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Only
public cloud
    is ...
Basics ...
Ubiquity



                                    Commodity

                  Product



                            Custom built
           Innovation
                                       Certainty
Ubiquity

                                      Utility

                                    Commodity

                  Product
                                     Services



                            Custom built
           Innovation
                                       Certainty
Ubiquity
           Demand
           (user
           competition)

                                       io n
                                  at
                             it is
                          o d
                      m m
                 Co
                                                     Improvement
                                              (supply competition)


                                                     Certainty
Ubiquity


           Widespread
            (Demand)      Utility Services


                        Feature Complete
                         (Improvement)




                                Certainty
Ubiquity
                     Utility Services



                     Barriers
           Product




                          Certainty
Attitude




Concept                 Technology




          Suitability
Ubiquity




           Certainty
Ubiquity

           Cost of Doing
             Business




              Certainty
Ubiquity

                  Cost of Doing
                    Business




           Competitive
            Advantage


                         Certainty
Ubiquity



           Standardised
             Service!

                          Marketplace




                              Certainty
Ubiquity
                     Utility Services

           Factors




                          Certainty
Ubiquity




           Disruption
           Relationships
           Skills
           Political Capital
           Investment

                               Certainty
Transition
Ubiquity
           Confusion
           Governance
           Trust
           Security
           Transparency




                          Certainty
Ubiquity




           Outsourcing
           Suitability
           Competition
           Lock-in
           Second Source
           Control

           Certainty
Ubiquity
                     Utility Services

           Factors

                     RISKS vs
                     BENEFITS




                          Certainty
Economies of scale                     Utility Services
Ubiquity
                                                  of the National
           (volume operations)
                                                         Grid

           Focus on core
           (outsource)
           Pay per use
                           Early Products,
           (utility)       Hippolyte Pixii,
                                1830s
           Agility                            Infrast.
                                                          Prev. Time   Cloud Time
                                                            (mins)        (mins)
           (Self Service)
                                               New
                                              server       72,000          3


                                              64 node
                                                           130,000         5
                                              cluster


                                                             Certainty
Ubiquity




                                                    +Innovation
                                            tion
                                          uc n
                                      str      io
                                    de isat
                               ti ve ent
                             ea pon
                           cr
                               com
    Joseph A. Schumpeter               Herbert A. Simon
        (1883 - 1950)                    (1916 - 2001)


                                                    Certainty
Importance
Ubiquity
                                         Long tail
                                                                       Opportunity
                           Limit of IT




                                                     Projects




                                     Price Elasticity
                        Price




                                !P




                                               !Q

                                                            Quantity
                                                                          Co-Evolution


                                                                             Certainty
“Jevons Paradox”

              Technological progress that increases the
               efficiency with which a resource is used,
              tends to increase the rate of consumption
                           of that resource.


            consumption



efficiency
I didn't




           we all know
             this ...
Only
public cloud
    is ...
"Data Centre"   "Cloud"
"Data Centre"            "Cloud"

  Legacy                  Public

      Virtual Data
                     Private
         Centre
Commodity
"Data Centre"                        "Cloud"

  Legacy                              Public

      Virtual Data
                                 Private
         Centre
"Cloud"




Marketplace
"Cloud"
              Outsourcing
              Competition
              Lock-in
              Second Source
              Control


Marketplace
"Cloud"                       Multiple Providers
                              Access code /
              Outsourcing     data
              Competition     Semantic
              Lock-in         Interoperability
              Second Source   Easy Switching
              Control         Price vs QoS

                              Open Source
Marketplace
                              reference models
"Cloud"




 Hybrid
"Cloud"

          Transition
          Governance
          Trust
          Security
          Transparency


 Hybrid
"Cloud"
                         Single Provider
          Transition     Access code /
                         data
          Governance
          Trust          Semantic
          Security       Interoperability
          Transparency   Easy Switching

                         Common
 Hybrid
                         reference models
Volume Operations /
                         Commodity
"Data Centre"                              "Cloud"

  Legacy
                                           Market
      Virtual Data
         Centre                       Public

                                 Private       Hybrid
To the cloud ...
Legacy?
Ubiquity




                        Infrastructure
             Scale-Up
           N+1 models



                                         Certainty
Ubiquity




                           Infrastructure


                Scale-Up
             N+1 models




           Scale-Out


                                            Certainty
Ubiquity

                       "Legacy"
                     Architectures              Infrastructure
                                     Scale-Up
                                  N+1 models




