Leading the way to the Cloud:
Considerations for Business/Government/Technology/People
Bob Deutsche
Principal Architect
Intel Corporation
Key Messages
• Intel’s Cloud 2015 Vision
• Current State
• Business, Realities and Ecosystem Dynamics
• Service Delivery Models, Today & Tomorrow
• Transformation Frameworks
2
Cloud 2015 Vision
FEDERATED
Share data
securely across
public and
private clouds
AUTOMATED
IT can focus
more on
innovation and
less on
management
CLIENT AWARE
Optimizing services
based on device
capability
Desktops
Laptops
Netbooks
Personal Devices
Smartphones
Open & Interoperable Solutions Essential
3
Smart TVs
Embedded
How do you view Cloud?
It is Fun!
The Architect
Cloud Current State per Gartner
5
Worldwide Government Policy Implications
Minimum of 6 Factors to Consider…
• Privacy - personal information protected in a cross-jurisdictional
environment
• Competition and Standards - countries forming standards
consortiums along geo-based lines.
• Bandwidth Management – broadband spectrum is finite, shared
spectrum, today in general, cost model is time based, tomorrow more
likely to be volume based
• Sovereignty - multiple jurisdictions having an interest in a single
matter
• Copyright - guarantees that are required to provide filtering features
that comply with appropriate jurisdiction’s rule of law
• Security (logical and physical) – as applied to privacy, data retention,
data architecture, stable service delivery, social infrastructure, user
awareness, compliance, power supply reliability and
telecommunication’s environment.
6
Government Cloud Policy Initiatives by
Geo (work in progress)
EU
• Electronic Commerce Directive
• Data Protection Directive
United States
• Digital Millennium Act
• Communications Decency Act
• U.S. Patriot Act
• FCC Ruling on Net Neutrality
Japan/Some Parts of Asia
• APEC Data Privacy Pathfinder Project
China
7
Current State Security – The Fort Knox
Syndrome1
1End-To-End
8
IT Security, Ed Gerck, Ph.D. 2002, NMA Inc.
DC
Desktops
Identity
9
Firewalls
Laptops
Policy
Netbooks
Personal
Devices
Compliance
Comm
Smartphones Smart TVs
Embedded
Current State Security – Icebergs1
Direct Costs
Indirect Costs
Inefficiency Costs
1Original
10
Idea from Risk Management Security, Improving the USAF Protection Level Asset Security System, Clifford E. Day, Lt. Col., USAF April 2001
Skill Set Implications
 IT relationship with Line of Business
– Multi-Tenant infrastructure engineers
– Dedicated resources versus services model
– Top engineers with breadth to build holistic solutions
 Automation as the norm = Design to Run
 Service Broker/Cloud Broker Role (Telco 2)
 Supply Chain style capacity management
 Application Developers embracing
PaaS/SaaS/SOA concepts faster to prepare new
apps for the cloud
 Remove the silos between Applications,
Engineers, and Operations
11
Challenges
Security & Privacy
• Owner does not control and may not even know location of data
•
Contractual controls may not provide adequate protection
•
Standards for security are lacking
•
How do you audit?
•
Controlled technologies, regulatory and compliance issues are not
sufficiently addressed by SLA
•
Likely this will make many Legal careers
Return on Investment
• Though upfront costs are lower, a total cost of ownership comparison with
internal computing may be more competitive when recurring costs and risks are
taken into account
• Hidden costs; additional network bandwidth may be needed, quality of the
contracts
Service Maturity
• This could easily be the elephant in the room
• Reliability, manageability and support may be sufficient for small and medium
size businesses but may not meet needs of large enterprises
• SLA may be inadequate, or to expensive if held to a higher level of service, for
enterprise use.
• Risk of lock-in proprietary systems; no control over provider outages.
