Cloud Computing and Mobile Devices Transforming Software Industry

How Cloud Computing and Mobile
Devices are Enabling 21st Century
Business Transformation
Anand Deshpande (anand@persistent.co.in)
September 2011

www.persistentsys.com

Anand Deshpande
Personal History and Biases
• 1984: B. Tech. (Computer Science & Engineering) IIT Kharagpur (India)
• 1989: Ph.D. (Computer Science – Databases) Indiana University,
Bloomington, Indiana (USA)

• 1989-90 Member of Technical Staff at Hewlett-Packard Laboratories, Palo
Alto California.
• Since 1990, Founder and CEO of Persistent Systems.
• Responsible for general management, sales and tracking technology.
• Personally, track database technologies.
• Member of NASSCOM Executive Council, President, ACM India.

© 2011 Persistent Systems Ltd www.persistentsys.com 2

Persistent Systems
is a focused
software product
and technology services
company.

… with a Global Footprint

Delivery Center Sales Office

London
Toronto
Netherlands
Chicago

Victoria
Quebec
Seattle
Boston Pune
Nagpur
San Jose Tokyo
France
Indiana

Dallas
Austin Singapore
Goa
Hyderabad

Bangalore

…and more than 7000 employees.

Our strategy is focused
on creating the
Building Blocks
of next-generation
technology products
and solutions.

Cloud | Analytics
Collaboration | Mobility


The Problems We Solve….

• How do I migrate my application and data to the
cloud?
Cloud

• How do I quickly develop and get my cloud platform
to the market?
• What applications should move to the cloud?
Performance?

• How do I execute a true multi-channel
strategy?

Mobility
• What mobile architecture is right for my
enterprise?
• How does my UI need to change to ensure a
great user experience on today‟s mobile
devices?

• How do I leverage the deluge of data
BI & Analytics

in my enterprises?
• How do I speed the time to market for
my Analytics product?
• How do I efficiently implement my
Insights analytics engine?

• What is the ROI of implementing a
collaboration platform?

Collaboration
• How do I integrate new collaboration
tools & social media into my legacy
enterprise systems?
• What collaboration platform is right
for me?


The Persistent Advantage


If all CIOs reduce IT budgets by 30% what
would be the implications to the software
industry?

• This presentation tries to address this question and identifies
opportunities in the post-cloud environment.
• This presentation is in the context of the CIO and enterprise
software and does not consider the consumer cloud world.
• The presentation has four parts:
1. Economics will drive cloud adoption. It is inevitable
2. Enterprises will run a Virtual Private Cloud with workloads
distributed across different types of clouds.
3. Mobile devices will be consumption device.
4. Cloud will enable new data-driven businesses.


Cloud computing

and mobile devices

are transforming the

software industry.

Cloud computing is the platform for next
generation of IT innovation.


What is driving the adoption of cloud
computing?

Economics.


What is driving the adoption of cloud
computing?

Economics.
• Illusion of infinite resources
• No up-front cost
• Fine-grained billing (e.g. hourly)

• Utility Computing: Pay-as-you-go computing
promises substantially reduced cost.


We are grossly over-provisioned

Capacity • Capacity includes:
• Computer Servers
Storage
Resources

•
• Software Licenses
Demand
• Network bandwidth
• Energy
Time • Air Conditioning
Static data center • Rent
• Maintenance Costs
• Operator Staff
Unused resources

Slide Credits: Berkeley RAD Lab


Heavy penalty for under-provisioning:
Poor quality of service – lost customers.

Resources
Capacity

Demand
Resources

Capacity 1 2 3
Time (days)
Demand Lost revenue
1 2 3

Resources
Time (days)
Capacity

Demand
1 2 3
Time (days)
Slide Credits: Berkeley RAD Lab Lost users


Ideally, want optimal provisioning of
capacity across all resources.

Capacity
Resources

Resources
Demand

Capacity

Time
Demand
Static data center
Time
Resources

Data center in the cloud
Capacity

1 2 3
Demand
Pay-per-use
Time (days)
Slide Credits: Berkeley RAD Lab
business models

By operating at scale, improving utilization,
simplifying operations, standardizing, increasing
reliability, reducing energy and cooling

• hardware costs can be reduced 33-70 percent
• maintenance costs can be reduced up to 50 percent
• support costs can be reduced by as much as 33 percent
• floor space/facility costs can be reduced 33-50 percent

http://www-935.ibm.com/services/us/its/html/green-datacenter-svcs-landing.html


Advantages of Cloud Computing

Agility Cost Device and Scalability
Location
Independence

Multi-tenancy Security Maintenance Metering


Challenges for Cloud Computing

Privacy Compliance Legal Open source

Open standards Security Availability and Sustainability and
performance siting


Cloud Computing: Why Now?

Business factors Economies of Scale Technology factors Clean Slate
• Minimal capital in the Data Center • Pervasive broadband Approach
expenditure • Experience of Internet • Multi-tenancy
• Pay-as-you-go billing operating data centers • Maturity in • Challenging the status-
model efficiently Virtualization quo
Technology

Business challenges will accelerate the adoption of cloud computing.


