Showing posts with label paas. Show all posts
Showing posts with label paas. Show all posts

Wednesday, August 12, 2009

Panel Discussion: Is Cloud Computing More or Less Secure than On-Premises IT?

Transcript of a sponsored BriefingsDirect podcast on the current state of cloud security and what's needed in the way of standards and practices. Recorded live at The Open Group's 23rd Enterprise Architecture Practitioners Conference and 3rd Security Practitioners Conference in Toronto.

Listen to the podcast. Download the podcast. Find it on iTunes/iPod and Podcast.com. Sponsor: The Open Group.

Dana Gardner: Hi, this is Dana Gardner, principal analyst at Interarbor Solutions, and you’re listening to BriefingsDirect.

We now welcome our listeners to a sponsored podcast discussion coming to you from The Open Group’s 23rd Enterprise Architecture Practitioners Conference and associated Security Practitioners Conference in Toronto. We are here in the week of July 20, 2009.

Our topic for this podcast, part of a series on events and other major topics at the conference, centers on cloud computing security. Much of the cloud security debate revolves around perceptions. ... It's about seeing the glass as half-full. Perhaps it's only a matter of proper practices and means to overcome fear, caution, and reluctance to embrace successful cloud computing.

Or is the glass half empty -- that in order to ramp up to cloud computing use and practices, a number of potentially onerous and perilous security pitfalls will prove too difficult? Is it only a matter of time before a few high-profile cases nip the cloud security wannabees in the bud?

For sure, security in general takes on a different emphasis, as services are mixed and matched from a variety of internal and external sources.

So will applying conventional security approaches and best practices be enough for low-risk, high-reward, cloud computing adoption? Is there such a compelling cost and productivity benefit that cloud computing means that if you are late, you would be in a difficult position vis-à-vis your competitors or that your cost will be high?

Most importantly, how do companies know when they are prepared to begin adopting cloud practices without undo risks?

Here to help us better understand the perils and promises of adopting cloud approaches securely, we welcome our panel. With us we have Glenn Brunette, distinguished engineer and chief security architect at Sun Microsystems. He is also a founding member of the Cloud Security Alliance (CSA). Welcome, Glenn.

Glenn Brunette: Thank you, very much.

Gardner: We're also joined by Doug Howard, chief strategy officer of Perimeter eSecurity, and president of USA.NET. Welcome, Doug.

Doug Howard: Thank you.

Gardner: We also welcome Chris Hoff, a technical adviser at the Cloud Security Alliance (CSA), and also director of Cloud and Virtualization Solutions at Cisco Systems. Welcome Chris.

Christopher Hoff: Hi, there.

Gardner: And Dr. Richard Reiner, CEO of Enomaly. Good to have you with us, Richard.

Dr. Richard Reiner: Good to be here.

Gardner: And lastly, we welcome Tim Grance, program manager for cyber and network security at the National Institute of Standards and Technology (NIST). Good to have you.

Tim Grance: Great to be here.

Clouds and security

Gardner: As I mentioned, the biggest hang-up people have, either in real terms or perceived terms, is security, and it's a wide-open question, because we could be talking about infrastructure, platform as a service (PaaS), data, or simply doing applications. All across the board people are applying the word "cloud." But I think for the intents and purposes of our discussion we want to look at what the enterprises are going to be doing. We have a crowd of architects with us.

Let me take my first question to you, Chris Hoff. When we talk about cloud and enterprise, are we talking about something that is fundamentally different in terms of securing it, versus what people are accustomed to do across their networks?

Hoff: That's a great question, actually. Again, it depends upon what you mean, and, unfortunately, we are going to probably say this a thousand times.

Gardner: Let's get the taxonomy over with.

Hoff: Yeah, what is cloud? Depending upon the application, you will have a set of practices that almost look identical to what you would use in non-cloud environments. In fact, with the CSA, the 15 domains of areas of focus are really best practices around what you should be doing to secure your assets in your business, no matter where you happen to be doing your computing.

That being said, there are certainly nuances and permutations of certain things and activities that we do or don't do currently in applications -- of moving your information applications to the cloud that, in some cases, are operational and, in some cases, behavioral, and, in some cases, technical.

You can dive in and slice and dice up and down the stack, but it's fair to say that, in many cases, what cloud has done and what virtualization has done to the enterprise is to act as a fantastic forcing function that's allowed us to put feedback pressure on the system to say, "Look, depending on what we are doing internally in our organizations, and the care and feeding of our infrastructure applications and information, now that I am being asked to move my content applications information outside my normal comfort zone of the firewall and my policies and my ability to implement what I normally do, I really need to get a better handle on things."

This is where we're starting to see people spin up things they weren't doing before or weren't doing with as much diligence before, and operationally changing the way they behave and how they assess and classify what they do and why.

Gardner: Richard Reiner, tell me a little bit about what the pitfalls are. What makes this a little different in terms of the risks?

Hostile software

Reiner: It's an entirely different set of questions when you are talking about software as a service (SaaS) versus platform versus infrastructure. So, let me just answer for the infrastructure-as-a-service (IaaS) part of the story, which is where we play. We have a platform that does that.

Fundamentally, when you look at infrastructure-on-demand services, they are delivered by means of virtualization and, for most enterprises, probably a very large majority of enterprises, it's the first time that they have even considered, much less actually deployed, infrastructure of a nature that is simultaneously shared and virtual.

Shared means something hostile could be there alongside your workload as the customer, and virtual means that fundamentally it's a software-induced illusion. If something hostile in there can subvert one of the software layers, take control of it, or make it behave differently than what is expected, the customer's workload could find itself executing on a virtual server, running code on a virtual processor that is nothing short of hostile to it.

A virtual processor could be programmed, for example, to wait until secrets are decrypted from disk and then make off with the plain text. That's a fundamental new risk and it's going to require new controls.

Gardner: Glenn Brunette, perhaps another of way of posing this question is not whether the cloud is secured or not, but whether client-server architectures are secured or not? And, is the risk with cloud less than the risk with client-cerver? Is that fair?

Brunette: That's an interesting way to put it, for sure. To echo my fellow panelist's previous statements, a lot of it depends on how you look at cloud and what your definition is, whether you're dealing in a SaaS model, where you have a very specific well-defined interaction method, versus something, maybe IaaS, where you have a lot more freedom, and with it a lot more risk.

Is it more or less secured than client-server? I don't think so. I don't think it is either more or less secured. Ultimately, it comes down to the applications you want to run and the severity or criticality of these applications, whether you want to expose them in a shared virtualized infrastructure.

With respect to how these applications are managed, a lot of the traditional client-server applications tended to be siloed, and those siloed applications had problems for scalability and availability, which posed problems for providing continuity of service. So, I don't think they are necessarily better or worse than one another. Their issues are just little bit different.

Gardner: Doug Howard, maybe this is back to the future. There was a time when those things were centralized and they only went out through the interface to a green terminal. That had some advantages. Are we looking at similar advantages now with cloud computing, where you can control a single code base or you can manage only the amount of information you want to go across the wire, without risk of data being left on clients and all that difficulty of managing different application variations and platforms at the edge?

Things are different today

Howard: Clearly, if you look at where client-server was many years ago, as compared to where it is today, it's significantly different. The networks are different, the infrastructure is different, and the technology is different. So, the success rate of where we are today, compared to where we were 10 and 15 years ago trying the same exact thing, is going to be different.

At the end of the day, it's really about the client experience and, as you guys sitting in the audience are probably thinking right now, everything that we talk about starts with, "Well, it depends" and various other alternations to that. From your perspective, the first thing that you need to know is, "Am I going to be able to deliver a service the same way I deliver it today at minimum? Is the user experience going to be, at minimum, the same that I am delivering today?"

Because if I can't deliver, and it's a degradation of where my starting point is, then that will be a negative experience for the customers. Then, the next question is, obviously, is it secured as a business continuity? Are all those things and where that actual application resides completely transparent to the end user?

I'll give you a key example. One of the service suites that we offer is messaging. It's amazing how many times you walk into a large enterprise client, and they go, "Well, I'd like to see a demo of what the user experience of getting messaging services from a hosted or from a shared infrastructure is, compared to what it would look like in-house."

Well, open your Outlook client, because if it's different than what it would be in-house and out of house, we're starting at the wrong point. We shouldn't be having this conversation.

