is the cloud a gamble

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Is Cl oud Computing a g a mb le?

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Simon Wardley examines of the benefits & risks of cloud computing and how this industry is shaping up.

TRANSCRIPT

Is Cloud Computing

a gamble?

Simon Wardley

DANGER!Will Robinson

DANGER!

Sccott Beale/Laughing Squid : http://www.flickr.com/photos/laughingsquid/

Pai

n

No. Slides

Pai

n

No. Slides

Pai

n

OK

Severerisk of harm

25 slides

No. Slides

Pai

n

OK

Severerisk of harm

306 slides

Cloud Computing

What isCloud Computing?

It’s like computers on the internet,

innit.

http://www.flickr.com/photos/radioflyer007/http://upload.wikimedia.org/wikipedia/en/5/51/Metropolis.jpg

Disruptive shift of the computing stack to online

services.

It’s like computers on the internet,

innit.

It’s like SaaS or software as a service, and infrastructure provision and PaaS, that’s

platform as a Service and utility computing being provided in public clouds,

which is different from private clouds which aren’t cloud computing, unless of course you’re talking about hybrid clouds which sort of are and it’s hype and lock-in

and did I mention infrastructure?

67 definitions

No. Slides

Pai

n

OK

Severerisk of harm

306 slides

1. On-demand self-service

Internet infrastructure where you pay-as-you-go and use only what you

need, all managed by a browser, application or API. Cloud computing is

broken up into multiple segments including: Cloud Infrastructure, Cloud

Platforms and Cloud Applications. (see "Cloud Pyramid")

1. On-demand self-service

Internet infrastructure where you pay-as-you-go and use only what you

need, all managed by a browser, application or API. Cloud computing is

broken up into multiple segments including: Cloud Infrastructure, Cloud

Platforms and Cloud Applications. (see "Cloud Pyramid")Cloud Pyramid

+ 8 definitions

2. A new generation of computing

that utilizes distant servers for data storage and management, allowing the device to use smaller and more

efficient chips that consume less energy than standard computers.

2. A new generation of computing

that utilizes distant servers for data storage and management, allowing the device to use smaller and more

efficient chips that consume less energy than standard computers.

new

2. A new generation of computing

that utilizes distant servers for data storage and management, allowing the device to use smaller and more

efficient chips that consume less energy than standard computers.

distant

3. the ability to draw IT resources

from a third party source.

No definition

Our Product

Cloud =

What is Industrial

Revolution?

It’s like mechanised horses, innit.

43 definitions

1. Broad socioeconomic and

technological changes starting in the early 18th century.

2. Rapid development of industry in

the early 19th century.

No definition

Not a thing

Transition

Industrial Revolution is a period in the18th and 19th centuries when major changes in agriculture, manufacturing, mining, and transportation had a profound effect on socioeconomic and culture conditions

It’s like mechanised horses, innit.

It’s like computers on the internet,

innit.

“Cloud computing” is a consequence of economic and technological conditions that have combined to cause a disruptive change in I.T. from a product towards a service based economy.

Why I.T. is changing.

Benefits & Risks.

Why I.T. is changing.

Canonical and the Cloud.

Benefits & Risks.

Why I.T. is changing.

Is Cloud Computing

a gamble?

Why I.T. is changing.

Paul Strassmann

http://www.strassmann.com/

Why I.T. is changing

Not all IT is the same.

Why I.T. is changing

Not all IT has value.

Why I.T. is changing

imperfect to perfect competition

Why I.T. is changing

Yesterday’s hot stuff

Why I.T. is changing

Yesterday’s hot stuff

Today’s boredom

Why I.T. is changing

Innovation

Why I.T. is changing

BespokeInnovation

Why I.T. is changing

ProductsBespokeInnovation

Why I.T. is changing

ServicesProductsBespokeInnovation

Why I.T. is changing

Commoditisation

ServicesProductsBespokeInnovation

Why I.T. is changing

ServicesProductsBespokeInnovation

Competitive Advantage

Why I.T. is changing

Commoditisation

ServicesProductsBespokeInnovation

Cost of doing business

Why I.T. is changing

Commoditisation

Innovation

Why I.T. is changing

1832

Innovation

Why I.T. is changing

1832

Bespoke

Innovation

Why I.T. is changing

1832

Bespoke

1837

Products

Image from Chicago Historical Society

Sccott Beale/Laughing Squid : http://www.flickr.com/photos/laughingsquid/

Innovation

Why I.T. is changing

1832

Bespoke

1837

Products

1890

Utility Grids

(Services)

Why I.T. is changing

Harvey Hubbell(1857-1927)

Innovation

Why I.T. is changing

1832

Bespoke

1837

Products

1930

National Grid

(Services)

As IT becomes ubiquitous it has no strategic value

Nicholas Carr

Why I.T. is changing

Why I.T. is changing

Yesterday’s hot stuff

Today’s boredom

Not all IT is the same.

