1. Clouds in Emerging Markets
Naresh K. Sehgal, PhD, MBA
Lead SW Architect
Enterprise Platforms and Services Division
Intel Corp, Bangalore
2. Context
• Dark clouds are gathering on the horizon
– World’s economies are slowing down
• Signs of layoffs, delayed investments, recession…
– Future seems uncertain
• IDC server stats from Q3’08
– Server revenue down by 5.2 percent YOY at $12.6 billion
– Server unit shipment growth up 2.8 percent YOY
• Customers are demanding more computing/$
• Products and services we’ve going in will not get us out of
• New Solutions are needed!!
IT Managers want more Efficiency and
Customers need a higher value to restart spending…
2
3. Profile of Intel Architecture (IA)
Server Customers
SMBs Enterprises Internet Portal
Data-Centers
• • •
Buys 1-10X Servers
1- Buys 100-1000X
100- Buys 1000-
1000-
• Lacks dedicated Servers 10,000X Servers
on-site IT support
on- • •
Has dedicated on-
on- Has dedicated on-
on-
• Wants low-cost
low- site IT support site IT support
solutions
• •
Needs Wants low-cost
low-
• Needs light-
light- comprehensive solutions
weight tools
monitoring • Needs light
Solutions weight tools
SMBs and IPDC customers have similar needs
Managed Service Providers (MSP) are like a virtual Data-center
Data-
Bringing SMBs to Cloud will spur a new investment cycle 3
4. SMBs Strength and Concerns
• SMBs form the bottom of business
IT use by Emerging market SMBs ‘07
pyramid
– Focused on local end-users
end- medium
Business
– Doctors, lawyers, accountants, restaurants
702K 100-999 employees
and other SMBs with computing needs
• 1-9 Employees Small Businesses (SB) form
2/3rd of the total Market 7.6M
• India has 7.8M SMBs, spent $8B on IT Have PC, Server
& Network access
– Of which, 3.9M are Small Businesses,
4.4M
spent $4.5B on IT and $4.2B on Telecom
PC + Network Access
• But a low rate of Cloud adoption
– Lack of Vertical Applications
• Domain specific SW in cloud 21.3M PC only
– Trust Issues
• Data security and portability
– Lack of 24x7 internet connectivity Small Business
• Bandwidth limitations, cost etc. 1-99 employees
Emerging Market SMBs want on-site copy of Apps and Data
on-
4
Source: AMI SMB Global Forecast Model, AMI Vertical Market Study
5. State of Cloud Computing
• Evolving from end-user services (search, email, social networking) to support Mission
end-
Critical business and commercial grade applications
– Some are based entirely out of clouds, e.g., Salesforce.com
– Many companies want their own private enterprise clouds
• Challenges include Mass deployment, Health monitoring and Power management etc.
• Coming years will see new
emerging trends
– Different from the grid computing,
software as a service (SaaS) or
simple web hosting
• Trend #1: Abstraction of
network, storage, database,
security and computing
infrastructure
– Offering image of on-demand,
on-
virtual data center with flexibility
implied in scalability and agility;
• Trend #2: A pricing model that
is retail in its conception –
– Pennies per gigabyte, massive CPU
cycles and bandwidth; and
• Trend #3: SLAs for
– Data persistence, system reliability,
redundancy, security and business
continuity
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S ource: http://w w w .b-eye-network.com/view/8702
6. Intel in Cloud Computing
• 75% of TCO (Total Cost of Ownership) is for HW and power/cooling
– Use energy efficient processors
• Intel processors are ~30% more efficient than competition
– Use HW virtualization technology for Elastic Computing
• Intel’s HW Virtualization gives 2X boost more VMs / server
• Optimize at platform, software and data-center levels
data-
– Focus on DC management and cloud services at the System level
• DCMI spec for efficient server management
– Node Manager for server and rack levels, 20-30% savings potential
20-
• Dynamic adjustment of power states based on load
• Need software for large-scale clouds
large-
– Establish an internet scale global test bed for Cloud research
• A new Open Cirrus initiative with HP and Yahoo
Intel Architecture offers ideal platforms for cloud computing
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8. Extending Cloud to SMBs
An on-premise appliance for service delivery?
on-
Remote Apps
Desktop
Hosting, patching,
File/Print
Backup
Search
APPS
PBX
monitoring, Data
backup etc.
Local
Notebook Networ
Appliance
k
Internet
Connection
Printer
IP Phones
• Extension for cloud based services - Range of applications possible
• Remote Serviced and Managed from the cloud
• Trust and security managed with TPM
CHALLENGES – WHERE DOES IT WORK/DOESN’T WORK?