If you do it really well, it's great, because you have a systemic answer. If you don't, you get ugly really fast.

The starting point you need to really think about, as you go through this, is does it look like it did 10 years ago or 15 years ago? It doesn't really matter. The client experience today is going to be significantly different from what we tried 10 or 15 years ago.

Gardner: Tim Grance, it sounds like we have a balancing act, risks and rewards, penalty, security. It's not going to be all on one side, but you want to make the right choice and you want to get the rewards of the economic benefits, the control, the centralization, and, of course, you don't want to have to deal with a major security blow-up that gets a lot of bad publicity. How are you approaching this from that risk-rewards equation?

Grance: Anytime you do things at scale, it's like standards. If you do it really well, it's great, because you have a systemic answer. If you don't, you get ugly really fast. God and the devil both dwell in the details, depending on how well you do these things. But, it's hard elevating it as just another cold-hearted business decision you have to make.

If you aggregate enough demand in your enterprise or across your area of work, and you can yield enough dollars to put up for someone to bid on, people will address a lot of these security concerns -- I don't have a transparent security model -- I don't know exactly how you are protecting my data -- I don't know where you are putting your data.

If you give them a big enough target, you aggregate enough demand to make it attractive. You can drive the answers to all of these questions, but you do have to ask for the full set of business use cases to be addressed.

New business model

Gardner: Chris Hoff, back to you. We're really not only talking about a shift in the technology, in the delivery, and then evaluating the risks and rewards as result. We are also talking about a fundamentally different business model of how to acquire services, instead of a license model with a lot of upfront capital expenditures.

You might be able to examine certain aspects of what you do. Instead of having an overabundance of resources for a small peak period or occasional explosion of demand, you can meter this out and pay on a per-use basis, or perhaps even get subsidized by something like advertising or some other business model.

So, the rewards, when we compare and contrast the monetization and the costs, could be very lopsided. This is going to, I think, appeal to a lot of people, particularly in a recession. For those people who want to dive into this right away and take advantage of those big dollar savings, what do they first and foremost need to think about for protecting themselves and be secure in doing so?

Hoff: Previously, I talked about the forcing function of cloud as an intersection of the economy, where cost savings is a huge motivator from the perspective of economics. Extrapolating that a little bit further, the answer is really interesting, when you add the dimension of the consumerization of IT. What I mean by that is consumer-like experiences, leaking themselves into the enterprise, and, in some cases, vice-versa.

One of the interesting notions of how cloud computing alters the business case and use models really comes down to a lot of pressure combined with the economics today. Somebody, a CIO or a CEO, goes home and is able to fire up their Web browser, connect to a service we all know and love, get their email, enjoy a robust Internet experience that is pretty much seamless, and just works.

Then, they show up on Monday morning and they get the traditional, "That particular component is down. That doesn't work. This is intrusive. I've got 47,000 security controls that I don't understand. You keep asking for more money."

Trying to reconcile those two models is very interesting, because when it comes down to what

If you're a consumer and are 17 years old, your idea of security, privacy, confidentiality, access, and availability are very, very different than mine or somebody else's in the corporate environment.

you should look out for, in many cases, there is one other element that leaks into that and that's the generational question.

I've now taken your very simple question and made it multi-dimensional. But, if you're a consumer and are 17 years old, your idea of security, privacy, confidentiality, access, and availability are very, very different than mine or somebody else's in the corporate environment.

The model starts with understanding, first of all, who the consumer is, and how that applies to the scenario we're talking about, what type of information we're trafficking in, and how that ultimately affects and translates down to managing risk. Ultimately, the difficulty with all of that is that multi-dimensional mouthful, which I just came up with, is exactly what we have to face in the enterprise every day with every business decision when we talk about the cloud or moving a service or an application content to the cloud.

Once we get pass the definitional issues, the things you have to look at are to the point that was made previously. If my user experience isn't the same or isn't offset tremendously by cost, that's a problem. If my privacy and my compliance are not at par with what I have today, that's a problem.

We don't have a very good way today of assessing those gaps. That's the first thing I would look at -- understanding where you are, versus where you want to go in relation to the pressures we are facing to move our content and apps to the cloud.

Where's the sweet spot?

Gardner: For the next point, let's go to Glenn. Thinking about the whole of cloud benefits for those people who do want to get in, take advantage of some level of the productivity, but without a lot of risk, what's available? Would you say that application development is a place to start? Is it to look at data that might not be critical data and move it off of your servers? Where is this sweet spot, rather than waiting for the whole methodological approach to be sussed out in the cloud alliances and for the work groups to do their thing. Where can you go right away? What's the low-hanging fruit on this?

Brunette: There are actually a lot of different areas, depending on what your own business is and what you are interested in doing. Certainly, you see a lot of people doing initial development, also quality assurance and testing of applications using dummy data out in the cloud, assuming the applications themselves don't contain sensitive data in some way, such as a trading algorithm or something like that.

You also see cases where you have historical data, where it's no longer of interest, but you may want to use it for analytic purposes. There has been work done by some of the trading exchanges to make that data public, so people can perform an analysis on past historical trends in the market and could perhaps develop new trading algorithms and new things on their own.

In addition to that, you may find that there are cases where you are doing high-performance computing kinds of workloads that are non-sensitive. You could be, for example, doing video transcoding, movie-rendering, things like that. Again, you see people with open-source movies, and open-source songs and things like that. You could certainly put that out there.

Really, it's a wide-open field, and I've been focusing on compute. With storage, you see people

Unfortunately, there is no one answer, but the good news is there are quite a number of answers. There are a lot of opportunities, depending on what you are doing.

encrypting BLOBs and putting just their storage out there or making it available for content distribution, because of the widely available high bandwidth channels to the cloud storage provider.

Unfortunately, there is no one answer, but the good news is there are quite a number of answers. There are a lot of opportunities, depending on what you are doing.

Gardner: Let's flip that question. Richard Reiner, what are some areas you should back off from? What is not ready for prime time when it comes to secure, safe cloud computing?

Reiner: To try to give a good answer to that question, you've got to dig down one level to think about how our decisions about what can be deployed are made in the enterprise. What's the right way of doing that? There are any number of dimensions that come into play. There are concerns about availability, access, and interactive performance.

There are security concerns. Relative to the security concerns in the ideal enterprise mode of operation, there is some good systematic risk analysis to model the threats that might impinge upon this particular application and the data it processes, and then to assess the suitability of different environments for potential deployment of that stuff.

Questions on public clouds

There are a lot more question marks around today's generation of public-cloud services, generally speaking, than there are around the internal computing platforms that enterprises can use. So it's easier to answer those questions. It's not to say the answers are necessarily better or different, but the questions are easier to answer with respect to the internal systems, just because there are more decades of operating experience, there is more established audit practice, and there is a pretty good sense of what's going to be acceptable in one regulatory framework or another.

Trying to pull that together into an answer to the question, I guess what you could say is that the more of those unknowns arrive in conjunction with a particular application or a particular dataset that someone is considering deploying in the cloud, the harder it's going to be to actually do that.

Gardner: Tim Grance, same question. What would you really keep away from, in terms of network security and cyber security, when it comes to interest in the cloud?

Grance: Public facing content, collaboration with the public -- those are good things. Anything closer to the mission critical side, whether you want to outsource it or not, that's something you want to be a lot more careful with.

Would I put the Department of Defense's mission-critical apps? No, I wouldn't do that, because it's just not worth that effort and risk to even try to answer those questions. No one should take the truly core mission-critical things and put them out at this point in time. I'd even be nervous on the internal cloud, just because the dangers and the risks are large. What's the payoff is really the risk appetite question you have to answer.

Gardner: Doug Howard, data. Some data good, some data bad in the cloud. You guys are

You need to put what you are comfortable with in the cloud, and you need to be comfortable with whatever the infrastructure provider can step up with.

involved with trying to protect and manage a lot of mission-critical data. Do you have a certain metric that you would apply to deciding which datasets can go outside of your organization?

Howard: We're probably a little ahead of the marketplace in some areas, relative to mission-critical data in the cloud.

