PILVIPALVELUT UUDEN BISNEKSEN MAHDOLLISTAJINA
Energiatehokas konesali –seminaari
30.11.2011
Pauli Kuosmanen
CTO
Tieto‐ ja viestintäteollisuuden tutkimus TIVIT Oy
CLOUD BASICS
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CLOUD COMPUTING, HARD TO DEFINE
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PLATFORM EVOLUTION IN ICT •
1980’s
The processor is the platform  Processor architectures
•
1990’s – 2010’s
The operating system is the platform  Software architectures
•
2010’s –
The cloud is the platform
 Service architectures
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A PRETTY GOOD DEFINITION
• Cloud computing is a (still an evolving) model for enabling convenient, on‐
demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction. •
This cloud model promotes availability and is composed of
– five essential characteristics
– three service models, and
– four deployment models.
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FIVE ESSENTIAL CHARACTERISTICS;
THREE SERVICE MODELS;
FOUR DEPLOYMENT MODELS
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CLOUD COMPUTING – BENEFITS
•
Reduce capital expenditures
•
Low barrier to entry
•
Scalable infrastructure
•
Cost‐effective – Pay for what you use
•
Acquire resources on demand
•
Release resources when not needed
•
Virtually infinite compute and storage resources
•
Turn Organization’s fixed cost into variable cost
•
May improve security
•
Patch management/professionally managed services
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THE CONSUMER’S VIEW OF CLOUD
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...Everything is in Cloud
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Open Source and Cloud
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LOCK‐IN PROBLEM IN CLOUDS
Welcome to the hotel California
Such a lovely place
Such a lovely face
Plenty of room at the hotel California
Any time of year, you can find it here
Last thing I remember, I was
Running for the door
I had to find the passage back
To the place I was before
’relax,’ said the night man,
We are programmed to receive.
You can checkout any time you like,
But you can never leave!
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OPEN SOURCE TO FIGHT AGAINST LOCK‐IN
•
OS movement has been fighting against closed systems and lock‐ins
•
The Internet was build over OS
•
This will take place also in Cloud
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BUILDING A CLOUD
GOAL OF OPENSTACK
An open project transforming computing:
Turn Commodity Hardware into a Cloud
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OPEN SOURCE MOVEMENT GOES HARDWARE
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Data tsunami
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EXPANSION OF DIGITAL DATA
>>> CREATION OF HUGE DATA RESERVES
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DATA GROWTH
• In year 2007 the amount of data in the network was around 300 exabytes
(=10^9 * gigabytes)
• In year 2010 we added to the network over 1200 exabytes
•
•
•
•
•
•
•
•
kilo=10^3
mega=10^6
giga=10^9
tera=10^12
peta=10^15
exa=10^18
zetta=10^21
yotta=10^24
DATA RESERVES … JUST DO GROW!
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DATA SOURCES M2M:
Planetary skin
Machines
Sensors
WEB:
Attention
Browse
Search
Click
Create
MOBILE:
Location
Context
Attention
Browse
Search
Time
Who
Click
Create
Consume
TV:
Attention
Time
Consume
DATA RESERVES
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INFLECTION POINTS THINGS
50 B
PEOPLE
5.0 B
Digital Society
Sustainable World
Personal
Mobile
Inflection
points
Global
Connectivity
1875
1900
PLACES ~0.5 B
1925
1950
1975
2000
2025
Source: Ericsson
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ABOUT THE IMPORTANCE OF DATA
•
“We're entering a new world in which data may be more important than software.”
