Cloud Computing_Network World Whitepaper

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1 www.networkworld.com

INSIDE

T H E C O N N E C T E D E N T E R P R I S E

COVER IMAGE TO GO HERE

S P E C I A L R E P O R T : : D E C E M B E R 2 0 1 1

2 Cloud computing disrupts thevendor landscape

5 Mapping out the landscape

6 New Cisco cloud computing

framework pushes mgmt., col-laboration

8 EMC works to boost accep-tance of clouds

9 Cloud, consumerization, loss ofIT control in 2012

10 Preparing for real costs ofcloud computing

Cloud ComputiNgChaNges everythiNg

Non traditional vendors enter cloud market

lCloud computing


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S P E C I A L R E P O R T : : J U L Y 2 0 1 1

2 www.networkworld.com tHe connected enterPrISe

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The sheer number o cloud players - or

companies that claim to be cloud players -- is

staggering. By some estimates there are more

than 2,000 sotware as a service (SaaS) com-

panies alone. At this early point in the cloud

revolution, there are certainly ront runners,

but the eld is wide open.

For example, the marquee SaaS player,

Salesorce.com, owned a paltry 8.7% o the

total SaaS market, according to a 2010 IDC

report that tracked 84 vendors. Other big

names --Intuit, Cisco, Microsot, Google and

Symantec - were all below 5% each. Thatleaves scores o other competitors with tiny

market shares today, and no place to go but up.

Inrastructure-as-a-service (IaaS) has

more than 30 major players, both pure-play

outts that provide pay as you go, on-demand

compute services, and those rising into the

cloud rom the traditional managed services

realm. And Forrester research is watching at

least 40 platorm-as-a-service (PaaS) provid-

ers who say they can help developers build

cloud apps better, stronger, aster.

To urther muddy the waters, many ven-

dors are extending their cloud oerings

across the neat SaaS, PaaS and IaaS bound-

aries. Its true that most o the disruption

caused by cloud computing relates to enter-

prise [operations] and IT. But its also been

pretty disruptive to the vendor community as

well, says David Mitchell Smith, vice presi-

dent and ellow at the Gartner Group.

Smith believes that a tremendous shakeout

will occur over the next year or two. He pre-

dicts that by 2013 a small handul o vendors

will emerge as leaders delivering both enter-prise systems and cloud services.

So who are those vendors? The two names

on Smiths short list are Microsot and

VMware.

Smith argues that Microsot made a seismic

shit to a SaaS delivery model in 2008 and has

since delivered Microsot Oce365, Share-

Point Online, and Microsot Dynamics CRM

Online. In the PaaS arena, Microsot is push-

ing its Azure platorm o AppFabric, SQL

Azure and Windows Azure. And, Microsots

making headway in pushing Azure down

into the IaaS space as well.

VMwares vSphere hypervisor and

management sotware has long provided

trusted virtualization capabilities in the

enterprise. VMware is also making a strong

IaaS play by building a network o vendors

who use vCloud to deliver cloud compute

services.

And VMware has various PaaS irons in the

re. Theres its own vFabric PaaS platorm.

Plus, the company launched CloudFoundry,

an open PaaS platorm housed at www.CloudFoundry.org where developers can con-

tribute to collaborative open source projects.

And theres a hosted PaaS platorm operated

by VMware at www.CloudFoundry.com.

There are no guarantees in a market this

size, but we see [Microsot and VMware]

as the companies in the best position now,

Smith says.

SaaS is the most mature cloud layer and,

in act, existed well beore the term cloud

computing gained prevalence, says Robert

C cn n ncAmazon and Google shake things up, but Microsoft and VMware may get last laugh


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Mahowald, Research Vice President o SaaS

and Cloud Services at IDC.

Mahowald makes these two observationsabout the state o SaaS today: Most enter-

prises are looking to SaaS or net new appli-

cations, not as a replacement or existing apps.

And many sotware vendors are developing

their products to be consumed via the cloud

rst, and or on premise consumption sec-

ondarily, i at all.

IDC says the 2010 SaaS market rang in at

$16.6 billion, a gure that represents three-

quarters o all IT-based public cloud rev-

enue. IDC predicts that by 2015, worldwide

SaaS revenues will skyrocket to $53.6 billion

annually.

The SaaS market has solidied because it

just makes nancial sense or both the pro-

vider and the consumer. That combination

always drives adoptions, says Robert K.

West, ounder and CEO o Echelon One, an IT

security and risk management consultancy.

Vendors with an edge today tend to be those

that developed their products to run natively

in the cloud. They were built to take advan-

tage o the clouds elastic nature, to be sold on

a usage-based model, have multi-tenancy as

a basic tenet so that security is constructed

accordingly, and have worldwide reach and a

resilient inrastructure underneath the covers.

Companies held in high regard or their SaaS

oerings include Salesorce.com (CRM), Work-Day (HR and nancial management), Google

(desktop productivity), Oracle (business analyt-

ics), Concur Technologies (travel and expense

management) and NetSuite (ERP).

Thats not to say that the traditional enter-

prise sotware giants such as SAP and Oracle

are out o the race. But they are playing a bit

o catch-up. Some o the tension between

those two camps came to the ore in the recent

dustup between Salesorces Marc Benio

and Oracles Larry Ellison.

The SAPs and Oracles o the world are

trying to adapt their existing sotware to the

cloud, which is extremely dicult and timeconsuming, says Joe Coyle, CTO o Cap-

gemini North America, a consulting and out-

sourcing rm that helps enterprises deploy

cloud services. He argues that the process o

putting these applications in the cloud is not

dicult, but getting them to take advantage o

the elastic nature o the cloud, is.

Getting an SAP application to know there is

more compute power available when it needs

it, is the challenge, Coyle says. Until those

applications are reworked to understand what

is dynamically available to them, they will lag

behind the SaaS leaders, Coyle says.

