Cloud Computing for the Enterprise

James Staten Principal Analyst Forrester Research February 3, 2009

Cloud computing has the potential to disrupt todays data center model

Entire contents 2008 Forrester Research, Inc. All rights reserved.

Agenda
IT implications of business at Internet speed Cloud computing defined Who is using it and how? Where this is headed Additional resources

Entire contents 2008 Forrester Research, Inc. All rights reserved.

Agenda
IT implications of business at Internet speed Cloud computing defined Who is using it and how? Where this is headed Additional resources

Entire contents 2008 Forrester Research, Inc. All rights reserved.

New means of communication are driving changes in business interactivity

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The paranoid thinking: What it takes to compete now

Get to market faster Fail fast Do now, plan later Act below the budget line If it succeeds: Build upon it faster Take it global fast Scale it fast (cloud scale)

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The need for speed is fueling the IT-Business disconnect

Business wants A place to experiment Fast integration Looser IT restrictions Responsiveness IT wants Plenty of notice Predictability Stability Justification

Wham!

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Whats filling the gap?

Cloud computing

Entire contents 2008 Forrester Research, Inc. All rights reserved.

Agenda
IT implications of business at Internet speed Cloud computing defined Who is using it and how? Where this is headed Additional resources

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Entire contents 2008 Forrester Research, Inc. All rights reserved.

Definition: cloud computing

A standardized IT capability (services, software, or infrastructure) delivered via the Internet in a pay-per-use and self-service way.

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The major cloud service categories

Cloud-based services

Abstracted middleware infrastructure

Abstracted virtual server/grid-like infrastructure

Traditional hosting model (dedicated server or dedicated virtual server)

Source: August 2008 Future View: The New Tech Ecosystems Of Cloud, Cloud Services, And Cloud Computing 12
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The cloud value proposition

Instant, easy access to resources No commitment Pay for it with a credit card Instant scale if you need it Try first, justify second

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Cloud computing architectural fundamentals

Source: March 7, 2008 Is Cloud Computing Ready For The Enterprise? 14

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Different clouds appeal to different developers

Depth of knowledge Excel, Web page Access, SQL Server Scripting Basic coding Advanced coding Advanced coding and integration Infrastructure scalability & availability Coding platform Infrastructure platform Cloud level of abstraction SaaS configuration, simple PaaS Scripting/ configuration platform

Number of people with these skills

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The leading Platform as a Service cloud providers today

Company Offering Description
Leaders
Google Salesforce.com Microsoft Google App Engine Force.com Windows Azure
Platform for building and hosting web-scale Python applications Leading abstracted web services platform for building and hosting multitenant applications. Proprietary programming model. Platform for Visual Studio.Net cloud apps. Unique cloud version of Windows OS plus cloud services. Only a tech preview today.

Others worth watching

Coghead Bungee LongJump EngineYard Coghead PaaS Bungee Connect LongJump Developer Suite EngineYard WebSphere Virtual Enterprise, Blue Business Platform
Adobe Flex-based editing environment with integration coglets and APIs hosted on Amazon EC2 Platform with full IDE; apps deployed onto a multitenant grid Framework for developing and deploying multitenant applications (onto their cloud or others) Hosting of Ruby on Rails applications with an agile framework, hosted Ruby services and databases. Java development and deployment environment (hosted or onsite); On-site small business platform with ties to online services built to the Lotus Foundations

IBM 16

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The leading Infrastructure as a Service cloud providers today

Company Offering Description
Leaders
Amazon.com Amazon Elastic Compute Cloud, S3
EC2: virtualized self-service infrastructure and a growing collection of middleware services; Simple Storage Service (S3): virtualized storage; various cloud implemented middleware services

Others worth watching

Rackspace Terremark Layered Tech AT&T Joyent Xcalibre 17 Mosso, Rackspace Cloud Hosting Infinistructure, The Enterprise Cloud The Grid Layer Synaptic Hosting Joyent Accelerator Flexiscale
Cloud computing platform built on VMware and Xen Xen-based self-service virtual infrastructure platform 3Tera and Xen-based self-service virtual infrastructure platform Managed virtual hosting with pay-per-use, 99.9% uptime SLA on the USi infrastructure Cloud platform build on Dell, F5 and Sun infrastructure. Most successful with Facebook apps UK-based cloud solution with SDK for controlling load balancers and auto-scaling.

Entire contents 2008 Forrester Research, Inc. All rights reserved.

Agenda
IT implications of business at Internet speed Cloud computing defined Who is using it and how? Where this is headed Additional resources

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Entire contents 2008 Forrester Research, Inc. All rights reserved.