To summarize

• Enterprises will move to the cloud – this is inevitable.
• The speed of enterprises‟ movement to the cloud will
depend on the peer group and will be driven by
CEOs/CFOs comparing savings on the balance sheets of
their peers.
• This is not a technical decision.
• Unfortunately, the vendors and eco-system to migrate to
the cloud are not ready.
• The cost of migration and legacy systems is not accurately
factored in and will be a big impediment.


What does the
cloud mean for
the CIO?


Evolution of the cloud from the CIO’s
perspective

The CIO must consider
• Regulation, location mandates, other country specific laws. Perception
and reputation issues.
• Core and context apps – as perceived by the business – possibly an
evolving list.
• Need for flexibility
• Performance issues
• Cost


Where will I distribute my workload?

Hosted Cloud:
at a co-lo Platform as a
Datacenter Service Provider

Private,
Industry-
Internally
Specific Cloud
hosted cloud

Cloud:
Application as a
Platform
Management
Layer


Private Internally Hosted Cloud

Hosted Cloud: • Applications where regulation requires
at a colo Platform as a then to be internally hosted.
Datacenter Service Provider • Critical applications – businesses not
comfortable if it is not internal.
Private, • Private internal datacenters will
Industry-
Internally
Specific Cloud
benefit from systems designed for the
hosted cloud cloud. Example virtualization, multi-
tenancy etc.
Cloud: • This will be the most expensive option
Application as a (staff ) and applications will move
Management Platform away from a private internally hosted
Layer cloud over time.


Hosted at a colocated datacenter

• Applications that are critical but do
Hosted Cloud:
not need to be internal.
at a colo Platform as a
Datacenter Service Provider • This is well accepted and is not seen
as a business risk any more.
Private, • Costs savings because of shared staff,
Internally
Industry- shared infrastructure etc.
Specific Cloud
hosted cloud • Datacenters are getting sophisticated
and beyond racks and infrastructure,
provide software to create, operate
Cloud:
Application as a and manage environment that
Management Platform leverage modern cloud technology –
Layer virtualization, multi-tenancy dynamic
provisioning etc.


Cloud: Platform as a Service Provider

Hosted Cloud: • For applications that are considered
at a co-lo Platform as a less critical for business and regulation.
Datacenter Service Provider • Platform as a service provider provides
greater elasticity and dynamic
Private, provisioning and hence lower costs.
Industry-
Internally
Specific Cloud
• Custom applications need to be
hosted cloud migrated the cloud to benefit from the
advantages of dynamic provisioning
Cloud: and multi-tenancy.
Application as a • Pre-packaged products will replace
Management Platform custom applications as the cost of
Layer migration may not be justified.


Industry Specific Cloud

Hosted Cloud: • Industry leaders are likely to offer
at a co-lo Platform as a their infrastructure and their
Datacenter Service Provider applications as a service. Example
banks, retail, logistics etc.
Private, • Being familiar with stringent
Internally
Industry- regulations requirements of the
Specific Cloud
hosted cloud industry; they will have better
acceptance for security and
regulatory issues and business
Cloud:
comfort.
Application as a
Management Platform • As resources are shared and multi-
Layer tenancy built-in; costs are lower.


Cloud: Application as a Platform

Hosted Cloud: • Applications that are context
at a co-lo Platform as a applications will move to the
Datacenter Service Provider application cloud. Examples of such
clouds are salesforce.com for sales,
workday for HR, Intuit for
Private,
Internally
Industry- accounting, etc.
Specific Cloud
hosted cloud • Costs are significantly lower as
multi-tenancy and other
management efficiencies are built-in.
Cloud:
Application as a
Management Platform • More on Applications as a cloud
Layer later.


Virtual Private Clouds

Hosted Cloud: • An enterprise is likely to have
at a co-lo Platform as a systems running across multiple
Datacenter Service Provider scenarios.

Private,
Internally
Industry- • It would be expected that these
hosted cloud
Specific Cloud applications run virtually as a
single unified datacenter,
Cloud:
managed centrally.
Application as a
Management Platform
Layer


Enterprises will operate
Virtual Private Clouds
• Virtual Private Clouds will span applications that will be deployed
• on-premise,
• off-premise but at a colo site
• in industry specific cloud, and
• in application-specific public clouds.
• Where they are deployed will be seamless to the end-user.
• They will be secure, centrally managed with identity and single sign-on
federated across these systems.
• They will federate billing.
• All systems will be designed for multi-tenancy and will be elastic and will
be provisioned to be available as needed.


Virtual Private Cloud

Data Center

Public Cloud

On-premise

Industry Specific
Cloud


Management Layer

• The Virtual Private Cloud will have to be
Hosted Cloud:
centrally managed efficiently – with
at a co-lo Platform as a
Datacenter Service Provider
minimal staff.
• Workloads must be seamless for the user.
Private,
• Must be secure
Industry-
Internally • Extended enterprise
Specific Cloud
hosted cloud  employees, partners etc.
 applications running across private
and public clouds as part of the virtual
Cloud:
Application as a private cloud.
Management Platform • Will require tools to run a distributed
Layer environment efficiently.


