1. WHITE PAPER
Cloud Computing
The Eight Fundamental Truths of
Enterprise Cloud Strategy
A pragmatic, business-focused overview of the cloud
EXECUTIVE SUMMARY
A fundamental truth is a Beginning in May 2011, I began writing a series of blogs featured in Data Center
Knowledge (DCK), a daily news and analysis website for the data center industry. In par-
principal rule (or series of allel, I blogged for the Server Room in Intel’s Open Port IT Community, introducing the
same topics to a different group of readers.
rules) that can serve as the
The purpose of these blogs was to provide a pragmatic business- and enterprise-archi-
foundation for the entire
tect-focused overview of the cloud without any of the associated hype. Toward this goal,
framework. Fundamental I identified a way for companies to build a workable corporate cloud strategy based on a
series of what I call “fundamental truths” of cloud computing. A fundamental truth is
truths are inviolable. what I consider to be a principal rule (or series of rules) that can serve as the foundation
for the entire framework. Fundamental truths are inviolable.
Here are the fundamental truths that, I believe, form the cornerstone of any cloud corpo-
rate strategy:
1. Large-scale, transformation to cloud computing, including your critical business sys-
tems, is a journey that will take you from eight to 10 years.
2. Cloud is a top-down architectural framework that binds strategy with solutions
development.
3. Your cloud ecosystem is only as robust and adaptable as the sum of its parts.
4. A services-oriented enterprise taxonomy is not optional.
5. Cloud is a verb, not a noun.
6. Technology-driven business practices often circumvent government regulations, but
legal/government policy standards will dictate cloud’s success.
7. Bandwidth and data transmission may not always be as inexpensive and unencum-
bered as they are today (geo-sensitive considerations).
8. Altruistic motives do not generally keep the lights on.
Bob Deutsche
Principal Enterprise Architect
Intel Corporation Over the course of about seven months, I expanded on these truths through my blogs.
robert.m.deutsche@intel.com This white paper is a collection of these blogs.
2. The Eight Fundamental Truths of Enterprise Cloud Strategy
LET’S GET REAL ABOUT THE CLOUD decentralization (in-house or out-
If your disposition is like mine, you’re trying sourced) of these resources to the busi-
to avoid stomach cramps as you read all the ness units.
latest articles, columns, and blogs extolling
A recent Forrester research paper for vendor
the virtues and inevitability of cloud comput-
strategy professionals by Frank E. Gillett
ing as the technology to save the human
(“Navigating the Shifts in Computing
species from self-inflicted destruction. After
Infrastructure Markets,” March 24, 2011) con-
more than 25 years of experience in the
cludes that end users (called informal buyers
netherworld between technology and busi-
by Gillett) are driving cloud infrastructure as a
ness, let’s say I’m more than a bit skeptical
service (IaaS) adoption. These informal buyers
about many of the claims people are making
are not IT operations staff and are seeking
about the cloud.
quicker and more flexible resources than their
While I‘d like to tell you my skepticism is enterprise IT organizations are able or willing
based on incredibly high intelligence, simply to provide. If it persists, this trend has obvious
put, the bulbs in my chandelier don’t burn implications on those centralized IT organiza-
quite that brightly. Instead, I tend to view tions being bypassed as well as the dynamics
things from a common sense perspective of selling IaaS services.
that evolved and was honed at a boot level RETAKING THE HIGH GROUND IN THE
(IT and business). Through my many profes- CLOUD DISCUSSION
sional lives, I’ve evolved into a principal It’s appropriate for IT and the data center to
enterprise architect (EA). If you’re not famil- find a way of establishing or reinforcing their
iar with this term, think of EAs as the folks value in this space without becoming an impedi-
who are paid—and supposedly have the ment, perceived or otherwise. Depending on
skills—to be able to string technology, busi- your relationship with your business partners
ness, data, and applications together (time for an honest assessment here, since this
between data centers and end users (people becomes a key consideration later on), estab-
and devices). If you consider the supporting lishing your value may not be easy. But you can
ecosystem (some of whom might take do it if you take the enterprise solution per-
offense to the word “supporting”) required spective that most IT shops enjoy.
to make this all work, maybe you’ll begin to
understand why I have some concerns Let’s explore this by looking at how cloud is
regarding the cloud. finding its way into a typical enterprise. Say
an informal buyer (Forrester’s definition)
Here are a couple of conclusions I’ve reached from your sales organization tells your CIO
about the cloud continuum: they just contracted to implement a new
cloud-based customer relationship manage-
1. By virtue of its reach and associated
ment (CRM) system that’s absolutely guaran-
complexity, a large percentage of the
teed to be up and running in 35 days. Since
cloud’s purported advantages are self-
this new application replaces a legacy sys-
defeating in a typical enterprise (when
tem, the vendor told your vice president of
viewed beyond a single business unit)
sales that cost savings are in the bag. You’ll
and will likely never be realized.
be able to consolidate your data center,
2. A centralized IT organization’s ability to which is now hosting the legacy application,
successfully influence the tactical direc- and keep headcount low. The vice president
tion of cloud enterprise efforts by busi- asks you to supply any links the contractor
ness users is significantly limited and needs to the legacy data to get the new
will likely hasten movement towards package to work. Life is good.
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3. The Eight Fundamental Truths of Enterprise Cloud Strategy
Trusted Partner or
Table 1. Foundations for a Cloud Solutions Framework
Expensive Necessity?
Could something like this really happen?
Hardware The physical aspects of the framework including servers, end-user
Only you can answer that question, since devices, network components such as internal and external routes, and
results may vary. Although the 35-day the Telco-sourced broadband capacity needed to make it all work.
promise might be a stretch, the example
Software Operating system plus applications and firmware. Considerations include
may be more real than any of us would care understanding of network traffic generated by the software, open or
to admit. It all comes back to your perceived proprietary sourced code, and data security plan.
value to the business. (I told you we were
Implementation The “How do I do this successfully?” component. Considerations include balanc-
going to bring this up again.) Are you per- ing capability against the goals and service level agreements (SLAs) of your
ceived as a trusted collaborator? Or are you extended ecosystem and time as a factor of expectations.
seen as an expensive necessity that’s slow
Management Quality assurance at the enterprise planning, organization, financial
and cumbersome and contributes nothing to leadership, and controlling levels.
reducing time to market? Again, be honest
when you think about this. Resourcing How does your baseline project management plan balance against the
internal skills required to complete this effort? What external resources
will you need? How will you manage them?