Why I.T. is changing

As IT [activities] becomes ubiquitous it has

no strategic value

Nicholas Carr

Why I.T. is changing

Innovatio

n

Products

Bespoke

Service

s

Why I.T. is changing

X

Y

Ubi

quity

Why I.T. is changing

Nov

elUbi

quity

Why I.T. is changing

Nov

elCom

mon

Ubi

quity

Why I.T. is changing

Nov

elCom

mon

Ubi

quity

Certainty

Why I.T. is changing

Nov

el

Low

Com

mon

Ubi

quity

Certainty

Why I.T. is changing

Nov

el

Low High

Com

mon

Ubi

quity

Certainty

Why I.T. is changing

Nov

el

Low High

Com

mon

Ubi

quity

Certainty

TV’s & Phones

Why I.T. is changing

Nov

el

Low High

Com

mon

Ubi

quity

Certainty

Why I.T. is changing

Nov

el

Low High

Com

mon

Ubi

quity

Certainty

Why I.T. is changing

Innovation

Nov

el

Low High

Com

mon

Ubi

quity

Certainty

Why I.T. is changing

Bespoke

Products

Services

Innovation

Nov

el

Low High

Com

mon

Ubi

quity

Certainty

Innovation of CRM.

Why I.T. is changing

Nov

el

Low High

Com

mon

Ubi

quity

Certainty

Mid '80s DB marketing.

Why I.T. is changing

Nov

el

Low High

Com

mon

Ubi

quity

Certainty

CRM products90’s

Why I.T. is changing

Nov

el

Low High

Com

mon

Ubi

quity

Certainty

Why I.T. is changing

“Cloud Providers”like

Salesforce

Nov

el

Low High

Com

mon

Ubi

quity

Certainty

Accounts Payable

Company Web site

Wiki

Expense Procedure

Payroll

Social Network Analysis

Why I.T. is changing

Nov

el

Low High

Com

mon

Ubi

quity

Certainty

Accounts Payable

Company Web site

Wiki

Expense Procedure

Payroll

Social Network Analysis

Why I.T. is changing

Nov

el

Low High

Com

mon

Ubi

quity

Certainty

Why I.T. is changing

Nov

el

Low High

Com

mon

Ubi

quity

Certainty

Why I.T. is changing

Products

Nov

el

Low High

Com

mon

Ubi

quity

Certainty

Widespread

Why I.T. is changing

Nov

el

Low High

Com

mon

Ubi

quity

Certainty

Widespread

Feature Complete

Why I.T. is changing

Nov

el

Low High

Com

mon

Ubi

quity

Certainty

Widespread

Feature Complete

Why I.T. is changing

Nov

el

Low High

Com

mon

Ubi

quity

Certainty

“as a Service”Volume Operations

Why I.T. is changing

Services

Why I.T. is changing

John McCarthy

Utility Computing

ServicesProductsBespokeInnovation

highly disruptive

Why I.T. is changing

Joseph A. Schumpeter (1883 - 1950) !

The fundamental impulse that sets and keeps the capitalist engine in motion comes from the new consumers, goods, the new methods of production or transportation, the new markets, the new forms of industrial organization that capitalist enterprise creates.

Why I.T. is changing

The fundamental impulse that sets and keeps the capitalist engine in motion comes from the new consumers, goods, the new methods of production or transportation, the new markets, the new forms of industrial organization that capitalist enterprise creates.

Joseph A. Schumpeter (1883 - 1950) !

newnew

new new

Why I.T. is changing

Joseph A. Schumpeter (1883 - 1950) !

CreativeDestruction

Why I.T. is changing

ServicesProductsBespokeInnovation

Commoditisation

Why I.T. is changing

ServicesProductsBespokeInnovation

Why I.T. is changing

Power

ProductsBespokeInnovation Hardware

Internet

Why I.T. is changing

Power

ProductsBespokeGoogle Hardware

Internet

Why I.T. is changing

67 definitions of “cloud computing”

Services

Commoditisation

Innovation

Enables

Joseph A. Schumpeter (1883 - 1950) !

Why I.T. is changing

Services

Commoditisation

Innovation

Accelerates

Why I.T. is changing

Herbert A. Simon (1916 - 2001)

Rate of evolution of a system

Why I.T. is changing

ServicesInnovation

Rate of evolution of a system

directly related to

organisation of its subsystems

Why I.T. is changing

ServicesInnovation

Why I.T. is changing

Herbert A. Simon (1916 - 2001)

Componentisation

Operating System

CPU Memory I/O

Hypervisor

Why I.T. is changing

Database Framework

Operating System

CPU Memory I/O

Messaging

Hypervisor

Why I.T. is changing

Database Framework

Operating System

CPU Memory I/O

Messaging

Application Service

Hypervisor

Why I.T. is changing

Service

Database Framework

Operating System

CPU Memory I/O

Messaging

Application

Hypervisor

Why I.T. is changing

Service

Database Framework

Operating System

CPU Memory I/O

Messaging

Application

Hypervisor

Why I.T. is changing

Service

Database Framework

Operating System

CPU Memory I/O

Messaging

Application

Hypervisor

Why I.T. is changing

Service

Database Framework

Operating System

CPU Memory I/O

Messaging

Application

Hypervisor

Why I.T. is changing

x 100

Database Platform

Operating System

CPU Memory I/O

Messaging

Application Service

Hypervisor

Why I.T. is changing

Database Platform

Operating System

CPU Memory I/O

Messaging

Application Service

Hypervisor Infrastructure

Why I.T. is changing

Database Platform

Operating System

CPU Memory I/O

Messaging

Virtualisation

Platform

Infrastructure

Application Service

Why I.T. is changing

Database Platform

Operating System

CPU Memory I/O

Messaging

Application Service

Virtualisation

Application

Platform

Infrastructure

Why I.T. is changing

ServicesProductsBespokeInnovation

Platform

Application

Infrastructure

Why I.T. is changing

ServicesProductsBespokeInnovation

(Componentisation)

