The Datacenter Transformation

The Datacenter Transformation

Mobility, Collaboration and Cloud Computing Driving a Change in IT Delivery Models

Mayank Kapoor, Industry Analyst – Datacenter and Cloud ComputingInformation and Communication

Technologies31 May 2012

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Today’s Presenter

• 5 years of research and analysis experience focused on the Asia Pacific ICT market.

• As the Lead Analyst for Datacenter Services and Cloud Computing, he focuses on monitoring and analyzing emerging trends, technologies and market behavior in the Datacenters, Virtualization and Cloud Computing markets in Asia Pacific.

Mayank Kapoor, Industry Analyst – Datacenter and Cloud Computing

Frost & Sullivan

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Focus Points

1 Update on Cloud Services Market

2 The Datacenter Transformation

3 Gazing at the Crystal Ball

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What is Cloud Computing?

A pool of compute, memory and i/o resources, applications or operating environments with seemingly infinite scalability, delivered as a service over a network, be it private or public.

Deployment Models

Enterprise

Enterprise

PublicCloud

PrivateCloud

PUBLIC

PRIVATE

EnterprisePrivateCloud

HYBRID

PublicCloud

COMMUNITY

Enterprise2

Enterprise3

Enterprise1

CommunityCloud

Characteristics

On Demand, Self-Service

Pay As You Use, Metered Consumption

Rapid Elasticity, Scale Up/Down

Shared Pools, Illusion of Infinite Resources

Broad Network Access using Standard Internet Protocols

Service Types

Software as a ServiceSoftware delivered through the

public or private network

Platform as a ServiceDevelopment platform as a

service

Infrastructure as a ServiceCompute, storage as a service

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Source: Frost & Sullivan Analysis

Cloud computing is witnessing growing traction in Asia Pacific

Cloud Computing is my # 1 priority for current/future fiscal year

Public Clouds are less secure than private clouds

There is more pressure on me from the top management to procure Cloud services

I believe that Cloud computing is going to shrink IT teams and make some jobs redundant

At this stage, the risks of cloud far outweigh the benefits

6%

4%

8%

5%

3%

20%

19%

28%

16%

21%

36%

38%

33%

33%

39%

27%

28%

25%

35%

30%

11%

11%

6%

11%

7%

Strongly disagre Somewhat disagree Neutral Somewhat agree Strongly agreeN = 600

Perception of Cloud Computing

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Almost a third of businesses in APAC today use Cloud Computing

N = 600

Adoption level has increased by 6 percentage points from Aug/Sep 2010. Hybrid Clouds offering a blend of cost savings and security witnessed highest

adoption.

Adoption of Cloud Computing by Delivery Model

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Australia Leads Cloud Adoption in APAC

Adoption of Cloud Computing by Country

Singapore

Malaysia

India

Hong Kong

China

Australia

68%

67%

76%

74%

87%

57%

32%

33%

24%

26%

13%

43%

Not adopted Adopted N = 100

Malaysia and Singapore have emerged as the next hot beds of adoption.


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Business Drivers for Data Center Transformation


Collaboration enabled by rich media

Empowered users demanding anytime,

anywhere access

Global availability

Regulatory Compliance

Emergence of Utility based computing models (Cloud)

Data CenterTransformation

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Why is the Transformation Important?


Speed End-to-end Management

Alignment

Enhancement

• Increased Business Agility

• Self-service Capability• Enhanced Resource

Utilization and Performance

• Consumption-based Metering

• Charge Back and Allocation of IT Costs

• Capacity Planning

• End-to-end Performance Monitoring

• SLA Measurement

• Service Catalogs• Provisioning Templates• Reduced Human Intervention

& Error

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Datacenter Transformation Roadmap

Consolidate• Resource

Virtualization

Optimize• Shared resource

pools• Efficiency

improvement

Automate

• Self-service catalog

• Resource Orchestration

• Life cycle management

• Metering and billing

Manage

• Monitoring• Reporting• Analytics


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State of Virtualization in Asia Pacific

Although early adopters used server virtualization primarily for test and development environments, more customers today are moving production workloads to a virtual

machine.

Have you virtualized your server infrastructure?

At what stage are you in server virtualization journey?

67%

33%

Yes NoSurvey done with IT decision makers >500 employees and at least 5000sq ft. of RFS

N = 328

15%

24%

15%

33%

13%

Running Pilot Projects (Pilot)Running a few Test / Dev environments (Nascent)Running most Test / Dev environments (Evolving)Running a few production environments ( Extensive)

N = 221


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The Key Components


Automation, Provisioning, Orchestration, Lifecycle Management, Metering Billing and Portal

End-user

Services To Customers

End-user End-user End-user

Software as a Service, Infrastructure as a Services; Platform as a Services

Cloud Enablement Tools

Servers, Storage, Networking, Routers, Switches, etc.Datacenter Hardware

Systems Integration, Support Services, Training, Network Services, Outsourcing and Connectivity

IT Services & Connectivity

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Critical Success Factors


No need for application re-write or

Hardware upgrade

Need to enable

Collaboration

Seamless Integration

Ready Templates

Set-upTime

User basedPricing

Ease of Usability

Enable cloud users to Collaborate with each other ; “ mimic” web 2.0 capabilities

Easy interface so that usersDon’t need to be trained ; Intuitive interface

While the upfront pricing models Are largely CAPEX based, long run pricing models will beUser based with shared riskand rewards

Rapid provisioning and implementation

Off-the-shelf templates to ensure customers start seeing ROI right away. At the same timeit needs allow flexible servicecreation

Critical

Success

Factors

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• Business skills such as project, relationship management will take front-seat • Cloud will run on commoditized, open source platforms with stringent SLA’sIt is all about Business

• IT automation will render several “dull” IT jobs obsolete• Skills in demand will include technical architects, vendor relationship

managers, risk management professionalsIT departments will evolve

• SMB’s have an unique ability to scale quickly and obtain access to enterprise class infrastructure

• Advent of start-ups that live in the “Cloud” with no infrastructure

SMB’s will have access to Enterprise class ICT

resources

• MNC’s and Conglomerates will offer “IT as a Service” both internally and potentially to external customers as well

• Drastic improvements in efficiency, effectiveness and measurability of IT

Conglomerates will become “Service

Providers”

• “Browser” is the software and “Internet” is the network• Ubiquitous access from any device, anytime, anywhere, any networkBrowser is the software

Cloud Prediction: There will be a shift in how IT functions

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These are three critical areas where we expect considerable industry efforts in the future and in a recursive sense are essential for Cloud computing to become mainstream

Standards Development • Use cases • Reference implementations• Publishing of test results

Risk Management Frameworks • Adequate security controls• Vendor assessment standards• Stringent privacy laws on data integrity• Third-party audits and review

Improvement of SLA’s • More heterogeneity in SLA’s• SLA’s with clear response time • Financial liability • Robust privacy standards

Cloud Prediction: Significant efforts will be devoted to Standards, Security and SLA’s

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Competitive Structure?

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For Additional Information

Donna JeremiahCorporate CommunicationsAsia Pacific+61 (0) 8247 8927 [email protected]

Carrie LowCorporate CommunicationsAsia Pacific+603 6204 [email protected]

Jessie LohCorporate CommunicationsAsia Pacific+65 6890 [email protected]

The Datacenter Transformation

Business

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