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IT for the Non-Technical
Clearing “The Cloud”

davtec
exceptional technology solutions

Laz Davila
Davtec
davtec
exceptional technology solutions

Laz Davila: About Me
1985

2004

davtec
davtec
exceptional technology solutions

About Today
The Cloud:

what is it?
 benefits?
 risks?

davtec
exceptional technology solutions

About the Cloud

Virtualisation

The Cloud
davtec
exceptional technology solutions

History
davtec
exceptional technology solutions

History
davtec
exceptional technology solutions

History
davtec
exceptional technology solutions

History
davtec
exceptional technology solutions

History
davtec
exceptional technology solutions

The Cloud is open for business
davtec
exceptional technology solutions

The attraction
davtec
exceptional technology solutions

What is possible
davtec
exceptional technology solutions

Now it gets interesting
davtec
exceptional technology solutions

The risks
davtec
exceptional technology solutions

For further information, please contact:
Laz Davila
davtec
321 Portrush Road
Toorak Gardens SA 5065

Ph: (08) 8333 3440
Mob: 0402 452 529
ldavila@davtec.com.au
http://www.davtec.com.au/

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IT for the Non-Technical: Clearing The Cloud

Editor's Notes

  1. Virtualisation – providing a service so that a client believes they have access to a real resource (that is actually shared)The Cloud – notion that client does not care what, where or how a service is provided
  2. In the 70s...Computing infrastructure was large and expensiveCommunications infrastructure was clunky (failure prone), analogue (noisy) and mechanically switched at exchangesCompanies rented access to mainframesto run data processing programs (text driven / reports posted out). Text output terminals were connected in house to the mainframe servers or externally via modems.In a way this was virtualisation (each access acted as a personally provided service) and it was cloud computing (it was in a well known service centre, on an assigned mainframe – but user did not care where/which).
  3. Continued improvements in technology (slowly costs dropped).Personal computers and portable computers became commonplace. Better communication infrastructures saw an organised (semi permanent) network set up by universities and government offices across the world to exchange information and messages. A standard was set up for how information would be exchanged. They then provided access to this network to general business and individuals through dial-in services providers. This was named the Internet and information exchange was called the world-wide-web (WWW), messaging was e-mail.The public started getting used to the concept of cloud computing: Businesses and services were available via the internet, but nobody cared what computer was answering the reply, as long as they got the information. Similarly, the advantages and economy of email meant people did not care what computers were forwarding their data and (for the most part) ignored security risks of their data (security was complicated and proprietary, so did not take off).Clunky baguette size boxes came out that one could use to make and receive telephone calls on away from home or the office – affectionally referred to as ‘mobile phones’.The games consoles were born and were taking off quickly! Commodore 64, Amiga, Nintendo.
  4. Most importantly about this period:People now entering the workforce now were born in this period!They have never known a ‘paper / office bound’ world without internet, mobile phones or games consoles.Gen-Y were bornNow in workforceGen-Y trust the CloudComputers always thereInternet always thereNever cared where data came from (Google is their friend):Have never known privacyNew data has always been there quicklyEmail, voicemail and TXT are efficientHow would you think having this background would affect the decisions they take now?Risk takersShare informationNot afraid of technologyHave only ever seen improvements in their lives
  5. Fastest technology improvementsMore portable computers and phonesFast data (ADSL 1.5M bits/second)Fast mobile data (GPRS 80k bits/sec)Public accepts the Cloud:Internet bankingOnline shoppingEmailsMessengerWith huge sales numbers in personal computers and mobile phones – technology development was given a huge boost – portable computers actually became portable (and were coined “laptop” then “notebook”) and mobile phones actually became mobile (where size became a status symbol).Note: Biggest driver in acceptance were Games then games consoles!Hard wired telephone infrastructure included fibre cabling at core ‘pipelines’. Exchanges became digital. Noise was reduced. Ability to share the copper cabling between an audio signal and a high frequency signal led to “ADSL” and up to 1.5M bits per second data communications!Mobile telephone infrastructure became digital and provisions were made for the transfer of text packets (SMS) and data via GPRS (WAP initially, but did not take off).Cloud computing really started (aimed at the public): internet banking, online shopping, emails, messenger, etc.In the business, ability to work off site with remote access.There was great potential in this new freedom and the “dot.com” boom began and collapsed in this decade. IT people also coined the “Y2K” bug – which got them a lot of work.They also coined “business process re-engineering”, “data warehousing” and “outsourcing” – which also got them a lot of income.
