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19-01-2012

Your business technologists. Powering progress | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture

The Context
Conditions of too much uncertainty

Buzzword + hype
own convenience (even us)

Cloud is young and complex concept


lack of history it is still changing

Markets = non-additive ecosystems


dynamic, complex and interrelated credible/workable comparisons? everyone claims to be a leader
2 | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture

Our journey

The Foundations

Decomposing Adoption

Looking Forward

Inside Technology

http://www.flickr.com/photos/esparta/4111703709/

3 | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture

The Foundations Definition


What it IS Cloud Computing

The Transition of the IT Industry from a Product-based to a Service-based Economy


4 | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture
Source: How Cloud Vendors lie to you and How they steal your money Simon Wardley. IPExpo, London. Oct 13, 2009. http://bit.ly/y2SCoi

The Foundations Definition


What it IS NOT Cloud Computing

The Transition of the IT Industry from a Product-based to a IaaS, PaaS or SaaS Virtualization + Data Center Automation Service-based Economy
Rebranding what we currently do Outsourcing
Source: How Cloud Vendors lie to you and How they steal your money Simon Wardley. IPExpo, London. Oct 13, 2009. http://bit.ly/y2SCoi

5 | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture

The Foundations Definition


Essential Characteristics

Economy Pay-per-use Productivity Built-to-Stock Commodities Infraestructure Scale-Out Components Resource-Pools Architecture Multi-Tenancy Security for Failure Convergence Agility Designed Delivery Simplicity On-Demand
Rapid Provisioning

Automation

Market Competition Economies

of Scale

Elasticity

Self-Service

6 | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture

The Foundations Commoditization


It is the Life Cycle of any Object and/or Business Activity
Source: http://web.me.com/swardley/Site/BP180211Cycle.jpg

Ubiquity

Utilities

Commodity Product
Services

Custom Built Innovation


7 | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture

Certainty
Source: How Cloud Vendors lie to you and How they steal your money Simon Wardley. IPExpo, London. Oct 13, 2009. http://bit.ly/y2SCoi

The Foundations Commoditization


Examples The Electricity
Source: http://web.me.com/swardley/Site/BP180211Cycle.jpg

Ubiquity

National Grid Westinghouse (1890)

Hippolyte Pixii (1830)

Wollaston (1821)
8 | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture

Certainty

Source: How Cloud Vendors lie to you and How they steal your money Simon Wardley. IPExpo, London. Oct 13, 2009. http://bit.ly/y2SCoi

The Foundations Commoditization


Examples The Journalism
Source: http://web.me.com/swardley/Site/BP180211Cycle.jpg

Ubiquity

Blogs Television Radio Printed Press

Twitter

Towncrier
9 | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture

Certainty

Source: How Cloud Vendors lie to you and How they steal your money Simon Wardley. IPExpo, London. Oct 13, 2009. http://bit.ly/y2SCoi

The Foundations Commoditization


Examples The CRM
Source: http://web.me.com/swardley/Site/BP180211Cycle.jpg

Ubiquity

SalesForce.com (2002)

Siebel (1994)

Marketing Databases (80s) Customer Lists (80s) Certainty


10 | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture
Source: How Cloud Vendors lie to you and How they steal your money Simon Wardley. IPExpo, London. Oct 13, 2009. http://bit.ly/y2SCoi

The Foundations Commoditization


Examples The IT Infrastructure
Source: http://web.me.com/swardley/Site/BP180211Cycle.jpg

Ubiquity

Amazon EC2

Commoditized HW

IBM 650 (1954) LEO (1949) Z3 (1941)


11 | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture

Certainty

Source: How Cloud Vendors lie to you and How they steal your money Simon Wardley. IPExpo, London. Oct 13, 2009. http://bit.ly/y2SCoi

The Foundations Commoditization


a transition, an evolution
Source: http://web.me.com/swardley/Site/BP180211Cycle.jpg

Ubiquity

as a Service
Utilities

Commodity

as a Product
Product
Services

Custom Built Innovation


12 | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture

Certainty
Source: How Cloud Vendors lie to you and How they steal your money Simon Wardley. IPExpo, London. Oct 13, 2009. http://bit.ly/y2SCoi

The Foundations Commoditization


driven by market competition
Source: http://web.me.com/swardley/Site/BP180211Cycle.jpg

Demand for New Stuff

Demand Competition

Ubiquity++

Ubiquity

Funcionality++

Improvements on Current Stuff Offer Competition


13 | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture

Certainty

Source: How Cloud Vendors lie to you and How they steal your money Simon Wardley. IPExpo, London. Oct 13, 2009. http://bit.ly/y2SCoi

