How Cloud Changes Business Expectations

Editor's Notes

• #2: My name is Peter Sharples, I manage CA’s Virtualisation and Cloud CSU in ANZ. With the emergence of Cloud the ICT landscape is changing, are you? Today we are going to explore the changing nature of business in a Cloud world and look at what CA, the industry and you, our customers are doing and need to do to survive.
• #3: CA Technologies is very committed to cloud computing. We’ve made massive investments in cloud computing—both through nearly 2bn in acquisitions and our own organic development—and are working with many of our customers as they travel on the journey to cloud. CA has invested in Cloud based authentication solutions such as Arcot – authenticating over 150M Visa and Mastercard transactions per day. For those with an iPad or iPhone, search the appstore and you can download the free authentication app for Visa and Mastercard. Oblicore , to provide our customers with the ability to monitor and manage the contractual and service performance of Cloud providers. And finally 3Tera Applogic – mark my words, the most disruptive technology you will see enter the Australian ICT landscape this. Complete application virtualisation over commodity grid infrastructure. Forget the hypervisor, there is a new kid on the block. May 16, 2010 [Presentation Name via Insert tab > Header & Footer] Copyright © 2010 CA
• #4: I am covering off 3 areas today endangered species is exactly that. What cloud computing is doing to the role the IT department, who will win and who will possibly loose. You are demanding the industry changes, but are you ready for it? If this cloud thingy is so easy, then why aren’t we all doing it? We will examine the pitfalls, how important they really are to your business and how to mitigate them. Then I will challenge you all. What if there was another way? We will look at Applogic, the faster-track to cloud. Your application, your way and the power of Activity as a Service. Cloud computing is causing fundamental changes on the expectations the business had of IT and also on IT’s ability to drive innovation. May 16, 2010 [Presentation Name via Insert tab > Header & Footer] Copyright © 2010 CA
• #5: In the book ‘The Big Switch,’ Nicholar Carr compares cloud computing to the changes in the utility industry. Another analogy I like to use is that of the Ford Motor Company (another company referenced in The Big Switch) When Ford first began as a company, with the creation of the Model T, they invested in hiring the best people, the best craftsmen and that was their strategy for building the best cars. Next they moved to an entirely different model, with the innovation of the assembly line. They took the emphasis off the individual and focused instead on improving the process (efforts that IT organizations are putting in place around standardizing and automating processes, through implementation of ITIL and other process-improvement methodologies) Now Ford has again successfully reinvented itself (surviving a very tough downturn), by focusing on optimizing its supply chain. Today Ford focuses on its core value of car design and managing a complex network of suppliers of the various elements that comprise its cars. This is the direction that IT is going as well. Cloud computing enables IT to look at the services it provides in a new way and to consider sourcing certain services (or elements of those services) externally—while still maintaining responsibility for the ultimate service being delivered to its customers. So if you want to avoid the mistakes of other industries/ companies that didn’t move forward you need to support change. If not you run the risk May 16, 2010 [Presentation Name via Insert tab > Header & Footer] Copyright © 2010 CA
• #6: lets discuss the concept of the IT supply chain, and dig deeper into what that means to you – and what this shift in role means to you. For some time IT has lived as the sole source of IT services in the organization. When the business needed a service, they went to the IT organization. It delivered.
• #7: Then this whole cloud thing appeared, and the business now had options. And this seemed like a very simple task to consume
• #8: Instead of going to IT for everything, the business is now going to cloud alternatives – typically around IT. Worse, those external options set expectations about how fast and easy it was to get access to IT.
• #9: We at CA believe that IT is undergoing a fundamental shift. It needs to become more of a service provider to the business, selecting the best combination of internal and external delivery options where they make sense, providing the mix of secure, reliable service delivery at the appropriate cost.
