envisioning the cloud: the next computing paradigm and its
TRANSCRIPT
Microsoft PowerPoint - Google Cloud Presentation_no
build.pptxEnvisioning the Cloud: The Next Computing Paradigm and
its Implications for Technology Policy
© 2008 Marketspace® LLC, A Monitor Group Company — CONFIDENTIAL — NOT FOR DISTRIBUTION© 2009 marketspace® LLC, a monitor group company – CONFIDENTIAL: NOT FOR DISTRIBUTION
Google DC Talks The Newseum 555 Pennsylvania Avenue Washington, DC
Jeffrey F. Rayport & Andrew Heyward Marketspace LLC A Monitor Group Company March 20, 2009
Overview
Enabling the Cloud
© 2009 Marketspace® LLC, A Monitor Group Company — CONFIDENTIAL — NOT FOR DISTRIBUTION 2www.marketspaceglobal.com
Every dozen or so years, a revolution changes the way we use computers. Huge mainframes in the 1960s, minicomputers in the 1970s, personal computers in the 1980s, cell phones and smartphones in the last decade, and now the emergence of cloud computing.
Government and the Cloud
Storage Connection SpeedProcessing Power
© 2009 Marketspace® LLC, A Monitor Group Company — CONFIDENTIAL — NOT FOR DISTRIBUTION 3www.marketspaceglobal.com
Mark Kryder Andy GroveGordon E. Moore
Defining the Cloud
Cloud computing represents a new way to deploy computing technology to give users the ability to access, work on, share, and store information using the Internet. The cloud itself is a network of data centers – each composed of many thousands of computers working together – that can perform the functions of software on a personal or business computer by providing users access to powerful applications, platforms, and services delivered over the Internet.
Social Networks Photo Sharing
Online Music
© 2009 Marketspace® LLC, A Monitor Group Company — CONFIDENTIAL — NOT FOR DISTRIBUTION 4www.marketspaceglobal.com
Smartphones
Layers of the Cloud
© 2009 Marketspace® LLC, A Monitor Group Company — CONFIDENTIAL — NOT FOR DISTRIBUTION 5www.marketspaceglobal.com
Benefits of the Cloud
Offered cloud-based version of CRM software
Became first cloud-based service to generate $1 billion in sales
Anytime Anywhere
Access
© 2009 Marketspace® LLC, A Monitor Group Company — CONFIDENTIAL — NOT FOR DISTRIBUTION 6www.marketspaceglobal.com
Sells “on demand” contract and proposal management systems
Built a prototype in a “couple of weekends” using Salesforce’s Force.com platform – company profitable within nine months
Focused on customer needs, not development or infrastructure
Specialization & Customization
Collaboration Held InnovationJam in 2006; world’s largest online brainstorm, designed to share IBM’s advanced research and technologies
Included over 150,000 participants from 104 countries
From concepts developed during sessions, IBM launched 10 new businesses with investments totaling $100 million
© 2009 Marketspace® LLC, A Monitor Group Company — CONFIDENTIAL — NOT FOR DISTRIBUTION 7www.marketspaceglobal.com
Storage as Universal Service Digitized 150 years of archives, which comprised 11 million articles
representing 1.5 terabytes of memory
Utilized Amazon’s Simple Storage Service (S3) to digitize complete archival content page by page in under 36 hours
Benefits of the Cloud
Provides web-based software for creating presentations using photos and music uploaded to the web
Increased traffic to 750,000 from 5,000 a day after a successful Facebook marketing campaign
Added capacity on Amazon Web Services infrastructure at a cost of 10 cents per server hour plus related expenses
© 2009 Marketspace® LLC, A Monitor Group Company — CONFIDENTIAL — NOT FOR DISTRIBUTION 8www.marketspaceglobal.com
Cost Savings
Utilized Google Apps to provide Office-type productivity software for its workforce of over 16,000 people
Achieved estimated savings of $80 million by not building its own data center or hiring more engineers to manage it
Enabling the Cloud
Open AccessUniversal Connectivity
“The point is that no one should be denied access to [online resources] because of who they are…. So this is a fairness issue more than anything else.”