             "Cloud"        Scale-Out
           Architectures

                 Design for Failure




                                                                 Certainty
Need better
 hardware
Design for
  failure
Cloud
       +
Resilient VMs
Kerching ...
Volume Operations /
                         Commodity
"Data Centre"                              "Cloud"

  Legacy
                                           Market
      Virtual Data
         Centre                       Public

                                 Private       Hybrid
             Enterprise
               Cloud
Differential
                 x 20,000
Time to deploy




                                                       x 15
       1                                   Price per year
Differential
                 x 20,000
Time to deploy




                                         Legacy Data Centre




                              Enterprise /
                                  VDC
                   Public /
                   Private
                                                              x 15
       1                                         Price per year
x 20,000




                   Efficiency
                           x 15
1              Price per year
x 20,000

                           consumption



               efficiency




                           Efficiency
                                    x 15
1                    Price per year
x 20,000

                           consumption



               efficiency




                           Efficiency
                                    x 15
1                    Price per year
1
             Correlation : Speed vs Business Value
                                               x 20,000




Price per year
                 x 15
Correlation : Speed vs Business Value
                                        x 20,000




                                                   Do more, faster




                                                                     Efficiency
                                                                            x 15
                      1                                         Price per year
x 20,000
Time to deploy




                            $740        $1500+
                                                             x 15
       1                           2x            Price per year
x 20,000
Time to deploy




                  $300             $1500+
                                                        x 15
       1                    3-5x            Price per year
Ubiquity




                                                    +Innovation
                                            tion
                                          uc n
                                      str      io
                                    de isat
                               ti ve ent
                             ea pon
                           cr
                               com
    Joseph A. Schumpeter               Herbert A. Simon
        (1883 - 1950)                    (1916 - 2001)


                                                    Certainty
Correlation : Speed vs Business Value
                                        x 20,000




                                         Do much
                                         more, faster     Do more, faster
                                                                         x 15
                      1                            3-5x      Price per year
Ooops,
bugger.
Muhahaha
Volume Operations /
                         Commodity
"Data Centre"                              "Cloud"

  Legacy
                                           Market
      Virtual Data
         Centre                       Public

                                 Private       Hybrid
             Enterprise
               Cloud
Cost of money (4%)     $1.2M

                        Software (1%):   $0.3M
People (5%)

        $220-540
              $1.5M



Building (10%)

         per VM
    $3.0M
                                 Hardware (40%)
                                     $12.2M
Network (15%)

        per year
     $4.6M


                 Power (25%)
                      $7.6M
Cost of money (4%)     $1.2M

                        Software (1%):   $0.3M
People (5%)   $1.5M



Building (10%)
    $3.0M
                                 Hardware (40%)
                                     $12.2M
Network (15%)
     $4.6M


                 Power (25%)
                      $7.6M
Software (1%):
$2.80 per year


   Hardware (40%)
    $122 per year
x 20,000
                        Disruption
                        Relationships
                        Skills
                        Political Capital
                        Investment
Speed




                     Enterprise
                       Cloud
                                                        x 15
  1                Efficiency                Price per year
Public utility
markets are the
   future ...
Hybrid
environments are a
     transition
    strategy ...
Enterprise clouds
   are niche.
Pay me more
and I'll tell you
the future looks
    different.
No jargon
Kerching ...
Really?