• #10: Then IT becomes once again the source for business driven IT decisions – but they manage these service delivery decisions as if they were a supply chain, with the appropriate controls in place – whether delivered by an MSP, or delivered internally
• #11: So, if this cloud thing is so cheap, easy and flexible, why aren’t you doing it? Because your smart, that’s why. You recognise the risk in making Cloud decisions. What about security and privacy? They are different, and if I have my clients data in the cloud how will be it protected? Can it be protected? What about application performance? How do I manage it? Assure it? And who and how hard can I choke when things go wrong? How do I manage SLA’s? Actually scrap that, how do I find a provider who will give me SLA’s! And finally, how do I get me data into the cloud – and more importantly, how do I get it back when/if things go wrong, or the next evolution of Cloud comes along. How do I not repeat the mistakes of outsourcing? May 16, 2010 [Presentation Name via Insert tab > Header & Footer] Copyright © 2010 CA
• #12: Let’s start with a topic close to all your hearts and front of mind in any cloud discussion you have – security and data privacy. Firstly let’s define the difference: Privacy is the security of “Know”, who has access to what data, what is logged and audited and what is my compliance to standards and legislation. To address this industry has developed technologies that are now widely available as COTS solutions – including Identity and Access Management and Event Logging, Data Leakage Prevention and Authentication. Versus Security, the security of “No” – no vulnerabilities, no malicious code, no intrusions. For which there is a very mature suite of market offerings including Firewalls & gateways, AV and malware, and Physical and Virtual host protection. At the bottom of the security stack we can start by addressing public cloud offerings. A recent industry survey indicated 34 providers of public cloud infrastructure within Australia. There are also numerous varieties of SaaS available. In terms of security and privacy, these types of offerings are the lowest on the list, not to say they are bad, but as you are sharing infrastructure with numerous other organisations, you may be exposed to their weaknesses. Who will police the public cloud environments, who will insure that denial of service attacks against one of your cloud neighbours will not affect you application or business? Next we can examine Community and Hybrid Clouds, both of which have slightly higher levels of security and privacy as, as a user, you have some form of control over who you share a bed with, so to speak. And finally moving into private secure clouds and deployable applications. At this level the DNA of what cloud computing should be starts to break-down, the attributes that define a cloud that Craig spoke about, no longer necessarily apply. We need to think differently. In this realm it is purely about agility and collapsing infrastructure, not about sharing resources and pay-per use. You typically do not have the scale of infrastructure. As we move up this scale the ability to share infrastructure diminishes, the economies of scale that traditional cloud computing provides decreases and we lose the ability to apply pay per use models, Thus cost per consumption goes up. Interestingly, what we see in the market is cloud adoption going the other way. Organisations are investing in private clouds and moving toward public clouds as their risk tolerance increases. This tells thus that whilst the economies of cloud are enticing, risk is still king in your world. May 16, 2010 [Presentation Name via Insert tab > Header & Footer] Copyright © 2010 CA
• #13: So when looking at Cloud services, what will be the cost? Both in terms of dollars and performance, and are the two interchangeable? Let’s look at a typical composite application. Most typically provide some type of web front-end access to the public. All will traverse either public or private networks. Most will comprise web processing capability. All will relay on back-end systems and integrations. And some of the larger organisations on-line services will also be underpinned by mainframe processing. Now before we start to consider cloud computing, we need to get handle on this complex, composite application. Well this is CA’s bread and butter. We have the ability to base-line this application all the way from the end user experience to the back-end database tables. So enter Cloud computing, and let’s be realistic. It is not likely, nor probably feasible to move this entire application into a cloud environment. What is more likely is that discrete components of this application will be sourced from cloud providers. For example, your SAP environment may be move to an on-line SaaS ERP solution. Your database farms may be consumed into a PaaS strategy. Or you may elect to push your web front-end processing to a IaaS offering, such as the Fujitsu trusted cloud. Now each of these in their own right and with their own business case may stand-up as viable alternatives, but what complexity and performance impact will they have on the end product – the services. The application and business owners for this now become cloud aggregators, no longer managing applications and infrastructure, but a technology supply chain. But how do you manage aspects like data security and authentication? Performance ? Or SLA compliance and remedies? Working with technology providers, such as CA, we can expand the reach of monitoring and in-site into these cloud providers, measuring performance, contracts and Service Levels. Allowing weak points in the supply chain to be rapidly identified and rectified. But what if you could command what components of your application sat where? If you could move them, scale them and copy them as needed? What if your application would automatically scale to meet the business requirement? What if you could have your app, your way, with all the cost and flexibility benefits of cloud?
• #14: But what if you didn’t have to worry about any of this? What if you were offered the choice – Take the Blue-pill and continue to believe the hypervisor is the be-all and end-all. Or take the Red pill, dispense with conventional wisdom, and let us show how deep the rabbit-hole goes.
