Cloud Computing

The next big trend

unleashed
STSD Biznetics Presentation
Sundara Nagarajan (sn-stsd@hp.com)
January 30, 2009

2006 Hewlett-Packard Development Company, L.P.

The information contained herein is subject to change without notice

Agenda
There

is a lot of buzz about cloud computing

and everything-as-a-service these days:
provide a brief taxonomy and overview of
the business models
How is this trend impacting our customers
and our business?
What is HP doing in cloud computing?
What is TSG, ESS doing?
Where is ESS-STSD involved?
How can I learn more; and, in the case of a
few, how can I contribute?

Computing may someday be

organized as a public utility, just as
the telephone system is organized as
a public utility.
(John McCarthy, 1961)

Gartner predicts that by 2012, 80 percent

of Fortune 1000 enterprises will be paying
for some cloud computing services, and 30
percent will be paying for cloud computing
infrastructure services.

Sam Johnstons Taxonomy

Relies on cloud for the delivery
Support creating customer value
Customer value
Facilitates deployment of apps
Data as a service

Virtualized systems to execute everything a

Source: http://samj.net/2008/09/taxonomy-6-layer-cloud-computing-stack.h

Cloud computing taxonomy

Cloud
Services

Applications in the cloud (e.g., gmail, del.icio.us,

salesforce.com); turn-key end-user application software,
usually browser-based, with a specific functional focus;
could combine with other similar services
Service composition & management

Cloud
Platforms
Cloud
Computing

Platforms in the cloud (e.g., Google App Engine,

Salesforce.com Apex); Oriented to developers to easily
plug in code written with a few restrictions and guidelines
Service platforms; multi-tenancy; data models

Computing & storage Infrastructure in the cloud (e.g.,

Amazon EC2 and S3); Lower cost per transaction 10x or
more compared to dedicated system; pay-for-use; scaleout architecture; close to bare metal APIs with few
restrictions
Scale-out patterns, management, provisioning

Source: Russ Daniels, Michael Crandells Blog

Attributes & Business models

Self-service

On-demand

SLAs

Elastic

APIs

Very low-cost

Web 2.0

Service-oriented

Pay-as-use Commodity hardware

Four key business models

1.

Advertising (e.g., Google, Rediff.com)

2.

Subscription (e.g., salesforce.com, ABS)

3.

Transaction broker/e-Commerce (e.g., Amazon,

eBay)

4.

Digital-to-physical (e.g., snapfish)

Merrill Lynch estimates that within the next five years, the annual
global market for cloud computing will be USD 95B, with about 12% of
the software market to be on the cloud.

Some HP cloud services examples

A Tale of Two Clouds. Where does HP Fit?

Enterprise/Large SMBs

HPs
Customers

HP

External Service Providers

Primary Customers

Emerging Category

HP has a broad portfolio of industry

leading products, solutions, and
professional services.

Today HP sells hardware (compute,

and storage) optimized for lowest TCO
to leading service providers worldwide.

HPs Strategic Intent:

To have an industry leading

Primary Business
Emerging Category
cloud computing strategy
in all
four
quadrants
HP is a very large
enterprise
company.
Today HP provides external services
HP sells to other enterprise customers
(as well as SMB and consumer customers).
HP Uses its own products to run our business.

Source: Scott McClellan, VP & Chief Technologist, SCI-ESS

over the internet as part of our complete

business portfolio.
Examples:

HP FCS

New Scalable Computing &

Infrastructure Offerings for the cloud
business
HP ProLiant BL2x220c G5
Worlds first 2-in-1 server blade
Performance, density and efficiency for
cloud enabling massive scale-out data
centers

HP StorageWorks ExDS9100
Extreme Data Storage System
Extreme Scalability, Extreme Affordability & Unified
Manageability enabling new business models for
companies needing massive amounts of storage

ITs job is to source services that result in

the right business outcome

Hosted or
Outsourc
ed

Cloud

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Dec 8, 2016

Value Sourced

Internal

Service
portfolio

Value Delivered

IT Organization

Better
business
outcomes
Accelerat
e growth
Lower
costs
Mitigate
risk

What do we mean by cloud?