Over the course of multiple companies and
careers, I’ve held positions both outside and
inside IT and the data center. Having said
that information is deemed credible, that’s prise. So, beyond these basics, you need to
this, and with my business hat on, I often
about all that matters to the vice president figure out the best way to make your case in
find that IT and data center types have a
of sales—particularly if he’s not especially terms your business and, in our case, your vice
hard time understanding the perspective of
fond of the enterprise IT organization. The president of sales, can really understand.
their business collaborators—or, even more
key takeaway is that the vice president of
disconcertingly, seeing what’s most impor- Lessons Learned from Auto Racing
sales views a cloud solution very differently
tant to their companies. This point is crucial Consider a simple analogy. The historic and
than you do. Perspectives are driven by how
for you to understand just how different grueling 24-hour automobile race at Le Mans
people are rewarded and cloud solutions are
your view of a cloud solution is from your (24-Heures du Mans) runs every June in
fundamentally defined by perspectives.
business collaborator’s. France. It tests hardware reliability, driver
The IT and data center team is paid to be endurance, and team strategy. Arguably, one
Let’s take the perspective of the sales vice considers a win at Le Mans the career pinna-
concerned about the entire enterprise
president. At the end of the day (and admit- cle for both an auto manufacturer and a
rather than its individual elements. So, by
tedly, this is over-simplified), the perform- team of drivers. In the early 1960s, Ford
design, you view cloud solutions differently
ance and compensation of our hypothetical Motor Company decided to go racing with
than the vice president of sales.
vice president of sales is measured using the goal of winning at Le Mans, which meant
two basic criteria: CLOUD LESSONS AND LE MANS RACING displacing Ferrari, the powerhouse of that
To build a workable solution framework, era in GT racing.
1. How many widgets the company pushes you need to understand considerations
out the door per year (likely broken down that are larger than IT and the data cen- As you might expect given its resources,
into quarterly sales objectives and driven ter—in other words, considerations that go Ford assembled a formidable team (or, in
by the profitability objectives of your to the heart of your business (without any data center terms, a solutions framework
shareholders and enterprise) of the baggage that technology may intro- with legs and arms) composed of engineers,
duce into the discussion). constructors, management, and drivers, with
2. The cost of sales (very simply, how
the single objective of building a racing plat-
much the company spends to peddle Table 1 shows the components IT and the form that would win Le Mans in 1964. The
the widget, with lower costs equating data center should consider when develop- result was the legendary Ford GT40. Three
to higher profitability and happier ing a scalable cloud solutions framework. GT40s were entered in the 1964 Le Mans
shareholders) The key to introducing these concepts without race. Although they performed well for their
If a vendor’s cloud solution promises to being perceived as an impediment to progress
reduce the cost of sales, and if the source of comes down to your credibility in the enter-
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4. The Eight Fundamental Truths of Enterprise Cloud Strategy
first time in competition, none finished the In Henry Ford II’s case, it was simple. He still tions—and the way they vary by geography,
race. Ferrari’s cars finished in five of the top hadn’t won Le Mans, so obviously the reali- industry vertical, and the particulars of your
six places. Hmmm. If the solution framework ties of the broader framework impacted his organization—it’s not practical to try to
looked so good on paper, what happened? success in the 1964 race. He needed to find describe and address them all here.
people who understood these realities and
Given the embarrassing end to what (at were experts at linking core solutions into a Now we need to talk about corporate strate-
least according to the solution framework) viable delivery system. gy. Consider Ford’s campaign to win Le Mans.
should have been an easy victory for Ford, Although flawed, the strategy was simple:
the company took a slightly different For our sales vice president, the discussion match a powerful engine with a reliable drive
approach moving forward. This time, while might also be this easy—since he’s likely train mounted on a strong chassis and piloted
maintaining the fundamentals of the initial more plugged into the broader corporate by an accomplished driver. Ford’s linking of
framework it used to build the GT40s, Ford ecosystem than you are. This makes him engine to drive train to chassis to driver is an
reached out to a group of California hot-rod- more aware of the “oopsies” that could example of a fundamental truth about what
ders. These hot-rodders not only appreciat- impede the success of his new CRM system. it takes to win at Le Mans.
ed Ford’s original framework, but also under- Your role at this point is to simply remind
Boil It Down to the Core Truths
stood elements outside the corporate world him about these considerations and help
As you consider the basis for your workable
that Ford needed to align in order to win at work through the potential impacts on his
corporate cloud strategy, you must also con-
Le Mans. In 1966, Ford’s GT40s placed first, cloud-based customer relationship manage-
sider fundamental truths. In terms of the
second, and third—and then went on to ment system. By helping him, you’re actually
cloud, I consider a fundamental truth a princi-
dominate the race for the next four years. helping yourself—and the enterprise.
pal rule (or series of rules) that serve as the
Cloud Solutions and Ford’s Desire for a Win Table 2 is a list of what those considerations foundation for the entire framework.
