Blog posts tagged with 'cloud'

Prediction #1: The iPhone goes Enterprise

- The iPhone will gain rapid adoption in the Enterprise driven by user demands including executives, road warriors, and knowledge workers asking for access to the apps they need ( including windows apps ) from anywhere. IT will increasingly support the effort based on new improved security capabilities and productivity gains ( including for themselves ).

..	Choose
I am in IT and we will support the iPhone in 2009 ! ( I need the Citrix Receiver now... )
Blackberry reigns in the Enterprise, no change for '09 ...

Prediction #2: Corporate issued laptop model will be challenged
- Companies looking to provide access to day extenders without the full expense and maintenance of a company laptop will increasingly adopt application delivery infrastructure like XenApp that can provide safe IT hosted application access from un-trusted personal PC's. In addition, companies will begin to pilot the BYOC ( Bring Your Own Computer ) model for knowledge workers seeking personal choice while reducing IT expense and support costs.

..	Choose
We already are saving significant $$ by enabling safe access from home PC's
We are planning to allow controlled access ( via Citrix ) from home PC's in 2009
Status quo, corporate laptop access or none at all.

Prediction #3: Virtual Desktops grow beyond a niche

- Improvements in user experience capabilities of VDI solutions combined with the reduced support cost model will drive increased adoption of VDI beyond the initial niche deployments.

..	Choose
We are moving from VDI pilots and special use cases to broader deployment
VDI is not ready for the masses, we will wait and see

Prediction #4: IaaS Cloud Providers are no longer just for web startups

- The recent Windows offering by Amazon will validate the IaaS ( Infrastructure as a Service ) model as a viable platform for companies small and large looking to add test and targeted production capacity without capital and facility costs.

..	Choose
We have started to use Cloud VM's or Storage for test and plan broader use in '09
What is IaaS ? No way are we putting anything in the cloud...
Not sure, need to try it first

Prediction #5: Netbooks drive Servers, Clouds and Linux clients

- The rapid adoption of Netbooks based on low cost and light weight convenience will increase the desire to run server hosted apps ( Web and Windows ). A significant number of the new mini laptops will be used for occasional use vs a primary PC which makes maintaining local apps and synchronizing data problematic. This in turn will help break the traditional model of running Windows apps installed on PCs and laptops.

..	Choose
We are getting more and more requests for access from Netbooks, all they need is Citrix and a browser.
Netbooks are just toys for kids ...  ( small & big )

Agree / disagree ? what are your predictions ? 

Also seen at Sys-Con Cloud Computing Computing Journal

As described in part 1 of this blog series, the cloud is not the answer for every enterprise or every workload. This is true based on the current economics even without considering additional factors like security, control and SLA's. On the other hand the economics do point out a major cloud advantage when it comes to short term or variable workloads. ( pointed out by Michael Keen and Billy Marshal as well ) Perhaps this is not very surprising to many, but it does help to look at the numbers to put it in perspective. The largest Intrinsic cost advantage of the Cloud is the ability to share infrastructure among multiple customers ( i.e. Multi-Tenancy and/or Multi-Instance ). This comes into play when many customers have variable workloads that are not likely to overlay at the same time. A Cloud infrastructure can load balance this workload on-demand significantly reducing the cumulative infrastructure required to support N number of customer workloads.
A Premise only solution will typically deploy the infrastructure required to accommodate the anticipated peak demand plus a factor of safety. As a result excess capacity is built into every deployment even if it is rarely ( or never ) utilized. This formula gets very expensive for many scenarios such as implementing a redundant DR solution across multiple data centers or a retailer building infrastructure to accommodate the Christmas shopping season but paying for it all year. As noted in the Cloud 101 example however, when a premise based is well utilized it can be the most cost effective solution to stay with especially if the on-site facilities can accommodate the anticipated growth.
The following Premise Plus Cloud scenario provides an optimized view of where a fully utilized premise infrastructure is used for constant predictable workloads and the Cloud is used for the variable workload. To put some simple numbers to it based on the original example, let's assume that the constant workload is roughly equal to 5 Quadcore server capacity. The variable workload on the other hand peaks at 160% of the base requirement, however it is required only about 400 hours per year, which could translate to 12 hours a day for the month of December or 33 hours per month for peak loads such as test or batch loads. The cost for a premise only solution for this situation comes to roughly 2X or $ 15,600 per year assuming existing space and a 20% factor of safety above peak load. If on the other hand you were able to utilize a Cloud for only the peak loads the incremental cost would be only $1,000. ( Based on Amazon EC2 )