Just to give you a little bit of a review. we provide services to about 2,000 banks and credit unions. We do most of their core access into infrastructure. On a global basis, about 10,000 customers rely on us for messaging infrastructure and so forth. I would argue that for every one of those companies -- banks, large enterprise, so forth -- messaging, Internet, Web access is mission-critical to their enterprises. If that was to drop off for hours or for days, their infrastructure and their companies would come to a halt.

If you look at what can be put in the cloud, I wouldn't necessarily say mission-critical can't be placed in the cloud. I would probably alter that a little bit. You need to put what you are comfortable with in the cloud, and you need to be comfortable with whatever the infrastructure provider can step up with.

Generally speaking, the infrastructure providers that are providing services in the cloud are today pretty candid about what they can and can't do relative to reporting, governance, risk, and compliance. Those types of things are the questions that are going to define what can go into the cloud. The performance tends to be less of a concern, because everything is relative.

Everything is relative

Can you provide a global infrastructure? Can you provide high availability with a budget that you have today, compared to the cloud provider? A lot of times the answer to those questions is "no." So, everything is relative to what you can do yourself, as well.

Going back to that user experience. If you can get a higher user experience and you're comfortable with all the governance, risk, and compliance (GRC) and security elements, then ultimately you're better off putting those types of things in the cloud than trying to build it yourself on something that you know will not be able to deliver the user experience that you're trying to attain.

Gardner: A question from our audience comes in about federation. You're probably going to have both internal and external environments and aspects of business process and resources. How do you manage them in some concerted effort that works? This is probably not too different than how you manage integration and collaboration among different services internally. It's taking those services from a variety of different sources.

Let's go to Chris Hoff. This is really a governance question. Where is security, in terms of its maturity, when it comes to mixing and matching services, internal and external?

Hoff: Glenn and I were actually discussing some of this prior to the panel. The interesting thing that cropped up was about the effectiveness of compensating controls today. My friend, Gunnar Peterson, has this great chart, where he shows that it's a kind of matrix. He shows the innovation or development of programmatic capability over time and the advancement of programming languages way back to C and Java, etc.

On the second column he shows the security industry's response to each of these brand new

The level of collaboration really comes down today to the advancement of technology, which hasn't happened as far as we needed it to.

developments. The funny thing is, they're amazingly consistent, because you have the words SSL and firewall, SSL and firewall, SSL and firewall.

So, it may very well be a governance question today, but as the other sessions during the conference have pointed out quite glaringly, what we have settled for, what we have allowed ourselves to settle for, and the way in which we “collaborate” today means you have a firewall rule that says, "source, partner, destination, all my internal resources, protocols, whatever, action allow, and log."

The level of collaboration really comes down today to the advancement of technology, which hasn't happened as far as we needed it to. More importantly, as we extend into the cloud -- and this is what I was talking about in terms of this forcing function -- we need to be a lot better about what we mean by collaboration, who participates, and how we identify them. It goes back to basic practices that we haven't done a very good job of dealing with over time.

It's one thing if your constituency is known to you and, if you happen to collocate your resources internally, it's quite another, when you make them available externally and have to start looking at how you identify, and then federate even a basic externally hosted, but internally consumed, set of applications and resources.

Challenging the model

We have an awful lot of work to do, as it relates, on one hand, to challenging the model -- is this the right way to go? -- but secondarily, bringing forth all the things that we should have done for quite a number of years to make that a reality.

Glenn and I were discussing the fact that we have an awful lot of solutions, as was alluded to before -- I think Doug brought it up -- that from a timing perspective just weren't mature, ready, or catalytic enough to be adopted But, now is an opportunity to look at those as being a valid set of alternatives.

Gardner: Glenn, you've had this discussion with Chris. Is it safe to integrate, to interoperate, and should governance be something that resides entirely within an enterprise that's consuming cloud services? Does governance need to be extended from the cloud to the consuming organization, or some interaction or hybrid between them?

Brunette: When you start looking at the cloud usage patterns and the different models, you're going to see that governance does not end at your organization's border. You're going to need to understand the policies, the processes, and the governance model of the cloud providers.

Unfortunately, we really have a fair degree of work to do in this area. There's a lot of work that

It's going to be important that we have a degree of transparency and compliance out in the cloud in a way that can be easily consumed and integrated back into an organization.


needs to be done around transparency, compliance, and governance. But, those are problems that can be solved, at least for those organizations willing to take that step. Those will be the ones that will be more attractive in the marketplace, especially to the enterprise market, as they look to take advantage of cloud computing.

It's going to be important that we have a degree of transparency and compliance out in the cloud in a way that can be easily consumed and integrated back into an organization. At the same time, I would also caution, though, to Chris' point.

Earlie, he talked about the onslaught of audit requests. I think we need to come up with some standards in this space, so that organizations can measure against some common ground, so that cloud providers aren't effectively going under a denial of service just on the sheer weight of audit requests from their consumers. There is a balance here that needs to be struck.

Gardner: Going to the audience once again. Another question about third-party risk assessment. Is this a field day for third-party consulting organizations that will walk in and spread the pixie dust?

I'll throw this out to anyone on the panel. How much of this is going to fall into the hands of third-party consultants to decide what you should or shouldn't use vis-à-vis the cloud.

Potential for disintermediation

Grance: I'll start on that one. It's funny, cloud has a vast potential to cause a disintermediation, just like in power and other kinds of industries. I think it may run eventually through some of these consulting companies, because you won't be able to get as rich off of consulting for that.

In the meantime, I think you're going to face that situation. As you can see with the SAS 70 audience, where people can simply just roll their own. Here's my magic set of controls. It may not be all of them. It may just be a few of them. I think people will shop around for those answers, but I think the marketplace will punish them.

Reiner: Another comment here, and this takes the form of a war story, so I apologize for that. About a year-and-a-half ago, a friend of mine, who was, at the time, the CIO of a Fortune 100 company, asked me to take a look at an agreement that he was actually already party to. He had inherited it from his predecessor, and it was between his organization and a Fortune 100 outsource or integrator type of entity. He asked me to look at the security aspects of it.

It was interesting. On one hand, there were security aspects, which are not universally the case in these things. But when you came down to it, what it said under security was that, "the integrator undertakes to have firewalls" -- not to plug them in, not to operate them, not to maintain them, not to see them inserted in a network, not to see them doing anything whatsoever.

The remarkable thing about all this is not just that the gap had occurred, but that both

The remarkable thing about all this is not just that the gap had occurred, but that both organizations felt good about it.

organizations felt good about it. Both organizations felt that they had successfully washed their hands of the risk. Until as a community we all get better at not letting those things happen, maybe it's useful to have third parties who can help find them.

Gardner: Anyone else on the third-party risk assessment opportunity?

Howard: I'll take a slightly different angle on it. Going back to one of the things Glenn said, if you look at a lot of the cloud providers, we tend, in many cases, to fight some standards, because, in reality, we want to have competitive differentiators in the marketplace. Sometimes, standards and interoperability are key ones, sometimes standards create a lack of our ability to differentiate ourselves in the marketplace.

However, on the security side, I that's one of the key areas that you definitely can get the cloud providers behind, because, if we have 10,000 clients, the last thing we want is to have enough people sitting around taking the individual request of all the audits that are coming in from those customers.

For example, if they just wanted to send us a questionnaire of 150 questions, to do that 10,000 times is a significant effort. So, to put standards behind those types of efforts is an absolute requirement in the industry to make it scalable, not just beyond the infrastructure, performance, availability, and all those things, but actually from a cost perspective of people supporting and delivering these services in the marketplace.

Hoff: Just to take an angle on your angle. What's interesting is that many times, from the security perspective, security teams have not done a good job of looking forward to what is coming as a disruption, and some are caught flatfooted and react oftentimes in an emotional manner that does not contribute well to their status in the organization.

A good illustration of this is when someone says no or attempts to block the movement to a cloud by suggesting, "Well, the cloud provider does not have X, Y, and Z in place." Sometimes, management turns around and says, "Well, do we have X, Y, and Z in place? And, they say no.

Answering to a higher standard

It's kind of like the Hebrew National hot dog version of security for the cloud, which is being held to a higher standard. This is kind of funny, because, in many cases, they will write, you know what, I'm outsourcing this. I may not be able to effect the same types of governance and control, but at the same time, we should be fair and circumspect, when we look at the overall security posture and we look at the controls that we have.