The Foundations Commoditization


wich splits markets among Leaders and Followers
Source: http://web.me.com/swardley/Site/BP180211Cycle.jpg

Ubiquity

Competitors
Demand for New Stuff Demand Competition

Competitive Disadvantage
We
Improvements on Current Stuff Offer Competition

Certainty

14 | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture

Source: How Cloud Vendors lie to you and How they steal your money Simon Wardley. IPExpo, London. Oct 13, 2009. http://bit.ly/y2SCoi

The Foundations Commoditization


so that we dont really have a choice
Source: http://web.me.com/swardley/Site/BP180211Cycle.jpg

Ubiquity

Competitors

but keep up with changes


Red Queen Hypothesis Leigh Van Valen (1973)

We

Certainty
15 | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture
Source: How Cloud Vendors lie to you and How they steal your money Simon Wardley. IPExpo, London. Oct 13, 2009. http://bit.ly/y2SCoi

The Foundations Commoditization


but fosters Innovation through Creative Destruction & Componentization
Source: http://web.me.com/swardley/Site/BP180211Cycle.jpg

Ubiquity

Enables & Accelerates

Creative Destruction
Joseph Schumpeter, 1942

Componentization
Herbert Simon, 1973

Certainty
16 | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture
Source: How Cloud Vendors lie to you and How they steal your money Simon Wardley. IPExpo, London. Oct 13, 2009. http://bit.ly/y2SCoi

The Foundations Commoditization


The Innovation Cycle: examples outside.in Steven Johnson launched outside.in with 60K $ from a private investor It would have costed 50M $ just 5 years before
What Would Google Do? Jeff Jarvis (2009)
Source: http://web.me.com/swardley/Site/BP180211Cycle.jpg

Ubiquity

Creative Destruction Componentization

Certainty
17 | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture

The Foundations Commoditization


The Innovation Cycle: examples the rise of Search Engines

National Electrical Grid Internet Commoditized HW

Ubiquity

Search Engines
18 | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture

Certainty

Source: http://web.me.com/swardley/Site/BP180211Cycle.jpg

The Foundations Commoditization


It changes consumption expectations
Source: http://web.me.com/swardley/Site/BP180211Cycle.jpg

Ubiquity

+ Consumption
+ Units Consummed > Global Expenditure

+ Efficiency
< Cost/Unit

Technological progress that increases the efficiency with which a resource is used tends to increase the rate of consumption of that resource
The Jevons Paradox William Stanley Jevons (1865)

Certainty
19 | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture
Source: How Cloud Vendors lie to you and How they steal your money Simon Wardley. IPExpo, London. Oct 13, 2009. http://bit.ly/y2SCoi

The Foundations Commoditization


changing our current structural limits too

Importance

Current IT Limits

Unmet Demand
Projects
20 | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture
Source: How Cloud Vendors lie to you and How they steal your money Simon Wardley. IPExpo, London. Oct 13, 2009. http://bit.ly/y2SCoi

The Foundations Commoditization


IT becomes a Cost of doing Business, rather than a Strategic Asset
Source: http://web.me.com/swardley/Site/BP180211Cycle.jpg

Ubiquity

there is no direct relation between spending on computers, profits or productivity


The Business Value of Computers Paul Strassmann (1990)
http://www.infoeconomics.com/business-value.php

Volume Market
... as they become ubiquitous they become commodity inputs. From a strategic standpoint, they become invisible; they no longer matter
IT Doesnt Matter Nicholas Carr (2003)
http://www.nicholasgcarr.com/articles/matter.html

Value Market

Certainty
21 | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture
Source: How Cloud Vendors lie to you and How they steal your money Simon Wardley. IPExpo, London. Oct 13, 2009. http://bit.ly/y2SCoi

The Foundations Commoditization


In fact, Cloud Computing is about Balancing Risks and Opportunities

Commoditization
Economies of Scale

Decision
Transition
Confusion Governance
Management, Leadership, Control

Outsourcing
Suitability

Pay per Use

Competence Focus on Core Confidence Cautivity Speed Security Strategic Control

Innovation

Transparency

22 | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture

Source: How Cloud Vendors lie to you and How they steal your money Simon Wardley. IPExpo, London. Oct 13, 2009. http://bit.ly/y2SCoi