CapX versus OpX Savings
• There is an expectation that money will be saved using a Cloud infrastructure
• Cloud allows enterprises to balance CapX against OpX in an infinite number of
ways
• While there are now proof points which show that real savings are possible, the
operative term is that “results may vary” based on a significant number of factors
that vary from company to company
12
Relevance of Business Concerns: Public vs. Private Cloud
Business issue
Public Cloud
Relevance
Security & Privacy
Private Cloud
Relevance
Note 1
ROI
Service Maturity
CapX versus OpX Savings
Note 2
Government Policy
Skill Set Implications
Note 1: For a time, there was a difference in relevance between how private and public cloud had to consider
security and privacy…those days are done primarily due to governmental policy.
Note 2: Consideration must be given to size of the enterprise, i.e., start-up/SMB has significantly different
technology costs than a medium or large size company
13
Business Imperatives
Pharmaceutical
Services Firm
Ecosystem Drill-Down: Public Cloud
Component
Enterprise
TSP
CSP
Expectations
IT & End
Users
Services
Services
Services
•
Consistent revenue stream
as a factor of increasing
costs
• Consistent revenue
stream
• Illusion of infinite resource
(rapid elasticity_
•
Migration to intelligent
networks
• Viable compute option for
the enterprise
• Sense of ownership &
security
•
Balancing upstream and
downstream load
requirements
• Ubiquitous network
access
•
Telco 1 to Telco 2 business
model change
•
Standardization of
infrastructures
•
Expressed desire to
become a full cloud service
provider (TSP)
• Measured service (cost
savings)
Public
• Limit footprint size of
corporate IT
• Just-in-time
architecture/rapid
procurement and
integration
• Open architecture
15
•
Location-independent
resource pooling
• Likely proprietary
infrastructure
Ecosystem Drill-Down: Private Cloud
Component
Corporate IT
Enterprise
End User/
Business Partners
Expectations
IT & End
Users
•
•
Flexibility (further use of
virtualization investment)
•
Just-in-time
architecture/rapid
procurement and
integration (servicesbased taxonomy)
Private
16
Measured service (cost
savings)
•
Robust security
•
Maintaining headcount
• Cost savings
Services
• Illusion of infinite resource
(services- based
taxonomy/rapid elasticity)
• Sense of ownership and
security
• Self-service
• Reduction of corporate IT
footprint
Ecosystem Conclusions
Cloud computing is a service delivery
framework with multiple stakeholders who have
very different expectations
•
•
•
•
•
17
CEO wants IT to support business growth
CIO wants IT to impact and demonstrate business value
CFO wants effective IT asset utilization (to include outsourced IT)
Shareholders want IT to support business flexibility
Stakeholders all must make a profit (primary driver for Telco’s
moving towards intelligent networks)
Service Delivery Models (Today)1
• Infrastructure-as-a-Service (IaaS)
•Provides virtual server instances with unique IP addresses and blocks of storage on
demand. Instead of the client purchasing servers, software, data center space and
network equipment, they buy these resources as a fully outsourced service. Amazon
Web Services is an example of IaaS.
• Platform-as-a-Service (PaaS)
•Provides a way to rent hardware, operating systems, storage and network capacity
over the internet. It allows the customer to rent virtualized servers and associated
services for running existing applications or developing and testing new ones.
Force.com, (an outgrowth of Salesforce.com) and GoogleApps are examples of PaaS.
• Software-as-a-Service (SaaS)
•The supplier provides an application to customers; service on demand. It includes the
hardware infrastructure, the software product and interacts with the user through a
front-end portal. SaaS is a very broad market, with initial offerings for Sales force
automation and Customer Relationship Management (CRM); now extends to billing,
invoicing, inventory control and database processing. Sales force CRM is an example.
1IT-CMF
18
Clustering for Cloud Computing, Innovation Value Institute, Sept 2010
Service Delivery Models (Tomorrow)
• Business-Process–as-a-Service (BPaaS)
The goal of a Cloud based environment is to develop and execute a
business ecosystem comprised of components (either internally or
externally sourced, perhaps from multiple CSPs); each component being
called (utilized) only as its needed. This environment being necessary
primarily as a means of providing the most flexible and economical
business and application architecture. By nature, it considers not only the
data center end of the Cloud discussion, but also client and telco.
