Michael Lawrey, Executive Director Architecture, Online & Media spoke to the Cloud Conference & Expo in Sydney on the importance of service level agreements and standards in Cloud Computing, particularly at an enterprise level.

1. Cloud Computing Services at an Enterprise Level
Michael Lawrey
Executive Director Architecture, Online & Media
September 2010
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2. Agenda
Cloud
– An overview
Service level agreements for cloud computing
– Definitions
Standards
– Gaining alignment
– Challenges of defining and setting open standards
– Ensuring industry drives open standards
What is Telstra doing with cloud?
– Telstra’s next generation networks
– Service framework
– Opportunities in cloud computing
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3. What’s all this about Cloud Computing?
A hundred years ago, companies stopped generating their own power with
steam engines and dynamos and plugged into the newly built electric grid.
Today, a similar revolution is under way. Hooked up to the Internet’s global
computing grid, massive information-processing plants have begun pumping
data and software code into our homes and businesses. This time, it’s
computing that’s turning into a utility.
Source: Nicholas Carr “The Big Switch”
Telstra Value Proposition
Deliver simple, fast, secure and affordable utility computing
services that embed customer business applications within
Telstra’s Next Generation Network to meet their changing needs.
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4. The IT evolution towards efficiency and availability
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5. Infrastructure trends – searching for operational efficiencies
2008 2013
Consolidation Cloud Computing Dynamic Provisioning
SaaS Virtualization SaaS
Data Orchestration & Provisioning Utility Computing beyond
centre SOA enabled DC the DC Firewall
Convergence
Unified Comms Mashups Widgets 4G Wireless
VOIP & Collab Bandwidth on Demand
Network
Converged Voice, Data and Video Conferencing
Thin clients Social Computing
SaaS Enterprise Mobility
Workplace Desktop Unified Comms
Laptop PDA & Collab
Service Catalogue Self Provisioning/ Self Healing
Industrialize
Operations – ITIL v3
Business Service End to End SLM
Management
Source and Copyright © 2009 Accenture All Rights Reserved.
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6. When to use Clouds
All other things being equal …
If the cloud’s unit costs are lower, use a pure cloud approach
If the cloud’s unit costs are higher, but the demand is spiky, a pure
cloud may still be cheaper
If the duration of the peak is “short enough”, a hybrid approach is
optimal.
Joe Weinman: “Time To Do The Math on Cloud Computing”, InformationWeek.com
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7. Monetising the Cloud Computing opportunity
Source and Copyright © 2010 IBM Corporation
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8. Defining service level agreements for cloud computing
SLAs are the main link between IT departments and cloud providers - it is essential
to understand how they can affect a services relationship
SLA management:
– Contract negotiation
– Monitoring in real time
– Enforcement
What do customers need?
– Servers and storage ready to meet their needs
– Network connections that perform
– Reliable security
– Tools that let them make changes in real time
– Visibility of their environment
– Continuous monitoring on Quality of Service (QoS)
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9. Why are standards necessary?
Innovation, adoption, and risks associated with cloud computing have made
the need for standards a critical element
“The industry needs an objective, straightforward conversation about how this
new computing paradigm will impact organizations, how it can be used with
existing technologies, and the potential pitfalls of proprietary technologies
that can lead to lock-in and limited choice” (opencloudmanifesto.org)
Belief that the cloud should be open
– Portability and interoperability
Create standards and stifle innovation or don’t create standards and nothing
will progress … which is right?
Standards will need to evolve as our understanding of cloud progresses.
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10. Sample areas for standardisation
Cloud computing represents a shift in how Application and Data
Centre resources will be architected and consumed
What could be standarised:
– Network abstraction, virtualisation
– Cloud security
– Federation and interoperability
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11. Where should the standards work be done?
© 2010 Cisco
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12. The challenges of setting and defining open standards
Challenges:
– Security
– Data and application interoperability
– Data and application portability
– Governance and management
– Metering and monitoring.
