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Cloud Computing –The Value Proposition

Wayne ClarkArchitect, Intelligent Network ServicesCisco Systems, Inc.

North Carolina Digital Government SummitSeptember 3, 2009

Wayne ClarkArchitect, Intelligent Network ServicesCisco Systems, Inc.

North Carolina Digital Government SummitSeptember 3, 2009

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The Evolution of Computing Architectures

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Service bureaus Service bureaus

Time sharing services Time sharing services

ASPs ASPs

Grid Computing Grid Computing

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IT resources and services that are

abstracted from the underlying

infrastructure and provided

“on-demand” and “at scale” in a

multi-tenant environment

Today, clouds are associated

with an off-premise, hosted model

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Source: IDC, 10/2008

Cloud Services projected to grow at 5x the rate of current Enterprise IT spending

How Big is the Cloud Opportunity?

27% CAGR

Total Spending on Cloud-Based Services

$16B

$42B

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Source: Gartner, 2008

Hype Cycle for Emerging Technologies: 2008

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Source: Gartner, 2009

Hype Cycle for Emerging Technologies: 2009

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Architectural Service Layers of Cloud Computing

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Each layer encapsulates on-demand resources

Each layer comes with its own application development model

Three service layers:

Software as a Service (SaaS)

Platform as a Service (PaaS)

Infrastructure as a Service (IaaS)

Each layer encapsulates on-demand resources

Each layer comes with its own application development model

Three service layers:

Software as a Service (SaaS)

Platform as a Service (PaaS)

Infrastructure as a Service (IaaS)

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Software as a Service (SaaS)

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Cloud provider offers software services that are of potential interest to a wide variety of users

Users (optionally) buy subscription to software products

Software implemented by cloud provider on their own infrastructure

Instances of the software run on cloud provider infrastructure and serve multiple client organizations

Some or all of the data resides remotely

Examples: SalesForce.com, Google Mail, Google Docs

Cloud provider offers software services that are of potential interest to a wide variety of users

Users (optionally) buy subscription to software products

Software implemented by cloud provider on their own infrastructure

Instances of the software run on cloud provider infrastructure and serve multiple client organizations

Some or all of the data resides remotely

Examples: SalesForce.com, Google Mail, Google Docs

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Platform as a Service (PaaS)

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Cloud provider offers a platform upon which developers provide services that are of potential interest to a wide variety of users

Users (optionally) buy subscription to software products

Software implemented by developers to run on the cloud provider infrastructure

Instances of the software run on cloud provider infrastructure and serve multiple client organizations

Some or all of the data resides remotely

Examples: Google Apps Engine, Amazon Web Services (w/ basic web stack)

Cloud provider offers a platform upon which developers provide services that are of potential interest to a wide variety of users

Users (optionally) buy subscription to software products

Software implemented by developers to run on the cloud provider infrastructure

Instances of the software run on cloud provider infrastructure and serve multiple client organizations

Some or all of the data resides remotely

Examples: Google Apps Engine, Amazon Web Services (w/ basic web stack)

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Infrastructure as a Service (IaaS)

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Cloud provider offers IT infrastructure (compute, storage, network, etc.) to customers

Virtualization is leveraged to dynamically combine resources in order to build and deliver ad hoc systems to the customer

Customers deploy their own software environment (i.e. virtual machine images) to run on these systems

Resources used by customers can grow and shrink on demand

Some or all of the data resides remotely

Examples: Amazon Web Services (EC2 and S3)

Cloud provider offers IT infrastructure (compute, storage, network, etc.) to customers

Virtualization is leveraged to dynamically combine resources in order to build and deliver ad hoc systems to the customer

Customers deploy their own software environment (i.e. virtual machine images) to run on these systems

Resources used by customers can grow and shrink on demand

Some or all of the data resides remotely

Examples: Amazon Web Services (EC2 and S3)

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Who Are the Major Cloud Players?

APPLICATION(SaaS)

INFRASTRUCTURE AS A SERVICE(IaaS)

PLATFORM AS A SERVICE(PaaS)

IT FOUNDATION

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Phased Evolution of Cloud

Stand-alone Clouds Private Clouds Inter-Cloud

Security SLAs Interoperability

Key Challenges: Federation Portability Market

Key Challenges:

External, Off-Premise

Internal, On-Premise

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