You may be wondering how this relates to might include. Fundamental truths are inviolable.
a cloud solutions-based framework. It’s a
What are the Fundamental Truths of
fair question. Remember our hypothetical As was the case with Ford in 1964, nobody Corporate Cloud Strategy?
vice president of sales who had just con- on the initial team wanted to reach beyond We listed the eight fundamental truths that
tracted to implement a new cloud-based, their comfort zone to suggest that it would form the cornerstone of a cloud corporate
outsourced customer relationship man- take a slightly different perspective to win strategy in the executive overview (page 1).
agement (CRM) system. (Think of this per- Le Mans. I suspect the same might be true Now let’s discuss them one at a time.
son as Henry Ford II, CEO of Ford from of an IT or data center type who needs to
1960 to 1979.) become conversant in cloud framework con- Fundamental Truth No. 1: It’s a Journey
siderations that don’t necessarily relate Here’s our first fundamental truth of a corpo-
Our sales vice president has little concern directly to technology. In my opinion, right rate cloud strategy: large-scale transforma-
about a solutions framework. Instead, it’s all now, you simply have no choice. tion to cloud computing, including your criti-
about deadlines, budgets, resourcing, and cal business systems, is a journey that will
selling more widgets with less overhead THE EIGHT FUNDAMENTAL TRUTHS take you from eight to 10 years.
cost. Similarly, all Henry Ford II wanted out The eight cloud solution-based framework
of his GT40 program was a victory at Le (CSBF) considerations we identified in Table 1, Why does it take so long? Because, by its
Mans. Are you starting to see the parallels? when viewed from a pure IT/data center per- nature, cloud computing is disruptive. This
spective, might be outside your comfort zone. disruption impacts your business, the way
As Ford II found out in 1964, just pulling While it’s true that these considerations aren’t business units work with each other, your
together a team (solutions framework) with generally about technology, ignoring them as technology stacks (hardware and software),
the right skills and components doesn’t you implement any type of cloud architecture and, most importantly, your people and their
mean your plan is fool-proof. Factors outside (private, public, or hybrid) is not an option— skill sets.
the framework can still ruin your plans. So, if and doing so will result in failure. Given the
a core cloud solutions framework is more expansive nature of these CSBF considera-
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5. The Eight Fundamental Truths of Enterprise Cloud Strategy
For your cloud strategy to work at an enter-
Table 2. Cloud Solutions-Based Framework Considerations
prise (not just an IT/data center) level, you
must be able to understand and prioritize
Geopolitical Requirements Where is your data stored? How do you access it? This varies by indus-
try type, data type, and the legal requirements of your geography. your business’s capabilities and repurpose or
eliminate formally discrete and separate
Security/Privacy What are your company’s security policies, if any? What are your compa-
functions. This means your data center(s),
ny policies surrounding matters of privacy? Are they linked somehow to
security concerns? If so, how? networks (LAN, WAN, and wireless), applica-
tion portfolios, end-user devices, and related
Industry Direction Is your industry vertical trending toward shared data or islands of infor-
business processes must all be able to co-
mation? Is it well defined or undergoing significant changes that might
impact how information is used and shared? What are the time frames exist and work together in a way that they
projected for these changes? were never designed for (at least since the
days of big iron). Also, it’s very likely that the
Corporate Strategy Is direction from the top, or is the cloud initiative driven by one or more
components of your business (which seems to be more the rule than way you determine direction in this evolving
the exception)? environment will also change, which can essen-
tially shift your corporate power structure.
Organizational How well do your business units work together? Does the culture meas-
Cohesiveness ure and reward performance from a functional level at the expense of
the corporate level? What has been the history of success in cross-orga- To gain value from the cloud, you must
nizational business initiatives? (Cloud requires a level of integration not completely redefine your enterprise. This
seen since the days of the mainframe.) How does the corporation see
means:
the value of your internal IT organization? (More than likely, you will be
tasked to convince everybody to play in the same sandbox.)
• Taking an entirely new approach to
Enterprise Ecosystem Can your company discuss how its enterprise architecture binds busi- success metrics, including new defini-
Awareness and ness with technology? Is standardization sort of adhered to, at least in
tions and measurements. To do this,
Standardization spirit, or does your environment proudly support one of everything?
you’ll need to identify a baseline for com-
Implementing a cloud ecosystem, at any level, is disruptive. It forces parison to give the changes meaning.
Willingness to Embrace change down to the business and operational levels. How have these
Change types of actions been received historically in your enterprise? Is your • Radically changing your business
company risk-averse or risk-inclined?
ecosystems (skills, grade levels, respon-
Management Cloud is disruptive and requires your organization to consider: sibilities, and likely physical numbers) to
adapt to the new normal.
• Establishing a balanced approach to effective service-level agree-
ments (SLAs) based on business need as a factor of cost • Taking an evolutionary versus revo-
• Recognizing that in a highly virtualized and geographically diverse lutionary approach. Revolutions tend
operating model, application oversight becomes extremely difficult to be good for creating martyrs but
• Evaluating the skill sets required to manage this environment and not so good for individual survival in
being open to the suggestion that you may not have the talent the typical enterprise.
you need in your current organization
Simply stated, history shows that disruptive
• Predicting, proposing, and anticipating a management response
based on awareness of these challenges in your company’s history change of any type is adopted slowly. While
and culture. small and medium businesses may have an
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6. The Eight Fundamental Truths of Enterprise Cloud Strategy
advantage in their ability to adapt and cross three-quarters of a mile of open Why did General Robert E. Lee, commander
respond quickly to a cloud strategy, the wild ground in an area surrounded by elevated of the Army of Northern Virginia and General
card is an organization’s ability to respond to Union artillery (which is tactically not so Longstreet’s superior, order Pickett’s Charge?
change (with people as the biggest concern). good). It occurred on the third day of the The reasons remain a mystery and are
Battle of Gettysburg, a pivotal battle in the debated even today. While the overall objec-
Fundamental Truth No. 2: Top-Down
U.S. Civil War. tive of the charge was clear (removing the
Architectural Framework
Union forces from Cemetery Ridge), the
On July 3, 1863, at around 2:30 p.m., 13,000
Pickett’s divisions had the unenviable role of Union forces held all the advantages in the
Confederate troops—under the command of
being ordered to lead a direct frontal assault battle. Victory would clearly be difficult—if
General James Longstreet and led by division
on the Union positions. As was sadly pre- not impossible.
commanders J. Johnston Pettigrew and
dictable, Pickett lost about 3,000 men (more
George Pickett—began an infantry assault on
than half of his division, including all 15 regi- You may wonder what a battle fought in the
heavily-fortified Union positions on Cemetery
mental commanders) and failed to achieve American Civil War has to do with cloud com-
Ridge. The assault, known as Pickett’s
his objective. puting. That’s a valid point. The answer circles
Charge, required the Confederate troops to
back to the second of our eight fundamental
truths of corporate cloud strategy: cloud is a
Table 3. Intel’s Architecture Types top-down architectural framework that binds
strategy with solutions development.
