oracle open world preso on cloud economics

© 2011 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are the property of their respective owners.

Ron Batra, Director, Cloud Computing October 1, 2012

Session ID: CON7393 Session Title: Cloud Economics - A Business Case Approach Oracle Open World 2012

Speaker Bio

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Currently leads Product Development and Management for AT&T Hosting, Cloud and Application Services.

•~18+ years cross industry technology experience in IT, Consulting and Product Management, in Sales, Delivery and Leadership roles from $500K to $20MM.

•Oracle experience include Database, Apps and Middleware.

•Industry vertical includes Energy, Utilities, Semi-Conductor, Telecom, Healthcare, Finance, Automotive, Aerospace, Retail

•Served as an Oracle Deputy CTO – 2008-2009,

•Serving as an Oracle ACE Director – since 2007

•Serve User Groups (IOUG, OAUG) in several capacities.

Contact Information

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www.linkedin.com/in/ronbatra

@ronbatra

[email protected]

+15129348659

http://networkingexchangeblog.att.com/

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Safe Harbor and Disclaimer

Information contained in this presentation represents my views only. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions.

All content is copyrighted and no reproduction in any format allowed, unless authorized by the author.


AT&T in the Cloud Space

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AT&T is Focused on Delivering Highly Secure, Reliable

Cloud

Building on a history in multi-tenancy and infrastructure services

• Global experience securing 38 data centers globally, with audited network, logical and physical controls

• Broad experience managing and securing multi-tenant environments

• Extensive experience providing separation in virtual, shared infrastructures

• Corporate wide focus on layered security, including investment in AT&T Labs to combat cyber threats

Layered Security Protects the Cloud

Logical

Physical

Network

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Enterprise

AT&T Cloud Architect Joins a Portfolio of Application Solutions

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Self-service multi-tenant public cloud

Managed virtualized multi-tenant (virtual private)

Managed virtualized dedicated (private)

Highly reliable physical infrastructure

z

On-Demand Self Service

AT&T Managed Solutions Client Managed

AT&T Network

AT&T Cloud Architect Flexible Options for Every Application

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Public Instance

Private Instance

Hypervisor

Server Hardware

Instance/VM

Dedicated Server

Virtualized Physical

Bare Metal Server

• General purpose web applications

• Development/ test • Variable/ transient

workloads

• Uses similar to public instances

• Plus compliance or performance needs

• High performance computing

• I/O intensive data processing

• Constant/ stable workloads

• Dedicated server virtualization

• Database servers

Full Featured Service Helps You Create Your Cloud

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Deployment Public Private Bare Metal Dedicated

Single Tenant Servers

Virtual via Hypervisor Optional

Hourly Billing

Monthly Billing

Provisioning Time Minutes Minutes Minutes 2-4 Hours

Choose the Add-on Options and Features You Need, Including: • Software: OS, database, virtualization, control panel, utility • Network: bandwidth, port speed, IP addresses, load balancing, VPN access, content delivery • Monitoring: hardware and OS monitoring, system health monitoring, application monitoring • Security: Intrusion detection systems, firewalls, anti-virus and anti-spyware protection, SSL certificates • Storage: Backup, replication, snapshots, object-based storage • Other Options: Email delivery service, digital transcoding

© 2012 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property. 10

Cloud Computing 101 and NIST

NIST Definition of Cloud Computing

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•Cloud computing is a model for enabling convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction. This cloud model promotes availability and is composed of five essential characteristics, three service models, and four deployment models.

•Note 1: Cloud computing is still an evolving paradigm. Its definitions, use cases, underlying technologies, issues, risks, and benefits will be refined in a spirited debate by the public and private sectors. These definitions, attributes, and characteristics will evolve and change over time.

•Note 2: The cloud computing industry represents a large ecosystem of many models, vendors, and market niches. This definition attempts to encompass all of the various cloud approaches

Source: National Institute of Standards and Technology (NIST).


“…a model for enabling ubiquitous, convenient, on-demand network access to a shared pool of configurable computing resources that can be rapidly provisioned and released with minimal management effort or service provider interaction.”

- National Institutes of Standards and Technology

What is “Cloud Computing”?

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5 Essential Characteristics

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On Demand Self Service

Broad Network Access

Resource Pooling

Rapid Elasticity

Measured Service

Cloud Computing Service Models

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Cloud Computing Deployment Models

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PaaS IaaS SaaS

Hybrid Public

VPN

IaaS

Virtual Private Cloud

Private

IaaS


Cloud Computing Value Propositions

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Top 3 Cloud Computing Value Propositions

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Private Cloud

1. All about control

1. Costs

2. Deployment Strategy (Roadmap)

3. Timeline

4. Many more….

2. Less security concerns – everything “inside” the firewall

3. Does not need a constant and reliable connection to the Internet

Top 3 Cloud Computing Value Propositions

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Public Cloud

1. Much more control:

1. Over costs

2. Roadmap

3. Timeline

1. No need to build, just buy service(s). Can lead to leaner and agile SDLC.

2. Financial model shift – to Op Ex. from Cap Ex.

3. Scale capacity linearly as business grows.

Cloud Computing Value Propositions

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Hybrid Cloud

1. Mix and Match Computing Services, as applicable

2. Leverage existing assets and infrastructure.

3. Good balance between control and trying a new paradigm


Cloud Computing Use Cases

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Cloud Computing Use Cases Matrix

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Use Case Segment Public Private Hybrid