          Resistance is
            futile ...
Lightning Talks
   Unpanel
Unconference
 Beer & Pizza
  Go Home.
Stan Hutten Czapski: 'The stacks of IT are
                 falling'
Stan Hutten Czapski: 'The stacks of IT are
                  falling'
Matthew Fowler: 'Have SQL & NoSQL stopped
          yelling at each other?'
Stan Hutten Czapski: 'The stacks of IT are
                  falling'
Matthew Fowler: 'Have SQL & NoSQL stopped
          yelling at each other?'
 Owen Garrett: 'A Tour of Load Balancing in
                the Cloud'
Stan Hutten Czapski: 'The stacks of IT are
                  falling'
Matthew Fowler: 'Have SQL & NoSQL stopped
          yelling at each other?'
 Owen Garrett: 'A Tour of Load Balancing in
                the Cloud'
          Alex Bligh: 'Cloud Billing'
Stan Hutten Czapski: 'The stacks of IT are
                  falling'
Matthew Fowler: 'Have SQL & NoSQL stopped
          yelling at each other?'
 Owen Garrett: 'A Tour of Load Balancing in
                the Cloud'
          Alex Bligh: 'Cloud Billing'
    Stephen Godwin: 'OSGi in the Cloud'
Stan Hutten Czapski: 'The stacks of IT are
                  falling'
Matthew Fowler: 'Have SQL & NoSQL stopped
          yelling at each other?'
 Owen Garrett: 'A Tour of Load Balancing in
                the Cloud'
          Alex Bligh: 'Cloud Billing'
    Stephen Godwin: 'OSGi in the Cloud'
Joe Baguley:'How the public cloud is exciting
           CEOs & scaring CIOs'
@swardley