Platform

Application

Infrastructure

Why I.T. is changing

Why I.T. is changing

Nov

el

Low High

Com

mon

Ubi

quity

Certainty

Widespread

Feature Complete

Why I.T. is changing

Nov

el

Low High

Com

mon

Ubi

quity

Certainty

Volume Operations

Services

CPU

Amazon EC2Infrastructure as a Service

Why I.T. is changing

CPU

Google App Engine

Amazon EC2

Platform as a Service

Infrastructure as a Service

Why I.T. is changing

CPU

SalesForce

Google App Engine

Amazon EC2

Software as a Service

Platform as a Service

Infrastructure as a Service

Why I.T. is changing

As IT [activities] becomes ubiquitous it has

no strategic value

Nicholas Carr

Why I.T. is changing

ServicesProductsBespokeInnovation

Cost of doing business

Why I.T. is changing

Commoditisation

ServicesProductsBespokeInnovation

Platform

Application

Infrastructure

Disruptive Shift

Why I.T. is changing

ServicesProductsBespokeInnovation

(Componentisation)

Platform

Application

Infrastructure

Why I.T. is changing

Why I.T. is changing

“Cloud computing” is a consequence of economic and technological conditions that have combined to cause a disruptive change in I.T. towards a service based economy.

Joseph A. Schumpeter (1883 - 1950) !

CreativeDestruction

Why I.T. is changing

Why I.T. is changing

John McCarthy

Utility Computing

Recap

Commoditisation

ServicesProductsBespokeInnovation

Recap

Nov

el

Low High

Com

mon

Ubi

quity

Certainty

Accounts Payable

Company Web site

Wiki

Expense Procedure

Payroll

Social Netwok Analysis

Recap

Recap

Nov

el

Low High

Com

mon

Ubi

quity

Certainty

Bespoke

Products

Services

Innovation

Recap

Paul Strassmann

http://www.strassmann.com/

Herbert A. Simon (1916 - 2001)

Componentisation

Recap

Database Platform

Operating System

CPU Memory I/O

Messaging

Application Service

Virtualisation

Application

Platform

Infrastructure

Recap

ServicesProductsBespokeInnovation

Platform

Application

Infrastructure

Disruptive

Recap

Recap

Nov

el

Low High

Com

mon

Ubi

quity

Certainty

“As a Service”

Services

CPU

SalesForce

Google App Engine

Amazon EC2

Software as a Service

Platform as a Service

Infrastructure as a Service

Recap

John McCarthy

Utility Computing

Recap

Transition

Recap

“Cloud computing” is a consequence of economic and technological conditions that have combined to cause a disruptive change in I.T. towards a service based economy.

ProductCloud !

Benefits & Risks.

Why I.T. is changing.

• Economies of scale. (volume)

Benefits & Risks of Cloud Computing

• Economies of scale. (volume)

• Pay per use. (utility)

Benefits & Risks of Cloud Computing

• Economies of scale. (volume)

• Pay per use. (utility)

• Speed to market. (componentisation)

Benefits & Risks of Cloud Computing

• Economies of scale. (volume)

• Pay per use. (utility)

• Speed to market. (componentisation)

• Focus on core. (outsourcing)

Benefits & Risks of Cloud Computing

Nov

el

Low High

Com

mon

Ubi

quity

Certainty

You

Benefits & Risks of Cloud Computing

Nov

el

Low High

Com

mon

Ubi

quity

Certainty

You

Market

Benefits & Risks of Cloud Computing

Nov

el

Low High

Com

mon

Ubi

quity

Certainty

Competitive Gap

You

Market

Benefits & Risks of Cloud Computing

Nov

el

Low High

Com

mon

Ubi

quity

Certainty

You

Market

Benefits & Risks of Cloud Computing

The need to constantly evolve in order to stand still relative to an eco-system.

Professor Leigh M. Van Valen

Benefits & Risks of Cloud Computing

Professor Leigh M. Van Valen

Red QueenHypothesis

Benefits & Risks of Cloud Computing

• Economies of scale. (volume)

• Pay per use. (utility)

• Speed to market. (componentisation)

• Focus on core. (outsourcing)

Nov

el

Low High

Com

mon

Competitive Gap

Market

You

Benefits & Risks of Cloud Computing

Benefits & Risks of Cloud Computing

ServicesProductsBespokeInnovation

Platform

Application

Infrastructure

Disruptive Shift

Transition

Benefits & Risks of Cloud Computing

• Management.

Transition

Benefits & Risks of Cloud Computing

• Trust.

• Management.

Transition

Benefits & Risks of Cloud Computing

• Trust.

• Transparency.

• Management.

Transition

• Trust.

• Security of supply

• Transparency.

• Management.

Benefits & Risks of Cloud Computing

Benefits & Risks of Cloud Computing

Nov

el

Low High

Com

mon

Ubi

quity

Certainty

Services

Transition

• Trust.

• Security of supply.

• Transparency.

• Management.

General

• Suitability.

Benefits & Risks of Cloud Computing

Transition

• Trust.

• Security of supply.

• Transparency.

• Management.