On Saturday, SAP made a major cloudmove, spending $3.4 billion to buy Success-

Factors, which oers an increasingly popular

set o on-demand human resources applica-

tions. Analysts say the move by SAP could

bring its entire cloud sotware portolio into

a new ocus.

Paul Turner, senior product manager at

NetSuite which has 10,000 customers using

its SaaS-delivered ERP sotware, says there

are several tell-tale signs o a alse cloud

application. Turner says a native cloud appli-

cation is completely Web-based, rom the

user experience through to the administrator

experience. It needs to be as easy to access as

Gmail, argues Turner.

Secondly, the service must oer a custom-

ization layer that allows enterprise IT to make

the tweaks to suit its needs, and those changes

must migrate seamlessly with each upgrade

to the service. And inally, Turner argues

there must be a high level o transparencyabout any downtime and security issues.

SaaS begets PaaSMany o the leading SaaS players -- Salesorce.

com, Google, NetSuite, and WorkDay -- are

trying to solidiy their positions within their

market segments by developing PaaS envi-

ronments or third-party ISVs.

For example, Salesorce launched Force.

com, a PaaS oering built to support its SaaS

service; then bought Heroku in order to

provide a more open PaaS service. The com-

pany claims 200,000 apps built on the Force.

com platorm.Were adding developers daily, says Byron

Sebastian, executive vice president o platorms

at Salesorce. The hot area is mobile applica-

tions running in the public cloud, he says.

The hurdle Sebastian encounters when

pushing PaaS into the enterprise is inertia.

We get a lot o pushback rom olks who

are just used to doing business the old way,

Sebastian says.

A second segment o the PaaS market com-

prises general purpose development plat-

orms that support multiple languages and

cloud inrastructures, says Krishnan Sub-

ramanian, an independent industry analyst

and blogger at www.cloudave.com.

Microsots Azure and Googles App

Engine are leaders in this category, Subrama-

nian says. The hot start-ups are CloudBees

and Engine Yard, he adds.

And Subramanian believes VMwares

CloudFoundry shouldnt be counted out,

as the eld shakes out over the next 18 to 24

months, because it espouses the open source

approach popular with the developer set and

cash-strapped start-up sotware companies.

But its still very early in the game.

Forrester analysts John Rymer and Stean

Rein describe the PaaS market as sprawling,

ast-changing, and very immature. Thereslittle agreement on what comprises a PaaS in

the rst place, most PaaS vendors are small,

some o the bigger ones have relatively imma-

ture products, and other major vendors like

IBM, RedHat and Oracle have only recently

entered the market.

Forrester divides the PaaS world into our

categories, with some vendors competing in

multiple segments.

In the largest group, sotware develop-

ers are allowed to use their current tools o

choice locally and then push code out to the

cloud. Playing in this segment are ActiveState,

Appian, Force.com, Google, LongJump, MagicSotware, Microsot, NetSuit, OutSystems,

Servoy, TIBCO, Vaakya, VMware, Wave-

maker and WS02.

Then there are cloud development envi-

ronments where everything happens in the

cloud. These PaaS oerings are browser

based and developers build applications in

a remote data center cloud. The players here

are Appian, Cordys, Force.com, Inuit, Track-

via and WOLF Frameworks.

Some companies target business experts,


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not coders. Caspio, Cordys, IS Tools, Mendix,

Orange Scape, WorkXpress and Zoho provide

tools or creating applications without codingin order to speed up app delivery times.

The last category allows developers to

use whatever tool they want to build their

cloud applications and the platorm tackles

the deployment, scaling and management o

these apps in the cloud data center. The play-

ers here are Amazon, Appistry, Apprenda,

CloudBees, Cloudsot, Engine Yard, Gigas-

paces, Heroku, IBM, Joyent, Microsot, Red

Hat, Standing Cloud, TechCello and VMware.

Rymer notes that enterprise IT should act

cautiously when it comes to PaaS because

start-ups are risky and big vendors move slowly

and may use their PaaS oerings simply as call-ing cards to sell their current products.

Rymer says the two companies likely to

enjoy long-term success in the PaaS market

are Microsot and Salesorce. Every other

vendor is a long-term risk, he adds.

I enterprise sotware developers do want

to push orward, Rymer oers these tips.

Find out how well the vendor supports the

ilities: security, scalability, availability, reli-

ability and serviceability. Next, determine

how each PaaS service jibes with the enter-

prises existing application development tal-

ent. Finally, nail down what benets PaaS is

likely to provide. Cutting costs is a hard oneto obtain. Time to market is relatively easy to

obtain, Rymer says.

IaaS ree or allIaaS is currently the smallest market o the

three major cloud categories, but is expected

to have the astest growth rate over the next

three to ve years. Gartner says last years

total o just over $2 billion will grow by that

much or each o the next our years.

The 800-pound gorilla is Amazon. Com-

petitors see EC2 both as an ingenious use

o surplus compute power and a nemesis to

be deeated by the marketing mantra thatsays a mass-market retailer simply cannot

cater to the complicated needs o enterprise

customers.

But this market is evolving to be more com-

plicated than simply Amazon vs. the rest o

the IaaS world, says Lydia Leong, research

vice president at Gartner.

I your dierentiation is were not like

Amazon, were enterprise-class!, youre now

competing against dozens o other provid-

ers who also thought that would be a clever

market dierentiation. Not to mention that

Amazon already serves the enterprise, and

wants to deepen its inroads, wrote Leong ina recent blog post.

Leong is Gartners go-to author when it

comes to analyzing the IaaS market. Her

report last December on the cloud IaaS and

Web hosting provider market (encompass-

ing private, public and hybrid cloud services)

identiied AT&T, Rackspace, Savvis (pur-

chased by CenturyLink), Terremark (pur-

chased by Verizon) and Verizon as the mar-

ket leaders. Visionaries were Amazon, CSC,

GoGrid, IBM and Joyent.

