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David Cearley

The Current Future State of Cloud Computing

Key Issues

1. What is the Current State of Cloud Computing Adoption?

2. How should agencies approach cloud computing, and how does it change the IT environment?

3. How does cloud relate to other key technology trends?

But First ….

2

When Everything is Called Cloud … Cloud Computing Loses It’s Meaning

Service-

Based

Metered

by Use

Internet

Technologies

Consumer

Provider

A style of computing in which scalable and elastic IT-enabled capabilities are delivered as a service to consumers using Internet technologies

• Open

• Limited

• Provider

"Virtual" Private Cloud Service

• Limited

• Full

• Provider

Community Cloud Service

• Closed

• Exclusive

• Consumer

Private Cloud Service

• Open

• Full

• Provider

Public Cloud Service

Self-

Service

Access:

Sharing:

Ownership:

Shared Scalable & Elastic Automated

The Service

Cloud Computing Service Layers and Vendor Offerings

System Infrastructure Services

App. Infrastructure Services

Enabling Technologies

Cloud Services Professional Services for Consumption

Marketplace, Brokerage, Management and/or

Security Services

Consuming Cloud Services

Building or Operating Public/Private Cloud Services

Professional Services for Build/Run

Service Enablers & Implementation

Application Services

Business & Info. Services

Key Issues

1. What is the Current State of Cloud Computing Adoption?

2. How should agencies approach cloud computing, and how does it change the IT environment?

3. How does cloud relate to other key technology trends?

6

Survey Question: Are You Using Public Cloud Services?

SaaS

PaaS

IaaS

44%

36%

36%

Source: Gartner, Future of IT Survey, November 2012

Today In 12 Months

87%

80%

80%

7

Survey Question: What Cloud Approach Do You Prefer?

Private Cloud 34%

Hosted Cloud 25%

Community Cloud 12%

Public Cloud 12%

Hybrid 7%

Not Cloud 10%

Source: Gartner Cloud Survey, July 2012

Private

Hosted Private

Community

Public

Hybrid

Not Cloud

8

Survey Question: What Cloud Approach Do You Prefer?

27%

37%

37%

32%

31%

35%

40%

23%

22%

24%

31%

23%

30%

24%

14%

10%

12%

12%

15%

11%

11%

13%

12%

10%

12%

15%

12%

9%

10%

7%

8%

7%

6%

4%

8%

12%

13%

9%

6%

9%

8%

8%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Manufacturing & Natural Resources

Financial Services

Services

Communications & Media

Government

Retail & Wholesale

Other

Private Cloud Hosted Cloud Community Cloud Public Cloud Hybrid Not Cloud

Source: Gartner Cloud Survey, July 2012

Hybrid Cloud Aspirations are Sky-High

Yes 70%

Maybe 23%

No 7%

Gartner Data Center Conference

Poll, December 2012

(N = 129)

Will your enterprise be pursuing a hybrid cloud

computing strategy by 2015?

While very few enterprises have established a hybrid cloud service so far, the interest is very high

High Growth Expected in Cloud Infrastructure Services But SaaS Still Larger Overall

• Highest growth rates in Emerging Asia/Pacific, China, Latin America and Eurasia

• Greatest increase in spending in N. America

• India, Indonesia and China show the highest growth rates in Asia

• Western Europe growth rates continue as the lowest worldwide

• PaaS is smaller but big impact

Source: Gartner, Public Cloud Services Forecast, Sept 2012 (G00238928)

* Excluding Cloud Advertising

0

10

20

30

40

50

60

2010 2011 2012 2013 2014 2015 2016

Ma

rke

t S

ize

($

US

Bil

lio

ns

)

BPaaS SaaS PaaS IaaS Mgmt & Sec

BPaaS SaaS PaaS IaaS Mgmt & Sec

5-year CAGR (2011-2016) 11.3% 19.1% 26.6% 41.8% 26.9%

11

But Public Cloud Spending Remains a Minority of Total IT spending

2012 2017

Infrastructure Software & Middleware

Data Center Outsourcing

Business Process Outsourcing

Application Software

Source: Gartner, Public Cloud Services Forecast, Mar 2013 (G00248727),

Enterprise Software Forecast, Mar 2013 (G00249485), IT Services Forecast, Mar 2013 (G00248578)

Key Issues

1. What is the Current State of Cloud Computing Adoption?

2. How should agencies approach cloud computing, and how does it change the IT environment?

3. How does cloud relate to other key technology trends?

A Strategic Model for Cloud Computing E

sse

nti

al C

lou

d S

tra

teg

y E

lem

en

ts

How will we secure, manage and govern cloud services across internal, external and hybrid environments?

