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Bringing the Cloud Down to Earth

Nicholas Carr INFO Summit 2010

Burden!s wheel: 1850

Source: Smithsonian Institution

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Burden!s wheel: 1920

Source: Smithsonian Institution

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Westinghouse!s utility

Source: Public Domain

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Enterprise systems: 1900

Source: Public Domain

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Embrace of utility power


Source of electricity (%)
utility supply

private supply

Source: Carr, The Big Switch

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Now it!s computing!s turn

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Corporate data center: 1900

Source: Public Domain

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Corporate data center: 1960

Source: Vermont State Archives

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Corporate data center: 1990

Source: DailyLaugh.com

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Inefciencies of fragmentation

Server capacity

Storage capacity

Labor
Source: Carr, Big Switch

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The IT tax
IT as % of capital equipment budget

Source: US Labor Bureau

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Corporate data center: 2010

Source: Toshihiko Katsuda

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Cloud computing is accepted


use of cloud services Rejecting 1% Discussing 17%

Using 52%

Implementing 18%
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Testing 13%

Data: Survey of 250 international companies (median: 75k employees), July 2009, by F5 Networks

But adoption remains limited


use of cloud servers Interested; no current plans 44%

Not interested 41%

Using 3% Planning to use 9% Don!t know 4%


Data: Survey of 679 enterprises, Q3 2009, by Forrester

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Why now?

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A tale of two laws


Computing Power (Moore!s Law)

Bandwidth (Grove!s Law)

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When the network becomes as fast as the processor, the computer hollows out and spreads across the network. Eric Schmidt, 1993

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Obstacles are real (but diminishing)


! Capacity ! Security (data and infrastructure) ! Reliability ! Connectivity ! Standards (data portability) ! Fear of change
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Consumers have made the switch

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Businesses are following

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Early patterns of adoption

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1. Cloud as model
private cloud

!Virtualized !Consolidated !Programmable !Automated !Green !In-house or hosted


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2. Cloud as supplement
new capabilities on the cheap

!Shovel-ready !Low risk !No capital outlay !No new staff !Particularly attractive in bad economy

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3. Cloud as replacement
capacity = demand

Resources

Capacity Demand

Time
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3. Cloud as replacement
capacity = demand

Resources

Capacity Demand

Time
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4. Cloud as democratizer
everyone!s an IT guy

New York Times archives case 4TB of TIFF les 11 million PDFs

Solution: Amazon EC2 1 guy, 100 virtual machines < 24 hours Price: $240.00
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5. Cloud as revolution
alignment at last?

Infrastructure

Isolation

Applications Data Users

Sharing

For IT: new challenges, new choices, new roles

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Facebooking the corporation

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A classic disruptive technology


Sustaining technology
Performance demanded at high end of market

Performance

Performance demanded at low end of market

Disruptive technology

Time

Source: Clayton Christensen, Innovators Dilemma

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Disruptor or Disrupted ?

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Thank you!
www.nicholasgcarr.com

THE BIG SWITCH

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