COMPUTING PARADIGM DISRUPTIONS

More than just a tech shift

TECHNOLOGY MAINFRAME ECONOMIC

General purposed machines. Centralized compute & storage, thin clients

CLIENT-SERVER

Computing technology become available to businesses. Optimized for efficiency due to high cost

PCs and servers for distributed compute, storage, GUI, etc.

Computing on everyones desk. Optimized for agility due to low cost and ease of use.

CLOUD

Large DCs, commodity HW, scale-out, devices, automation, self service.

Enterprise computing becomes affordable. Order of magnitude better efficiency and agility

Application runs

on-premises

Application runs at a hoster

Application runs using cloud platform

manage my own data center

Pay someone to host my application using hardware that I specify

Buy my own hardware, and

Public Cloud Economics

Loss of Control over data

Traditional
Applications Data You manage Runtime Middleware O/S Virtualization Servers

Infrastructure
You manage Applications Data Runtime Middleware
O/S
Managed by provider

You manage

(as a Service)

(as a Service) Applications Data Runtime Middleware O/S Virtualization Servers Managed by provider

Platform

(as a Service) Applications Data Runtime Middleware O/S Virtualization Servers Managed by provider

Software

Virtualization Servers

Storage
Networking Operations

Storage
Networking Operations

Storage
Networking Operations

Storage
Networking Operations

Client Systems & Applications

Software

Operations and System Management

Middleware Platform Servers

Operating System Storage Security

Directory/ID Management

Network

Client Systems & Applications

Software

Operations and System + Virtual Machine Management

Middleware Platform Hardware

Operating System Virtualization Storage Security

Directory/ID Management

Network

Client Systems & Applications

Software

Operations and System + Virtual Machine Management

Middleware Platform Hardware

Operating System Virtualization Storage Security

Service Management

Directory/ID Management

Network

Service Interface

Directory/ID Management

Server Nodes (Workload)

Storage

Operations and System + Virtual Machine Management

Service Interface
Operations and System + Virtual Machine Management

Cost of power. Electricity cost representing 15%-20%. Power Usage Effectiveness (PUE) tends to be significantly lower in large facilities. Bulk purchase of power can be 25% of normal rates. Infrastructure labor costs. Typical enterprise 1 admin/140 servers. Cloud 1 admin/thousands. Security and reliability. Fixed level of investment required to achieve operational security and reliability. Large commercial cloud providers are often better able to bring deep expertise to bear on this problem than a typical corporate IT department. Buying power. Operators of large data centers can get discounts on hardware purchases of up to 30 percent over smaller buyers. With cloud, infrastructure homogeneity enables scale economies.

100%

75%

CPU Utilizaiton

50%

25%

0%

Time

7,500

5,000

Overprovisioning
2,500

1 2 3 4 5 6 7 8 Upside 9 10 11 12 Months from Planning Date Expected

Single instance of application for multiple customers

Fixed application labor amortized over a large number of customers. Shared application management (updates, upgrade management and incident resolution) shared across a large number of customers drives down cost/customer. Fixed component of server utilization amortized over large number of customers. For each application instance, there is a certain amount of server overhead, hence sharing one instance for many customers reduces these overheads.

Studies show that a 100,000-server datacenter can have 80% lower total cost of ownership (TCO) compared to a 1,000-server datacenter.

Elasticity is a game-changer Being able to both scale up and scale down resource intensity nearly instantly enables a new class of experimentation and entrepreneurship. Elimination of capital expenditure Will significantly lower the risk (e.g. avoid costly write-offs), allowing for more experimentation. Self-service. Provisioning servers through a simple web portal rather than through a complex IT procurement and approval chain can lower friction in the consumption model. Reduction of complexity. Complexity has been a long standing inhibitor of IT innovation. SaaS is setting a new bar for user friendly software to end users. Platform as a Service (PaaS) greatly simplifies writing new applications by developers.