Firewalls aren't bad things. They've served us well. Our application of them may be ill tuned, but the reality is that "good enough" security, for the most part, is what we like to suck up and admit is good enough. It always has been. That's the trend with outsourcing in general before the cloud showed up as a popular culture term.

If they deliver to me a service level that is legally binding in some form or another, whether they plug in the firewalls or not, the reality is that from a cost center view, and we're looking to trim money, good enough is good enough. We're going to be facing much, much more of that as time goes on.

Gardner: That gets to the point of authority and responsibility. Security, as we pointed out, is often a function of perception. Will the cloud perhaps improve this by creating one throat to choke? If the cloud provider is responsible for performance, security, liability, low cost, and for all of the other requirements that you might throw into your service-level agreement, isn't that, in a sense, a little bit better than having a distributed, amorphous, unknown set of security requirements within the organization?

Glenn, is there a silver lining to the cloud in terms of the one throat to choke?

At the same time, you need to recognize that there is a shared responsibility here, especially as you get further down the stack.



Brunette: I would say it depends. Well, it does, but I would say that for certain classes of cloud computing models, a SaaS model, it really could be the case, where those providers have an opportunity to hire best of breed, be able to build that into their applications, and design that into their processes and their policies, so that what you get is actually representative of a strong security model.

At the same time, you need to recognize that there is a shared responsibility here, especially as you get further down the stack. Once you get to the IaaS provider, if the provider is not providing you with the machine images that you're loading, you really can't blame them, if you've deployed a poor one. So, depending on what level of the stack you're going toward, there may be some benefits.

One of the other things I'd point out is that, it's not just about the cloud providers and the cloud consumers, but there are also other opportunities for other vendors to get into the fray here.

One of the things that I've been a strong proponent of is, for example, OS vendors producing better, more secured, hardened versions of their operating systems that can be deployed and that are measurable against some standard, whether a benchmark from the Center for Internet Security, or FDCC in the commercial or in the federal space.

Everyone benefits

The other thing that comes to mind is that you may also have the opportunity of third parties to develop security-hardened stacks. So, you'd be able to have a LAMP stack, a Drupal stack, an Oracle stack, or whatever you might want to deploy, which has been really vetted by the vendor for supportability, security, performance, and all of these things. Then, everyone benefits, because you don't all have to go out there and develop your own.

Gardner: I am going to riff a little bit on a well-known tagline and say that the architecture is the cloud. What I mean by that is that is that it's hard for enterprises to change their architecture, but it might not be that difficult for a cloud provider Somebody who has, for example, a very low-margin commoditized business, needs to look for, as you say, best-of-breed approaches, not necessarily best-of-breed products.

We heard earlier today about a change in how an application might be delivered, that the whole stack, an optimized stack, might be integrated and optimized between the code that's generated in the application and the stack itself, no more or no less that's required. It's tightly integrated, highly parallelized, highly efficient, comes down across the wire, you use it when its done, it goes back up, and it comes down the next time with all of the security patches installed. This is an architectural shift, not just a sourcing change.

Does the cloud offer us the opportunity to move our architectures, in a modernization sense, far and away more than we might be able to do in our own organizations? Let me take that to Richard Reiner first.

Reiner: Well, if the question is does that opportunity exist, certainly it exists. It's going to come

Over time, on the flip side, it will play out and the real players will be the real players at the end of the day.

down to the business models of individual cloud providers as to whether they are willing on one hand and able on the other.

Gardner: Will I, as an end user, care what the architecture is?

Reiner: Well, you'll care in terms of its functional results. You may not care what's behind the scenes, but you'll care whether you are receiving configuration updates as a service as part of what you've contracted for. Certainly, you'll care.

Gardner: How about Doug Howard?

Howard: Unfortunately, I think a lot of it plays out over time. I mean, at the end of the day, if you engineer, if you develop and you deliver a service, regardless of what the underlying infrastructure is -- going back to the user experience -- if the user experience is positive, they're going to stay with the service.

On the flip side, if somebody tries to go the cheap way and ultimately delivers a service that has not got that high availability, has got problems, is not secure, and they have breaches, and they have outages, eventually that company is going to go out of business. Therefore, it's your task right now to figure out who are the real players, and does it matter if it's an Oracle database, SQL database, or MySQL database underneath, as long as it's meeting the performance requirements that you have.

Unfortunately, right now, because everything is relatively new, you will have to ask all the questions and be comfortable that those answers are going to deliver the quality of service that you want. Over time, on the flip side, it will play out and the real players will be the real players at the end of the day.

Gardner: Chris Hoff, is it possible that the cloud providers will run circles around the enterprise and that they will come up with a better architecture? It will be more secure. It will be more reliable. It will be robust. It will have business continuity. It will be cheap. It will be effective. You guys are pessimists today. I don't get it?

It depends on what you pay

Hoff: It will make me a ham sandwich too. It depends on what you pay for it, and I think that's a very interesting demarcation point. There is a service provider today who doesn’t charge me anything for getting things like mail and uploading my documents, and they have a favorite tag line, “Hey, it’s always in beta.” So the changes that you might get could be that the service is no longer available. Even with enterprise versions of them, what you expect could also change.

So the answer is yes, given one of the hallmark benefits of cloud, which is agility and flexibility and the "push once -- make available to everyone" is certainly fantastic. However, in the construct of SaaS, can that provider do a better job than you can, Mr. Enterprise, in running that particular application?

This comes down to an issue of scale. More specifically, what I mean by that is, if you take a typical large enterprise with thousands of applications, which they have to defend, safeguard, and govern, and you compare them to a provider that manages what, in essence, equates to one application, comparing apples to elephants is a pretty unreasonable thing, but it’s done daily.

What’s funny about that is that, if you take a one-to-one comparison with that enterprise that is just running that one application with the supporting infrastructure, my argument would be that you may be able to get just as good as, perhaps even better, performance than the SaaS provider. It’s when you get to the point of where you define scale, it's on the consumer side or number of apps you provide where that question gets interesting.

I bristle at the fact that, for example, SaaS vendors can do a better job at securing your apps than

But, what happens then when I end up having 50 or 60 cloud providers, each running a specific instance of these applications. Now, I've squeezed the balloon.

you can. So you run a mail system inside, and you outsource to them, and they will do better job. Strangely enough -- and it may be a case I will grant of you of adoption and use -- but the three biggest breaches we have currently had in terms of privacy, as it relates to well-known cloud applications, have all been SaaS. These are the guys who are supposed to be doing a better job than we do.

It’s applying a realistic and pragmatic set of filters to that questions. One to one, that becomes a more difficult question to answer. I've got a thousands apps, where I am distracted and I've got to pour more and more money and more and more people into it. Then, you start dealing with a reasonable question.

But, what happens then when I end up having 50 or 60 cloud providers, each running a specific instance of these applications. Now, I've squeezed the balloon. Instead of managing my infrastructure, I'm managing a bunch of other guys who I hope are doing a good job managing theirs. We are transferring responsibility, but not accountability, and they are two very different things.

Gardner: Glenn, to this point of modernization and the pace of innovation, many enterprises have five- or seven-year cycles. A cloud provider might have a three-, six-, or nine-month cycle. It wouldn’t take too long for that cloud provider to be way ahead in terms of adopting the latest and greatest security and optimize the infrastructure.

Do you see that the cloud providers, if given a chance, if given a business model and it’s sustainable, could technically, and in terms of business requirements, very quickly get out in front and, therefore, become an offer that people can’t refuse?

Advantages of older technology

Brunette: I think that's possible, although probably for different reason. The hardest thing is that they may want the latest and greatest, but more often that is in terms of what they are exposing to their customers and also in the tools and techniques they will use to manage their infrastructure. In terms of the actual technology, sometimes using older technology may be more advantageous to them from the cost perspective.

You asked earlier whether this is an opportunity for architects and for changes in architecture, and I would say a resounding yes. There are things we can do today, in terms of horizontal scale, caching of systems, and caching of applications, that would allow us to use, rather than the latest quad-core processors, maybe dual-cores, but more of them, or using older disk-drives, but with Flash-based technologies to help accelerate the reads.

In almost every case, the cloud providers can hide all of that complexity, but it gives them a lot more flexibility in terms of which technology is right for their underlying application. But, I do believe that over time they will have a very strong value proposition. It will be more on the services that they expose and provide than the underlying technology.

