antonio piraino the 451 group. cloud computing’s impact on the latin american multi-tenant data...

Antonio Piraino, Vice President, Tier1 Research

Cloud Compu9ng’s impact on the Mul9-‐tenant Datacenter Market

Cloud Compu9ng Impact on the Datacenter Market

1. What’s changing in the market?

2. Who we are

3. Cloud Compu9ng in Context

4. The Virtualiza9on effect

5. Where to Next?

What’s changed in the business Psyche?

Consumerization of IT Era

Datacenter/IT Operators Mindset Change

•  Datacenter operators are realizing the benefits of ac9ng like Service providers within their own facili9es

•  Despite the hindrances – it is Important to start somewhere

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0%

Low Cost

Flexibility

Security

Reliability

Speed of provisioning

SLA

Tiered Billing system

Green IT

IT spend can move from capex-to-opex

Brand-name

Easy to use console

Other

What are your customers asking for?

Why is being Services Oriented Important?

§  “…make and receive VoIP phone calls from your Google Voice number using Google Talk on the desktop” (June 2011)

§  “Microso^ just spent $8.5b to acquire Skype, the single biggest name in all of VoIP.” (May 2011)

§  “Apple just unveiled iMessage at WWDC, a free messaging system…offers several major advantages over SMS.” (June 2011)

§  “Facebook’s150,000 square foot datacenter opened in Oregon… with another150,000 square foot facility to follow (April 2011)

§  “Google’s vision for 111 8th Ave acquisi9on includes colo providers and network carriers” (December 2010)

§  “IBM will spend $360 million to build its most sophis9cated, datacenter in RTP, North Carolina, for businesses” (2008)

§  “As the race for VoIP and unified communica9ons heats up, Salesforce leaps into ac9on and picks up VSee.” (June 2011)

§  “We're excited to announce the launch of live HTTP streaming for Amazon CloudFront.”

Tech Bubble 2.0?

“Facebook reached 750m users; 7 billion pieces of content shared on the site weekly •  La9noamérica suma 118 millones de usuarios de Facebook

•  Orkut remains biggest with >500k visitors/month “Apple’s15bn app store downloads is growing 9 Ames faster than Macdonald’s” (A.Love) •  Search and Social networks receive more hits that ecommerce sites

•  Informa9on, collabora9on and business produc9vity “Google Android 550,000 a day, 160m Chrome users, $37bn cash, $200bn market cap” •  Google has 90% market share in LatAm (for search)

•  And fastest Google audience growth is from LatAm “TwiQer's July membership increased 50,000 per day with 95 million tweets a day” •  In October 2010, Brazil was Twimer’s #1 market • “LinkedIn added up to $102/share with $470m revenue and over 100m users” •  LatAm has over 8.5m members Facebook, Groupon, Zynga, LivingSocial, TwiQer, LinkedIn, Pandora ($3bMarket Cap = 16x Revenue), Zillow: $3.5 billion revenue; $200bn Market Cap. •  The number of internet users in Latam has been increasing at double the rate of popula9on increase

(15% 2009/10) •  Boom is s9ll coming

Do Not Confuse with Cloud Compu3ng!


1. What’s changing in the market

2. Who we are



5. Where to Next?

The 451 Group

451 Research is focused on the business of enterprise IT innova9on. The company’s analysts provide cri9cal and 9mely insight into the compe99ve dynamics of innova9on in emerging technology segments.

Tier1 Research is a single-‐source research and advisory firm covering the mul9-‐tenant datacenter, hos9ng, IT and cloud-‐compu9ng sectors, blending the best of industry and financial research.

The Up9me Ins9tute is ‘The Global Data Center Authority’ and a pioneer in the crea9on and facilita9on of end-‐user knowledge communi9es to improve reliability and uninterrup9ble availability in datacenter facili9es.

TheInfoPro is a leading IT advisory and research firm that provides real-‐world perspec9ves on the customer and market dynamics of the enterprise informa9on technology landscape, harnessing the collec9ve knowledge and insight of leading IT organiza9ons worldwide.

