Clouds in Emerging Markets Clouds in Emerging Markets Naresh K. Sehgal, PhD, MBA Naresh K. Sehgal, PhD, MBA Lead SW Architect Lead SW Architect Enterprise Platforms and Services Division Enterprise Platforms and Services Division Intel Corp, Bangalore Intel Corp, Bangalore
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Clouds in Emerging MarketsClouds in Emerging Markets
Naresh K. Sehgal, PhD, MBANaresh K. Sehgal, PhD, MBALead SW ArchitectLead SW Architect
Enterprise Platforms and Services DivisionEnterprise Platforms and Services DivisionIntel Corp, BangaloreIntel Corp, Bangalore
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ContextContext
IT Managers want more Efficiency andIT Managers want more Efficiency andCustomers need a higher value to restart spending…Customers need a higher value to restart spending…
•• Dark clouds are gathering on the horizonDark clouds are gathering on the horizon–– World’s economies are slowing downWorld’s economies are slowing down
•• Signs of layoffs, delayed investments, recession…Signs of layoffs, delayed investments, recession…
–– Future seems uncertainFuture seems uncertain•• IDC server stats from Q3’08IDC server stats from Q3’08
–– Server revenue down by 5.2 percent YOY at $12.6 billionServer revenue down by 5.2 percent YOY at $12.6 billion–– Server unit shipment growth up 2.8 percent YOYServer unit shipment growth up 2.8 percent YOY
•• Customers are demanding more computing/$Customers are demanding more computing/$•• Products and services we’ve going in will not get us out ofProducts and services we’ve going in will not get us out of •• New Solutions are needed!!New Solutions are needed!!
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Profile of Intel Architecture (IA)Profile of Intel Architecture (IA)Server CustomersServer Customers
•• Buys 1Buys 1--10X Servers10X Servers
•• Lacks dedicatedLacks dedicatedonon--site IT supportsite IT support
•• Has dedicated onHas dedicated on--site IT supportsite IT support
•• Wants lowWants low--costcostsolutionssolutions
•• Needs lightNeeds lightweight toolsweight tools
SMBs and IPDC customers have similar needsSMBs and IPDC customers have similar needs
Bringing SMBs to Cloud will spur a new investment cycleBringing SMBs to Cloud will spur a new investment cycle
Managed Service Providers (MSP) are like a virtual DataManaged Service Providers (MSP) are like a virtual Data--centercenter
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SMBs Strength and ConcernsSMBs Strength and Concerns
•• SMBs form the bottom of businessSMBs form the bottom of businesspyramidpyramid–– Focused on local endFocused on local end--usersusers
–– Doctors, lawyers, accountants, restaurantsDoctors, lawyers, accountants, restaurantsand other SMBs with computing needsand other SMBs with computing needs
•• 11--9 Employees Small Businesses (SB) form9 Employees Small Businesses (SB) form2/32/3rdrd of the totalof the total MarketMarket
•• India has 7.8M SMBs, spentIndia has 7.8M SMBs, spent $8B$8B on ITon IT–– Of which, 3.9M are Small Businesses,Of which, 3.9M are Small Businesses,
spentspent $4.5B on IT$4.5B on IT andand $4.2B on Telecom$4.2B on Telecom
• But a low rate of Cloud adoption– Lack of Vertical Applications
• Domain specific SW in cloud
– Trust Issues• Data security and portability
– Lack of 24x7 internet connectivity• Bandwidth limitations, cost etc.
mediumBusiness100-999 employees
Small Business1-99 employees
21.3M PC only
4.4MPC + Network Access
702K
7.6MHave PC, Server
& Network access
Source: AMI SMB Global Forecast Model, AMIVertical Market Study
IT use by Emerging market SMBs ‘07
Emerging Market SMBs want onEmerging Market SMBs want on--site copy of Apps and Datasite copy of Apps and Data
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State of Cloud ComputingState of Cloud Computing•• Evolving from endEvolving from end--user services (search, email, social networking) to support Missionuser services (search, email, social networking) to support Mission
Critical business and commercial grade applicationsCritical business and commercial grade applications–– Some are based entirely out of clouds, e.g., Salesforce.comSome are based entirely out of clouds, e.g., Salesforce.com–– Many companies want their own private enterprise cloudsMany companies want their own private enterprise clouds
•• Challenges include Mass deployment, Health monitoring and Power management etc.Challenges include Mass deployment, Health monitoring and Power management etc.