“There will be 499 million in-home consumer broadband connections worldwide by 2012 – an extraordinary number, but it represents only 25% of the
© 2009 Marketspace® LLC, A Monitor Group Company — CONFIDENTIAL — NOT FOR DISTRIBUTION 9www.marketspaceglobal.com
In 2007, the United States ranked15th in the world in broadband penetration and 13th in overall Internet connectivity
If the United States falls short in universal access, cloud benefits will fall short, too
more than anything else.”
- Vint Cerf, Chief Internet Evangelist, Google
This raises complex issues that emerged in the debate over “net neutrality,” and powerful commercial interests are at stake
Any barriers that restrict access to the Internet limit the potential of the cloud
represents only 25% of the world’s households.”
- Gartner Group
Interoperability and User ChoiceReliability
“It is not just about being ‘always on’; it is this idea of reliability. If this is reliable, that’s a big thing. If it isn’t, then what do we turn to?”
“If a customer doesn’t like our service, they can cancel.”
- Polly Sumner, President,
© 2009 Marketspace® LLC, A Monitor Group Company — CONFIDENTIAL — NOT FOR DISTRIBUTION 10www.marketspaceglobal.com
Even best-known providers of cloud services fail from time to time – stiffening resistance of IT departments
Service that comes close to 100 percent reliability is a prerequisite for widespread adoption of cloud computing
it isn’t, then what do we turn to?”
- Kevin Kelly, Founder, Executive Editor, Wired Magazine
- Polly Sumner, President, Platform, Alliances, and Services, Salesforce.com
As of now the major players operate proprietary cloud infrastructures, with varying degrees of open standards
If large providers move to dominate with proprietary clouds, it will be difficult to realize the full potential of cloud computing
Enabling the Cloud
- Dan Burton, Senior Vice
“If we give this data to a cloud computing company, and there is a security breach or if that company gets sold, how do we address that? I am accountable.”
© 2009 Marketspace® LLC, A Monitor Group Company — CONFIDENTIAL — NOT FOR DISTRIBUTION 11www.marketspaceglobal.com
In the United States, the law treats personal information differently once it’s handed over to a third party
Cloud providers must protect user data from unauthorized government access and ensure integrity of commercial use
- Dan Burton, Senior Vice President of Global Public Policy, Salesforce.com
Notion of making a third party responsible for keeping data safe continues to provoke debates in corporate IT departments
Cloud providers must demonstrate that data is safer than in current systems
- Carolyn Lawson, Chief Information Officer, California Public Utilities Commission
Enabling the Cloud
SustainabilityEconomic Value
“The classic challenge of addressing a new market is to do it at a lower cost, make things available where they could not previously be delivered, or remove complexity. The cloud
In 2006, data centers consumed 1.5% of all electricity used in the United States.
© 2009 Marketspace® LLC, A Monitor Group Company — CONFIDENTIAL — NOT FOR DISTRIBUTION 12www.marketspaceglobal.com
The cloud is creating new business opportunities and new markets by offering high-end computing at lower cost
The real test will be for the cloud to reduce costs, increase productivity, and enable faster innovation at the enterprise level
remove complexity. The cloud can address all three of those.”
- Russ Daniels, VP and CTO of Cloud Services Strategy, HP
EPA estimates that by 2011, consolidating computing into data centers could reduce carbon dioxide emissions by 47M metric tons
As enterprises come under increasing pressure to go “green,” sustainability is critical to the viability of cloud computing
- Environmental Protection Agency
Universal Connectivity
Institutional Adoption
Cybercrime Enforcement
© 2009 Marketspace® LLC, A Monitor Group Company — CONFIDENTIAL — NOT FOR DISTRIBUTION 13www.marketspaceglobal.com
Privacy
Sustainability
Security
Reliability
Interoperability
Device ManufacturersISPsMedia CompaniesData Centers
© 2009 Marketspace® LLC, A Monitor Group Company — CONFIDENTIAL — NOT FOR DISTRIBUTION 14www.marketspaceglobal.com
Living with the Cloud
Retail Touchpoints
© 2009 Marketspace® LLC, A Monitor Group Company — CONFIDENTIAL — NOT FOR DISTRIBUTION 15www.marketspaceglobal.com
Electronic Readers
Consumer Appliances
Transportation Vehicles
Home Automation
The cloud is a reality for consumers and will become the “new normal” in corporations and organizations
The cloud is one avenue for the United States to re-assert economic and technology leadership on a global stage
© 2009 Marketspace® LLC, A Monitor Group Company — CONFIDENTIAL — NOT FOR DISTRIBUTION 16www.marketspaceglobal.com
economic and technology leadership on a global stage
© 2008 Marketspace® LLC, A Monitor Group Company — CONFIDENTIAL — NOT FOR DISTRIBUTION© 2009 marketspace® LLC, a monitor group company – CONFIDENTIAL: NOT FOR DISTRIBUTION
Google DC Talks The Newseum 555 Pennsylvania Avenue Washington, DC
Jeffrey F. Rayport & Andrew Heyward Marketspace LLC A Monitor Group Company March 20, 2009
Overview
Enabling the Cloud
© 2009 Marketspace® LLC, A Monitor Group Company — CONFIDENTIAL — NOT FOR DISTRIBUTION 2www.marketspaceglobal.com
Every dozen or so years, a revolution changes the way we use computers. Huge mainframes in the 1960s, minicomputers in the 1970s, personal computers in the 1980s, cell phones and smartphones in the last decade, and now the emergence of cloud computing.
