Is Private Cloud Right for Your Organization?

THE AGILE IT PLATFORM

Is Private Cloud Right for Your Organization?A 5-Step Litmus Test

Dave RobertsVice President, [email protected] Twitter: @servicemeshPersonal Twitter: @sandhillstrat

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Who is ServiceMesh? Provider of Agile IT governance, security and lifecycle management software and services

for Global 2000 clients Customers include some of the world’s largest and most sophisticated companies in:

Financial services Health care Consumer Other IT-intensive industries

Global presence with headquarters in Los Angeles and offices in Austin, London, New York, Sydney, and Washington D.C.

3X revenue growth in 20103rd consecutive year of profitability

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“I Heard There’s No Such Thing as Private Cloud”

• Some large cloud service providers want to force the world into a one-size-fits-all, public cloud model.

• Anything that challenges that public cloud world-view must be attacked.• FACT: Every G2000 enterprise that ServiceMesh is working with is building

private clouds.• FACT: The TM Forum’s Enterprise Cloud Leadership Council (ECLC) has defined

requirements and a working group that encompasses private cloud (enterprise-grade IaaS).

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The World is Multi-Dimensional

Excess Capacity Sellback

AWS EC2

Internal ITor

Service ProviderSavvis

Internal External

Private

Public

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Private vs. Virtual Private

• Public cloud vendors are retrenching and offering “virtual private cloud”

• Characteristics– Shared infrastructure– Private access via VPN– Rich networking functionality

• Private IP address space makes it appear as part of the enterprise data center

• Question: Why would they do such a thing if private cloud didn’t exist?

• Answer: Because enterprises are demanding more than public clouds. But they want to leverage the infrastructure across multiple customers for higher efficiency.

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Hybrid Clouds Enable Optimization

Internal Private Cloud External Public Cloud

Virtual desktops

(Day)

Dev and test environments

Grid nodes (Day)

Optimize workload placement and scheduleEnable portability across clouds Align best fit providers to unique needsDrive price arbitrage between providers

Grid nodes (Night) Dev and test

environments

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1 Do you have specific security requirements?

• Data in transit• Data at rest• Data destruction requirements• Audit requirements• Regulated industry

Private Cloud Litmus Test

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2 Are you of sufficient scale?

• Doesn’t make sense to build an optimized private cloud if you’re small

• But don’t underestimate yourself• If you have 500 workloads or more, It

might make sense to build a private cloud

Private Cloud Litmus Test

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3 Do you have a reasonable fraction of dynamic workloads?

• If your workloads are largely static, then you might be better off with traditional server or virtualization solutions

• You might still want to outsource in a traditional managed hosting model

• Or go hybrid here:“Buy the base, rent the peak”

Private Cloud Litmus Test

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4 Can you deal with the organizational dynamics associated with the effort?

• Building a private cloud is not simply a matter of purchasing and assembling technology

• Shifting to a cloud operating model will require changes to processes and job roles

• You’ll need sufficient top-down support to effect lasting change

Private Cloud Litmus Test

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5 Do you have special requirements?

• Predictable outcomes• Reserved capacity• Known performance (CPU, disk, network)• Known latencies

Private Cloud Litmus Test

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Basic Private Cloud Architecture Stack

Automation

Hypervisor Private CloudPodCPU NetworkStorage

External Public Cloud

Private Cloud Pod

Policy and Governance

Workflow

Billing

CloudAPI

Private Cloud Users

Security

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Pod Reference Implementation Infrastructure selection will vary based

on specific organizational needs to provide the optimal combination of performance, cost, and simplicity.

Look for a balanced design that delivers the right ratio of CPU, storage, and network bandwidth.

100 TB of raw storage capacity

and 500 GB of memory.

48 blades for a total of 576 cores. Standard memory config is 96 GB/blade, high end

config is 192 GB/blade.Two 10 Gbps switches, each with 480 Gbps of network bandwidth.

VM density: 1600 server workloads

per compute rack 6000 desktop workloads

per compute rack

Other reference implementation metrics and technical specs are available.

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The Need for BalanceCP

U • Want 1 – 2 GHz per VM

• Servers: 2 VMs per core

• VDI: 10 VMs per core

Stor

age • 100 GB – 500 GB

per VM• Server: 100 IOPS• VID: 30 IOPS M

emor

y • Server: 3 – 4 GB• VDI: 1 – 2 GB

Net

wor

king • 2 – 4 10GE ports

per blade

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Pod Reference Implementation

Based on published external cloud prices, financial analysis showed that the private cloud can cost up to 75% less than comparable external cloud offerings for a high-availability use-case.

End-to-end automation required only minutes to provision workload, auto-scale, and configure security for complex topologies, which normally would take days or weeks.

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Adopt a Cloud Operating Model

• Private cloud is not a product or technology you can simply buy and install– FAQ: “What’s the difference between virtualization and private cloud?”– Answer: Virtualization is a technology used to build private clouds, but clouds are

more about how you operate the technology and expose it to your users than the technologies themselves

• To extract the full advantage, you’ll need to run your internal private cloud like a (mini) service provider

– That means you’ll have to move from your traditional IT operating model to a cloud operating model

• To implement a cloud operating model, you’ll need to:– Rework processes and procedures– Define internal SKUs for your users– Create SLAs– Create internal pricing

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Creating Internal Private Cloud SKUs

Aggregate Pod Capacity

SKU Capacity

SKU Cost

Internal Markup

Private Cloud SKU Price Don’t forget this!Use it to fund maintenance,

upgrades, continual development, and

support.

Think like a service provider. Run it like a

business!

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Understanding Contestability

• Explicit Goal: Make your private cloud earn its keep.

• To do this, you need to seek opportunities for “contestability”• You want competition between your own private offering and others• Other offerings might be other internal private clouds!

• Don’t create a private cloud and run it poorly!• Don’t waste money on something that isn’t competitive• Don’t settle for poor service

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Private Cloud Results

1 25 500

5

10

15

20

25Provisioning Time*

Min

utes

Number of simultaneous server instances provisioned

Deploy Fast: Scale Faster:

* Reference implementation test results, Nov 2010

Provisioning with hardware procurement: 12-18 weeks

Provisioning with private cloud: 4 minutes

Self-service portal

Automated policy enforcement

Start using it

Hardware requisition

Procurement approval

Hardware arrives

Rack in data center

Setup platform/ application

Start using it

Provisioning with virtualization only: 3-6 weeks

VM request

IT approval

Provision VM and configure

Start using it