What is included in the
Management Layer?
• Management Layer must include the following:
• Identity management and provisioning. Single sign-on across all applications and
systems that are part of the virtual private cloud. The system should be able to
provision privileges and authority across multiple distributed systems.
• Create and run an Enterprise App Store. The Enterprise App Store will regulate the
apps that would be available to users of the enterprise virtual private cloud.
• Ability to monitor the distributed systems that are part of the virtual private cloud. Be
able to handle back-ups and DR, migrate loads, manage security, intrusion, etc.
• Manage billing across the distributed environment.
• Monitor workloads and manage most optimal placement of workloads across the
virtual private cloud on the basis of cost, performance, business risks etc. As most
workloads will be virtualized it would be possible to move workloads across
environments dynamically.


Who will manage the Virtual Private Cloud?

• From the CIOs point of view none of the cloud
operators have the credibility to run the cloud end-
to-end for the CIO‟s organization.

• They need someone who will provide service and
has established credibility.


Virtual Private Cloud Operators

• provide the CIO with complete end-to-end service – single point of contact.
• manage the virtual private cloud
• will work on migrating workloads to different configurations optimized to the
requirements of the CIO/Business.
• provide high-touch support to the end-users and to the CIO.
• manage the Enterprise App Store. Decide which applications are appropriate
for the organization.
• translate business requirements and build integration solutions required by the
business. They will optimize billing and provide a single bill for resources across
the cloud.
• provide the CIO a financial l business model that charges the business on a
monthly basis.


To summarize

• Enterprises will run Virtual Private Clouds.
• The Virtual Private Cloud will provide end users seamless view of their
environment which will be centrally managed but distributed across multiple
“clouds.”

• A new class of software service providers – Virtual Private Cloud
Operators will emerge.
• Virtual Private Cloud Operators will provide the CIO with a full service
support for managing the cloud.
• Virtual Private Cloud Operators will manage the financials for the cloud
environment.


Mobile devices are getting main stream in
the Enterprise

 Enterprises are opening up to
„bring your own device‟ culture
Smartphones
Mobilized  Tablet is becoming the „device of
legacy
Tablets
applications choice‟ for enterprises
Hardened
Handsets  iOS and Android are a „must
have‟ to reach end customers.
Application Win7 … still in the wait and
watch mode.
Scenarios New
Building task Enterprise
specific Apps that
mobile apps leverage
mobility


Tablets are driving a change in the
Enterprise

Primary Device

With Tablets as the primary device,
HTML5 will be the default environment

Mobile Devices are defining our
expectations from Computers

• Always on access with super fast boot time.
• Fast broadband speeds
• Near zero latency access to nearly all information
• More than day-long battery life
• Appropriate form factor
• Location based information
• Presence

© 2011 Persistent Systems Ltd www.persistentsys.com 42 4

Smart, connected “things” that interact and
interface with each other are getting all
pervasive.


Video is the new voice

Video Consumption

Video Sharing

Video Communication


Apps apps everywhere!


To summarize

• Mobile devices are getting mainstream. The CIOs have to
support them.

• Tablets are driving mobile deployment. HTML5 will be the
de-facto UI standard.

• Video is the new voice.

• Mobile computing will provide the network layer for sensors.

• Sensors will generate large amounts of data. Must find ways
to deal with large volumes of data.

Infrastructure is moving to the cloud …
applications are next!

Data will move with the applications.


Data on the cloud will
enable new data-centric
business models.


Data and Applications are rapidly
moving away from the desktop
into the cloud.


As applications move to the cloud they
will lose their tight hold on enterprise data.

Enterprise data will be available on the
cloud as a service independent
of the application.


Data is getting separated from Enterprise
Applications and is accessible on the cloud
through independent APIs.

Application

API App

Data
Data

Traditional Application Application running in
Scenario the cloud


Cloud Vendors will aggregate enterprise
data. And make it available through APIs.


The impact of aggregate data
http://data.mint.com/


Concur: Aggregating Travel Data


As Enterprise Data Enterprise

moves to the
Data
Aggregate
Data

cloud, it would be
easier to combine Public
Data
enterprise data
with aggregate and
public data
sources. Insights


Beyond the enterprise applications, large
number of apps will be available on a pay-
per-use basis in the App Store.


There will be a hierarchy of apps with
different price points; all available on a pay-
per-use business model.

Task/Device
Specific Apps

Business Process
Specific Apps

Traditional
Applications will
be commoditized Aggregate Enterprise
Public Data
on the cloud. Data Data


Products/Apps will be consumed in
ready-to-eat bite-sized portions


The New App World

From the Low per
App Store Unit Cost

Zero
Loyalty
Pay per Snap-in
Use Snap-out


To summarize

• As applications move to the cloud they are taking
data to the cloud as well.
• Data on the cloud is now accessible through APIs
independent of the application.
• Cloud operators are aggregating data.
• The ability to combine Enterprise data, Aggregate
data and Public data is very powerful.
• The world is moving to “the world of apps.” Apps
will be business process specific or task/display
specific.

Questions?

www.persistentsys.com

Cloud Computing and Mobile Devices Transforming Software Industry

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