Power Conversion

Microsoft Average PUE Targets for Modern Cloud DCs New DCs
2.200

Cooling
2.000 1.800

Hoteling

1.600

1.400

Systems
1.200

1.000 2006 2008 PUE 2010 2012

Typical DCs PUE : 4 Best in class enterprise DC PUE : 2

Compute

Compute

Average Usage

Average Usage

Time

Time

Compute

Compute

Inactivity
Period Average Usage

Average Usage

Time

Time

$5,000
$4,000

$4,449
$645
$721

$TCO/Server

$3,000

$1,142
$2,000

$2,361
$72 $193 $723
$1,373 100k Server DC

$1,000
$0

$1,940

1k Server DC

Server Hardware

Facility

Hardware Operations (Labor)

Power

Public Cloud Economics

Less Control over data

Evolution Revolution

I am going to save money! I am going to lose my job!

IT Worker

CIO

23 Mio SMEs in Europe Entrepreneurs / Bizspark Capex -> Opex 40.000 ISVs

2. Increase investment in innovation.

1. Leverage on cloud to make enterprise ICT more affordable.

Source: Prof. Federico Etro, The economic impact of cloud computing in Europe www.intertic.org/Policy%20Papers/CC.pdf

traditional

Source: Prof. Federico Etro, Introducing Cloud Computing, Results from a simulation study www.intertic.org/Policy%20Papers/CC.pdf

opportunities economic (national) l

macro

Customers should own and have control of their data, and providers should facilitate this. Easy migration path that balances existing investments with cloud economics through interoperable coexistence. Based on commonly used standards to facilitate interoperability. Choice in software development tools, languages and runtimes leverage on existing skills.

Deployment Choice Hybrid solutions balancing cost vs control.

Public Cloud Economics

Less Control over data

Standards and Choice in Development

SOAP SAML HTTP WS-Eventing

AtomPub

WS-Trust REST

Azure Platform
WS-Man

RSS

OpenID

Standards based interoperability

 Shift to Cloud First policy. Each agency will identify three must move services within three months, and move one of those services to the cloud within 12 month and the remaining two within 18 months.

The three-part strategy on cloud technology will revolve around using commercial cloud technologies where feasible, launching private government clouds, and utilizing regional clouds with state and local governments where appropriate.
Reduce number of Federal data centers by at least 800 by 2015

Open Areas
Areas of Concern 1 Seamless Security Drivers Data access, privacy, security & trust. Compliance & Risk Management. Identity & Access Management. Service Integrity. Endpoint integrity. Information protection. Policy framework and sovereignty.

Seamless Scalability

Performance and throughput. Parallel programming. Storage. Dynamic scalability.

Reliability. Energy efficiency. Architectures and Interoperability (between cloud, between cloud and on-premise software). Databases (federated, data location, etc). Standards. Etc.

Others

Discussion Applying Patterns to Research?

Pattern 1 Transference : Taking existing on-premise app and moving it to the cloud. Scale & Multi-Tenancy: Ability to handle web load without full capital investment from day 1. Burst Compute: Ability to handle additional compute on an as needed basis. Elastic Storage: Creating an application where storage can grow exponentially. Areas of interest Email? Performance testing? Social networking? Accelerating research? Prototyping? HPC?

Business intelligence? Genomics?

Inter-Organization Communications: Application that has the ability to communicate between organizations using the cloud as the predefined hub.

Research collaboration. Data sharing.

Middleware (EAI, EII, ETL) Core Platforms (DB, App Server) Operating System (Windows, Linux, Mainframe) Virtual Machine, Management Tools Hardware

Development Tools

Customization

Value

Software as a Service (SaaS)

Value

Middleware (EAI, EII, ETL)

Platform as (DB, App Server) Core Platforms a Service (PaaS)

Operating System (Windows, Linux, Mainframe)

Infrastructure as a Service (IaaS)

Hardware

Virtual Machine, Management Tools

Development Tools

Software Services and Innovation