• Network-as-a-Service (NaaS)
This model recognizes that a cloud ecosystem requires a reliable and
secure network. The three measures used for this service include 1)
Access (intelligent infrastructure), 2) Security (trusted broker) and 3)
Quality of the experience.
• Management-as-a-Service (MaaS)
This model recognizes that in both the Private & Public Cloud, there is a
very limited ability to manage end-to-end services in a highly distributed
environment (defined as an ecosystem which is highly virtualized and in
which applications are hosted in multiple areas). SOA, Lifecycle
Maintenance/Costing
19
Cloud Service Delivery Types
+
Component-Based
Application Services
Business
Process as a
Service
Maturity1
Source Code, Content, and
Integration
Place to Run an
Application
_
1
20
Software
as a Service
Platform
as a Service
Infrastructure
Building Blocks
Infrastructure
as a Service
Access,
Security &
Quality of
Experience
Network as a Service
As related to data center, resource management, investment analysis, and service provisioning
Client
Cloud
Platform
Runtime
Service Delivery Mechanisms1
MaaS
Currently no delivery mechanisms
BPO
BPaaS
SaaS
SaaS Experts
Enterprise
Software
PaaS
Web Giants
IaaS
NaaS
Telco Service Providers
Consumer
1Original
21
SI/IT
Outsourcers
SMB
Large
Enterprise
Ecosystems
Concept from IT-CMF Clustering for Cloud Computing, Innovation Value Institute, Sept 2010
Cloud Transformation Strategy:
Framework Convergence
As an Organization
Begins Its Virtualization
Journey, by Necessity
the Infrastructure
Assumes a Services
Based infrastructure
(SBI)
SOA
Service Catalogs
SBI
Utility Infrastructure
Most Organizations’ Cloud
Journeys Start with a Utility
Infrastructure
Time
Virtualization 1.0
22
Virtualization 2.0
Virtualization 3.0
Complexity
Value
Analytics/
Intelligence
Virtualization: Evolving Toward the
Enterprise Cloud
Enterprise Cloud:
Virtualization 3.0
Automation and Resource Scalability
Flexible Resource Management:
Virtualization 2.0
Dynamic Resource Allocation
Consolidation: Virtualization 1.0
Operational Expense Efficiency
23
Phase 1: Basics (Standardize, Standardize,
Standardize)
Where Will You Invest Tomorrow?
It’s Not Just…
• Lower TCO
• Higher performance
• Choice
It’s Also…
The economic platform for
building an enterprise
The Internet Runs on x86 Architecture (Just Ask Google)
24
Phase 2: Define Business Service Delivery
Framework1
Public Cloud
SAAS/PAAS/IAAS/BPAAS/NAAS
• Staffing
• Benefits
• Expenses
• Travel
• Stock
Private Cloud
Service Delivery
Model
• Provisioning
• Streaming
• Remote execution
• Messaging and
collaboration
Infrastructure
• Enterprise
applications
• User profile
management
• Data storage
• Productivity
applications
Profile and Data
Synchronization
Peer –to-Peer
Networking
Rich Client PC
•
•
•
•
1
Source: Intel IT Framework
25
Supports full range of service delivery models
Users continue to work in offline mode
Local processing enables best user experience
Applications and data available even when mobile
Data Center
• Encrypted data cache
• Locally-installed applications
Phase 3: Transform Your Data Center
Infrastructure
Standardization
Consolidated and
Efficient Compute
Flexible Resource
Management
The Gartner Infrastructure Maturity Model* has become a recognized standard
for strategic Infrastructure Transformation.
Intel® Technology Innovation: A Bridge Between Stages
*Other names and brands may be claimed as the property of others.
