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Clouds in the sky
What do they announce ? … What are the opportunities ?



TELEFÓNICA I+D
Date: 1-04-09




© 2009 Telefónica Investigación y Desarrollo, S.A. Unipersonal
Forecasts announce that
   skies will be “Cloudy”
   tomorrow but …




                                                                 … What do we mean by “Clouds” ?


TELEFÓNICA I+D
                                                                          2
© 2009 Telefónica Investigación y Desarrollo, S.A. Unipersonal
Have you ever tried to define
    what a real cloud is ?




TELEFÓNICA I+D
                                                                 3
© 2009 Telefónica Investigación y Desarrollo, S.A. Unipersonal
There are multiple definitions …

                                                                                                             “Cloud computing is an
                                                                                                              emerging approach to
                                                                   “A hosted infrastructure
                              g the
                      is usin                                                                                shared infrastructure in
              puting                                               model that delivers
       d com                 eone
“Clou                                                                                                          which large pools of
                     ss som                                                                s
                                                                   abstracted IT resource
                   e
            to acc
     ternet                                                                                                systems are linked together
                           ing on                                   over the Internet”
  in
                   re runn
           softwa                                                                                             to provide IT services”!
    else's                    are in                                                           s LLC
                                                                          Thomas Weisel Partner
                       hardw
               else's
       meone                                                                                                                          IBM!
                                 ter”
                         ata cen
   so
                 lse's d
         eone e
    som                           gham
                         Cunnin
                  Lewis


                                                                                                       “A pool of abstracted, highly
                                                                                                    scalable, and managed co
                                                                                                                                mpute
                                                                                                    infrastructure capable of ho
                                                                                                                                 sting
                                                                                                  end-customer applications
                                                                                                                              and billed
                                                                                                            by consumption”

                                                                                                                   Forrester Research

   TELEFÓNICA I+D

  © 2009 Telefónica Investigación y Desarrollo, S.A. Unipersonal
This is ours …



                     Clouds refer to the IT infrastructures
                     enabling Utility-like features
                     in “X as a Service” models




TELEFÓNICA I+D

© 2009 Telefónica Investigación y Desarrollo, S.A. Unipersonal
Level of abstraction

               Software as a Service (SaaS)
                   Provision of a) desktop software programs or b) business
        !!
                   management applications as a Service


               Platform as a Service (PaaS)
                   Enable to rent a) “containers” where you can run your
        !!
                   application or b) “programming libraries” (e.g., Hash Table)

               Infrastructure as a Service (IaaS)
                   Enable to rent a) virtual machine instances to run your
        !!
                   application or b) storage space



TELEFÓNICA I+D
                                                                 6
© 2009 Telefónica Investigación y Desarrollo, S.A. Unipersonal
When do we say that a Service is a Utility ?


             Ease of use
  !!

             Pervasive
  !!

             Hidden complexity
  !!

             Cheap
  !!

             Scalable on demand
  !!

             Reliable
  !!

             Secure
  !!

TELEFÓNICA I+D
                                                                 7
© 2009 Telefónica Investigación y Desarrollo, S.A. Unipersonal
Clouds: what make them possible
                                                                            Cost (medium scale)    Cost (large scale)
                                                                 Resource                                               Ratio
             Economies of scale
  !!                                                             Network    $95 / Mbps / month    $13 / Mbps / month    ~7x
                                                                 Storage    $2.20 / GB / month    $0.40 / GB / month    ~6x
             (Hamilton, 2008)
                                                                 Admin      !140 servers/admin    >1000 servers/admin   ~7x


             Off-peak capacity:
  !!
                Some services have different peak times
             —!
             —! Some services in different time zones


             Open Source base components
  !!


             Virtualization technologies
  !!


             The Web
  !!
TELEFÓNICA I+D
                                                                            8
© 2009 Telefónica Investigación y Desarrollo, S.A. Unipersonal
Ease of use, pervasive, hidden complexity

             Do it yourself, through a Web browser or
  !!
             API or Web service


             Anytime, anywhere (freedom of movement)
  !!
             and with any device


             Easy and instant rollout / cancellation
  !!
             procedures


             Forget about day-to-day maintenance or
  !!
             upgrades of software/hardware



TELEFÓNICA I+D
                                                                 9
© 2009 Telefónica Investigación y Desarrollo, S.A. Unipersonal
Cheap, 30% of IT costs according to Forrester




TELEFÓNICA I+D
                                                                 10
© 2009 Telefónica Investigación y Desarrollo, S.A. Unipersonal
Cheap, scalable on demand
                                                                                         Capacity
        Ability to Increase/decrease




                                                                 Resources
!!




