Cloud Computing Business Tim Preston Tuesday September 27 2011 Presentation Gameplan 1 2 3 4 Cloud computing business introduction Business approaches to cloud computing Cloud financial decision models Recommendations Cloud Computing Quotes and Hidden Agendas Articles Surveyed Dispelling the vapor around cloud computing IBM Above the Clouds A Berkeley View of Cloud Computing UC Berkeley Cloud Computing ROI Assessment BTC Logic Cost of cloud computing expensive up time IT Systems Management Blog The Berkeley article argues that private clouds are not included in cloud computing IBM s take on the cloud Industry wide survey of companies in 2009 Findings Private clouds public clouds right now Privacy security are 1 barrier Many workloads are cloud inappropriate Survey bias large companies 1k 10k employees My opinion small startup companies need the cloud more than anyone Berkeley View Next Berkeley economic arguments to support cloud computing Berkeley Cloud Performance Assessment In practice virtual machines can share CPU s and main memory surprisingly well CPU s already handle context switching well VMswitching is similar to a special case of this Ex when running the STREAM memory benchmark on 75 EC2 instances 1355 MB s and 52 MB s 4 of I O via disks and the network are another story Ex for a 1 GB disk write by 75 EC2 instances 55 MB s and 9 MB s 16 of Network issues will be discussed next Data transfer bottlenecks Berkeley Cloud Decision Model If this statement is true then we are better off with a cloud Note this model assumes that revenue is proportional to user hours and that revenue is not affected by whether we re on a cloud or not More Detailed Cloud Decision Modeling Next we ll examine BTC Logic s model Based on ROI Return on Investment analysis Concrete calculations are based on a blog entry by up time IT Systems Management Blog http www uptimesoftware com uptimeblog cloud virtua lization cost of cloud computing expensive Recommendations FOR clouds Startup business can greatly benefit from public clouds by testing the waters without making risky hardware purchase decisions Servers with spike flatline demand Non computing businesses public clouds can help companies focus on core competencies Web software companies public clouds can allow all employees to work in one location not necessarily the location where web apps are hosted Ex California developers Idaho electricity costs Recommendations AGAINST clouds Software shouldn t be in the cloud if It s subject to government regulations or auditability requirements ex Sarbanes Oxley It processes very sensitive information ex health care records Its workloads are network heavy and heavy control of bandwidth is required ex streaming audio video applications It can be easily run independently on a user s desktop why bother putting it on a cloud