1 Seasonal Capacity Enterprise IaaS, PaaS IaaS, PaaS IaaS, PaaS

2 Financial Model (Opex. Vs. CapEx)

Enterprise IaaS, PaaS, SaaS IaaS, PaaS, SaaS

IaaS, PaaS, SaaS

3 Non-Core Competency Enterprise IaaS, PaaS, SaaS IaaS, PaaS, SaaS

IaaS, PaaS, SaaS

4 Outsourcing Enterprise IaaS, PaaS, SaaS IaaS, PaaS, SaaS

IaaS, PaaS, SaaS

5 Short Life Cycle Projects Enterprise IaaS, PaaS IaaS, PaaS IaaS, PaaS

6 Disaster Readiness Enterprise IaaS, PaaS IaaS, PaaS IaaS, PaaS

7 Massively Scalable Computing Enterprise IaaS, PaaS IaaS, PaaS IaaS, PaaS

8 Infrastructure Consolidation Enterprise IaaS, PaaS, SaaS IaaS, PaaS, SaaS

IaaS, PaaS, SaaS

9 Universal Access Consumer Pictures, Videos, other media

N/A N/A

10 Data Center Real Estate/Capacity Management

Enterprise IaaS, PaaS IaaS, PaaS IaaS, PaaS

Cross-Referenced by Segment, Delivery Model

Cloud Computing Value Drivers Why go Cloud ?

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Cloud Computing Use Cases Value Drivers

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Use Case Top 3 Business and Technology Drivers

1 Seasonal Capacity Capacity Gap and Duration

Application and Infrastructure Architecture

Total Cost

2 Financial Model Cash Flow Cost of Borrowing Total Cost

3 Non-Core Competency Organizational Direction Existing On-Premise Investment Application Portfolio

4 Outsourcing Organizational Direction Application Architecture Total Cost

5 Short Life Cycle Projects Capacity Gap and Duration

Application Architecture and Integration Cost

Total Cost

6 Disaster Readiness Degree of Business Continuity Desired

Recovery Time Objectives (RPO/RTO)

Total Cost

7 Massively Scalable Computing

Capacity Gap and Usage Pattern (s)

Application and Infrastructure Architecture

Total Cost

8 Infrastructure Consolidation

Existing Footprint Economies of Shared Infrastructure Total Cost

9 Universal Access Number of Devices Application Portability Total Cost

10 Data Center Real Estate/Capacity Management

Existing Footprint Organizational Direction Relates to #3 and #4

Calculating Cloud Total Cost of Ownership (TCO)

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Total Cost of Ownership – Page I

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For a Business evaluating a move to Cloud

Cost Item Category On Premise (Private Cloud)

Public Cloud Hybrid Cloud

1 Server Hardware Infrastructure Y Usage Based **

2 Storage Hardware Infrastructure Y Usage Based **

3 Security Hardware Infrastructure Y Usage Based **

4 Security Software Licensing Software Y Usage Based **

5 Security Software Maintenance Software Y Usage Based **

6 Networking Hardware Infrastructure Y Usage Based **

7 Networking Software Infrastructure Y Usage Based **

8 Datacenter Facility Facility Y Usage Based **

9 Utilities and Power Facility Y Usage Based **

10 Data Transfer Infrastructure N Y** **

11 Server Software Licensing Infrastructure Y ** **

12 Server Software Maintenance Software Y ** **

13 Dev Platform Licensing Software Y* Y * **

14 Dev Platform Maintenance Software Y* Y* **

*Open Source Products typically do not carry licensing costs ** Depends on Configuration

Total Cost of Ownership – Page II

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15 Applications Licensing Software Y Usage Based ** **

16 Applications Maintenance Software Y Usage Based ** **

17 Data Center Staff People Y N **

18 Server Administration People Y N **

19 Network Administration People Y N** **

20 Security Administration People Y N** **

21 Storage Administration People Y N** **

22 Platform (Database, Middleware Administration)

People Y Y Y

23 Application Developer(s) – several technologies

People Y Y Y

24 Project Management People Y Y Y

25 Architecture - Infrastructure People Y N* **

26 Architecture - Technology People Y N* **



Total Cost of Ownership – Page III

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27 Architecture - Application People Y Y **

28 Architecture Integration and Middleware

People Y Y **

29 Architecture – Cloud People Y Y Y

30 Architecture - Enterprise People Y Y **

31 Operations (IT, Business etc.) People Y Y** **

32 Cloud Integration People/Software N N** Y

33 Testing Software (Licensing) Software Y Usage Based** **

34 Testing Software (Maintenance)

Software Y Usage Based** **

35 Testing Life Cycle (Project) People Y Y **

36 Business Process Engineers/Analysis

People Y Y Y



Key Takeaways

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1. Cloud Computing Use Cases are driven by a combination of business and technology considerations

2. Total Cost of Ownership has several inputs

3. A Cloud Computing Business Case needs to include several inputs, including cost, business direction and key value drivers in helping decide a complex decision.

Contact Information

30

www.linkedin.com/in/ronbatra

@ronbatra

[email protected]

+15129348659

http://networkingexchangeblog.att.com/

SAVE THE DATE!

COLLABORATE 13

April 7-11, 2013

Colorado Convention Center

Denver, Colorado

http://collaborate13.ioug.org

http://collaborate13.ioug.org/

AT&T Cloud Architect

© 2012 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are the property of their respective owners. This document is not an offer, commitment, representation or warranty by AT&T and is subject to change.

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