1. Transcending IT Planetary Boundaries The Future of Cloud?

• Pradeep Gupta

CMD, CyberMedia Group

Udaipur September 17 th , 2010

[email_address]

2. What is the Cloud? 3. Future of Computing Mainframe Client Server Minicomputer Web Disruptor : Virtualization Cloud 1960 1970 1980 1990 2000 4. Lots ofChasm-Bridgingin 2009 the Chasm Earlymarkets Mainstream markets Late market 5. Is it Hype? 6. On Cloud Computing "It's stupidity. It's worse than stupidity: it's a marketing hype campaign. Somebody is saying this is inevitable--and whenever you hear somebody saying that, its very likely to be a set of businesses campaigning to make it true. - Richard Stallman, Father of the Free Software Movement 7. The interesting thing about cloud computing is that weve redefined cloud computing to include everything that we already do... The computer industry is the only industry that is more fashion-driven than womens fashion. .. Its complete gibberish. Its insane. When is this idiocy going to stop? - Larry Ellison, CEO Oracle, Sep 2008 8. The Cloud = 10X Improvements

Ease of Use

Scalability

Risk

Reliability

Cost

9. Benefits of Cloud Computing Source: IBSG, 2009 Source: IBSG 2009 BENEFIT COMMENT Cost Savings Organizations can reduce or eliminate IT capital expenditures and reduce ongoing operating expenditures by paying only for the services they use and, potentially, by reducing the size of their IT staffs. Ease of Implementation Without the need to purchase hardware, software licenses, or implementation services, an organization can implement cloud computing rapidly. Flexibility Cloud computing offers more flexibility (often called elasticity) in matching IT resources to business functions than past computing methods. It can also increase mobility of staff by allowing them to access business information and applications from a wider range of locations and/or devices. Scalability Organizations using cloud computing need not scramble to secure additional hardware and software when user loads increase, but can instead add and subtract capacity as the network load dictates. Access to Top-End IT Capabilities Particularly for smaller organizations, cloud computing can allow access to hardware, software, and IT staff of a caliber far beyond that which they can attract and/or afford for themselves. Redeployment of IT Staff By reducing or doing away with constant server updates and other computing issues, and eliminating expenditures of time and money on application development, organizations may be able to concentrate at least some of their IT staff on higher-value tasks. Focusing on Core Competencies Arguably, the ability to run data centers and to develop and manage software applications is not necessarily a core competency of most organizations. Cloud computing may make it much easier to reduce or shed these functions, allowing organizations to concentrate their efforts on issues central to their business such as (in government) the development of policy and design and delivery of public services. Sustainability The poor energy efficiency of most existing data centers, due to substandard design or inefficient asset utilization, is now understood to be environmentally and economically unsustainable. Cloud service providers, through leveraging economies of scale and their capacity to managing computing assets more efficiently, can consume far less energy and other resources than traditional data center operators. 10. User Attitudes (Scale: 1 = Not at all important5 = Very Important) Q: Rate thebenefitscommonly ascribed to the 'cloud'/on-demand modelSource: IDC Enterprise Panel, 3Q09, n = 263 54.0% 63.9% 64.6% 67.0% 68.5% 75.3% 77.7% 77.9% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Seems like the way of the future Sharing systems with partners simpler Always offers latest functionality Requires less in-house IT staff, costs Encourages standard systems Monthly payments Easy/fast to deploy to end-users Pay only for what you use % rating 3, 4 or 5 11. And the Market is 12.

Gartner

• By 2012 20% of businesses will own no IT Assets

13. Public IT Cloud ServicesForecast Worldwide IT Revenue* by Consumption Model 2009, 2013 ($B) Source: IDC, March 2010 * Includes revenue from delivery of Applications, Application Development & Deployment Software, Systems Infrastructure Software, Server capacity and Disk Storage capacity via both traditional product model and the Cloud Services model; AD&D excludes online B2B messaging providers/exchanges 45 17 2009 2013 Worldwide IT Revenue ($ billion) 359 416 Public IT Cloud Services CAGR 26% 45 17 359 416 5% 10% 0 10 20 30 40 50 60 45 17 14. Public IT Cloud ServicesForecast Worldwide IT Revenue* by Consumption Model 2009, 2013 ($B) Source: IDC, March 2010 * Includes revenue from delivery of Applications, Application Development & Deployment Software, Systems Infrastructure Software, Server capacity and Disk Storage capacity via both traditional product model and the Cloud Services model; AD&D excludes online B2B messaging providers/exchanges 45 17 2009 2013 Worldwide IT Revenue ($ billion) 359 416 Public IT Cloud Services 45 17 0 100 200 300 400 500 600 Traditional IT Products CAGR 26% 4% 359 416 5% 10% 15. Growth Impact> Revenue Impact 497 463 445 450 455 460 465 470 475 480 485 490 495 500 2012 2013 Worldwide IT Revenue ($ billion) 23% 77% Source: IDC, March 2010 Sources of Incremental IT Revenue Growth in 2013 Public Cloud vs. Traditional Net new IT growth = $34 billion Public IT Cloud Services growth Traditional IT Product growth 16. Cloud Computing Market in India CURRENT PENETRATION 2009 MediumLarge Figures in % The public cloud computing market is $ 66.7 mn in 2009 and which expected to grow by CAGR 40% for the next 5 years 17. The Building Blocks 18. Cloud Definitionhttp://www.csrc.nist.gov/groups/SNS/cloud-computing/index.html Private Public Hybrid Deployment Models Service Models Software as a Service (SaaS) Platform as a Service (PaaS) Infrastucture as a Service (IaaS) Essential Characteristics On-DemandSelf Service Broad NetworkAccess Resource Pooling Rapid Elasticity Measured Service 19. Cloud Applications

