Cloud Camp Haiti preso by Simon Wardley of Canonical

1. Evolution
{Business Activities}

2. Commoditisation
Innovation Bespoke Products Services

3. Hippolyte Pixii G. Westinghouse
[Generator] [Utility Grid]
1832 (1846 -1914)
Innovation Bespoke Products Services
W. H.Wollaston
[Electric Motor] Gramme Ring Harvey Hubbell
1821 [Commercial] (1857-1927)
(1860s)

4. IBM 650
[Commercial Product]
Z3 (1954)
(1941)
Innovation Bespoke Products
LEO
[Commercial Use]
(1946)

5. Utility Computing ...
John McCarthy, 1960

6. es
er vic
S
Y cts
o du
Pr
o ke
e sp
B
at ion
n ov
In
X

7. Common
Services
Ubiquity
Products
Bespoke
Novel
Innovation
Low High
Certainty

8. Common
Service providers like
Salesforce, 2000+
CRM products, 1990’s
Ubiquity
DB marketing, mid 80’s.
Early lists,
Novel
1980.
Low High
Certainty

9. Common Payroll
Accounts
Expense Payable
Procedure
Company
Web site
Ubiquity
Wiki
Social Network
Analysis
Novel
Low High
Certainty

10. Common
Widespread
Ubiquity
Feature
Complete
Novel
Low High
Certainty

11. Ubiquity (how commonplace) Cloud Infrastructure
Commodity
Hardware
Utility Service
Commodity
Product
IBM 650, 1954
Innovation Custom built
Z3,1941
Certainty (level of definition / standardisation)

12. Ubiquity (how commonplace)
Economies of scale.
(volume Operations)
Pay per use.
(utility)
Prof. Van Valen Focus on core.
The need to constantly (outsource)
evolve in order to stand still
relative to an ecosystem.
Speed
(componentisation)
Certainty (level of definition / standardisation)

13. Ubiquity (how commonplace)
Creative Destruction
Joseph A. Schumpeter
(1883 - 1950)
o n
ti
on va
ti o
sa i nn
d iti es
o t
m e ra
om c el
C ac
a nd Componentisation
l es The rate of evolution of
n ab a system is dependent
upon the organisation
E of its subsystems.
Certainty (level of definition / standardisation)

14. Application Software
• Standard classificiation of industry
(Software, Platform, Infrastructure).
Database Framework Messaging Platform
• Componentisation effects are
stronger the further up the stack Operating System
you move.
• Lower layers will become less Virtualisation Infrastructure
visible over time (componentisation side-effect).
CPU Memory I/O
Attitude
• Old concept (Douglas Parkhill, 1966)
Concept
• Suitable activities are those with
little strategic value (Nick Carr, 2002)
Cloud • Changing attitude towards IT (Paul
Strassman, 1995)
Technology
• Technology mature (x86 virtualisation)
Suitability

15. Ubiquity (how commonplace)
Transition Outsourcing
Confusion Suitability
Governance Competition
Trust Lock-in
Security Second source
Transparency Strategic Control
Certainty (level of definition / standardisation)

16. Ubiquity (how commonplace)
as a Service
• Designed for Failure
as a Product
• Provide self service IT.
• Abstracts provisioning from the user.
• Provides for ephemeral architectures
Certainty (level of definition / standardisation)
variety of models
Services
• Stand supply chain management
• Public, private, hybrid
Consumer Provider

17. Cloud Infrastructure
Ubiquity (how commonplace)
Utility Service
Economies of scale. (volume)
Pay per use. (utility)
Focus on core. (outsource)
Prof. Van Valen
The need to constantly Speed (componentisation)
evolve in order to stand
still relative to an
ecosystem.
Certainty (level of definition / standardisation)
Ubiquity (how commonplace)
Vs
Transition Outsourcing
Confusion Suitability
Governance Competition
Trust Lock-in
Security Second source
Transparency Strategic Control
Certainty (level of definition / standardisation)

18. General things to note

19. Activity Life Cycle Commodity
(Core Services)
Transition
Ubiquity
n
normal pathway for sa tio
i
activity development o dit
o mm
C
Innovation Enable Innovation
Certainty
Stage Innovation Transition Commodity
Focus Innovate Leverage Commoditise
Scope Days / Weeks Weeks / Months Years
Development Agile Agile Six Sigma / ITIL
Deployment Agile Six Sigma / ITIL Six Sigma / ITIL
Delivery Local / in-house Local / in-house Central / Outsourced
Commercial High risk / low Success critera (KPIs) Low risk / reduction through
Focus cost / locally driven for adoption volume / marketplace
Technology Mashup / use of Standards & open standards / open
Strategy core services interoperablity source / second sourcing

20. Innovation
on
• Speed & effectiveness of product
New activity, high
ti
sa
risk, uncertain,
ti
n
rapidly evolving
evolution impacted by size of
ne
po
m
ecosystem.
co
Transition
Activity becomes
widely adopted,
more defined, &
Commodity
Activity is ubiquitous, • Most effective organisation develop
more certain. well defined and
standardised symbiotic relationship (Amazon, Facebook,
Salesforce)
Core Services
Leverage
The ecosystem can be
used to identify and
Ecosystem
• Awareness & interaction are critical.
promote successful
innovation
“Edge”
Company A Strong Ecosystem
• Faster rate of innovation
Core • Innovation pushed to edge, lower cost of
Services failure and improved adoption information.
Company B • Ecosystem determines future needs.
Core
• Rapid growth depends upon Services
Core
Services
developing stronger ecosystems
than competitors. Company C
Company D
Core Core
Services Services
Company E
Ecosystem
Centralised
• Minimal ecosystem reduces rate of innovation
• No mechanism for managing cost of failure.
• Core determines future needs.
Competitive Landscape

21. Infrastructure

22. Ubiquity (how commonplace)
Go Grid API
Confusion EC2 API
OCCI API IPX / SPX
Sun Cloud API Banyan Vines
Rackspace API AppleTalk
VS
Delta Cloud API SNA
LibCloud API Decnet
Flexiscale API TCP / IP
ElasticHosts API
vCloud API
Certainty (level of definition / standardisation)
variety of models
• Data security (including data portability)
• Data privacy & regulatory compliance Services
• Geographical movement of data
• Governance
• Second-sourcing options
• SLA's and guarantees
• Trust in the infrastructure provider Consumer Provider

23. ! (Peak Loads)
Machines
Peak !(Loads) • Different supply chain strategies
Peak !(Loads) - Avg
are possible i.e. hybrid
Load
ud
on
l
lo
na
i
at
C
io
is
d
it
ri
al
ad
yb
tu
Tr
H
ir
V
• Match defacto standard (only linux distribution)
Public cloud UEC Private cloud
• Open Source Technology Amazon EC2
Eucalyptus VM
• 57% companies cite private cloud as Web UI KVM Hyp.
essential for 2010 (ChannelWeb survey) Cloud Node
Controller Controller
• Eucalyptus top 10 technologies for EC2 / S3 / EBS
Ubuntu Server Edition
2010 (network world)
Physical (bare bones)
ubuntu.com/cloud

24. • Not all IT activities are the same.
• Cloud describes the shift from a product to a
service economy of certain activities.
• Best mechanistic definitinion is NIST
• Consequence of a well known and inevitable
transition.
• Benefits and Risks are well known.
• Risks will change over time.
• Variety of models available - use depends upon
balancing benefits vs risks.
•Think supply chain & second sourcing ...