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Leading the way to the Cloud: Considerations for Business/Government/Technology/People Bob Deutsche Principal Architect Intel Corporation

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2 Key Messages Intels Cloud 2015 VisionIntels Cloud 2015 Vision Current StateCurrent State Business, Realities and Ecosystem DynamicsBusiness, Realities and Ecosystem Dynamics Service Delivery Models, Today & TomorrowService Delivery Models, Today & Tomorrow Transformation FrameworksTransformation Frameworks

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3 Cloud 2015 Vision AUTOMATED AUTOMATED IT can focus more on innovation and less on management FEDERATED FEDERATED Share data securely across public and private clouds CLIENT AWARE Optimizing services based on device capability CLIENT AWARE Optimizing services based on device capability Open & Interoperable Solutions Essential DesktopsLaptopsEmbeddedSmartphonesNetbooks Personal Devices Smart TVs

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It is Fun! The Architect How do you view Cloud?

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5 Cloud Current State per Gartner

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6 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 jurisdictions 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 telecommunications environment.

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7 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

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8 Current State Security The Fort Knox Syndrome 1 1 End-To-End IT Security, Ed Gerck, Ph.D. 2002, NMA Inc.

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9 DesktopsLaptops EmbeddedSmartphonesNetbooksPersonal Devices Smart TVs Identity Policy Compliance Firewalls DCComm

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10 Current State Security Icebergs 1 Direct Costs Indirect Costs Inefficiency Costs 1 Original Idea from Risk Management Security, Improving the USAF Protection Level Asset Security System, Clifford E. Day, Lt. Col., USAF April 2001

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11 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

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12 Challenges

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13 Relevance of Business Concerns: Public vs. Private Cloud Business issue Public Cloud Relevance Private Cloud Relevance Security & Privacy ROI Service Maturity CapX versus OpX Savings Government Policy Skill Set Implications Note 2 Note 1: For a time, there was a difference in relevance between how private and public cloud had to consider security and privacythose 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 Note 1

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Business Imperatives Pharmaceutical Services Firm

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15 ComponentEnterpriseTSPCSP Expectations Measured service (cost savings) Illusion of infinite resource (rapid elasticity_ Sense of ownership & security Limit footprint size of corporate IT Just-in-time architecture/rapid procurement and integration Open architecture Consistent revenue stream as a factor of increasing costs Migration to intelligent networks Balancing upstream and downstream load requirements Telco 1 to Telco 2 business model change Standardization of infrastructures Expressed desire to become a full cloud service provider (TSP) Consistent revenue stream Viable compute option for the enterprise Ubiquitous network access Location-independent resource pooling Likely proprietary infrastructure Ecosystem Drill-Down: Public Cloud IT & End Users Services Public Services

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16 ComponentCorporate ITEnterprise End User/ Business Partners Expectations Measured service (cost savings) Flexibility (further use of virtualization investment) Just-in-time architecture/rapid procurement and integration (services- based taxonomy) Robust security Maintaining headcount Cost savings Illusion of infinite resource (services- based taxonomy/rapid elasticity) Sense of ownership and security Self-service Reduction of corporate IT footprint IT & End Users Ecosystem Drill-Down: Private Cloud Services Private

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17 Cloud computing is a service delivery framework with multiple stakeholders who have very different expectations 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 Telcos moving towards intelligent networks) Ecosystem Conclusions

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18 Service Delivery Models (Today) 1 Infrastructure-as-a-Service (IaaS)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.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)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.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)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.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. 1 IT-CMF Clustering for Cloud Computing, Innovation Value Institute, Sept 2010

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19 Service Delivery Models (Tomorrow) Business-Processas-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

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20 Cloud Service Delivery Types Network as a Service Infrastructure as a Service Platform as a Service Platform as a Service Software as a Service Software as a Service Business Process as a Service Client Cloud Platform Runtime Access, Security & Quality of Experience Infrastructure Building Blocks Place to Run an Application Source Code, Content, and Integration Component-Based Application Services 1 As related to data center, resource management, investment analysis, and service provisioning _ Maturity 1 +