The Foundations Commoditization


but just remember
Source: http://web.me.com/swardley/Site/BP180211Cycle.jpg

Ubiquity

Competitors

We

we dont really have a choice but keep up with changes


Red Queen Hypothesis Leigh Van Valen (1973)

Certainty
23 | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture
Source: How Cloud Vendors lie to you and How they steal your money Simon Wardley. IPExpo, London. Oct 13, 2009. http://bit.ly/y2SCoi

Market Environment General Outlook


The same way the Transport Industry delivers people and things

Private vs. Public

Car

Shuttle

Bus

Plane

Price vs. Features (Flexibility / Agility / Security)

24 | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture

Market Environment General Outlook


the IT Industry will do it too

Private vs. Public

Traditional IT/ Private Cloud

Hosted VPC*

Community Cloud

IaaS/PaaS/ SaaS

Price vs. Features (Flexibility / Agility / Security)

* VPC: Virtual Private Cloud

25 | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture

Market Environment General Outlook


though we are still in the early stages of adoption

Private Cloud

Hosted VPC

Community Cloud

XaaS

26 | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture

Market Environment General Outlook


Adoption is a complex, multidimensional phenomenon

Private Cloud

Hosted VPC

Community Cloud

XaaS

Market Segment / Business Activity / Service Type Customer/Company Profile Country(s)/Location(s)

27 | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture

Market Environment General Outlook


and every Business has its own Technology Mix

Private Cloud
Company D

Hosted VPC
Company D Company C Company B Company A

Community Cloud
Company D Company A Company B Company A Company C

XaaS
Company D Company C Company B

Company A

28 | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture

Company C

Company B

Market Environment General Outlook


evolving with time, in line with each Business Strategy (hopefully)

Private Cloud
Company D Company A Company C Company B Company A

Hosted VPC
Company D Company C Company B

Community Cloud
Company D Company A Company B Company A Company C

XaaS
Company D Company C Company B

29 | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture

Market Environment General Outlook


... so, there is room for everything!...

The same way IT is an heterogeneous environment today our experience with Cloud Services is and will be increasingly Hybrid! what we dont know is the internal composition for our own context/market

http://www.flickr.com/photos/evelynishere/3327074778/sizes/l/in/photostream/

30 | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture

Market Environment Decomposing Adoption


Projection exercise Company Size, Delivery Type & Adoption Rate
2011
SaaS PaaS
Public

2012
Mobility Verticals

2013

2014

2015

2016

2017

2018

2019

2020

Q
M

Public

SaaS

Q
M

Private

L PaaS

IaaS

Public

Q
SaaS/PaaS Verticals

Projects PoCs

M
L Capacity
Verticals, VDI

Private

Q
Virt2IaaS DCiaB, VDI

DCiaB

M
L
Verticals

31 | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture

Market Environment Decomposing Adoption


but cross-service interactions can accelerate adoption Look-out!
2011
SaaS PaaS
Public

2012

2013

2014

2015

2016

2017

2018

2019

2020

Public

Private

IaaS

Public

Third Parties can also start activities in the Cloud because of interactions with you!

Private

32 | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture

Market Environment Decomposing Adoption


but uncertainty is everywhere non linear behavior + high deviation
2011
SaaS PaaS
Public

2012

2013

2014

2015

2016

2017

2018

2019

2020

Public

Private

IaaS

Public

Private

33 | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture

Market Environment Decomposing Adoption


Bottom line: talking about Cloud Adoption is meaningless
2011
SaaS PaaS
Public

2012

2013

2014

2015

2016

2017

2018

2019

2020

Public

Private There are no diseases, but patients

IaaS

Public

Analyze and speak about your own context/market: strategically & tactically

Private

34 | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture

Market Environment Looking forward


The Cloud is a Building Block of the Future Gartner
http://cloudcomputing.sys-con.com/node/1939920

5 year projection
35 | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture

10 year projection

Market Environment Looking forward


The Cloud is a Building Block of the Future Gartner
http://cloudcomputing.sys-con.com/node/1939920

Mobility B2C B2B NFC Analytics Business Intelligence Big Data Internet of Things BYOC M2M
5 year projection
36 | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture

10 year projection

Market Environment Looking forward


The Cloud is a Building Block of the Future Atos LookOut Radars

http://lookout.atosconsulting.com/radars/

37 | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture

Market Environment Looking forward


The Cloud is a Building Block of the Future Atos LookOut Radars

Smart Objects Wearable Computing Context-Aware Crowdsourcing Zero Tolerance Robotics Ubiquitous Connectivity Digitally Connected Society
http://lookout.atosconsulting.com/radars/

38 | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture

Market Environment Looking forward


IT Industry growth model Less Bodies = Services++ & Technology++ Cloud Computing

Outsourcing / Services

Professional Services Time


39 | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture

Market Environment Looking forward


growth in a systemic crisis context are you kidding me?

