presentation at fsf in apr'10

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Situation normal, everything must change

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Page 1: Presentation at FSF in Apr'10

Situation normal, everything must

change

Page 2: Presentation at FSF in Apr'10

Simon

Wardley

Page 3: Presentation at FSF in Apr'10
Page 4: Presentation at FSF in Apr'10

DANGER!Will Robinson

DANGER!

Page 5: Presentation at FSF in Apr'10

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

Page 6: Presentation at FSF in Apr'10

Pain

Page 7: Presentation at FSF in Apr'10

No. Slides

Pain

Page 8: Presentation at FSF in Apr'10

No. Slides

Pain

OK

10 slides

Page 9: Presentation at FSF in Apr'10

No. Slides

Pain

OK

Severerisk of harm

182 slides

Page 11: Presentation at FSF in Apr'10

Cloud Computing?

Page 13: Presentation at FSF in Apr'10

It’s like computers on the

internet, innit.

Page 15: Presentation at FSF in Apr'10

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

Page 16: Presentation at FSF in Apr'10

Disruptive shift of the computing stack to online

services.

Page 17: Presentation at FSF in Apr'10

It’s like computers on the

internet, innit.

Page 19: Presentation at FSF in Apr'10

http://www.flickr.com/photos/rainbowproject/3928445074/

£10,000 please.

Page 20: Presentation at FSF in Apr'10
Page 21: Presentation at FSF in Apr'10
Page 23: Presentation at FSF in Apr'10

67 definitions

Page 25: Presentation at FSF in Apr'10

No. Slides

Pain

OK

Severerisk of harm

182 slides

Page 26: Presentation at FSF in Apr'10

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")

Page 27: Presentation at FSF in Apr'10

No definition

Page 28: Presentation at FSF in Apr'10

Commoditisation

Page 29: Presentation at FSF in Apr'10

Commoditisation

What is Cloud

Page 30: Presentation at FSF in Apr'10

Commoditisation

What is Cloud

Cloud Myths

Page 31: Presentation at FSF in Apr'10

Ubi

quity

Page 32: Presentation at FSF in Apr'10

Certainty

Ubi

quity

Page 33: Presentation at FSF in Apr'10

Certainty

Ubi

quity

Page 34: Presentation at FSF in Apr'10

Certainty

Ubi

quity

Page 35: Presentation at FSF in Apr'10

Innovation

Certainty

Ubi

quity

Page 36: Presentation at FSF in Apr'10

Commodity

Certainty

Ubi

quity

Page 37: Presentation at FSF in Apr'10

Certainty

Ubi

quity

Utility Services

Page 38: Presentation at FSF in Apr'10

Innovation of early lists, 1980.

