Cloud Computing The New Reality or Just Vapor

Cloud Computing: The New Reality or Just Vapor? RMCMG 01 April 2011 Dr. Tim R. Norton Simalytic Solutions, LLC 719 -635 -5825 email: tim. norton@simalytic. com http: //www. simalytic. com © 2010 Simalytic Solutions, LLC

Agenda u Introduction £ Brief look at Cloud Computing u From Theory to Practice £ Applying recent research to the real world u Practical Applications £ Real-world considerations u Conclusion © 2010 Simalytic Solutions, LLC Cloud Computing: The New Reality or Just Vapor? - CMG 2010 Paper 5137, December 9, 2010 2

Introduction u What £ is Cloud Computing? Services over the Internet Infrastructure as a Service (Iaa. S) n Platform as a Service (Paa. S) n Software as a Service (Saa. S) n © 2010 Simalytic Solutions, LLC Cloud Computing: The New Reality or Just Vapor? - CMG 2010 Paper 5137, December 9, 2010 3

Classes of Computing u Classes £ Appearance of physical hardware n £ Much like Iaa. S Application development specific environments n £ of Utility Computing Much like Paa. S Application delivery n Much like Saa. S or Aaa. S u Distinguished by Level of cloud system software abstraction £ Level of management £ © 2010 Simalytic Solutions, LLC Cloud Computing: The New Reality or Just Vapor? - CMG 2010 Paper 5137, December 9, 2010 4

Economics u Cloud Computing Economics: Cap. Ex to Op. Ex When demand for a service varies with time £ When provisioning for the peak load £ When demand is unknown in advance £ When applications that scale horizontally £ n Many cloud systems can be used to complete the computation faster than would be possible using a single physical system. © 2010 Simalytic Solutions, LLC Cloud Computing: The New Reality or Just Vapor? - CMG 2010 Paper 5137, December 9, 2010 5

From Theory to Practice u Recent £ Research A View of Cloud Computing n UC Berkeley Reliable Adaptive Distributed Systems Laboratory l l £ Michael Armbrust, Armando Fox, Rean Griffith, Anthony D. Joseph, Randy Katz, Andy Konwinski, Gunho Lee, David Patterson, Ariel Rabkin, Ion Stoica, and Matei Zaharia Communications of the ACM, April 2010, v 53 n 4 p 50 To Lease or Not to Lease From Storage Clouds n n University of Texas at Austin, Edward Walker National Radio Astronomy Observatory, Walter Brisken and Jonathan Romney l £ IEEE Computer, April 2010, v 43 n 4 p 44 Cloud Computing for Mobile Users: Can Offloading Computation Save Energy? n Purdue University, Karthik Kumar and Yung-Hsiang Lu l IEEE Computer, April 2010, v 43 n 4 p 51 © 2010 Simalytic Solutions, LLC Cloud Computing: The New Reality or Just Vapor? - CMG 2010 Paper 5137, December 9, 2010 6

Top 10 u Top 10 Obstacles and Opportunities for Cloud Computing £ A View of Cloud Computing n UC Berkeley Reliable Adaptive Distributed Systems Laboratory (RAD Lab) © 2010 Simalytic Solutions, LLC Cloud Computing: The New Reality or Just Vapor? - CMG 2010 Paper 5137, December 9, 2010 7

Number 1 u Business Continuity and Service Availability How reliable is the Could provider? £ Have outages been because of technical or other reasons? £ Is the Cloud provider a single point of failure? £ Lack of business continuity internally £ Lack of data exchange standards between providers £ © 2010 Simalytic Solutions, LLC Cloud Computing: The New Reality or Just Vapor? - CMG 2010 Paper 5137, December 9, 2010 8

Number 2 u Data Lock-in Provider unique APIs £ No standardization for data extraction £ Attractive to providers £ Price increases n Reduces user’s ability to change if unhappy n © 2010 Simalytic Solutions, LLC Cloud Computing: The New Reality or Just Vapor? - CMG 2010 Paper 5137, December 9, 2010 9

Number 3 u Data Confidentiality/Auditability How does the provider guarantee security? £ How are SOX and HIPAA audits done? £ External threats £ Internal threats £ © 2010 Simalytic Solutions, LLC Cloud Computing: The New Reality or Just Vapor? - CMG 2010 Paper 5137, December 9, 2010 10

Number 4 u Data Transfer Bottlenecks Increasing application use of data £ High costs of Internet transfers £ n Can erode savings from offloading computing Data placement within the application as, or more, critical as outside placement £ Never underestimate the bandwidth of a 747 full of tape! £ © 2010 Simalytic Solutions, LLC Cloud Computing: The New Reality or Just Vapor? - CMG 2010 Paper 5137, December 9, 2010 11

Number 5 u Performance £ Unpredictability Poor network and I/O sharing Good processor and memory sharing but n Performance may vary in seemingly unrelated ways n l £ Solutions: t Better O/S and hardware I/O handling t Flash memory instead of disks Unpredictable scheduling of virtual machines n All the threads of a program need to run at the same time but are on different VMs © 2010 Simalytic Solutions, LLC Cloud Computing: The New Reality or Just Vapor? - CMG 2010 Paper 5137, December 9, 2010 12

