Enterprise Computing Strategies This gig is bigger than grid: from HPC to service orientation John Barr Research Director Financial Markets OGF22 Boston

Enterprise Computing Strategies ECS: what is it? ECS Report findings ECS Directions EU Grid Research

What is ECS? Builds on The 451 Groups Grid Adoption Research Service –relationships with 250+ early adopters Grid is the starting point, but not the end point Insight into early adopter trends in FSI and other verticals Published reports, industry summits, surveys, advisory services

Where weve been: Grid Deployment Model

Where were going: ECS Evolution Roadmap

Enterprise Computing Strategies

Business Drivers : (cross vertical) 77% 57% 49% 41% 26% Time to Market Competition Do New Things Save Money Improved Performance

Business Drivers : 2007 (FSI)

Drivers - drill down

Grid Maturity

Deployment Strategies Creation of enterprise utilities is driving adoption. Competitive advantage and growth remain key individual drivers. Driving out cost is a constant. Its a multidimensional world. No right answer. Groups with the widest range of activities and assets are using grids to integrate them horizontally. Grid is a platform for running new workloads as shared services.

Virtualization and Grids

Virtualization and Grids: Vectors Intersect Elegantly Convergence of grids, multicore and virtualization = profound effects. It is a fundamental driver of change. Not just a speed bump. Virtualize everything? Making on-demand capacity access from third-party service providers more viable. End of grid?

Enterprise and Public Utility

Grids and Enterprise Utility a sweet spot Shared IT infrastructure = maturity of process. Requires groups of like-minded people Leading adopters applying Gridonomics. So is IT a profit center or not? So whats the unit of measure? –Federal Reserve –NYSE SaaS and open source are additive, self-service is a driver. Can it cope with fast markets?

Grids and Public Utility Computing: coming Emphasis on flexibility and utilization as banks max out space. Users with enterprise utilities are more likely to examine hosted in-house/outsourcing options. Maturity of technology (like virtualization) and pricing models. Growing ISV appetite to support utility models. The Amazon effect. Grids deliver economies of scale for next-generation hosting providers = increased adoption. How is it being used?

Grids and Public Utility Computing: But Hold Your Horses Multi-tenanted resources/security/transparency/latency. On-demand, per-use pricing, software licensing. SaaS pricing complexity, lack of application services. Capex to opex - loss of budget predictability. Immaturity of pricing models. Back in the conversation- wont be an 'all or nothing' play Cost vs. in-house.A lot of marketing, but not yet a market.

Challenges : (cross-sector) 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

Challenges: 2008 (FSI)

A Market in Transition Early adopters moving from Level 4 towards Level 6 in IT Evolution Model Integrating compute and datagrid Intersection of grids and virtualization Open source road crash? Applying Gridonomics Eco-Efficient IT –Corporate governance, taxation, legislation Cloud computing –Use of enterprise and public utility models Emphasis on flexibility and utilization as FSI users max out space

Its not just Grid

The 451 Group in Europe Significant European Union Grid research investment EU Commission is our client 451 Project involvement NESSI, Challengers Initiative –help to define the research agenda

Conclusions Enterprise Computing Strategy –Evolution of Grid –Cloud? Improve connection of research to industrial exploitation

John Barr OGF22 Boston Enterprise Computing Strategy FSI Summit Hosting Transformation Summit London, June