10 Cloud Myths Debunked

Ten Myths of Cloud
Computing
Rex Wang
Vice President, Oracle
November 4, 2013
Cloud Expo Silicon Valley

1

Copyright © 2013, Oracle and/or its affiliates. All rights reserved.

The following is intended to outline our general product
direction. It is intended for information purposes only, and
may not be incorporated into any contract. It is not a
commitment to deliver any material, code, or functionality,
and should not be relied upon in making purchasing
decisions. The development, release, and timing of any
features or functionality described for Oracle’s products
remains at the sole discretion of Oracle.

2


Understanding Cloud
We’ve Come a Long Way…Or Maybe Not
In a recent survey of over 1,000 adult Americans:

• 51% believe stormy weather can interfere with cloud computing
• 54% think they hardly or never use the cloud, but…
95% use online shopping, banking, file sharing
• 22% admit that they’ve pretended to know what the cloud is
• 59% believe the “workplace of the future” will exist entirely in the cloud
Source: Wakefield Research

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Myth #1: Everything Will Go to the Public Cloud

4


Private and Public Cloud Adoption
40%

37%

Percent of Customers

35%

30%
25%

29%

26%

20%
15%

Private Cloud
Public Cloud

14%

10%
5%
0%

2010
Source: IOUG ResearchWire, Aug-Sept 2010 and Aug-Sept 2012

5


2012

Myth #2: You’re Either Cloud or You’re Not

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Cloud Is an Evolution

Traditional Silos

Consolidated

Private Cloud

Public Cloud

• Physical

• Virtual

• Self-service

• Specialized

• Dedicated

• Shared

• Auto-scaling

• Shared

• Heterogeneous

• Standardized

• Metering &
chargeback

• Standardized

Hybrid Cloud
• Federation across
public & private
• Interoperability
• Cloudbursting

Start with consolidation • Extend to private cloud • Use public cloud where appropriate

7


Myth #3: Clouds Are One Size Fits All

8


Service Types: IaaS, PaaS, SaaS
Business End User

Customizations

Customizations

Application

Application

Platform

SaaS Cloud

Service
Provider

PaaS Cloud
IaaS Cloud

Key
Driver
9

Consolidation

App Development

New Capability

Cost Savings

Focus

Speed


Service Provider

Developer

Customizations
Consumer

IT Professional

Consumer

Different Users

Deployment Models: Private, Public, Hybrid, Managed

Hybrid Cloud

Private Cloud

Public Cloud

Managed Cloud

10


Myth #4: Virtualization = Cloud

=
11


PaaS Outpacing IaaS
0%

10% 20% 30% 40% 50% 60%

Application Server as a Service
Private

Platform as a Service
(PaaS)

2010

Identity as a Service

Public
2010

Infrastructure as a Service
(IaaS)

Source: IOUG ResearchWire, Aug-Sept 2010 and Aug-Sept 2012

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Compute as a Service

2012

2012

Consolidation at PaaS and IaaS Layers
Consolidate onto standard, shared
and elastically scalable PaaS

App

App

App

App

App

PaaS

App

App

App

PREFERRED:
Reduced operational cost, complexity and
application development time

App

Unchanged operational cost and complexity

Consolidate onto shared IaaS
without standardization

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IaaS

Reduced cost of hardware, power, cooling

Oracle Database 12c
First Database Designed for Cloud

• Multiple Pluggable Databases in
shared Container Database
• Isolation and multitenancy

• More efficient resource utilization
• More efficient administration –
“manage many as one”

• Easy to provision, move, clone, upgrade
• No application changes
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Myth #5: Reducing Cost Is the Biggest Benefit
of Cloud

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Cloud Benefits

Cost Savings

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Elasticity

Insert Information Protection Policy Classification from Slide 12 of the corporate presentation template

Speed

Myth #6: Clouds Run on Commodity
Components

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From Best-of-Breed to Engineered Systems

Best-of-Breed
System Elements
Customer integrated

18


Optimized Solutions

Engineered Systems

Predictable, lower risk
guided deployments

Extreme performance,
efficiency

Myth #7: Cloud Will Lock You In

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Cloud Is About Choice, Value and Flexibility

- Mark Schissel, SVP and CIO
Herbalife

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Cloud and the Challenge of Lock-In
Does Your Cloud Stack Up?
• Built on industry standards
• Applications available across public and private clouds
and on-premises
• No application code changes when moving between
clouds
• Open, robust APIs for easy data access
Look for standards-based solutions, portability of apps, and data accessibility

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Myth #8: Cloud Is All Pay-Per-Use

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Cloud Pricing Varies Widely
Pay Per Use (Variable Cost)

Subscription (Fixed Cost)

Sample
Metric

•
•
•
•
•

Pros/Cons

More flexible, less predictable cost

More predictable costs, less flexible

Best For

• Temporary environments
• Apps with significant workload
fluctuations

• Long-lived applications
• Apps with steady-state workloads

Use Cases

Dev/Test environments, retail websites,
social apps

Core business apps (ERP, CRM, HCM, etc.)

Per compute hour
Per GB stored
Per API request
Per GB bandwidth
etc.

Per seat per month

Choose a pricing model that best fits your needs

23


Myth #9: Public Clouds Are Not Secure

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Organizations Can Often Improve Security With
Enterprise-Grade Public Clouds
Do It Yourself

Oracle Cloud

• Limited security resources &
expertise

• Dedicated team of cloud security
experts

• Challenges meeting regulatory
requirements

• Compliance with global regulatory &
industry standards

• Security audits & assessments not
performed regularly, if at all

• Regular third-party security audits &
assessments

• Outdated hardware/software

• Automatic hardware/software updates

Not all cloud security is equal • Understand your cloud provider’s security practices

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Myth #10: Choose Best of Breed Clouds for
Every Need
ERP

CRM

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Custom App

HCM

Integration with Multiple Specialized Clouds
Know the Potential Challenges
Survey of 1,355 business managers:
• 54% experienced staff downtime due to integration problems with their
cloud apps
• 52% missed business deadlines because of poor integration of cloud
apps from multiple vendors
• 75% had innovation initiatives stunted by integration problems with cloud
apps and related workflows
• 64% were unable to integrate their cloud apps with other enterprise apps
Consider the challenges of integrating multiple clouds
Source: Independent market research conducted by Dynamic Markets in May 2013; Cloud for Business Managers: the Good, the Bad and the Ugly.

27


Oracle Cloud: Complete Suite of Integrated Services
Application
Services

Global
Human
Resources

Social
Services

Platform
Services

Database

Infrastructure
Services

28

Talent
Management

Sales

Social
Marketing

Database
Backup

Object
Storage


Marketing

Social Engagement &
Monitoring

Java

Compute

Developer

Enterprise
Resource
Planning

Service

Social
Network

Mobile

Messaging

Social Data
& Insight

Documents

Cache

Enterprise
Performance
Management

Business
Intelligence

Identity

Cloud
Marketplace

Sync

10 Cloud Myths
1. Everything will go to the public cloud
2. You’re either cloud or you’re not
3. Clouds are one size fits all
4. Virtualization = Cloud
5. Reducing cost is the biggest benefit of cloud
6. Clouds run on commodity components
7. Cloud will lock you in
8. Cloud is all pay-per-use
9. Public clouds are not secure
10. Choose best of breed clouds for every need
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Summary
• Myths about cloud computing continue to abound –
don’t buy into them!
• Do your homework and understand your cloud options
and how each impacts your business
• By making the right choices, cloud computing can offer
your business choice, value and flexibility

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