Setting standards:
– End-to-end SLAs and monitoring
– Billing and usage
– Providing control to the user
– Data protection and privacy management
– Governance, risk and compliance
– Identity management
– Infrastructure security
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13. How to ensure industry drives open standards
Ensuring interoperability
Security, interfaces to infrastructure-as-a-service, information about
deployment such as resource and component descriptions, management
frameworks, data exchange formats and cloud taxonomies and reference
models
Standards don’t work without heavy participation by prospective end users of
those standards
Community participation, deliberate action, and planning must be a vital part
of any successful standards process (Gartner VP David Cearley)
Some areas may not yet be ready for standardisation because change,
innovation and experimentation is happening very quickly
Openness and transparency will be paramount for cloud computing standards
Leaders will need to step up and be recognisable as driving the different areas
of cloud computing standards.
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14. Enhanced Telecom Operations Map
eTOM is a common companion of ITIL, an analogous The Information Technology Infrastructure
standard or framework for best practices in information
technology. Library (ITIL) is a set of concepts and
practices for Information Technology
Both of these frameworks are part of the larger context of Services Management (ITSM), Information
Total Quality Management. Technology (IT) development and IT
operations.
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15. Information Technology Infrastructure Library (ITIL) V3
Strategy creation is Service Design is Service Transition is Service Operation is Continual Service
about: about: about: about: Improvement:
• Operates across all
• Aligning with the • Designing services • Preparing for smooth • Realising that aspects of the
business in line with strategic implementation strategic objective lifecycle
• Identifying the objectives • Uses the Service
target market Measure & reporting
• Evaluating the as input
economics
• Creating a Service
Portfolio
Network and Network and
Product Technology Technology
Management (Engineering) (Operations)
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16. Telstra’s Next Generation Service Management Framework
It is a key component of our
strategy to build a
standardised, repeatable
model for the delivery of
Managed Services.
The framework covers
development activities and
operations for our managed
products and services
providing:
– Consistent language to
describe the offerings
– An end to end view of how we
deliver the service components
– Alignment to Industry Best
Practice frameworks
– Seamless integration with
customer service management
processes
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17. Telstra’s Next-Generation Networks are evolving to take on
more of our customers’ applications
Next Generation Networks
Legacy networks Evolving NGN
(NGN)
2006 2009 2012
Desktop/facilities Desktop/facilities Desktop/facilities
applications
Customer
Business Apps Business Apps
Communications Business applications
IT storage Online applications
LAN & Storage IT & Storage hosting Federation B2B/B2C
PBX LAN & Security management Virtual computing
Video conferencing LAN & Security management
provided
Voice – PSTN/ISDN IP Telephony Unified Communications
Telstra
Mobile – 2G/GPRS Mobile – Next G/IP Mobile – Next G/IP
Data – Frame/ATM IP VPN – DSL/Ethernet IP VPN – DSL/Ethernet
IP migration Move to cloud computing
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18. Product development – outcomes focused
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19. Framework principles and outcomes
Principles Outcomes
Simple Services
Connected
– Deliver immediate customer access via an online ‘One Click’ experience that automatically
provisions and allows customers to control and self manage their services.
– Connect securely to private, public, and mobile
networks that access Telstra value added services on Fast, Secure and Reliable Services
multiple vendor platforms.
– Services provide embedded virtualised utility computing and disaster recovery services
within Telstra’s NextIP network.
Committed Service Levels
Affordable and Efficient Services
– Services must be highly efficient to activate, assure
and operate. – Services are charged on a true “utility” usage basis or a combination of a subscription plus
usage basis.
– Services are designed to enable more applications to – Deliver efficient services that are provided at the lowest possible unit cost.
reliably run on less infrastructure.
– Provide energy efficient “Green” ICT services
Flexible & Efficient Services Everywhere
– Provide the same customer experience regardless of where a customer is located.
– Control over virtualised software and hardware
components as apposed to fixed physical components. – Services will be location independent services that can be delivered locally and globally from
Telstra’s Next IP Network.
– A variable cost model requires a pay as you go
relationship. Compliant Services
– Selected enterprise and business applications that are certified (configured, integrated and
Secure supported) by chosen key vendors (i.e. Microsoft, Oracle etc) and delivered from the cloud.
– Services are certified to the relevant industry standards, such as ISO27001 Security
– High availability and performance of business Standard, Payment Card Industry.
information and communication.
Market Relevant Services
– Protection of your business reputation
– Continuous improvement and lifecycle management of product offerings to ensure these
offerings are always market relevant.
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20. Opportunities in Cloud Computing
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21. ANY QUESTIONS?
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