What is Cloud (my 2 cents)

What is Cloud (my 2 cents)

All I hear going up and down the elevator these days is “Cloud Cloud Cloud”

People seem to be dropping cloud in a sentence like they know a celebrity. 🙂

Cloud has existed for a very long time in different areas.. e.g ISPs provide Cloud type services for web hosting and provide a very simple interface for management called CPANEL and  Fantastico.

The big players in this space are Amazon S3/EC2, Google Apps, 3Tera and Salesforce.com.

There are public cloud services and private cloud services, I dont believe Enterprise companies will ever move to Public and even a private clouds seem a bit far way..

There is a trillion+ dollar market in the enterprise space to provide managed private cloud service.

According to IDC’s latest cloud computing server forecast, over 122,000 servers were deployed for private clouds in 2009 with a total of $7.3B in server spend. They predict that this number will grow to over 500,000 in 2014 with a spend over $11B. (New predications are around 40B!)

The central ideas around cloud computing, elasticity, pay-as-you-go pricing, multi-tenancy, self-service, and leveraging external services are beginning to strongly resonate in the enterprise market. According to Gartner, the cloud services market grew to $68.3 B in 2010 and predicts that by 2014, cloud services revenue will grow to $148.8 B worldwide.

In a recent Gartner study with CIOs, Cloud Computing soared from number sixteen to the number two top technology priority in just one year. Cloud Computing cannot be ignored. It represents a complete shift in the IT industry. It also represents a significant opportunity valued at $700m (1.3% of the global market) in the Australian and New Zealand marketplaces. This makes it a strategic growth play for IBM in 2010 and beyond.

2010 was a good year for cloud computing. According to Gartner, the cloud services market grew to $68.3 B, a 16.6 % increase over 2009 revenue at $58.6 B. Gartner predicts that by 2014, cloud services revenue will grow to $148.8 B worldwide. As cloud services continue to be adopted more broadly, Gartner predicts that by 2018, enterprise datacenter space requirements will be only 40% of the requirements today and will be primarily focused on core business services.

Enterprise Managed Cloud requirement:

Lets call it EMC oh! Lets make it Enterprise Private Cloud (EPC)

  1. PAY PER USE – This is key, a cloud service invoice should be no more complex than reading and paying your mobile bill! This will also cuts the massive enterprise sales engagement overhead.. more than half the money gets eaten up by the top tier of management and decision makers and only the crumbs are left for the actual implementation.
  2. Simple management interface – SINGLE management interface! Some notable management solutions – desktone.comSurgient.com and OpsWare
  3. Develop directly on cloud – the ability to use a API or SDK and develop directly on the cloud platform and then deploy. 3Tera is the leader in this type – http://www.3tera.com/AppLogic_demo.php (be scared be very scared) also springsource.com
  4. Standard service offering – Instead of offering a options for Lotus Notes and Exchange Mail.  Provide the features and benfits to the client rather than the technology. i.e. Features Rich Mail service
  5. Economies of scale – as the Managed private cloud providers grows in turn reduce the cost to the client.. No different from the take up of mobile phones. More users on the carrier and competition, yields better service and more competitive prices.
  6. Reduce outages and complexity – Technology is only going to get more complex. This will increase major outages. Keep dropping x-nines of availability in meetings but you will have outages (THAT IS A FACT!).  Cloud service has the ability to reduce this based on the above..
  7. Provide the service to the clients not the technology – We are moving towards offering the service to the client rather than the technology. Who cares if it is Apple Mac, Windows X, Unix.. The client just wants to type the document, enter the order , Print it or buy the product. etc..
  8. TurnKey – soon, service providers will be able to buy turn key solutions.  e.g.  Email filtering service, Turn Key Communication Service (email, messaging, pda, VoIP) Example –  IBM CloudBurst

In a Nutshell – (Utilization, billing and chargeback, Self service provisioning and Secure multi tenancy)

Enterprise Players (Service only i.e. Citrix and VMware is the technology)