Certainty

Ubi

quity

Page 39: Presentation at FSF in Apr'10

Custom built, DB MarketingMid 80s

Certainty

Ubi

quity

Page 40: Presentation at FSF in Apr'10

ProductEarly 90s

Certainty

Ubi

quity

Page 41: Presentation at FSF in Apr'10

Utility Services of Salesforce

Certainty

Ubi

quity

Page 42: Presentation at FSF in Apr'10

Product

Custom builtInnovation

Commodity

Utility Services

Certainty

Ubi

quity

Page 43: Presentation at FSF in Apr'10

Innovation of Z3, 1941

Certainty

Ubi

quity

Page 44: Presentation at FSF in Apr'10

Custom Built LEO, 1946

Certainty

Ubi

quity

Page 45: Presentation at FSF in Apr'10

Products IBM 650, 1954

Certainty

Ubi

quity

Page 46: Presentation at FSF in Apr'10

Commodity Hardware

Certainty

Ubi

quity

Page 47: Presentation at FSF in Apr'10

Utility services of Amazon EC2

Certainty

Ubi

quity

Page 48: Presentation at FSF in Apr'10

Innovation of W. H. Wollaston, 1821

Certainty

Ubi

quity

Page 49: Presentation at FSF in Apr'10

Early Products, Hippolyte Pixii, 1830s

Certainty

Ubi

quity

Page 50: Presentation at FSF in Apr'10

Certainty

Ubi

quity Utility Services

of the National Grid

Page 51: Presentation at FSF in Apr'10

Certainty

Ubi

quity

Page 52: Presentation at FSF in Apr'10

Certainty

Ubi

quity

Commod

itisati

on

Page 53: Presentation at FSF in Apr'10
Page 57: Presentation at FSF in Apr'10

Demand

Certainty

Ubi

quity

Page 61: Presentation at FSF in Apr'10

Demand

Improvement

Certainty

Ubi

quity

Page 62: Presentation at FSF in Apr'10

Demand

ImprovementCo

mmoditis

ation

Certainty

Ubi

quity

Page 63: Presentation at FSF in Apr'10

Product

Custom builtInnovation

Commodity

Certainty

Ubi

quity

Utility Service

Page 64: Presentation at FSF in Apr'10

Certainty

Ubi

quity Early Utility

Westinghouse,1890s

Product Hippolyte Pixii,

1830s

Page 65: Presentation at FSF in Apr'10

Certainty

Ubi

quity

Economies of scale(volume operations)

Page 66: Presentation at FSF in Apr'10

Certainty

Ubi

quity

Economies of scale(volume operations)

Focus on core (outsource)

Page 67: Presentation at FSF in Apr'10

Certainty

Ubi

quity

Economies of scale(volume operations)

Focus on core (outsource)

Pay per use (utility)

Page 68: Presentation at FSF in Apr'10

Speed (componentisation)

Economies of scale(volume operations)

Focus on core (outsource)

Pay per use (utility)

Certainty

Ubi

quity

Page 69: Presentation at FSF in Apr'10

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.

Page 70: Presentation at FSF in Apr'10

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

newnew

Page 71: Presentation at FSF in Apr'10

Joseph A. Schumpeter (1883 - 1950)

Creative Destruction

Page 72: Presentation at FSF in Apr'10

Erodin

g Valu

e

Certainty

Ubi

quity

Page 73: Presentation at FSF in Apr'10

Erodin

g Valu

e

EnablesInnovation

Certainty

Ubi

quity

Page 74: Presentation at FSF in Apr'10

Electricity

Hardware

Internet

Certainty

Ubi

quity

Page 75: Presentation at FSF in Apr'10

Electricity

Hardware

Internet

Search

EnablesInnovation

Certainty

Ubi

quity

Page 76: Presentation at FSF in Apr'10

Theory of Hierarchy Componentisation

Herbert A. Simon (1916 - 2001)

Page 77: Presentation at FSF in Apr'10

Rate of evolution of a system is

dependant upon the organisation of its subsystems.

Herbert A. Simon (1916 - 2001)

Page 78: Presentation at FSF in Apr'10

Application

Page 79: Presentation at FSF in Apr'10

Database Framework Messaging

Application

Page 80: Presentation at FSF in Apr'10

Database Framework

Operating System

CPU Memory I/O

Messaging

Application

Virtualisation

Page 81: Presentation at FSF in Apr'10

Database Framework

Operating System

CPU Memory I/O

Messaging

Application

Virtualisation

Page 82: Presentation at FSF in Apr'10

CPU

Application

Orders of Magnitude

Page 83: Presentation at FSF in Apr'10

AcceleratesInnovation

Certainty

Ubi

quity

Page 84: Presentation at FSF in Apr'10

InnovationFlemming Valve, 1904

Certainty

Ubi

quity

Page 85: Presentation at FSF in Apr'10

ProductsIntel 4004, 2300 Transistors, 1971

Certainty

Ubi

quity

Page 86: Presentation at FSF in Apr'10

Busicom

Page 87: Presentation at FSF in Apr'10

MCS-4

Busicom

Page 88: Presentation at FSF in Apr'10

MCS-4

Busicom

Co-Evolution

Page 89: Presentation at FSF in Apr'10

> 1,000,000,000,000,000,000

1

Greater consumption

Page 90: Presentation at FSF in Apr'10

$700

0.0002c

Reduced cost per unit

Page 91: Presentation at FSF in Apr'10

Certainty

Ubi

quity

Speed (componentisation)

