oracle open world preso on cloud economics
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© 2011 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are the property of their respective owners.
Ron Batra, Director, Cloud Computing October 1, 2012
Session ID: CON7393 Session Title: Cloud Economics - A Business Case Approach Oracle Open World 2012
Speaker Bio
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Currently leads Product Development and Management for AT&T Hosting, Cloud and Application Services.
•~18+ years cross industry technology experience in IT, Consulting and Product Management, in Sales, Delivery and Leadership roles from $500K to $20MM.
•Oracle experience include Database, Apps and Middleware.
•Industry vertical includes Energy, Utilities, Semi-Conductor, Telecom, Healthcare, Finance, Automotive, Aerospace, Retail
•Served as an Oracle Deputy CTO – 2008-2009,
•Serving as an Oracle ACE Director – since 2007
•Serve User Groups (IOUG, OAUG) in several capacities.
Contact Information
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www.linkedin.com/in/ronbatra
@ronbatra
rb9360@att.com
+15129348659
4
Safe Harbor and Disclaimer
Information contained in this presentation represents my views only. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions.
All content is copyrighted and no reproduction in any format allowed, unless authorized by the author.
© 2011 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are the property of their respective owners.
AT&T in the Cloud Space
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© 2011 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are the property of their respective owners.
AT&T is Focused on Delivering Highly Secure, Reliable
Cloud
Building on a history in multi-tenancy and infrastructure services
• Global experience securing 38 data centers globally, with audited network, logical and physical controls
• Broad experience managing and securing multi-tenant environments
• Extensive experience providing separation in virtual, shared infrastructures
• Corporate wide focus on layered security, including investment in AT&T Labs to combat cyber threats
Layered Security Protects the Cloud
Logical
Physical
Network
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Enterprise
AT&T Cloud Architect Joins a Portfolio of Application Solutions
7
Self-service multi-tenant public cloud
Managed virtualized multi-tenant (virtual private)
Managed virtualized dedicated (private)
Highly reliable physical infrastructure
z
On-Demand Self Service
AT&T Managed Solutions Client Managed
AT&T Network
AT&T Cloud Architect Flexible Options for Every Application
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Public Instance
Private Instance
Hypervisor
Server Hardware
Instance/VM
Dedicated Server
Virtualized Physical
Bare Metal Server
• General purpose web applications
• Development/ test • Variable/ transient
workloads
• Uses similar to public instances
• Plus compliance or performance needs
• High performance computing
• I/O intensive data processing
• Constant/ stable workloads
• Dedicated server virtualization
• Database servers
Full Featured Service Helps You Create Your Cloud
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Deployment Public Private Bare Metal Dedicated
Single Tenant Servers
Virtual via Hypervisor Optional
Hourly Billing
Monthly Billing
Provisioning Time Minutes Minutes Minutes 2-4 Hours
Choose the Add-on Options and Features You Need, Including: • Software: OS, database, virtualization, control panel, utility • Network: bandwidth, port speed, IP addresses, load balancing, VPN access, content delivery • Monitoring: hardware and OS monitoring, system health monitoring, application monitoring • Security: Intrusion detection systems, firewalls, anti-virus and anti-spyware protection, SSL certificates • Storage: Backup, replication, snapshots, object-based storage • Other Options: Email delivery service, digital transcoding
© 2012 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property. 10
Cloud Computing 101 and NIST
NIST Definition of Cloud Computing
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•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. This cloud model promotes availability and is composed of five essential characteristics, three service models, and four deployment models.
•Note 1: Cloud computing is still an evolving paradigm. Its definitions, use cases, underlying technologies, issues, risks, and benefits will be refined in a spirited debate by the public and private sectors. These definitions, attributes, and characteristics will evolve and change over time.
•Note 2: The cloud computing industry represents a large ecosystem of many models, vendors, and market niches. This definition attempts to encompass all of the various cloud approaches
Source: National Institute of Standards and Technology (NIST).
© 2011 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are the property of their respective owners.
“…a model for enabling ubiquitous, convenient, on-demand network access to a shared pool of configurable computing resources that can be rapidly provisioned and released with minimal management effort or service provider interaction.”
- National Institutes of Standards and Technology
What is “Cloud Computing”?
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5 Essential Characteristics
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On Demand Self Service
Broad Network Access
Resource Pooling
Rapid Elasticity
Measured Service
Cloud Computing Service Models
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Cloud Computing Deployment Models
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PaaS IaaS SaaS
Hybrid Public
VPN
IaaS
Virtual Private Cloud
Private
IaaS
© 2011 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are the property of their respective owners.
Cloud Computing Value Propositions
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Top 3 Cloud Computing Value Propositions
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Private Cloud
1. All about control
1. Costs
2. Deployment Strategy (Roadmap)
3. Timeline
4. Many more….
2. Less security concerns – everything “inside” the firewall
3. Does not need a constant and reliable connection to the Internet
Top 3 Cloud Computing Value Propositions
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Public Cloud
1. Much more control:
1. Over costs
2. Roadmap
3. Timeline
1. No need to build, just buy service(s). Can lead to leaner and agile SDLC.
2. Financial model shift – to Op Ex. from Cap Ex.
3. Scale capacity linearly as business grows.
Cloud Computing Value Propositions
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Hybrid Cloud
1. Mix and Match Computing Services, as applicable
2. Leverage existing assets and infrastructure.
3. Good balance between control and trying a new paradigm
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© 2011 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are the property of their respective owners.
