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Marketspace Envisioning The Cloud
1.
Envisioning the Cloud:
The Next Computing Paradigm and its Implications for Technology Policy Google DC Talks The Newseum 555 Pennsylvania Avenue Washington, DC Jeffrey F. Rayport & Andrew Heyward Marketspace LLC A Monitor Group Company March 20, 2009 2008 Marketspace® LLC, Monitor Group Company – CONFIDENTIAL NOT FOR DISTRIBUTION ® ©© 2009 marketspaceLLC, A a monitor group company— CONFIDENTIAL:— NOT FOR DISTRIBUTION
2.
Overview
Understanding the Cloud Benefits of the Cloud Enabling the Cloud Government and the Cloud Concluding Thoughts Every dozen or so years, a revolution changes the way we use computers. Huge mainframes in the 1960s, minicomputers in the 1970s, personal computers in the 1980s, cell phones and smartphones in the last decade, and now the emergence of cloud computing. © 2008 Marketspace® LLC, A Monitor Group Company — CONFIDENTIAL — NOT FOR DISTRIBUTION www.marketspaceglobal.com 2
3.
Seeding the Cloud
Processing Power Storage Connection Speed Gordon E. Moore Mark Kryder Andy Grove © 2009 Marketspace® LLC, A Monitor Group Company — CONFIDENTIAL — NOT FOR DISTRIBUTION www.marketspaceglobal.com 3
4.
Defining the Cloud
Cloud computing represents a new way to deploy computing technology to give users the ability to access, work on, share, and store information using the Internet. The cloud itself is a network of data centers – each composed of many thousands of computers working together – that can perform the functions of software on a personal or business computer by providing users access to powerful applications, platforms, and services delivered over the Internet. Online Music Photo Sharing Social Networks Online Video Web-mail Smartphones © 2009 Marketspace® LLC, A Monitor Group Company — CONFIDENTIAL — NOT FOR DISTRIBUTION www.marketspaceglobal.com 4
5.
Layers of the
Cloud © 2009 Marketspace® LLC, A Monitor Group Company — CONFIDENTIAL — NOT FOR DISTRIBUTION www.marketspaceglobal.com 5
6.
Benefits of the
Cloud Anytime Founded in 1999 declaring the ―end of software‖ Anywhere Access Offered cloud-based version of CRM software Became first cloud-based service to generate $1 billion in sales Specialization & Sells ―on demand‖ contract and proposal management systems Customization Built a prototype in a ―couple of weekends‖ using Salesforce‘s Force.com platform – company profitable within nine months Focused on customer needs, not development or infrastructure © 2009 Marketspace® LLC, A Monitor Group Company — CONFIDENTIAL — NOT FOR DISTRIBUTION www.marketspaceglobal.com 6
7.
Benefits of the
Cloud Held InnovationJam in 2006; world‘s largest online brainstorm, Collaboration designed to share IBM‘s advanced research and technologies Included over 150,000 participants from 104 countries From concepts developed during sessions, IBM launched 10 new businesses with investments totaling $100 million Storage as Universal Digitized 150 years of archives, which comprised 11 million articles Service representing 1.5 terabytes of memory Utilized Amazon‘s Simple Storage Service (S3) to digitize complete archival content page by page in under 36 hours © 2009 Marketspace® LLC, A Monitor Group Company — CONFIDENTIAL — NOT FOR DISTRIBUTION www.marketspaceglobal.com 7
8.
Benefits of the
Cloud Processing Provides web-based software for creating presentations using Power on photos and music uploaded to the web Demand Increased traffic to 750,000 from 5,000 a day after a successful Facebook marketing campaign Added capacity on Amazon Web Services infrastructure at a cost of 10 cents per server hour plus related expenses Cost Savings Utilized Google Apps to provide Office-type productivity software for its workforce of over 16,000 people Achieved estimated savings of $80 million by not building its own data center or hiring more engineers to manage it © 2009 Marketspace® LLC, A Monitor Group Company — CONFIDENTIAL — NOT FOR DISTRIBUTION www.marketspaceglobal.com 8
9.
