1. OGF20 May 2007 1 The 451 Group Grids: the means to what ends? Steve Wallage Director of Research William Fellows Principal Analyst

2. OGF20 May 2007 2 The 451 Group Technology industry analyst company Agenda: enterprise IT innovation Analysis that is timely; insight that is dynamic Network of 700+ client organizations globally Vendors Investors Bankers Early-adopters

3. OGF20 May 2007 3 Grid Adoption Research Service (GARS) Tracking 250+ enterprise early adopters Across a range of sectors: Financial services, telco, pharma, film and gaming, manufacturing, energy, hi-tech, healthcare Common business and technology functions: Measuring value, software licensing, data management, utility computing, application development/design, state of market Enterprise Computing Strategy industry summits

4. OGF20 May 2007 4 EARN-IT: Early Adoption Research Network - IT GARS - Grid Adoption Research Service CAOS - Commercial Adoption of Open Source Security, mobile enterprise…

5. OGF20 May 2007 5 Our work with the EC FP6 GridEcon project looking at economic and business models for grid usage Leading technical working group (TWG7) on business models and SLA for grids European Grid Co-ordination Technical Committee Member of NESSI FP7……

6. OGF20 May 2007 6 451 view of market - agenda Overall state of the market Drivers Challenges Vertical differences

7. OGF20 May 2007 7 Levels of deployment

8. OGF20 May 2007 8 What to call it? 70% of respondents said there is a better term than grid to describe their distributed computing architecture:

9. OGF20 May 2007 9 Drivers – GARS users 77% 57% 49% 41% 26% Time to Market Competition Do New Things Save Money Improved Performance

10. OGF20 May 2007 10 Drivers – a broader look

11. OGF20 May 2007 11 Drivers – proving the business case Tangible vs intangible Buy-in Proof of concept Competitive advantage

12. OGF20 May 2007 12 Challenges – GARS interviews 46% 33% 31% 28% 20% 19% 18% 15% 14% 1% Semantic Web Skills Shortage App Dev Lack of Standards Prove ROI Grid to Utility Grid to SOA Grid Enabling Apps Security Data Mgmt Cultural Bandwidth Licensing

13. OGF20 May 2007 13 Challenges – a broader look

14. OGF20 May 2007 14 Challenges – experiences from a different perspective Sensitive data, sensitive apps (medical patient records) Different organizations get different benefits Accounting, who pays for what (sharing!) Security policies: consistent and enforced across the grid Lack of standards prevent interoperability of components Current IT culture is not predisposed to sharing resources Not all applications are grid-ready or grid-enabled Open source is not equal open source (read the small print) SLAs based on open source (liability?) Static licensing model dont embrace grid Protection of intellectual property Legal and tax issues (FDA, HIPAA, multi-country grids)

15. OGF20 May 2007 15 Cultural challenges Ownership and control CxO buy-in Importance of stakeholders Internal SLAs

16. OGF20 May 2007 16 Deployment – by vertical

17. OGF20 May 2007 17 Vertical market - differences Software licensing Range of applications Use of desktop scavenging Use of outsourcing Use of open source

18. OGF20 May 2007 18 Where are we going? William Fellows

19. OGF20 May 2007 19 Levels of deployment

20. OGF20 May 2007 20 Next - support broader IT objectives

21. OGF20 May 2007 21 What do we know?

22. OGF20 May 2007 22 The sweet spots of activity are: Enterprise utilities Platform for shared services In other words, a technology infrastructure and an application infrastructure.

23. OGF20 May 2007 23 The key technology drivers Grid technologies Virtualization SOA, SOLE, SOIT, SOE…. New approaches to power, performance, space

24. OGF20 May 2007 24 Virtualization Enterprises are experiencing benefits from infrastructure virtualization Virtualization is being applied at every layer of the IT stack - compute, network, data and apps Concerns: sweeping complexity under the carpet, performance overheads, license costs, vendor lock-in, too many moving parts? Virtual appliances rival SaaS? Do grid and virtualization intersect, converge or collide?

25. OGF20 May 2007 25 One approach: a layered view (from EGA reference model) Business process / service Reference DataRisk ManagementCustomer Portal Virtualized PlatformData GridCompute GridServer Farm Platform InstanceDatabaseApp ServerWeb Server Virtualized Operating Environment NFS, CIFS, SMB, NAS Virtual Machine Monitors, Solaris Containers, BSD Jails Load balancing, Global IP, Virtual IP Operating Environment File systems e.g. NTFS, Ext3 Operating Systems e.g. Linux, Windows Network protocols e.g. TCP/IP, UDP Virtualized PhysicalLUNsHypervisorsVLANs PhysicalDisks, Array Controller, SAN switches etc. Servers, Blades etc. Switches, Routers etc. StorageComputeNetwork Each physical layer provides abstraction to the layer above Each virtualized layer provides a flexible mapping/management

26. OGF20 May 2007 26 Grid and virtualization: vectors intersect Virtualization - a vehicle to realize the dream of grid computing? Mapping virtual workspaces to physical resources - virtual grids The end of grid? Battle for control - vendors extending into other territories

27. OGF20 May 2007 27 Grid and enterprise utility Leading adopters implementing grid economy across shared resources Requires willingness to participate in a shared IT infrastructure Self-service is a driver SaaS and open source are cost-effective and additive Next steps - SLA monitoring, policy management, chargeback across heterogeneous resources

28. OGF20 May 2007 28 Grid and public utility computing Grid delivers economies of scale for next-generation hosting providers = increased adoption Are we ready for utility computing now? (Yes, but don't call it that) So what is interesting? Issues: multi-tenanted, per-drink pricing, software licenses, SaaS pricing complexity, lack of app services, loss of budget predictability

29. OGF20 May 2007 29 Grid and public utility computing Users with enterprise utilities are more likely to examine other outsourcing options Back in the conversation but wont be an 'all or nothing' play A lot of marketing, but not yet a market Telcos become IT services providers. Google, Amazon, eBay take on incumbents (eBay financial markets?)