Gardner: Any other takes on that? Yes, Richard?

Reiner: Just kind of a comment. Sometimes we risk taking something for granted that we shouldn’t, which is that every customer, even every business customer of cloud services, will want a cloud that is managed to maximize security and availability.

To the extent that a cloud is managed that way, you take on some of the characteristics of large enterprise IT, which is to say slow and bureaucratic, and all the things that people complain about. While some customers will want their cloud services that way, others will want one that maximizes price performance, even if that comes at the expense of other dimensions. So, we just need to be careful on that one.

Grance: This goes back to the business case argument. You have to know what your risk

Regardless of which model, there is no way to say there is no risk in any of the issues. It’s another coldhearted business decision that has to be made.

appetite is and what risks you are willing to take. If you can give an aggregate demand and enough dollars behind that, you can get your requirements met.

Of course, we could come up with this novel thing 10 years later called IT. So, there will always be this ebb and flow back and forth. A technical point is that, regardless of which one you choose, which model, which method, you are going to ask all of these hard questions about the provisioning service and how well this is done, and with virtualization, you are still trusting a million lines of code.

Regardless of which model, there is no way to say there is no risk in any of the issues. It’s another coldhearted business decision that has to be made.

Brunette: Just one comment in terms of optimization. It’s an excellent point, because I think what we will see today is that if you want a compute or storage service, you tend to get the same flavor. Now, you get different providers, but it’s similar in nature. Over time, we're going to see a much higher degree of specialization.

You may see more HPC-oriented clouds, which utilize different types of interconnects, different types of file systems that deliver on those requirements, whereas something, perhaps in the financial services or healthcare, may orient themselves more toward those regulatory environments.

Robust marketplace

Gardner: Okay, and to that point of a robust and highly energized marketplace, where the best and brightest and most secure will rise to the top and it will be clear and transparent to everyone what those are, how do we provide for transparency and utility and portability, especially early on?

It seems to me that we have a limited number of cloud providers, for at least enterprise caliber activities now a days, and, with a small number, comes perhaps market power, beyond what we would expect in terms of a pure market environment.

Any thoughts about what we need, perhaps external or perhaps with the clout of the enterprises. If we're going to be buying the stuff, we want X, Y, and Z. What needs to happen in terms of providing for neutrality, which is an important aspect of security? Let’s start at one end and work away down. What do you think, Doug?

Howard: Neutrality, from a portability prospective specifically. Most of us who have provided SaaS services in the cloud provide some reasonably easy way for customers to gain access to their content and withdraw that from our infrastructure.

That’s one of the questions that most customers, when they come to us today, have key on their

Most of us who have provided SaaS services in the cloud provide some reasonably easy way for customers to gain access to their content and withdraw that from our infrastructure.

mind. "How can I get my data out of your infrastructure, if I want to? If you end up being the provider and if you end up going out of business, whatever it may be, how can I get my data out of your infrastructure?"

Those APIs, those, capabilities, those exports pretty much exists today, relative to getting the compliance information, the GRC information out of their infrastructure and into their infrastructure. Those are the key areas that we have been focused on.

There's probably an evolution, as well, that you will see the industry go through as they figure out, "I can make you comfortable with getting your data. I can make you comfortable getting your applications out of my infrastructure, if you are worried about me and move it to somebody else."

The next evolution is making sure that my business processes and my compliance work with the outside as well. For example, we do external scanning by a third party. We do internal scanning ourselves. We have a third-party FFIC review that comes in. That happens with us. Then, we have a third-party review that comes in.

Those are made available to our clients as part of the process. They then go into their policy and into their GRC process, so that they can fulfill their compliance requirements as well.

Gardner: Chris Hoff, do we need a "good clouds keeping seal of approval?" Who would provide it? Wouldn’t a network services company be a good possibility?

Open standards

Hoff: To answer your original question about what we need to make that a reality. The words “open standards” float to the top of my head. We've been talking a lot about the enterprise here, and so we’ll make that assumption -- large, well-established enterprises with good, decent practices, and with established burdens and infrastructure already.

For small and medium businesses (SMBs), most of them could care less. It's all about agility. "I don't want to buy anything, I'm just putting this stuff in the cloud today." They don't see any difference. It's fantastic.

If we focus on the enterprise side, you brought up earlier that a lot of these folks are already on multi-year road maps that talk about progression of how their infrastructure is going to move and migrate. It's like turning an oil tanker left. It takes five miles in many cases.

In the long-term, open standards with contributions from larger enterprises and providers are

. . . a lot of these folks are already on multi-year road maps that talk about progression of how their infrastructure is going to move and migrate.

going to be incredibly important, because there is a natural progression in large enterprises that's occurring, regardless of what label you slap on it.

That is a direct result of the consolidation and virtualization we have been seeing happening over the last five years anyway. They're looking to reduce carbon footprint, save on power, and all that stuff and that's happening. That's led currently by a few vendors, who are working, as their market dominance, to export what they do, both to allow federation with the business part and what's been turned out into a cloud process.

We flip that even further. The reality is, portability and interoperability are going to be really nailed to firstly define workload, express the security requirements attached to that workload, and then be able to have providers attest in the long-term in a marketplace.

I think we called the Intercloud, a way where you go through service brokers or do direct interchange with this type of standards and protocols to say, “Look I need this stuff. Can you supply these resources that meet these requirements? “No? Well, then I go somewhere else.”

Some of that is autonomic, some of it’s automated, and some of it will be manual. But, that's all predicated, in my opinion, upon building standards that lets us exchange that information between parties.

Gardner: Richard Reiner, Everyone agrees that portable neutrality and openness is a good thing, but how do we get there?

What we need now

Reiner: That's a good question. I don't think anyone would disagree that learning how to apply audit standards to the cloud environment is something that takes time and will happen over time. We probably are not in a situation where we need yet another audit standard. What we need is a community of audit practices to evolve and to mature to the point where there is a good consensus of opinion about what constitutes an appropriate control in a cloud environment.

The other question that arises there is how easy or hard it is for an auditor to get to that opinion, and what can we do, as technologists, that might make it easier. This is one area where we're putting a lot of our attention, and we have a cloud infrastructure platform that service providers around the world are starting up and running revenue-generating services on. This is a question that we are seeking the answer for.

Gardner: Glenn, portability, how do we get there?

Brunette: As Chris said, it comes down to open standards. It's important that you are able to get your data out of a cloud provider. It's just as important that you need to have a standard representation of that data, something that can be read by your own applications, if you want to bring it back in house, and something that you can use with another provider, if you decide go that route.

The other concern that comes up, if you get to that point where you the need to extract your data, what if we are talking about petabytes or exabytes of data? Where do you go with that? How do you get it from provider to provider? Are you going to get it there over some sort of network link or do you have other vehicles for that? Those are things that you would need to negotiate with your provider?

Gardner: Pick up trucks.

Brunette: Right, exactly.

Gardner: Last word to you, Tim.

Grance: I'm going to out on a limb and say that NIST is in favor of open, voluntary consensus, but data representation and APIs are early places where people can start. I do want to say important things about open standards. I want to be cautious about how much we specify too early, because there is a real ability to over specify early and do things really badly.

So it's finding that magic spot, but I think it begins with data representation and APIs. Some of these areas will start with best practices and then evolve into these things, but again the marketplace will ultimately speak to this. We convey our requirements in clear and pristine fashion, but put the procurement forces behind that, and you will begin to get the standards that you need.

Gardner: We have been discussing whether or not it's safe to go to cloud computing, and we have come up with number of different positions and a variety of perspectives. I hope it's been edifying for you. I have certainly enjoyed it and I hope you can join me in again thanking our panel.

We have been joined by Glenn Brunette; distinguished engineer and chief security architect at Sun Microsystems, as well as the founding member of the Cloud Security Alliance. Thank you, Glenn.

Brunette: Thank you.

Gardner: Doug Howard, chief strategy officer, Perimeter eSecurity, and president of USA.NET. Thank you, Doug.

Howard: Thank you.

Gardner: Chris Hoff, technical advisor for the Cloud Security Alliance and director of Cloud and Virtualization Solutions for Cisco Systems. Thank you, Chris.

Hoff: Thanks, very much.

Gardner: Dr. Richard Reiner, CEO of Enomaly. Appreciate your input.

Reiner: Thank you.