A new report (which was not yet made

public at press time) analyzes a sub-category

o IaaS vendors that oer automated, multi-tenant services or scale-out cloud hosting,

virtual lab environments, sel-managed vir-

tual data centers, and turnkey virtual data

center services. Rackspace, AT&T, Savvis,

Terremark, Verizon (with its home-grown

Computing as a Service), and OpSource are

the big names in this market.

The separation [o these segments] is

grounded in the act that some vendors provide

very good inrastructures without any services

and others get the managed services right, but

dont have very good clouds, Leong says.

The traditional, old-school telecom carriers

are sometimes seen as dinosaurs, but Coylesays they shouldnt be discounted. Just think

o who controls all the bandwidth, right? It

becomes a no brainer then, Capgeminis

Coyle says.

The carriers have another advantage over

cloud newbies: long-term relationships with

enterprise decision makers. When it comes

to the cloud sale into big enterprises, we

already have a seat at the planning table as a

trusted service provider, says Steve Caniano,

vice president o AT&Ts hosting and cloud

services.

AT&T, British Telecom and Verizon lead the

pack o carriers in the cloud to some degree, butin terms o building out reliable IaaS-ocused

data centers, Verizon is the most advanced,

Coyle says. He argues that the point o the Ter-

remark purchase was not the extra data center

ootprint, but the management services that

Terremark wraps around its IaaS.

Managed services are where the real money

lies or cloud vendors, says Coyle, adding that

the Amazons o the world are driving prices

down so low that the carriers will not be able

to compete on raw compute power alone.

IaaS companies are starting to realize they

have to oer these managed services - or at

least create APIs so you can have manage-ment sotware plug in and monitor these

clouds like you do your internal assets -- to

get into the enterprise and pull in their next

level o business, Coyle says.

Rackspace was so condent that custom-

ers would be willing to pay or these wrap

around services like application deployment,

deep system monitoring and unied hybrid

cloud management, that the company spear-

headed the OpenStack project to make basic

IaaS platorms interoperable.

As vendors try to hone their competitive

edges, customers are nding that theyre not

limited to one IaaS provider.Shelton Shugar, senior vice president

or SaaS at CA Technologies, oversees IaaS

vendor selection. You have to actor in each

IaaSs scale, global ootprint, quality, price

and the fexibility in which they can adapt

to your particular project. The answers to

those questions will vary with the scope o

each cloud project.

Having multiple (he advises not more than

three or management becomes a nightmare)

IaaS providers will become common place,

says Shugar, who divulged his company uses

Rackspace but declined to name the others in

CA Technologies multi-vendor IaaS strategy.Having multiple IaaS providers gives CA bet-

ter worldwide coverage and a bit o an edge in

negotiating avorable terms.

Its good to have a couple o IaaS provid-

ers working or you to share the load, says

Doug Harr, CIO or Splunk, a data mining and

indexing sotware developer in San Francisco,

which also runs all o its business operations

in the cloud via Netsuites SaaS oering.

Harr explains that Amazon is the compa-

nys deault IaaS provider because its service

is so wide and deep. But every project brings

a new evaluation, so the choice is wide open

based on the use case, Harr says.And that seems to be the prevailing wisdom

at this point. Enterprises looking or cloud

services should check out the big names, but

should also take a good hard look at the many

innovative cloud start-ups. n

Burns is a freelance writer and editor

based Carlisle, Pa., who has over 15

years experience covering the networking

industry. She can be reached at

[email protected].


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mn ncMeet the vendors in the cloud computing marketplace

Citrix targets virtualization,orchestration layers

Were they guilty o cloudwashing - slap-

ping the cloud label on existing products?

Were they ignoring the cloud and risking

getting let in the dust? Were they scram-

bling to re-invent themselves as cloud service

providers?

Turns out that companies like Cisco and

Juniper, CA and Citrix are sticking to their

core strengths and positioning themselves as

enablers o the cloud, providing the underly-

ing hardware and sotware just like theyve

been doing or enterprise and service pro-

vider customers or decades.I Citrixs XenServer virtualization plat-

orm is the body o what the company has

to oer to service providers and enterpriseslooking to build and tap into the public cloud,

then CloudStack is the brains behind the

operation.

CloudStack is the Java-based open source

cloud orchestration sotware Citrix picked up

with its recent acquisition o Cloud.com last

summer. It is designed to ease the adminis-

trative hassles associated with deploying and

managing large networks o virtual machines.

Even beore Citrix bought Cloud.com in

July, about 80% o Cloud.coms customers

were already using XenServer as their cloud

optimized hypervisor. So those two layers

have been working together or a very long

time, says Sameer Dholakia, group vice pres-

ident and general manager or the cloud plat-

orms group at Citrix. That said, CloudStack,

can also manage Linux KVM (kernel-based

virtual machine), VMwares VSphere and

Oracles Oracle VM as well as handle bare-

metal provisioning. Support or Microsots

Hyper-V is slated next year.

It is core to our strategy not to create [ven-

dor] lock-in at any layer in the stack, adds

Dholakia.

Over 70% o Citrixs cloud-building busi-ness is done with telcos (Korea Telecom, Brit-

ish Telecom and Telstra in Australia, to name

a ew) who see Amazons innovative way odoing business in the cloud as a big threat to

their traditional revenue stream.

Many o the service providers we are work-

ing with are building multiple cloud oerings

build on dierent virtual inrastructures or a

variety o timing and cost reasons and they are

using CloudStack to manage them all, Dhola-

kia says.

There are cost reasons or having multiple

virtualization platorms as a cloud provider,

but there really is no reason why youd want

to maintain two, separate orchestration layers

to manage them, Dholakia says.

