Cloud ComputingCloud 9 or Smoke Screen?

PRESENTED TOAmerican Public Human Services AssociationIT Solutions Management for Human Services

September 01, 2009 Bill PerlowitzVice President Advanced TechnologyWilliam.Perlowitz@Apptis.com703.293.6731

http://www.linkedin.com/in/wperlowitzTwitter BillPerlowitz

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About Apptis

► Founded in 1983 as Computer Management & Consultants, Inc.

► Privately held, headquartered in Chantilly, Virginia

► 1,500 professionals in 33 states and 5 countries

► 2008 revenues of $816 million

► Washington Technology 2009 Top 100 government prime contractor ranking #50

► Three service sectors with Public Sector focus: Health Solutions, Defense and National Security, Federal Civilian

CAPABILITIES

► Network Engineering

► Software Engineering

► System Engineering

► Information Assurance

► Enterprise Management

► Program Management

APPROACH

► Managed and performance-based

► IT consolidation that reduces costs

and enhances performance

► Standardized, open architecture

solutions that enable interoperability

► Robust program management

and security integrated into

every solution

THE ADVANCED

TECHNOLOGY GROUP

(ATG) DRIVES BEST

PRACTICES ACROSS

THE COMPANY AND

LEADS THE

DEVELOPMENT OF

COMPETENCIES AND

MULTI-DISCIPLINARY

SOLUTIONS

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What is Cloud Computing?

► 20+ working vendor-neutral definitions to be found

► 2 page definition National Institute of Standards and Technology http://csrc.nist.gov/groups/SNS/cloud-computing/

“Cloud computing is a model for enabling convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction. This Cloud model promotes availability and is composed of five essential characteristics, three delivery models, and four deployment models.”

► Five Essential NIST Cloud Characteristics:

1. On-demand self-service

2. Ubiquitous network access

3. Location independent resource pooling

4. Rapid elasticity

5. Measured service.

Note: Cloud software takes full advantage of the Cloud paradigm by being service oriented with a focus on statelessness, low coupling, modularity, and semantic interoperability.

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Cloud Computing: How Did We Get Here?

Source: Forrester Research, Inc.

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Cloud Macroeconomics

► First round winners:► Hardware vendors; best global demand

since 1990s► Later rounds: ► Fewer buyers with high hardware

demand can dictate technology and margins

► Commoditization of software and operating systems, shift to open source

► Software Business Model – tying to # of users of cores will be difficult, no up-front fees, no maintenance fees

► Usage based payment► No user hardware investment or

maintenance► Possible user reduction of OS &

Software licensing fees► Developing economies will leapfrog

Worldwide "Cloud Computing" Google Queries

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5

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15

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25

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1 20

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Jun

22 2

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Jul 1

3 200

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200

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Aug 2

4 20

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4 20

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Oct 5

2008

Oct 26

2008

Nov 16

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Dec 7 2

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Dec 28

2008

Jan

18 2

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Feb 8

200

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Mar

1 2

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Mar

22 20

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Apr 1

2 20

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3 20

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24 2

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Jul 5

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Date

Qu

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Cloud 9 or Smoke Screen?

Gartner Hype Cycle 2008

Source: Gartner (July 2008)

Source: Google Trends (July 2008)

The Panacea for Most IT Ills

Cloud Computing: Are We There Yet?

Salesforce.com Outage Inconveniences Customers

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The Industry and Cloud Computing *

► Worldwide Cloud Computing markets to reach $160.2 Billion by 2015

► By 2012 Intel predicts that some 20 to 25 percent of its server chips will be dedicated toward data centers that power Cloud Computing.

► The federal government currently spends almost half of its $70 billion IT budget on infrastructure, costs that could be significantly reduced by shifting to software and infrastructure as a service.

► Clouds are here to stay …many research organizations will transition to private/public Cloud infrastructures for elasticity and cost-efficiency in their data analysis work.

► The Office of Management and Budget will unveil its storefront for Cloud Computing services in early September. Industry and government sources say federal chief information officer Vivek Kundra is eyeing Sept. 9 at the Gov 2.0 Summit in Washington as the public launch of one-stop shop for Cloud Computing services.

* See page 22 for complete source information

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Federal Cloud Computing Initiative Governance

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Cloud Computing: The Reality

► Federal agencies are confused about the Cloud: IT managers do not share a common understanding of the technology While 13% say their agency is using Cloud Computing:

► 44% report using database Cloud applications

► 42% report using document management Cloud applications

► 28% report running a virtualized server environment in house

► Federal IT executives report confusion over exactly what is and what is not Cloud Computing

► Federal agencies are not alone. Few industry organizations have moved beyond the Cloud discovery phase

IT managers in government and industry share the same Cloud forecast:► 76% agree that the Cloud is “here to stay”

► 63% believe the Cloud is the “key to reducing IT expenses”

► This slide adapted from MeriTalk 2009 Cloud Consensus Report http://www.meritalk.com/2009-cloud-consensus.php

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Why Would I Want to Use a Cloud?