Government and the Cloud
Storage Connection SpeedProcessing Power
© 2009 Marketspace® LLC, A Monitor Group Company — CONFIDENTIAL — NOT FOR DISTRIBUTION 3www.marketspaceglobal.com
Mark Kryder Andy GroveGordon E. Moore
Defining the Cloud
Cloud computing represents a new way to deploy computing technology to give users the ability to access, work on, share, and store information using the Internet. The cloud itself is a network of data centers – each composed of many thousands of computers working together – that can perform the functions of software on a personal or business computer by providing users access to powerful applications, platforms, and services delivered over the Internet.
Social Networks Photo Sharing
Online Music
© 2009 Marketspace® LLC, A Monitor Group Company — CONFIDENTIAL — NOT FOR DISTRIBUTION 4www.marketspaceglobal.com
Smartphones
Layers of the Cloud
© 2009 Marketspace® LLC, A Monitor Group Company — CONFIDENTIAL — NOT FOR DISTRIBUTION 5www.marketspaceglobal.com
Benefits of the Cloud
Offered cloud-based version of CRM software
Became first cloud-based service to generate $1 billion in sales
Anytime Anywhere
Access
© 2009 Marketspace® LLC, A Monitor Group Company — CONFIDENTIAL — NOT FOR DISTRIBUTION 6www.marketspaceglobal.com
Sells “on demand” contract and proposal management systems
Built a prototype in a “couple of weekends” using Salesforce’s Force.com platform – company profitable within nine months
Focused on customer needs, not development or infrastructure
Specialization & Customization
Collaboration Held InnovationJam in 2006; world’s largest online brainstorm, designed to share IBM’s advanced research and technologies
Included over 150,000 participants from 104 countries
From concepts developed during sessions, IBM launched 10 new businesses with investments totaling $100 million
© 2009 Marketspace® LLC, A Monitor Group Company — CONFIDENTIAL — NOT FOR DISTRIBUTION 7www.marketspaceglobal.com
Storage as Universal Service Digitized 150 years of archives, which comprised 11 million articles
representing 1.5 terabytes of memory
Utilized Amazon’s Simple Storage Service (S3) to digitize complete archival content page by page in under 36 hours
Benefits of the Cloud
Provides web-based software for creating presentations using photos and music uploaded to the web
Increased traffic to 750,000 from 5,000 a day after a successful Facebook marketing campaign
Added capacity on Amazon Web Services infrastructure at a cost of 10 cents per server hour plus related expenses
© 2009 Marketspace® LLC, A Monitor Group Company — CONFIDENTIAL — NOT FOR DISTRIBUTION 8www.marketspaceglobal.com
Cost Savings
Utilized Google Apps to provide Office-type productivity software for its workforce of over 16,000 people
Achieved estimated savings of $80 million by not building its own data center or hiring more engineers to manage it
Enabling the Cloud
Open AccessUniversal Connectivity
“The point is that no one should be denied access to [online resources] because of who they are…. So this is a fairness issue more than anything else.”
“There will be 499 million in-home consumer broadband connections worldwide by 2012 – an extraordinary number, but it represents only 25% of the
© 2009 Marketspace® LLC, A Monitor Group Company — CONFIDENTIAL — NOT FOR DISTRIBUTION 9www.marketspaceglobal.com
In 2007, the United States ranked15th in the world in broadband penetration and 13th in overall Internet connectivity
If the United States falls short in universal access, cloud benefits will fall short, too
more than anything else.”