Cloud Service Delivery can provide the cost efficiencies that we all need
But!: we also need have to get ready for a post-crisis context

http://www.flickr.com/photos/artemuestra/2941650098/sizes/m/in/photostream/

40 | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture

Market Environment Looking forward


just do things differently to obtain better results (hopefully)

Not IT Surgeons any more! Lets embrace the Power Shovel!


A different mindset can make the magic happen

http://www.flickr.com/photos/double-m2/4694962578/sizes/l/in/photostream/ http://www.flickr.com/photos/mad_house_photography/4411839186/sizes/l/in/photostream/

41 | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture

Technology Market roles


The Cloud Computing Sphere

Consumers

Service Providers

Technology Providers

System Integrators
42 | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture

Technology Market roles


Consumers Substantially different? Not really You already (should) do it

they get the benefits: simplicity, agility, speed & cost effectiveness but maturity will always be our duty: SLAs, Security, Automation, Governance, not a problem, just an opportunity!

http://www.flickr.com/photos/vgb-studios/6605427961/sizes/l/in/photostream/

43 | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture

Technology Market roles


Lets talk about the details: lets talk about Technology ;-)

Service Providers

http://www.flickr.com/photos/vgb-studios/6605420695/sizes/l/in/photostream/

They also have to know! System Integrators


http://www.flickr.com/photos/vgb-studios/6605408553/sizes/l/in/photostream/

Technology Providers
44 | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture

http://www.flickr.com/photos/vgb-studios/6605437513/sizes/l/in/photostream/

Technology A Technical Architecture Perspective


Its Services what drive Designs, not the opposite EA wont disappear

Cloud Architecture
RAIN* Design
Scale-out Designed for Failure at the Application Level Stack of Commodity Components

Cloud(Enterprise Architecture)
Containerized Design
Unchanged Application Designs Underlying scale-out Infrastructure

vApp

vApp

vApp

Presentation
Application Persistence

Presentation
Application Persistence

Presentation Application Persistence

Cloud Service
vNode vNode vNode vNode

Cloud Infrastructure Services


Containerized Design

EA*
Layered Design
Limited Scale-out Designed for Failure at the Infrastructure Level
* RAIN: Redundant Array of Inexpensive Nodes * EA: Enterprise Architecture * SSO: Single Sign-On * OSS: Operational Support Services * BSS: Business Support Services

SSO* + Integrated BSS* & OSS* Fabric Computing

45 | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture

Technology A Technical Architecture Perspective


Different worlds different Business Strategies

Cloud Architecture

Cloud(Enterprise Architecture)

Cheap Technologies
Commodity DC* + HW + OSS*

Costly!
Enterprise DC* + HW + COTS* Layers Increasingly bigger with Time & Scale!

Ad-hoc Applications & Infrastructure


Skilled Teams + New/Evolved Processes DevOps: boundaries gets blurred

IT Investment Protection
Skills + Engineering Patterns & Practices Virtualization + New/Evolved Processes

Service-based Automation
Infrastructure semantics can be ignored Business-oriented semantics!

Infrastructure-based Automation
Infrastructure semantics matter Infrastructure-oriented semantics Virtualization silos

46 | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture

* OSS: Open Source Software * COTS: Commercial Of The Shelf * DC: Data Cener

Technology A Technical Architecture Perspective


Different worlds different Business Strategies

Cloud Architecture

Cloud(Enterprise Architecture)

Commodities dont care about Feature Differentiation


Commodity DC + HW + OSS

IaaS dont care about Feature Differentiation on COTS


Multivendor IaaS standardize APIs on commonalities; (i.e: OpenStack)

Why invest in Products for Features that we will never use?

47 | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture

Technology A Technical Architecture Perspective


The World is not static Enterprise Apps consume new Tech on Upgrade

EA Solutions will, eventually, became SaaS

EA

Technology Builders
48 | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture

Layered Design

Technology A Technical Architecture Perspective


Lock-in Risks not structurally differential: the ecosystem is just bigger IaaS Infrastructure SaaS/BPaaS Service/Application
Product Behaviors Architecture

Not everything is equally risky! Divide and Conquer!