Clouds customers
Startups
Web-based business, SaaS, collaboration services, widget providers, mobile services, social networking

Gaming and entertainment companies

Driving a lot of use of Amazon EC2

Small businesses
Online businesses, online presence, collaboration, enterprise integration

Enterprises
R&D projects, quick promotions, widgets, online collaboration, partner integration, social networking, new business ventures
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Delivering nostalgia: The New York Times

Objective:
Make all public domain articles from 1851-1922 available free of charge 11M articles to be scanned, assembled and PDFd

Approach:
Batch process all 11M articles Required hundreds of servers; up to 4TBs

Solution:
Amazon EC2 and S3 100 EC2 Instances 4TBs of S3 capacity All 11M articles processed in <24 hours Total cost: $240

Now hosting TimesMachine via EC2/S3

I was using some very new and not totally proven pieces of technology, on a project that was very high profile and on a inflexible deadlinebut clearly it worked out. it is highly addictive. We have already completed the S3 / EC2 portion of another project and I have ideas for countless more.
Source: Open Code (http://open.blogs.nytimes.com) 20
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Other examples
SmugMug online photo exchange ESPN fan communities Animoto turn photos into music videos. Went from 25,000 clients on 300 servers to 250,000 on 3,400 in one week. Starbucks My Starbucks Ideas online customer collaboration built on Force.com DigitalChalk Online training built and deployed entirely on the web Indy500.com Stream live race footage and statistics Harvard Medical School genetic testing models and simulations

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But they have a lot of work to do to meet enterprise needs

SLAs, proof of 99.99+% uptime SAS-70 audits Security and compliance services Enterprise peer references But
Good enough for startups and SMBs Cheap computing
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Agenda
IT implications of business at Internet speed Cloud computing defined Who is using it and how? Where this is headed Additional resources

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Entire contents 2008 Forrester Research, Inc. All rights reserved.

Cloud computing: The latest evolution of hosting

Source: March 7, 2008 Is Cloud Computing Ready For The Enterprise? 24

Entire contents 2008 Forrester Research, Inc. All rights reserved.

Recommendations to Enterprise Customers

Start experimenting with the cloud.
Learn about its security, processes, HA

Be prepared for your business to experiment with it.

Endorse 1-2 clouds as IT approved Create an inviting atmosphere for collaboration and learning (ITOps learning from the developers)

Let the clouds know what you want.

Set your requirements: Secure enterprise links, standards, SLA expectations, level of support

Build an internal cloud.

Be prepared to flex this cloud to a public cloud provider
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Who can help you build an internal cloud?

Company
3tera Sun Enomalism Elastra

Offering
AppLogic is the leading cloud infrastructure software offering available today. Grid-like Q-layer Agile data center in the cloud is cloud infrastructure software available today. NephOS enables virtual private data center clouds Elastic Compute Platform 2.0 enables flexible use of compute, storage and network across regional data centers via an API. Grid-based Elastra cloud infrastructure allows Windows and Linux guests on multiple VMs

Emerging
IBM VMware Citrix Systems Blue Cloud is a series of initiatives to help enterprises, governments and educational customers build and deploy their own clouds vCloud Initiative VMware ESX, VI4, vCenter suite for cloud, APIs C3: XenServer + NetScaler + Workflow Studio

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One potential strategy: a hybrid model

SOA/ Web Services

Outsourcing

Omnisourcing

Cloud Computing

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Entire contents 2008 Forrester Research, Inc. All rights reserved.

Agenda
IT implications of business at Internet speed Cloud computing defined Who is using it and how? Where this is headed Additional resources

28

Entire contents 2008 Forrester Research, Inc. All rights reserved.

Forrester Consulting Can Help You With Cloud Computing We answer questions like: How should I prioritize my cloud computing efforts? How can I prepare my organization to move to the cloud? What are the best practices in evaluating cloud computing alternatives? How can I ensure corporate buy-in and long term commitment? Benefits to you: Learn how to implement industry best practices. Optimize your IT infrastructure for greater efficiency and business effectiveness. Gain actionable recommendations for the future to secure the highest and quickest possible ROI on your cloud computing efforts. Identify metrics to use in support of business goals.
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What are some of the relevant research reports?

Should Your Windows Apps Move To The Cloud?
December, 2008

Future View: The New Tech Ecosystem Of Cloud, Cloud Services, And Cloud Computing August, 2008 Inquiry Insights: Cloud Computing, Q2 2008 August, 2008 Get Ready For Collaboration In The Cloud March, 2008 Is Cloud Computing Ready For The Enterprise? March,
2008

Google Releases Google Apps Premier Edition

February, 2007

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The Infrastructure & Operations Council

Members are VPs of Infrastructure or senior-most IT staff from multinational organizations. Benefits of the council include access to a dedicated relationship manager, peer insight, regional and annual member meetings, and member-driven conference calls. Upcoming 2009 Member Meeting topics include:
Disaster Recovery Process Planning Getting To Full Data Center Automation How To Be A Great I&O Leader The State Of Virtual Client Technologies What Can The Cloud Do For The Enterprise?

For more information, contact Danielle Palumbo or Megan ODonoghue (Global Council Manager), or visit the Leadership Boards page.
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Upcoming Events for Infrastructure & Operations Professionals

Infrastructure & Operations Forum
March 18-19th, 2009- San Diego, CA This forum is designed for I&O professionals interested in: Virtualizing infrastructure to transform your IT services. Consolidating assets to transform your IT economics. Automating processes to transform your I&O staff. IT Forum, US May 19-22nd, 2009- Las Vegas, NV IT Forum, EMEA June 3-5th, 2009- Berlin, Germany
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Thank you
James Staten +1 650.581.3824 jstaten@forrester.com Danielle Palumbo +1 617.613.6465 dpalumbo@forrester.com

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