Economies of scale(volume operations)

Focus on core (outsource)

Pay per use (utility)

Page 92: Presentation at FSF in Apr'10

Reduced cost per unit

Greater consumption

Accelerated Innovation

Certainty

Ubi

quity

Page 93: Presentation at FSF in Apr'10

Disruptive

Certainty

Ubi

quity

Page 94: Presentation at FSF in Apr'10

Transition

Certainty

Ubi

quity

Page 95: Presentation at FSF in Apr'10

Transition

Confusion

Certainty

Ubi

quity

Page 96: Presentation at FSF in Apr'10

Transition

Governance

Confusion

Certainty

Ubi

quity

Page 97: Presentation at FSF in Apr'10

Transition

Governance

Trust

Confusion

Certainty

Ubi

quity

Page 98: Presentation at FSF in Apr'10

Transition

Governance

Trust

Security

Confusion

Certainty

Ubi

quity

Page 99: Presentation at FSF in Apr'10

Transition

Governance

Trust

Security

Confusion

Transparency

Certainty

Ubi

quity

Page 100: Presentation at FSF in Apr'10

Outsourcing

Certainty

Ubi

quity

Page 101: Presentation at FSF in Apr'10

Suitability

Outsourcing

Certainty

Ubi

quity

Page 102: Presentation at FSF in Apr'10

Competition

Suitability

Outsourcing

Certainty

Ubi

quity

Page 103: Presentation at FSF in Apr'10

Competition

Lock-in

Suitability

Outsourcing

Certainty

Ubi

quity

Page 104: Presentation at FSF in Apr'10

Competition

Lock-in

Second Source

Suitability

Outsourcing

Certainty

Ubi

quity

Page 105: Presentation at FSF in Apr'10

Competition

Lock-in

Second Source

Control

Suitability

Outsourcing

Certainty

Ubi

quity

Page 106: Presentation at FSF in Apr'10

Transition

Governance

Trust

Confusion

Transparency

Competition

Lock-in

Second Source

Control

Suitability

Outsourcing

Security

Certainty

Ubi

quity

Page 107: Presentation at FSF in Apr'10

Recap

Page 108: Presentation at FSF in Apr'10

Product

Custom builtInnovation

Commodity

Utility Services

Certainty

Ubi

quity

Page 109: Presentation at FSF in Apr'10

Demand

Improvement

Certainty

Ubi

quity

Page 110: Presentation at FSF in Apr'10

Certainty

Ubi

quity

Page 111: Presentation at FSF in Apr'10

Certainty

Ubi

quity

Speed (componentisation)

Economies of scale(volume operations)

Focus on core (outsource)

Pay per use (utility)

Page 112: Presentation at FSF in Apr'10

Reduced cost per unit

Greater consumption

Accelerated Innovation

Certainty

Ubi

quity

Page 113: Presentation at FSF in Apr'10

Disruptive

Certainty

Ubi

quity

Page 114: Presentation at FSF in Apr'10

Transition

Governance

Trust

Confusion

Transparency

Competition

Lock-in

Second Source

Control

Suitability

Outsourcing

Security

Certainty

Ubi

quity

Page 115: Presentation at FSF in Apr'10

Commoditisation

What is Cloud

Page 116: Presentation at FSF in Apr'10

Certainty

Ubi

quity

Page 117: Presentation at FSF in Apr'10

Certainty

Ubi

quity

Page 118: Presentation at FSF in Apr'10

Widespread(Demand)

Feature Complete(Improvement)