Strategic The longer-term (usually 18 months to five years) articulation of the
context, priorities, and plans that set the boundary conditions and road At a macro level, Intel IT views architecture
map for developing a tactical architecture over a prescribed time period. at three levels, with each succeeding level
Conceptual in nature, it comprehends the high-level roles, capabilities,
defining and validating the actions of its suc-
and processes to achieve the end state. It is the most abstract of the
architectural types, with a goal of establishing strategic direction. cessor (Table 3).
Reference Provides a template solution for an architecture specific to a particular In a perfect world, where strategy is always
domain. Its aim is to stress commonalty in areas such as vocabulary,
defined by a smooth flow of business planning
boundaries, and guidelines to promote:
• Integration backed by infallible leadership, the model
• Standardization should work well. Unfortunately, as Pickett dis-
• Reuse covered, this isn’t always the case. Arguably,
the decision to engage in a frontal assault on
Reference architecture is characterized by a medium level of abstraction,
with the goal of identifying and standardizing solutions. Its artifacts form a the Union fortifications on Cemetery Ridge
starting point for solution architecture development. These may range from offered a direct solution to a problem.
architectural patterns, mechanisms, and frameworks to complete systems
with known characteristics. They may be applicable for a broad class of sys-
Whether General Lee tactically considered the
tems spanning domains or have a narrower focus.
assault as part of something more strategic is
Solution/Service Describes the scope and design of a change in business functionality. a point argued by military historians.
These are normally used to constrain and guide program/project design
Unfortunately, and as shown by the cata-
and implementation. The solution or service architecture is not con-
strained to changes only; in some cases, it can identify a gap and devel- strophic outcome, the loss of troops was so
op a solution to improve the efficiency of existing/ongoing business great in this one battle that the Confederacy
functionality.
not only lost the Gettysburg campaign, but it
A solution architecture must align with the strategic architecture and never recovered. Does this outcome validate
should reuse or align to the reference architecture as much as possible. our conclusion that if one element of an
enterprise strategy changes, it automatically
Service architecture is an architectural strategy that aims to isolate and
separate the consumption of business functionality from the provision- impacts the others? It’s your call.
ing of a function through commonly-defined service contracts.
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7. The Eight Fundamental Truths of Enterprise Cloud Strategy
The Forrester white paper we mentioned Although there are variations used to The Innovation Value Institute’s (IVI) IT-Capability
earlier concludes that end users (called infor- describe the components of EA, I prefer to Maturity Framework for Enterprise Architecture
mal buyers) drive cloud IaaS adoption. These use those included in a framework known as Management suggests that to build an effective
informal buyers are focused on solution-level The Open Group Architecture Framework EA, you must be able to measure the maturity of
strategy. Enterprise strategy isn’t their con- (TOGAF), which includes four related but dis- people, planning, and practices. Maturity is meas-
cern. It’s like what happened during Pickett’s tinct architectural components. Table 4 ured against things like framework, process,
Charge. A data center/IT organization’s abili- shows how we describe them at Intel. value, governance, planning, organizational struc-
ty to navigate the difficult open ground ture, skill sets, and communications.
between a business-unit-based cloud solu- The robustness of an EA framework—by
default, any activity such as cloud that requires Success Depends on EA Maturity
tion and a more strategic perspective comes
use of these architectural components—is So, in terms of expectations for cloud execution in
down to factors of leadership, relationships
determined by an organization’s ability to use it. your organization (and with the caution that I con-
with business groups, and, to a degree, sim-
The robustness of your EA is generally meas- sider mission-critical applications when I say this),
ple luck.
ured as a factor of maturity. In mature organi- your success, and likely your return on invest-
Fundamental Truth No. 3: zations (defined on a 0 to 5 scale), the EA ment (ROI), are very much linked to the maturity
The Cloud Ecosystem framework is a key component of success that of your EA. If you’re a somewhat immature organ-
I recently participated in a meeting of Intel’s links the value of the IT organization to the ization, your cloud framework will likely reflect
Enterprise Board of Advisors (EBOA) Data objectives of the enterprise. In practice, though, elements of this immaturity.
Center Working Group. During the call, one of your EA maturity can (like the attractiveness of Fundamental Truth No. 4: Services-
the members—from a very large, multi-national your own reflection in the mirror) be hard to Oriented Enterprise Taxonomy
company headquartered in Europe—mentioned measure objectively. Besides my family (and, of course, Intel), I
that in their experience, cloud is more a change
have three passions. One is high-perform-
in process than a change in technology.
ance aircraft (current generation to early
That made me think of our third fundamental
truth of cloud computing strategy (and the
one we’re discussing today): your cloud Table 4. TOGAF Architecture Types
ecosystem is only as robust and adaptable
as the sum of its parts. Business The business architecture serves as the interface between the needs of
the enterprise as reflected in its work and the IT solutions that facili-
tate that business. The business processes serve as the foundation for
If a stranger asked you to describe your busi-
a number of important architectural decisions in the balance of the
ness from end to end in 30 seconds, what enterprise architectural domains.
would you say? You might describe it in
Data The data architecture is intended to promote information sharing and
terms of its enterprise architecture (EA),
reuse in support of business processes across the enterprise. This is
which can be a good way to understand your done via standard description and discovery of common data and the
company as a series of connected parts. promotion of uniform data management practices.
