Cloud Computing and Virtualization for SMB s Jack Shaw (@jackshaw) Technology Assurance Group San Antonio, TX March 16, 2011
The Queen Elizabeth
Boeing 707
$11B $30B in 5 Years! Market research firm IDC Market for public cloud IT service Expected to grow at an average rate of 21.6% between 2009 and 2014 Reaching almost $30 billion. That compares to revenue of about $11 billion in 2009.
6 Worst Technology Predictions of All Time
Worst Technology Predictions #1 "The Americans have need of the telephone, but we do not. We have plenty of messenger boys." Sir William Preece, Chief Engineer, British Post Office, 1876
The Measure of Power: Bandwidth per Capita Ubiquitous computing is inevitable. Within the next few years, you won't be anywhere that you won't have access to any data plus massive computational capabilities. Bill Wulf, President US National Academy of Engineering, 2002
Time for Change It s not enough to accept change It s not even enough to embrace change You ve got to SEEK OUT change.
Cloud Computing Roadmap Technical Issues Virtualization Networking IaaS / HaaS SaaS Strategic Marketing Issues Education Business Case Virtual CIO
Virtualization Server virtualization: having a single physical server host several virtual server roles. The virtualization of server farms is accelerating as IT managers realize the economic benefits derived from having fewer physical boxes. Virtual Desktop Infrastructure (VDI): A method to provide centralized management and deployment of users virtual personal desktops. Requires a constant network connection for remote access their own desktop.
Why Virtualize? Server Consolidation Business Continuity Protect Business-Critical IT Infrastructure Energy Efficiency Build a Green IT Infrastructure
ROI Analysis Small Manufacturer Yr. 1 Savings by Category 34% 1% 29% 32% 4% Sys. Admin. Cost Provisioning Cost Hardware Testing Productivity Software 2009 Study Done by Major IT Consulting Firm Payback Period: 12.18 Months Initial Investment: $294,583.33 Net Present Value: $669,678.84 Est. 3 Yr. ROI: 227.33% Est. Ave. Ann. ROI: 75.78%
Worst Technology Predictions #2 "Television won't be able to hold onto any market it captures after the first six months. People will soon get tired of staring at a plywood box every night." Daryl Zanuck, film producer, co-founder of 20th Century Fox, 1947
The Data Center Through the Years
Two- and Three Tier Architectures
Worst Technology Predictions #3 There is practically no chance communications space satellites will be used to provide better telephone, telegraph, television, or radio service inside the United States. T. Craven, FCC Commissioner (said in 1961)
What Is Cloud Computing? The National Institute of Standards and Technology (NIST) provides an objective and specific definition: "Cloud computing is a 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."
Service Layers Definition
Power Requirements
Passive Cooling
Power Redundancy
Worst Technology Predictions #4 "There is no reason for any individual to have a computer in his home." Ken Olsen, founder of Digital Equipment, 1977
The Cloud Stack Cloud is not only IaaS SaaS has been around for over 10 years - Mature Bridge the gap b/w SMB and enterprise Mainstream From IT avoidance to IT strategy
The High-speed Growth of SaaS 76% of US companies are using one or more SaaS applications (IDC). 86% adoption rate in SMBs (Microsoft). 65% of U.S. companies with > $100M in yearly revenue are forecasted to be using SaaS (Saugatuck) 50% of all new software - SaaS by 2014 (Saugatuck) SaaS market will grow by 17.7% between 2009-2013, where as perpetual license companies are only growing at 3.6% (Gartner). SaaS market will grow at a CAGR of 22.1% through 2011, 2X the rate of the enterprise SW market (IDC). Gartner expects enterprise SaaS to more than double by 2012. 18% increase in SaaS revenue this year, up to $7.5 billion. Apps.gov SaaS marketplace Microsoft, Google, SAP, Oracle trying to become major players in the SaaS market. I m all about the cloud computing notion. I look at my lifestyle, and I want access to information wherever I am. I am killing projects that don t investigate SaaS first. United States CIO, Vivek Kundra (WSJ)
Worst Technology Predictions #5 "No one will need more than 637KB of memory for a personal computer. 640KB ought to be enough for anybody." Bill Gates, co-founder and chairman of Microsoft, 1986
Educating Your Clients What Is Cloud Computing? Why Use Cloud Computing? Should I Be Concerned About Cloud Computing? How Does Our Business Support Your Move to Cloud Computing?
Aligning Cost to Usage
10 Benefits of Cloud Computing for Small Businesses Lowered Costs Cloud Computing offers tremendous advantages to small and medium size business in terms of reduced costs. You pay for what you use. Scalable Storage Options You can scale your companies storage needs seamlessly rather than having to go out and purchase expensive hardware. Automatic Updates There is no need for IT to worry about paying for future updates in terms of software and hardware. Remote Access Employees can access information wherever they are, rather than having to remain stationary much of the time. Green Computing - Cloud Computing uses less energy than traditional data centers which is important to many in this day and age.
10 Benefits of Cloud Computing for Small Businesses II Ease of Implementation Without the need for implementation of hardware and various other components which can take several hours, you can be running your business in almost as much time as it takes to setup a Facebook account. Skilled Vendors Whom would you rather have managing and protecting your data skilled and dedicated experts or a dedicated, but limited, and expensive, IT staff? Response time Cloud computing accomplishes a better response time in most cases than your standard server hardware. Even playing field for small companies This allows small companies to compete more effectively with some of the larger businesses. This balances the playing field. Performance and Durability - Run your websites and SaaS applications at a much faster rate with the benefits of using a much more durable service.
10 Cloud Computing Security Concerns for Your Clients 1. Where s the data? 2. Who has access? 3. What are your regulatory requirements? 4. Do you have the right to audit? 5. What type of training does the provider offer their employees? 6. What type of data classification system does the provider use? 7. What are the service level agreement (SLA) terms 8. What is the long-term viability of the provider? 9. What happens if there is a security breach? 10. What is the disaster recovery/business continuity plan (DR/BCP)?
Risk Mitigation
Worst Technology Predictions #6 "I predict the Internet will soon go spectacularly supernova and in 1996 catastrophically collapse." Robert Metcalfe, founder of 3Com, inventor of Ethernet, tech pundit and columnist, 1995
River Rouge Ford Plant
More Complex More Competitive
Supply Chain Executive
20 th Century Computing
Cloud Services Stack: 1,000s of new products Business Application Cloud Services Platform Cloud Services Compute & Storage Cloud Services Datacenter Cloud Services Network Cloud Services
21 st Century CIO
How Cloud Computing Is Changing the IT Job Market Emerging Skill Sets Data Mining Web Analytics and Statistics Business Intelligence Decision Management
The New Role of IT in Business IT is no longer a cost of doing business The objective is NOT to minimize IT cost per revenue dollar. Your IT Architecture is a Strategic Asset. The real ROI in Cloud Computing does NOT come from: reduced asset depreciation, lower energy costs, or increased IT staff productivity. The real ROI for IT comes from enabling new business models not possible with conventional IT architectures.
Fasten Your Seatbelts 42
Inevitable Surprises
4 5 End-to-end information flow across the solar system Layered architecture for evolvability and interoperability IP-like protocol suite tailored to operate over long round trip light times Integrated communications and navigation services
Not Just Cloud Computing
Change & Progress Change does not necessarily assure progress, but progress implacably requires change. Historian Henry Steele Commager
Follow Up Jack Shaw, President Breakthrough Business Technologies M: 770-910-5969 jack@e-com.com e-com.com youtube.com/user/jackshaw4728 linkedin.com/in/jackshaw1 twitter.com/jackshaw businesstechnologyfuturist.wordpress.com