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John Landry at Mass TLC Feb09
1. The Game Changing Disruptive
Technology Driving Innovation and
Capital Efficiency
… aka Cloud Computing
2009 MassTLC Annual Meeting
Wednesday, February 25, 2009
Moderator: John Landry
Lead Dog Ventures
2. Cloud Computing
The 4th Platform Shift?
• Confusion and skepticism abounds.. as always!
- SaaS > Software as a Service
- PaaS > Platform as a Service
- DaaS > Dev/Deployment Environment as Service
- XaaS > X as a Service
• P4.0 - the most disruptive force in software industry and by extension,
the hardware industry, the storage industry… the whole freakin’
technology industry since the Web
OLTP > PC > Web > Cloud
• Collaborative Dev, Instant Deployment, New Application Delivery and
Integration Models.. Out of the Box! Now!
• Explosion of offerings at accelerating pace
3. Cloud Computing Enablers
A Perfect Computing Storm!
• Server Virtualization Dark Clouds
… From one, let there be many! Migration
• Grid Consolidation SLA’s
… From many, let there be one! Cost Estimation
Suppliers
• Ubiquitous Fast Network Availability Privacy / Security
… WiFi, 3G, WiMax, FIOS, Hi-Speed Cable Inertia
LockIn
• Standard Interactive Rich Client
… JavaScript, AJAX, DHTML, CSS
… Desktop / Laptop / SmartPhone
• Open Source Development Tools Everywhere
… Components, Widgets, Libraries (mootools, jstween, jquery, etc)
• IT Automation and MegaScale Management!
… Automatic Deployment, Metering & Billing
4. Traditional vs. Cloud Computing
Traditional Cloud
Computing Computing
Acquisition Buy assets and build
Buy service
Model technical architecture
Pay for fixed assets
Business and administrative Pay based on use
Model overhead
Access Internal network or
Internet, any device
Model intranet, corporate client
Technical Single tenant, Scalable, elastic,
Model nonshared, static dynamic, multitenant
5. Cloud Computing for Dummies:
Landry’s Simple Usage Model
• Amazon S3
- If you bought a book, you have an S3 ID
- Keys and Buckets – not for dummies!
• Jungle Drive
- Sets up J: ―Local‖ drive on Windows / Mac / Linux File System
(WebDAV) that’s really on S3
- Drag and Drop / File Save As / Copy-Paste / Access Control
- Web Access to Files / Block Moves (Advanced Features)
• GoodSync by RoboForm (still a good idea!)
- Syncs files between Local Drive and Jungle Drive
- Access Control / Sync Settings by Folder Groups
• Photo’s, Docs, Music, Vids all in one safe secure place… or in
every place… and all accessible from the Web for virtually no money~!
6. The Cloud Stack: A Useful Taxonomy
• Infrastructure: the core computing resources
and network fabric for the cloud deployment
• Platform: the software infrastructure that allows
sys admins and developers to deploy an app to
the cloud
• Services: additional services that can be woven
into the cloud app, such as billing, storage,
integration
• Applications: the ultimate cloud product - the
actual cloud based application that the user
touches.
7. The Cloud Panel:
Infrastructure & Platforms
• Jon Martin: EMC
Director Prod Mgt, Cloud Infrastructure Group
• Dave Mitchell: IBM
Director of Strategy and Emerging Business in
ISV & Developer Relations
• Jinesh Varia: Amazon
Web Services Evangelist
• Steve Vinter: Google
Engineering Director
• Mike Werner: Microsoft
Platform Strategy Advisor, Cloud Computing
8. The Cloud Panel:
Services & Applications (and $$$!)
• Larry Bohn: General Catalyst
Managing Director
• Steve Clifton: Animoto
Co-founder and CTO
• Greg Arnette: Sonian
Founder and CTO
• Nicos Vekiarides: TwinStrata
Co-Founder and CEO
9. Amazon
Jinesh Varia: Amazon
Web Services Evangelist
11. moving on up… the stack.. Fast!