3

Where and how should agencies implement private cloud environments?

2

Where and how should agencies consume cloud computing services?

1

How does cloud computing factor into application strategy and architecture?

4

Are there opportunities for the agency to become a cloud computing service provider? 5

Agility

Cost

Security

Transparency

Establish a Decision Framework

Less Complexity

More Focus

Self-Service

Innovation

Assurance

Lock-in

Integration

Financial

• Examine by service type,

workload, data and use case.

• Consider how to mitigate risk.

• Examine market maturity &

total cost including exit costs

Challenges

Be

ne

fit

Low and Manageable

High or Unmanageable

Hig

h a

nd

C

lea

r L

ow

or

Un

ce

rta

in

Avoid

Embrace Public

Experiment

Consider Private

Take a Realistic View of Cloud Risks

• Cloud services are not inherently more or less secure than traditional outsourcing.

• Map workloads and data to the right "style" of cloud security.

• Adapt security processes to address cloud computing.

• Separation of duties and change control are key risks.

• Examine software and cloud-based options to mitigate risks.

• Integrate cloud services into situationally aware SIEM*.

Audit and Event

Streams

Cloud Application

Cloud Infrastructure

Cloud Application

Data Centers

Application

Infrastructure

Application

Unified View

*security information and event management

Build a Cloud Services Sourcing Capability

• Modify existing service procurement

processes to accommodate the

cloud.

• Focus negotiations on business

issues, not technical

implementations.

• Selectively review provider

implementation details.

• Service commitments are delivered

via standard self-service interfaces.

• Understand the real long-term

commitment behind SLA and price.

• Don't ignore hidden upfront costs.

• Develop contingency plans.

Standardized & Fixed Terms & Conditions

Customized & Negotiated

Terms & Conditions

Cloud

Computing

Traditional

Outsourcing

Service Acquisition Models

Consider Use of Cloud Brokerage

The Simple Cloud Model

The Cloud Brokerage Model

Providers

Brokerage

Point-to-Point Relationships

Intermediated Relationships

Strengths

• Direct relationship with customer

• Low barrier to adoption

Challenges

• "Take it or leave it" cloud services

• Multiple provider complexity

Strengths

• Value-added services

• Centralized governance

Challenges

• Indirect customer relationship

• Skills lacking, unfocused and narrow

Consumers

Cloud Services

Cloud Services

Cloud Services

Private Cloud Is More Than Virtualization C

lou

d M

an

ag

em

en

t P

latf

orm

Vir

tuali

zati

on

an

d

Ph

ysic

al

La

yer Resource

Management • Resource State Management

• Performance Management

• Security

Service Management

• Service Catalog

• Service-Level Management/Monitoring

• Service Configuration and Provisioning

• Service Demand and Financial Management

Resources • Physical and Virtual Resources

• Component Managers

Access Management

• Self-Service/Programmable Interface

• Subscriber Management

• Identity and Access Management

Service Optimization

• Governor (i.e., Policies for Placement and Elasticity)

• Orchestration

• Federation and Multisite

Exte

rna

l Ma

na

ge

me

nt A

PIs

(Incid

en

t/Cha

nge

/Re

lea

se

, An

aly

tics)

CMP Vendor Landscape: A Crowded and Fast-Moving Market

Fabric-Based Infrastructure • Cisco Intelligent Automation for Cloud

(Cloupia) • Dell VIS Creator (Gale Technologies

and enStratius) • HP CloudSystem Matrix • IBM PureFlex System Manager

and PureApplication System • VCE vCloud Director and CIAC

Infrastructure Software • Citrix CloudPlatform • IBM Workload Deployer • Microsoft System Center 2012 • Oracle Enterprise Manager 12c (Nimbula) • Red Hat CloudForms (ManageIQ) • VMware vCloud Director and vCloud

Automation Center

Point Solution Vendors • Abiquo • Adaptive Computing • Cloudbolt • Egenera • Embotics • Flexiant • Gravitant • NetIQ (Novell Cloud Manager) • RightScale • ServiceMesh • Zimory

Traditional Big Four IT Operations Management • BMC Software CLM • CA AppLogic (Automation Suite for Cloud) • HP CSA • IBM SmartCloud Orchestrator