Service providers

Service users

The cloud is a means by which certain

types of highly scalable and flexible
services can be delivered and consumed
over the internet through an as-needed,
pay-per-use business model

Whats new?
New access:
everything is a
service
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New capabilities:
multi-tenant
software

New connections:
information in
context

An infrastructure utility underpins

both dedicated and as a service
applications Business
Business outcome
outcomes
Technology-enabled service

Traditional applications
Infrastructure Utility

standardized optimized automated

High
Performanc
e

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Dec 8, 2016

Grid

Scale up,
scale out

Mission
Critical

Voice: Venugopal Srinivasmurth

Power of the Services Marketplace

DEMO: INTEGRATING
WEB2.0 SERVICE WITH
TRADITIONAL TELEPHONY
SERVICE

Cloud-based applications are

designed for multi-tenancy
Business outcome
outcomes
Business
Business
outcomes
Technology-enabled services

Traditional
applications

Cloud-based software

Infrastructure Utility

Infrastructure Utility

standardized optimized
automated

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standardized optimized
automated

Few workloads are cloud-ready

today
All workloads

Research focus
Cloudready

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Cloud research test

bed

An infrastructure utility underpins

both dedicated and as a service
applications Business
Business outcome
outcomes
Technology-enabled service

Traditional applications
Infrastructure Utility

standardized optimized automated

High
Performanc
e

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Dec 8, 2016

Grid

Scale up,
scale out

Mission
Critical

An infrastructure utility can be

delivered as a service
Business outcome
outcomes
Business
Technology-enabled services

Externally hosted
Internally hosted

Traditional
applications

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Cloud-based software

Infrastructure as a service

Infrastructure Utility
standardized optimized
automated

Infrastructure Utility
standardized optimized
automated

The cloud (r)evolution: solving

problems that current technology
models cant solve
Service providers
Services and
data break
apart
Multi-tenant
applications

Service users
New connections

New capabilities

Information
relevance

Flexible
consumption

New access
XaaS
Existing apps
and
infrastructure

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Dec 8, 2016

Technology over the internet

Contractbased
consumption

Voice: Badrinath Ramamurth

Infrastructure-as-a-Service

CELLS-AS-A-SERVICE
DEMO

Relevant HP resources
Everything

as a service: HPs perspective on

cloud computing, pointers to what HP is doing
today?
Massive scale out from HP: cloud enabling
computing
Russ Daniels, VP & CTO, HP Cloud Services
Strategy
ESS Scalable Computing & Infrastructure (SCI):
HP Flexible Computing Services: TSG OS offering
HP Cloud Computing Community: HP-internal
community; to join please contact share point site
admin or sn-stsd@hp.com

Long Tail of SMB IT Market

Revenue per Customer

SaaS/CC makes it possible for vendors to address

the long tail of the user community. For small
users, it means access to technology they would
otherwise not have been able to use (e.g., the
Tirupur garment industry community.)
Estimated market size of SMB Long Tail is about
USD 150B WW
Offers higher service levels than what can be
achieved internally; substitutes capex for opex
New Market
Addressable
Market

IT/Software cost per Customer

Lowered IT/Software cost per Customer

Number of Customers
Source: Dataquest India, September 30, 2007

Power of the Shared Services

Platform

ESTABLISHING
MICROSOFT EXCHANGE
SERVICE

Concluding notes
Cloud

{services, platforms, computing} have the

potential to disrupt IT business as we know today

Still

some distance to go

Business model
Stability/availability issues; SLAs
Security concerns
Performance
Support challenges
HP

has many opportunities to innovate and grow

the business taking advantage of this change

BACKUP SLIDES

STSD-HP Labs Collaboration

Automated Infrastructure Lab: Enterprise-grade cloud

computing infrastructure
Infrastructure and service Lifecycle management

Service Automation & Integration Lab: Cloud {services,

platforms}
Creation and operation of shared services platform
Business activities using services: services integration
environment

Exascale Computing Lab: Cloud Computing benchmarks

Benchmarks for web 2.0 like workloads to help selection of
processors and platforms
M-Channel/M-Broker: Management infrastructure for scale-out

Cirrus: Cloud Computing Test-bed

Cloud computing: Architecture

basics
Application workload

workload/data management

Virtual server containers

Commodity hardware

Source: the 451 group

Enabling technologies

Service-oriented architecture, Web services

Data/information management algorithms

Business intelligence, Machine learning

Dramatic improvements in the languages & development

environment

Distributed computing/processing, Grid/scheduling, messaging

Utility model for computing

Virtualization: Machine and Application

Dramatic improvements in performance/price of processor,

storage devices and network bandwidth

Systems management: capacity planning, load balancing,

automatic provisioning, policy-based, event-driven

Cloud computing definitions &

models

Gartner definition:
A style of computing
where massively
scalable IT-related
capabilities are
provided as a
service, using
Internet
technologies to
multiple external
customers, where
the consumers of
the services need
only care about
what services does
for them, not how it
is implemented.

Forrester Research SaaS Maturity

Model

Peter Lairds Taxonomy of Cloud

Computing

Source: http://peterlaird.blogspot.com/2008/09/visual-map-of-cloud-computingsaaspaas.html
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