• Amazon Simple Storage Service (Amazon S3) Oct 2007
• Amazon Simple Queue Service (Amazon SQS)
• Amazon Elastic Compute Cloud (Amazon EC2)
• Amazon Red Hat Linux
• Amazon SimpleDB
• Amazon DevPay
• Amazon Flexible Payments Service (Amazon FPS)
• Amazon CloudFront CDN
• AWS Management Console
• Amazon EC2 running MS Windows Server® 2003
• Amazon IBM Development and Production AMIs
• Amazon Public Data Instances Jan 2009
12. ..a better, faster, cheaper CDN?
―Amazon CloudFront has no
upfront commitments - you
only pay for what you have
used. There are no upfront
fees or high volume
requirements and no
negotiations are necessary
because we have published
low prices from the start.‖
―Amazon CloudFront builds
further on that seamless
integration by making it
really simple to distribute
Amazon S3 content world-
wide‖
14. …not the poor stepchild anymore
AWS trades heavily on the fact that Amazon itself is
the biggest customer. quot;We tend to build the things
people are asking for internally,quot; Jassy says.
And the idea that AWS is mostly about wringing
extra bucks (especially off-season) out of
Amazon's data centers? quot;We've far exceeded the
excess capacity of our internal system,quot; Jassy
says. quot;That ship sailed 18 months ago.quot;
For a company at which operational data is a state
secret, that's a telling detail: AWS is now big
enough to be piling up its own silicon.
16. Google… cute apps for the masses?
And there's the real disruption. Instead of building cute
apps and ladling them out to the masses — the
Google and Microsoft model — Amazon is delivering
silicon power to the people.
Bezos is fueling a flotilla of nimble, aggressive
entrepreneurs, including frontier types chafing inside
gilded prisons like the Googleplex.
For them, AWS is a launch pad, not just for the next
million Facebook apps, but also for personal live TV
channels, virtual desktops, pay-by-the-mile auto
insurance, and no doubt plenty of things no one has
thought of yet.
Spencer Reiss – Wired 04/08
17. Google
Steve Vinter: Google
Engineering Director
18. ..is it all too simple?
• Millions of CPUs, dozens of data • Simple Storage Service (S3)
centers, customized Red Hat - $0.15/GB/month; similar cost for data
Linux transfers
• Google File System (GFS) • Elastic Compute Cloud (EC2)
- Index split and replicated; data - Amazon Machine Image (raw and VM);
split into quot;shardsquot; and $0.10/hour for small server
replicated
• Customer Examples:
• MapReduce for massive data
queries (1,000+ servers) - SmugMug: up to 750 VMs, 400TB
• Global Work Queue - Zillow: 500 servers and 4TB for 3 weeks
- Animoto, Sonian, TwinStrata, Akiba
• Google AppEngine
20. Maybe I’m an idiot, but…
“ I can’t think of anything that isn’t cloud computing
with all of these announcements‖ ______ said.
Maybe I’m an idiot, but I have no idea what
anyone is talking about. What is it? It’s complete
gibberish. It’s insane. When is this idiocy going to
stop?
We’ll make cloud computing announcements. I’m
not going to fight this thing. But I don’t understand
what we would do differently in the light of cloud
computing other than change the wording of some
of our ads. That’s my view.”
21. Maybe I’m an idiot, but…
―The lady doth protest too much, methinks.
Hamlet Act 3, scene 2, 222–230
22. ..still a dinosaur
• But what I'm asking today is whether
you have changed your opinion. Do
you think that Microsoft is still a
dinosaur?
• Benioff: I think Microsoft is still a
dinosaur. More than ever, it tries to hold
onto its monopolistic position around
technology that they hold, whether it's
SQL Server, whether it's NT, whether it's
Windows, whether it's Office--these are
their cash cows they don't want
slaughtered. Charles Cooper and Dan Farber
CNET News.com 18 March 2008
23. Microsoft
Mike Werner: Microsoft
Platform Strategy Advisor, Cloud
Computing
24. Will Azure be like A_Zune?
T
http://www.youtube.com/watch?v=DDynyp
0trJY&feature=related
25. …Looking at the cloud thru Windows?