Cloud Computing Use Cases
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Cloud Computing Use Cases Matrix
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Use Case Segment Public Private Hybrid
1 Seasonal Capacity Enterprise IaaS, PaaS IaaS, PaaS IaaS, PaaS
2 Financial Model (Opex. Vs. CapEx)
Enterprise IaaS, PaaS, SaaS IaaS, PaaS, SaaS
IaaS, PaaS, SaaS
3 Non-Core Competency Enterprise IaaS, PaaS, SaaS IaaS, PaaS, SaaS
IaaS, PaaS, SaaS
4 Outsourcing Enterprise IaaS, PaaS, SaaS IaaS, PaaS, SaaS
IaaS, PaaS, SaaS
5 Short Life Cycle Projects Enterprise IaaS, PaaS IaaS, PaaS IaaS, PaaS
6 Disaster Readiness Enterprise IaaS, PaaS IaaS, PaaS IaaS, PaaS
7 Massively Scalable Computing Enterprise IaaS, PaaS IaaS, PaaS IaaS, PaaS
8 Infrastructure Consolidation Enterprise IaaS, PaaS, SaaS IaaS, PaaS, SaaS
IaaS, PaaS, SaaS
9 Universal Access Consumer Pictures, Videos, other media
N/A N/A
10 Data Center Real Estate/Capacity Management
Enterprise IaaS, PaaS IaaS, PaaS IaaS, PaaS
Cross-Referenced by Segment, Delivery Model
Cloud Computing Value Drivers Why go Cloud ?
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Cloud Computing Use Cases Value Drivers
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Use Case Top 3 Business and Technology Drivers
1 Seasonal Capacity Capacity Gap and Duration
Application and Infrastructure Architecture
Total Cost
2 Financial Model Cash Flow Cost of Borrowing Total Cost
3 Non-Core Competency Organizational Direction Existing On-Premise Investment Application Portfolio
4 Outsourcing Organizational Direction Application Architecture Total Cost
5 Short Life Cycle Projects Capacity Gap and Duration
Application Architecture and Integration Cost
Total Cost
6 Disaster Readiness Degree of Business Continuity Desired
Recovery Time Objectives (RPO/RTO)
Total Cost
7 Massively Scalable Computing
Capacity Gap and Usage Pattern (s)
Application and Infrastructure Architecture
Total Cost
8 Infrastructure Consolidation
Existing Footprint Economies of Shared Infrastructure Total Cost
9 Universal Access Number of Devices Application Portability Total Cost
10 Data Center Real Estate/Capacity Management
Existing Footprint Organizational Direction Relates to #3 and #4
Calculating Cloud Total Cost of Ownership (TCO)
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Total Cost of Ownership – Page I
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For a Business evaluating a move to Cloud
Cost Item Category On Premise (Private Cloud)
Public Cloud Hybrid Cloud
1 Server Hardware Infrastructure Y Usage Based **
2 Storage Hardware Infrastructure Y Usage Based **
3 Security Hardware Infrastructure Y Usage Based **
4 Security Software Licensing Software Y Usage Based **
5 Security Software Maintenance Software Y Usage Based **
6 Networking Hardware Infrastructure Y Usage Based **
7 Networking Software Infrastructure Y Usage Based **
8 Datacenter Facility Facility Y Usage Based **
9 Utilities and Power Facility Y Usage Based **
10 Data Transfer Infrastructure N Y** **
11 Server Software Licensing Infrastructure Y ** **
12 Server Software Maintenance Software Y ** **
13 Dev Platform Licensing Software Y* Y * **
14 Dev Platform Maintenance Software Y* Y* **
*Open Source Products typically do not carry licensing costs ** Depends on Configuration
Total Cost of Ownership – Page II
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Cost Item Category On Premise (Private Cloud)
Public Cloud Hybrid Cloud
15 Applications Licensing Software Y Usage Based ** **
16 Applications Maintenance Software Y Usage Based ** **
17 Data Center Staff People Y N **
18 Server Administration People Y N **
19 Network Administration People Y N** **
20 Security Administration People Y N** **
21 Storage Administration People Y N** **
22 Platform (Database, Middleware Administration)
People Y Y Y
23 Application Developer(s) – several technologies
People Y Y Y
24 Project Management People Y Y Y
25 Architecture - Infrastructure People Y N* **
26 Architecture - Technology People Y N* **
For a Business evaluating a move to Cloud
*Open Source Products typically do not carry licensing costs ** Depends on Configuration
Total Cost of Ownership – Page III
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Cost Item Category On Premise (Private Cloud)
Public Cloud Hybrid Cloud
27 Architecture - Application People Y Y **
28 Architecture Integration and Middleware
People Y Y **
29 Architecture – Cloud People Y Y Y
30 Architecture - Enterprise People Y Y **
31 Operations (IT, Business etc.) People Y Y** **
32 Cloud Integration People/Software N N** Y
33 Testing Software (Licensing) Software Y Usage Based** **
34 Testing Software (Maintenance)
Software Y Usage Based** **
35 Testing Life Cycle (Project) People Y Y **
36 Business Process Engineers/Analysis
People Y Y Y
For a Business evaluating a move to Cloud
*Open Source Products typically do not carry licensing costs ** Depends on Configuration
Key Takeaways
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1. Cloud Computing Use Cases are driven by a combination of business and technology considerations
2. Total Cost of Ownership has several inputs
3. A Cloud Computing Business Case needs to include several inputs, including cost, business direction and key value drivers in helping decide a complex decision.
Contact Information
30
www.linkedin.com/in/ronbatra
@ronbatra
rb9360@att.com
+15129348659
SAVE THE DATE!
COLLABORATE 13
April 7-11, 2013
Colorado Convention Center
Denver, Colorado
http://collaborate13.ioug.org
AT&T Cloud Architect
© 2012 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are the property of their respective owners. This document is not an offer, commitment, representation or warranty by AT&T and is subject to change.
Thank You
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