Only public cloud

is ...

Basics ...

Certainty

Ubiquity

Product

Custom builtInnovation

Commodity

Certainty

Ubiquity

Utility

ServicesProduct

Custom builtInnovation

Commodity

Certainty

Ubiquity

Demand (user competition)

Improvement (supply competition)

Commodi

tisation

Widespread(Demand)

Feature Complete(Improvement)

Certainty

Ubiquity

Utility Services

Certainty

Ubiquity

Utility Services

BarriersProduct

Concept

Suitability

Technology

Attitude

Certainty

Ubiquity

Certainty

Ubiquity

Cost of Doing Business

Certainty

Ubiquity

Cost of Doing Business

Competitive Advantage

Certainty

Ubiquity

Marketplace

Standardised Service!

Certainty

Ubiquity

Utility Services

Factors

Certainty

Ubiquity

RelationshipsSkillsPolitical CapitalInvestment

Disruption

Certainty

Ubiquity

Transition

GovernanceTrustSecurity

Confusion

Transparency

Certainty

Ubiquity

CompetitionLock-inSecond SourceControl

SuitabilityOutsourcing

Certainty

Ubiquity

Utility Services

RISKS vs BENEFITS

Factors

Certainty

Ubiquity

Agility (Self Service)

Economies of scale(volume operations)Focus on core (outsource) Pay per use (utility) Early Products,

Hippolyte Pixii, 1830s

Utility Services of the National

Grid

New server

64 node cluster

Prev. Time(mins)

Cloud Time(mins)

72,000

130,000

3

5

Infrast.

Certainty

Ubiquity

Joseph A. Schumpeter (1883 - 1950)

Herbert A. Simon (1916 - 2001)

+Innovation

creati

ve des

tructi

on

compon

entisa

tion

Certainty

Ubiquity

Projects

Impo

rtan

ce

Limit of IT Opportunity

Quantity

Price

!P

!Q

Long tail

Price Elasticity

Co-Evolution

“Jevons Paradox”

Technological progress that increases the efficiency with which a resource is used, tends to increase the rate of consumption

of that resource.

consumption

efficiency

we all know this ...

I didn't

Only public cloud

is ...

"Cloud""Data Centre"

"Cloud"

Public

Private

"Data Centre"

Legacy

Virtual Data Centre

"Cloud"

Public

Private

"Data Centre"

Legacy

Virtual Data Centre

Commodity

"Cloud"

Marketplace

"Cloud"

Marketplace

CompetitionLock-inSecond SourceControl

Outsourcing

"Cloud"

Marketplace

CompetitionLock-inSecond SourceControl

OutsourcingAccess code / data

Semantic Interoperability

Easy Switching

Multiple Providers

Open Source reference models

Price vs QoS

"Cloud"

Hybrid

"Cloud"

TransitionGovernanceTrustSecurityTransparency

Hybrid

"Cloud"

TransitionGovernanceTrustSecurityTransparency

Access code / data

Semantic Interoperability

Easy Switching

Single Provider

Common reference modelsHybrid

"Cloud"

Public

Private

"Data Centre"

Legacy

Virtual Data Centre

Market

Hybrid

Volume Operations / Commodity

To the cloud ...

Legacy?

Certainty

Ubi

quity

Infrastructure

Scale-Up N+1 models

Certainty

Ubi

quity

Infrastructure

Scale-Up N+1 models

Scale-Out

Certainty

Ubi

quity

Scale-Up N+1 models

Scale-Out

Design for Failure

"Cloud" Architectures

"Legacy" Architectures Infrastructure

Need better hardware

Design for failure

Cloud+

Resilient VMs

Kerching ...

"Cloud"

Public

Private

"Data Centre"

Legacy

Virtual Data Centre

Market

Hybrid

Volume Operations / Commodity

Enterprise Cloud

Time

to d

eplo

y

Price per year

Differentialx 20,000

1x 15

Price per year

Differentialx 20,000

1x 15

Legacy Data Centre

Public / Private

Enterprise / VDC

Time

to d

eplo

y

x 20,000

1x 15

Efficiency

Price per year

x 20,000

1x 15

consumption

efficiency

Price per year

Efficiency

x 20,000

1x 15

Price per year

consumption

efficiency

Efficiency

x 20,000

1x 15Co

rrela

tion

: Spe

ed v

s Bu

sines

s Valu

e

Price per year

x 20,000

1x 15Co

rrela

tion

: Spe

ed v

s Bu

sines

s Valu

e

Do more, faster

Price per year

Efficiency

x 20,000

1x 15

Price per year

$740 $1500+

2x

Time

to d

eplo

y

x 20,000

1x 15

$300

Price per year

$1500+

3-5x

Time

to d

eplo

y

Certainty

Ubiquity

Joseph A. Schumpeter (1883 - 1950)

Herbert A. Simon (1916 - 2001)

+Innovation

creati

ve des

tructi

on

compon

entisa

tion

x 20,000

1x 15Co

rrela

tion

: Spe

ed v

s Bu

sines

s Valu

e

Do more, faster

3-5x Price per year

Do muchmore, faster

Ooops, bugger.

Muhahaha

"Cloud"

Public

Private

"Data Centre"

Legacy

Virtual Data Centre

Market

Hybrid

Volume Operations / Commodity

Enterprise Cloud

Hardware (40%)$12.2M

Power (25%)$7.6M

Network (15%)$4.6M

Building (10%)$3.0M

People (5%) $1.5M

Cost of money (4%) $1.2M

Software (1%): $0.3M

$220-540 per VM per year

Hardware (40%)$12.2M

Power (25%)$7.6M

Network (15%)$4.6M

Building (10%)$3.0M

People (5%) $1.5M

Cost of money (4%) $1.2M

Software (1%): $0.3M

Hardware (40%)$122 per year

Software (1%): $2.80 per year

x 20,000

1x 15

Spee

d

RelationshipsSkillsPolitical CapitalInvestment

Disruption

Price per year

Enterprise Cloud

Efficiency

Public utility markets are the

future ...

Hybrid environments are a

transition strategy ...

Enterprise clouds are niche.

Pay me more and I'll tell you the future looks

different.

No jargon

Kerching ...

Resistance is futile ...

Really?

Lightning Talks

Unconference

Unpanel

Beer & Pizza

Go Home.

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Leading Edge Forum

@swardley