Cloud computing marketing vision Mikhail Rubinov
Contents User view on cloud Technological vision Definition Cloud service structure Charging models Business outlook Orange corporate plans (skipped) What we can do in Russia in cloud computing? (skipped) Next steps (skipped)
User view on cloud
User view on cloud Cloud computing is  dedicated computer / server with unlimited resources paid for usage located somewhere in the world, accessible via network
Cloud = xaaS How can you see the cloud? IaaS, PaaS: as a utility / resources for your task If you want to build own software/solution SaaS, CaaS: as working application If you want just use ready software/solution
Technological vision
Two main technologies lead to cloud Virtualization (1960s) virtualization of computers or operating systems.  It hides the physical characteristics of a computing platform from users, instead showing another abstract computing platform (wikipedia) Usage of “virtual machines”, which can share same physical resources
Two main technologies lead to cloud (cont.) ASP model (“ computing as a utility ”   – 1961) business that provides computer-based services to customers over a network  ASP fully owns and operates the software application(s) ASP owns, operates and maintains the servers that support the software ASP makes information available to customers via the  Internet  or a " thin   client "   ASP bills on a "per-use" basis or on a monthly/annual fee
Virtualization + Cluster + ASP = Cloud ASP  application delivery model / pay-as-you-go / user not an owner of SW Virtualization  many virtual machines on one platform Cluster scalable resources on standard HW
cloud computing is the next step towards network and IT convergence 1970’s the age of dedicated IT and communications 1990’s the age of shared IT  and communications IT network next cloud computing sleek rack and blades servers client-server model major software suites Internet revolution virtual private network managed IP VPN huge dedicated servers bespoke proprietary systems high costs, no flexibility private network  leased lines network IP VPN virtualized on demand shared, private and  virtual private infrastructures applications usage-based billing
Evolution leads to xaaS
Why cloud? Drivers computer usage efficiency usage of standard HW flexibility extensibility economy of scale central management fast provisioning pay-as-you-go green
Orange internal cloud building results minutes 15 resources provisioning total of 7,700 VM (1,700 servers) 1 2 3 server’s use deployment of virtual machines (from 285 W to 70W per machine) 1.5 Megawatts/month saved  30 days to
Definition
Orange definition and vision of Cloud Computing Cloud computing   is a model for enabling ubiquitous, convenient, on-demand  network   access to a shared pool   of configurable   computing resources   (e.g., networks, servers, mobile devices, storage, applications, and services) that can be   rapidly provisioned and released   with minimal management effort or service provider interaction.  Inspired from: NIST (National Institute of Standards and Technologies) NETWORK ACCESS EQUIPMENT CLOUD Software as a service Infrastructure as a service one stop shop  high performance and low latency control and security virtualization expertise scalable pricing PROFESSIONAL SERVICES end to end SLA on demand, self-service model
Cloud services structure
1 st  dimension: cloud owner
Clouds mapped to airlines
2 nd  dimension: cloud function delivered to end-user
Combination
Service segmentation
Pay-as-you-go/variable Pros: you only pay for what you use; more business relevant Cons: user management; premium for utility access Tiered commitments Pros: reduced rates as usage increases; positive for growing businesses Cons: direct demand/usage link removal Upfront fee Pros: usage only by BUs prepared to commit upfront; payment for usage types Cons: requires upfront commitment; incorrect demand profiling Schedule-based Pros: useful for those with clear demand and planning needs; targeted/scheduled payment for use Cons: not useful for those with consistent and predictable demands Charging models available
Business outlook
Is cloud real? Look at the results: IaaS
PaaS
SaaS
Why? “Infinite” on-demand resources and high usage efficiency
Totally: what it gives the customer?