                                                                                                    Resources
                                                                                                                           Capacity
        resources as demand changes
        (handling over- and under-
        provisioning)                                                                    Demand t                            t
                                                                                                                 Demand
                   Elastically : Amazon ECS
        —!




                                                                             Resources
                   Dynamically: Google App Engine
        —!
                                                                                                                Capacity
        Pay per use models transform
!!
        software/hardware costs into a                                                                          Demand
        variable expense instead of a large                                                                         t
        fixed expenditure
        Minimized risks:
!!

                   No up-front costs (nothing to
        —!
                   buy in advance)
                   Turn-off services you are not
        —!
                   using

 TELEFÓNICA I+D
                                                                    11
© 2009 Telefónica Investigación y Desarrollo, S.A. Unipersonal
Secure and reliable

             Based on enterprise grade hardware
  !!

             Designed for failures
  !!

                        Automatically migrates virtualized
             —!
                        component over available resources
                        Use multiple Clouds
             —!

             Your data is not lost if you loose (or
  !!
             someone steels) your laptop or USB drive
                        1 of 10 laptop computers are stolen within
             —!
                        12 months of purchase
                        66% of USB drive owners report losing
             —!
                        them (over 60% of data is corporate)

TELEFÓNICA I+D
                                                                 12
© 2009 Telefónica Investigación y Desarrollo, S.A. Unipersonal
Clouds: The latest evolution of hosting




TELEFÓNICA I+D
                                                                 13
© 2009 Telefónica Investigación y Desarrollo, S.A. Unipersonal
Clouds: The latest evolution of virtualization




TELEFÓNICA I+D
                                                                 14
© 2009 Telefónica Investigación y Desarrollo, S.A. Unipersonal
Cloud computing and its brother´s buzzwords




                    Software as a Service, virtualization, grid computing they are all
                    related to cloud computing but do not necessarily equivalent.
TELEFÓNICA I+D
                                                                 15
© 2009 Telefónica Investigación y Desarrollo, S.A. Unipersonal
So some remarks are in order …

            Delivering Software as a Service
  !!
            from the network does not
            necessarily means you are doing
            Cloud Computing:
               You may host software in a single
            —!
               dedicated server on the Internet
               instead of in a Cloud
            —! Cloud-based SaaS implies that the
               infrastructure dynamically adapts
               to demand
            Cloud does not equal virtualization
  !!
               Enabled by technologies that
            —!
               support virtualization
            —! Implement utility-like features on
               top of them
TELEFÓNICA I+D
                                                                 16
© 2009 Telefónica Investigación y Desarrollo, S.A. Unipersonal
TELEFÓNICA I+D
                                                                 17
© 2009 Telefónica Investigación y Desarrollo, S.A. Unipersonal
A revolution is on the makings…we
              should learn from history




Local IT Infrastructures                                              Cloud Computing


TELEFÓNICA I+D
                                                                 18
© 2009 Telefónica Investigación y Desarrollo, S.A. Unipersonal
Is cloud computing going to
                                                          revolutionize corporate IT?




“The ultimate goal of a professional CIO should be to render themselves obsolete”
Nick Carr, author of “IT Doesn´t Mattter” and “The Big Switch”



TELEFÓNICA I+D
                                                                      19
© 2009 Telefónica Investigación y Desarrollo, S.A. Unipersonal
Challenges / Risks: not ready for enterprises yet?




TELEFÓNICA I+D
                                                                 20
© 2009 Telefónica Investigación y Desarrollo, S.A. Unipersonal
Cloud computing, enables new business models:
       Web access + dynamically scalable + cheap = “Free” services




                                                                      The Webmail windfall
                                                                      from “Free! Why $0.00 Is
                                                                      the Future of Business”
                                                                      Chris Anderson,
                                                                      Wired Magazine
                                                                      March 2008




TELEFÓNICA I+D
                                                                 21
© 2009 Telefónica Investigación y Desarrollo, S.A. Unipersonal
Cloud computing
                                                                      enables “CapEx-
                                                                        zero” startup
                                                                        costs and has
                                                                       allowed lots of
                                                                           Web 2.0
                                                                        companies to
                                                                           flourish




TELEFÓNICA I+D
                                                                 22
© 2009 Telefónica Investigación y Desarrollo, S.A. Unipersonal
What impact has cloud computing
                      had into the Web/startup world?
               Lowers entry barriers
    !!

