Opportunities and Challenges in Cloud Computing - IBM, Shailab Nagar, As part of cloud symposium, at ACM Bangalore Compute 2009

1. Opportunities & Challenges in Cloud
Computing
Shailabh Nagar
IBM
Jan 2009

2. The Cloud has 5 distinct layers and value propositions. Very significant opportunities exist above
the infrastructure level, where much of the cloud discussion has been focused previously.
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3. Evolving a cloud definition
IT Customers: IT Analysts:
- Flexible pricing / business models - Variable pricing
- Outsourced, on demand - No long term commitments
provisioning - Hosted, on dem. provisioning
- Unlimited scaling - Massive, elastic scaling
- SW developer platform - Standard Internet technology
- Flexible - Abstracted infrastructure
- Service-oriented
Common Attributes of Clouds
Elastic scaling
Rapid provisioning
Advanced virtualization
Flexible pricing
Press: Financial Analysts:
- Pay by consumption - Utility pricing
- Lower costs - Hosted, a-a-s provisioning
- On demand provisioning - Parallel, on demand processing
- Grid and SaaS combination - Scalable
- Massive scaling - Virtualized, efficient infrastructure
- Efficient infrastructure - Flexible
- Simple and easy
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4. Cloud Computing is a model of shared network-delivered services, both public and private, in which
the user sees only the service, and need not worry about the implementation or infrastructure
Consumable web-
People
Standard Internet
Services
delivered services
technologies
requiring no installation,
minimal setup
Business
Important roles for both
Services
public and private Rapid provisioning
clouds.
Application
Services
Service layers separated by
clean APIs, enabling
Flexible pricing
composition.
Platform
Services
Built on radically
Elastic scaling
scalable, manageable,
Infrastructure
virtualized IT resources Advanced
Services
virtualization
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5. Cloud Computing Definition: Another view
End Users / Requestors
• New combinations of
services to form
differentiating value
Government/ Consumers
Industry propositions at lower
Academics (Startups/ SMB/ Enterprise) costs in shorter time
• Cloud applications
enable the simplification
INNOVATIVE BUSINESS MODELS of complex services
• A cloud computing
platform combines
modular components
SIMPLIFIED SERVICES on a service oriented
architecture
• An “Elastic” pool of high
Public Cloud performance virtualized
compute resources
• Internet protocol based
Enterprise Cloud convergence of networks
and devices
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6. There are major opportunities at all levels of the stack, and the Cloud will grow rapidly at the top layers
Cloud
(Application, Business and People)
Answer
Live Mesh
‘People’ Services Health BETA
Service Cloud Layers
Business Services
Application Services
Platform Services
Infrastructure Services
2009
2006
2000
Static, dedicated, outsourced Network-delivered, off-premises Shared, automated, dynamic
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7. The Cloud has 5 distinct layers and value propositions. Very significant opportunities exist above
the infrastructure level, where much of the cloud discussion has been focused previously.
The Cloud model can be truly disruptive if it can reduce the IT operational expenses of
enterprises: development, management, integration, and energy consumption.
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8. IT Operational Challenges
Rising operational costs of systems and networking
Costs &
Service Explosion in volume of data and information
Delivery
Difficulty in deploying new applications and services
Security of your assets and your clients’ information
Business
Resiliency Landslide of compliance requirements and government mandates
& Security
Systems and applications need to be available
Rising energy costs and rising energy demand
Energy
Power and thermal issues inhibit operations
Efficiency
Environmental compliance and social responsibility
Unpredictable workload characteristics
Changing
application Manage fast growth of “smart” objects and data volumes
models
Need maximum flexibility for real time interaction
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9. Cloud technologies offer operational expense reductions at all layers
• People cloud, tagging, wisdom of crowds
People
• Break linear relationship between revenue and labor costs
Services
Business • Businesses (i.e. Telco) can easily experiment with new services
Services
• Time-to-value of new services greatly decreased
• Improved consumability via Web delivery of apps and services
Application
• Web-resident development, deployment, update, app management
Services
• Easy app composition reduces development costs
Platform
• Deployment technologies uncouple service deployment from hardware.