Web Services Technology Intensive

Standard Transports

Infrastructure Semantics

Mix of Technology and Labor Patterns

Infrastructure Products/Services

Structural Risk Map


Semantic Mappings

Vertical Industry Information Brokers/Exchangers Data Formats Code Information Schemas Hard-coded Mappings Labor Intensive

Product Settings Scripts

Ad-hoc Data Transformations

Managed Services World of Products

Systems Integration World of Code

49 | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture

Technology A Technical Architecture Perspective


Lock-in Risks not structurally differential: the ecosystem is just bigger

It doesnt exist a clearly Functional Frontier for each Technology Domain!

Element Management

Orchestration
* BPM: Business Process Management

Workflow & Process Automation

BPM*

50 | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture

Technology A Technical Architecture Perspective


Lock-in risks are not structurally differential: the ecosystem is just bigger

An Appliance Strategy can simplify EA Every component evolves and changes with time!

CSA* Legacy Systems

EA
* CSA: Client/Server Architecture

51 | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture

Technology A Technical Architecture Perspective


Lock-in risks are not structurally differential: the ecosystem is just bigger
http://thinkinbig.org/index.php/2011/05/thinking-about-cloud-strategy/

http://blogs.the451group.com/information_management/2011/04/15/nosql-newsql-and-beyond/

* OSS: Open Source Software

52 | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture

Technology A Technical Architecture Perspective


Lock-in risks are not structurally differential: the ecosystem is just bigger
http://thinkinbig.org/index.php/2011/05/thinking-about-cloud-strategy/

Explosion of Data Persistence Services Massive scale-out/elastic semantics

Mitigation: OSS*; Engineering patterns; Technology ubiquity degree; vendor selection

http://blogs.the451group.com/information_management/2011/04/15/nosql-newsql-and-beyond/

* OSS: Open Source Software

53 | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture

Technology A Technical Architecture Perspective


Subsystem Map for Hybrid, Multi-Cloud, and Multi-Technology Environment
Cloud Service/Fabric Controller
VMWare
vCloud vSphere vFabric

Microsoft
System Center Hyper-V Azure

Citrix
XenDesktop XenServer Cloud.com

RedHat
RHEV KVM/SPICE OpenShift

OpenStack

Amazon RackSpace

SalesForce NetSuite SAP

Traditional IT

ESB*/EAI*

Business Support Services


SAL*
Service Catalog

SAL*
Ordering

SAL*
Pricing

SAL*
Rating

SAL*
Billing

SAL*
Metering

SAL*
Entitlement

SAL*
Accounting
Payables Receivables Clearing

Operational Support Services


SAL*
Self-Service Portal
API

SAL*
Service Automation

SAL* Service Desk


Incidents Problems Changes

SAL*
Configuration

SAL*
Monitoring

SAL*
Capacity & Performance

SAL*
Licensing

SAL*
Provisioning & LCM

SAL*
Service Level

54 | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture

* SAL: Service Abstraction/Adaptation Layer * ESB: Enterprise Service Bus * EAI: Enterprise Application Integration

Technology A Technical Architecture Perspective


It is a (complex) Cloud Ecosystem has his own Life Cycle
Cloud Service/Fabric Controller
VMWare
vCloud vSphere vFabric

Microsoft
System Center Hyper-V Azure

Citrix
XenDesktop XenServer Cloud.com

RedHat
RHEV KVM/SPICE OpenShift

OpenStack

Amazon RackSpace

SalesForce NetSuite SAP

Traditional IT

ESB*/EAI*

Business Support Services


SAL*
Service Catalog

SAL*
Ordering

SAL*
Pricing

SAL* Evolves SAL* time asynchronously ! with SAL* SAL* SAL*


Accounting
Payables Receivables Clearing

Rating

Billing

Metering

Entitlement

Operational Support Services


SAL*
Self-Service Portal
API

SAL*
Service Automation

SAL* Service Desk


Incidents Problems Changes

SAL*
Configuration

SAL*
Monitoring

SAL*
Capacity & Performance

SAL*
Licensing

SAL*
Provisioning & LCM

SAL*
Service Level

55 | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture

* SAL: Service Abstraction/Adaptation Layer * ESB: Enterprise Service Bus * EAI: Enterprise Application Integration

Technology A Technical Architecture Perspective


fortunately, there are different Priorities, Risks, Efforts & Maturity
Cloud Service/Fabric Controller
VMWare
vCloud vSphere vFabric

Microsoft
System Center Hyper-V Azure

Citrix
XenDesktop XenServer Cloud.com

RedHat
RHEV KVM/SPICE OpenShift

OpenStack

Amazon RackSpace

SalesForce NetSuite SAP

Traditional IT

Business Support Services


Service Catalog Ordering

Changes with every Customer and Service Provider! SAL SAL SAL SAL SAL SAL SAL SAL
Pricing

Rating Billing Metering Entitlement There is no single or right answer!