• #15: If you are even half serious about collapsing your software stacks then you should look at applogic To build a cloud with traditional hypervisors, first install the OS and hypervisor on each host server. Then install the management tools, and patch it all. Then install a SAN, and configure it. Then configure the network security. Then install the applications, take a snapshot and store the image. Want to understand how the applications and VMs relate to a business service? Install and configure a BSM solution. Want a service catalog? Install a different product. And on and on you go. Eventually you may be able to get to a cloud environment this way, but it will take a long time and quite a few products to achieve what AppLogic achieves in one product. The beauty of Applogic is that once you have configured this application, it is completely reusable. Every had problems moving applications between test and dev? No longer, as Applogic abstract the application from the hardware and OS, the application will move perfectly every time and you will not need to set foot in the datacenter. applogic removes complexity and drives innovation.
• #16: So, lets look at a practical example. Activity as a Service – great another aaS term to know, but it is one that you should. In this scenario we are going to take a common business services – a service desk, in this case CA’s, but it could be any. It could be a CRM solution, and ERP solution, it could be Sharepoint, the application is largely up to your imagination – it could be a complex deployable defence application, there are few limitations to your imagination. To begin with, you need to strip everything back to the bare bones – the building blocks of applications – not just the virtual server, but the full composite application. But this is easy, we have done it for you, it is called a Cloud Store. This allows you to simply download what you need. Most open source applications and components are freely available and come OOTB, yours to keep, and we do this via a Cloud Catalogue. In this scenario, we are going to use an SI. First step is we build a grid . I know I can hear the alarm bells from here – how many millions will that cost? Well in truth , all you need is 4 x X86 servers, 2 x 1GB switches and 1 engineer for three days – that’s it, that’s enough to get your grid up an running with your first applications. Next we drag down the components from the catalogue onto the grid into the configuration you require, this is as easy as building a Visio diagram, instead at the end you get a functioning app, not just a pretty picture – seriously this is so easy my mum could do it. What you have here is a PaaS. For a basic app this takes 15 minutes! Think of that for test and dev. On top of this we configure the application layer, in this example we are using a CA Service Desk, but this may be nearly any application. Now as I said earlier, once this is done the application is completely disposable and reusable. The application may be replicated at incremental cost to the initial configuration and build. So now let’s extend this to you, the audience, our customers. Let’s say you are Customer A in the market for a CA Service Desk application, as an example. To access this as your own private cloud application, first build the grid – 4 servers, 2 switches, 3 days. Second you need Comms . Next you need a complex piece of IT infrastructure called a “mouse”. And you drag the complete application down to your grid. You do not need to further configure infrastructure and networks, you are dragging down a complete functioning app, that you can then incorporate your own business processes and integrations to other in-situ applications and data sources – this is not SaaS – your app, your way. So along comes Customer B, with similar business requirements, they want what Customer A has but does not have the budget to go through the full process to stand up another application. Easy build the grid 4 servers, 2 switches, 3 days. Connect Click + drag. Base application ready for customisation. But what if a internal customer B.1 within Customer B wants a Service Desk? Easy, right click “save as” Service Desk B.1 – it is that easy. Want to do it yourself? Easy , download components directly to your grid – Windows Ent Server, SQL Server, just make sure your licensing agreement covers the usage. This is fast, it’s cheap and bi-passes most of the blockers for cloud, why because it is your app, your way.
• #17: Cloud computing is not a silver bullet and there are multiple ways to leverage the benefits of cloud computing. CA technologies as a company has the capability to assist you in achieving your cloud objectives by Securing, Assuring and Managing Cloud services, regardless of the flavour. Whether the red pill was too hard to swallow, and the blue pill was your choice, we can help with the automation, virtual management, cataloging and service metering as you embark on your evolutionary path. Such as we have done with the Fujitsu Trusted Cloud for IaaS and PaaS in North Ryde. Or if you revolutionary, take the red pill and challenge the status-quo and want to build rapid cloud platforms simply and cost effectively, thumbing your nose to conventional wisdom – as LayeredTech has done in the US with rapid deployable PaaS solutions – allowing customers to stand-up complete applications in less than 30 minutes! Whatever your path shall be, CA Technology is investing to ensure that we have marketed leading technologu to help you get there.