• Red Dog? Pink Poodle? Azure?
• Srivasta coaxed Dave Cutler, the father of
Microsoft’s NT operating system, out of “semi-
retirement,” and began assembling a core team of
engineers. Because of Srivastava’s and Cutler’s
pedigrees, the team consisted primarily of
“Windows guys.”
• So how do you turn a bunch of Windows guys into
services guys? Mary Jo Foley 2/23/09 ZD-Net
26. 5-10 Years?
• What we announced today was much broader than anything anyone
has tried before,quot; says Microsoft Senior Vice-President Robert Muglia.
• Gartner analyst David Mitchell Smith says quot;this is much bigger than
NT. It is a tremendously broad and ambitious strategy. This is clearly
about more than just competing with Amazon.―
• But it will be a long time before any of Microsoft's plans come to pass.
quot;Realistically, you're talking about five to 10 yearsquot; before Azure's full
impact is felt, said Muglia. So far, all it has done is give programmers
at the conference some software tools to begin experimenting with
Azure. Actual services won't begin to roll out until 2009
27. ..it’s all about margins?
quot;I'd be surprised if no one else does this,quot; he says,
pausing for effect. quot;It's a really good idea!quot; And
there may be an ace up his sleeve.
Any economist will tell you that a commodity
business — storing and processing data, for
instance — is a mug's game, with prices that
plunge inevitably toward the cost of production (in
the case of bits, pretty close to zero). That's music
to his' ears. quot;Commodity businesses don't scare
us,quot; he says. quot;We're experts at them. We've never
had 35 or 40 percent margins like most tech
companies.
28. Clouds & Open Source
• Berquist said: quot;With cloud computing the operating system and the
infrastructure is managed and paid for by the vendor rather than by the
customer.
• quot;The more we move towards cloud computing, the more that rewards
open source because the cloud software vendor can not afford to pay
for software for say 25,000 server CPUs.
• quot;They will go towards open source and in many cases self support.
People can not afford to spend the money that would be necessary in
the old client to server model.
• quot;It can be 10 times cheaper than relying on the commercial guys.―
Tom Berquist
CFO Ingres
33. ..and what about hardware?
• Dell is projecting, in fact, that 35 per cent of x64
server sales could be driven by high performance
computing, service providers, and these
hyperscale distributed computing deployments
within the next three years.
• …the differences in the ways that search engine
companies implement their code to distribute data
and queries across their machines will drive the
architectural choices Dell helps these companies
make. Different search engines get slightly
different, but still custom, boxes
34. EMC
Mike Feinberg: EMC
SVP, Cloud Infrastructure
Group, EMC
Jon Martin: EMC
Director of Product Management
35.
36. ..the death of hardware?
• Manufacturers like IBM and Sun are struggling to
move to the new model. Sun already offers an
online rental system and expects to keep selling
hardware. quot;We've got to be the infrastructure,quot;
says Greg Papadopoulos, Sun's chief technical
officer. If you can't be them, arm them.
The Death of Hardware
Quentin Hardy Forbes Magazine
February 11, 2008
37. ..they’ve got the power!
Project 02: The Dalles
Oregon Data Center
68K Sq Ft
Google: 450,000 Servers!
105+ Mwatts
Google Data Centers
power needs equivalent
to San Francisco
Operational Competency
& cheap power is key
cloud-dominance
..and upstream on the Columbia, Microsoft and Yahoo have contracted for 95MW
..and MS announced plans for data centers in Siberia and Dublin, Google in
Lithuania and Dublin, and AT&T for couple in Shanghai
38. Google.. It’s special?
• …it is now the norm for Google to construct its data
centers by piecing together intermodal shipping containers
pre-packed with servers and cooling equipment. In 2003,
Google filed for a patent on this sort of modular data
center, and the patent was granted last October.