ChangeWave Research is a research firm that iden9fies and quan9fies ‘change’ in consumer spending behavior, corporate purchasing, and industry, company and technology trends.

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Consumption: 2,000 MWh/year See note 1.

Effective: September '10

Consumption: 24,000 MWh/year See note 2.

Effective: September '10

Austria ! 0.1031

Austria ! 0.0754

Belgium ! 0.1070 Belgium ! 0.0779 Bulgaria ! 0.0635 Bulgaria ! 0.0496 Cyprus ! 0.1592 Cyprus ! 0.1113 Czech Republic ! 0.1138 Czech Republic ! 0.0942 Denmark ! 0.0948 Denmark ! 0.0890 Estonia ! 0.0645 Estonia ! 0.0449 Finland ! 0.0681 Finland ! 0.0559 France ! 0.0619 France ! 0.0519 Germany ! 0.1134 Germany ! 0.0848 Greece ! 0.0946 Greece ! 0.0790 Hungary ! 0.1314 Hungary ! 0.0961

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Datacentre Selec9on Report

10

MTDC Supply Reports

11


1. What’s changing in the datacenter world

2. Who we are



5. Where to Next?

Context of the Datacenter Industry

Cloud Compu9ng Plaqorms

IP Cloud

Evolu9on of Managed Hos9ng Sector

Virtualiza9on

•  Roots in the 1960’s as a way to par99on large, expensive mainframe systems into smaller units that can operate independently of each other, thereby maximizing capital investment.

•  Abandoned through the desktop PC wave (80’s), the Client/Server wave (90’s).

•  Then in 1999, “VMware Worksta9on” was released from a small Palo Alto, CA startup.

Ini9al benefits… §  More efficient use of compute capacity. §  Faster provisioning for new business ini9a9ves, training, dev/test, lab environments, etc.

§  Lower labor cost for install, upgrade, backup, restore, move opera9ons. •  Physical servers are only ever racked once. • Moving virtual servers as easy as copying a file. •  Some mi9ga9ng costs in complexity, licensing, manageability

Virtualiza9on

The Cloud Compu9ng Layers

Aggregate Cloud ‘As a Service’ Market

CAGR ~25%

Growth in the Rest of the Market

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

$50,000

$55,000

$60,000

$65,000

2009 2010 2011* 2012* 2013*

Revenu

e (US$m)

Internet Infrastructure Market 2009-‐2013



2. Who we are


4. The Virtualiza9on effect on datacenters

5. Where to Next?

Modern Enterprise Architecture

Cloud-like Enterprise Architecture

Private Enterprise Cloud

Public Cloud Services

Cloud Architecture Cloud Criteria

4

3

2

1

þ Publically Accessible

þ Programmatic management interfaces

þ Multi-tenant Architecture

þ Accounting Granularity and Cost Allocation

þ Scalability and elasticity

þ Rich Web management capabilities

þ Rapid Provisioning and Self Service

þ Virtualization and Hardware Independence

Cloud Criteria vs. Architecture

How far have we gone?

§  VKernel analyzed 550,000 virtual machines across 2500 deployments and found average consolida9on of 12.5-‐15.6 virtual machines per physical host (8-‐10 for larger organiza9ons).

§  Apps on virtual infrastructure will exceed those on physical servers

0% 20% 40% 60% 80% 100%

< 5%

5%-‐10%

11%-‐20%

21%-‐30%

31%-‐40%

41%-‐50%

> 50%

2010 2011

Impact on the Next Genera9on Data Center

•  The de facto “atomic unit” in the next genera9on datacenter is the virtual machine.

•  Increased focus on IT governance (i.e.: ITIL), otherwise inevitable VM sprawl will result in every trivial process having its own server (and OS license).

•  No labeling servers with s9cky nametags. Rack once, never touch again – “fail in place” (Google rack) approach. Less reac9ve break/fix management, more proac9ve/rou9ne/scheduled.

Impact on the Next Genera9on Data Center

•  Movement towards “best execu9on environment” approach to IT, hybrid balancing act of CapEx vs. OpEx via on-‐premise and off-‐premise.