Gardner: And Tim Grance, program manager for Cyber and Network Security at the National Institute of Standards and Technology. Thank you.

This is Dana Gardner, principal analyst at Interarbor Solutions. You have been listening to a sponsored BriefingsDirect podcast, coming to you from The Open Group's, 23rd Enterprise Architecture Practitioners Conference in conjunction with the Security Practitioners Conference in Toronto in the week of July 20th, 2009.

Thanks for listening, and come back next time.

Listen to the podcast. Download the podcast. Find it on iTunes/iPod and Podcast.com. Sponsor: The Open Group.

Transcript of a BriefingsDirect podcast on the current state of cloud security and what's needed in the way of standards and practices. Recorded live at The Open Group's 23rd Enterprise Architecture Practitioners Conference in Toronto. Copyright Interarbor Solutions, LLC, 2005-2009. All rights reserved.

Sunday, June 21, 2009

HP Software Marketing Head Anton Knolmar Delves into Creating New IT Economies of Performance

Transcript of a BriefingsDirect podcast recorded at the Hewlett-Packard Software Universe 2009 Conference in Las Vegas the week of June 15, 2009.

Listen to the podcast. Download the podcast. Find it on iTunes/iPod and Podcast.com. Sponsor: HP.

Dana Gardner: Hello, and welcome to a special BriefingsDirect podcast series coming to you on location from the Hewlett-Packard Software Universe 2009 Conference in Las Vegas. We’re here in the week of June 15, 2009 to explore the major enterprise software and solutions trends and innovations that are making news across the global HP ecology of customers, partners and developers.

I'm Dana Gardner, principal analyst at Interarbor Solutions, and I'll be your host throughout this special series of HP Sponsored Software Universe live discussions.

Now, please join me for our latest discussion. We’re now joined by Anton Knolmar, vice president of marketing for HP Software and Solutions. Welcome to the show, Anton.

Anton Knolmar: Hi, Dana. Welcome.

Gardner: We’ve heard a lot here at Software Universe about IT departments and their overall businesses having to do more with less and doing additional productivity, but spending less money to do so. It sounds simple, but it's very complex. How do companies, particularly IT departments within companies approach that problem?

Knolmar: It’s the right question at the moment because, as you said, IT budgets are not going up at the moment. They have to invest their money in what they have at the moment. They have to prioritize the projects that they have.

We have the right solution, the portfolio around this, at the moment. They can get a good insight into what’s happening in their current environment and what they’re doing in terms of development, application modernization, and claims around the operational environment.

We provide them with all the data that they would need to make these decisions and to make the decisions about what’s right to take forward and what has the best business impact and business outcome for the projects they want to try to bring forward within their company.

Gardner: And what specifically are we hearing from attendees? What’s top of mind for these folks at this point in time?

Knolmar: We've just come out of an executive track. We had about 70 people gathered for the discussion. What is at the top of their minds is all about linking IT with the business. This is a story that we've been telling now for more than 10 or 15 years, and the storyline is not over.

They’re still trying to bridge the gap and talk business language, instead of IT language. One the other hand, they're trying as well to look at the emerging trends.

. . . a lot of these activities that were going on in the past -- utility computing, adaptive enterprise, eServices -- failed because they couldn’t be managed . . .

What the heck does this cloud means for them? How can you do cloud computing here? Does this bring added value to them? What’s the business outcome they can drive out of those activities?

That’s definitely on their radar screen, as we’re moving then a little bit away from the maintenance mode and investing into more innovative approach for the CFO to perceive the future and the next fiscal year, 2010.

Gardner: Another element of complexity is entering for folks as they plan for the future. You mentioned cloud computing. I suppose we could even simplify that in terms of multiple source options or more options for sourcing.

We’re dealing with software decisions, services decisions, "everything-as-a-service." We’re seeing solutions approaches and now we’ve got sourcing. So, basically, we have four S's. It’s a third dimension or a fourth dimension. Do you have any suggestions for folks as to how to begin to approach that sourcing issue in particular?

An important piece

Knolmar: For us, an important piece around sourcing and the offering that we have around the cloud is two-fold. As you mentioned, there are different acronyms out there, everything as a service, platform as a service (PaaS). We're offering software as a service (SaaS) and we’ve been offering this for quite a long time.

What companies are facing at the moment is that a lot of these activities that were going on in the past -- utility computing, Adaptive Enterprise, eServices -- failed because they couldn’t be managed, but it was out there on the Web, on the Internet.

Our offerings around the cloud at the moment are governance tools along with the cloud. You can really manage the cloud. You can really secure the cloud. And, you can get the right performance out of the cloud. That’s our offering at the moment to our customers. They can take the first step, getting this one right, and move into the cloud environment, instead of [just] looking at a different sourcing options.

These are very customized ways for a lot of customers if they want to move into private cloud, if they want to extend the private cloud, or they want to go to the public cloud. Whatever offering they take, we want to be equipped, on behalf of HP, to provide the flexibility in terms of sourcing to our customers, so that they have the choice. They have to believe that we are the right path to work with.

Gardner: Of course, as folks move into new decisions or outsourcing, to move into anything of that magnitude too soon involves risks. What is HP bringing to the table in order to reduce the risks, allow people to exploit these new efficiencies, but remain true to their mission-critical nature at the same time?

Knolmar: That’s exactly the point. You have to make the steps. Are those steps business-critical to where the customers are moving at the moment?

Our approach at this time is that we enable them to have the appropriate developing and testing tools in terms of quality, performance, and security.

Is this meeting the business needs and demands of their lines of business in their companies? It comes back to what we talked about briefly before, as well about prioritization. Does this have a business impact? What’s the revenue impact of driving a new approach forward?

Mitigation of risk will never go away. At the moment, everyone is talking about reduction of costs, but there is always a risk factor attached to it. Hopefully, the outcome will be that a lot of companies can talk about their revenue growth again, moving from 2009 into 2010.

We are ready to drive those three angles. How we can help customers drive revenue growth? How we can help them mitigate the risk? And, on the other side, how can we help them get their costs under control? These are the three angles will be on the table for quite some time, as well for next year. We are ready to have these conversations with our customers.

Gardner: Infrastructure as a service (IaaS) is really in its infancy. Companies are, in many cases, just becoming acquainted with some of these concepts. But, developers, in particular, have become quite enamored of cloud, using tools and PaaS, but that’s only one part of a lifecycle approach to applications, moving through test and quality assurance, and into full production. Do you have any insights as to where HP would fit into this notion and appeal for developers?

Finding appropriate tools

Knolmar: The developer community, as you said, has different concerns in terms of developing the applications and developing things for the cloud as well. Our approach at this time is that we enable them to have the appropriate developing and testing tools in terms of quality, performance, and security. These are essentially for those people who have to develop applications well for the cloud. Those are blocked in immediately, are ready to go out there, and can be managed across the lifecycle.

Gardner: In many cases, the expectation, at least among many fellow analysts and me, is that an initial major application for clouds will be for business intelligence (BI) and data mining. This is because of the size of the data sources and the need for availing massive performance capabilities, but perhaps not all at the same time. There is a need for elasticity, when you address data mining and business intelligence issues. This perhaps explains the need for a private cloud. What is your perspective from HP and what it can bring to the table for BI as a killer app for cloud computing?

Knolmar: BI, as you said, deals with the information explosion, what is going on at the moment. There was a little video during the opening at the main stage. BI, information overflow, and how to manage information are essential pieces. Getting the right information at the right place and making the appropriate decisions are still on top of the agenda for lot of our customers at the moment. It’s been the number one issue for quite some time, and I think it will be the number one issue for quite some time.

We have an offering in these four lines of business in HP Software & Solutions. One is, you gather around the BI piece.

Talking with customers, there's huge interest about how can we accelerate, how can we move faster, what are the different options, and how can be very cost effective at the end of the day.

What we are investigating at the moment is really about how can we bring those offerings as more of a direct offering to our customers in terms of purchasing and licensing? How can you bring those offering into kind of a cloud offering?

But, that still needs some further negotiations inside the company, as well, about development products. But that’s definitely an interesting angle. Talking with customers, there's huge interest about how can we accelerate, how can we move faster, what are the different options, and how can be very cost effective at the end of the day.