Leading Edge Forum

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Cloud Camp Mar 2011

  • 1.
  • 4. Ubiquity Commodity Product Custom built Innovation Certainty
  • 5. Ubiquity Utility Commodity Product Services Custom built Innovation Certainty
  • 6. Ubiquity Demand (user competition) io n at it is o d m m Co Improvement (supply competition) Certainty
  • 7. Ubiquity Widespread (Demand) Utility Services Feature Complete (Improvement) Certainty
  • 8. Ubiquity Utility Services Barriers Product Certainty
  • 9. Attitude Concept Technology Suitability
  • 10.
  • 11. Ubiquity Certainty
  • 12. Ubiquity Cost of Doing Business Certainty
  • 13. Ubiquity Cost of Doing Business Competitive Advantage Certainty
  • 14. Ubiquity Standardised Service! Marketplace Certainty
  • 15. Ubiquity Utility Services Factors Certainty
  • 16. Ubiquity Disruption Relationships Skills Political Capital Investment Certainty
  • 17. Transition Ubiquity Confusion Governance Trust Security Transparency Certainty
  • 18. Ubiquity Outsourcing Suitability Competition Lock-in Second Source Control Certainty
  • 19. Ubiquity Utility Services Factors RISKS vs BENEFITS Certainty
  • 20. Economies of scale Utility Services Ubiquity of the National (volume operations) Grid Focus on core (outsource) Pay per use Early Products, (utility) Hippolyte Pixii, 1830s Agility Infrast. Prev. Time Cloud Time (mins) (mins) (Self Service) New server 72,000 3 64 node 130,000 5 cluster Certainty
  • 21. Ubiquity +Innovation tion uc n str io de isat ti ve ent ea pon cr com Joseph A. Schumpeter Herbert A. Simon (1883 - 1950) (1916 - 2001) Certainty
  • 22. Importance Ubiquity Long tail Opportunity Limit of IT Projects Price Elasticity Price !P !Q Quantity Co-Evolution Certainty
  • 23. “Jevons Paradox” Technological progress that increases the efficiency with which a resource is used, tends to increase the rate of consumption of that resource. consumption efficiency
  • 24. I didn't we all know this ...
  • 26. "Data Centre" "Cloud"
  • 27. "Data Centre" "Cloud" Legacy Public Virtual Data Private Centre
  • 28. Commodity "Data Centre" "Cloud" Legacy Public Virtual Data Private Centre
  • 30. "Cloud" Outsourcing Competition Lock-in Second Source Control Marketplace
  • 31. "Cloud" Multiple Providers Access code / Outsourcing data Competition Semantic Lock-in Interoperability Second Source Easy Switching Control Price vs QoS Open Source Marketplace reference models
  • 33. "Cloud" Transition Governance Trust Security Transparency Hybrid
  • 34. "Cloud" Single Provider Transition Access code / data Governance Trust Semantic Security Interoperability Transparency Easy Switching Common Hybrid reference models
  • 35. Volume Operations / Commodity "Data Centre" "Cloud" Legacy Market Virtual Data Centre Public Private Hybrid
  • 38. Ubiquity Infrastructure Scale-Up N+1 models Certainty
  • 39. Ubiquity Infrastructure Scale-Up N+1 models Scale-Out Certainty
  • 40. Ubiquity "Legacy" Architectures Infrastructure Scale-Up N+1 models "Cloud" Scale-Out Architectures Design for Failure Certainty
  • 42. Design for failure
  • 43. Cloud + Resilient VMs
  • 45. Volume Operations / Commodity "Data Centre" "Cloud" Legacy Market Virtual Data Centre Public Private Hybrid Enterprise Cloud
  • 46. Differential x 20,000 Time to deploy x 15 1 Price per year
  • 47. Differential x 20,000 Time to deploy Legacy Data Centre Enterprise / VDC Public / Private x 15 1 Price per year
  • 48. x 20,000 Efficiency x 15 1 Price per year
  • 49. x 20,000 consumption efficiency Efficiency x 15 1 Price per year
  • 50. x 20,000 consumption efficiency Efficiency x 15 1 Price per year
  • 51. 1 Correlation : Speed vs Business Value x 20,000 Price per year x 15
  • 52. Correlation : Speed vs Business Value x 20,000 Do more, faster Efficiency x 15 1 Price per year
  • 53. x 20,000 Time to deploy $740 $1500+ x 15 1 2x Price per year
  • 54. x 20,000 Time to deploy $300 $1500+ x 15 1 3-5x Price per year
  • 55. Ubiquity +Innovation tion uc n str io de isat ti ve ent ea pon cr com Joseph A. Schumpeter Herbert A. Simon (1883 - 1950) (1916 - 2001) Certainty
  • 56. Correlation : Speed vs Business Value x 20,000 Do much more, faster Do more, faster x 15 1 3-5x Price per year
  • 58.
  • 59.
  • 61. Volume Operations / Commodity "Data Centre" "Cloud" Legacy Market Virtual Data Centre Public Private Hybrid Enterprise Cloud
  • 62. Cost of money (4%) $1.2M Software (1%): $0.3M People (5%) $220-540 $1.5M Building (10%) per VM $3.0M Hardware (40%) $12.2M Network (15%) per year $4.6M Power (25%) $7.6M
  • 63. Cost of money (4%) $1.2M Software (1%): $0.3M People (5%) $1.5M Building (10%) $3.0M Hardware (40%) $12.2M Network (15%) $4.6M Power (25%) $7.6M
  • 64. Software (1%): $2.80 per year Hardware (40%) $122 per year
  • 65. x 20,000 Disruption Relationships Skills Political Capital Investment Speed Enterprise Cloud x 15 1 Efficiency Price per year
  • 66. Public utility markets are the future ...
  • 67. Hybrid environments are a transition strategy ...
  • 68. Enterprise clouds are niche.
  • 69. Pay me more and I'll tell you the future looks different.
  • 70.
  • 73.
  • 74. Really? Resistance is futile ...
  • 75.
  • 76. Lightning Talks Unpanel Unconference Beer & Pizza Go Home.
  • 77.
  • 78. Stan Hutten Czapski: 'The stacks of IT are falling'
  • 79. Stan Hutten Czapski: 'The stacks of IT are falling' Matthew Fowler: 'Have SQL & NoSQL stopped yelling at each other?'
  • 80. Stan Hutten Czapski: 'The stacks of IT are falling' Matthew Fowler: 'Have SQL & NoSQL stopped yelling at each other?' Owen Garrett: 'A Tour of Load Balancing in the Cloud'
  • 81. Stan Hutten Czapski: 'The stacks of IT are falling' Matthew Fowler: 'Have SQL & NoSQL stopped yelling at each other?' Owen Garrett: 'A Tour of Load Balancing in the Cloud' Alex Bligh: 'Cloud Billing'
  • 82. Stan Hutten Czapski: 'The stacks of IT are falling' Matthew Fowler: 'Have SQL & NoSQL stopped yelling at each other?' Owen Garrett: 'A Tour of Load Balancing in the Cloud' Alex Bligh: 'Cloud Billing' Stephen Godwin: 'OSGi in the Cloud'
  • 83. Stan Hutten Czapski: 'The stacks of IT are falling' Matthew Fowler: 'Have SQL & NoSQL stopped yelling at each other?' Owen Garrett: 'A Tour of Load Balancing in the Cloud' Alex Bligh: 'Cloud Billing' Stephen Godwin: 'OSGi in the Cloud' Joe Baguley:'How the public cloud is exciting CEOs & scaring CIOs'