One layer up in Critrixs cloud enablement

stack is CloudPortal (a property that came

into the Citrix old in part with the Cloud.com

buy, but also through the companys purchase

o EMS- Cortex in February), which is a suite

o tools that enables a service provider to set

up the business processes involved in run-

ning a public cloud. It provides things like on-

boarding, account management, billing andsel-service provisioning.

For enterprises who want on-premise

public-like cloud services behind their own

rewall, Citrixs strategy hinges on the pos-

sibility o hybrid management. Through a

combination o XenServer and CloudStack

deployments on premise and in the cloud,

customers could set up cloud zones within

the same management interace. These cloud

zones would have to be connected via another

Citrix product called Cloud Bridge, which

runs on top o companys line o NetScaler

VPN appliances.

This is still a very early use case o ourproducts. Most customers are really think-

ing about one side o the wire or the other,

Dohlakia says. But he contends the wind is

deinitely blowing public clouds into the

enterprise landscape.

Cisco sees UCS as keycloud building block





bling to re-invent themselves as cloud service

providers?Turns out that companies like Cisco and






vider customers or decades.

The only place Cisco plays directly in the

cloud is in the SaaS arena with its WebEx col-

laboration, video and telepresence services,

which account or about $1 billion o Ciscos

By Christine Burns, network world, deC. 5, 2011

With scores o new cloud companies pop-ping up and so many existing playersjumping on the cloud bandwagon, we

wondered where the traditional enterprise net-working vendors stood?


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New Cisco cloud computing framework pushes mgmt., collaboration

By Jim duffy, network world, de. 6, 2011

Cisco this week unveiled products and packaging options

or customers looking to implement public, private and

hybrid cloud computing.

Ciscos new CloudVerse ramework is designed to enable

organizations to build, manage and connect public, private and

hybrid clouds. It includes some existing Cisco products, such

as Unied Computing System servers,

Nexus switches and network manage-

mentapplications, as well as new

sotware or collaboration, improved

management and enhanced connectiv-

ity, and services to help customers

design and deploy their environments.

According to Cisco, more than 50%

o computing workloads in data centers

will be cloud-based by 2014. Also,

global cloud trac will grow more than

twelveold by 2015, to 1.6 Zettabytes per

year -- the equivalent o more than our

days o business class video or every

person on Earth, the company says.

This expected growth creates the need or tighter interac-

tion between data centers and networks to support end-to-end

cloud application and service delivery in a dynamic, on-

demand model, Cisco says.

Analysts say CloudVerse will ace competition rom Alcatel-

Lucents CloudBand and rom other cloud IT vendors that are

expected to soon announce their own comprehensive cloud

enablement oerings.

CloudVerse, and Alcatel-Lucents recent CloudBand

strategy, are the most comprehensive and ocused cloud

enablement oerings aimed at service providers, says Dana

Cooperson o Ovum. Both have the typical IT elements that

are part o any cloud story, but the new part or both Alcatel-

Lucent -- which partners with HP or the IT bits -- and Cisco is

the emphasis on combining the IT/data center piece with the

network/communication piece.

Others see CloudVerse as a way to overcome barriers to

cloud adoption -- but only i customers adopt a Cisco-only

solution.How do you solve some o the barriers out there that keep

people rom adopting cloud? asks Zeus Kerravala o ZK

Research in assessing the rationale or CloudVerse. Its solv-

ing the management and interoperability problems with the

cloud. This shows that Cisco is thinking about cloud service

and adoption. But multivendor [interoperability], youd think

that would come sometime down the road.

The new sotware Ciscos rolling out or CloudVerse includes

cloud-specic management applications or the UCS servers

and Nexus switches; or ASR edge routers; and or Ciscos

hosted collaboration platorm.

For management, Cisco unveiled Intelligent Automation or

the Cloud, which provides automated provisioning and control

o data center resources so IT services can be delivered within

and between data centers. Cisco also rolled out Network

Services Manager, which is designed to automatically create,

deploy and modiy physical and virtual networking resources

on demand.

For the ASR edge routers, Cisco has

added its Network Provisioning Sys-

tem (NPS) sotware to the ASR 1000

and 9000 models. NPS debuted with

the CRS-3 carrier core router last year-- it acts as a GPS or the network by

steering trac toward the most reach-

able source o compute and storage

resources, or content.

In the CloudVerse context, NPS

is the oundation or interconnect-

ing separate cloud networks -- what

Cisco calls Cloud-to-Cloud Connect

-- enabling dynamic resource identication, allocation and

optimization between data centers and clouds.

And on the hosted collaboration solution (HCS) platorm,

Cisco added Private Cloud HCS, which is intended to allow

enterprises to build their own collaboration cloud using Cisco

validated and tested designs. Cisco also added Mobile HCS,which allows mobile service providers to now oer collabora-

tion rom the cloud on mobile phones

This oering extends HCS to mobile devices rom xed

devices on desktops.

A third enhancement to HCS is Customer Collaboration,

which is a cloud-based contact center oering. Adding these to

the cloud is intended to make the services more aordable and

accessible to organizations implementing cloud.

Cisco is supporting CloudVerse with new cloud enablement

services, which combine Ciscos proessional services with

that o its partners to help organizations design, deploy and

optimize cloud computing or their business.

Cisco says early elements o CloudVerse are being used by

more than 70% o cloud providers, including ACS, a Xeroxcompany; Fujitsu; Orange Business Services; Silicon Valley

Bank; Telecom Italia; Telenica Spain; Telstra and Verizon

Terremark.

CloudVerse will be generally available in 2012, Cisco says.

Cisco also plans to extend its SecureXsecurity architecture to

CloudVerse. SecureX involves use o a tagging technology in

Cisco rewalls to identiy a wide range o inormation about a

users network usage, such as applications, devices, location

and time o day, so that security decisions can be made in a

context-aware ashion.
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INSIDERNwkW

$40 billion in annual revenue.