               Build a business with a lot less capital
    !!

               With less skills, deploy a complex,
    !!
               scalable applications
               Best ideas will prevail, execution is
    !!
               easier
               Value in solving problems or having
    !!
               domain knowledge
               Value is in the user experience of the
    !!
               service/application and not in the
               infrastructure to support it
TELEFÓNICA I+D
                                                                 23
© 2009 Telefónica Investigación y Desarrollo, S.A. Unipersonal
And for consumers and professionals, it is a
new way of working: Anywhere computing

        IT Centric Model                                         Cloud Computing
        Device centric                                           User centric
        Application centric                                      Task driven
        PC and servers                                           Infinite computing
        Isolated data                                            Anywhere accessibility
        Collaboration with close                                 Wide scale group
        peers                                                    collaborations




TELEFÓNICA I+D
                                                                           24
© 2009 Telefónica Investigación y Desarrollo, S.A. Unipersonal
Cloud computing is a major driver of IT
  and communications convergence



                        Telefónica aims to be the ITC
                        operator on which you trust that
                        allows cloud computing to be a
                        reality




TELEFÓNICA I+D

© 2009 Telefónica Investigación y Desarrollo, S.A. Unipersonal
With Telefónica R&D actively contributing to
                      improve the state of the art in the area

             Key partner in most relevant EU FP7
  !!
             projects related to Cloud




                 Active collaboration with major
       !!
                 scientific groups in Spain (of
                 international relevance)
                             Cloud chapter in Morfeo
                 —!

                             Avanza Nuba proposal
                 —!


TELEFÓNICA I+D
                                                                 26
© 2009 Telefónica Investigación y Desarrollo, S.A. Unipersonal
We believe that the cloud should be open

             Open standards are necessary to face
  !!
             current challenges and barriers to adoption
                        Security
             —!

                        Data and Application Interoperability
             —!

                        Data and Application Portability
             —!

                        Governance and Management
             —!

                        Metering and Monitoring
             —!

             Goals of the Open Cloud
  !!
                        Choice
             —!

                        Flexibility
             —!

                        Speed and Agility
             —!

                        Skills
             —!

TELEFÓNICA I+D
                                                                 27
© 2009 Telefónica Investigación y Desarrollo, S.A. Unipersonal
Future trends in cloud computing

             Costs are switching from server
  !!
             and storage costs to real estate,
             electricity, cooling and
             personnel!!!


             Lots of interesting new ideas are
  !!
             emerging around micro or nano
             datacenters, leverage the power
             of the edge (Microsoft, SUN,
             Telefonica R&D, Thompson, etc.)




TELEFÓNICA I+D
                                                                 28
© 2009 Telefónica Investigación y Desarrollo, S.A. Unipersonal
We should listen to the visionaries….
            “If computers of the kind I have
            advocated become the computers of
            the future, then computing may
            someday be organized as a public
            utility just as the telephone system is a
            public utility... The computer utility
            could become the basis of a new and
            important industry.”


            John McCarthy, MIT Centennial in 1961




TELEFÓNICA I+D

© 2009 Telefónica Investigación y Desarrollo, S.A. Unipersonal
Thanks !!




TELEFÓNICA I+D
                                                                 30
© 2009 Telefónica Investigación y Desarrollo, S.A. Unipersonal
© 2008 Telefónica Investigación y Desarrollo, S.A. Unipersonal

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Spain Getting Ready For Cloud Computing