Top reasons for enterprise Source: Forrester, 1.12.2009
It is an emerging market Source: Forrester, 1.12.2009
Cloud Services as a  % of IT: 6x times faster than on-premise IT 44 17 0 100 200 300 400 500 600 2009 2013 Worldwide IT Spending ($ billion) 359 416 Source: IDC, September 2009 Worldwide IT Spending by Consumption Model IT Cloud Services On-Premise IT 5% 10% CAGR 26% 4%
Business conclusion Cloud is good way for business development Customer business benefits are clear Operator benefits are fully used Competencies Network Data centers Evolution, not revolution Market is there, rapid growth forecasted Enterprises interested
But risks are also there for the customer
Backup
(Yankee group, Forrester)
Top IT priorities – Russia included Forrester, 2009
IaaS and PaaS adoption, Yankee group
Cloud adoption, Gartner

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Cloud computing

  • 1. Cloud computing marketing vision Mikhail Rubinov
  • 2. Contents User view on cloud Technological vision Definition Cloud service structure Charging models Business outlook Orange corporate plans (skipped) What we can do in Russia in cloud computing? (skipped) Next steps (skipped)
  • 3. User view on cloud
  • 4. User view on cloud Cloud computing is dedicated computer / server with unlimited resources paid for usage located somewhere in the world, accessible via network
  • 5. Cloud = xaaS How can you see the cloud? IaaS, PaaS: as a utility / resources for your task If you want to build own software/solution SaaS, CaaS: as working application If you want just use ready software/solution
  • 7. Two main technologies lead to cloud Virtualization (1960s) virtualization of computers or operating systems. It hides the physical characteristics of a computing platform from users, instead showing another abstract computing platform (wikipedia) Usage of “virtual machines”, which can share same physical resources
  • 8. Two main technologies lead to cloud (cont.) ASP model (“ computing as a utility ” – 1961) business that provides computer-based services to customers over a network ASP fully owns and operates the software application(s) ASP owns, operates and maintains the servers that support the software ASP makes information available to customers via the  Internet  or a " thin client " ASP bills on a "per-use" basis or on a monthly/annual fee
  • 9. Virtualization + Cluster + ASP = Cloud ASP application delivery model / pay-as-you-go / user not an owner of SW Virtualization many virtual machines on one platform Cluster scalable resources on standard HW
  • 10. cloud computing is the next step towards network and IT convergence 1970’s the age of dedicated IT and communications 1990’s the age of shared IT and communications IT network next cloud computing sleek rack and blades servers client-server model major software suites Internet revolution virtual private network managed IP VPN huge dedicated servers bespoke proprietary systems high costs, no flexibility private network leased lines network IP VPN virtualized on demand shared, private and virtual private infrastructures applications usage-based billing
  • 12. Why cloud? Drivers computer usage efficiency usage of standard HW flexibility extensibility economy of scale central management fast provisioning pay-as-you-go green
  • 13. Orange internal cloud building results minutes 15 resources provisioning total of 7,700 VM (1,700 servers) 1 2 3 server’s use deployment of virtual machines (from 285 W to 70W per machine) 1.5 Megawatts/month saved 30 days to
  • 15. Orange definition and vision of Cloud Computing Cloud computing is a model for enabling ubiquitous, convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, mobile devices, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction. Inspired from: NIST (National Institute of Standards and Technologies) NETWORK ACCESS EQUIPMENT CLOUD Software as a service Infrastructure as a service one stop shop high performance and low latency control and security virtualization expertise scalable pricing PROFESSIONAL SERVICES end to end SLA on demand, self-service model
  • 17. 1 st dimension: cloud owner
  • 18. Clouds mapped to airlines
  • 19. 2 nd dimension: cloud function delivered to end-user
  • 22. Pay-as-you-go/variable Pros: you only pay for what you use; more business relevant Cons: user management; premium for utility access Tiered commitments Pros: reduced rates as usage increases; positive for growing businesses Cons: direct demand/usage link removal Upfront fee Pros: usage only by BUs prepared to commit upfront; payment for usage types Cons: requires upfront commitment; incorrect demand profiling Schedule-based Pros: useful for those with clear demand and planning needs; targeted/scheduled payment for use Cons: not useful for those with consistent and predictable demands Charging models available
  • 24. Is cloud real? Look at the results: IaaS
  • 25. PaaS
  • 26. SaaS
  • 27. Why? “Infinite” on-demand resources and high usage efficiency
  • 28. Totally: what it gives the customer?