26
Cloud Computing
Infrastructure
Phase 4: Understand and Manage Your
TCO1
If Cloud Computing is about saving
money, then you need to know what
and how you (IT and end user) spend
today:
Models
and Tools
• Device level (server to client)
• Communications
• Licenses
TCO
• Training
• Product support
Impact
• Energy
• Infrastructure
• Business value
1Source:
Alignment
Innovation Value Institute (IVI) Funding & Budgeting CSP
Intel Technology Helps You Control and Reduce Costs
27
Transformation Maturity Framework
A Model for Understanding the Capability of an Organization
A set of values to measure against
Increasing Time, Maturity, Sophistication, and Perceived Value
28
Attribute
Attribute
Level
Level
Near
Near
Mid
Mid
Future
Future
(Level 1)
(Level
1)
(Level 2)
(Level
2)
(Level 3)
(Level
3)
Attribute
Attribute 1
1
Value
Value
Value
Value
Value
Value
Attribute
Attribute 2
2
Value
Value
Value
Value
Value
Value
Attribute
Attribute n
n
Value
Value
Value
Value
Value
Value
Private Cloud Maturity Framework
Five Vectors of Transformation
Level
Activity
Mid
Future
(Level 1)
(Level 2)
(Level 3)
Compute Model
Compute Model Evolution Over Time
Service Level/
Capability
Transformation to Service-Oriented, Agile Approach
Economic model
Evolution of the Primary Charging Model
Public Cloud
Integration
Increasing Integration with the Public Cloud
Business Delivery
Framework
29
Near
Optimizing Value of Technology Resources
Private Cloud Maturity Framework
Level
Activity
Compute Model
Service Level/
Capability
Economic model
Public Cloud
Integration
Business Delivery
Framework
30
Near
Mid
Future
(Level 1)
(Level 2)
(Level 3)
Utility Infrastructure 1.0
• Dynamic Resource Pools
• Intra DC VM migration (rack to rack)
Utility Infrastructure 2.0
• Automated Dynamic Resource Pools
• Site 2 site (local) VM migration
Integrates with SOA/ESB strategy
Utility Infrastructure 3.0
• Autonomic & Predictive
• Corp-Corp global VM migration
SOA/ESB
• Corp-Corp BP agility
(Level 1) plus :
(Level 2) plus :
DaaS (Data as a Service)
CaaS (Client as a Service) – the
“stateless PC”
Wide Intra company SLAs
NaaS
*aaS
Location & Device Awareness
Biz Proc “on the fly”
SLAs span organizations
MaaS
Pay Per VM – purchase a virtual
processor, memory,
storage Service level cost e.g.
bronze, silver, gold
Fixed Price Service Cost for a
solution ala “monthly line rental”
for a given service level
Pay per use at
user/departmental/LOB level; “fine
grained” by service level
Social media
Simple Cloud Burst
Cloud burst
Simple and non-critical
applications
Extended Cloud Burst
Non mission critical apps
Standard functions (e.g. HR)
Some level of standardized
mechanism and process available
to assess the value of one
business process against another
IT capabilities aligned and
optimized with business value
indices
Technology investment, risk and
ROI coordinated with the values of
business strategies
IaaS – on demand
PaaS – on demand
Limited SaaS and Self Service
Apps
SLAs go service oriented
Transformation/Maturity Convergence
Function1
Definition1
Categories1
Sourcing
Setting the basis for a successful
relationship with selected partner(s) to
maximize business value contribution
1. Strategy
2. Contracting
3. Execution
Enterprise
Architecture
Provides the necessary models and
practices for defining, planning and
managing the business and IT capabilities
for data, technology, applications and
business.
1. Practice
2. Planning
3. People
Technical
Infrastructure
Describes the management (including
security) of physical IT assets, 0perating
systems & firmware, mobile devices, voice,
networks and Data storage
1.
2.
3.
4.
Service
Provisioning
Combination of people, processes and
technology and typically defined in a
Service Level Agreement.
1. Transitional activities
2. Operational
3. Configuration
management
Risk
Management
Assess, monitor and minimize exposure
and potential impact of IT risks level.
1. Governance
2. Profile
3. Assessment
1IT-CMF
Private
Decentralized IT
Network
Back-end/DC
Overarching
activities
Clustering for Cloud Computing, Innovation Value Institute, Sept 2010
Public