General

• Price competition.

• Suitability.

Benefits & Risks of Cloud Computing

Transition

• Trust.

• Security of supply.

• Transparency.

• Management.

General

• Suitability.

• Lock-in.

• Price competition.

Benefits & Risks of Cloud Computing

Transition

• Trust.

• Security of supply.

• Transparency.

• Management.

General

• Suitability.

• Lock-in.

• Second sourcing.

• Price competition.

Benefits & Risks of Cloud Computing

Benefits & Risks of Cloud Computing

Adoption Barriers

Benefits & Risks of Cloud Computing

Nov

el

Low High

Com

mon

Gap

Market

You

Vs

Canonical and the Cloud.

Benefits & Risks.

Why I.T. is changing.

Canonical and the Cloud

• Fastest growing Linux-based operating system.

Canonical and the Cloud

• Fastest growing Linux-based operating system.

Canonical and the Cloud

• Over 10,000,000 users.

Transition

• Trust.

• Security of supply.

• Transparency.

• Management.

General

• Suitability.

• Lock-in.

• Second sourcing.

• Price competition.

Canonical and the Cloud

Electricity

Canonical and the Cloud

BOOM!

Electricity

Canonical and the Cloud

Standard Output

BOOM!

Canonical and the Cloud

Application

Platform

Infrastructure

Canonical and the Cloud

Application

Platform

Infrastructure

Canonical and the Cloud

Data

Application

You

Canonical and the Cloud

Platform

Operating System

Hypervisor

Bare Metal

Data

Application

Provider(i.e. CogHead)

Canonical and the Cloud

Platform

Operating System

Hypervisor

Bare Metal

Data

Application

BOOM!

Canonical and the Cloud

Platform

Operating System

Hypervisor

Bare Metal

Platform

Operating System

Hypervisor

Bare Metal

Data

Application

BOOM!

Canonical and the Cloud

Platform

Operating System

Hypervisor

Bare Metal

Platform

Operating System

Hypervisor

Bare Metal

Data

Application

Multiple Providers

Canonical and the Cloud

Platform PlatformEasy

Switching

Data

Application

Operating System

Hypervisor

Bare Metal

Operating System

Hypervisor

Bare Metal

Canonical and the Cloud

Platform Platform

Data

Application

Operating System

Hypervisor

Bare Metal

Operating System

Hypervisor

Bare Metal

Standard Output

Canonical and the Cloud

Paul Baran

Canonical and the Cloud

IPX / SPXBanyan Vines

AppleTalkSNA

DECNET

Canonical and the Cloud

IPX / SPXBanyan Vines

AppleTalkSNA

Decnet

TCP/IP

Canonical and the Cloud

IPX / SPXBanyan Vines

AppleTalkSNA

Decnet

TCP/IP

Open

Canonical and the Cloud

IPX / SPXBanyan Vines

AppleTalkSNA

Decnet

TCP/IPBind

SendMailApache

Open SourceOpen

Canonical and the Cloud

TCP/IP

IPX / SPXBanyan Vines

AppleTalkSNA

Decnet

Innovation

(Componentisation)

Canonical and the Cloud

Harvey Hubbell(1857-1927)

Canonical and the Cloud

Application

Platform

Infrastructure

Canonical and the Cloud

Application

Platform

Amazon EC2

Canonical and the Cloud

Ubuntu Server Edition on Amazon EC2.

http://www.ubuntu.com/ec2

Canonical and the Cloud

9.04 (April)Ubuntu Enterprise Cloud

http://www.ubuntu.com/cloud

Canonical and the Cloud

Canonical and the Cloud

Canonical and the Cloud

Ubuntu Server Edition

Physical Machines (bare bones)

Cloud Controller

Node Controller

KVM Hyp.Web UI

VMEucalyptus

Private cloudTracks Amazon EC2 API

Canonical and the Cloud

Tracks Amazon EC2 API

Uses KVM hypervisor

Ubuntu Server Edition

Physical Machines (bare bones)

Cloud Controller

Node Controller

KVM Hyp.Web UI

VMEucalyptus

Private cloud

Canonical and the Cloud

Tracks Amazon EC2 API

Uses KVM hypervisor

EBS & S3 EquivalentUbuntu Server Edition

Physical Machines (bare bones)

Cloud Controller

Node Controller

KVM Hyp.Web UI

VMEucalyptus

Private cloud

Canonical and the Cloud

Tracks Amazon EC2 API

Uses KVM hypervisor

EBS & S3 Equivalent

Completely open sourced.

Ubuntu Server Edition

Physical Machines (bare bones)

Cloud Controller

Node Controller

KVM Hyp.Web UI

VMEucalyptus

Private cloud

Bare Metal

Hypervisor

Private Cloud

Canonical and the Cloud

Bare Metal Bare Metal

Hypervisor Hypervisor

Amazon EC2 Private Cloud

Canonical and the Cloud

Bare Metal Bare Metal

Hypervisor Hypervisor

Canonical and the Cloud

Amazon EC2 Private Cloud

Easy Switching

• Economies of scale. (volume)

• Pay per use. (utility)

• Speed to market. (componentisation)

• Focus on core. (outsourcing)

• Greener (efficient supply & demand)