Premise Only
$ 15,600	Annual cost ( 2 x 7,800 from Part 1 )

Premise Plus Cloud
$ 7,800	Annual cost from Part 1
$ 1,000	Cloud EC2 - ( 400 x .8 x 3 )
$ 8,800	Annual Cost Premise Plus Cloud

As noted for this example the server cost of using a Premise Plus Cloud solution could save as much as 44%. This does not factor in many costs that either the Premise only scenario or Premise Plus Cloud would face but those costs vary according to the situation. So the challenge is how to identify variable workloads that can be placed in the Cloud or split between premise and cloud. The CSP ( Cloud Service Provider ) must also provide the proper infrastructure and remote administration to enable corporate IT to control and manage applications and images in the extended cloud as a virtual private network of their own. Economics aside, the CSP also needs to address the SLA's and security concerns that corporate IT has identified as prerequisites for adoption. Given the intrinsic cost savings possible as portrayed in this example, there is little doubt that CSP's will fill the gaps and the industry will move to Premise Plus Cloud solutions.

There is an interesting debate going on over on the Google cloud computing group that also helps point out some of the appropriate use cases for cloud computing. The example used is a simple comparison of Amazon EC2 vs. purchasing a set of servers for development purposes ( I have added some additional costs and scenarios below ) This example also assumes the servers fit in existing space and either environment would be managed by existing staff.

	Purchase - on Premise
$ 15,000	Quad-Core Servers ( 5 x 3,000 each  )
$ 750	1/2 Rack + Gigabit Switch
$ 15,750	Total Hardware cost
$ 5,800	Annual amortized cost, 5% over 3 years
$ 0	Assuming no incremental real estate cost
$ 2,000	Annual power & AC cost
$ 7,800	Total annual cost on premise

	Purchase - at Colo
$  8,000	Colo fee's; 1/2 Rack + power + bandwidth
$  5,800	Annual amortized cost
$ 13,800	Total annual cost at Colo

	Cloud
$ 35,040	24x7x365x5 Amazon EC2 ( $.80 per high CPU Server instance hour )
$  8,320	40 hours x 52 weeks
$    688	40 hours x 4.3 weeks

 On the surface it's apparent that EC2 is significantly more expensive if the set up is utilized 24x7x365, even a 40 hour week yields a slightly higher cost. So where is all the savings ? What's all the hype about ? This simple example does point out that the Cloud is not always a more cost effective solution it really comes down to what is the particular use case and alternative costs. For example if there is no space available or the existing space has reached the power limits of the facility ( a more common occurrence ). That means that the likely scenario is finding a Colo facility to provide space power and bandwidth. Depending on location and bandwidth usage this could easily cost $8,000+ per year plus additional remote administration hardware and service fees, effectively increasing the annual cost of purchased equipment to near $ 14,000. Although this option is still less than Amazon if utilized 24x7x365, it now is significantly more than the cost of the 40 hour week at EC2 which may be reality for a development environment. And if you only need the setup for a month of dev or testing Amazon becomes a no brainier.. put on your credit card !
What both examples point out are the fact that there is single answer. In fact the right answer for many companies might be premise plus cloud. In order for this to work for a single workload however a seamless connection would be required, recognizing this has led to the Citrix Cloud Bridge based on our WANScaler acceleration technology. In fact, Citrix is in the unique position to be able to assemble the prerequisite technologies that make the C3 Citrix Cloud Center an optimized solution for many scenarios.