But where were really ocused on is

enabling people to build public clouds, says

Lew Tucker, Ciscos CTO o Cloud comput-

ing, using Ciscos networking know-how, its

reputation in both the enterprise and carrier

markets, and, o course, its gear.

But we also know that its not easy to stand

up a cloud, says Tucker, who was hired 14

months ago to develop Ciscos cloud strategy.Beore coming to Cisco, Tucker was rst vice

president at Salesorce.com where he over-

saw the development o AppExchange. And

then he served as CTO at Sun where he was

responsible or building Sun Cloud, an early

IaaS platorm targeting Java developers.

While there are many dierent clouds out

there, there is an underlying cloud model that

we all adhere to. We want the cloud inra-

structure to have a pool o server, networking

and storage resources that we virtualize and

turn into a service or applications to take

advantage o, Tucker says.

At the center o Ciscos cloud enablementstrategy is its Uniied Computing System

(UCS), which is an enterprise class blade-

based platorm that tightly integrates server

and networking unctions. Cisco introduced

UCS in 2009. Tucker qualiies UCS sales

as very successul and

industry reports say that as

o August there were 7,400

UCS customers, 2,000 o

whom were added in the pre-

vious quarter .

Cisco is also attacking

cloud rom another angle

with its strategic partner-ship with EMC, VMware and

Intel in a joint venture called

the Virtual Computing Envi-

ronment (VCE) Company.

This is way to give cloud pro-

viders an integrated inra-

structure platorm that will

greatly speed up their time

to market. VCE is headquar-

tered in Dallas and sells its

products as pre-integrated

sets o Cisco switching and UCS servers,

EMC storage, and virtualization provided by

VMware.

Cisco is also throwing its weight behind

OpenStack, the open source cloud comput-

ing eort originally spurred by Rackspace.

Tucker says Cisco is working with 14 other

vendors to dene a virtualized networking

service called Quantum to help developers

write applications that can inherently takeadvantage o more interesting network topol-

ogies and embedded network services.

Essentially, we want developers to be able

to spin up isolated virtualized L2 networks

just as i they were spinning up virtual

machines, Tucker says.

Juniper ofers abric or high-perormance clouds





bling to re-invent themselves as cloud serviceproviders?





ing hardware and sotware

just like theyve been doing

or enterprise and service

provider customers or

decades.

Jun ip er ha s a th re e-

pronged cloud strategy that

includes selling network-

ing gear in the data centerso most major IaaS players,

providing secure connec-

tions between virtual data

centers and cloud customers,

and orchestrating how virtu-

alized resources get allocated

to cloud application services.

The cornerstone o Juni-

pers cloud eort is QFabric,

says Mike Marcellin, vice

president o strategy and

marketing or Junipers Platorm Systems

Group. QFabric is a new switching architec-

ture announced in March that creates a singlelogical switch connecting the entire data center.

It replaces Spanning Tree which links access,

aggregation and core switches. By latten-

ing the three-tier network, QFabric reduces

latency in the data center, where most o the

networking communication happens between

servers or between servers and storage.

QFabric is also a product line that has been

available since September comprising the QF

Director management platorm; the QF Inter-

connect chassis, which is the logical switch

abric; and the QFX3500 node, a 10 gig top-

o-rack switch that supplies high-density

ingress and egress ports.

Juniper has made its mark in leading in

scale and perormance. Weve massively

rethought how high data center networking

happens and QFabric is how we are address-

ing perormance there, Marcellin says.

On the security ront, Juniper has a strong

presence in the data center with its line o

high-end SRX line o irewalls. Also, the

company - by way o the acquisition o Altor

Networks late in 2010 - now has a line o vir-

tual network rewalls, the Virtual Gateway

(vGW) series.

For our customers who are trying to build

out a cloud inrastructure, having a rewall

sitting inside the hypervisor helps our cus-tomers round out their security story, Mar-

cellin says.

One o the biggest issues acing IaaS ven-

dors, contends Marcellin, is how to eciently

orchestrate the delivery o inrastructure ser-

vices to the apps running in the cloud.

For all the elements o the virtual center

that Juniper provides, the company has tried

to make them manageable via JunOS Space,

an open sotware platorm that allows cus-

tomers, partners, and developers to build

and deploy apps that manage and analyze

Juniper-provided network inrastructure

and conduct operations management.Think about an application that will let you

congure many, many switches in an auto-

mated way. Or an application that lets you

congure hundreds o virtual rewalls in an

automated way, Marcellin says.

These tasks may sound pretty basic, Mar-

cellin says, but having a platorm that

enables this level o automated management

will help Juniper customers avoid congura-

tion errors in massive data centers support-

ing a public cloud.


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INSIDERNwkW

CA weighs in with Cloud 360Were they guilty o cloudwashing - slap-

ping the cloud label on existing products?Were they ignoring the cloud and risking get-

ting let in the dust? Were they scrambling

to re-invent themselves as cloud service

providers?







vider customers or decades.

CA Technologies addresses the public

cloud in three ways: helping enterprises

understand how to use it; enabling service

providers to build it; and, managing cus-

tomers expectations about how operat-

ing in the cloud will change how they do

business.

Using the public cloud - whether you are

talking about IaaS, PaaS or SaaS -- requires

discipline, says Andi Mann, CA technolo-

gies vice president o enterprise and cloud

solutions.

You cant just throw mission critical appli-

cations with personally identiable inorma-

tion up there because you are going to run

into compliance, security, privacy, licensing

and perormance issues.

To help customers determine the right

applications and the right timing, CA wraps

consulting services around several o its

portolio, project and capacity planning, anddesign and modeling tools in a program called

Cloud 360.

The two main products are AppLogic,

which enables IT departments and service

providers to rapidly build and deploy cloud

applications and Automation Suite or Cloud,

a cloud management suite that oers applica-

tion deployment and workload management

and provides a single interace or control-

ling both private-cloud and public-cloud

resources.

