Putting Grid Computing In ContextJohn C. McCarthyVice President, Asia Pacific ResearchForrester Research

Theme

Grid computing is not a unique market, but an

element in the transformation of IT

Agenda

• Who is Forrester?

• The current environment

• Defining grid computing

• Grid in the context of the broader move to Organic IT

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In 2005 IT Is In A Period Of Refine & Design

Forrester Research, June 2005 Trends “The Seeds Of The Next Big Thing”

Rapid growth in IT spending has peaked!

• The bulk of the infrastructure is in place

• Very large scale implementations are over

• Wage and services rates are in a period of deflation

• Overall capital budgets cannot sustain more growth

• Lower cost, niche new technologies dominate the agenda

The re-apportionment of IT spending

Infrastructure

App maintenanceNew devServices

1995

Infrastructure

App maintenance

Services

New dev

2000

New dev

InfrastructureApp maintenance

Services

2005

The skills needed in IT are changing dramtically

IT industry takes mature attributes

• Vendors cut costs/build out GDM

• Operational efficiency becomes paramount

• Suppliers invest in solution accelerators/frameworks

Shifting IT services economics

Clients costs

Vendors traditional costs

Economies of scaleBest practices

New pricing reality

OffshoreReuseProcess

Theme

Grid computing is not a unique market, but an

element in the transformation of IT

Vendors are pitching new ideas:

DSI

Utility Computing

These ideas have many names ...

• Utility computing (confusing and incomplete)

• Grid computing (has lost its specific meaning)» Global Grid Forum (GGF), Globus, Enterprise Grid Alliance (EGA)

• On demand — IBM, CA, and others

• Adaptive Enterprise, Utility Data Center — HP

• N1 and Grid — Sun Microsystems

• Dynamic Systems Initiative — Microsoft

• Others

» Policy-based computing, service-centric computing, TRIOLE, Harmonious Computing, open mission-critical systems, Valumo, business blueprinting

... but are really three ideas mixed together

1. What’s the right architecture?

» Distributed versus Organic IT

– Choose based on ROI to firm

2. Should I outsource?» Location and management

– Choose based on skills, costs, strategic focus

3. What’s the pricing scheme?

» Purchase, lease, or pay per use

– Choose based on financial needs

It takes a full page table to list all the industry names...

Term Uses ArchitectureOutsourcing

PricingTransformation

Organic IT

Organic Business

Grid, grid computing

On demand,on demand computing

On Demand eBusiness

Utility Data CenterAdaptive Infrastructure

Adaptive Enterprise

N1, N1 Grid

Dynamic systems

Dynamic data center

Agile enterprise

Forrester Research

Forrester Research

HP, Sun, IBM, Oracle, DataSynapse ,Platform Computing, Entropia, UnitedDevices, Paremus, Enigmatec, and CassattCA, IBM, Sychron, Speedera Networks, Akamai Technologies

IBM

HP

HP

Sun

Microsoft

Microsoft

EDS, Unisys

Autonomic computing IBM, Enigmatec

Utility computing, utilityservices

VERITAS, Egenera, Sun, Cassatt, Paremus,Connectria, H P, IBM, BEA, and ED S

... but it takes two slides to show the table!

Adaptive computing

Managed computing

Dynamic computing

Recovery-oriented computing

VALUMO

TRIOLE

Harmonious computingBusiness blueprinting,3DVisible EnterpriseIT Utility Services

Virtual data centre

Intelligent control system

Data center automation

Hive computing

Virtual infrastructure

SAP

Merrill Lynch

Dell

http://roc.cs.berkeley.edu/

NEC

Fujitsu

Hitachi

Unisys

Connectria

F5 Networks

VIEO

Tsunami Research

VMware

BladeLogic, Opsware, and Etagon

Term Uses ArchitectureOutsourcing

PricingTransformation

“What do you think the term ‘grid computing’ means?”

38%

32%

30%

20%

15%

11%

15%

Clustered computing, where severalcoupled servers perform as one serverData grids for efficient sharing of data

across several different locations or systems

Base: 149 North American companies(multiple responses accepted)

Confusing term that has severaldifferent meanings

Same or similar to utility computing

Massively parallel processing of numericworkloads across several computers

Same or similar to virtualizationof IT resources

Don’t know

Source: May 18, 2004, Trends “Grid Gets Big, But The Term Is Confusing”

Resource gridEncompasses all fivekey elements of IT

infrastructure resources

Grid refers to five key elements of IT infrastructure or just one element

Compute grid:An approach to sharingcompute resources thatbuilds on somecapabilities of thesoftware andmanagementelements

Data grid:An approach to sharing

data or storage resourcesthat builds on some

capabilities of thesoftware andmanagement

elements

Software

Storage

Network

ComputingManagement

Theme

Grid computing is not a unique market, but an

element in the transformation of IT

CIOs and businesspeople are waking to a new reality

• The technology costs too much…

• …and doesn’t deliver on its promise

• While vendors offer warmed-over technology repeats

CRMERP

Why is there a new architecture? Selfish assetsHR

PeopleSoftSAP SiebelSoftware:Monolithiccode

SunHP DellHP

Servers:Single-purposeservers

IBMEMCHitachi

Storage:Isolateddisks

InternetWANLANNetwork:Fragmented

G3,500 firms find storage difficult to manage

Much of the storage bought is not used

“How much are you spending on integration?”