Application Specifies the key elements of information systems used in executing its
According to Wikipedia, EA is “a rigorous
business processes. These elements include the services taxonomy and its
description of the structure of an enter- components. They represent the organization’s application portfolio and
prise, which comprises enterprise compo- identify the business systems that enable and support the execution of
Intel’s business processes (outlined in the business architecture). The appli-
nents, the externally visible properties of
cation architecture provides a cross-reference of capability or service.
these components, and the relationships
between them. This description is compre- Technical Describes current and future technology infrastructure and specific
hardware and software technologies that support your corporate infor-
hensive, including enterprise goals, busi-
mation systems. It provides guidance and standards for implementing
ness processes, roles, organizational struc- technologies that are proven to work well with existing and planned
tures, and organizational behaviors.” technologies.
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8. The Eight Fundamental Truths of Enterprise Cloud Strategy
1930s); the second is just about anything ly the same as its successor and predecessor the cloud promise includes a commitment to
powered by an internal combustion engine. and fit with all the others into sub-assem- cutting both costs and the time it takes to
My third passion is an insatiable desire to blies (i.e., building blocks). In a sense, the respond to business change.
understand the history of both. For those manufacturing methods Ford used for the
who know me personally, this revelation is Model T were the great-grandfathers of a If you compare the overall promises of the
not much of a surprise. Once again, I will concept that we refer to as a services-based cloud to the architectural goals of a services-
attempt to make a point about the cloud architecture framework. based taxonomy, you might see some similar-
using historical analogies from the automo- ities. This is where the discussion becomes
tive vertical. At a strategic level, a service-based architec- harder. If you look at the success and history
ture framework has four layers: of various service-oriented infrastructure
Henry Ford and Service-Oriented and architecture (i.e., service-oriented infra-
Taxonomies? 1.) Defining and coordinating business structure [SOI] and service-oriented architec-
So, what exactly does Henry Ford’s Model T processes and workflows ture [SOA] efforts), you’ll likely find a recur-
have in common with my fourth truth of cor-
2.) Replacing functional silos with networks ring theme I refer to as the “field of dreams.”
porate cloud strategy: services-oriented tax-
of services If you remember the excellent movie of the
onomy is not optional?
same name (it helps if you’re a baseball fan
3.) Policy-based, distributed, and automated whose roots are in Chicago), it’s about an
Ford’s Model T became available in 1908. Due to
management Iowa corn farmer who hears voices that tell
its low initial price (USD 950), demand was brisk.
him to build a baseball diamond in his fields.
When Ford’s auto first went into the market- 4.) Building blocks (grouped into service
He is spurred on by this message: “If you
place, it was assembled by a team of two or catalogs) that provide a cost-effective,
build it, they will come.”
three workers who would collect the parts they standardized set of capabilities for busi-
needed and start the assembly process. If a part ness process execution, user experi- Unlike the movie, where “they” (the old-time
didn’t fit, they used hammers, crowbars, files, ence, governance, security, manage- players of the farmer’s dreams) did come
and plain old brute strength to coerce it into ment, communication, and virtualization after the ball field was built, many enterpris-
place until they had formed the end product.
Cloud Expectations: Cut Costs and es began the SOI/SOA journey only to find
(Think of it as a service.) Time to Deliver out that it was significantly harder than they
With that foundation, let’s briefly revisit expected. As the Figure 1 shows, there’s a
There were two fundamental problems with
some of the promises of the cloud. Although lifecycle you can associate with migrating to
this approach. First, the time and labor it
definitions vary greatly, cloud computing is a services-based framework. In my experi-
took to complete each Model T varied. The
generally considered to be the delivery of ence, not many organizations actually
second issue involved service life cycle con-
information capabilities (i.e., technical infra- reached the service catalog stage. Those
siderations. If something breaks, and if every
structure, applications, or services) over the that did, in general, had a hard time sustain-
part is unique, how do I fix it? And what will
Internet by third-party-managed data cen- ing the effort.
it cost to repair?
ters. Today, cloud business models include
Henry Ford’s response to these problems software-as-a-service (SaaS), platform-as-a-
boiled down to standardization and inter- service (PaaS), and IaaS—all delivered via pri-
changeable parts. Every piece became exact- vate, hybrid, or public frameworks. Part of
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9. The Eight Fundamental Truths of Enterprise Cloud Strategy
Figure 1. The Evolving Cloud Framework
I don’t envision the evolving cloud frame- the general mechanics of the English written (noun) than it really is. (Maybe I should make
work as absolute in a typical enterprise. word. In fact, my constant companion is the that “cloud,” since a recent Wall Street
More likely, and driven by data security con- 1971 edition of Practical English Handbook. Journal article concludes that branding gurus,
siderations, it will evolve as a blend of busi- particularly in Silicon Valley, tend to favor
ness applications delivered: So, having admitted one of my darkest
dropping articles such as “the,” “an,” or “a”
secrets, it’s with some irony that I discuss my
before a noun because they believe that
• From both the public and private cloud fifth truth of corporate cloud strategy: cloud
without it, the word assumes an almost an
is a verb, not a noun.
• Through traditional infrastructure icon-like aura. )
Deeper Meanings to Our Terminology What CIOs Are Saying
Given this scenario, integrating services (e.g., First, let’s look at the meanings of “noun”
To see my point, look at Figure 2. Intel often
business process execution, user experience, and “verb.” According to Webster’s New
sends me to events where a broad range of
governance, security, management, and com- World Dictionary of the American Language,
industry CIOs discuss their perspectives on, and
munication) will be a necessity. While it may a noun is any of a class of words naming or
strategies for, the cloud. From these discus-
be possible to handle this integration on a denoting a person, place, thing, event, sub-
sions, I’ve constructed a graphic that identifies
case-by-case basis, I’m quickly brought back stance, quality, quantity, or idea (e.g., boy,
recurring themes and shows some of the pro-
to Henry Ford’s Model T and the disadvan- water, truth). Conversely, a verb is any of a
found differences in how the industry views
tages of custom-fitting each component of class of words expressing action, existence,
the cloud as a noun versus a verb.
the architecture to the next. I simply don’t or occurrence (e.g., bring, read, walk, run,
see a clear path for cloud to fully deliver on learn), or a state of being (e.g., be, exist, Cloud Necessitates That You Think Big
its promise without some kind of services- stand). While you may find these definitions What should capture your immediate attention
based architecture running on the back end mildly informative, why should you care? in the figure is the imbalance in the column
of the enterprise. where cloud is viewed as a noun. Obviously,
I tend to believe in common sense over spec- the cloud encompasses much more than the
Fundamental Truth No. 5: Cloud is a
tacle—and to assert that moving to the cloud data center and a thin client. If what I’m seeing
Verb, Not a Noun
is a complex process that takes the align- is accurate, it’s not clear why this is happening.