This gives service providers the turnkey

underpinning they need to build out a public

cloud service that can compete with the Ama-

zons and the Rackspaces, but with the secu-

rity, auditing and reliability in place to attract

the more conservative enterprise customers,Mann says.

On a more general level, Mann argues

that all o CAs inrastructure, application

and security management tools can be used

to allow an enterprise to closely monitor its

activity in the cloud and the data collected can

be used to help them transorm how they do

business there.

I a business unit is now responsible or

allocating its own IT consumption, they had

better have a good handle on what they are

paying or, Mann says. n

EMC works to boost acceptance of cloudsBy tim Greene, network world, deC. 16, 2011

EMC has tied its ortunes to the uture o cloud computing

and is working hard to change the hearts and minds o IT

executives so they will embrace the same vision, accord-

ing to the rms chie marketing ocer.

To that end the company is promoting college degree pro-

grams or data scientists, helping service providers developcloud services and trying to lessen the perception that cloud

adoption threatens traditional IT jobs, says Jeremy Burton,

EMCs CMO.

In the new year, EMC will push cloud curriculum into colleges

to prepare a workorce that can support Big Data, Burton says.

EMC proposes creating data science as a major in select col-

leges that will lead to a degree similar to the computer science

degree. This will help respond to a need and develop advocacy

or EMCs vision in the corporate world, he says.

The company also has been working with service providers to

develop cloud inrastructure that is compatible with the same

types o inrastructures being built privately. That way the pro-

viders can oer up services that businesses can buy to create

hybrid clouds that oer better costs and fexibility, he says.

EMC already promotes cloud administrator and cloud architect

certications or current IT workers. There are 1,200 certied

cloud architects now who bring knowledge about the inrastruc-

ture to their workplaces. As IT departments become more cloud

savvy, adoption o cloud services will increase, he says.

Once IT sta is amiliar with the practicalities o cloud and

views it as a career opportunity, their ears that it threatens

their jobs will ade. It will become an unemotional economic

decision, and use o cloud will be managed to a service level.

There wont be tur wars over who will build it and whether

jobs will be lost, he says.

IT departments will be run as service providers with a

catalog o services needed or applications to run. They will be

able to set a price or the cost o each application because IT


9/11




INSIDERNwkW

will be more transparent. This would

support chargeback to business

units or services they consume. And

i a service provider oers the same

service or a set price, IT will be able

to say whether that is a good deal,

Burton says.

As IT looks at its application port-

olio and manages or costs versus

business value, the line between

what can be trusted to the public

cloud will move, with more applica-

tions being trusted to public clouds,

he says.

EMC and its virtualization partner,

VMware, are working with 30 to 40

reputable providers including AT&T,

Rackspace, SingTel and Verizon to

develop cloud services, Burton says.

I businesses and service providers

use similar architectures, it becomes

easier or businesses to move appli-

cations between private and public

clouds as needed.

With this type o transparency,

it becomes possible to manage

or cost, he says. Large service

providers are working with EMC to

do workload classication and deter-

mine which applications should be

handled in public vs. private clouds.Big Data poses other challenges.

Analytics is important, and EMC is

talking to service providers to deliver

analytics as a service.

For example, in conjunction with

VMware, EMC has built a high-

perormance nancial services cloud

or the New York Stock Exchange

that includes storage or low-latency

trading applications. The network was

relatively idle ater the trading day so

it is being used to do backup at night

or nancial customers and crunch

data about the days trading andpush it to traders so they can use it

to prepare or the next day. Number

crunching is table stakes that every-

one in the eld does, but this enables

doing it or less, Burton says.

Other similar niche cases will

result in other unlikely service pro-

viders emerging to support unlikely

use cases, he says.

C, cnzn, f it cn n 2012

By Ann BednArz, network world,

deC. 2, 2011

IT budgets and responsibilities are

moving out o the control o IT

departments and into the hands o

others, thanks to trends such as con-

sumerization and cloud computing,

Gartner says in its vision or 2012 and the

coming years.

That means, to be successul, IT organiza-

tions will have to excel at relationship man-

agement and be adept at coordinating more

widely distributed activities, according to

Daryl Plummer, managing vice president and

Gartner ellow.

As users take more control o the devices

they will use, business managers are taking

more control o the budgets IT organizations

have watched shit over the last ew years,

Plummer said in a statement. The IT orga-

nization o the uture must coordinate those

who have the money, those who deliver the

services, those who secure the data, and those

consumers who demand to set their own pace

or use o IT.IT departments need to adapt now or be

swept aside, Plummer warned.

With that in mind, here are Gartners top 11

predictions or 2012:

1. Low-cost cloud services will canni-balize up to 15% o top outsourcingplayers revenue by 2015.

Just as low-cost airlines disrupted the

transportation industry, the projected $1

trillion IT services market is acing urther

disruption rom industrialized low-cost IT

services (ILCS), which Gartner describes as

an emerging market orce that will alter thecommon perceptions o pricing and value o

IT services. Vendors will need to invest in

and adopt a new cloud-based, industrialized

services strategy, the research rm says.

2. The investment bubble will burstor consumer social networks in 2013,and or enterprise social sotwarecompanies in 2014.

In the consumer social network space,

theres a large crop o vendors with

overlapping eatures competing or a nite

audience. In the enterprise market, small

vendors are struggling to grow, consolida-

tion is imminent, and big players such as

Microsot, IBM, Oracle, Google and VMware

are muscling in on the action, Gartner says.

While substantial excitement will be raised

by private rms going public, valuations o

smaller independent vendors will diminish

as recognition sets in that the opportunities

or market dierentiation and ast growth

has eroded.

3. At least 50% o enterprise emailusers will rely primarily on a browser,tablet or mobile client instead o adesktop client by 2016.

As the options or email clients continue

to grow, the need or mobile device manage-

ment platorms will soar and suppliers will

be pressured to support more collaboration

services, including instant messaging, Web

conerencing, social networking and shared

workspaces, Gartner predicts.