- Vint Cerf, Chief Internet Evangelist, Google
This raises complex issues that emerged in the debate over “net neutrality,” and powerful commercial interests are at stake
Any barriers that restrict access to the Internet limit the potential of the cloud
represents only 25% of the world’s households.”
- Gartner Group
Interoperability and User ChoiceReliability
“It is not just about being ‘always on’; it is this idea of reliability. If this is reliable, that’s a big thing. If it isn’t, then what do we turn to?”
“If a customer doesn’t like our service, they can cancel.”
- Polly Sumner, President,
© 2009 Marketspace® LLC, A Monitor Group Company — CONFIDENTIAL — NOT FOR DISTRIBUTION 10www.marketspaceglobal.com
Even best-known providers of cloud services fail from time to time – stiffening resistance of IT departments
Service that comes close to 100 percent reliability is a prerequisite for widespread adoption of cloud computing
it isn’t, then what do we turn to?”
- Kevin Kelly, Founder, Executive Editor, Wired Magazine
- Polly Sumner, President, Platform, Alliances, and Services, Salesforce.com
As of now the major players operate proprietary cloud infrastructures, with varying degrees of open standards
If large providers move to dominate with proprietary clouds, it will be difficult to realize the full potential of cloud computing
Enabling the Cloud
- Dan Burton, Senior Vice
“If we give this data to a cloud computing company, and there is a security breach or if that company gets sold, how do we address that? I am accountable.”
© 2009 Marketspace® LLC, A Monitor Group Company — CONFIDENTIAL — NOT FOR DISTRIBUTION 11www.marketspaceglobal.com
In the United States, the law treats personal information differently once it’s handed over to a third party
Cloud providers must protect user data from unauthorized government access and ensure integrity of commercial use
- Dan Burton, Senior Vice President of Global Public Policy, Salesforce.com
Notion of making a third party responsible for keeping data safe continues to provoke debates in corporate IT departments
Cloud providers must demonstrate that data is safer than in current systems
- Carolyn Lawson, Chief Information Officer, California Public Utilities Commission
Enabling the Cloud
SustainabilityEconomic Value
“The classic challenge of addressing a new market is to do it at a lower cost, make things available where they could not previously be delivered, or remove complexity. The cloud
In 2006, data centers consumed 1.5% of all electricity used in the United States.
© 2009 Marketspace® LLC, A Monitor Group Company — CONFIDENTIAL — NOT FOR DISTRIBUTION 12www.marketspaceglobal.com
The cloud is creating new business opportunities and new markets by offering high-end computing at lower cost
The real test will be for the cloud to reduce costs, increase productivity, and enable faster innovation at the enterprise level
remove complexity. The cloud can address all three of those.”
- Russ Daniels, VP and CTO of Cloud Services Strategy, HP
EPA estimates that by 2011, consolidating computing into data centers could reduce carbon dioxide emissions by 47M metric tons
As enterprises come under increasing pressure to go “green,” sustainability is critical to the viability of cloud computing
- Environmental Protection Agency
Universal Connectivity
Institutional Adoption
Cybercrime Enforcement
© 2009 Marketspace® LLC, A Monitor Group Company — CONFIDENTIAL — NOT FOR DISTRIBUTION 13www.marketspaceglobal.com
Privacy
Sustainability
Security
Reliability
Interoperability
Device ManufacturersISPsMedia CompaniesData Centers
© 2009 Marketspace® LLC, A Monitor Group Company — CONFIDENTIAL — NOT FOR DISTRIBUTION 14www.marketspaceglobal.com
Living with the Cloud
Retail Touchpoints
© 2009 Marketspace® LLC, A Monitor Group Company — CONFIDENTIAL — NOT FOR DISTRIBUTION 15www.marketspaceglobal.com
Electronic Readers
Consumer Appliances
Transportation Vehicles
Home Automation
The cloud is a reality for consumers and will become the “new normal” in corporations and organizations
The cloud is one avenue for the United States to re-assert economic and technology leadership on a global stage
© 2009 Marketspace® LLC, A Monitor Group Company — CONFIDENTIAL — NOT FOR DISTRIBUTION 16www.marketspaceglobal.com
economic and technology leadership on a global stage