Source: http://www.b-eye-network.com/view/8702
•• Coming years will see newComing years will see newemerging trendsemerging trends
–– Different from the grid computing,Different from the grid computing,software as a service (SaaS) orsoftware as a service (SaaS) orsimple web hostingsimple web hosting
•• Trend #1: Abstraction ofTrend #1: Abstraction ofnetwork, storage, database,network, storage, database,security and computingsecurity and computinginfrastructureinfrastructure
–– Offering image of onOffering image of on--demand,demand,virtual data center with flexibilityvirtual data center with flexibilityimplied in scalability and agility;implied in scalability and agility;
•• Trend #2: A pricing model thatTrend #2: A pricing model thatis retail in its conceptionis retail in its conception ––
–– Pennies per gigabyte, massive CPUPennies per gigabyte, massive CPUcycles and bandwidth; andcycles and bandwidth; and
•• Trend #3: SLAs forTrend #3: SLAs for–– Data persistence, system reliability,Data persistence, system reliability,
redundancy, security and businessredundancy, security and businesscontinuitycontinuity
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Intel in Cloud ComputingIntel in Cloud Computing•• 75% of TCO (Total Cost of Ownership) is for HW and power/cooling75% of TCO (Total Cost of Ownership) is for HW and power/cooling
–– Use energy efficient processorsUse energy efficient processors•• Intel processors are ~30% more efficient than competitionIntel processors are ~30% more efficient than competition
–– Use HW virtualization technology for Elastic ComputingUse HW virtualization technology for Elastic Computing•• Intel’s HW Virtualization gives 2X boostIntel’s HW Virtualization gives 2X boost more VMs / servermore VMs / server
•• Optimize at platform, software and dataOptimize at platform, software and data--center levelscenter levels–– Focus on DC management and cloud services at the System levelFocus on DC management and cloud services at the System level
•• DCMI spec for efficient server managementDCMI spec for efficient server management–– Node Manager for server and rack levels, 20Node Manager for server and rack levels, 20--30% savings potential30% savings potential
•• Dynamic adjustment of power states based on loadDynamic adjustment of power states based on load
•• Need software for largeNeed software for large--scale cloudsscale clouds–– Establish an internet scale global test bed for Cloud researchEstablish an internet scale global test bed for Cloud research
•• A new Open Cirrus initiative with HP and YahooA new Open Cirrus initiative with HP and Yahoo
Intel Architecture offers ideal platforms for cloud computingIntel Architecture offers ideal platforms for cloud computing
Extending Cloud to SMBsExtending Cloud to SMBsAn onAn on--premise appliance for service delivery?premise appliance for service delivery?
Internet
Connection
•• Extension for cloud based servicesExtension for cloud based services -- Range of applications possibleRange of applications possible•• Remote Serviced and Managed from the cloudRemote Serviced and Managed from the cloud•• Trust and security managed with TPMTrust and security managed with TPM
CHALLENGESCHALLENGES –– WHERE DOES IT WORK/DOESN’T WORK?WHERE DOES IT WORK/DOESN’T WORK?
Remote AppsHosting, patching,monitoring, Databackup etc.
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OnOn--Premise Appliance for Service DeliveryPremise Appliance for Service DeliveryRacks
Racks
ModelModel Cloud Data CenterCloud Data Center Distributed OnDistributed On--Premise AppliancePremise Appliance
WorkloadsWorkloads Scales for Large workloads Probably sufficient for small workloads
2Optimize technology for large-scale clouds: datacenter,software & platforms
Deliver the energy efficiencyand virtualization technologydemanded by all clouds
Intel is driving efficiency, performance, andIntel is driving efficiency, performance, andnew capabilities throughout the stacknew capabilities throughout the stack
3Enable MID devices for Cloudaccess on the move
BackupBackup
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More breakthroughs RequiredMore breakthroughs Required1.1. Network LatencyNetwork Latency
–– High bandwidth vs. High LatencyHigh bandwidth vs. High Latency