Let me begin with an admission. Ever since
ment of many moving parts. In other words, Perhaps it indicates factors the CIO can control.
Miss Jacobson’s seventh-grade English class
the cloud is more of a verb than a noun. Perhaps it’s a response to the way the cloud
at Lincoln Junior High School, I’ve recognized
myself as somewhat challenged in the prop- seems to be finding its way into the enterprise.
Unfortunately, the industry seems intent on Regardless, I seem to spend a significant
er use of commas, adjectives, pronouns, and
marketing “the cloud” as more of an object amount of time promoting these two ideas:
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10. The Eight Fundamental Truths of Enterprise Cloud Strategy
1.) The cloud is much bigger than the data center.
2.) You must develop an end-to-end strate-
gy if you hope to be successful.
Regarding the belief that the cloud somehow
always leads to a thin client, it’s always
interesting when I ask an enterprise how
they used considerations like application
architecture (driven by usage models), data
architecture (network packet sizing), and
associated bandwidth considerations (wired
and wireless) in reaching that conclusion.
More often than not, I either get no answer
to my questions or the subject is changed.
Figure 2. Cloud as a Noun To sum up, it’s entirely possible that my views on
verus a Verb whether the cloud is more often thought of as a
noun than a verb are wrong. As I’ve said, I based
them on discussions with Intel customers and
other CIOs at industry events.
Fundamental Truth No. 6: Government
Regulations
I recently finished the third book of Edmund
Morris’ trilogy on Teddy Roosevelt, Colonel
Roosevelt. In the book, a reporter for the New
York Times says the muted reaction to many
of Roosevelt’s speeches denoted not so much
apathy as “a quiet, steady, intent earnestness
that does not often characterize a crowd....”
Hey, that’s good enough for me.
With this thought in mind, let’s consider the
sixth fundamental truth of corporate cloud
Figure 3. Intel’s Cloud strategy: technology-driven business prac-
2015 Vision tices often circumvent government regula-
tions, but legal and government policy stan-
dards will dictate the cloud’s success.
Based on everything I see and hear about
worldwide cloud implementation, this topic is
the most important of our eight truths. To
begin the discussion, look at Figure 3.
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11. The Eight Fundamental Truths of Enterprise Cloud Strategy
While Intel’s 2015 cloud vision is an interest- In my opinion, some of the most open think- “One of the things often lost in the
ing discussion on its own, the implications ing about the global implications of policy industry’s discussion about the cloud is
and limitations of the broader cloud vision, as and standards on the cloud is coming out of that there is a physicality underlying the
related to policy, become apparent if you academia. Maybe this is because the academ- capability.” Privacy, like all cloud policy
consider the world map I’ve included in the ic community, by its nature, is a group of considerations, is under the jurisdiction
background. experts aligned along areas of interest ver- of the originating geography. Given that
sus geography. the cloud is a community-based ecosys-
Let me explain. A robust cloud framework tem, how can you protect data privacy
(private or public) is community-oriented by Cloud Computing in Asia
(whose definition varies from communi-
its nature. This includes not just select parts In November 2010, Keio University, Japan’s
ty-to-community) in a cross-jurisdictional
of the community, but the entire ecosys- first private institution of higher learning,
environment?
tem—hardware, data, process, communica- published the Asia Cloud Manifesto. The doc-
tions, and skills. By considering that the cloud ument explores the implications of cloud • Competition and standards. While
community, at least from a technology per- computing across Asia and begins to address international bodies (e.g., IEEE) pursue
spective, has the potential to include every potential impediments to the regional coop- global standards, there are many more
country on the planet, you begin to get a eration it will take to establish a robust cloud that shape standards along geography-
sense of why I consider the discussion of ecosystem. A key element of the discussion based interests. Based on conclusions in
cloud policy so important. is identifying policy- and standards-related the Asia Cloud Manifesto, rapid stan-
issues that apply to the cloud in Asia. For me, dardization in one ecosystem has the
Governments Impacting Cloud the most compelling aspect of the Manifesto potential to lock out new standards and
From this point on, we must consider how is that these issues are universal. limit the actions of players outside the
cloud technology—and, by default, any of our ecosystem. In short, the likelihood of
business systems and related data hosted in Based partially on the Manifesto, and in no
conflicting national standards increases
the cloud—must contend with policies and particular order, here are what I consider the
as these geo-based consortia propagate.
standards that are framed by location and top-tier policy and standards considerations
related geopolitical considerations. for the cloud: • Bandwidth management (wired and
wireless). This topic is so significant
In an October 1, 2011, Washington Post col- • Privacy that we will discuss it separately in a
umn by Lillian Cunningham, Google’s Eric later section.
• Competition and standards
Schmidt recalls a dinner in 1995 with Intel’s
co-founder Andy Grove. When asked about • Sovereignty. When asked about a reci-
• Bandwidth management (wired and
governments’ ability to react to technological procity agreement with Canada on July
wireless)
change, Andy said that “…high tech runs 21, 1911, Teddy Roosevelt said,
three times faster than normal businesses. • Sovereignty “Economic considerations mattered less in
And government runs three times slower foreign negotiations than those of
• Copyright
than normal businesses. So, we have a nine- national pride.” What was true then still
times gap.” Although the comment was pri- • Security (logical and physical) holds today. No universal rules or legisla-
marily about government in the U.S., govern- tive framework take precedence where
Policy and Standard Considerations
ments worldwide have a similar cadence. multiple jurisdictions have an interest in a
• Privacy. Let’s start this discussion with
Given government’s role in establishing and single matter. For a cloud ecosystem,
an idea sparked by a comment I received
implementing cloud policy and standards, this jurisdiction over data is potentially
from Brad Ellison (a senior data center
is an interesting conclusion. asserted based on location of the service
engineer for Intel IT). Brad believes,
provider, user, and server.