Nov

el

Low High

Com

mon

Competitive Gap

Market

You

Canonical and the Cloud

Canonical and the Cloud

Public cloud Private cloud

Portability and burst scalability

Ubuntu MIEC2

Ubuntu MIUEC

Standard Ouptut

Canonical and the Cloud

Ecosystem

Canonical and the Cloud

Canonical and the Cloud

Bare Metal

Hypervisor

Canonical and the Cloud

Bare Metal

Hypervisor

Bare Metal

Hypervisor

Canonical and the Cloud

Bare Metal

Hypervisor

Bare Metal

Hypervisor

Canonical and the Cloud

Bare Metal

Hypervisor

Bare Metal

Hypervisor

Price

Canonical and the Cloud

Bare Metal

Hypervisor

Bare Metal

Hypervisor

Quality of Service

Nov

el

Low High

Com

mon

Ubi

quity

Certainty

Feature Differentiation

Canonical and the Cloud

Nov

el

Low High

Com

mon

Ubi

quity

Certainty

Price vs QoS

Canonical and the Cloud

CompetitiveMarket

Canonical and the Cloud

Recap

Commoditisation

ServicesProductsBespokeInnovation

Recap

Recap

Paul Strassmann

http://www.strassmann.com/

ServicesProductsBespokeInnovation

Platform

Application

Infrastructure

Disruptive

Recap

Recap

Nov

el

Low High

Com

mon

Ubi

quity

Certainty

“as a Service”Industry

John McCarthy

Utility Computing

Recap

Recap

“Cloud computing” is a consequence of economic and technological conditions that have combined to cause a disruptive change in I.T. towards a service based economy.

• Economies of scale. (volume)

• Pay per use. (utility)

• Speed to market. (componentisation)

• Focus on core. (outsourcing)

Recap

• Economies of scale. (volume)

• Pay per use. (utility)

• Speed to market. (componentisation)

• Focus on core. (outsourcing)

Nov

el

Low High

Com

mon

Competitive Gap

Market

You

Recap

Transition

• Trust.

• Security of supply.

• Transparency.

• Management.

General

• Suitability.

• Lock-in.

• Second sourcing.

• Price competition.

Recap

Standard Output

Recap

IPX / SPXBanyan Vines

AppleTalkSNA

Decnet

TCP/IPBind

SendMailApache

Open SourceOpen

Recap

Bare Metal Bare Metal

Hypervisor HypervisorStandard Output

Amazon EC2 Private Cloud

Recap

9.04 Ubuntu Enterprise Cloud

(Eucalyptus)

Recap

CompetitiveMarket

Recap

Recap

Bare Metal

Hypervisor

Bare Metal

Hypervisor

Is Cloud Computing

a gamble?

Yes

• Economies of scale. (volume)

• Pay per use. (utility)

• Speed to market. (componentisation)

• Focus on core. (outsourcing)

Nov

el

Low High

Com

mon

Competitive Gap

Market

You

Is cloud computing a gamble?

what, whom, when?

Is cloud computing a gamble?

Transition

• Trust.

• Security of supply.

• Transparency.

• Management.

General

• Suitability.

• Lock-in.

• Second sourcing.

• Price competition.

Is cloud computing a gamble?

Nov

el

Low High

Com

mon

Ubi

quity

Certainty

Is cloud computing a gamble?

Transition

• Trust.

• Security of supply.

• Transparency.

• Management.

General

• Suitability.

• Lock-in.

• Second sourcing.

• Price competition.

Is cloud computing a gamble?

Standard Output

Is cloud computing a gamble?

Nov

el

Low High

Com

mon

Gap

Market

You

Vs

Is cloud computing a gamble?

Transition

• Trust.

• Security of supply.

• Transparency.

• Management.

General

• Suitability.

• Lock-in.

• Second sourcing.

• Price competition.

Is cloud computing a gamble?

JoeInfrastructureas a Service

Is cloud computing a gamble?

JoeBare Metal Bare Metal Bare Metal

Is cloud computing a gamble?

JoeBare Metal Bare Metal Bare Metal

Hypervisor Technology

Is cloud computing a gamble?

JoeBare Metal Bare Metal Bare Metal

Hypervisor Technology

Is cloud computing a gamble?

Tom

Bare Metal Bare Metal Bare Metal

Hypervisor Technology

Storage

Is cloud computing a gamble?

Bare Metal Bare Metal Bare Metal

Hypervisor Technology

Storage

Joe

Is cloud computing a gamble?

DickPaaS

Bare Metal Bare Metal Bare Metal

Hypervisor Technology

Storage

Is cloud computing a gamble?

DickDevelopment Platform

Bare Metal Bare Metal Bare Metal

Hypervisor Technology

Storage

Is cloud computing a gamble?

Development Platform

Bare Metal Bare Metal Bare Metal

Hypervisor Technology

Storage

Joe

Is cloud computing a gamble?

HarryDevelopment Platform

Bare Metal Bare Metal Bare Metal

Hypervisor Technology

Storage

Mapping API

Is cloud computing a gamble?

Tom

Mapping API

Development Platform

Bare Metal Bare Metal Bare Metal

Hypervisor Technology

Storage

Is cloud computing a gamble?

AliceMapping API

Development Platform

SaaS

Bare Metal Bare Metal Bare Metal

Hypervisor Technology

Storage

Is cloud computing a gamble?

AliceMapping API

Development Platform

Transport Routing

Bare Metal Bare Metal Bare Metal

Hypervisor Technology

Storage

Is cloud computing a gamble?