Payables Receivables Clearing

Accounting

Operational Support Services


SAL
Self-Service Portal
API

SAL
Service Automation

SAL Service Desk


Incidents Problems Changes

SAL
Configuration

SAL
Monitoring

SAL
Capacity & Performance

SAL
Licensing

SAL
Provisioning & LCM

SAL
Service Level

56 | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture

Technology A Technical Architecture Perspective


Customer Requirements are/should be a World of Terms & Conditions

The risk of new customer-based silos is very real Customer N Difficult to achieve standardization, industrialization and further Innovation
Service Provider

Customer A

Customer B

not a World of C RFPs*! Customer


* RFP: Request for Proposal

57 | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture

Technology A Technical Architecture Perspective


Opening to a wider landscape A complex ecosystem of federated services

A federation of live components

A (eco)system by itself Asynchronous & chaotic behavior


Complex & heterogeneous in nature

Complexity evolves Asynchronous with time!


58 | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture

Technology A Technical Architecture Perspective


The asynchronous ocean of Cloud orchestration complexity

Countries/Regions (R)

Potential Complexity = C * R * S
Customers (C) Service Providers (S)

http://www.flickr.com/photos/smemon/5983673322/sizes/o/in/photostream/

59 | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture

Technology A Technical Architecture Perspective


it is, actually, a multi-level mesh

http://www.flickr.com/photos/smemon/5983673322/sizes/o/in/photostream/

60 | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture

Technology A Technical Architecture Perspective


it is, actually, a multi-level mesh

Business transparency is key!

http://www.flickr.com/photos/smemon/5983673322/sizes/o/in/photostream/

61 | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture

Technology A Technical Architecture Perspective


and a multi-domain one

Orchestration Domain

Orchestration Domain
It has impact on contracts, customer expectations and UX*!

http://www.flickr.com/photos/smemon/5983673322/sizes/o/in/photostream/

Choreography Domain

Orchestration Domain
* UX: User eXperience

62 | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture

Technology A Technical Architecture Perspective


fortunately, not every relationship matters the same
Consolidated Command & Control + Read-only Billing Infrastructure Semantics Consolidated Command & Control + Read-only Billing Infrastructure Semantics Unified Service Desk Experience Unified Read-only Risk/Audit Dashboard Unified Read-only Service Dashboard C&C* Run-time Advisor*** Service Benchmarking Unified Billing (?)

Public Private Hybrid

IaaS

Consolidated Command & Control + Read-only Billing Infrastructure Semantics

Consolidated Command & Control + Read-only Billing Infrastructure + Object Semantics Unified Read-only Service Dashboard Unified Read-only Business Dashboard** Service Benchmarking C&C* Run-time Advisor*** Unified Read-only Risk/Audit Dashboard Unified Billing (?) Consolidated Command & Control for certain Application Domains Consolidated Read-only Billing Service Semantics Consolidated C&C* for more App Domains

SaaS/BPaaS

PaaS

Prioritization + read-only aggregation

Now!

Unified Read-only Service Dashboard Unified Read-only Business Dashboard** C&C* Run-time Advisor*** Service Benchmarking Unified Read-only Risk/Audit Dashboard Unified Billing (?)
* C&C: Command & Control ** Requires Application Instrumentation + Integration *** Requires Run-time Analytics

63 | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture

Lets recap!

http://www.flickr.com/photos/duncanh1/5471899402/sizes/l/in/photostream/

64 | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture

Lets recap The Foundations


Cloud Computing it is about the commoditization of the IT Industry
Source: http://web.me.com/swardley/Site/BP180211Cycle.jpg

Ubiquity

Utilities

Commodity Product
Services

Custom Built Innovation


65 | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture

Certainty
Source: How Cloud Vendors lie to you and How they steal your money Simon Wardley. IPExpo, London. Oct 13, 2009. http://bit.ly/y2SCoi

Lets recap The Foundations


Cloud Computing it is about the commoditization of the IT Industry
Source: http://web.me.com/swardley/Site/BP180211Cycle.jpg

XaaS is now possible because many IT Activities have Utilities entered a Commodity Stage Commodity Product
Services