  • 1. Clouds in the sky What do they announce ? … What are the opportunities ? TELEFÓNICA I+D Date: 1-04-09 © 2009 Telefónica Investigación y Desarrollo, S.A. Unipersonal
  • 2. Forecasts announce that skies will be “Cloudy” tomorrow but … … What do we mean by “Clouds” ? TELEFÓNICA I+D 2 © 2009 Telefónica Investigación y Desarrollo, S.A. Unipersonal
  • 3. Have you ever tried to define what a real cloud is ? TELEFÓNICA I+D 3 © 2009 Telefónica Investigación y Desarrollo, S.A. Unipersonal
  • 4. There are multiple definitions … “Cloud computing is an emerging approach to “A hosted infrastructure g the is usin shared infrastructure in puting model that delivers d com eone “Clou which large pools of ss som s abstracted IT resource e to acc ternet systems are linked together ing on over the Internet” in re runn softwa to provide IT services”! else's are in s LLC Thomas Weisel Partner hardw else's meone IBM! ter” ata cen so lse's d eone e som gham Cunnin Lewis “A pool of abstracted, highly scalable, and managed co mpute infrastructure capable of ho sting end-customer applications and billed by consumption” Forrester Research TELEFÓNICA I+D © 2009 Telefónica Investigación y Desarrollo, S.A. Unipersonal
  • 5. This is ours … Clouds refer to the IT infrastructures enabling Utility-like features in “X as a Service” models TELEFÓNICA I+D © 2009 Telefónica Investigación y Desarrollo, S.A. Unipersonal
  • 6. Level of abstraction Software as a Service (SaaS) Provision of a) desktop software programs or b) business !! management applications as a Service Platform as a Service (PaaS) Enable to rent a) “containers” where you can run your !! application or b) “programming libraries” (e.g., Hash Table) Infrastructure as a Service (IaaS) Enable to rent a) virtual machine instances to run your !! application or b) storage space TELEFÓNICA I+D 6 © 2009 Telefónica Investigación y Desarrollo, S.A. Unipersonal
  • 7. When do we say that a Service is a Utility ? Ease of use !! Pervasive !! Hidden complexity !! Cheap !! Scalable on demand !! Reliable !! Secure !! TELEFÓNICA I+D 7 © 2009 Telefónica Investigación y Desarrollo, S.A. Unipersonal
  • 8. Clouds: what make them possible Cost (medium scale) Cost (large scale) Resource Ratio Economies of scale !! Network $95 / Mbps / month $13 / Mbps / month ~7x Storage $2.20 / GB / month $0.40 / GB / month ~6x (Hamilton, 2008) Admin !140 servers/admin >1000 servers/admin ~7x Off-peak capacity: !! Some services have different peak times —! —! Some services in different time zones Open Source base components !! Virtualization technologies !! The Web !! TELEFÓNICA I+D 8 © 2009 Telefónica Investigación y Desarrollo, S.A. Unipersonal
  • 9. Ease of use, pervasive, hidden complexity Do it yourself, through a Web browser or !! API or Web service Anytime, anywhere (freedom of movement) !! and with any device Easy and instant rollout / cancellation !! procedures Forget about day-to-day maintenance or !! upgrades of software/hardware TELEFÓNICA I+D 9 © 2009 Telefónica Investigación y Desarrollo, S.A. Unipersonal
  • 10. Cheap, 30% of IT costs according to Forrester TELEFÓNICA I+D 10 © 2009 Telefónica Investigación y Desarrollo, S.A. Unipersonal
  • 11. Cheap, scalable on demand Capacity Ability to Increase/decrease Resources !! Resources Capacity resources as demand changes (handling over- and under- provisioning) Demand t t Demand Elastically : Amazon ECS —! Resources Dynamically: Google App Engine —! Capacity Pay per use models transform !! software/hardware costs into a Demand variable expense instead of a large t fixed expenditure Minimized risks: !! No up-front costs (nothing to —! buy in advance) Turn-off services you are not —! using TELEFÓNICA I+D 11 © 2009 Telefónica Investigación y Desarrollo, S.A. Unipersonal
  • 12. Secure and reliable Based on enterprise grade hardware !! Designed for failures !! Automatically migrates virtualized —! component over available resources Use multiple Clouds —! Your data is not lost if you loose (or !! someone steels) your laptop or USB drive 1 of 10 laptop computers are stolen within —! 12 months of purchase 66% of USB drive owners report losing —! them (over 60% of data is corporate) TELEFÓNICA I+D 12 © 2009 Telefónica Investigación y Desarrollo, S.A. Unipersonal
  • 13. Clouds: The latest evolution of hosting TELEFÓNICA I+D 13 © 2009 Telefónica Investigación y Desarrollo, S.A. Unipersonal
  • 14. Clouds: The latest evolution of virtualization TELEFÓNICA I+D 14 © 2009 Telefónica Investigación y Desarrollo, S.A. Unipersonal
  • 15. Cloud computing and its brother´s buzzwords Software as a Service, virtualization, grid computing they are all related to cloud computing but do not necessarily equivalent. TELEFÓNICA I+D 15 © 2009 Telefónica Investigación y Desarrollo, S.A. Unipersonal