Services
• Ensembles simplify hardware (server / stg / network) management.
Infrastructure
• Virtual image management contains scaling costs of update, etc.
Services
• Power and heat management reduce energy costs / emissions
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10. Global Annual IT Spending
Estimated US$B 1996-2010
300 Power and Cooling Costs
Server Mgt and Admin Costs
250
New Server Spending
200
Uncontrolled system
150
management costs
100
Steady CAPEX spend:
50
Not the key problem to address
$0B
Industry hypothesis is that clouds will be driven by scale.
However to capitalize on this, providers must address the server management
cost problem, not just CAPEX
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11. Business Case Results: IBM TAP Cloud Deployment
TAP - The Technology Adoption Program is IBM's new model for managing technology to drive innovation
With Cloud
Without Cloud
Business Case Results
New
100%
Annual savings: 87%
Development
Liberated
Payback Period: 32 days
funding for new
Software
Strategic Return On Investment (ROI): 2673 %
development,
Costs
Change
transformation
Capacity
investment or
Power direct saving
Costs
Current Deployment (1-time)
IT Labor Costs
Spend (Operations and Software
Costs
Maintenance)
Power Costs
(- 88.9%) Hardware, labor &
power savings
Hardware Labor Costs reduced annual cost
Costs ( - 80.7%) of operation by
(annualized) 86.7%
Hardware Costs
( - 88.7%)
Note: 3-Year Depreciation Period with 10% Discount Rate
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12. Benefits of a Services-oriented Cloud – Application development
• Enterprise application development with Websphere 7.0
Traditional native approach Cloud-based deployment
• Order on cloud service (< 1min)
• OS installation =~ 1 hour
• Deploy appliance to target and activate (7 min)
• WAS download + unzip + install = 8 + 5 + 35 = 48
WAS cell ready to deploy application = 8 min
min
• Web2.0 application development with Linux, Apache, MySQL, PHP (LAMP)
Traditional native approach Cloud-based deployment
• Order on cloud service (< 1min)
• OS installation (1 hr)
• Deploy XAMPP appliance to target and activate (6
• Apache download, install, config =~ 30 min
min)
• MySQL =~ 30 min, PHP =~ 30 min, Perl =~ 30 min
LAMP stack ready to deploy application: ~ 7 min
• Admin tools =~ 1 hr
Ready to use: ~ 4 hrs
• Access to service offering content from service
• Resource procurement, setup, and provisioning
catalog
• Management and monitoring of virtualized • Standardized deployment with less human error
infrastructure
• Accelerated provisioning and on-boarding for new
customers
• Manual on-boarding onto new applications and
services • No procurement and management of infrastructure
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13. The Cloud has 5 distinct layers and value propositions. Very significant opportunities exist above
the infrastructure level, where much of the cloud discussion has been focused previously.
The Cloud model can be truly disruptive if it can reduce the IT operational expenses of
enterprises: development, management, integration, and energy consumption.
The challenge is in achieving the operational expense reduction at all layers of the cloud at a
sufficient scale. We’ve been here before and opportunity is knocking once more !
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14. Cloud management services. A layer of management services will be required to
provide enterprise-level QoS transparently, from both intranet and public clouds.
Using Cloud services does not free the service user from all management requirements.
Confidential Data Encrypted/anonymized data
CRM application
Public/
Private
Clouds
Primary service
Core business HA service
application
Public cloud
Backup service
Analytics
application
Dashboard, PD…
Non-cloud
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15. Architectural Model for Cloud Computing
Service
Service Request & IT Infrastructure & Application Creation & Deployment
Operations Provider
Virtual Image
End User Datacenter Management
Service Management
Requests
Infrastructure
& Operators Access User Request Management/Self Service Portal
Services
Service Lifecycle Management
Design
Service Catalog,
& Build
Image Lifecycle Performance Availability/Backup/
Component
Provisioning
Management Management Restore
Library
Security: Identity, Access, Integrity, Usage License
Accounting Management
Isolation, Audit & Compliance
Image Library
(Store)
Cloud Administrator
Service Oriented Architecture Information Architecture
… Optimized Middleware
(image deployment, integrated security, workload mgmt., high-availability)
Depl