There are many other pro's, con's and hidden costs of each option, I am interested to hear what the community has considered regarding Cloud economics and/or other factors.

Check out Part 2 here

 
There is a lot of hype and reality in the world of Cloud computing today. On the hype side there are numerous data points; VC investments, M&A, data centers under construction,  new conferences and events. Adding fuel to the fire is extensive press, analyst and blog coverage ( like this ) plus books like Nickolas Carr's book " The Big Switch ".  It definitely feels like we are in the Hype cycle. On the other hand there are now many examples of reality as well. SaaS offerings like Salesforce.com and many HR applications plus web site Hosting have established themselves as a legitimate part of the IT portfolio of many corporations large and small. 

 Will traditional corporate IT really move dramatically to the cloud as Carr predicts?  I think a lot of the answer comes down to control and customization .... or lack of it. SaaS Clould offerings can work great if the application offered aligns with the business requirement without significant customization or integration. If IT is comfortable without the hands-on control they may even manage and support the project because it's good example of doing more with less. However in most cases there are too many custom requirements and perhaps regulatory controls that make premise based solutions the norm and leave SaaS offerings relegated to specific point solutions. As business requirements continue to grow, premised based solutions grow accordingly  and sometimes disproportionately when centralizing into limited data centers.  A resulting problem that most IT shops now face is a lack of space and/or power. Once the local premise is at capacity a typical next step is to move some or even all the equipment to a dedicated Co-location facility. For many companies this is more of an incremental step because they have already centralized their Application Delivery Infrastructure and may already be using Co-Lo's for back up and Disaster Recovery operations. The definition of "premise" gets blurry, but IT remains in control. The facility is likely owned and operated by a service provider, but everything inside the " cage " is owned and operated remotely by corporate IT.       

For companies that have taken this step of moving some or all of their infrastructure to the "Cage"  the transition seems to have worked well. Co-Lo Data Centers typically have great bandwidth, power, and room to grow. Plus the high cost of specialized facilities are spread across many Co-Lo tenants often lowering the cost compared to providing company managed dedicated Data Centers. IT is remotely managing the infrastructure with perhaps some on site assistance or occasional trips to the Co-Lo. As long as the App Delivery Infrastructure is robust users don't know or care were the servers are, management is happy because it reduces Real Estate dependencies and  facility upgrades like added power, AC and generators. So, if IT is satisfied remotely managing their infrastructure ( except the trips to the cage... ) new applications get implemented, security is enforced , new users provisioned, etc, do they really care about the hardware the server images and storage is running on as long as it stays up with predictable performance ?  I suspect many IT Pros would give up the responsibility, time and burden of acquiring, deploying, cabling, and configuring servers and storage ( and trips to the Cage.. ). As long as they could still architect the solution they need, deploy server images, reboot images, network servers together and generally administer the functions they need to deliver apps and store data, there is a good chance they don't view the underlying hardware as something they really need to own and manage, just like the datacenter real estate.         
 
Perhaps the movement to the Cloud for companies that have already moved to the Cage will not be such a disruptive event. As long as there are Cloud providers that can provide the underlying infrastructure including servers, storage and networking with SLA's, Security, and the appropriate level of administrative control. And if IT can still customize and "control" at the level they need to, they will likely be compelled to make the next transition to the Cloud.  The benefits of Virtualization for rapid deployment and flexibility plus the intrinsic cost benefits of muti-tenancy will win-over converts that are faced with demanding time to deployment challenges and capital cost constraints ( isn't that most of IT ? ). These Cloud service provider offerings will need to overcome some of the SLA challenges that have faced the early adopters like Web 2.0 startups on EC2, plus address security, sustainability and redundancy fears, but these are all curable issues. This will take some time and there are likely scenario's of hybrid models of premise plus Cloud solutions, but the writing is on the wall .. the Cage is just a step to the Cloud.