cloud computing: implications for the industrialization of it · orchestration parts production...
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Cloud Computing: Implications for the Industrialization of IT
Jonathan Murray @Adamalthus
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Agenda• Introductions • Cloud computing and the industrialization of IT • Implications for developing economies • Policy priorities for developing economies • What comes next
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Key Takeaways1. Cloud Computing = IT + Ford + Taylor + Lean
Production for the digital era. 2. Enables encapsulation, re-composition and global
distribution, of economically valuable services 3. Will both challenge and enable developing
economies 4. The second wave of cloud is already emerging with
profound implications
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Why Industrialized IT Is Needed• Firm and sector level productivity has greatly
improved as a result of investments in IT, but… – Growth in IT investment has lead to an
exponential growth in IT system complexity – Increasing complexity reduces the efficiency of
physical IT and human capital – Explosion in business demands on IT function – IT function productivity has not improved in
decades
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Defining Cloud ComputingCloud computing delivers elastic computing resources - data storage, computation and networking - to users at the time, to the location and in the quantity they wish to consume, with costs based only on the resources used.
• Highly scalable, deeply automated, massively efficient production management capabilities for IT service delivery
• Enabled by ‘loosely coupled’ computing service architecture, separation of responsibilities and management processes
• Born out of the economic needs of early large scale online web service providers: Microsoft, Google, Amazon, Yahoo etc.
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*http://www.adamalthus.com/blog/2013/03/01/a-short-guide-for-the-perplexed/
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Cloud Computing is Not• The Internet • The web • Just Storage • Amazon Web Services
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Cloud Computing* = Industrial IT Production
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*http://www.adamalthus.com/blog/2013/03/01/a-short-guide-for-the-perplexed/
Software as a Service A Delivery Model
Platform as a Service A Development Model
Infrastructure as a Service
An Operating Model
Public
Hybrid
PrivateAutom
ation
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Benefits of Industrialized IT• Highly efficient utilization of physical IT and human
capital • Accelerated Time-to-Value • From discreet to continuous production processes • Decomposition of IT/Service value chains • Abstraction and encapsulation of services • High velocity, low cost experimentation • Rapid innovation and efficiency improvement cycles
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Acme Corporation
The Composable Enterprise*
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*http://www.adamalthus.com/blog/2013/04/04/the-composable-enterprise/
Software As A Service
Platform As A Service
Infrastructure as a Service
Business Function
Business Function
Business Function
Business Function
Business Function
API API API APIAPI
Orchestration
Parts
Production
Process A Process B Process C
APIUser Interface API UI
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Business B
Capabilities
API API API
Business C
Capabilities
API API API
Business A
Capabilities
API API APINew Business A
Capabilities
API API API
Enabling A Platform Economy
New Business B
Capabilities
API API API
http://www.adamalthus.com/blog/2015/01/08/the-metaform-the-platform-of-everything/
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Implications for Developing Economies
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Developing Economy Opportunities• Maximize return on limited IT capital investments • Maximize value of limited technical skills/resources • Access to global markets for inputs and outputs • Participation in global value chains • Investment shift from low value infrastructure to high
value services • Improve productivity of industrial base • Expands market opportunities and lowers barriers to
entry for local IT supplier ecosystem
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Importance of ‘Data Gravity’*• New cloud services are ‘gravitationally’ attracted to
large economically important datasets • Economics and speed of wide-area network data
transfer still limiting factor for cloud services • Early services and policy interventions that incubate
large in-country dataset ‘attractors’ are critical
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http://blog.mccrory.me/2010/12/07/data-gravity-in-the-clouds/
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Openly Available Production Tooling
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Old Challenges Overcome• Means of production now openly available • Source skills and component services globally • Local production capability solves for latency and
international bandwidth issues • Reduced technical infrastructure skill requirements • Lower capital investment threshold
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Old Challenges Remain, New Arise• Means of production now openly available to everyone • Raises demand for higher level, business process,
service and user experience design skills. • Amplifies need for affordable, reliable, high-speed
network access • International bandwidth still limits global reach and
quality of service delivery • Pay-as-you-go cost model requires sustained revenue
flow
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Policy Priorities in Developing Countries• R&D or technology investment tax credits to incentivize
digital ‘re-tooling’ of industrial base • Higher level business process, service and user experience
design skills development • Broadband network access more critical than ever • Development of competitive landscape for local full
service cloud provision - Not just data-centers • Incentivize regional cloud service aggregation for skills
pooling and economies of scale • All public data available through cloud service APIs
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What’s next
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Emerging Technologies• Openstack - OSS standard for local IaaS provisioning • Docker + Kubernetes/Mesos - Reducing skills required
and time to deliver applications and services at scale • Amazon Lambda - Data/Event driven code execution • Apache Storm, Spark, Mahout - Industrial strength OSS
real-time BigData processing and machine learning • BitCoin Blockchain - Fabric for secure, trusted and
anonymous distributed service execution.
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Emerging Opportunities & Challenges• Internet-of-Things (IoT) requires entirely new data-
processing architecture • How can deep, machine-learning be used to benefit
developing economies • How will developing economy labor market adapt to
the displacement caused by combination of automated cloud services, IoT, machine-learning/AI and robotics?
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