• If Google can leverage an extra five degrees centigrade
from Intel, it can save a few penguins - and some serious
cash. According to Data Center Knowledge, Google runs
at least 36 data centers across the globe, and several
more are under construction.
• Intel also customizes power saving motherboards for
Google - a service not afforded other customers.
39. Intel gets it…
• Intel says that by 2012, Mega Data Centers run by the likes of Google,
Microsoft, Amazon, and Facebook will account for 20 to 25 per cent of its
server chip sales. Unless the economy is still melting… currently 10%
• Focused on optimizing server hardware and software for use in any quot;shared,
dynamically-scalable resource pool.―
• Economics are different: you get so much scale that the cost of labor becomes
[much smaller]. And what you're left with is that about 50 per cent of the total
cost of ownership...is the cost of the compute infrastructure - server and
storage - and about another 25 per cent is the cost of power.―
• The company has even reorganized itself to create a single organization
dedicated to cloud fluffing. Its new high-density compute organization is
building lower-power, high-density servers. It's fashioning containerized data
centers that run at higher temperatures and consume far less power. It's
optimizing code.
40. … but is Apple the sleeper cell?
• the iPhone can easily sync
applications such as e-mail,
contacts, calendar, music and
video content. It is estimated
that there have been 600 million
downloads of iTunes making it
the most successful app in
history
• the iPhone fills as hub of users'
digital lifestyle. The proof is in the
numbers: Apple recently reported
that over 100 million applications
have been downloaded from the
AppStore site.
43. ..and live from the PDC
• For example, Muglia points out that Microsoft can run
e-mail programs for corporate customers in its own
data centers for a fraction of the cost of customers
running the systems themselves. That can free up
capital spending dollars and allow staffers to focus on
more critical jobs.
• Lubor Ptacek, an executive at software maker Open
Text, which helps companies keep track of various
types of information, plans to advise customers to let
Microsoft archive older records at its data centers. quot;In
this economy, companies still need to keep their
content, but they don't have the money to spend on
fancy new storage systems,quot; he says.
44. TwinStrata
Nicos Vekiarides
TwinStrata
Co-Founder and CEO
45. Animoto
Steve Clifton, Animoto
Co-founder and CTO
47. Cloud Computing for Geeks
• Company: 18 month old NYC startup
• Application: Make it easy for people
to create videos with their own
photos or their own music
• Architecture: App built on Amazon
EC2, S3 and SQS.
• Biz Model.. Free 30 second video, $3
for full size
• Early Spring 08: Average
• Method: Each video request spins
up and EC2 server instance using 5K vids / day
about 5 mins of CPU time at
$0.10/min - Revenue is $3 • Mid-April 08 Facebook App
• Scaled Up 1000X with no fixed 750K vids / 3 days!
costs… now that’s a new model!
Max 25K vids / hour!
49. Using S3 to Avoid VC
• Amazon's developer-customers reap several
advantages. Capital efficiency is one. (Trendy
Mountain View- and Delhi-based startup
SlideShare cheekily dubbed one of its
presentations quot;Using S3 to Avoid VC.quot;) Another is
instant scalability. AWS users can add or delete
server and storage capacity without getting up
from their Aerons.
Jonathan Boutell
Dec 10, 2008 2:02 AM GMT
50. ..invest in apps? Amazon, Google, Apple?
• That's not Amazon's only edge. Chasing those fat margins,
both Google and Microsoft are building their own Web
apps — the same market indie developers can enter on
the cheap using AWS.
• Sergey and Larry will gladly toss you the API for Google
Earth — but if you're building a better mapping app,
Amazon is your place. And even if Google or Microsoft
eventually does embrace utility computing, would anyone
building, say, a better search engine want to park their
code in Mountain View?
• As VC Fred Wilson suggests, quot;Amazon is out-Googling
Google.quot;
51. Q&A
The World Wide Computer
… programming it will be the great enterprise of the 21st century
Nick Carr