► Cost and Sustainability

► Agility

► Ease of Use

► Reliability

► Scalability

► Location Independence

► Centralization

► Green

► Business Continuity/Availability

► Users will increasingly resist constraints on their use of technology

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What Is Preventing Me From Using Cloud?

► Cloud IS NOT: VIRTUALIZATION Mature enough for enterprise deployment Appropriate for all parts of all applications An architecture (best practices for implementing and using technology resources) A shortcut to avoid creating an architecture A fix for architecture A fix for security Open and interoperable (at the moment)

► Technical Porting legacy applications and databases is NOT trivial Multi-tenancy Metadata driven business logic SOA

► Policy Need to develop and baseline performance metrics and establish monitoring Pay-as-you-go fees

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Cloud Computing Taxonomy

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Cloud Computing End User Use Cases

End User to Cloud

Enterprise to Cloud to End User

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Cloud Computing Enterprise Use Cases

Enterprise to Cloud

Enterprise to Cloudto Enterprise

Private Cloud

Changing Cloud VendorsHybrid Cloud

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Can the Cloud Be Secured?

► Network perimeter defense no longer applies► Cloud Computing introduces a new set of security challenges► Security strategy must account for all layers and tiers of the

Cloud environment► Employ defense in depth► Don’t forget the basics!► Must consider compliance issues (e.g., HIPAA)► Issues to address:

Privileged user access Regulatory Compliance Data Location Data Segregation Long Term Viability Recovery Investigative Support

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Example Cloud Operational Cost

► Amazon EC2 CPU pricing:

► Apptis Federal portal demonstration project initiated in November, 2008► Gained security concurrence on December 22, 2008► In January, 2009, a non-production stand-alone prototype portal overlaid onto a

commercial Cloud provider, demonstrating that execution on a commercial Cloud environment without changes to the code base was possible

► Initial performance testing of the unmodified and un-tuned system with the minimum configuration of 8 CPUs achieved 2,600 concurrent users with 90 data element application registrations at a cost of $2.42 including software

Standard Instances Linux/UNIX Windows

Small (Default)Large

Extra Large

$0.10 per hour$0.40 per hour$0.80 per hour

$0.125 per hour$0.50 per hour$1.00 per hour

High CPU Instances Linux/UNIX Windows

MediumExtra Large

$0.20 per hour$0.80 per hour

$0.30 per hour$1.20 per hour

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How Should I Use the Cloud Today?

► Surge Utilized when the IT infrastructure is not adequate to support an increase in

demand or volumes Removes the need to acquire IT infrastructure that sits idle or is under utilized

► Public Information Static information that is accessible by the public, visible today but housed within

the IT boundaries of the enterprise

► Test and Development Environments Development Environments Project Specific, Limited time use, Version control, Non production data Test Environments Availability, Stress and scale, Integration, Configuration Mgt

► Web Services► Planning Disaster Recover and Continuity of Ops► Encrypted Data storage

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Resources

► TechAmerica Cloud Computing Committee http://www.techamerica.org/cloud-computing, Jennifer Kerber, 703-284-5337, Jennifer.Kerber@techamerica.org

Cloud Computing (Administration) Transition Paper 01/15/2009

► Cloud Security Alliance http://www.cloudsecurityalliance.org/ ► Cloud Computing Interoperability Forum http://www.cloudforum.org/ ► GovLoop Groups

Cloud Computing http://www.govloop.com/group/cloudcomputing?page=1#comments Cloud Computing | SOA | SaaS http://www.govloop.com/group/SaaSGov?page=1#comments Local Governments Using Cloud Services/SaaS http://www.govloop.com/group/localgovernmentsusingcloudservicessaas

► Google groups Cloud Computing http://groups.google.ca/group/cloud-computing Use Cases http://groups.google.ca/group/cloud-computing-use-cases?lnk=srg

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Questions

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The Industry and Cloud Computing (footnotes)

► Worldwide Cloud Computing markets to reach $160.2 Billion by 2015, Research and Markets report Worldwide Cloud Computing Market Shares, Strategies, and Forecasts, 2009-2015, 08/06/2009

► “By 2012 Intel predicts that some 20 to 25 percent of its server chips will be dedicated toward data centers that power Cloud Computing.” Jason Waxman, General Manager of High-Density Computing, Intel, quoted on eWeek.com 02/17/2009

► “The federal government currently spends almost half of its $70 billion IT budget on infrastructure, costs that could be significantly reduced by shifting to software and infrastructure as a service.” Vivek Kundra, Federal CIO, quoted on NextGov.com 07/15/2009

► "Clouds are here to stay …many research organizations will transition to private/public Cloud infrastructures for elasticity and cost-efficiency in their data analysis work.” Peter Tonellato, senior research scientist at Harvard Medical School's Center for Biomedical Informatics, quoted on InformationWeek.com, December 03, 2008

► “The Office of Management and Budget will unveil its storefront for Cloud Computing services in early September. Industry and government sources say federal chief information officer Vivek Kundra is eyeing Sept. 9 at the Gov 2.0 Summit in Washington as the public launch of one-stop shop for Cloud Computing services.” Reported on Federal News Radio, wtop2.com, 07/31/2009