Certainty

Ubi

quity

Page 119: Presentation at FSF in Apr'10

Certainty

Ubi

quity

Page 120: Presentation at FSF in Apr'10

Database Framework

Operating System

CPU Memory I/O

Messaging

Application

Virtualisation

Page 121: Presentation at FSF in Apr'10

Database Framework

Operating System

Memory I/O

Messaging

Application

Virtualisation Infrastructure

Page 122: Presentation at FSF in Apr'10

Database Framework

Operating System

Memory I/O

Messaging

Application

Virtualisation Infrastructure

Platform

Page 123: Presentation at FSF in Apr'10

Database Framework

Operating System

Memory I/O

Messaging

Application

Virtualisation Infrastructure

Platform

Software

Page 124: Presentation at FSF in Apr'10

Infrastructure

Platform

Software

... as aProduct

Certainty

Ubi

quity

Page 125: Presentation at FSF in Apr'10

Infrastructure

Platform

Software

... as aService

Certainty

Ubi

quity

Page 126: Presentation at FSF in Apr'10

Certainty

Ubi

quity

Speed (componentisation)

Economies of scale(volume operations)

Focus on core (outsource)

Pay per use (utility)

Page 127: Presentation at FSF in Apr'10

Reduced cost per unit

Greater consumption

Accelerated Innovation

Certainty

Ubi

quity

Page 128: Presentation at FSF in Apr'10

New server

64 node cluster

Previous Time(mins)

72,000

130,000

Page 129: Presentation at FSF in Apr'10

New server

64 node cluster

Previous Time(mins)

Cloud Time(mins)

72,000

130,000

7

15

Page 130: Presentation at FSF in Apr'10

Disruptive

Certainty

Ubi

quity

... as aProduct

Page 131: Presentation at FSF in Apr'10

Transition

Governance

Trust

Confusion

Transparency

Competition

Lock-in

Second Source

Control

Suitability

Outsourcing

Security

Certainty

Ubi

quity

Page 132: Presentation at FSF in Apr'10

Infrastructure

Platform

Software

... as aProduct

... as aService

Certainty

Ubi

quity

Page 133: Presentation at FSF in Apr'10

Commoditisation

What is Cloud

Cloud Myths

Page 134: Presentation at FSF in Apr'10

http://www.flickr.com/photos/rainbowproject/3928445074/

You have choice!

Page 135: Presentation at FSF in Apr'10

Market

Certainty

Ubi

quity

You

Page 136: Presentation at FSF in Apr'10

Market

Competitive Gap

Certainty

Ubi

quity

You

Page 137: Presentation at FSF in Apr'10

Market

Speed to market

Economies of scale

Focus on core

Pay per use

Reduced cost

Accelerated innovation

Certainty

Ubi

quity

You

Page 141: Presentation at FSF in Apr'10

Pres

sure

Certainty

Ubi

quity Market

You

Page 142: Presentation at FSF in Apr'10

“Red Queen Hypothesis”

The need to constantly evolve in order to stand

still relative to a surrounding ecosystem

Prof. Van Valen

Page 143: Presentation at FSF in Apr'10

vsBenefits Risks

Page 144: Presentation at FSF in Apr'10

http://www.flickr.com/photos/rainbowproject/3928445074/

It’s Green!

It’ll reduce your IT spend.

Page 145: Presentation at FSF in Apr'10

Economies of scale(volume operations)

Pay per use (utility)

Reduced cost (per unit)

Certainty

Ubi

quity

Page 146: Presentation at FSF in Apr'10

efficiency

Page 147: Presentation at FSF in Apr'10

Accelerated Innovation

Certainty

Ubi

quity

Page 148: Presentation at FSF in Apr'10

consumption

efficiency

Page 149: Presentation at FSF in Apr'10

William Stanley Jevons, 1865

“Jevons Paradox”

Technological progress that increases the

efficiency with which a resource is used, tends to

increase the rate of consumption of that

resource.

Page 150: Presentation at FSF in Apr'10

http://www.flickr.com/photos/rainbowproject/3928445074/

Standards don’t matter

Who cares about standards?

