ISEC 2008 1st India Software Engineering Conference - Feb 19-22 2008

-- Santonu Sarkar

Bangalore Cloud Computing Flexible access to a pool of remote computing resources across the internet (intranet)

•Computing can be more readily be divided (virtualization) •Doled out on demand, and combined •Naturally coupled with a pay-per-use business model (“utility computing”). •“Web Scale Computing” is a similar term Hardware Cloud Desktop Cloud

Docs & spreadsheet

Services Cloud SaaS Cloud (as of today)

2 ISEC 2008, Feb 19-22 2008 What’s in The Cloud?

Computing Requests from the Internet (Intranet) a set of technologies to create a virtual computing infrastructure by allowing division of physical assets (processing power, storage and network bandwidth) into virtual machines (e.g., VMware virtual server) A technology for provisioning and load balancing that doles out the virtual Elastic Computing infrastructure on demand (e.g., Amazon’s EC2)

Virtualized Computing Resources

VM, VM, VM

Grid Computing

A computing architecture in which a large number of individual computers work in a pool Physical Computing Resources and in parallel (e.g., Google’s Map-Reduce) Remote Computing Center ISEC 2008, Feb 19-22 2008 Clouds in Existence Today

ƒ Amazon External Internet Cloud: Coupa- eProcurement company uses à Simple Storage Service (S3) – open source SaaS, S3 & EC2- entry $0.15c/month per a gig within 6 weeks!! à Elastic Computing Cloud (EC2) – SmugMug: Online photo sharing – uses pay per use via on demand VMs- S3 $0.10 VM instance/hour. JamGlue: Online music mixing (S3,EC2) PowerSet: Natural language Search ƒ Google’s Proprietary Internal WebMail.us: Online mail Cloud à Estimated to harness 100,000’s of servers. Google is also said to be preparing to offer an external storage cloud. Very attractive for SMBs and Startups ƒ IBM “Blue Cloud” Offering Large enterprise will be for Enterprise Data Center slow to adopt Cloud Creation: à Combines data-intensive Grid virtualization (via IBM offering), and elastic computing (via Tivoli)

ISEC 2008, Feb 19-22 2008 SaaS and Cloud Computing

ƒ Next generation SaaS promises everything as a service over the internet ƒ Cloud computing started with a similar premise à A computing paradigm where there exists a flexible set of computing resources across the internet

ƒ Distinction getting blurred

à The most prominent example of Infrastructure-as-a- Service is Amazon EC2 (which is a hardware cloud) à RightScale (provides Runtime platform as a Service) makes EC2 a better fit for SaaS, http://blogs.zdnet.com/SAAS/?p=417 à The SaaS cloud is nothing but today’s SaaS 2.0

ISEC 2008, Feb 19-22 2008 Evolution of SaaS- 1.0 to 2.0 •Pricing had to be negotiated with the software vendor SaaS 2.0

•Ability to meet SaaS Application •Better Support customer needs 1.0 - •Operational EfficiencyPlatform- was limited by the ASP centric •Newer and based centricon SOA 3rd party software SaaS •Flexible Pricing - no additional SaaS providers own •Operation third-party to negotiate with providers the software efficiency was sourced largely dictated by software the software from 3rd party Salesforce.co •Thus, it was software m has 44% of Technology hard to providers the hosted Frustrated with Maturity differentiate CRM market Installed App their •High bandwidth •High TCO •Services operations with •Deployment and Architecture their Integration Problems •Flexible •Slow response to requests competitors Integration 2salesforce.com Press Release, “AMR Research Ranks Salesforce.com as Market •Rich media UI 6 Share Leader with 44% of Hosted Customer Management Market ,” Aug 21, 2006 ISEC 2008, Feb 19-22 2008 SaaS 3.0-“everything as a service” over the Internet

SaaS 3.0 Application-as-a- Vendors provide Service (SaaS 2.0) platforms for development, run- Microsoft Exchange Server Integration- Oracle CRM time, and as-a- service SAP on Demand integration as a Salesforce.com SaaS 2.0 A business SaaS 1.0 Application- service. centric solution is ASP Runtime-Platform-as-a- Development- SaaS providers own created by the software SaaS providers Greater ability to SIs/customers Service Platform-as-a- sourced software from customize software integrating on- 3rd party software based on customer providers needs premise, service Ability to meet their can customize the customers’ needs was More flexible pricing limited by the third- partner and Provides runtime resources party software Key Providers: SaaS offerings SalesForce.com NetSuite SaaS and infrastructure for SaaS using the applications platform. applications

