1. Understanding The Cloud Scott McClellan VP Chief Technologist, Scalable Computing & Infrastructure © 2008 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice

2. Two seemingly contradictory statements… Cloud Computing is MASSIVELY overhyped Cloud Computing will forever change the computing world todayfuture (not so distant…) … both are true, the question is “when”?

3. Cloud: Hype & Confusion Customer Demand Real success stories have emerged from the internet… −Google, Amazon, eBay, Yahoo, Microsoft, etc Delivering astonishing results … −Robust solutions, at enormous scale, on very low cost infrastructure The pain points around utilization, cost, and flexibility are shared by all customers… −Extremely high demand for solutions to these problems −Aggravated by current economic situation Marketing Hype Dell: Attempted to trademark “cloud computing” – denied! IBM: Suddenly everything is “cloud computing” new and old Others: Every vendor with anything product that abstracts anything… Sources of Confusion New/emerging technology & terminology −W−Web2.0, Mash-Ups, Ruby, Rails, AJAX, and many-many more… −I−IaaS, PaaS, SaaS, STaaS… Confusion around Internal vs. External Clouds

4. “A Tale of Two Clouds….” Distinguishing between two distinct phenomena … Enterprise IT Transformation (Internal Clouds) and [True] Cloud Computing

5. Enterprise/Large SMBs External Service Providers Primary Business Varies: Auto, Aero, Other Manufacturing, Pharmaceutical, Health Care, Retail, Entertainment, Communications, etc. Examples: GM, Boeing, Coach, Glaxo, Kaiser, Walmart, … Providing external services to consumer, SMB, or enterprise customers (for profit) over the public internet. Examples: Google, Amazon, eBay, SalesForce, Yahoo, Facebook Role of IT Business IT; basic IT functions to enable business; HR, Business process, Decision support, collaboration, etc. IT is a cost center same Business IT: Service providers have a business IT function similar to business IT for other enterprises. IT is a cost center External Service IT: Internet facing IT infrastructure optimized for massive scale at a low cost IT is core to the customers business Traditional Enterprise HPC Infrastructure; some enterprises have HPC infrastructure to do modeling and simulation for engineering, research, financial analytics, etc. also a cost center Unique to Service Providers

6. “Enterprise Class” IT Infrastructure/Services Service Provider = Service Consumer Delivered over an Intranet (private network) Scale = Enterprise Scale “Global Class” IT Infrastructure/Services Service Provider <> Service Consumer Delivered over the Internet (public network) Scale = Global Scale Enterprise/Large SMBs External Service ProvidersTraditional Enterprise

7. Service Centric IT LoB-2LoB-nLoB-3LoB-1 LoB-2LoB-nLoB-3LoB-1 Shared Resource Pool Enterprise/Large SMBs Improved TCO Improved Agility Dedicated Resources Virtualization Automation Enterprise IT Transformation Moving from dedicated resources to shared resource pools Enabled by virtualization, automation and embracing service centric IT Evolutionary – has been going on for years Delivers improved cost, greater business agility, and enables IT to survive and thrive in a hybrid world Enterprise class IT infrastructureGlobal class IT infrastructure WHAT DOES GLOBAL CLASS INFRASTRUCTURE LOOK LIKE? HOW DO GLOBAL CLASS IT SERVICES EVOLVE? WHAT BUSINESS FACTORS DRIVE SERVICE PROVIDERS? WHEN WILL ENTERPRISE WORKLOADS MOVE TO THE CLOUD? External Service ProvidersTraditional Enterprise

8. Enterprise class IT infrastructureGlobal class … AUTOMATED Cloud Services Cost continuum $X$X/(2-3) $X/10 CHASM VIRTUALIZED “Pooled” resources/shared infrastructure Adaptive Infrastructure DEDICATED 1:1 Binding Workloads: Machines IT “islands” The “Chasm”

9. Global class … Evolution of cloud services … CHASM Dedicated Multi- Purpose Partners…Platforms Purpose-built custom offering Support multiple applications Support high-touch business partners Platform as primary value + “toll booth” Initial Web Property Partly cloudy Cloudy More cloudy Benefit from accumulated learning's… Amazon bookstore Amazon retail Amazon retail services Amazon web services Architectural evolution: from fairly conventional to extremely scalable, monolithic to modular, relentless focus on cost time Business Models Available: advertising or transactional revenue

10. x x x x x Contrasting design & delivery approaches… Compute & Storage Resources Operating System Middleware Application Integrated system Hardware Vendor Operating System Vendor Middleware Vendor Application Vendor Customer / Solution Integrator Multiple parties involved Solution integrated by customer and/or SI Service provider = customer <> developer Everything in-house developed except HW Cloud service provider <> end customer Cloud service provider = developer Traditional enterprise IT: Distributed design responsibilities Cloud Service Provider: Integrated design and delivery Global class …Enterprise class

11. Achieving scale at a the right cost… the critical success factor for cloud service providers $ scale Cloud Conventional IT Virtualization + Automation improves the shape of the curve, but does not bridge this gap Rotating this line down translates directly into profitability Capacity is added in “chunks”. Cost is a “stair step” curve with increase step sizes as scale increases. Individual enterprises typically don’t require “cloud” scale…

12. Multi-tenancy Applications dimension User dimension 1 100s 1000s 1millionsthousands one company one LoB one company multiple LoBs multiple companies dedicated Virtualized and Automated Adaptive Infrastructure Cloud properties start out as multi-tenant from a user perspective but single tenant from an application perspective Cloud properties become multi-tenant from an application perspective when they open up and become platforms Multi-tenancy: More than one [user, application, or both] on a common shared infrastructure. dedicated multi- purpose platform partner

13. Conclusions The future of Enterprise IT is a hybrid environment… services sourced internally, outsourced, or from cloud service providers Cloud computing is revolutionary and will ultimately change the world…but not overnight Enterprise IT transformation is an evolutionary process that has been happening for years… There are significant barriers for creating and adopting cloud services for enterprises…