Tim O'Reilly
•
“The future belongs to companies and people that turn data into products.” Mike Loukides, O’Reilly
•
“I think we are witnessing the second industrial revolution. And it is fueled by data.” Abhi Mehta, Bank of America
•
“85% of eBay’s analytic workload is new and unknown. We are architected for the unknown.” Oliver Ratzesberger, eBay
•
“Groupon will not be the first or last organization to compete and win on the power of data. It’s happening everywhere.” Reid Hoffman and James Slavet
Greylock Partners
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Mobile
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SEARCH FOR APPS
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SEARCH FOR APPS
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MOBILE CLOUD
•
Pros:
– Thin clients suit extremely well for the cloud paradigm
– Users are willing to use apps at the time being
•
Problems:
– Variable data rates
– Intermittent connectivity
– Longer network latencies
– Smaller screens
– Management of apps
is frustrating
Picture: Nokia
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CLOUD + HTML5 DISCONTINUITY
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Source: Pasi Nieminen (Nomovok)
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HTML5 & THE TODAY
FUTURE OF WEB
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HTML5
•
HTML5 is a general‐purpose web standard
•
Many of it’s new features are aimed at making the Web a better place for desktop‐style web applications
•
There are numerous additions when compared to the earlier versions of the HTML specification
– It is possible to embed audio and video directly into web pages. This will eliminate the need to use plug‐in components such as Flash for such types of media
– The HTML5 standard will also introduce various new interfaces and APIs that will be available for JavaScript applications.
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HTML5 PROVIDES FOR MOBILE
•
On‐device caching – the possibility to store data off‐line on the device for further processing, reducing the problem of interruptions in mobile connectivity and discontinuous user experience
•
Canvas and video – making it possible to add graphics and video to a web page without having to install third‐party plugins like Flash or Silverlight. When smartphones will generally support HTML5, they provide a powerful way to publish and process media on a page.
•
Geo location – as an additional specification to HTML5, GeoLocation API will utilize smartphones location capabilities for integration with mobile cloud services and apps.
•
Advanced form – mobile devices will benefit from more capable forms than in previous HTML versions, especially as they will reduce the need of downloading Javascript code and cause less round‐trips between device and cloud server as the HTML5 browser becomes more capable.
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WHO LIKES HTML5
Apple
Google
Microsoft
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CLOUD BUSINESS
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WHAT DO CUSTOMERS SAY ABOUT CLOUD
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DRIVERS FOR CLOUD ADOPTION
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INHIBITORS FOR ADAPTATION
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VENDOR’S PRIMARY REVENUE SOURCES
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SERVICES VENDOR’S FEEL THEY SHOULD PROVIDE IN THE FUTURE
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MOST LIKELY SECTORS DISRUPTED BY CLOUD COMPUTING OVER THE NEXT 5 YEARS
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PROFIT MODELS
•
•
•
•
•
•
•
Google Model: “Produce it and they will come”
Value out of meta‐information – “mining reality”
Advertising
Pay‐per‐use
Licensing
Managed Service
Aligned products ‐ “value‐add”
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OPPORTUNITY‐SIDE CHARACTERISICS
1. difficulties of finding, communicating with, and serving and providing value for an unlimited number of international customers, 2. difficulties of product or service transformation, development, and localization or customization, 3. liabilities related to resource and competence scarcity, costs, sunk costs, and resource commitments, 4. challenges regarding information float time, information asymmetries, availability of market information, and to challenges of learning from international customers and markets, 5. spatial, temporal, cultural, and psychic distance related specificities of locations, 6. interdependencies between markets and segments, 7. tyranny of available entry modes and dependence on intermediaries, 8. speeded up adoption and penetration of innovations, and finally 9. avoidance of direct competition and economies of scale effects http://www.cloudsoftwareprogram.org/results
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CHALLENGE‐SIDE CHARACTERISTICS
1. increased global competition, 2. increased export restrictions and legal challenges, 3. deepened regional digital divide, i.e., variation in the proportion of potential customers having web access in a region, 4. difficulties in achieving international legitimacy, 5. increased need for business models, 6. increased challenges of brand management and marketing, 7. logistics challenges, 10. increased complexity of privacy and security issues, 11. increased channel conflict,
12. increased company specific challenges such as
a) need for e‐vision,
b) need for upgrading resources and transforming business processes,
c) cultural capabilities such as language skills,
d) lack of technical capabilities and challenges of adoption of web technologies, 8. difficulties in the protection of knowledge and intangible assets, 13. increased need for the localization of web services and difficulties of cross‐
cultural web design, and 9. challenges in pricing, payments, and fluctuation of currencies, 14. usability of web services from the end‐
user perspective
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http://www.cloudsoftwareprogram.org/results
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LESSONS LEARNED FROM BUSINESS MODEL TRANSFORMATION
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http://www.cloudsoftwareprogram.org/results
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SME ADVANTAGE
•
It is easier for start‐ups to enter Cloud businesses than for incumbent companies to transform from “traditional” software business to Cloud
•
This is not a question of resources and competences – whether technical or business related
•
It is a question of seizing the opportunity and taking the risks of transforming the organization radically
– Changing the organizational, cultural, people, and business processes related practices is much more difficult than building a completely new organization for the new businesses
– This is especially true in situations where one fears that building a Cloud business means cannibalization of existing businesses.
