

9

Standardization, Specialization, Repetition…

10

Model Five


1Traditional

$800/user/year

$0/user

2Open Source

$1600/user/year

5Hybrid+

$300/user/month

@H @C

4Hybrid


$800/user/year

$150/user/month

@H @C

3Outsourcing


$800/user/year

Bid<1300/user

/month

@H @C

SW

Support

Mgmt

11

Model Six


1Traditional

$800/user/year

$0/user

2Open Source

$1600/user/year

6SaaS

<$100/user/month

5Hybrid+

$300/user/month

@H @C

4Hybrid


$800/user/year

$150/user/month

@H @C

3Outsourcing


$800/user/year

Bid<1300/user

/month

@H @C

SW

Support

Mgmt

12

Application Cloud Services$10B+ worth of Business Applications delivered

2001 2002 2003 2004 2005 2006 2007 2008 2009

Year of IPO

13

38 out of 40 of the Largest Companies in the Worlduse one of these Application Cloud Services

1

2

14

Model Seven


1Traditional

$800/user/year

$0/user

2Open Source

$1600/user/year

6SaaS

<$100/user/month

7Internet

Ads

Transactions

Embedded(< $10/user/

Month)

5Hybrid+

$300/user/month

@H @C

4Hybrid


$800/user/year

$150/user/month

@H @C

3Outsourcing


$800/user/year

Bid<1300/user

/month

@H @C

SW

Support

Mgmt

What is Cloud Computing?

We’ve all used Consumer Application Cloud Services

Consumer ApplicationCloud Services

And there are manyBusiness Application Cloud Services


Business ApplicationCloud Services

18

All Use The Original Cloud



NetworkCloud Services

19

Many also use Datacenter Cloud Services



DatacenterCloud Services


Servers Per Employee

20

ServersPer Employee

50.0 500,000+

60,000+30.0

0.5

1.01230996

1000

India0.02

Brazil0.04

50-100x

10-50x

21

Compute & Storage Cloud ServicesAmazon opened the door

Compute & StorageCloud Services

November 2006



22

Many, many newCompute & Storage Cloud Services




Virtualization is a TechnologyCloud Computing is a Business Model

24

Cloud Application Workloads

High Growth On-Off

Periodic BurstingAperiodic Bursting

25

High Growth Applications

26

Aperiodic Bursting

Feb Mar MayAprilJanuary

On-Off Applications

Periodic Bursting

Thursday Friday Sunday Monday TuesdaySaturdayWednesday

3000--

300 --

Create Specialized Compute & Storage Cloud Services




30

Specialized Compute & Storage Cloud Services

On Demand

Reserved

Spot

….

Business Models Today

Compute & Storage Performance

Compute & Storage Location

Compute & Storage Security

31

Software Development Cloud Services



SW DevelopmentCloud Services

Application


32

Operations Management Cloud Services



Application

Ops ManagementCloud Services


33

1000s of Cloud Serviceswww.cloudbook.net

ApplicationCloud Services



PlatformCloud Services


Homework

35

Get Smart – Get Specialists

www.cloudbook.net






Application Cloud Strategy






1. Ask your traditional app suppliers to manage their software

2. Surround traditional apps with new application cloud services

3. Procure only new application cloud services

Compute & Storage Cloud Strategy


Platform

Application



1. Inspect your current servers, storage, datacenter and network infrastructure

• Architect at the server, storage, datacenter and network level a series of solutions using the 3 classes of cloud services

• Select & Implement

Business InnovationService is Information, Personal to You

0

20

40

60

80

1850

1880

1900

1925

1950

1975

2000

ServicesManufacturingAgriculture

What’s Different?

1 Computer 3.5 years

10,000 Computers 30 minutes

Mainframe – Client/Server - Cloud

?

60s 80s 00s

Software Development Cloud Strategy

1. Form a small team who builds new apps on the next generation of software development cloud services






Lessons for Long Life as a CIO · CIO Perspectives San Francisco, CA May 18, 2011. 3 More...

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