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Tom Bittman

Private Cloud Computing and The Future of Infrastructure

@GARTNER_INC

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Thomas Bittman

Private Cloud Computing and

The Future of Infrastructure

September 4, 2012

Private Cloud Intentions

Gartner Data Center Conference Poll,

December 2011 Will your enterprise be

pursuing a private cloud

computing strategy by

2014?

(N=150)

Private cloud computing is just past the peak of the hype cycle –

and deployments are increasing significantly in 2012-2013

Yes 78%

Maybe 17%

No 5%

Private Cloud Computing

• The realities of cloud computing are gray.

• Private cloud computing is not simply a technology project.

• Most private cloud services will become hybrid.

• The business case for cloud requires the business.

• Cloud — public or private — isn't right for everything.

• Most large and many midsize enterprises will build private cloud services — but only for appropriate services.

Private Cloud Computing: A form of cloud computing that is used by only one organization, or that ensures that an

organization is completely isolated from others

Cloud Computing: A style of computing where scalable and elastic IT-enabled

capabilities are delivered as a service to customers using Internet technologies

Mind the Gap: Private, Community, Public and Hybrid Cloud Computing

Hybrid cloud service

A cloud computing service composed from the services of a variety

of cloud service providers, or a

combination of private and public cloud services,

and these services are dynamically integrated or brokered to form a single

service offering. ―Sharing‖ is variable, and therefore ―privacy‖ can be

variable.

A private cloud service can be on-premises or off, customer- or provider-managed, customer- or

provider-owned.

Private

Community

Public

Single user or unshared

implementation

Unlimited users with shared

implementation

Limited Users

Cloud Service

The Roadmap Through Private Cloud Computing

Stage 1:

Server Virtualization

• Consolidation

• Capital expense

Stage 2:

Distributed Virtualization

• Flexibility and speed

• Operational expense, automation

• Less downtime

Stage 3:

Private Cloud

• Self-serve agility

• Standardization

• IT as a business

• Usage metering

Stage 4:

Hybrid Cloud

• Cost for peak loads

• Flexibility for peak loads

Stage 5:

Public Cloud

• Capital expense elimination

• Increased flexibility (up and down)

Virtualization and Private Cloud Road Map Plans

Partially

virtualized

8%

Heavily

virtualized

17%

Private

cloud

32%

Hybrid

cloud

47% Gartner Data Center

Conference Poll, December 2011

By 2015, how would you

describe your

virtualization progress

(choose the one most

applicable)?

(N = 104)

Hybrid may be in the future for most customers, but they are

already planning for it.

Stage 2

Stage 3

Stage 4

Stage

1

Gartner Data Center Conference Poll, December 2010

(N = 167)

What are your three biggest challenges in creating a private

cloud computing service?

Private Cloud Computing Challenges

Message: Technology is one of the easiest challenges

Culture

Funding/chargeback model

Management and operations processes

Business/customer relationship

Service description and self-service interface

Technology

Not sure 11

31

36

46

56

62

80

First Choice Second Third

Politics 40

No. 1: Leadership

• From vision to execution

• Synchronizing business and IT

• Get buy-in — staff, leaders

• Ensure funding and resources for project

• Clearing political hurdles

• Driving cultural change

• Create new roles in IT

• Identify and promote new uses

No. 2: Define Services

• Understand: Service requirements, service costs, service offerings,

service level achievement, services obtained elsewhere

• Identify: Services that are (or would be) standard, high-demand,

dynamically scale, and require speed. What are the specific interfaces

and options needed?

• Plan: Where it makes sense, create strategic plans and roadmaps for

individual service offerings – does cloud make sense, and when?

Private cloud services should be services that are

high-volume requests, standard and dynamic

• Re-evaluate: Adjust your offerings and your roadmaps

based on customer demand, and both internal and

external capabilities – are cloud service offerings

improving?

No. 3: Evaluate Alternatives

Ideal for the cloud computing style

Interface and Independence

Nondifferentiator

Static

service

Common, rush

requests

Very separate

from business

Intimacy and Integration

Not destined for cloud computing

Business

differentiator**

Service changes

often

Nonstandard,

customized

Very integrated

with business

Cloud Computing, or Not? Public or Private (or Hybrid)?

IaaS or PaaS or SaaS?

• Security and business risk?

• Compliance?

• Capex versus opex?

• SLAs?

• IaaS: Customized legacy applications

• PaaS: Cloud-enabled unique applications

• SaaS: Common applications

** Note: I can put/build a differentiated service on top of a non-differentiated cloud service.

No. 4: Create Metrics

IT Operations

• Capital expenses

• IT skills/task mix

• IT costs, by service

• Number of manual, rush requests

• Capital equipment utilization rates

IT Operations

• Rate of resource reallocation

IT Operations

• Number of operational errors affecting service delivery

• Customer awareness of service offerings

Economics Quality Agility

Service Users

• Service costs, by business unit

• Variability of usage by deployment

Service Users

• Service-level achievement

• Customer satisfaction

• Service catalog usage

Service Users

• Rate of private cloud service usage

• Speed of service provisioning, change

• Rate that scaling with no intervention

• Number of new uses not feasible before

• Average usage life spans

No. 5: Build a Business Case

Gartner Data Center Conference Poll, December 2011:

What is your main driver in moving to private clouds?