4. Mobile application developmentprojects targeting smartphones andtablets will outnumber native PC proj-ects by a ratio o 4-to-1 by 2015.

Smartphones and tablets represent more

than 90 percent o the new net growth in

device adoption or the coming our years,

and increasing application platorm capabil-

ity across all classes o mobile phones is spur-

ring a new rontier o innovation, particularly

where mobile capabilities can be integrated

with location, presence and social inorma-

tion to enhance the useulness, Gartner says.

5. 40% o enterprises will make prooo independent security testing a pre-condition or using any type o cloudservice by 2016.

Third-party testers wont be the only way

or enterprises to evaluate cloud services or

their security capabilities. Inspectors certi-

cations will become a viable alternative or

complement to third-party testing, Gartner

says. This means that instead o request-

ing that a third-party security vendor con-

duct testing on the enterprises behal, the
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INSIDERNwkW

enterprise will be satised by a cloud provid-

ers certicate stating that a reputable third-

party security vendor has already tested itsapplications.

6. More than 50% o Global 1000companies will have stored customer-sensitive data in the public cloud byyear-end 2016.

Under pressure to reduce costs and oper-

ate more eciently, more than 20% o orga-

nizations are already selectively storing

customer-sensitive data in a hybrid cloud

environment, Gartner says.

7. 35% o enterprise IT expendituresor most organizations will be man-aged outside the IT departmentsbudget by 2015.

Business managers and individual employ-

ees are demanding more control over the IT

expenditures related to their jobs. CIOs will

see some o their current budget simply real-

located to other areas o the business. In other

cases, IT projects will be redened as busi-

ness projects with line-o-business managers

in control, Gartner predicts.

8. 20% o Asia-sourced inishedgoods and assemblies consumed in

the U.S. will shit to the Americas by2015.

Many companies that serve the U.S. market

will shit their sources o supply rom Asia

to the Americas, including Latin America,

Canada and the U.S., thanks to political, envi-

ronmental, economic and supply chain risks,

Gartner says. Except in cases where there is

a unique manuacturing process or product

intellectual property, most products are can-

didates to be relocated.

9. The fnancial impact o cybercrimewill grow 10% per year through 2016,

due to the continuing discovery onew vulnerabilities.

Growth in consumerization and cloud com-

puting will lead to the introduction o new

sotware vulnerabilities and attack methods

by inancially motivated hackers, Gartner

warns. The combination o new vulnerabili-

ties and more targeted attacks will lead to con-

tinued growth in bottom-line nancial impact

because o successul cyber attacks.

10. The prices or 80% o cloud services

will include a global energy surcharge by

2015.

Some cloud data center operators alreadyinclude an energy surcharge in their pricing

package, and Gartner expects to see more

providers ollow suit. Business and IT leaders

should be prepared to see it included in uture

cloud service contracts.

11. More than 85% o Fortune 500 organiza-

tions will ail to eectively exploit big data or

competitive advantage through 2015.

Most organizations are in no shape to

handle the technical and management chal-

lenges posed by big data, Gartner says. Col-lecting and analyzing the data is not enough

-- it must be presented in a timely ashion so

that decisions are made as a direct conse-

quence that have a material impact on the

productivity, proitability or eiciency o

the organization. As a result, most wont be

able to exploit available data or competitive

advantage. n

pn f c

f c cnBy BoB Violino, Computerworld,

deC. 5, 2011

Most experts agree: The cloud

is moving past the hype

stage and starting to deliver

tangible benets, primar-

ily increased fexibility and

agility.

But moving to the cloud can also mean

added costs, some o which are unexpected,

according to IT executives whose organiza-

tions have implemented or are consideringcloud services.

While these costs wouldnt necessarily

prevent companies rom getting real business

value out o cloud computing, they could have

an impact on the overall cost-benet analysis

o cloud services.

Moving and Storing Data

It can cost tens o thousands o dollars per

year to move large volumes o data to public

cloud services and to store that data or long

periods o time. Many companies might not be

aware o the expenses involved.

A one-time move can [cost] thousands odollars, says Hernan Alvarez, senior direc-

tor o IT and operations at WhitePages Inc., a

Seattle-based company that provides online

contact inormation or more than 200 mil-

lion people and 15 million businesses.

Network bandwidth accounts or much

o the cost o moving data: Cloud providers

might charge upload and download ees.

And even though data and systems are being

hosted o-site, there are internal labor costs.

People think there are no labor costs [with

the cloud], but as you scale up [to] handle

workload, theres a complexity with manag-

ing large numbers o cloud instances, just like

managing a large number o servers, Alva-

rez says. Another big cost is or long-term data

storage in the cloud. When you consider the

data growth rates over the next three years,

the lie-cycle cost o data can be really high,

Alvarez says. You continue to pay or that

every month when data is stored in the cloud.

But these costs are only unexpected i you

dont ully comprehend the cloud model, he

says. I you think about CPUs, capacity andstorage [needs] and chart that over time, you

can get a pretty good handle on what the costs

are and i you can do it more cost-eectively

internally.

WhitePages considered using the cloud or

data backup, but ater extensively evaluat-

ing eight vendors, the company determined

it would be too expensive -- as much as three

to our times what it would cost to keep data

internally, Alvarez says. So the company

opted to handle long-term data storage on-

site, in its private cloud.

In general, though, using public cloud

computing or purposes other than storageeliminates the need to deploy and maintain

applications internally. WhitePages has been

using public cloud services or about two

years and now uses 11 cloud-based applica-

tions rom Salesorce.com, SuccessFactors,

ADP, WebEx, Yammer and other providers.

This has led to savings that greatly outweigh

any o the unexpected costs, Alvarez says.

Integrating Apps From Multiple Vendors

Pacic Coast Building Products wants to
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INSIDERNwkW

start using cloud computing in a big way and

has evaluated services rom several vendors.