8
9. On-
On-Premise Appliance for Service Delivery
Racks
Racks
Model Cloud Data Center Distributed On-Premise Appliance
On-
Workloads Scales for Large workloads Probably sufficient for small workloads
Usage Models Easily supports highly mobile Only supports on-premise devices
devices (Mobile devices require VPN)
Bandwidth/ WAN bandwidth may not be WAN bandwidth may not be sufficient
Application sufficient for certain client facing for certain customer facing applications
performance applications (e.g. File Sharing) (e.g. Web site)
Cooling Costs High Low
Energy Costs Provider pays Customer pays
CAPEX Pay for facility but high utilization Low utilization but no facility costs
OPEX costs Lower Low with remote management
9
11. Going Beyond: to hand-held clients
hand-
• Large cell-phone owning population is ready for rich experience
– Same internet services that you can get on a connected laptop
– Using MIDs (Mobile Internet Devices) based on Intel® Atom™ processors
• Take advantage of IA presence on Clients and Servers
– Optimize Storage, Compute & visualization scheduling based on Energy,
Security, and Performance
– Take advantage of SaaS technologies
– Software runs where it runs best depending on device caps
– Data moves transparently between the MID and the Cloud
• Deliver a superior user experience when connected
– Connected visual computing is one example
Deliver a greater business value to the End-users
End-
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12. Summary: Intel Cloud Strategy
Deliver the energy efficiency
1 and virtualization technology
demanded by all clouds
Optimize technology for large-
2 scale clouds: datacenter,
software & platforms
Enable MID devices for Cloud
3 access on the move
Intel is driving efficiency, performance, and
new capabilities throughout the stack
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14. More breakthroughs Required
1. Network Latency
– High bandwidth vs. High Latency
2. Software Design
– Application Partitioning
– Energy/Security -aware managed run-time
Energy/Security- run-
3. Fine-
Fine -grained Migration & Provisioning
– Energy -aware code migration
Energy-
– Virtualization of accelerators and TPMs
– Remote visualization
4. Security
– Projection of Trust & confidentiality from the user-device into the Cloud
user-
5. OS design; Scheduling computation and I/O
– Failure handling and error-recovery
error-
– Application sandboxing via lightweight VMs
6. Availability
– Offline vs. On-line sync
On-
– Resilience to Power Outage
7. Standards and Open-source solutions for Cloud SW infrastructure support
Open-
Need Eco-systems players to join hands
Eco-
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15. Economic Times: 7.6M SMBs in India, set to increase their IT spending by
24%. Spent $8B in 2007 to beef up their servers and networking technology
back 15
16. SMB Segmentation
• 3.89 mil small
Small PC 1.21M $4.45B
Business businesses businesses of which (Total IT Spending
30% have adopted in 2006)
computers
• 1-9 employees make up
No 2.68M
• 14% CAGR
businesses 2/3 of total market
PC
• Mostly in the
infrastructure buildup
phase
• Mobility is a significant
characteristic with 2/5
having mobile workers
Source: AMI India SB 2007
back 16
17. SB Overview
• There are an estimated 3.89 Breakout of Total SB Market
million SBs in India that spend
$8.67 billion on IT and telecom. 0.40 0.38
AMTUC
0.35
• IT accounts for slightly above 50% Mfg.
0.30 0.28
or $4.45 billion while telecom Wholesale
In Millions
0.25
accounts for $4.22 billion 0.18 Retail
0.20
0.15
0.15 FIRE
0.09
• Key Verticals: 0.09
0.10 Prof Bus Svcs
0.04
•Retail 0.05
Other Svcs.
•Manufacturing 0.00
# of PC Biz
•Professional Business Services
Total IT / Telecom Spending ($ millions)
Prof. Bus. Other
AMTUC Mfg Wholesale Retail FIRE
Svcs Svcs
$543 M $2,538 M $310 M $1,917 M $684 M $1,442 M $1,240 M
6.5% 30.3% 3.7% 22.9% 8.2% 17.2% 14.8%
Source: AMI India SB 2007
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18. SB Attitudes – Key Business Issues
Key Issues Hindering Growth
Insufficient Cash flow 17%
Difficulty in raising financing for growth 16%
Rising operating costs 12%
Difficulty in accessing business opportunities 11%
Uncertain industry conditions 8%
Pressure in keeping up with new technology 7%
Increasing competition 6%
Hiring, developing and retaining staff 6%
Difficulty in accessing market intelligence or information 6%
Uncertain economic environment 6%
Changing policies and regulatory requirements 2%
Product related issues 2%
Others 0.1%
0% 2% 4% 6% 8% 10% 12% 14% 16% 18%
% of PC Biz
Source: AMI India SB 2007
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19. SB Attitudes – IT Priorities
Strategic Importance of Issues (next 12 months)
Deploying high-spee d broa dband Inte rnet access 68%
Significant
Buyi ng additional hardware 45%
Most
Ne tworking all ha rdware in main office location 44%
Upgrade a nd standa rdize opera ting systems 43%
Re pla cing ol d hardware with newer ones 43%
Trai n a nd educa te e mploye es on IT skill s and knowledge 40%
Importance
Moderate
Enha nce e nterprise I T se curity 32%
Outsource busine ss proce sse s incl uding IT service & support 30%
De pl oying wire less technologie s and solutions 25%
Re duce communication costs by a dopting VoI P 24%
Embrace e -Comme rce 24%
Exte nding the ne twork conne cti vi ty to bra nch office s & othe r
20%
remote l ocati ons
Significant
I ncrea se IT storage capacity a nd de ploy enha nced stora ge
9%
Least
solutions
Adopt hosted/ on-demand solutions to reduce upfront software
9%
ex pendi ture s
Deploy ope n-source opera ting systems like Linux 8%
0% 10% 20% 30% 40% 50% 60% 70% 80%
% of PC SBs
Source: AMI India SB 2007
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