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12. The Eight Fundamental Truths of Enterprise Cloud Strategy
How this consideration ultimately throughout the European Union. I’ve listed lanes), you’ll likely go at a pace that is…well,
impacts marketplace access via a cloud- some of them below. I don’t intend this to let’s just call it “leisurely.”
based community is (at least in my hum- be an exhaustive summary of all existing
ble opinion) the key element for the or draft legislation for all geographies. This may not be a perfect analogy, but navigat-
entire business model. Instead, I hope it demonstrates the poten- ing through LA on The 405 seems an apt way
tial challenges imposed on a robust cloud to start discussing our seventh fundamental
• Copyright. How is this consideration ecosystem by non-aligned, geographically- truth of cloud computing: bandwidth and data
applied uniformly, worldwide? How do based policy initiatives. transmission may not always be as inexpen-
you protect your company’s patents or sive and unencumbered as they are today.
an individual’s intellectual property (IP)? • European Union
How do intermediaries deploy filtering As we discussed in the previous section,
features that comply with the appropri- • Electronic Commerce Directive bandwidth management is one of six govern-
ate jurisdiction’s rule of law (see the ment-regulated policy and standards consid-
• Data Protection Directive
sovereignty discussion above)? What erations that you (and your cloud provider)
happens if there’s copyright infringe- • United States must understand as you continue your jour-
ment? Who bears financial liability—the ney to the cloud. Since every government
• Cloud Computing Act of 2011 (draft)
service provider, service broker, or the has its own approach, the best advice I can
country where the IP violation occurred? • Digital Millennium Copyright Act offer is to balance your goals against your
government’s related policies. One size defi-
• Security (logical and physical). There’s • Communications Decency Act nitely does not fit all.
an obvious link between security and
• U.S. Patriot Act Broadband Spectrum Considerations
privacy, which is perhaps best described
by a comment made by Ed Goldman, To begin, it’s key to recognize that the broad-
• FCC Ruling on Net Neutrality
Intel IT CTO and general manager for IT band spectrum is a shared resource.
strategy, architecture, and innovation. In • Sarbanes-Oxley
As a consumer, I expect that everyone in my
a discussion we had on cloud security, • Japan/Some Parts of Asia household, on any number of devices, can
Ed stated that “Privacy advocates desire
simultaneously download a live video stream
that less data be retained about individ- • APEC Data Privacy Pathfinder Project
of our favorite movies or TV series, have
uals (no matter if they want the person- Fundamental Truth No. 7: Bandwidth instant audio and video chats, and keep track
alization capacity which requires lots of and Data Transmission of our stock portfolios—all while playing video
data about them) and security advo- Like so many people around the world, you games. I also expect latency of less than 100
cates want us to keep more (to investi- may have visited Los Angeles at some milliseconds and costs that I consider “fair,”
gate and resolve). As we ensure better point—if only for the weather. Whether your with anything more being an example of the
security, it comes at the cost of privacy. visit was for business or pleasure, you likely provider getting rich at my expense.
Conversely, enabling more privacy con- drove on what we Californians call The 405
trols comes at the expense of our ability (also known as the San Diego Freeway). As a business, I understand cloud computing
to identify security risks and customer Separating greater Los Angeles from beach requires data center broadband connectivity
demands.” There are many geography- communities like Malibu, Santa Monica, and to any number and/or type of devices,
based security standards that compound Redondo Beach, The 405 is among the top including those that can only receive data
this challenge, none of which apply end- five most congested freeways in the U.S. (zero/thin client). Further, these ecosystems
to-end. With its last upgrade completed in 1969, The must provide service and reliability that
Government Policy Initiatives Sampler 405 just wasn’t designed to accommodate meets the specific needs of my business. For
There are cloud initiatives and strategies today’s traffic flow. While you can make for- example, healthcare and command and con-
developed in the United Kingdom, Germany, ward progress (assuming no accidents or trol systems demand reliability and low
Finland, France, Japan, and Taiwan and obstacles are blocking any of the 12 traffic latency. Considering my quality of service
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13. The Eight Fundamental Truths of Enterprise Cloud Strategy
tion portfolio and ending with the selection of
intelligent end user devices—to at least have a
tacit understanding of how these topics may or
may not impact your costs and success.
Fundamental Truth No. 8: Altruistic
Models Don’t Keep the Lights On
The goal of every publicly traded company is
to deliver value to its shareholders. From a
simple financial perspective, and with the
Figure 4. Mobile Traffic
exception of non-profits, this value is meas-
(2008 – 2016) ured in terms of profitability and customer and
employee satisfaction. Of the three, profitabili-
ty seems to make shareholders the happiest.
and reliability needs, I expect to pay accord- geoning amount of data transmitted over the It’s generally a company’s line of business
ingly but need the provider to disclose mean- networks (both wired and wireless). (LOB) groups, where the products or services
ingful data such as service terms, pricing are developed, that generate these profits.