Ubiquity

Custom Built Innovation


66 | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture

Certainty
Source: How Cloud Vendors lie to you and How they steal your money Simon Wardley. IPExpo, London. Oct 13, 2009. http://bit.ly/y2SCoi

Lets recap The Foundations


It is driven by Market Competition
Source: http://web.me.com/swardley/Site/BP180211Cycle.jpg

Demand for New Stuff

Demand Competition

Ubiquity++

Ubiquity

Funcionality++

Improvements on Current Stuff Offer Competition


67 | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture

Certainty

Source: How Cloud Vendors lie to you and How they steal your money Simon Wardley. IPExpo, London. Oct 13, 2009. http://bit.ly/y2SCoi

Lets recap The Foundations


and though it is about Balancing Risks and Opportunities

Commoditization
Economies of Scale

Decision
Transition
Confusion Governance
Management, Leadership, Control

Outsourcing
Suitability

Pay per Use

Competence Focus on Core Confidence Cautivity Speed Security Strategic Control

Innovation

Transparency

68 | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture

Source: How Cloud Vendors lie to you and How they steal your money Simon Wardley. IPExpo, London. Oct 13, 2009. http://bit.ly/y2SCoi

Lets recap The Foundations


we dont really have a choice
Source: http://web.me.com/swardley/Site/BP180211Cycle.jpg

Ubiquity

Competitors
Demand for New Stuff Demand Competition

Competitive Disadvantage
We
Improvements on Current Stuff Offer Competition

Certainty

69 | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture

Source: How Cloud Vendors lie to you and How they steal your money Simon Wardley. IPExpo, London. Oct 13, 2009. http://bit.ly/y2SCoi

Lets recap The Foundations


Cloud Computing fosters innovation
Source: http://web.me.com/swardley/Site/BP180211Cycle.jpg

Ubiquity

Enables & Accelerates

Creative Destruction
Joseph Schumpeter, 1942

Componentization
Herbert Simon, 1973

Certainty
70 | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture
Source: How Cloud Vendors lie to you and How they steal your money Simon Wardley. IPExpo, London. Oct 13, 2009. http://bit.ly/y2SCoi

Lets recap The Foundations


In fact, it is a Building Block of the Future
http://cloudcomputing.sys-con.com/node/1939920

Mobility B2C B2B NFC Analytics Business Intelligence Big Data Internet of Things BYOC M2M
5 year projection
71 | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture

10 year projection

Lets recap Market environment


the IT Industry is growing and getting restructured

Private vs. Public

Traditional IT/ Private Cloud

Hosted VPC

Community Cloud

IaaS/PaaS/ SaaS

Price vs. Features (Flexibility / Agility / Security)

72 | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture

Lets recap Market environment


There is room for everything!...

our experience with Cloud Services is and will be increasingly Hybrid! but we dont know the internal composition for our own context/market

http://www.flickr.com/photos/evelynishere/3327074778/sizes/l/in/photostream/

73 | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture

Lets recap Decomposing Adoption


In fact, talking about Cloud Adoption is meaningless
2011
SaaS PaaS
Public

2012

2013

2014

2015

2016

2017

2018

2019

2020

Public

Private There are no diseases, but patients

IaaS

Public

Analyze and speak about your own context/market: strategically & tactically

Private

74 | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture

Lets recap Looking forward


In a systemic crisis context

Cloud Service Delivery can provide the cost efficiencies that we all need
because we also need have to get ready for a post-crisis context

http://www.flickr.com/photos/artemuestra/2941650098/sizes/m/in/photostream/

75 | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture

Lets recap Looking forward


just do things differently to obtain better results (hopefully)

Not IT Surgeons any more! Lets embrace the Power Shovel!


A different mindset can make the magic happen

http://www.flickr.com/photos/double-m2/4694962578/sizes/l/in/photostream/ http://www.flickr.com/photos/mad_house_photography/4411839186/sizes/l/in/photostream/

76 | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture

Lets recap Technology


Different roles

Consumers

they all need have to know, though for different reasons

Service Providers

Technology Providers

System Integrators
77 | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture

Lets recap Technology


Consumers Substantially different? Not really You already (should) do it

they get the benefits: simplicity, agility, speed & cost effectiveness but maturity will always be our duty: SLAs, Security, Automation, Governance, not a problem, just an opportunity!