SaaS resides here

Most common Cloud / Many providers of different services

Examples : SalesForce, Gmail, Yahoo! Mail, Quicken Online

Advantages : Free, Easy, Consumer Adoption

Disadvantages : Limited functionality, no control or access to underlying technology

20. Cloud Platforms

Containers

Closed environments

Examples : Google App Engine, Heroku, Mosso, Engine Yard, Joyent or Force.com (SalesForce Dev Platform)

Advantages : Good for developers, more control than Application Clouds, tightly configured

Disadvantages : Restricted to what is available, other dependencies

21. Cloud Infrastructure

Provide Compute and Storage clouds

Virtualization layers (hardware/software)

Examples : Amazon EC2, GoGrid, Amazon S3, Nirvanix, Linode

Advantages : Full control of environments and infrastructure

Disadvantages : premium price point, limited competition

22. CIO Speak 23. User Challenges Q: Rate thechallenges/issuesof the 'cloud'/on-demand model(Scale: 1 = Not at all concerned5 = Very concerned) Source: IDC Enterprise Panel, 3Q09, n = 263 76.0% 76.8% 79.8% 80.2% 81.0% 82.9% 83.3% 87.5% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Not enough ability to customize Hard to integrate with in-house IT Bringing back in-house may be difficult Lack of interoperability standards On-demand paymt model may cost more Performance Availability Security % rating 3, 4 or 5 24. User Challenges Source: Cisco IBSG 2009 25. Your Queries

Is it for larger enterprises or SMEs?

Poor connectivity in Tier 2/3 towns

I have major investments in IT, what do I do with them?

Will my power get diminished in the organisation?

Can my data and apps be held hostage?

Do I get locked-up to a vendor?

Is my data secure?

Are their legal/ compliance issues?

26. Migration Strategy 27. Traditional Hosting Costs Continue to Grow

High CapEx

Low facility asset utilization (55%)

High Depreciation (42-50%)

Power/Cooling costs > Server Costs

Not Green

30% hardware obsolescence

- Source: Forbes.com, Kenneth Brill, Servers: Why Thrifty Isnt Nifty

Source: Forbes.com, Servers: Why Thrifty Isnt Nifty 28. Hybrid Environments Will Dominate

H y b r i d

Enterprises cloud services portfolio includesbothprivate and public cloud services

Some specific services are delivered through acombinationof public and private models (e.g., private cloud bursting to a public cloud service)

Public

Designed for amarket , not a single enterprise

Open to a largely unrestricted universe of potential users

Private

Designed for, and access restricted to, asingle enterprise(or extended enterprise)

An internal shared resource, not a commercial offering

IT Org is the vendor of the shared/std service to its users

I n t e g r a t e d M g m t appliances hosted/ managed custom-built 29. Breaking the Dam

Colocation 1 ststep to outsourcing

Managed Hosting dedicated servers managed by 3 rdparty take some pain away

Cloud Hosting For newer applications

30. Getting Started

Have a 2-4 year plan

Storage consolidation and outsourcing

Optimize servers using virtualizationand outsourcing

Set-up private cloud and keep critical apps within firewall on private cloud

Use public cloud for support apps

Choose the right partnerremember SLAs: uptime, data ownership, apps ownership/ copyright, separate data centre, data back-up, disaster recovery, compensation for business loss

Securityauthentication, encryption, certification

Get comfortable

31. Transcending IT Planetary Boundaries The Future of Cloud?

Pradeep Gupta

CMD, CyberMedia Group

Udaipur September 17 th , 2010

[email_address]