1 / 0

The economics of cloud Computing

The economics of cloud Computing. Andreas Ebert Regional Technology Officer Western Europe. TODAY’S CHALLENGES. Distributed Workforce. Consumerization of IT. 50. 84. percent of business devices are expected to be smartphones by 2014. percent of organizations have a remote workforce .

cerise
Download Presentation

The economics of cloud Computing

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. The economics ofcloud Computing

    Andreas Ebert Regional Technology Officer Western Europe
  2. TODAY’S CHALLENGES Distributed Workforce Consumerization of IT 50 84 percent of business devices are expected to be smartphones by 2014 percent of organizations have a remote workforce Infrastructure Complexity Infrastructure Utilization 70 85 percent of IT budgets is spent maintaining datacenter operations percent of datacenter capacity is idle on average
  3. … a Generational Shift Business Economic Technology Centralized compute & storage, thin clients High upfront costs for hardware and software Optimized for efficiency due to high cost Perpetual license for OS and application software PCs and servers for distributed compute, storage, etc. Optimized for agility due to low cost Pay as you go, and only for what you use Large DCs, commodity HW, scale-out, devices Order of magnitude better efficiency and agility
  4. Supply Side Economies of Scale DATA CENTER PROJECTS (LAST 12 MO.) Electricity Labor Hardware Source: Company press releases * Estimates based on $15M/MW build out cost
  5. Demand Side Economies of ScaleImproving resource utilization
  6. Demand Side Economies of ScaleTime of Day BING SEARCHES – JAPAN VS. UK Query Volume Source: Microsoft
  7. Demand Side Economies of ScaleIndustry Variability •target.com•walmart.com •toysrus.com•barnesandnoble.com •turbotax.com•taxcut.com •hrblock.com•taxact.com ~10x normal load (Tax season) ~4x normal load (Holiday shopping) Jan 2009 Jan 2010 Jan 2009 Jan 2010 Source: Alexa Source: Alexa
  8. Economics of Multi-Tenancy SINGLE-TENANT APPLICATION Each client has a dedicated instance Instances separately administrated Dedicated resources Costs grow with scale Client Client Client Instance Instance Instance Admins Admins Admins Resources Resources Resources
  9. Economics of Multi-Tenancy MULTI-TENANT APPLICATION One instance for all clients One group of administrators Fixed resources are shared Client Client Client Instance Instance Instance Resources Resources Resources Admins Admins Admins
  10. Microsoft’s Datacenter Evolution (2005-2010) Generation 3 Chicago and Dublin Generation 4 Modular Datacenter Generation 1 Datacenter Co-Location Generation 2 Quincy and San Antonio Facility PAC Deployment Scale Unit Rack Density and Deployment IT PAC Video Server Capacity Containers Scalability and …Sustainability Time to Market Lower TCO
  11. The Classic Model extends to the Cloud On Premise Model Cloud Model Softwareas a Service Application Platform as a Service Dev Platform Infrastructure as a Service Server
  12. IS CLOUD POWER READY FOR Your Infrastructure? IS IT SECURE? HOW WILL WE GAIN PRODUCTIVITY? WHAT ABOUT COMPLIANCE? WILL I STILL HAVE CONTROL? WILL MY APPLICATIONS STILL WORK?
  13. SALESFORCE.COM SALESFORCE.COM IT as a SERVICE PUBLIC PRIVATE ORACLE CUSTOMER SERVICE PROVIDERS GLOBAL PROVIDERS ORACLE
  14. BUT WHAT ABOUT THE HYPE? “Public IT cloud services will grow at over five times the rate of traditional IT products. Worldwide revenue from public IT cloud services exceeded $16 billion in 2009 and is forecast to reach $55.5 billion in 2014, representing a compound annual growth rate of 27.4%. This rapid growth rate is over five times the projected growth for traditional IT products (5%).” IDC, "Worldwide and Regional Public IT Cloud Services 2010-2014 Forecast," Doc.#223549, Jun 2010 “The worldwide market for cloud services was worth $58.6 billion in 2009. By 2014, the market will be worth $148.8 billion.” Over the course of the next five years, enterprises will spend $112 billion cumulatively on software as a service, platform as a service and infrastructure as a service combined.” Daryl Plummer and David Mitchell SmithOctober 2010 Gartner Symposium Presentation, The Cloud Computing Scenario “Although many in IT may not like cloud computing and see it as a threat to their jobs or the overall value of the IT department — get over it. The compelling and differentiated economics and agility cloud services deliver are here to stay. As much as they appear to be a threat, they can be just as powerful an enabler.” Justifying Your Cloud Investment: Test And Development Forrester Research, Inc. August 26, 2010