Harry Mapping API

Development Platform

Transport Routing

Bare Metal Bare Metal Bare Metal

Hypervisor Technology

Storage

Is cloud computing a gamble?

Tom Development Platform

Transport Routing

Bare Metal Bare Metal Bare Metal

Hypervisor Technology

Storage

Mapping API

Is cloud computing a gamble?

Dick

Mapping API

Development Platform

Transport Routing

Bare Metal Bare Metal Bare Metal

Hypervisor Technology

Storage

Is cloud computing a gamble?

Mapping API

Development Platform

Transport Routing

Bare Metal Bare Metal Bare Metal

Hypervisor Technology

Storage

Bob

Is cloud computing a gamble?

AliceMapping API

Development Platform

Transport Routing

Bare Metal Bare Metal Bare Metal

Hypervisor Technology

Storage

Is cloud computing a gamble?

Mapping API

Development Platform

Transport Routing

Bare Metal Bare Metal Bare Metal

Hypervisor Technology

Storage

Is cloud computing a gamble?

Mapping API

Development Platform

Transport Routing

Bare Metal Bare Metal Bare Metal

Hypervisor Technology

Storage

Joe

Is cloud computing a gamble?

Mapping API

Development Platform

Transport Routing

Hypervisor Technology

Storage

Joe

Is cloud computing a gamble?

Mapping APIDev

elopm

ent P

latfo

rm

Transport RoutingHypervisor Technology

Storage

Is cloud computing a gamble?

Bob Alice

Is cloud computing a gamble?

Bob Alice

Tom, Dick, Harry or Joe

Is cloud computing a gamble?

JoeHouse House House

Is cloud computing a gamble?

House House House

SecurityTom

Is cloud computing a gamble?

House House House

Security

Dick

Is cloud computing a gamble?

Benefits & Risks of Cloud Computing

http://www.flickr.com/photos/rednuht/479370088

Transparency

whoops ...

the outtakes ...

i.e. more slides ...

[email protected]

B. Part I - Why I.T. is complex

C. Part II - The Paradox

E. Things to Watch

F. A fast life

A. The Good, Bad & Ugly

G. Happy Clouds

D. Part III - More or less

Good, Bad & Ugly

ServicesProductsBespokeInnovation

(Componentisation)

Platform

Application

Infrastructure

The Good

ServicesProductsBespokeInnovation

Platform

Application

Infrastructure

Disruptive Shift

The Bad

Nov

el

Low High

Com

mon

Ubi

quity

Certainty

Widespread

Feature Complete

The Bad

As IT becomes ubiquitous it has no strategic value

Nicholas Carr

The Bad

Joseph A. Schumpeter (1883 - 1950) !

CreativeDestruction

The Bad

John McCarthy

Utility Computing

The Ugly

Software

Framework

Hardware

The Ugly

Software as a Service (SaaS)

Framework as a Service (FaaS)

Hardware as a Service (HaaS)

2007

The Ugly

Robert Lefkowitz

“this is going to lead to a whole lot of aaS.”

Oscon 2007

2007 - 2008

The Ugly

The Ugly

Application

Platform

Infrastructure

Software

Framework

Hardware

DaaS

DaaS

XaaS

PaaSSaaSp

SaaSu

WaaSIaaS FaaS

OaaS

FaaSHaaSSaaS

SaaSyDaaS

DBaaS

2008

Application

Platform

Infrastructure

The Ugly

Application as a Service (SaaS)

Platform as a Service (PaaS)

Infrastructure as a Service (IaaS)

2009

Terminology.

[email protected]

B. Part I - Why I.T. is complex

C. Part II - The Paradox

E. Things to Watch

F. A fast life

A. The Good, Bad & Ugly

G. Happy Clouds

D. Part III - More or less

Part IWhy I.T. is complex

Nov

el

Low High

Com

mon

Certainty

Ubi

quity

Innovation of CRM.