http://www.flickr.com/photos/vgb-studios/6605427961/sizes/l/in/photostream/

78 | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture

Lets recap Technology


There are different Design Patterns when building Cloud Services

Cloud Architecture
RAIN* Design
Scale-out Designed for Failure at the Application Level Stack of Commodity Components

Cloud(Enterprise Architecture)
Containerized Design
Unchanged Application Designs Underlying scale-out Infrastructure

vApp

vApp

vApp

Presentation
Application Persistence

Presentation
Application Persistence

Presentation Application Persistence

Cloud Service
vNode vNode vNode vNode

Cloud Infrastructure Services


Containerized Design

EA*
Layered Design
Limited Scale-out Designed for Failure at the Infrastructure Level
* RAIN: Redundant Array of Inexpensive Nodes * EA: Enterprise Architecture * SSO: Single Sign-On * OSS: Operational Support Services * BSS: Business Support Services

SSO* + Integrated BSS* & OSS* Fabric Computing

79 | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture

Lets recap Technology


There are different Design Patterns when building Cloud Services

Dont take the Easy/Fearful Path!

just do what it takes: look at your Business and adjust your IT Strategy

80 | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture

* RAIN: Redundant Array of Inexpensive Nodes * EA: Enterprise Architecture * SSO: Single Sign-On * OSS: Operational Support Services * BSS: Business Support Services

Lets recap Technology


Lock-in risks are not structurally differential: the ecosystem is just bigger

Not everything is equally risky! Divide and Conquer!

Element Management

Orchestration
* BPM: Business Process Management

Workflow & Process Automation

BPM*

81 | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture

Lets recap Technology


Lock-in risks are not structurally differential: the ecosystem is just bigger
http://thinkinbig.org/index.php/2011/05/thinking-about-cloud-strategy/

No mysteries, but traditional lock-in mitigation techniques

it is usually the price/elasticity structure what traps you!

http://blogs.the451group.com/information_management/2011/04/15/nosql-newsql-and-beyond/

* OSS: Open Source Software

82 | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture

Lets recap Technology


Many subsystems, but not all of them are equally important
Cloud Service/Fabric Controller
VMWare
vCloud vSphere vFabric

Microsoft
System Center Hyper-V Azure

Citrix
XenDesktop XenServer Cloud.com

RedHat
RHEV KVM/SPICE OpenShift

OpenStack

Amazon RackSpace

SalesForce NetSuite SAP

Traditional IT

Business Support Services


SAL
Service Catalog

there is no single or right answer!


SAL SAL
Rating

SAL
Ordering

SAL
Billing

SAL
Metering

SAL
Entitlement

SAL

Accounting
Payables Receivables Clearing

Pricing

Operational Support Services


SAL
Self-Service Portal
API

SAL
Service Automation

SAL Service Desk


Incidents Problems Changes

SAL
Configuration

SAL
Monitoring

SAL
Capacity & Performance

SAL
Licensing

SAL
Provisioning & LCM

SAL
Service Level

83 | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture

Lets recap Technology


It is, actually, an ecosystem: a complex a multi-level, multi-domain mesh

where transparency is key!

with impact on contracts, customer expectations and UX*!

but, fortunately, not every relationship matters the same


http://www.flickr.com/photos/smemon/5983673322/sizes/o/in/photostream/

* UX: User eXperience

84 | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture

Lets recap Technology


The risk of new customer-based silos is very real

Customer N

Customer A

Competition requires freedom for further Innovation

Service Provider

Customer B

it is a World of Terms & Conditions, Customer C not a World of RFPs*!

* RFP: Request for Proposal

85 | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture

Everyone has the challenge even us!


It requires continuous self-reinvention

Complete and Solid Portfolio but, this is not about Marketing


86 | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture

Internal Transformation++ Maturity++ Cultural Revolution++

Thanks
For more information please contact: Carlos Veira Lorenzo carlos.veira@atos.net twitter: @cveira +34 695 671 417 Atos Spain S.A. Albarracn 25 20037, Madrid
http://www.flickr.com/photos/granpapa/299317857/sizes/l/in/photostream/ Atos, the Atos logo, Atos Consulting, Atos Worldline, Atos Sphere, Atos Cloud and Atos WorldGrid are registered trademarks of Atos SA. July 2011 2011 Atos. Confidential information owned by Atos, to be used by the recipient only. This document, or any part of it, may not be reproduced, copied, circulated and/or distributed nor quoted without prior written approval from Atos.

www.atos.net

Your business technologists. Powering progress | 19-01-2012 | Carlos Veira Lorenzo Spain | Managed Services | Innovation & Architecture

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