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Cloud Computing

16 Dec 2011
jean-francois.caenen@capgemini.com
Chief Technology Officer
Capgemini France
Cloud Computing Controversy


           Simply the most
                                 The latest
               awesome
                                  fashion
            paradigm shift
                               in a fashion-
             in the last 50
                              driven industry
              years of IT




                              Same old stuff
           New disruptive
                                 from last
Internet    Technologies
                                generation      Enterprise
 Cloud     and Business                           Cloud
                              repackaged for
               Models
                              this generation




                                                             2
CFOs
                love
                Cloud Computing !




            No investment before use.
     Pay for what you need, when you need.
Instead of investing in rigidity, you buy flexibility.


                                                         3
Business
managers
know & love
Cloud Computing!
Implement
Business Applications we need
much quicker


Source:
HfS Research and London School
of Economics, Oct 2010
846 Entreprises




                                 4
A Major Shift in Solution Sourcing

  From This                                To This

   Experimenting
     with Cloud
                                         Cloud-based
Some Open Source                           Services
(in commoditized or                       wherever
 embedded stacks)                           viable


    Mostly                               Open Source
  Commercial              Continual        Software
   Software              reappraisal   (on IaaS or PaaS)
  on-premise
                                        Commercial SW        due to lack of
                                          on-premise      viable alternatives,
                                        only where needed     or for risk
                                                              mitigation



                                                                                 5
100 000 users
                                                                     June 2011

           Salesforce.com expects $3 Billion Run Rate next Year



                                 in    5 years           1Billion $
                                                        Revenue per year
                               Start
                               2006              2011


                                                                                 6
May 2010
Wal-Mart Picks
SuccessFactors For
Largest Enterprise Deal Ever
A 300,000-seat trial turns into a
2.1M-seat global deal




                                               7
‘‘ The risk for enterprises that don’t start
  a Cloud migration is that their IT
  organization will be a competitive
  disadvantage.    ’’
                             Geir Ramleth
                             CIO, Bechtel Corp

  Not Only
      Cost Reduction
  But also
      Business Agility
      Access to next-generation architectures
                                                       Enterprise Applications in 2011
                                                                       8
                                                 © 2011 Capgemini. All rights reserved.
By 2015, 50 % or more of NEW enterprise IT spend
will be Cloud-based or Hybrid.
By 2015, 65 % or more of NEW enterprise IT workloads
will be Cloud-based or Hybrid.
By 2015, 25 % or more of TOTAL enterprise IT workloads
will be Cloud-based or Hybrid.
SaaS is driving adoption.
PaaS enables custom & composite solutions.




                                                         9
Solution Life Cycle

    Evolution & Innovation


Software as Bits
                               Requests for
                              Enhancements

   Develop      Test      Release              Install   Qualify   Operate
                                    Software
        Debug                       Version
                                                                              Users


 Service
       Usages & Feedbacks

    Develop        Test   Operate                    Internet
                                     Service
           Debug
                                                                             Users



                                                                                      10
Google Apps

Constant stream of innovation




60+ major feature releases each year

                                             11
The Amazon AWS pace of Innovation
Simple Storage Service (S3)          13 Mars 2006
Simple Queuing Service (SQS)         11 Juillet 2006
Elastic Cloud Computing (EC2)        23 Aout 2006
Flexible Payment Services (FPS)      2 Aout 2007
Simple DB
DevPay
                    3 major          13 Décembre 2007
                                     16 Décembre 2007


Cloudfront
                  Innovations
Elastic Block Storage (EBS)          20 Aout 2008
                                     18 Novembre 2008
Elastic Map Reduce  per year
Virtual Private Cloud
                                     2 Avril 2009
                                     26 Aout 2009
Relational Database Services (RDS)   27 Octobre 2009
Versionning for S3                   8 Février 2010
Simple Notification Services (SNS)   14 Avril 2010


                                                        12
Evolution of Computing Models

SLA             99.999                   99.9                                Always On


Scaling                     Vertical                  Horizontal

Hardware       Custom                  Enterprise                           Commodity

HA Model                    Hardware                      Software

Software      Centralized                 Decentralized                     Distributed

              Centralized               Shared
Consumption    Service                  Service
                                                                           Self-service


              Mainframe                  Enterprise                         Cloud

                                                            Source: Randy DIAS – www.cloudscaling.com


                                                                                                   13
As a guiding light




                     14
AWS uses non-Enterprise IT patterns
                   Enterprise
  SLA Target     99.999%(pretend)         99.95%(realistic)
    (Uptime)
  SLA Actual      99.9%(if lucky)          99.9%(or more)