  15. Aerlingus.comand IPlanitA Case Study

    aerlingus.com
  16. THE BENEFITS REDUCED COSTS FLEXIBILITY AGILITY “We are delighted with ... Windows Azure. We can dynamically scale for success without worrying about the availability of computing resources. “ Ronan Fitzpatrick, Director of Network Distribution Aer Lingus INCREASED OPPORTUNITIES WITH A TRUSTWORTHY SOLUTION COST-EFFECTIVE SCALABILITY IMPROVED SERVICE OFFERINGS FOR CUSTOMERS REDUCED BANDWIDTH EASY TO IMPLEMENT END USERPRODUCTIVITY

  17. Conclusions

  18. Regulatory and Market Environment “Benefits” “Challenges/Issues” Interoperability Security Privacy Compliancy Availability Performance Data Ownership and Access Existing Legislations(ie. grants in EU, Cow in the cloud) ……. Pay only for what you use Easy to deploy Monthly payments Standard systems Low IT staff, costs Latest functionality Green IT It’s the future …..
  19. Microsoft Cloud Computing Continuum Private Public SaaS AppFabric PaaS IaaS | | Dynamic Data Center Toolkit For Hosters Dynamic Infrastructure Toolkit For System Center
  20. Microsoft Cloud Offerings Registration & Search Companies Applications Professional Services Mail Calendar Groups Toolbar Family Safety Writer Movie Maker LiveID Hotmail Messenger Photo Gallery WL Spaces SkyDrive Profile Photos Mesh (beta) Outlook Live Live@edu Online companions to: Word Excel PowerPoint OneNote AppFabric SaaS Search Maps Exchange Hosted Services System Center Online Desktop Manager VXML Platform Speech Recognition 3rd Party Cloud Services User Data APIs WL Messenger SDKs WL SDK Microsoft Advertising APIs Silverlight Streaming SDK WL Admin Center SDK WL Spaces SDK WL Client Extensibility APIs AppFabric Service Connectivity Access Control RDBMS Service Relational Data Management DataMarket (Dallas) Discover, Purchase Management Connect (Sydney) PaaS Storage Service Blobs Tables Queues Compute Service Web Role Worker Role VM role Fabric Controller Agent 1 Agent 2 Agent n ApplicationLifecycleManagement Open Source SDK Interactive data access API data access 3rd Party Cloud Services Marketplace Virtual Network IaaS Dynamic Data Center Toolkit For Hosters Self Service Portal Microsoft enabled IaaS layer via Self-hosted or Partner
  21. Self-hosted Private Cloud Offerings Cloud Services SaaS 3rd Party Cloud Services Cloud Services PaaS Platform Appliance 3rd Party Cloud Services IaaS Dynamic Data Center Toolkit For Hosters Self Service Portal Microsoft enabled IaaS layer via Self-hosted or Partner
  22. Partner Hosted Private Cloud Offerings Cloud Services SaaS 3rd Party Cloud Services Cloud Services PaaS Platform Appliance 3rd Party Cloud Services IaaS Dynamic Data Center Toolkit For Hosters Self Service Portal Microsoft enabled IaaS layer via Self-hosted or Partner

  23. The economics ofcloud Computing

    Andreas Ebert Regional Technology Officer Western Europe
More Related