The Cloud Revolution - Philippines Cloud Summit

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The Cloud Revolution

Randy Bias, Founder & CEO, Cloudscaling!PH Cloud Summit!

September 25th, 2014

@randybias

Business Transformation with Cloud Computing!

http://twitter.com/randybias

Introduction

Who

Scale Builder!3 * 100k+ sq ft datacenters @ 14MW each!1000s of servers, 100s of switches!

Leader in Production Cloud Deployments!1st OpenStack Public Compute Cloud in U.S.!1st Public Compute Cloud Korea for KT uCloud!

(CloudStack)!1st Public Storage Cloud in Korea and 2nd in U.S.!

OpenStack Foundation Board of Directors!Top 10 Cloud Computing Pioneer

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Today’s Goals

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The Cloud Revolution!

Cloud and the Enterprise!

Cloud and the Philippines (+APAC)

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2

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What is Cloud?

What is Cloud Computing?

?On demand services?

Self-service Web Apps?

IT-as-a- Service? Virtualization?

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... could it be something else?

?On demand services?

Self-service Web Apps?

IT-as-a- Service? Virtualization?

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Disruption?

Enterprise Computing Approach

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Cloud Computing Approach

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Cloud Computing’s Real Pioneers

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Cloud is Fundamentally Disruptive

Disruption Disruption Disruption

EnterpriseComputing

"Client-Server"

CloudComputing

"Web"

MainframeComputing

"Big Iron"

1960 1980 2000 2020

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Example Cloud Technology

Google’s MapReduce!re-written from scratch as open source!

Google's hardware reference architecture!Enterprise’s wouldn’t consider 10yrs ago!Hadoop market is destroying traditional BI!

21B by 2018 w/ 54% CAGR!OpenStack on a similar trajectory!

… for private cloud!Many others:!

Cassandra, Riak, Mesosphere, Docker, and many more

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Hadoop Reference Architecture

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Google’s Hidden Power? Map Reduce

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The Simplified Model of Cloud

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Cloud Comes in Many Forms

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SaaS for end users

PaaS for app developers

IaaS for dev/ops

Public Private

IaaS Growth

Enterprises Love AWS

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AWS Still A Juggernaut*

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* SOURCE: Huan Liu http://huanliu.wordpress.com/2014/02/26/amazon-ec2-grows-62-in-2-years/

http://huanliu.wordpress.com/2014/02/26/amazon-ec2-grows-62-in-2-years/

Yes, That’s a Log Scale

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AWS Revenue Run Rate - Feb’14

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Math:!2.97M VMs * $1512/year == 4.5B!

(for EC2 alone)Assumptions:!• $.175/hr avg cost based on m1.large!• 720 hours in a month (keeping it simple)!• EC2 is probably ~70% of all AWS revenues!

• http://huanliu.wordpress.com/2014/02/26/amazon-ec2-grows-62-in-2-years/

$6.4B

http://huanliu.wordpress.com/2014/02/26/amazon-ec2-grows-62-in-2-years/

Cloud & Enterprise

What do Enterprises Care About?

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Cloud Computing!

Agile Development!

Business !Agility!

Operational Discipline!

ACCELERATING!TIME TO VALUE!Continuous

Integration

Continuous Testing & Delivery

Agile Methodologies

IaaS / PaaS !!

Public / Private / Hybrid !!

Big Data / Analytics

!!

Public APIs

Continuous Deployment

DevOps Data Center & App Automation

Line of Business

Enablement

New App Initiatives

(Mobile, SaaS, etc.)

Data Center Modernization

Path to Greater Agility? DevOps!

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Software

Develo

pment Quality

Assurance

Technology Operations

DevOps

DevOps Explained

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Continuous Integration

Application Automation

Continuous Deployment

OperationsOODA Loop

Agile SW Development

Continuous Delivery Cycle

Feed

back

and

Lea

rnin

g

DevOps Simplified

Application Automation!Apps Scale Themselves Up / Down!Apps “Route Around Failures” In Infrastructure!Apps Are Infrastructure-Aware!Apps Manage Their Own Data Replication/Redundancy!

Continuous App Delivery Methodology!Continuous Integration!Continuous Deployment!Continuous Delivery!

Net Result: Cloud-Native Applications!

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Ops OODA Loop

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Cloud-Native Shifts Uptime Responsibility

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Enterprise Model Cloud Model

99.9%!Applications!

(8h46m down)

99.999%!Infrastructure!

($$$$)

99.999% Applications!(5m down)

99% Infrastructure!