Number 6 u Scalable £ Storage How do cloud properties apply to persistent storage? n Short-term usage l Scaling down as well as up as needed No upfront cost n Infinite capacity on demand n £ Still an open research problem © 2010 Simalytic Solutions, LLC Cloud Computing: The New Reality or Just Vapor? - CMG 2010 Paper 5137, December 9, 2010 13

Number 7 u Bugs £ in Large-Scale Distributed Systems Opportunity: n Use virtual machines to l l Provide isolation Capture information not available stand-alone © 2010 Simalytic Solutions, LLC Cloud Computing: The New Reality or Just Vapor? - CMG 2010 Paper 5137, December 9, 2010 14

Number 8 u Scaling £ Pay-as-you-go n Allows scaling l l £ Up and down Dynamic with statistical learning predictive tools The opportunity: n Rapid scaling l £ Quickly Saves resources, money and energy Overlaying Business Models n Cloud Users vs. Cloud Providers © 2010 Simalytic Solutions, LLC Cloud Computing: The New Reality or Just Vapor? - CMG 2010 Paper 5137, December 9, 2010 15

Number 9 u Reputation Fate Sharing The entire cloud may be associated with the behavior of some cloud users. £ Legal liability £ Cloud user or cloud provider n Cloud provider liable for an offending cloud user’s actions that affect “innocent bystander” cloud users? n © 2010 Simalytic Solutions, LLC Cloud Computing: The New Reality or Just Vapor? - CMG 2010 Paper 5137, December 9, 2010 16

Number 10 u Software Licensing Effect of virtualization? £ Economy of scale £ Cloud providers spread expensive licenses over many cloud users n Software vendors raise license costs to recover loss of revenue n Heavy reliance on open source software £ Opportunity: commercial pay-as-you-go software licensing £ © 2010 Simalytic Solutions, LLC Cloud Computing: The New Reality or Just Vapor? - CMG 2010 Paper 5137, December 9, 2010 17

Reality or Vapor? u Opportunities £ Reality Successfully solve a real business problem Reduce costs n Gain functionality n u Obstacles £ Vapor Create more problems than solved Add complexity n Increase business risk n Hidden costs n © 2010 Simalytic Solutions, LLC Cloud Computing: The New Reality or Just Vapor? - CMG 2010 Paper 5137, December 9, 2010 18

Unique Use of the Cloud u Saving Energy for Mobile Systems Battery life is the critical factor £ Mobile devices have limited computation power £ Off-loading computations can reduce energy use £ Balance computations and transmissions n Function of work done and transmission bandwidth n Issues: privacy, security, reliability and latency £ Could apply to non-mobile devices £ © 2010 Simalytic Solutions, LLC Cloud Computing: The New Reality or Just Vapor? - CMG 2010 Paper 5137, December 9, 2010 19

Buy or Lease u Technical and Financial Trade-offs Companies use different approaches £ What’s included in the analysis? £ Capital costs n Operational costs n Interest rates n Salvage values n © 2010 Simalytic Solutions, LLC Cloud Computing: The New Reality or Just Vapor? - CMG 2010 Paper 5137, December 9, 2010 20

Decision Model u Unique £ Model Based on NPV Analysis NPV (Net Present Value) calculated for: Purchase using capital and operational costs n Lease using life-of-lease and operational costs n £ Decision based on delta NPV ΔNPV 0 the buy n ΔNPV < 0 the lease n © 2010 Simalytic Solutions, LLC Cloud Computing: The New Reality or Just Vapor? - CMG 2010 Paper 5137, December 9, 2010 21

Law of One Price u “In an efficient market, identical goods will have only one price. ” £ Assumes storage becoming commodity n Physical and Cloud u Latency Not included in the model £ Affects validity of commodity assumption £ © 2010 Simalytic Solutions, LLC Cloud Computing: The New Reality or Just Vapor? - CMG 2010 Paper 5137, December 9, 2010 22

Conclusion u The £ A View of Cloud Computing: UC Berkeley n £ BOTH – depending of business objectives and the ability to leverage the cloud while mitigating the obstacles To Lease or Not to Lease From Storage Clouds: UT / NRAO n £ New Reality or Just Vapor? REALITY – but a business decision Cloud Computing for Mobile Users: Purdue n REALITY – for a very specific application with well defined goals © 2010 Simalytic Solutions, LLC Cloud Computing: The New Reality or Just Vapor? - CMG 2010 Paper 5137, December 9, 2010 23

Conclusion u The £ New Reality or Just Vapor? No single answer Too many company specific variables n Too many relationships n l Cloud provider, cloud user, software vendor, hardware vendor, network provider and all of the other external entities © 2010 Simalytic Solutions, LLC Cloud Computing: The New Reality or Just Vapor? - CMG 2010 Paper 5137, December 9, 2010 24

Conclusion u Research £ institutions Identifying many of the issues The Top 10 Obstacles and Opportunities are a good start n Each organization needs to develop their own list n £ Producing tools and techniques Using old tools in new ways n Creating new tools specifically designed for cloud environments n © 2010 Simalytic Solutions, LLC Cloud Computing: The New Reality or Just Vapor? - CMG 2010 Paper 5137, December 9, 2010 25

Reality or Vapor? A blend of business and technology. Presentation will be available at: http: //www. simalytic. com/Papers. html © 2010 Simalytic Solutions, LLC Cloud Computing: The New Reality or Just Vapor? - CMG 2010 Paper 5137, December 9, 2010 26