•  Almost all servers – even systems that are absolutely mission cri9cal -‐ will eventually be virtualized, even if at a 1:1 ra9o.

Vmo9on & 2nd order effects of Virtualiza9on

•  Significant implica9ons for IT… •  Reduced “maintenance window”

down9me for cri9cal applica9ons. •  More op9ons for hot BC/DR needs

Power density and cooling challenges

§  42U’s worth of servers at 5-‐15% u9liza9on has different power demand than 42U’s worth of servers at 70-‐80+% u9liza9on.

§  Overall power usage in a virtualized environment decreases, but density increases.

Power density and cooling challenges

Dell example §  PowerEdge 2650 running a test workload at 30% CPU consumed 290 wams.

§  Consolidated eight (8) of those systems onto a single PowerEdge 2950, reaching 80% of CPU. System consumed 440 wams at sustained load.

§  Net power savings 2,320 – 440 = 1,880 §  However, original load was in 16U for 145 wams/U. New load of 440 in 2U is 220 wams/U. >50% increase. 6kW/rack -‐> 9.2kW/rack.

Jevon’s Paradox, 1865/Rebound effect: Technological progress that increases the efficiency with which a resource is used tends to increase the rate of consumpAon of that resource.

Pondering the Next Genera9on Data Center

•  Planning for the future? •  APC Virtualiza9on Energy Cost Calculator •  Visio 2007

Add-‐In for Rack Server Virtualiza9on


“Accordion IT” §  VMware Distributed Resource Scheduler (DRS) paired with Distributed Power Management (DPM) can automa9cally shuffle virtualized machines between hosts, consolidate to as few hosts as needed during low u9liza9on, and power off physical machines when not needed.

“Migratory IT” §  Take “Accordion IT”, and then add geographic migra9on across datacenters/states based on electricity spot pricing (i.e.: “follow the moon”). Cisco Overlay Transport Virtualiza9on.

§  Intelligent integra9on of VM controls and datacenter facility controls -‐ if all VMs are moved out of a sec9on of datacenter and servers powered down, no need to cool it.


Other interes9ng possibili9es? §  Virtual servers fly around the data center, risk overloading a circuit? Traveling hot spots?

§  Fanless servers? Microso^ is trying to experiment with that, disrupts PUE -‐ but less power consumed for equivalent compute load. Rackable (SGI) “CloudRack”.

§  Pulse width modula9on (PWM) on server fans •  Facebook is trying that out in conjunc9on with cold aisle containment & other improvements.



2. Who we are


4. The Virtualiza9on effect on datacenters

5. Where to Next with Cloud Compu9ng?

Winners in the Cloud

hmp://www.cloudgirlfriend.com/

Future IT Topology

Inves9ga9on of Cloud Compu9ng

0% 20% 40% 60% 80% 100%

No

Yes

2H '091H '102H '10

0% 20% 40% 60% 80% 100%

Both

Based onExternalServices

EnterpriseInternal

2H '091H '102H '10

Ini9ator of Cloud Projects

Who put your organiza9on's cloud project in mo9on?

0% 10% 20% 30% 40% 50%

CEO

IT So^ware

CTO

LOB

CIO

IT Data Center

Final Cloud W2: Full Sample. n=51.

Which format of Cloud?

!

Solving Apps Performance Challenges

Proximity < 5ms < 50km

Real-‐Time < 50ms < 500km

Priority <100ms < 2000km

Best Effort >100ms >2000km

BUSINESS CR

ITICAL

ITY

LATENCY SENSITIVITY

Compute model increasingly complex

•  Means More work and complexity •  Means more challenges in meeting SLAs

Cloud

Servers/Network/Storage

Collaboration Voice / Video / Telepresence

Cloud (Amazon, Rackspace, and more)

Performance & Availability

Ticke9ng

Asset Even9ng

43

Storage

Networks

Operating Systems

Servers

Databases

Video

Management, Control & Transparency importance

Not a fad… This is Next-‐Gen Business

www.9er1research.com www.the451group.com

Ques9ons!

Antonio Piraino, Vice President

antonio piraino the 451 group. cloud computing’s impact on the latin american multi-tenant data...

Technology