Key Providers: OpSource offers SalesForce.com Infrastructure provisioning NetSuite, Oracle, with 100% uptime guarantees Microsoft to SaaS providers Infrastructure-as-a-Service Similar Hardware Cloud to 7 ISEC 2008, Feb 19-22 2008 Application-as-a-Service Developm Integration- ent- as-a- Platform- service as-a- service Development-Platform-as-a- Runtime-Platform-as-a-Service Infrastructure-as-a-Service Service

KEY PLAYERS SalesForce.com Dreamfactory NetSuite: SuiteFlex Oracle SaaS Platform Microsoft SaaS Platform

Picture Source: www.dreamfactory.com/webmeetingmashup/index.html

8 ISEC 2008, Feb 19-22 2008 Potential Benefits of Cloud Computing

For Infrastructure provider For Enterprise

ƒ Reduce capital expenditures through infrastructure pooling and improved ƒ Pay as you go and focus on core utilization business ƒ Reduce operating expenditures ƒ Pay only for what you need- useful à Centralize operations when the service demand à Increase admin efficiency fluctuates à Standardize on best practices ƒ Reliability – Amazon Cloud claims à Automate processes over time 99% availability with no loss* ƒ Improve service levels ƒ Fault Tolerance – clouds built with à Standardize offerings constant component failure à Appropriate service level for applications presumed à Can shape the software for better operational efficiency

* The cloud computing model can also be adopted within a large organization where different departments are the consumers of the central cloud computing infrastructure (for example IBM Blue Cloud would support) ISEC 2008, Feb 19-22 2008 Adoption Issues

ƒ Security and Transparency – storing enterprise data external to an enterprise and transparency of where the data is being stored?

ƒ Meeting various Non functional SLAs – Reliability? Performance?

ƒ Inefficiencies of Generic Computing à More generic Æ more complex Æ less understandable, performance drop à Google needs a specialized hardware/software cloud to optimize its enormous search problem

ƒ Fixed Cost Advantage vs Variable Rental Cost : No clear answer à For bootstrapping and for resource on-demand – Yes. But should we continue to rent when the demand stabilizes?

ƒ How easy is it to migrate? ƒ Large enterprises have heavy existing investments in internal non-virtualized data centers. Transition to external cloud will not be easy

ISEC 2008, Feb 19-22 2008 Trends to Watch for- Hypothesis

ƒ Cloud Computing- Coupling to SaaS- Natural Partners

ƒ Subservience to SaaS- Customer chooses SaaS, leaving CC to SaaS provider

ƒ Large Enterprises Prefer Making Part of Outsourcing Deals à Based on IDC Study July 2007*

ƒ Favored for Emerging Market Entry – given difficulty of maintaining IT infrastructure (electricity etc) in some emerging markets, globalizing companies may prefer provide services via cloud rather then via in-country physical data centers

ISEC 2008, Feb 19-22 2008 The Bigger Picture: A General Cloud Trend

ƒ Clouds – the trend of decoupling of the source of consumption of IT from the source of production extends beyond infrastructure (the “Computing Cloud”): à Software Clouds – SaaS à Desktop Clouds – Google, as well as various startups are making equivalents of the Office suite available over the net. These may have economies for non mobile workers who have always on internet connections (e.g., call centers). à Labor Clouds – Amazon is also pioneering human labor as a service from the cloud where one can request a service in code (like article translation or image indexing) where the “computing device” on the other end of the service is a human. Trends like crowd sourcing and open source development are part of this story as well. ƒ New Innovative Business based on SaaS/CC: Coupa, MuleOnDemand ƒ SI partner and SaaS provider- CapGemini-Google to offer Google Apps Premier Edition

ƒ In other words much of what was within the corporate boundary as services is being served up increasingly over the internet. Enterprises will have to integrate internal and external services and decide which services are core and must be internal

ISEC 2008, Feb 19-22 2008 Thank you!

ISEC 2008, Feb 19-22 2008