Enabling the Cloud
Universal Connectivity Open Access ―The point is that no one should ―There will be 499 million in-home be denied access to [online consumer broadband connections resources] because of who they worldwide by 2012 – an are…. So this is a fairness issue extraordinary number, but it more than anything else.‖ represents only 25% of the world‘s households.‖ - Vint Cerf, Chief Internet - Gartner Group Evangelist, Google In 2007, the United States ranked15th in the This raises complex issues that emerged in the debate over ―net neutrality,‖ and world in broadband penetration and 13th in overall Internet connectivity powerful commercial interests are at stake If the United States falls short in universal Any barriers that restrict access to the access, cloud benefits will fall short, too Internet limit the potential of the cloud © 2009 Marketspace® LLC, A Monitor Group Company — CONFIDENTIAL — NOT FOR DISTRIBUTION www.marketspaceglobal.com 9
10.
Enabling the Cloud
Reliability Interoperability and User Choice ―It is not just about being ‗always ―If a customer doesn‘t like our on‘; it is this idea of reliability. If service, they can cancel.‖ this is reliable, that‘s a big thing. If it isn‘t, then what do we turn to?‖ - Polly Sumner, President, Platform, Alliances, and Services, Salesforce.com - Kevin Kelly, Founder, Executive Editor, Wired Magazine As of now the major players operate Even best-known providers of cloud services fail from time to time – stiffening proprietary cloud infrastructures, with varying degrees of open standards resistance of IT departments If large providers move to dominate with Service that comes close to 100 percent proprietary clouds, it will be difficult to reliability is a prerequisite for widespread realize the full potential of cloud computing adoption of cloud computing © 2009 Marketspace® LLC, A Monitor Group Company — CONFIDENTIAL — NOT FOR DISTRIBUTION www.marketspaceglobal.com 10
11.
Enabling the Cloud
Security Privacy ―If we give this data to a cloud computing company, and there is ―The best medicine is a security breach or if that accountability and transparency.‖ company gets sold, how do we address that? I am accountable.‖ - Dan Burton, Senior Vice President of Global Public - Carolyn Lawson, Chief Policy, Salesforce.com Information Officer, California Public Utilities Commission Notion of making a third party responsible In the United States, the law treats personal information differently once it‘s handed for keeping data safe continues to provoke debates in corporate IT departments over to a third party Cloud providers must demonstrate that Cloud providers must protect user data data is safer than in current systems from unauthorized government access and ensure integrity of commercial use © 2009 Marketspace® LLC, A Monitor Group Company — CONFIDENTIAL — NOT FOR DISTRIBUTION www.marketspaceglobal.com 11
12.
Enabling the Cloud
Economic Value Sustainability ―The classic challenge of addressing a new market is to do it at a lower cost, make things In 2006, data centers consumed available where they could not 1.5% of all electricity used in the previously be delivered, or United States. remove complexity. The cloud can address all three of those.‖ - Environmental Protection Agency - Russ Daniels, VP and CTO of Cloud Services Strategy, HP The cloud is creating new business EPA estimates that by 2011, consolidating opportunities and new markets by offering computing into data centers could reduce high-end computing at lower cost carbon dioxide emissions by 47M metric tons The real test will be for the cloud to reduce As enterprises come under increasing pressure to go ―green,‖ sustainability is costs, increase productivity, and enable faster innovation at the enterprise level critical to the viability of cloud computing © 2009 Marketspace® LLC, A Monitor Group Company — CONFIDENTIAL — NOT FOR DISTRIBUTION www.marketspaceglobal.com 12
13.
Government and the
Cloud Who Decides? Policy Market Cybercrime Enforcement Institutional Adoption Universal Connectivity Sustainability Privacy Security Interoperability Reliability Economic Value © 2009 Marketspace® LLC, A Monitor Group Company — CONFIDENTIAL — NOT FOR DISTRIBUTION www.marketspaceglobal.com 13
14.
Cloud Ecosystem
Data Centers Device Manufacturers Media Companies ISPs © 2009 Marketspace® LLC, A Monitor Group Company — CONFIDENTIAL — NOT FOR DISTRIBUTION www.marketspaceglobal.com 14
15.
Living with the
Cloud Netbooks Retail Touchpoints Set-top Boxes Medical Devices Music Players Electronic Readers Home Automation Consumer Appliances Transportation Vehicles Video Game Systems © 2009 Marketspace® LLC, A Monitor Group Company — CONFIDENTIAL — NOT FOR DISTRIBUTION www.marketspaceglobal.com 15
16.
The cloud is
a reality for consumers and will become the ―new normal‖ in corporations and organizations The cloud is one avenue for the United States to re-assert economic and technology leadership on a global stage What government can do best is clear the road for the cloud‘s expansion, not pave it © 2009 Marketspace® LLC, A Monitor Group Company — CONFIDENTIAL — NOT FOR DISTRIBUTION www.marketspaceglobal.com 16
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