But the Rancho Cordova, Cali.-based pro-vider o goods and services to the construc-

tion industry has limited its cloud usage so

ar because the economics are not quite there

yet, says CIO Mike ODell.

Two reasons or this are the diculty o

integrating sotware rom disparate vendors

in the cloud, and the act that Pacic Coast

would incur added costs i it tried to handle

the integration on its own.

For example, the company uses Microsot

Exchange or email and Ciscos Unity Unied

Messaging or voice mail, and its interested

in using both o those applications as cloud

services. Integration between [Exchange

and Unity] in the cloud, at least the last time

we looked, wasnt there, ODell says.

Without integration, users wouldnt have

some o the capabilities they have now, such

as automatic deletion o voice-mail messages

on their phones when they receive the mes-

sages via email.

The same sorts o integration challenges

exist with larger and more complex applica-

tions, such as ERP, ODell says.

For example, or us to put [SAP] in the

cloud means wed have to give up eatures or

spend a lot o money on integration, he says.

Maybe its just a matter o immature tech-

nology, but the integration side is where thehidden costs are. I you dont look at this right

out o the gate, you might not be as happy with

the economics at the end as you thought you

would be.

Testing Software

The need to test sotware beore migrat-

ing to the cloud can also result in unoreseen

costs.

We bumped into some expense that we

did not expect or testing and debugging a

vendor app that had not been run in a cloud

conguration beore, says Bill Thirsk, vice

president o IT and CIO at Marist College inPoughkeepsie, N.Y.

The college was moving a large-scale ERP

system onto a private cloud, using servers that

the vendor hadnt yet approved. Marist uses

its private cloud to provide online services

such as registration, billing inquiries and

payments to students, aculty and research

organizations.

Thirsk says 99% o the colleges ERP

migration activities went very smoothly,

and overall we saved hundreds o thousands

o dollars by using a cloud conguration. But,

he adds, stabilizing the system within a cloud

that already supported 900 virtualized serv-ers gave us quite a challenge.

The added expense was to untangle the

maze o what versions [o] the operating

systems and databases would work, Thirsk

says. It was [a] matter o changing some

code. It took some time and eort to gure out

exactly what lines needed to be changed.

Free Cloud Pilots Can Be Costly

Be aware that ree pilot programs or cloud

services can quickly turn into expenses.

Many providers oer ree pilots, with vari-

ous approaches about when these ree pilots

turn -- automatically -- into paid services,

says Frank Ridder, an analyst at research rm

Gartner. Some pilot schemes are very short.

Beore undertaking any pilot program,

organizations should negotiate all contract

terms and discounts that are due i the pilot is

successul, Ridder says.

Setup costs are another area to look out or.

Clients oten get attracted by cheap ongoing

[service] prices, and do not see the sometimes

high [transition and integration costs], Rid-

der says. For a service like email, he cautions,

these costs can easily be $10 to $30 per seat.

Hidden costs can also crop up i applica-

tions arent primed to take ull advantage o

the capabilities o cloud computing.We made the assumption that the ERP

programming was sophisticated enough to

take advantage o all the processors, memory,

caches, storage devices and network connec-

tions that the cloud conguration oered,

Thirsk says. But it wasnt, and revising the

sotware code required a considerable

amount o application developer and sys-

tems programmer time. We have seen a 30%

increase in perormance, but it wasnt ree,

he says.

Rent and Utilities

IT executives who move systems to thecloud might encounter another unexpected

cost i they suddenly nd themselves pay-

ing expenses that wouldnt normally be their

responsibility.

There are, o course, many costs associ-

ated with hosting a system internally, but not

all o them, like power and rent, are paid out

o my IT budget, says Jonathan Alboum, CIO

at the U.S. Department o Agricultures Food

and Nutrition Service (FNS). With the cloud,

these basic inrastructure charges are baked

into the overall cost, so Im now paying or

some things that previously didnt come out

o my IT budget.Since the summer o 2010, the FNS has

been using an Amazon.com cloud service to

host an application thats oered through the

agencys Supplemental Nutrition Assistance

Program (SNAP), which provides the benets

that used to be known as ood stamps.

The tool, called the SNAP Retailer Loca-

tor, provides an online map that helps people

nd retailers that accept SNAP debit cards.

The FNS decided to put the application in the

cloud because that setup allowed or a quick

launch and was highly scalable, among other

reasons.

Since hes using a cloud-based service,

Alboum has to pay new monthly costs and

take a new approach to budgeting. Overall,

[the cloud] is very manageable and likely

results in overall lower costs or the govern-

ment, he says. But it is dierent rom what

weve traditionally experienced.

Its not a matter o the cloud service cost-

ing more than in-house hosting. I think o

this as a cash-fow issue, Alboum explains.

I Im going to pay monthly costs, I need to

have available budget to cover those costs at

the time I incur them. In the more traditional

model, I would purchase hardware and asso-

ciated services in a lump sum. The new model

is likely less expensive, but requires a changeto budgeting practices.

Much about the cloud is still relatively new,

and experts say organizations evaluating

cloud services need to look at both the costs

and potential benets. In a report on cloud

services in April 2011, Gartner noted that

IT executives should take steps to manage

inherent risks and unexpected costs during

the cloud services revolution.

The cloud model is immature and raught

with potential hazards, says Gartner analyst

Frank Ridder. Cloud computing is driving

discontinuity that introduces exciting oppor-

tunities and costly challenges. Organiza-tions need to understand these changes and

develop realistic cloud sourcing strategies

and contracts that can reduce risk.

The cloud sourcing lie cycle includes our

main elements: sourcing strategy, vendor

selection, contracting, and management and

governance, says Ridder, adding, The lie

cycle is a critical area to plan and manage,

regardless o whether organizations source

their IT services through internal or external

resources. n

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