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http://www.cloudsoftwareprogram.org/results
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SMALL APP AND GAME PROVIDER
•
The threshold to create small applications and investment needed to start new businesses is now low
•
Global reach of application stores and piracy protective nature of on‐demand applications ease delivery and sales of small applications
•
In Finland: Strong education system provides talent and success of game firms attracts attention of VC firms
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Strategic Research Agenda
for Finnish Software Industry 2012-2017
(update, public Q1/2012)
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TOOLS TO MAKE WEB AS A PLATFORM
•
Platform functionality and development tools will become available as web services not requiring installation
•
Developers wish to deliver and sell applications simply with the same environment. This creates need to integrate tools for applications development and for example SoMe platforms
•
Race on winning tools is going on.
30.11.2011
Strategic Research Agenda
for Finnish Software Industry 2012-2017
(update, public Q1/2012)
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SECURITY SOLUTIONS
•
Hybrid and public cloud systems have security problems
•
Selling free capacity to external users has security risks
•
Security solutions will be needed
30.11.2011
Strategic Research Agenda
for Finnish Software Industry 2012-2017
(update, public Q1/2012)
43
BROKERING
•
Brokering systems and services are needed on multiple levels providing multiple brokering business opportunities
– Governance and integration of tens of on‐demand services within user organizations requires tools or services
– IT service firms can also adopt this role by providing governance brokering as a service
– Brokers can also provide integration of multiple services into one‐stop‐shopping service bundles or integrated services
– Platform providers are also natural brokers
– Free infrastructure can be monetized by lending it and infrastructure brokers are appearing.
22.6.2011
Strategic Research Agenda
for Finnish Software Industry 2012-2017
(update, public Q1/2012)
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TIVIT AIMS
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ICT TRANSITION ‐ PAST 1980…2007
Global star : Nokia
Nokia driven
mobile business
ecosystem
State of the art
R7
R6
R5
R4
R3
R2
R1
Telecom and
mobile communication
competences and
business
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Challenger
.
.
.
1992: Nokia’s first GSM handset
Nokia launches its first GSM handset, the Nokia
1011.
1991: GSM – a new mobile standard opens up
Nokia equipment is used to make the world’s first
GSM call.
1987: Mobira Cityman – birth of a classic
Nokia launches the Mobira Cityman, the first
handheld NMT phone.
1984: Mobira Talkman launched
Nokia launches the Mobira Talkman portable
phone.
1982: Nokia makes its first digital telephone
switch
The Nokia DX200, the company’s first digital
telephone switch, goes into operation.
1981: The mobile era begins
Nordic Mobile Telephone (NMT), the first
international mobile phone network, is built.
Source and see more in:
Story of Nokia
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ICT TRANSITION – NEW VISION AND STATUS
Digital services businesses
Nokia
1
State of the art
Challenger
Telecom including
mobile communication
competences and
business
Computational including
cloud computing and big data
competences and
business
1. Competence building transition is done!
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2. Accelerate business growth
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THE NEW FINNISH GROWTH – VISION SUMMARY
Tivit programs
Goal
Business focus and growth
Next Media
Service program
Future Internet / IoT
From Data to Intelligence
ICT leadership
Cloud Software
Device and Interoperability
Data intensive digital services
& ICT Enabling the transformation
of other industry verticals
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Summary
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SOME KIND OF SUMMARY
•
Cloud truly creates a billion euro opportunity
•
Open Source
We have traditions
•
Data tsunami
We have very good research community,
but too little business
•
Mobile cloud
We have traditions
– HTML5
•
Tools
•
Innovative services
•
Ecosystems
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Still fresh with plenty of opportunities
Still fresh with plenty of opportunities
Always room
We are suitably small to pilot these first
and scale up afterwards
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