30. OGF20 May 2007 30 IT as a utility 80% culture change - 20% technology integration Back to the future? Charge to a business metric not CPU/hour - at the service delivered to the user not resources used at backend Cheaper in-house? Outsourced CPU suppliers need better pricing models

31. OGF20 May 2007 31 Rebirth of cool Enterprise datacenter sales used to be two dimensional - what is the performance and what is the cost? Power consumption, heat dissipation, space and their SLAs are top of procurement conversations Blades = less space but more more heat Rebirth of mainframe cooling techniques - IBM cool door, HP cool fan, Green Grid.. Other approaches: pooling/outsourcing for peak loads, multicore, FPGA, cell, GPUs, streaming CPUs

32. OGF20 May 2007 32 Rebirth of cool US EPA Energy Star program: every dollar spent on IT equipment, $3 to $4 is spent on operating it over its life Energy costs for UK businesses have increased by 57% during the last 12 months, and now form a significant element of operational expenses, often greater than IT equipment depreciation and sometimes greater than real- estate costs How to factor into ROI? Return on Environment - new metric for technology innovation 451 Group report: EcoEfficient IT

33. OGF20 May 2007 33 Banks verdict: grid is good for… Looks capable of driving sustainable, long-term and linear cost savings and performance improvements Use of grids to scale across the organization and support additional activities such as exotics Can common approaches (above the waterline) drive differentiation and competitive advantage? Return to spending on innovation instead of managing complexity Utility, flexibility, scale - agility Scale: This year's exotic can easily become next year's flow.

34. OGF20 May 2007 34 Who do we know about?

35. OGF20 May 2007 35 Data management Problem Interface between compute grid and data grid/cache File systems are a bottleneck – storage startups solve it? Storage not kept up with compute power Latency is a business issue not a technology issue - for faster business cycles the time to execute must be less than the time to act Innovation Storage/file systems (EMC, NetApp, Ibrix, Nirvana, Acopia, NeoPath, Isilon) database (Xkoto, Vertica), clustering (PolyServe, Panasas, Isilon, Oracle), caching (Tangosol, GemStone, GigaSpaces, Composite), data integration Google BigTable, MapReduce, Sawzall; Microsoft Dryad

36. OGF20 May 2007 36 Metering, billing, chargeback Problem Measuring virtualized compute, network and storage resources Allocation of resources and priority assessment Rating, mediation Policy enforcement Unit of measure Innovation Evident Software, LeCayla, Provment, Iontas, Itheon, IBM CIMS, Digital Fuel

37. OGF20 May 2007 37 Managing virtualization. Implementing SLA/policy Problem Managing VMs Automation of tasks/run book Enforcing SLAs/policies Performance analysis Semantics Innovation VMware, Xen, Scalent, DataSynapse EverGrid, ToutVirtual, VirtualIron, IBM Meiosys, Platform, UD, Trigence, Dunes OpsWare/iConclude, BladeLogic, Cassatt, Egenera, RealOps, Enigmatec, Opalis,Tideway, OpTier Dtrace, SystemTap, Sawzall

38. OGF20 May 2007 38 Applications Problem Run existing applications unchanged, self-service A platform for new app development or chopping up older applications? Levels 1 to 5… New approaches to multi-threading, parallelism Batch to interactive, real-time: mixed workloads Innovation Grid or fabric-aware application servers provide virtualized containers for apps and app servers IBM XD, UD/SAP, Oracle, DataSynapse, Platform, BEA, Scalent, Appistry, Aspeed, 3Tera, Trigence, EverGrid

39. OGF20 May 2007 39 Security Problem Neglected by many users, believe protected within their own firewalls Biggest threat is internal External challenges - malicious usage, stealing algorithms, using the grid against its owner, using the grid for unauthorized programs Trusting of resource brokers, other internal (can you trust another department ?) and external data sources The 451 Group has formed a panel to develop security recommendations for organizations deploying grids

40. OGF20 May 2007 40 Where are we going?

41. OGF20 May 2007 41 grids not The Grid Resurgence of grid HPC or NGDC? Convergence - datacenter automation Could use some some open standards - but waiting is too risky (getting left behind) Requires maturity of processes Some of todays tools are sufficient - but we are in the inventory period in terms of usage Business and senior management expectations exceed capabilities?

42. OGF20 May 2007 42 Beyond using Grid to solve HPC Define new workloads for grids Platform to support SoA Create shared service architecture Enable collaboration Standardized semantics Build composite applications Create virtual organizations

43. OGF20 May 2007 43 grids - through 2010 Virtualization allows grid to be absorbed into to the enterprise fabric Convergence of grids, multicore and virtualization will have a profound effect Silos to horizontally integrated resources - enterprise utilities Downstream of HPC: mixed workloads, risk management in other verticals, analytics, MDM, ERP Batch and real-time/interactive blurring Mitigate risk through flexibility

44. OGF20 May 2007 44 grids - through 2010 Continued confusion between grid, SOA, virtualization and utility computing Vendor execution and partnerships - more important than vision Latency is a business issue not a technology issue - for faster business cycles the time to execute must be less than the time to act Users increasingly socialize their IT models Innovation: companies cant just cost-cut their way to prosperity The end of grid? No. Grid is the means to many ends

45. OGF20 May 2007 45 The 451 Group Grids: the means to what ends? Steve Wallage Director of Research William Fellows Principal Analyst

46. OGF20 May 2007 46 Thankyou. Questions?