(perhaps based on volume rather than time), There is some evidence that these changes
packet loss, delay, service availability rate, are already happening, at least in the U.S. In Profitability
and SLA-based response time (latency). May 2011, one of the large U.S. carriers began It’s this last point I was thinking about when I
imposing monthly data limits for its fixed set out the eighth and final fundamental truth
Evolving Revenue Models broadband subscribers. With U.S. consumers of corporate cloud strategy: altruistic motives
With all of this in mind, it’s likely the revenue seeing broadband as described above, the do not generally keep the lights on.
models for broadband services (which vary move was highly unpopular. Again, it’s perhaps
greatly from geography to geography) will soon safe to conclude that tiered pricing packages Let’s face it. If you’re reading this white paper,
change. At a Telco 2.0 conference earlier this of some sort—based on how much data is con- chances are good that if I asked somebody in
year, I saw the chart shown in Figure 4. sumed or how fast the data is delivered, or a your LOB area about your business knowledge,
possible hybrid of both—will evolve over the they would either laugh or ignore me. If this
Figure 4 suggests that by 2016, there will be
next few years. Can I state this with absolute weren’t true, why, after 30-plus years of
around 15 times more mobile traffic than essentially the same dialogue, do we still have
assurance? No. But then again, if there is a
there is today, primarily driven by video (this
chance of it happening, how do I mitigate the to argue whether IT has any business value?
is the traffic on the access side). More recent
risk to my company—particularly if I’m justify-
video traffic projections suggest this number I’d also bet that if I asked the same people
ing the cloud based on ROI?
may be conservative. what you or your group contribute to the prof-
Another topic of some importance in the U.S. itability of the company, most would say they
Historically, switched voice has been the cash see lots of money going into IT but nothing
(primarily because, as I understand, it has no
cow for telecommunication companies. But as much of value coming out. Right or wrong, you
jurisdiction over wireless providers) involves
the image suggests, the projected growth in all face the attitude of the fictitious sales we
net neutrality. Net neutrality is fundamental-
this traffic is flat. The company presenting discussed earlier.
ly about data capping. With an admission that
the slide stressed that today’s broadband
this discussion is best left to attorneys, it’s
fees are assessed based on time instead of Again, you bring to the party a perspective
still safe to conclude that you and your cloud
network volume used. that your LOB person doesn’t have. And you
service provider need to at least be aware of
can use this skill, as the world struggles
Huge Amounts of Data Are Flowing what’s happening under this umbrella.
Over Networks through the area of the cloud hype cycle that
As the conference attendees discussed this To me, it seems prudent to anchor any Gartner calls the “Trough of Disillusionment,”
slide, an implied consensus emerged: this expansion of business activity in your cloud— to lead your company through the chaos of
model will likely change because of the bur- beginning in your data center and extending broad adoption (assuming your voice is heard).
to how you design your cloud-based applica-
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14. The Eight Fundamental Truths of Enterprise Cloud Strategy
Common Sense New Order you’re on the offense, what are you doing
You may have led or participated in a large To begin this part of the discussion, review today, within your larger organization, to
hardware migration project or a major appli- Figure 5. remove the emotion from these types of dis-
cation development effort. Was the experi- cussions and to force an unbiased financial
ence akin to herding cats, with each product First, using the profitability goals of each focus on the realities of your environment? It’s
and/or vendor representing a cat that component of a typical end-to-end public also critical to recognize that in some cases,
absolutely had to move in the same direction cloud ecosystem as a baseline, take an archi- outsourced and cloud-hosted applications will
for the effort to succeed? How did you man- tect’s perspective of the process. Once you save your company money and boost profit.
age the herd through the hardware or sys- do this, you begin to appreciate the chal- How will you discuss these instances?
tem’s lifecycle? Were you, like me, always lenges ahead—and the unique perspective
impressed with how quickly these cats, when you bring to the solution. Next, recognize that every CSP is different
something started going south, always knew and that they, like every other component of
Next, confront the conflicting profitability the cloud ecosystem, are not altruistic. To
it was another cat’s problem?
expectations within your own enterprise. As stay in business, they must be profitable in
Grudgingly, though, we all know the reason we noted in our discussion of the mythical the long term. While it’s not your job to
for the drill. Each cat is responsible for its sales VP, his or her first concern is profitability. understand the details of how they make
own interest’s profit. Time spent chasing From their perspective, reducing your foot- money, it is your job to understand how their
and fixing problems impacts their ability to print—based on the promises made by the pursuit of profit will potentially impact the
reach that goal. Unfortunately, as the ulti- cloud service provider (CSP)—is a way to boost services provided to your company. Although
mate stakeholder in this relationship, we profit without losing anything. Sometimes this this isn’t an exhaustive list, we can infer
were the ones held accountable to fix the is true, but other times it’s not. some indicators by looking at how they
problem. This experience is the source of Playing Offense or Defense ensure delivery of services:
that unique perspective I mentioned earlier At this moment, you have a choice. Do you
and which will be of significant value in the • What are the procedures for monitoring/report-
take an offensive or defensive strategy to
evolving cloud ecosystem. ing SLAs, maintaining global government policy
confront your contribution to profitability? If
compliance, and securing data?
Figure 5. Ecosystem Drill-Down: Public Cloud
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15. The Eight Fundamental Truths of Enterprise Cloud Strategy
• Do they have an audit process? If so, er fall a bit short if you consider topics like series into a single and easily accessible
what standard is it based on? intelligent edge, radio access, and broad- source. I hope with this white paper we’ve
band access networks. Right now, though, fulfilled these requests.
• What is their level of assumed indemnity
it’s hard to predict how this business
(first and/or second)? To continue the discussion, contact me
model will play out other than to recognize
• Do they support an open architecture that changes are imminent. The best through Data Center Knowledge or the
if that is important to your corporate advice I can offer is to ensure someone in Server Room in Intel’s Open Port Community
strategy? your organization is assigned to monitor or send email to robert.m.deutsche@intel.com.
activity in your geography. Find the solution that’s right for your
Finally, how do the Telcos end up playing in
CONCLUSIONS organization. Contact your Intel represen-
this space? This varies from country to
The response to my eight fundamental truths
tative, visit Intel’s Business Success Stories
country, and we are beginning to see a for IT Managers (www.intel.com/itcases-
trend where they are assuming the dual of enterprise cloud strategy has been gratify-
tudies), or explore the Intel.com IT Center
role of data center and network cloud ing and so have the resulting discussions. As (www.intel.com/itcenter).
service provider. If this trend continues, part of these discussions, I’ve had a number
the evaluation criteria we mentioned earli- of requests to consolidate the entire blog
About the Author
Bob Deutsche joined Intel in 2004 and has more than 25 years of business and IT experience in positions that ranged
from data center operations to software development to CIO. You can read his regular columns at Data Center
Knowledge and in the Server Room in Intel’s Open Port Community.
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