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Envisioning the Cloud:The Next Computing Paradigm and
itsImplications for Technology Policy
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Google DC TalksThe Newseum555 Pennsylvania AvenueWashington,
DC
Jeffrey F. Rayport & Andrew HeywardMarketspace LLCA Monitor
Group CompanyMarch 20, 2009
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Overview
Understanding the Cloud
Benefits of the Cloud
Enabling the Cloud
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Every dozen or so years, a revolution changes the way we
usecomputers. Huge mainframes in the 1960s, minicomputers in
the1970s, personal computers in the 1980s, cell phones and
smartphonesin the last decade, and now the emergence of cloud
computing.
Government and the Cloud
Concluding Thoughts
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Seeding the Cloud
Storage Connection SpeedProcessing Power
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Mark Kryder Andy GroveGordon E. Moore
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Defining the Cloud
Cloud computing represents a new way to deploy computing
technology to give usersthe ability to access, work on, share, and
store information using the Internet. The clouditself is a network
of data centers – each composed of many thousands of
computersworking together – that can perform the functions of
software on a personal or businesscomputer by providing users
access to powerful applications, platforms, and servicesdelivered
over the Internet.
Social Networks Photo Sharing
Online Music
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Smartphones
Online Video
Web-mail
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Layers of the Cloud
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Benefits of the Cloud
Founded in 1999 declaring the “end of software”
Offered cloud-based version of CRM software
Became first cloud-based service to generate $1 billion in
sales
AnytimeAnywhere
Access
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Sells “on demand” contract and proposal management systems
Built a prototype in a “couple of weekends” using
Salesforce’sForce.com platform – company profitable within nine
months
Focused on customer needs, not development or infrastructure
Specialization &Customization
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Benefits of the Cloud
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
newbusinesses with investments totaling $100 million
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Storage asUniversalService 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
completearchival content page by page in under 36 hours
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Benefits of the Cloud
ProcessingPower on
Demand
Provides web-based software for creating presentations
usingphotos and music uploaded to the web
Increased traffic to 750,000 from 5,000 a day after a
successfulFacebook marketing campaign
Added capacity on Amazon Web Services infrastructure at a cost
of10 cents per server hour plus related expenses
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Cost Savings
10 cents per server hour plus related expenses
Utilized Google Apps to provide Office-type productivity
softwarefor its workforce of over 16,000 people
Achieved estimated savings of $80 million by not building its
owndata center or hiring more engineers to manage it
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Enabling the Cloud
Open AccessUniversal Connectivity
“The point is that no one shouldbe denied access to
[onlineresources] because of who theyare…. So this is a fairness
issuemore than anything else.”
“There will be 499 million in-homeconsumer broadband
connectionsworldwide by 2012 – anextraordinary number, but
itrepresents only 25% of the
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In 2007, the United States ranked15th in theworld in broadband
penetration and 13th inoverall Internet connectivity
If the United States falls short in universalaccess, cloud
benefits will fall short, too
more than anything else.”
- Vint Cerf, Chief InternetEvangelist, Google
This raises complex issues that emerged inthe debate over “net
neutrality,” andpowerful commercial interests are at stake
Any barriers that restrict access to theInternet limit the
potential of the cloud
represents only 25% of theworld’s households.”
- Gartner Group
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Enabling the Cloud
Interoperability and User ChoiceReliability
“It is not just about being ‘alwayson’; it is this idea of
reliability. Ifthis is reliable, that’s a big thing. Ifit isn’t,
then what do we turn to?”
“If a customer doesn’t like ourservice, they can cancel.”
- Polly Sumner, President,
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Even best-known providers of cloudservices fail from time to
time – stiffeningresistance of IT departments
Service that comes close to 100 percentreliability is a
prerequisite for widespreadadoption of cloud computing
it isn’t, then what do we turn to?”
- Kevin Kelly, Founder, ExecutiveEditor, Wired Magazine
- Polly Sumner, President,Platform, Alliances, and
Services,Salesforce.com
As of now the major players operateproprietary cloud
infrastructures, withvarying degrees of open standards
If large providers move to dominate withproprietary clouds, it
will be difficult torealize the full potential of cloud
computing
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Enabling the Cloud
PrivacySecurity
“The best medicine isaccountability and transparency.”
- Dan Burton, Senior Vice
“If we give this data to a cloudcomputing company, and there isa
security breach or if thatcompany gets sold, how do weaddress that?
I am accountable.”
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In the United States, the law treats personalinformation
differently once it’s handedover to a third party
Cloud providers must protect user datafrom unauthorized
government access andensure integrity of commercial use
- Dan Burton, Senior VicePresident of Global PublicPolicy,
Salesforce.com
Notion of making a third party responsiblefor keeping data safe
continues to provokedebates in corporate IT departments
Cloud providers must demonstrate thatdata is safer than in
current systems
- Carolyn Lawson, ChiefInformation Officer, CaliforniaPublic
Utilities Commission
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Enabling the Cloud
SustainabilityEconomic Value
“The classic challenge ofaddressing a new market is to doit at a
lower cost, make thingsavailable where they could notpreviously be
delivered, orremove complexity. The cloud
In 2006, data centers consumed1.5% of all electricity used in
theUnited States.
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The cloud is creating new businessopportunities and new markets
by offeringhigh-end computing at lower cost
The real test will be for the cloud to reducecosts, increase
productivity, and enablefaster innovation at the enterprise
level
remove complexity. The cloudcan address all three of those.”
- Russ Daniels, VP and CTO ofCloud Services Strategy, HP
EPA estimates that by 2011, consolidatingcomputing into data
centers could reducecarbon dioxide emissions by 47M metric tons
As enterprises come under increasingpressure to go “green,”
sustainability iscritical to the viability of cloud computing
- Environmental ProtectionAgency
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Government and the Cloud
Who Decides?
MarketPolicy
Universal Connectivity
Institutional Adoption
Cybercrime Enforcement
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Privacy
Sustainability
Security
Reliability
Interoperability
Economic Value
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Cloud Ecosystem
Device ManufacturersISPsMedia CompaniesData Centers
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Living with the Cloud
Netbooks
Electronic Readers
Set-top Boxes
Music PlayersMedical Devices
Retail Touchpoints
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Electronic Readers
Consumer Appliances
Video GameSystems
Transportation Vehicles
Home Automation
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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-asserteconomic and technology leadership on a global stage
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economic and technology leadership on a global stage
What government can do best is clear the road forthe cloud’s
expansion, not pave it