Open Source • CloudStack • Eucalyptus • OpenNebula • OpenStack

From Software Defined Networking To Software Defined Environments

• SDN is a new way to operate networks

• Moves control plane (and potentially the value) from individual devices to a central controller

- Abstracts network layer to drive agility and flexibility

- Allows configuration of the network from one place not each individual device

• Beyond SDN

- Fabric Based Computing

20

Ba

nd

wid

th G

row

th

• Cloud Service Provider Needs Drive Innovation

The Future is Hybrid: Extend Security, Management & Governance

IT

Cloud Services Broker

Enterprise App Store

Private Cloud

Services

Public Cloud

Services

Traditional Services

Public Cloud

Services

IT should become the trusted broker for most/all

IT-based services

Hybrid IT

Service Catalog Service-Level Mgmt.

Chargeback Capacity Mgmt.

Service Governor

Orchestration Optimization

Cloud Management Platform Enterprise

Hybrid IT

Hybrid IT is the mission and the operational model for IT infrastructure and operations in a cloud computing world.

Yes 58%

Not

Sure 31%

No 10%

Gartner Data Center

Conference Poll, December 2012

(N = 127)

Will your IT organization

pursue an internal Hybrid IT strategy

by 2015?

Hybrid IT Organization

Hybrid IT: The Organizational Perspective

• Assist service development

• Self-service

• Metered use

• User focus

• Evaluate internal & external services

• Forge relationship with CSPs

• Manage service consumption

IT organization acting as

provider and broker

Private Clouds

Public Clouds

Hybrid Clouds

Developing Cloud-Based Solutions

• Multiple Approaches:

- SaaS configuration and mashup.

- Migrate and enhance enterprise software (custom or packaged).

- Innovative cloud applications.

• Tools and Techniques:

- Build it from scratch with linear scalability, parallel processing and distributed data.

- Leverage application services and/or platform services.

- MapReduce and Hadoop.

- GData and OData access models.

- Coordinate Web design and application development.

- Cloud-Centric Design

Developer

Browser/RIA or Traditional

Client

System Infrastructure

Sys./App. Infra. Application

Consumer

Global- Class App.

SaaS Config. and Mashup

Traditional Software

Cloud-Centric & Cloud Optimized Application Design

• Architecture decisions impact results & cost

- Data move & store

- Message traffic

- Processing models

• Think differently!

- Global-class design

- Proactive security

- Design for failure & self-healing

- Embed security in the application

- Cloud/Client Architecture

Cloud-Aware Application Principles

Latency-Aware

Instrumented

Failure-Aware

Event-Driven Parallelizable

Automated

Consumption-Aware

Think Like a Cloud Services Provider • Focus on high-value targets.

• For the end user

• For the developer

• Everything is a platform.

• Public Web APIs are a key component of your business strategy.

• Build a public Web API as part of next-generation AD projects.

• Develop focused, cohesive and loosely coupled services.

• Make sure you get value, even if nobody adopts it externally.

Partners

Business Service

Information Service

Application Service

Website

Customers

Suppliers

Portal & API

Internal

Key Issues

1. What is the Current State of Cloud Computing Adoption?

2. How should agencies approach cloud computing, and how does it change the IT environment?

3. How does cloud relate to other key technology trends?

CONSUMERIZATION

Beyond Cloud Computing … The Nexus of Disruptive Forces

"Big" Context

Extreme Behavior

Pervasive Access

Global Class Delivery

Cloud Computing & The Nexus of Forces

Cloud in the Nexus of Forces

Personal Cloud

Client/Cloud

Cloud Collaboration

Cloud is a foundation of the Nexus,

but the Nexus in turn

enhances new cloud

related segments

Cloud + Social

Cloud + Mobile

Big Data

Contextual Apps

Cloud + Info.

Recommendations

Be proactive — the worst strategy is to ignore the cloud.

Develop selection criteria and governance models for each layer of the cloud computing service hierarchy:

- Realistically assess risks and carefully embrace new trust models.

- Modify existing service procurement models, and build new cloud governance, trust and security models.

Use a business impact analysis to determine when, where and why to adopt cloud computing:

- Determine where migrating or enhancing applications deliver value.

- Consider innovation applications that benefit from unique cloud capabilities.

Ensure that private cloud initiatives extend beyond virtualization to address access, service and resource management.

Use external cloud brokers to reduce complexity and enhance performance.

Position IT as a cloud service broker across internal and external cloud services.

Coordinate cloud and mobile strategies.