(N = 155)

Agility/ Speed 59%

Quality 3%

Cost 21%

Business Alignment

11%

Enable Hybrid

1%

Don't Know 2%

Defend IT 3%

• Evaluate cost (economic,

skills, risk) versus benefits

(economic, quality, agility)

• Work with the business —

what's important to it?

• Drive experimentation –

new uses of IT

No. 6: Develop a People Plan

• New roles:

• Cloud service architect

• Cloud orchestration specialist

• Cloud service manager

• Cloud infrastructure administrator

• Changing roles:

• IT capacity planners

• Network operating

center/monitoring staff

• Service management process

owners

• Vendor management and/or I&O

procurement specialists

• Service desk analysts

• Communications

• Organization structure

• Matrix, service

• Career paths

• Evaluating performance

• Less hero, more team,

more business impact

No. 7: Develop a Business Management Plan

• Service

development

• Strategy and

planning

• Proactive

innovation

• Funding model

• Reporting and

relationship

• Trusted broker

Enterprise

Private Cloud

Services

Public Cloud

Services

Traditional Services

Public Cloud

Services

IT should become the trusted broker for most/all

IT-based services

Hybrid IT

IT Cloud Services Broker

No. 8: Develop a Technology Plan

Resource

Management

• Resource governor

• Configuration and performance

• Resource security

Service

Management

• Service catalog and service model

• Service-level management

• Vendor/contract/license management

Resources • Physical and virtual resources

• Component managers

Access

Management

• Self-service/programmable interface

• Subscriber management

• Identity and access management

Exte

rnal M

anagem

ent A

PIs

Service

Optimization

• Service governor, policy management

• Optimization engine

• Orchestration, brokerage, federation

The Cloud IaaS Platform Landscape: Primordial Soup

Point Solutions

Abiquo, Adaptive Computing, ASG,

Cloupia, Egenera, Embotics,

enStratus, Gale Technologies,

ManageIQ, Nimbula, NetIQ,

RightScale, ServiceMesh, Zimory

Pros: Often unique and valuable best-

of-breed solutions

Cons: Viability

Traditional IT Operations Management

BMC Software, CA Technologies, HP, IBM

Pros: Rich service and heterogeneous

management capability

Cons: Complexity and lack of resource

management depth

Infrastructure Software Stacks

Citrix, Microsoft, Oracle, Red Hat, VMware

Pros: Foundational stack management (VM,

OS, and/or application)

Cons: Limited to specific stack architecture,

less full service management capability

Open Source

CloudStack, Eucalyptus, OpenStack,

Piston Cloud Computing

Pros: Focused on heterogeneity and

interoperability

Cons: Immature and focused on

resource management

Fabric-Based Infrastructure

Cisco, HP, IBM, VCE

Pros: Leverages flexible hardware

architectures designed for virtualization

Cons: Hardware lock-in

No. 9: Develop an Operational Process Plan

• Think Vertically: Separate ―cloud‖ from ―traditional‖ IT service processes

• Think Speed: Processes customized to services and unnecessary latency eliminated

• Think Change: Dynamic and iterative change, dynamic operations

• Think DevOps: Development and operations relationship, a cloud operating model

No. 10: Start Small, Think Big

• Learn by experimentation (on- or off-premises)

• Monitor usage, get feedback

• Proactive (but controlled) expansion

• Build in learning

Recommendations: Ten Steps to Building Private Cloud Services

No. 8 Develop a Technology Plan:

Fabrics, hybrid, interoperability,

cloud management platform

No. 9 Develop a Process Plan:

Speed, fit to purpose, DevOps

No. 7 Develop a Business

Management Plan:

Funding model, Hybrid IT

No. 1 Leadership:

Buy-in, culture, politics, new

usages, vision

No. 2 Define Services:

Automatable, need speed,

high-volume, with business

No. 6 Develop a People Plan:

Skills, organization, buy-in

No. 10 Start Small, Think Big:

Build in learning, proactive

expansion

No. 5 Build a Business Case:

Proactively evaluate cost and

benefits, with business

No. 4 Create Metrics:

Economics, quality, agility

No. 3 Evaluate Alternatives:

Non-IaaS, public, noncloud

Related Gartner Research

Five Things That Private Cloud is Not Thomas Bittman (G00238288)

Top Five Trends for Private Cloud Computing Thomas Bittman (G00230746)

Private Cloud Computing: Target Services That Need Agility Thomas Bittman (G00230747)

Design Your Private Cloud With Hybrid in Mind Thomas Bittman (G00230748)

The 10 Fundamentals of Building a Private Cloud Service Thomas Bittman (G00213050)

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