Page 151: Presentation at FSF in Apr'10

Henry Maudslay(1771 - 1831)

Page 152: Presentation at FSF in Apr'10
Page 153: Presentation at FSF in Apr'10

Payroll

HR Systems

CRM

ERP

Infrastructure

Finance & Accounting

Sales Automation

Page 154: Presentation at FSF in Apr'10

Certainty

Ubi

quity Cost of doing

business PayrollHR

Page 155: Presentation at FSF in Apr'10

Certainty

Ubi

quity Cost of doing

business

Min. Strategic value

PayrollHR

Page 156: Presentation at FSF in Apr'10

Certainty

Ubi

quity

PayrollHR

Why are we spending $600M p.a. on customising

stuff has no strategic value?

Page 157: Presentation at FSF in Apr'10

http://www.flickr.com/photos/rainbowproject/3928445074/

Gain competitive advantage by customising your

payroll system

Page 158: Presentation at FSF in Apr'10

Certainty

Ubi

quity

Way back when ...

Now

Page 159: Presentation at FSF in Apr'10

Certainty

Ubi

quity

Standardised Service!

Page 160: Presentation at FSF in Apr'10

Certainty

Ubi

quity

Marketplace

Standardised Service!

Page 161: Presentation at FSF in Apr'10

Concept

Suitability

Technology

Attitude

Page 162: Presentation at FSF in Apr'10

“The challenge of the Computer Utility” Douglas Parkhill

1966

Page 163: Presentation at FSF in Apr'10

http://www.flickr.com/photos/rainbowproject/3928445074/

All IT is the same!

SLAs are what count!

Standards don’t matter

It’s about technology

Only public cloud is cloud computing!

Cloud is an Innovation

Page 164: Presentation at FSF in Apr'10

Public

Private

Certainty

Ubi

quity

Page 165: Presentation at FSF in Apr'10

Hybrid

Certainty

Ubi

quity

Page 166: Presentation at FSF in Apr'10

Transition

Governance

Trust

Security

Certainty

Ubi

quity

Page 167: Presentation at FSF in Apr'10

Easy Switching

(low exit)

Page 168: Presentation at FSF in Apr'10

Alternatives (functioning

market)

Page 169: Presentation at FSF in Apr'10

Access(Open API / Data formats)

Page 170: Presentation at FSF in Apr'10

Interop.(running code,

reference model)

Page 171: Presentation at FSF in Apr'10

Proprietary Open Source

Page 172: Presentation at FSF in Apr'10

Public cloud

Amazon EC2

Ubuntu Server Edition

Physical (bare bones)

Cloud Controller

Node Controller

KVM Hyp.Web UI

VMEucalyptus

Private cloud

ubuntu.com/cloud

EC2 API

Page 173: Presentation at FSF in Apr'10

Recap

Page 174: Presentation at FSF in Apr'10

Infrastructure

Platform

Software

... as aProduct

... as aService

Certainty

Ubi

quity

Page 175: Presentation at FSF in Apr'10

Disruptive

Certainty

Ubi

quity

... as aProduct

Page 176: Presentation at FSF in Apr'10

Certainty

Ubi

quity

Speed (componentisation)

Economies of scale(volume operations)

Focus on core (outsource)

Pay per use (utility)

Page 177: Presentation at FSF in Apr'10

http://www.flickr.com/photos/rainbowproject/3928445074/

All IT is the same! SLAs are

what count!

Standards don’t matter

It’s about technology

Only public cloud is cloud computing!

Cloud is an Innovation

You have choice

It’s green and will save you money

Page 178: Presentation at FSF in Apr'10

vsBenefits Risks

Page 179: Presentation at FSF in Apr'10

Product

Custom builtInnovation

Commodity

Utility Services

Certainty

Ubi

quity

Page 180: Presentation at FSF in Apr'10

Proprietary Open Source

Page 181: Presentation at FSF in Apr'10

Situation normal, everything must

change