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T he Futur e of the
T
Cloud  York Technology Council
     New



                                Charles Babcock
                    Editor at Large, InformationWeek

 Author
 Management Strategies for the Cloud Revolution
2008-09: The Cloud under fire
“It’s just water vapor…”

“It’s just another name for the
  Internet…”

“an obsession of Sand Hill Road nitwits”
Now what Ellison’s saying:
“Get to the cloud with Oracle”

“Power your cloud with Oracle”



“Oracle Exalogic: world’s best… for
 cloud computing”
Three keys to the cloud
1) It amplifies an explosion of computing
     power

2) It distributes server compute power

3) It alters the client/server relationship in
     favor of the end user client
Legacy data centers
One of everything
 massive complexity.

One application per
 server.

One system admin. per
 25 servers.
What is a cloud data center?
• A uniform, x86 environment
• Managed by automated procedures
• Allows end users to self provision servers,
  storage
• Invokes new economies of scale
Massive data center build out

• Data center spending:
  $450 billion a year

• 8086 started with 29,000 transistors;
  today a 10-core Intel chip – 2.6 billion
Google, Amazon, Facebook,
       new data centers
• One kind of server/software,
  repeated thousands of times

• 100 applications per server

• 1 system admin. - 3,000 servers
What is future cloud data center?

• Is x86 all we get?

• IBM Power? Sun UltraSparc? Nope.

• How about low power, cell phone
  technology?
What about custom clouds?

• Harris Cyber Integration Center

• Terremark NAP of the Americas – DOD
  DIACAP certified

• NYSE Mahwah, N.J., Capital Markets
  Cloud
NYSE’s cloud data center
• One part, traditional data center
  for NYSE licensees

• Another part, cloud
  infrastructure

• New types of traders plug into
  latter?
Every exchange in the cloud
• Everyone’s a trader

• Sophisticated trading systems available for rent,
  by the trade or by the hour

• Economies of scale, automated systems, low
  fees, thousands of users
A ‘Facebook’ of financial services

• Groups will form social networks, seeking to
  combine what they know at the moment

• ‘Friends’ with varied, established expertise will
  play for market advantage

• Your rival overseas may seek to collaborate
Longer term implications
• Think Occupy Wall Street looking over your
  shoulder

• Amateurs employ trading analytical engines

• Investments will change frequently
Future Specialized Clouds

• Centers for Medicaid, Medicare could sponsor
  a centralized, health care cloud; eliminate
  health insurance companies

• How about a central Fannie Mae, Freddie Mac
  mortgage cloud for regulatory purposes?
Data Center is the computer
  In Zynga’s Z Cloud, sets of servers
  become components with specific
  functions
• Equinix serves as Zynga’s high speed,
  private connection to Amazon—Direct
  Connect
• Amazon serves as bursting, spillover site
Confederated clouds
• Daisy chains of linked cloud centers
  around the world
• Specialized clouds linked to general
  purpose clouds
• Zynga, Equinix and Amazon a prototype
  of what’s to come

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The Future of the Cloud

  • 1. T he Futur e of the T Cloud  York Technology Council New Charles Babcock Editor at Large, InformationWeek Author Management Strategies for the Cloud Revolution
  • 2. 2008-09: The Cloud under fire “It’s just water vapor…” “It’s just another name for the Internet…” “an obsession of Sand Hill Road nitwits”
  • 3. Now what Ellison’s saying: “Get to the cloud with Oracle” “Power your cloud with Oracle” “Oracle Exalogic: world’s best… for cloud computing”
  • 4. Three keys to the cloud 1) It amplifies an explosion of computing power 2) It distributes server compute power 3) It alters the client/server relationship in favor of the end user client
  • 5. Legacy data centers One of everything massive complexity. One application per server. One system admin. per 25 servers.
  • 6. What is a cloud data center? • A uniform, x86 environment • Managed by automated procedures • Allows end users to self provision servers, storage • Invokes new economies of scale
  • 7. Massive data center build out • Data center spending: $450 billion a year • 8086 started with 29,000 transistors; today a 10-core Intel chip – 2.6 billion
  • 8. Google, Amazon, Facebook, new data centers • One kind of server/software, repeated thousands of times • 100 applications per server • 1 system admin. - 3,000 servers
  • 9. What is future cloud data center? • Is x86 all we get? • IBM Power? Sun UltraSparc? Nope. • How about low power, cell phone technology?
  • 10. What about custom clouds? • Harris Cyber Integration Center • Terremark NAP of the Americas – DOD DIACAP certified • NYSE Mahwah, N.J., Capital Markets Cloud
  • 11. NYSE’s cloud data center • One part, traditional data center for NYSE licensees • Another part, cloud infrastructure • New types of traders plug into latter?
  • 12. Every exchange in the cloud • Everyone’s a trader • Sophisticated trading systems available for rent, by the trade or by the hour • Economies of scale, automated systems, low fees, thousands of users
  • 13. A ‘Facebook’ of financial services • Groups will form social networks, seeking to combine what they know at the moment • ‘Friends’ with varied, established expertise will play for market advantage • Your rival overseas may seek to collaborate
  • 14. Longer term implications • Think Occupy Wall Street looking over your shoulder • Amateurs employ trading analytical engines • Investments will change frequently
  • 15. Future Specialized Clouds • Centers for Medicaid, Medicare could sponsor a centralized, health care cloud; eliminate health insurance companies • How about a central Fannie Mae, Freddie Mac mortgage cloud for regulatory purposes?
  • 16. Data Center is the computer In Zynga’s Z Cloud, sets of servers become components with specific functions • Equinix serves as Zynga’s high speed, private connection to Amazon—Direct Connect • Amazon serves as bursting, spillover site
  • 17. Confederated clouds • Daisy chains of linked cloud centers around the world • Specialized clouds linked to general purpose clouds • Zynga, Equinix and Amazon a prototype of what’s to come