  • 29. Top reasons for enterprise Source: Forrester, 1.12.2009
  • 30. It is an emerging market Source: Forrester, 1.12.2009
  • 31. Cloud Services as a % of IT: 6x times faster than on-premise IT 44 17 0 100 200 300 400 500 600 2009 2013 Worldwide IT Spending ($ billion) 359 416 Source: IDC, September 2009 Worldwide IT Spending by Consumption Model IT Cloud Services On-Premise IT 5% 10% CAGR 26% 4%
  • 32. Business conclusion Cloud is good way for business development Customer business benefits are clear Operator benefits are fully used Competencies Network Data centers Evolution, not revolution Market is there, rapid growth forecasted Enterprises interested
  • 33. But risks are also there for the customer
  • 36. Top IT priorities – Russia included Forrester, 2009
  • 37. IaaS and PaaS adoption, Yankee group

Editor's Notes

  • #11: In the 70’s , IT was based on dedicated servers and networks were made of leased lines. The result was high costs and no flexibility. In the 80’s , IT and network became shared, thanks to client-server models, IPVPN’s, and of course the revolution of the Internet. This led to increased flexibility and reduced costs BUT no rapid scalability, a lot of IT resource was still wasted, and definitely not close to the business. Then , enabled by new virtualization technologies, Cloud Computing arrived with on-demand services, bearing many promises, starting with flexibility, a faster adaptation to business requirements and usage-based billing. But Cloud Computing as it is today does not fully meet enterprises' needs: it creates complexity: for each cloud service you need, you have to deal with a different service provider, each with a specific order process, a specific bill, a specific management portal, and specific support process. What’s more, your applications do not communicate! And the multiplication of providers and portals creates potential user management security issues it lacks the performance guarantees that enterprises need for their critical applications: the providers of cloud computing services based on internet access typically do not offer any SLAs or only offer SLAs for the elements that they control within their data center. In addition, access through the internet does not allow quality of service management or acceleration which can latency or congestion and a poor end-user experience. it doesn’t addresses enterprises' security concerns because the public Internet is not by nature designed to guarantee data security and confidentiality. As a result, Internet-class Clouds are only to be used for non-critical environments and do not allow massive adoption of offers as a service. = = = = = = additional comments re. security some internet-based cloud computing service providers state that it is up to the customer to add security in their virtual environment only few of them propose IPSec tunnels over the Internet e.g. Amazon with their Virtual private-cloud offer. encryption and strong end-to-end authentication may help to mitigate the security risks of the internet to an adequate level. But it’s still not sufficient for entreprises who have strict security and confidentiality requirements.
  • #14: We now know that we can handle big scale virtualisation and get the benefits. 1.5 MW is a small – medium sized town. Resource provisioning wasn’t a major target, but we have made huge improvements, which not only serve the business better but have an additional effect on costs. Most of the servers we’ve virtualised are production. We’re now one of the biggest adopters of V m ware around.
  • #16: On-demand self-service. A consumer can unilaterally provision computing capabilities, such as server time and network storage, as needed automatically without requiring human interaction with each service’s provider. Broad network access. Capabilities are available over the network and accessed through standard mechanisms that promote use by heterogeneous thin or thick client platforms (e.g., mobile phones, laptops, and PDAs). resource pooling. The provider’s computing resources are pooled to serve all consumers using a multi-tenant model, with different physical and virtual resources dynamically assigned and reassigned according to consumer demand. The customer generally has no control or knowledge over the exact location of the provided resources but may be able to specify location at a higher level of abstraction (e.g., country, state, or datacenter). Examples of resources include storage, processing, memory, network bandwidth, and virtual machines. Rapid elasticity. Capabilities can be rapidly and elastically provisioned to quickly scale up and rapidly released to quickly scale down. To the consumer, the capabilities available for provisioning often appear to be infinite and can be purchased in any quantity at any time. Measured Service. Cloud systems automatically control and optimize resource use by leveraging a metering capability at some level of abstraction appropriate to the type of service (e.g., storage, processing, bandwidth, and active user accounts). Resource usage can be monitored, controlled, and reported providing transparency for both the provider and consumer of the utilized service. Scalable pricing , pricing needs to be rapidly scalable, up or down, to match the real usage of resources. Cloud Software as a Service (SaaS). The capability provided to the consumer is to use the provider’s applications running on a cloud infrastructure and accessible from various client devices through a thin client interface such as a Web browser (e.g., web-based email). The consumer does not manage or control the underlying cloud infrastructure, network, servers, operating systems, storage, or even individual application capabilities, with the possible exception of limited user-specific application configuration settings. Cloud Platform as a Service (PaaS). The capability provided to the consumer is to deploy onto the cloud infrastructure consumer-created applications using programming languages and tools supported by the provider (e.g., java, python, .Net). The consumer does not manage or control the underlying cloud infrastructure, network, servers, operating systems, or storage, but the consumer has control over the deployed applications and possibly application hosting environment configurations. Cloud Infrastructure as a Service (IaaS). The capability provided to the consumer is to rent processing, storage, networks, and other fundamental computing resources where the consumer is able to deploy and run arbitrary software, which can include operating systems and applications. The consumer does not manage or control the underlying cloud infrastructure but has control over operating systems, storage, deployed applications, and possibly select networking components (e.g., firewalls, load balancers). Private cloud. The cloud infrastructure is owned or leased by a single organization and is operated solely for that organization. Note that the provider gives a company the illusion that it is benefiting from a private environment but this does not necessarily mean that resources are not shared. In fact, we believe that there MUST be some level of resource-sharing (which can fluctuate depending on the needs of the customer and their budget) to be truly cloud and deliver elasticity and cost-savings. Public cloud. The cloud infrastructure is owned by an organization selling cloud services to the general public or to a large industry group. Hybrid cloud . The cloud infrastructure is a composition of two clouds (private and public) that remain unique entities but are bound together by standardized or proprietary technology that enables data and application portability (e.g., cloud bursting).