  6. Smaller computersSmaller phonesFaster networksADSL2+ (20M b/s)3G (up to 14M b/s)NBN to come!The public Cloud grows:News, Movies, MusicSocial Networking!Computers continue to get more powerful and smaller. Actually, they are so powerful, that you can use one computer to run different ‘operating systems’ at the same time (e.g. Microsoft Windows, Linux) – virtualisation at the operating system level. Provides the ability to have one powerful server, pretending to be two or three (or more) ‘virtual’ servers. To the users – they see no difference.Wired infrastructure is currently ADSL2+, with up to 20M bits per second, and we are rolling out the National Broadband Network (including Fiber connection to the door) and speeds of up to 1,000M bits per second (1G bit) to most homes in cities (and around 12M bits per second to others (where most have none now).Wireless infrastructure 3G improving with up to 22M bits per second (HSPA+).Cloud services have taken off (from the general public’s point of view) – on line retail, global market, news services, movies, musicBut more importantly – social networking (facebook, twitter, youtube)
  7. Fuelled by inexpensive, powerful computers and virtualisationForced by global competition pressures to reduce costs:Wages / expertiseReal estateDriven by Gen-YTrust technologyTake risksLive on the runFaster computers and developments in virtualisation have opened a new market – high powered servers running many virtual servers.Computers are very cheap, and very functional. Communications is fast reliable and cheap. But a global market has its down sides – a downward spiral in the world economy now affects every business – and businesses have to improve the way they deliver their services. The most expensive resource at the moment is... people (and real estate).The difference in performance between Local Area Networks (LAN) and Wide Area Networks (WAN, or the Internet) is blurred.... so what if your company’s servers were not in the building? Would your staff know (or care)? Would your clients?The current generation are pushing development – which is a good thing, but are not concerned with the risks of openly sharing information (they have never known anything else).So now we have huge data warehouses with very powerful servers (and very clever software to check what is happening and move software around if anything should go wrong).They rent businesses accesses to virtual servers – based on a “processing”, “memory” and data “bandwidth” – and charge them monthly.They guarantee access times (but do they really) – automatically failing over to other hardware so your services continue.So how much would this cost you to have your own servers in your own office, and your own staff (or call in your IT support) in the middle of the night when something has failed (if you were even aware that it had failed).
  8. Reduce IT expenditure:Costs from assets to expensesIT wages / dependencyFocus on running businessAvoid maintenanceAvoid downtimeReduced infrastructure:Servers, server rooms, officesAdaptability:Handle spikes in demand (automaticallyAttractive benefits – move all the costs from assets to expenses; move all the quality and performance risk to the service provider; free up real estate (and now “cloud” gets even more interesting – do your clients even care where your office is?)
  9. Traditional services... plus!web servers, online retail, bankingTraditional business servers:Login (domain)Network data storage / backupExchange (email)Traditional corporate services:ERP (eg SAP, etc)Terminal servers:Microsoft Office, MYOB, etc
  10. Smaller officesWork from any where / any timeNow it gets interesting:Do clients know where your office is?Do they care?A good read:“The 4 Hour Work Week” – Brian FerrisSpread load – reduce resources required to handle ‘spikes’Has anyone gone to a client office – and they don’t have anyservers? What was the average age of the people in the office? of the business owner?
  11. Loss of control:Reliance on external providerData security:Who has your data / owns your dataWho can access your dataE.g. google “ebaypaypalskype fraud”Data availability:Complex systems have complex failuresCloud providers now points of failureE.g. Power supply explosion at iPrimus-Loss of control – where is your computer-Risk of data security – where is your data-Risk of data availability – data warehouses are single points of failure (e.g. Power Supply blowout – iprimus in US) or if they go bust? Where is your data?-They are also now attractive targets (e.g. PSN)-The right data in the wrong hands... (e.g. profiling everyone on earth, with their social and business links – makes espionage simple)-When things go wrong?-Service Level Agreements – support?-Who owns your data? (have a close look at the licence agreement)-Who has access to your data? (it is not always that the bigger the firm the more secure it is – e.g. google search at ebay / paypal / skype fraud-And if you set an agreement with someone today, who will the agreement be with tomorrow? (mergers and acquisitions)Corporations:Benefits are amplifiedComplexities are managedMigration carefully executedPrivate v Public CloudsSmall / Medium Enterprise:Gen-Y decision makersSee virtual / cloud as inevitableSee benefits outweigh risksPerformance:Large number of transactionsMultiple applicationsLow management overhead:Automated provisioningManage virtualisation via single interfaceService Level AgreementsLicence Agreements