     Scaling          Vertical               Horizontal                      Scale Engineering


   Hardware           Vanity                Commodity
                     Hardware                Hardware            Commodity      Operational
   HA Model     Use Hardware & pray        Use software             HW          Excellence
                                          & plan for failure

Software Arch   Centralized & brittle      Decentralized &
                                        isolated fault domains
Consumption
     Model       Call the help desk      Self-service & APIs

 Automation     1 admin per x00 srv     1 admin per x0 000 srv


                                                                                              15
Essential Understanding

      Scale Engineering

  1990’s Big App                      2010’s Big App
in the Enterprise                     on the Internet
                    100K users?                         800M+ users



   ‘‘ The cloud lets its users focus
      on delivering differentiating
      business value.     ’’
                           Werner VOGELS
                           CTO, Amazon

                                                                      16
A Continuum of Services

                                  Cloud Computing

                         SaaS           Platform      Infrastructure
Rented Application     CRM,ERP…         Software         Cpu, storage       ‘‘Run’’ as used
      €/user                           environment                      €/cpu/hour, €/Gb, €/Gbps

  Contract based                                                              Virtual machine
  on user features                                                            based contract
                       subscribe     develop & run
The solution already                                 start & run               No ownership
    is a service                                                               but full control
                       Business                Operations
                         user
                                     App dev
                                Contract based
                                on APIs & tools
                             After the development
                            the solution is a service

                                                                                                  17
A Continuum of Services



 Operations                                   App dev                            Business users
     IaaS                                        PaaS                                 SaaS
Infrastructure                                 Platform                           Application
 as a Service                                as a Service                         as a Service

                 low                                                      high
                                           Productivity
                 high                                                    low
                                              Control

                 detailed (per hour…)                           macro (user/mois…)
                                        Billing – Pay per use
                 difficult                                              easy
                                        Cost Predictability


                                                                                                  18
Public vs. private cloud :
             Access vs. Ownership

          Provider of Public   Public Cloud
                Cloud
 Public
Access




Private
Access

           Private Cloud       Virtual Private
                                   Cloud


              Private           Third-Party
             Ownership          Ownership

                                                 19
Public Cloud


                          CAPEX
       Outsourced
       Operations         OPEX                   Economy of scale
                                       Very
Automated                           attractive
Operations                            prices
                    Cloud                          Mutualization
                  Computing

   Immediate                      Massively
   Availability                     elastic
   Self-service    Virtualized    resources
                    resources
                    available
                   everywhere




                                                                    20
Private Cloud


                          CAPEX
       Outsourced
       Operations         OPEX                   Economy of Scale
                                       Very
Automated                           attractive
Operations                            prices
                    Cloud                          Mutualization
                  Computing

   Immediate                      Massively
   Availability                     elastic
   Self-service    Virtualized    resources
                    resources
                    available
                   everywhere




                                                                    21
22
23
Why a Private Cloud?


Private Cloud                                                  The
                                               Security      Trusted
                Public Clouds don’t meet
                                                              Cloud
                                               Data
                   our requirements             Localization
                                                Confidentiality

                    A step to prepare
                the use of a Public Cloud
                                            Carefully Design
                Virtualization              • Interoperability
                                            • Portability
                Automatisation              • Service Provisioning &
                                               Monitoring
                Self-provisioning           • Governance / Billing to
                                               prepare to an hybrid cloud
                                               model

                                                                            24
Dev@Cloud [& Run@Cloud]




                          25
Impacts
     on
          IT organizations

                             26
IT Economy
         Standard                               Standard
         for large           Standard         for the sector       Differenciation
        enterprises        in the sector         leaders



Decisions based on costs                               • Decisions based on Business Value
                                                       • Faster (Time to Value)
Standard Solutions
                                                       • Open for the next steps




                                                     Costs of projects


                                                        Build / Entry


                                                        Run
    A Measurement Culture
      Business Indicators
      whenever possible                                 Replacement / Exit


                                                                                             27
IT organizations must change


A Capacity oriented IT org
                                    Data Centers   X 000 m.d. for projects

                                                          Process

                                      IT Standards Demand Management
                                                        Build & Run

 A Business Services            Business Services & KPIs
                                 Less technology selection &
 oriented   IT org               more business support
 Focus will shift to Business   Integrating, monitoring & supporting
                                Internal & external services
 empowerment.                   Value through governance, orchestration
 Encourage Innovation or        & innovation
 Expect to be bypassed !        Short Cycles – Dynamic service provider
Cloud Computing & Innovation