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21 Service Delivery Mechanisms 1 BPaaS SaaS PaaS IaaS NaaS MaaS Consumer SMB Large Enterprise Ecosystems Telco Service Providers Web Giants SI/IT Outsourcers SaaS Experts Enterprise Software BPO Currently no delivery mechanisms 1 Original Concept from IT-CMF Clustering for Cloud Computing, Innovation Value Institute, Sept 2010

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22 Cloud Transformation Strategy: Framework Convergence Time Value Complexity Utility Infrastructure SOA Analytics/ Intelligence Most Organizations Cloud Journeys Start with a Utility Infrastructure SBI Virtualization 1.0 Virtualization 3.0 As an Organization Begins Its Virtualization Journey, by Necessity the Infrastructure Assumes a Services Based infrastructure (SBI) Service Catalogs Virtualization 2.0

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23 Virtualization: Evolving Toward the Enterprise Cloud Consolidation: Virtualization 1.0 Operational Expense Efficiency Consolidation: Virtualization 1.0 Operational Expense Efficiency Enterprise Cloud: Virtualization 3.0 Automation and Resource Scalability Enterprise Cloud: Virtualization 3.0 Automation and Resource Scalability Flexible Resource Management: Virtualization 2.0 Dynamic Resource Allocation Flexible Resource Management: Virtualization 2.0 Dynamic Resource Allocation

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24 Phase 1: Basics (Standardize, Standardize, Standardize) Its Not Just Lower TCO Higher performance Choice Its Also The economic platform for building an enterprise Where Will You Invest Tomorrow? The Internet Runs on x86 Architecture (Just Ask Google)

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25 Phase 2: Define Business Service Delivery Framework 1 Public Cloud SAAS/PAAS/IAAS/BPAAS/NAAS Private Cloud Staffing Benefits Expenses Messaging and collaboration Infrastructure Enterprise applications Rich Client PC 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 Peer to-Peer Networking Profile and Data Synchronization 1 Source: Intel IT Framework Service Delivery Model Provisioning Streaming Remote execution Service Delivery Model Provisioning Streaming Remote execution Data Center Encrypted data cache Locally-installed applications Travel Stock User profile management Data storage Productivity applications

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26 Standardization Consolidated and Efficient Compute Phase 3: Transform Your Data Center Infrastructure 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.

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27 Phase 4: Understand and Manage Your TCO 1 Models and Tools Impact TCO Alignment If Cloud Computing is about saving money, then you need to know what and how you (IT and end user) spend today: Device level (server to client) Communications Licenses Training Product support Energy Infrastructure Business value 1 Source: Innovation Value Institute (IVI) Funding & Budgeting CSP Intel Technology Helps You Control and Reduce Costs

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28 Transformation Maturity Framework Increasing Time, Maturity, Sophistication, and Perceived Value A set of values to measure against A Model for Understanding the Capability of an Organization Level Attribute Near (Level 1) Mid (Level 2) Future (Level 3) Attribute 1 Value Attribute 2 Value Attribute n Value

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29 Private Cloud Maturity Framework Level Activity Near (Level 1) Mid (Level 2) Future (Level 3) Compute Model Service Level/ Capability Economic model Public Cloud Integration Business Delivery Framework Five Vectors of Transformation Compute Model Evolution Over Time Transformation to Service-Oriented, Agile Approach Evolution of the Primary Charging Model Increasing Integration with the Public Cloud Optimizing Value of Technology Resources

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30 Private Cloud Maturity Framework Level Activity Near (Level 1) Mid (Level 2) Future (Level 3) Compute Model 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 Service Level/ Capability IaaS on demand PaaS on demand Limited SaaS and Self Service Apps SLAs go service oriented (Level 1) plus : DaaS (Data as a Service) CaaS (Client as a Service) the stateless PC Wide Intra company SLAs NaaS (Level 2) plus : *aaS Location & Device Awareness Biz Proc on the fly SLAs span organizations MaaS Economic model 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 Public Cloud Integration Social media Simple Cloud Burst Cloud burst Simple and non-critical applications Extended Cloud Burst Non mission critical apps Standard functions (e.g. HR) Business Delivery Framework 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

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Transformation/Maturity Convergence Function 1 Definition 1 Categories 1 PrivatePublic 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.Decentralized IT 2.Network 3.Back-end/DC 4.Overarching activities 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 1 IT-CMF Clustering for Cloud Computing, Innovation Value Institute, Sept 2010

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