Complexity

Nov

el

Low High

Com

mon

Certainty

Ubi

quity Uncertain

Complexity

Nov

el

Low High

Com

mon

Certainty

Ubi

quity Uncertain

Deviation

Complexity

Nov

el

Low High

Com

mon

Certainty

Ubi

quity Uncertain

Deviation

Differential

Complexity

Nov

el

Low High

Com

mon

Certainty

Ubi

quity Uncertain

Deviation

Differential

Worth

Complexity

Nov

el

Low High

Com

mon

Certainty

Ubi

quity

Dynamic

Complexity

AgileXP / Scrum

Nov

el

Low High

Com

mon

Certainty

Ubi

quity

Complexity

Nov

el

Low High

Com

mon

Certainty

Ubi

quity

Utility-like provision of CRM

Complexity

Nov

el

Low High

Com

mon

Certainty

Ubi

quity

“Cloud Providers”like

Salesforce

Complexity

Nov

el

Low High

Com

mon

Certainty

Ubi

quity

Defined

Complexity

Nov

el

Low High

Com

mon

Certainty

Ubi

quity

Defined

No Deviation

Complexity

Nov

el

Low High

Com

mon

Certainty

Ubi

quity

Defined

No Deviation

CODB

Complexity

Nov

el

Low High

Com

mon

Certainty

Ubi

quity

Defined

No Deviation

CODB

Cost

Complexity

Nov

el

Low High

Com

mon

Certainty

Ubi

quity

Defined

Complexity

Nov

el

Low High

Com

mon

Certainty

Ubi

quity

Complexity

Prince 2, Six Sigma

Nov

el

Low High

Com

mon

Certainty

Ubi

quity

Prince 2, Six Sigma

AgileXP, Scrum

Complexity

Nov

el

Low High

Com

mon

Certainty

Ubi

quity

CRM

CRM

Complexity

Nov

el

Low High

Com

mon

Certainty

Ubi

quity

Six Sigma

Complexity

Nov

el

Low High

Com

mon

Certainty

Ubi

quity

COMMODITY

Complexity

Nov

el

Low High

Com

mon

Certainty

Ubi

quity

INNOVATION

Complexity

Nov

el

Low High

Com

mon

Certainty

Ubi

quity Different

Methodologies

Complexity

[email protected]

B. Part I - Why I.T. is complex

C. Part II - The Paradox

E. Things to Watch

F. A fast life

A. The Good, Bad & Ugly

G. Happy Clouds

D. Part III - More or less

Part IIThe Paradox

Complexity ... Part II

Nov

el

Low High

Com

mon

Certainty

Ubi

quity

Prince 2, Six Sigma

AgileXP, Scrum

Nov

el

Low High

Com

mon

Certainty

Ubi

quity

INNOVATION

Six Sigma

Complexity ... Part II

Nov

el

Low High

Com

mon

Ubi

quity

Certainty

Accounts Payable

Company Web site

Wiki

Expense Procedure

Payroll

Social Network Analysis

Complexity ... Part II

Nov

el

Low High

Com

mon

Ubi

quity

Certainty

Competitive Gap

You

Market

Complexity ... Part II

The need to constantly evolve in order to stand still relative to an eco-system.

Professor Leigh M. Van Valen

Complexity ... Part II

The fundamental impulse that sets and keeps the capitalist engine in motion comes from the new consumers, goods, the new methods of production or transportation, the new markets, the new forms of industrial organization that capitalist enterprise creates.

Joseph A. Schumpeter (1883 - 1950) !

newnew

new new

Complexity ... Part II

Survival today requires ‘coherence,

coordination and stability’ [order].

&

Survival tomorrow requires the replacement

of these virtues [disorder].

Salaman & Storey

Innovation Paradox

Complexity ... Part II

Nov

el

Low High

Com

mon

Certainty

Ubi

quity

Order

Disorder

Complexity ... Part II

Nov

el

Low High

Com

mon

Certainty

Ubi

quity

Six Sigma

Complexity ... Part II

Nov

el

Low High

Com

mon

Certainty

Ubi

quity

Complexity ... Part II

Nov

el

Low High

Com

mon

Certainty

Ubi

quity

20% Rule

Complexity ... Part II

Nov

el

Low High

Com

mon

Certainty

Ubi

quity

20% Rule

Complexity ... Part II

Rigorous defined procedures

[email protected]

B. Part I - Why I.T. is complex

C. Part II - The Paradox

E. Things to Watch

F. A fast life

A. The Good, Bad & Ugly

G. Happy Clouds

D. Part III - More or less

Things to watch ...

Application

Platform

Infrastructure

Things to watch

CompetitiveMarket

Things to watch

Platform Platform

Data

Application

Operating System

Hypervisor

Bare Metal

Operating System

Hypervisor

Bare Metal

Standard Output

Things to watch

Platform

Things to watch

PlatformTechnology

Vendor

Things to watch

TechnologyVendor

Provider

Things to watch

TechnologyVendor

Provider

Consumer

Things to watch

TechnologyVendor

Provider

ISV

Consumer

Things to watch

TechnologyVendor

Provider

Consumer

ISV

Things to watch

TechnologyVendor

Provider

Consumer

ISV

Locked-in

Things to watch

Open Standard

Provider

Consumer

ISV

Things to watch

EXTEND

Provider

Consumer

ISV

Things to watch

Nov

el

Low High

Com

mon

Ubi

quity

Certainty

Feature Differentiation

Things to watch

Nov

el

Low High

Com

mon

Ubi

quity

Certainty

Price vs QoS

Things to watch

Platform

Open Source

ReferenceModel

Things to watch

B. Why Transparency Matters

[email protected]

C. Part I - Why I.T. is complex

D. Part II - The Paradox

F. Things to Watch

G. A fast life

A. The Good, Bad & Ugly

H. Happy Clouds

E. Part III - More or less

Part IIIMore Or Less ...

http://www.flickr.com/photos/radioflyer007/http://upload.wikimedia.org/wikipedia/en/5/51/Metropolis.jpg

http://www.flickr.com/photos/radioflyer007/ http://petjunction.blogspot.com/2007/07/adorables.html

http://www.flickr.com/photos/radioflyer007/ http://petjunction.blogspot.com/2007/07/adorables.html

I’m in ur Internets

http://www.flickr.com/photos/radioflyer007/ http://petjunction.blogspot.com/2007/07/adorables.html

I’m in ur Internets

... web fohwr zero!!