                                 Culture of Preliminary Analysis
10-15 years ago,                 Limitation: Our capability to
                                              elaborate ROI studies
experimenting was expensive      Afraid of:   Errors in ROI studies




Experimenting costs as much as   More value for the time spent
                                 More value for the euro spent
(or sometimes less than)         Limitation: Our capability to manage
                                                experimentations
the analysis                     Afraid of:     Have lost an opportunity
                                                to experiment
                                 Culture of Observation allowing
                                 fast learning and adjustments



                                                                       29
IT role in business leverage of technology

                                                      Business’s use of
                               Business                 technology
            Business             self-
              self-           provisioned
           provisioned                       Business
                                               self-
                                            provisioned
                     IT provisioning of
                              IT
                       technology for
                         provisioned
                          business
             Business
               self-             Business
            provisioned            self-
                               provisioned
                          Business
                            self-
                         provisioned        Innovation will x3 from 5% to 15%
                                            Vendor mngt will x2 from 10% to 20%
                                            Enterprise Arch will x2 from 10% to 20%
Source:                                     Risk mngt will increase from 10% to 15%
31
32
Questions   Feedback




              Together. Free your energies

                       www.capgemini.com

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Cloud Computing for Enterprise Architects

  • 1. Cloud Computing 16 Dec 2011 jean-francois.caenen@capgemini.com Chief Technology Officer Capgemini France
  • 2. Cloud Computing Controversy Simply the most The latest awesome fashion paradigm shift in a fashion- in the last 50 driven industry years of IT Same old stuff New disruptive from last Internet Technologies generation Enterprise Cloud and Business Cloud repackaged for Models this generation 2
  • 3. CFOs love Cloud Computing ! No investment before use. Pay for what you need, when you need. Instead of investing in rigidity, you buy flexibility. 3
  • 4. Business managers know & love Cloud Computing! Implement Business Applications we need much quicker Source: HfS Research and London School of Economics, Oct 2010 846 Entreprises 4
  • 5. A Major Shift in Solution Sourcing From This To This Experimenting with Cloud Cloud-based Some Open Source Services (in commoditized or wherever embedded stacks) viable Mostly Open Source Commercial Continual Software Software reappraisal (on IaaS or PaaS) on-premise Commercial SW due to lack of on-premise viable alternatives, only where needed or for risk mitigation 5
  • 6. 100 000 users June 2011 Salesforce.com expects $3 Billion Run Rate next Year in 5 years 1Billion $ Revenue per year Start 2006 2011 6
  • 7. May 2010 Wal-Mart Picks SuccessFactors For Largest Enterprise Deal Ever A 300,000-seat trial turns into a 2.1M-seat global deal 7
  • 8. ‘‘ The risk for enterprises that don’t start a Cloud migration is that their IT organization will be a competitive disadvantage. ’’ Geir Ramleth CIO, Bechtel Corp Not Only Cost Reduction But also Business Agility Access to next-generation architectures Enterprise Applications in 2011 8 © 2011 Capgemini. All rights reserved.
  • 9. By 2015, 50 % or more of NEW enterprise IT spend will be Cloud-based or Hybrid. By 2015, 65 % or more of NEW enterprise IT workloads will be Cloud-based or Hybrid. By 2015, 25 % or more of TOTAL enterprise IT workloads will be Cloud-based or Hybrid. SaaS is driving adoption. PaaS enables custom & composite solutions. 9
  • 10. Solution Life Cycle Evolution & Innovation Software as Bits Requests for Enhancements Develop Test Release Install Qualify Operate Software Debug Version Users Service Usages & Feedbacks Develop Test Operate Internet Service Debug Users 10
  • 11. Google Apps Constant stream of innovation 60+ major feature releases each year 11
  • 12. The Amazon AWS pace of Innovation Simple Storage Service (S3) 13 Mars 2006 Simple Queuing Service (SQS) 11 Juillet 2006 Elastic Cloud Computing (EC2) 23 Aout 2006 Flexible Payment Services (FPS) 2 Aout 2007 Simple DB DevPay 3 major 13 Décembre 2007 16 Décembre 2007 Cloudfront Innovations Elastic Block Storage (EBS) 20 Aout 2008 18 Novembre 2008 Elastic Map Reduce per year Virtual Private Cloud 2 Avril 2009 26 Aout 2009 Relational Database Services (RDS) 27 Octobre 2009 Versionning for S3 8 Février 2010 Simple Notification Services (SNS) 14 Avril 2010 12