Gardner: Another big area of interest for clouds is the need to mitigate risk, as we pointed out earlier, but also to gain some sense of neutrality and openness, so that if one were to move assets from their IT department into a third party cloud, would they have portability? Would they be able to move it around or would they be in some new abstraction of lock in? They’re looking, I think, for certification and trust and some guarantee of flexibility. What role can HP play? Is there a need for a Swiss neutral approach in the cloud ecology?

Knolmar: That's interesting. I was driving through Switzerland, and they still keep the neutrality, so it’s very difficult to get across the border. That’s not the approach we want to take on behalf of HP. HP was always a very open company in terms of approaching new standards, getting new standards in house, and giving the customers the flexibility to give them the best choice about how they want to move forward here with a way.

So, I assume that we’ll be very open in terms of not being a closed environment. What we’re going to offer to all customers is keeping them alive and giving them the choices they want, as we are moving forward in the cloud environment.

Gardner: We’ve also seen trend-wise in the industry an interest in appliances and of optimizing hardware and software together. Not all companies have both hardware and software. For those that do, like HP, do you have any insight into whether an appliance model makes sense for a private cloud delivery mechanism?

Struggling with the cloud

Knolmar: I think it is going a little too detailed. People are still struggling to understand what the cloud can offer to them. Is it hardware? Is it software? Is it a combination appliance? What we are offering and what we want to offer more the moment is a kind of awareness workshop around the cloud, which means getting customers understanding what the cloud is, what it can provide to them, and what it's offering. Then, it will be a very customized approach from a customer-to-customer perspective.

Potentially, it’s a combination, getting into the appliance pieces, but also potentially only a SaaS model for customers for the foreseeable future. It comes back to a customer perspective, but we haven't drilled down into the appliances piece at the moment.

Gardner: All right. And the issue of governance is also important for cloud not spinning out of control, as some folks have experienced with virtualization, and not wanting to lose control vis-à-vis cloud deployments.

For the governance piece, many of us analysts have also recognized that having a background in services-oriented architecture (SOA) and moving towards service enablement on premises,

That’s where we're investing at the moment with our portfolio, helping and providing the customers in terms of cloud governance.

even well before a cloud engagement of any kind, makes good sense as a preparatory step. Is cloud another good reason to embark on SOA methodologies?

Knolmar: You mentioned a couple of different buzzwords. IT governance or governance is an important piece for companies at the moment. It will be even more important moving forward here, because you touch on cloud governance, it's an essential piece. Otherwise, these things will not survive in the market here. That’s where we're investing at the moment with our portfolio, helping and providing the customers in terms of cloud governance. Cloud Assure is one piece of it, helping them to get this going.

Underlying architectures, like moving SOA forward, has moved a little bit away from the top 10 priorities, as Gartner is saying. SOA has moved a little bit down the list at the moment here. It's not essential. It’s not important any longer on the list of the CIOs in terms of deploying a SOA.

It’s more about coming back to what we said before about what is the outcome and what I can get with my investments in these different architectures? Does it help me and enable me to try future investments? What are the new technologies or emerging business needs popping up here? Can I deploy them and can I implement them? Can I roll them out as well for the future?

Gardner: Well great. Thanks for taking time from a very busy conference. We’ve been talking with Anton Knolmar, vice president of marketing for HP Software & Solutions, thanks so much!

Knolmar: Thank you, Dana.

Thanks for joining us for this special BriefingsDirect podcast, coming to you on location from the Hewlett-Packard Software Universe 2009 Conference in Las Vegas.

I'm Dana Gardner, principal analyst at Interarbor Solutions, your host for this series of HP sponsored Software Universe Live Discussions. Thanks for listening, and come back next time.

Listen to the podcast. Download the podcast. Find it on iTunes/iPod and Podcast.com. Sponsor: HP.

Transcript of a BriefingsDirect podcast recorded at the Hewlett-Packard Software Universe 2009 Conference in Las Vegas the week of June 15, 2009. Copyright Interarbor Solutions, LLC, 2005-2009. All rights reserved.

Monday, June 01, 2009

Dana Gardner Interviews Forrester's Frank Gillett on Future of Mission-Critical Cloud Computing

Transcript of a BriefingsDirect podcast with Frank Gillett of Forrester Research on the state of cloud computing and prospects for real-world use in enterprises.

Watch the video. Listen to the podcast. Download the podcast. Find it on iTunes/iPod and Podcast.com. Learn more. Sponsor: Akamai Technologies.

Dana Gardner: Hi, this is Dana Gardner, principal analyst at Interarbor Solutions. Welcome to a special video podcast edition of BriefingsDirect.

Today, we're going to discuss cloud computing in the context of the real-world enterprise. We've certainly heard a lot about the vision for cloud computing and what it can do for the delivery of applications, services, infrastructure, and even development and deployment. What's less clear is how we take the vision and apply it to today's enterprise concerns and requirements.

We're going to look at the need for security, reliability, management,and even integration across multiple instances of cloud services. Here to help us understand the difference between the reality and the vision for cloud computing is Frank Gillett. He is a vice president and principal analyst for general cloud computing topics and issues at Forrester Research. Welcome to the show, Frank.

Frank Gillett: Thanks very much, Dana.

Gardner: You know, the whole notion of cloud computing isn't terribly new. I think it's more of a progression. We certainly had Internet and Web, Web applications, portals, and software-as-a-service (SaaS) applications. Now, taking it a step further, how do you define cloud computing? How can we put a box around this, given the large amount of hype that we've seen?

Gillett: Exactly, Dana. When I talk to folks in the industry, the old timers look at me and say, "Oh, time-sharing!" For some folks this idea, just like virtualization, harkens back to the dawn of the computer industry and things they've seen before. But, when we think about what cloud computing is, there are really two things that are brought to the forefront.

The first is, as you suggest, the rise of the Internet and the notion that instead of having everything on my own computer, or in sort of the database server, I go visit this website over a public network instead of the client-server private network within my company. So, you date it back basically to the dawn of Internet search with the beginning of AltaVista, Yahoo!, and then Google, where we had these applications called "search" that could only be hosted as a service provider.

We didn't think of them as cloud, per se, because cloud was just this funny sketch on a white board that people used to say, "Well, things go into the network, magic happens, and something cool comes from somewhere." Eventually, as you mentioned, those sorts of ideas began to morph into notions of actual SaaS, where I was running a business application as a service from a provider's location.

On a separate track, with the idea of server virtualization -- sharing one server as if it were several -- VMware kicked off this technology for the x86 architecture, in the 1998-1999 timeframe. Of course, the idea originally came from the mainframe, and that technology for machine sharing is sort of the opposite of these giant Web workloads that span machines that have tens or thousands of servers. These two ideas have fused and are now under this umbrella called cloud. I see a wide range of definitions.

The way I work with folks is not to say, "Here is my definition," but rather, "How are you thinking about it," and then categorize it. So broadly speaking, SaaS is a finished service that end users take in. Platform as a service (PaaS) is not for end users, but for developers.

With PaaS, think of a substitute for an application server, and if you think about this, then it's an environment at a service provider. Instead of running your own application server or your own copy of an operating system on site, the developer writes the software and deploys it using the tools from the service provider. He deploys at the service provider and never has to think about operating systems, servers, storage architectures or any of that junk.

Now, some developers want more control at a lower level, right? They do want to get into the operating system. They want to understand the relationship among the different operating systems instances and some of the storage architecture.

At that layer, you're talking about infrastructure as a service (IaaS), where I'm dealing with virtual servers, virtualized storage, and virtual networks. I'm still sharing infrastructure, but at a lower level in the infrastructure. But, I'm still not nailed to this specific hardware the way you are in say a hosting or outsourcing setup.

So, in simple terms, that's how I think about it. SaaS for end users. PaaS for developers who don't want to get into the infrastructure. And, IaaS for developers who want to go that low, or for IT folks who have workloads that they want to bring from the back office and deploy in that environment. That latter one is still secondary, and the whole thing is still emerging. If you were looking at this in Internet time, we're in 1995 or 1996.

Where are we now?

Gardner: We're in the opening innings of cloud computing, but there have been a number of converging trends and even economic incentives that have kicked in to make this top-of-mind for a lot of people now.

What's going on from your research perspective at Forrester? You're looking at adaption patterns. You're looking at mind share. You're looking at economic and technical rationales within enterprises. If we're in the first or second inning in terms of vision, where are we in terms of implementation?