Base: 50 companies(all values in US$)

Minimum:$300,000

Minimum:$300,000

Maximum:$30 million

Maximum:$30 million

Median:$4.8 million

Mean:$6.4 million

Mean:$6.3 million

Median:$3.5 million

20042002

Organic IT is:

► IT Infrastructure that automatically shares and manages reliable virtualized software, processors, storage, and networks across all applications and business services

Abstraction is the key to Organic IT

LED traffic light

Multiple LEDs

Bulb traffic light

Single Filament

72.4°

Thermostat

Air Conditioning

Furnace

Humidifier

The solution? Four innovations lead to Organic IT - shared IT infrastructure

CRMERP HR

PeopleSoftSAP SiebelSoftware:Modular

SunHP DellHP

Servers:Shared

IBMEMCHitachi

Storage:Pooled

InternetWANLANNetwork:Unified

Web services, SOA,composite apps

Fabricswitch

CPU RAM CPU RAM

Net Fibrechan.

Server virtualization,compute grids.

Storage virtualization,SMI-S management

Automation and virtualization

Result? Barriers to business agility drop

Proactive management software is at the heart of Organic IT

SoftwareFlexible, modular code

Computing

Shared, flexible servers

Storage

Pooled, networked disks

Network

Organic management

Proactive, policy-based mgmt. and automation

Unified, flexible links

Crystallizing the savings from Organic IT

1. Massively higher utilization

» From today’s 10%-20% to 70%-80%

» Result: Cut purchases in half

2. Dramatic increases in IT labor efficiency

» From today’s 6TB to 600TB

» Result: Double IT staff efficiency

3. Rapid response to business needs

» From months to hours or days

» Result: Faster time to market

Server virtualization

13%

51%

36%29%

52%

19%24%

38% 38%

0%

20%

40%

60%

Already using Aware Not aware

Korea Japan NA EU

Base: 603 infrastructure decision-makers at North American enterprises *Base: 234 infrastructure decision-makers at European enterprises

*Base: 53 infrastructure decision-makers at Japan enterprises

Automated patch management

2%

32%33%

45%

23%30%

24%

45%

0%

20%

40%

60%

Already using Aware Not aware

Korea Japan NA EU

Base: 603 infrastructure decision-makers at North American enterprises *Base: 234 infrastructure decision-makers at European enterprises

*Base: 53 infrastructure decision-makers at Japan enterprises

Data center automation (Automated server management and provisioning)

42%

45%

13%

17%

55%

28%

38%

38%

24%

0% 20% 40% 60%

Not aware

Aware

Already using

Korea Japan NA EU

Base: 603 infrastructure decision-makers at North American enterprises *Base: 234 infrastructure decision-makers at European enterprises

*Base: 53 infrastructure decision-makers at Japan enterprises

Grid computing

2%

32%33%

45%

23%30%

24%

45%

0%

20%

40%

60%

Already using Aware Not aware

Korea Japan Australia NA

Base: 603 infrastructure decision-makers at North American enterprises *Base: 234 infrastructure decision-makers at European enterprises

*Base: 53 infrastructure decision-makers at Japan enterprises

Crystallizing the savings from Organic IT

1. Massively higher utilization

» From today’s 10%-20% to 70%-80%

» Result: Cut purchases in half

2. Dramatic increases in IT labor efficiency

» From today’s 6TB to 600TB

» Result: Double IT staff efficiency

3. Rapid response to business needs

» From months to hours or days

» Result: Faster time to market

Summary

• Grid computing is not a unique market, but an element in the transformation of IT

• Economics of IT are changing

• Grid computing is one of many labels vendors are applying to the new model for IT infrastructure

• Grid is one element in a broader Organic IT approach

Selected Forrester offshore bibliography

• October 17, 2005 Data Overview “The State Of Infrastructure Adoption”

• October 17, 2005 Trends “Which Industries Are Using Compute Grids?”

• October 11, 2004 Trends “Who Is Using Organic IT Technologies?”

• August 18, 2005, Trends “Organic IT Challenges IT Organizational Practices”

• January 20, 2005, Market Overview “Decoding Grid Technology”

• May 18, 2004, Trends “Organic IT 2004: Cut IT Costs, Speed Up Business”

• May 18, 2004, Trends “Grid Gets Big, But The Term Is Confusing”

Thank you

For a copy of the slides and our latest Grid Computing Research

please logon to

www.forrester.com/GFK

John C. McCarthy

+1 617/613-5710

or jmccarthy@forrester.com