Nov

el

Low High

Com

mon

Ubi

quity

Certainty

More innovation

Nov

el

Low High

Com

mon

Ubi

quity

Certainty

Payroll

More innovation

Nov

el

Low High

Com

mon

Ubi

quity

Certainty

Company Web site

Payroll

More innovation

Nov

el

Low High

Com

mon

Ubi

quity

Certainty

Payroll

Neuristic Kitten Thing

More innovation

Company Web site

Nov

el

Low High

Com

mon

Ubi

quity

Certainty

More innovation

Dynamic

Nov

el

Low High

Com

mon

Ubi

quity

Certainty

INNOVATION

More innovation

Nov

el

Low High

Com

mon

Ubi

quity

Certainty

Competitive Gap

You

Market

More innovation

http://www.flickr.com/photos/radioflyer007/http://upload.wikimedia.org/wikipedia/en/5/51/Metropolis.jpg

The need to constantly evolve in order to stand still relative to an eco-system.

Professor Leigh M. Van Valen

More innovation

“more efficient”

More innovation

“more process”

More innovation

Nov

el

Low High

Com

mon

Ubi

quity

Certainty

More innovation

Defined Processes

Nov

el

Low High

Com

mon

Ubi

quity

Certainty

COMMODITY

More innovation

http://www.flickr.com/photos/radioflyer007/ http://petjunction.blogspot.com/2007/07/adorables.html

Nov

el

Low High

Com

mon

Ubi

quity

Certainty

COMMODITY

More innovation

Nov

el

Low High

Com

mon

Ubi

quity

Certainty

Defined

More innovation

Nov

el

Low High

Com

mon

Ubi

quity

Certainty

INNOVATION

More innovation

Joseph A. Schumpeter (1883 - 1950) !

CreativeDestruction

More innovation

http://www.flickr.com/photos/radioflyer007/http://upload.wikimedia.org/wikipedia/en/5/51/Metropolis.jpg

http://www.flickr.com/photos/radioflyer007/ http://petjunction.blogspot.com/2007/07/adorables.html

“innovate more”

More innovation

“less process”

More innovation

“more process”

More innovation

“ideas process”

More innovation

Nov

el

Low High

Com

mon

Certainty

Ubi

quity

Skunk works

Rigorous defined procedures

More innovation

[email protected]

B. Part I - Why I.T. is complex

C. Part II - The Paradox

E. Things to Watch

F. A fast life

A. The Good, Bad & Ugly

G. Happy Clouds

D. Part III - More or less

Adopt a fast life ...

Commoditisation

ServicesProductsBespokeInnovation

Fast life

ServicesProductsBespokeInnovation

Product Competition

Fast life

Early

Adoption

Time

Products

Laggards

Fast life

“New and Improved”

Adoption

Time

Products

“Original”

Fast life

Diffusion of Product

Innovation

Everett Rogers

( 1931 - 2004 )

Fast life

Nov

el

Low High

Com

mon

Ubi

quity

Certainty

Product

Fast life

Nov

el

Low High

Com

mon

Ubi

quity

Certainty

INNOVATION

Product

Fast life

“New and Improved”

Adoption

Time

Products

“Original”

Fast life

Nov

el

Low High

Com

mon

Ubi

quity

Certainty

Widespread

Feature Complete

INNOVATION

Product

Fast life

Nov

el

Low High

Com

mon

Ubi

quity

Certainty

INNOVATION

Services

Product

Fast life

ServicesProductsBespokeInnovation

highly disruptive

Fast life

Nov

el

Low High

Com

mon

Certainty

Ubi

quity

Standard Components

Fast life

Nov

el

Low High

Com

mon

Certainty

Ubi

quity

Standard Components

Componentisation

Fast life

Nov

el

Low High

Com

mon

Certainty

Ubi

quity

Innovation

Standard Components

Componentisation

Fast life

Nov

el

Low High

Com

mon

Certainty

Ubi

quity

Innovation

Standard Components

Commoditisation

Componentisation

Fast life

Nov

el

Low High

Com

mon

Certainty

Ubi

quity

Innovation

Standard Components

Commoditisation

Componentisation

Fast life

Nov

el

Low High

Com

mon

Certainty

Ubi

quity

Innovation

Standard Components

Commoditisation

Componentisation

Fast life

[email protected]

B. Part I - Why I.T. is complex

C. Part II - The Paradox

E. Things to Watch

F. A fast life

A. The Good, Bad & Ugly

G. Happy Clouds

D. Part III - More or less

Happy clouds ...

Happy Clouds

Three Rules happy

Rule 1

Three Rules happy

Run the service on my own machines.

Happy Clouds

Three Rules happy

Rule 1

Rule 2Easily switch between my machines and a cloud provider.

Run the service on my own machines.

Happy Clouds

Three Rules happy

Easily switch between my machines and a cloud provider.

Easily switch between cloud providers.

Run the service on my own machines.

Rule 1

Rule 2

Rule 3

Happy Clouds

Bare Metal

Hypervisor

Private Cloud

Happy Clouds

Bare Metal Bare Metal

Hypervisor Hypervisor

Amazon EC2 Private Cloud

Easy Switching

Happy Clouds

CompetitiveMarket

Happy Clouds

[email protected]

B. Part I - Why I.T. is complex

C. Part II - The Paradox

E. Things to Watch

F. A fast life

A. The Good, Bad & Ugly

G. Happy Clouds

D. Part III - More or less

End ...

Beyond End ...

Nov

el

Low High

Com

mon

Ubiquity

Certainty

InnovationBespoke

Products

Services