  • 16. So some remarks are in order … Delivering Software as a Service !! from the network does not necessarily means you are doing Cloud Computing: You may host software in a single —! dedicated server on the Internet instead of in a Cloud —! Cloud-based SaaS implies that the infrastructure dynamically adapts to demand Cloud does not equal virtualization !! Enabled by technologies that —! support virtualization —! Implement utility-like features on top of them TELEFÓNICA I+D 16 © 2009 Telefónica Investigación y Desarrollo, S.A. Unipersonal
  • 17. TELEFÓNICA I+D 17 © 2009 Telefónica Investigación y Desarrollo, S.A. Unipersonal
  • 18. A revolution is on the makings…we should learn from history Local IT Infrastructures Cloud Computing TELEFÓNICA I+D 18 © 2009 Telefónica Investigación y Desarrollo, S.A. Unipersonal
  • 19. Is cloud computing going to revolutionize corporate IT? “The ultimate goal of a professional CIO should be to render themselves obsolete” Nick Carr, author of “IT Doesn´t Mattter” and “The Big Switch” TELEFÓNICA I+D 19 © 2009 Telefónica Investigación y Desarrollo, S.A. Unipersonal
  • 20. Challenges / Risks: not ready for enterprises yet? TELEFÓNICA I+D 20 © 2009 Telefónica Investigación y Desarrollo, S.A. Unipersonal
  • 21. Cloud computing, enables new business models: Web access + dynamically scalable + cheap = “Free” services The Webmail windfall from “Free! Why $0.00 Is the Future of Business” Chris Anderson, Wired Magazine March 2008 TELEFÓNICA I+D 21 © 2009 Telefónica Investigación y Desarrollo, S.A. Unipersonal
  • 22. Cloud computing enables “CapEx- zero” startup costs and has allowed lots of Web 2.0 companies to flourish TELEFÓNICA I+D 22 © 2009 Telefónica Investigación y Desarrollo, S.A. Unipersonal
  • 23. What impact has cloud computing had into the Web/startup world? Lowers entry barriers !! Build a business with a lot less capital !! With less skills, deploy a complex, !! scalable applications Best ideas will prevail, execution is !! easier Value in solving problems or having !! domain knowledge Value is in the user experience of the !! service/application and not in the infrastructure to support it TELEFÓNICA I+D 23 © 2009 Telefónica Investigación y Desarrollo, S.A. Unipersonal
  • 24. And for consumers and professionals, it is a new way of working: Anywhere computing IT Centric Model Cloud Computing Device centric User centric Application centric Task driven PC and servers Infinite computing Isolated data Anywhere accessibility Collaboration with close Wide scale group peers collaborations TELEFÓNICA I+D 24 © 2009 Telefónica Investigación y Desarrollo, S.A. Unipersonal
  • 25. Cloud computing is a major driver of IT and communications convergence Telefónica aims to be the ITC operator on which you trust that allows cloud computing to be a reality TELEFÓNICA I+D © 2009 Telefónica Investigación y Desarrollo, S.A. Unipersonal
  • 26. With Telefónica R&D actively contributing to improve the state of the art in the area Key partner in most relevant EU FP7 !! projects related to Cloud Active collaboration with major !! scientific groups in Spain (of international relevance) Cloud chapter in Morfeo —! Avanza Nuba proposal —! TELEFÓNICA I+D 26 © 2009 Telefónica Investigación y Desarrollo, S.A. Unipersonal
  • 27. We believe that the cloud should be open Open standards are necessary to face !! current challenges and barriers to adoption Security —! Data and Application Interoperability —! Data and Application Portability —! Governance and Management —! Metering and Monitoring —! Goals of the Open Cloud !! Choice —! Flexibility —! Speed and Agility —! Skills —! TELEFÓNICA I+D 27 © 2009 Telefónica Investigación y Desarrollo, S.A. Unipersonal
  • 28. Future trends in cloud computing Costs are switching from server !! and storage costs to real estate, electricity, cooling and personnel!!! Lots of interesting new ideas are !! emerging around micro or nano datacenters, leverage the power of the edge (Microsoft, SUN, Telefonica R&D, Thompson, etc.) TELEFÓNICA I+D 28 © 2009 Telefónica Investigación y Desarrollo, S.A. Unipersonal
  • 29. We should listen to the visionaries…. “If computers of the kind I have advocated become the computers of the future, then computing may someday be organized as a public utility just as the telephone system is a public utility... The computer utility could become the basis of a new and important industry.” John McCarthy, MIT Centennial in 1961 TELEFÓNICA I+D © 2009 Telefónica Investigación y Desarrollo, S.A. Unipersonal
  • 30. Thanks !! TELEFÓNICA I+D 30 © 2009 Telefónica Investigación y Desarrollo, S.A. Unipersonal
  • 31. © 2008 Telefónica Investigación y Desarrollo, S.A. Unipersonal