  • 13. Evolution of Computing Models SLA 99.999 99.9 Always On Scaling Vertical Horizontal Hardware Custom Enterprise Commodity HA Model Hardware Software Software Centralized Decentralized Distributed Centralized Shared Consumption Service Service Self-service Mainframe Enterprise Cloud Source: Randy DIAS – www.cloudscaling.com 13
  • 14. As a guiding light 14
  • 15. AWS uses non-Enterprise IT patterns Enterprise SLA Target 99.999%(pretend) 99.95%(realistic) (Uptime) SLA Actual 99.9%(if lucky) 99.9%(or more) Scaling Vertical Horizontal Scale Engineering Hardware Vanity Commodity Hardware Hardware Commodity Operational HA Model Use Hardware & pray Use software HW Excellence & plan for failure Software Arch Centralized & brittle Decentralized & isolated fault domains Consumption Model Call the help desk Self-service & APIs Automation 1 admin per x00 srv 1 admin per x0 000 srv 15
  • 16. Essential Understanding Scale Engineering 1990’s Big App 2010’s Big App in the Enterprise on the Internet 100K users? 800M+ users ‘‘ The cloud lets its users focus on delivering differentiating business value. ’’ Werner VOGELS CTO, Amazon 16
  • 17. A Continuum of Services Cloud Computing SaaS Platform Infrastructure Rented Application CRM,ERP… Software Cpu, storage ‘‘Run’’ as used €/user environment €/cpu/hour, €/Gb, €/Gbps Contract based Virtual machine on user features based contract subscribe develop & run The solution already start & run No ownership is a service but full control Business Operations user App dev Contract based on APIs & tools After the development the solution is a service 17
  • 18. A Continuum of Services Operations App dev Business users IaaS PaaS SaaS Infrastructure Platform Application as a Service as a Service as a Service low high Productivity high low Control detailed (per hour…) macro (user/mois…) Billing – Pay per use difficult easy Cost Predictability 18
  • 19. Public vs. private cloud : Access vs. Ownership Provider of Public Public Cloud Cloud Public Access Private Access Private Cloud Virtual Private Cloud Private Third-Party Ownership Ownership 19
  • 20. Public Cloud CAPEX Outsourced Operations OPEX Economy of scale Very Automated attractive Operations prices Cloud Mutualization Computing Immediate Massively Availability elastic Self-service Virtualized resources resources available everywhere 20
  • 21. Private Cloud CAPEX Outsourced Operations OPEX Economy of Scale Very Automated attractive Operations prices Cloud Mutualization Computing Immediate Massively Availability elastic Self-service Virtualized resources resources available everywhere 21
  • 22. 22
  • 23. 23
  • 24. Why a Private Cloud? Private Cloud The Security Trusted Public Clouds don’t meet Cloud Data our requirements Localization Confidentiality A step to prepare the use of a Public Cloud Carefully Design Virtualization • Interoperability • Portability Automatisation • Service Provisioning & Monitoring Self-provisioning • Governance / Billing to prepare to an hybrid cloud model 24
  • 26. Impacts on IT organizations 26
  • 27. IT Economy Standard Standard for large Standard for the sector Differenciation enterprises in the sector leaders Decisions based on costs • Decisions based on Business Value • Faster (Time to Value) Standard Solutions • Open for the next steps Costs of projects Build / Entry Run A Measurement Culture Business Indicators whenever possible Replacement / Exit 27
  • 28. IT organizations must change A Capacity oriented IT org Data Centers X 000 m.d. for projects Process IT Standards Demand Management Build & Run A Business Services Business Services & KPIs Less technology selection & oriented IT org more business support Focus will shift to Business Integrating, monitoring & supporting Internal & external services empowerment. Value through governance, orchestration Encourage Innovation or & innovation Expect to be bypassed ! Short Cycles – Dynamic service provider
  • 29. Cloud Computing & Innovation Culture of Preliminary Analysis 10-15 years ago, Limitation: Our capability to elaborate ROI studies experimenting was expensive Afraid of: Errors in ROI studies Experimenting costs as much as More value for the time spent More value for the euro spent (or sometimes less than) Limitation: Our capability to manage experimentations the analysis Afraid of: Have lost an opportunity to experiment Culture of Observation allowing fast learning and adjustments 29
  • 30. IT role in business leverage of technology Business’s use of Business technology Business self- self- provisioned provisioned Business self- provisioned IT provisioning of IT technology for provisioned business Business self- Business provisioned self- provisioned Business self- provisioned Innovation will x3 from 5% to 15% Vendor mngt will x2 from 10% to 20% Enterprise Arch will x2 from 10% to 20% Source: Risk mngt will increase from 10% to 15%
  • 31. 31
  • 32. 32
  • 33. Questions Feedback Together. Free your energies www.capgemini.com