($$)

Cloud-Native is a Mindset Change

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Attribution: Bill Baker, Distinguished Engineer, Microsoft

bowzer.company.com!(scale-up)

web001.company.com!(scale-out)

(Virtual) Servers *are* cattle

Cloud-Native is the Opportunity

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Traditional Applications

2012 89M

2015 139M

+56%

New Scale-Out Applications

2012 5M

2015 32M

+540%

Source: EMC, IDC, Gartner, AWS

Cloud-Native is the Future

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0M

125M

250M

375M

500M

2012 2015 2018

These New Apps Require New Infra

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LEGACY & TRADITIONALAPPLICATIONS

CLOUD-NATIVE APPLICATIONS

Silos Physical

Clusters Virtualized

Scale-Out Elastic

APIsApp

HWHW HW HW

HW HW HW

HW HW HW

App App App

App

HW

App

HW

App

HW

App

Matching Apps to Infrastructure

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Enterprise Virtualization

Don’t Migrate

Could Migrate

Cloud Possible

Cloud Native

$1x $4-8x

Legacy Custom

Apps

Websites, Dev/Test, Collaboration Apps,

Packaged Software (ERP/CRM)

Scale-out Web Apps, Apps Hosted on PaaS,

Big Data, Mobile Apps, etc

Cloud Infrastructure

NEW SCALE-OUT APPS (ELASTIC)

LEGACY APPS (INELASTIC)

Where is the Urgency for Enterprises?

“Seventy percent of the companies that were on the Fortune 1000 list a mere 10 years ago have now vanished – unable to adapt to change,” states Forrester analyst Craig Le Clair

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Enterprise & Public IaaS

Essential Understandings

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“The cloud lets its users focus on delivering differentiating business value ... ”!-- Werner Vogels, Amazon CTO

“... get into the [Google] mind-set ... robustness ... has to be designed into your software ... assume that the hardware [is] ... unreliable and broken ... at any point.”!-- Adrian Cockcroft, Netflix Chief Cloud Architect

Netflix in Detail

4.3B, 2000 employees!100% bet on AWS!Transitioned from legacy enterprise DC model to “cloud native” model!Entered entirely new markets!

EU, APAC, South America!No boots on ground, no investment!

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Samsung in Detail

320B, 400,000 employees!Samsung global mobile services!

Using AWS EC2 globally and in U.S.!Using KT uCloud in South Korea!

Example Apps!ChatOn messaging application embedded in all Galaxies!Other mobile applications developed on EC2

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Cloud, Philippines, and APAC

Microsoft Philippines Cloud Report*

Top 3 reasons for cloud adoption!Supporting unpredictable workloads!Increasing business / IT flexibility!Reducing hardware costs!

Interest primarily in private and hybrid!Security still top cloud adoption concern!

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Source: Microsoft Accelerating Cloud in the Philippines Infographic

KT uCloud

First public cloud in KR; one of first in APAC!Early adoption was *very* slow!Ultimately, modern apps drove adoption:!

Online gaming, web startups, mobile applications!Took 2-3 years to ramp up!Impediments to adoption:!

Server hugging!Government regulation (KISA audit standards)

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Public Cloud Service Growth > 23%

http://www.idc.com/getdoc.jsp?containerId=prUS24298013

5 times that of the overall IT industry

IaaS is $4B and Growing Fastest

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Emerging Markets are Growing Fastest



IDC’s APEJ Cloud End-User Survey73% of all companies are already using or planning to use cloud services within the next 12 months.!!

More than 25% of organizations expect that within five years, the majority of their IT capability will be delivered through public cloud services and that within three years, they will access 55% of IT resources through some form of cloud — public, private, or hybrid.

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http://www.idc.com/getdoc.jsp?containerId=AP6684423V

Brief Word on Hybrid Cloud

Hybrid-first Cloud Strategy

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HYBRID CLOUD

PUBLIC CLOUDPRIVATE CLOUD

OCS

Private Clouds Must be Interoperable with Public Cloud Leaders

Interoperability means: SLAs, QoS, TCO, Feature Parity, & Same Behavior

Hybrid is the Future

Unfortunately … it’s largely IN the future!Application portability driving hybrid cloud!No standards yet or ability to have interop.!Hybrid success stories are hard to find!OpenStack has best chance to fix this

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Wrapping Up

Cloud Fundamentally Transformative

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Business Agility

Cloud Native Apps

DevOps

Enablement

Elastic Cloud

Architecture

Hybr

id to

Pub

lic

Q & A