Gillett: Implementation, particularly when you look at it from the point of the view of the enterprise, is pretty early. When we surveyed folks to ask about their use of IaaS, we found two to three percent of enterprises, and about the same for small and medium-sized businesses (SMB), say that they are actually doing some form of pay-per-use hosting of virtual servers at a service provider.

You just can’t throw a cloud-computing phrase at someone and say, “Are you doing it?” Because most of them ask, “Well, what do you mean?” We have to ask specific questions.

We also asked folks about SaaS. When we look at adoption for that, a third of companies are doing some form of SaaS. In both cases,

In cloud stuff, a lot of the noisy early adopters are startups that are very present on the Web, social media, blogs, and stuff like that.

interestingly, the bigger the company the more likely they are to be doing it, despite the hype that the small companies will go first. They tend not to grab the bleeding-edge technology, except for the startups. In cloud stuff, a lot of the noisy early adopters are start-ups that are very present on the Web, social media, blogs, and stuff like that.

A lot of the examples we hear about startups are like Animoto, Good Data, or Allurent who are using this capability to build their own businesses, and they're talking a lot about it. It doesn't necessarily mean that your typical enterprise is doing it, and, if they are, it's probably the developers, and it's probably Web-oriented stuff. So it's a specific subset of what's happening in the enterprise.

Gardner: So, clearly there are some economic incentives for startups that get involved. They don't have to have that upfront capital expense, they can pay as they scale. So, they can create a business model that's commensurate with their costs.

Gillett: That's right.

Gardner: But, for the big payoff from cloud computing, those larger enterprises are at the scale where the cost savings, the efficiency, and the productivity will be the most impactful, what are they doing?

Gillett: When you look at the infrastructure guys who worry about servers and storage, the only place that they may be playing around with this is in testing, development, or workloads where they have to do a bunch of stuff in a hurry and then quit.

One apocryphal example is The New York Times needs to render a hundred years of newspaper articles as PDFs. And, this is an Amazon customer. So, there's the developer scratching his head and saying, "How am I going to find all these servers to render this stuff, and how long is it going to take?"

He starts mucking around with Amazon [Web Services] and figures out that he can move the data up to Amazon, which takes a little while. It was a few terabytes of TIFF files, scanner stuff. Then he's able to write software to take that data once it's at Amazon and convert it to PDFs. He runs the whole thing in 18 hours on few tens or hundreds of instances. Then, he's done, and the whole thing cost him something less than a conventional expense report, a couple of hundred bucks ...

Gardner: Time-share.

Just do it

Gillett: ... Right. Instead of having go out and buy the gear, borrow it, or run it on nights or weekends or whatever, he's just able to go out and do it. That gives you an example of how people are doing it in the infrastructure layer. It's really workloads like test and development, special computation, and things like that, where people are experimenting with it. But, you have to look at your developers, because often it's not the infrastructure guys who are doing this. It's the developers.

It's the people writing code that say, “It takes too long to get infrastructure guys to set up a server, configure the network, apportion the storage, and all that stuff. I'll just go do it over here at the service provider."

My colleague James was talking to an infrastructure guy at a major entertainment company. He says, "Hey, I saw you're using cloud computing." "No, we're not." "Well, take a look at this URL." "I didn't know about this." Click.

Gardner: That raises a very interesting question. Who in the enterprise will be specifying and therefore become responsible for cloud-computing implementations?

Gillett: That question illustrates the challenge of this foggy thing called "cloud." There is no one thing called "cloud," and therefore, there

Who in the enterprise will be specifying and therefore become responsible for cloud-computing implementations?

is no one owner in the enterprise. What we find is that, if you are talking about SaaS, business owners are the ones who are often specing this.

So, a sales person might be looking at, say, Salesforce.com and say, "Hey, I want that." Eventually, they involve the IT folks, but sometimes it's further down the cycle. Sometimes, it's after the fact when they come to IT and say, "We've got this CRM-as-a-service thing, and we need to integrate it with the billing and financials."

What's happening is this whole change in dialog within IT and between IT and it's internal customers, because people at different levels are responsible for different aspects.

There's a different angle on this for security and compliance folks. They're trying to figure out how to make sure -- when anyone can run out with a credit card and buy IT infrastructure -- that they're following all the regs they've got to follow. Whether it's the generic stuff for being a publicly traded company, or basic accounting purposes, or, more importantly, for HIPAA regulations or special financial services regulations, it's quite a challenge, and it's fundamentally a governance challenge.

'One throat to choke'

Gardner: If we have multiple cloud services, multiple levels of cloud in terms of application development infrastructure, we are probably also going to see some implementations internally of the cloud provisioning and the setup for virtualization and lower-cost computing. So, with multiple instances of cloud, some internal and some external, who is the "one throat to choke" if something goes wrong?

Gillett: Bottom line, there isn't one, because there is no one thing. If you look at SaaS, in a handful instances, you might see stuff like that within a large company, but those are mostly from service providers. It's when you get to IaaS, the notion that I can use virtual servers as a shared service, that I can self-provision from a portal, and that are somehow tracked by resource consumption.

That's what we expect to see coming out of IT infrastructure, but that will take longer. If you look at virtualization adoption, only a little more than half of the companies in our surveys report that they are even doing x86 virtualization. So far, of the ones that are virtualized, it's only about a quarter of their operating system instances that are virtualized. That's from a survey late last year.

By the summer of 2010, they're projecting that they will have about half of their operating system instances virtualized, which, from our experience, seems quite aggressive as an average target across these thousand enterprises we surveyed in North America and Europe.

Gardner: Well, Frank, I think enterprises are going to be challenged by this notion they are the place for that "one throat to choke," given that there are so many different spinning plates in this equation across network services, cloud providers, other parts of the business process. What can they go to then, as a third party, to gather the insight to extend their service-level agreements (SLAs) or enforce them?

Gillett: You're right to call on this and ask for the double click down, because they are on their own within the company. They've got to manage the service providers, but there is this thing called the network that's between them and the service providers.

It's not going to be as simple as just going to your network provider, the Internet service provider, and saying, "Make sure my network stays up." This is about understanding and thinking about the performance of the network end to end, the public network, much harder to control than understanding what goes on within the company.

This is where you have to couple looking at your Internet or network service provider with the set of offerings out there for content

It's not going to be as simple as just going to your network provider, the Internet service provider, and saying, "Make sure my network stays up."

and application acceleration. What you're really looking for is comprehensive help in understanding how the Internet works, how to deal with limitations of geography and the physics, the speed of light, making sure that you are distributing the applications correctly over the network -- the ones that you control and architect -- and understanding how to work with the network to interact with various cloud-service providers you're using across the network.

Going to look at the service providers, and the technology offerings for content acceleration, application acceleration, other forms of network resident services can give you a more comprehensive look at the network. Even though you can't get the uber "one throat the choke," at the network layer you can go for a more comprehensive view of the application, and the performance of the network, which is now becoming a critical part of your business process. You depend on these service providers of various stripes scattered across the Internet.

If you take the notion of service-oriented architecture (SOA), and explode it across the public network, now you need sort of the equivalent of the internal network operation center, but you need help from an outside provider, and there's a spectrum of them obviously to do that. When you're asking about governance, the governance of the network is really important to get right and to get help with. There is no way for an individual company to try and manage all that themselves, because they are not in the public network themselves.

Gardner: In the past, I might have been able to exercise governance, security, service levels, liability types of values internally, but this is not going to happen on the Internet. I need to have, in a sense, access to that network?

Access to the network


Gillett: Yes, you need access to the network. People think, "Oh, that means I have to go out and worry about the service providers or the network providers, compliance and all that stuff." No, no, no. It's true, but the really important thing is understanding the comprehensive view of the performance of the network, and getting help from a service provider that has that kind of view. There are a number of parties that have various stories about that.

As your dependence on these different services increases, taking a look at those offerings and understanding how to optimize it is critical. I'll give one tiny example here.

I spoke to a luxury goods and perfume maker that had a public website with transactions, as well as content, on their website. I said, "How many servers does it take to run your transactions?" And they said it only takes four, and that includes the two redundant ones. "Oh, really? That's all?" They said, "Well, not really. Three quarters of my workload is with my application and content acceleration provider. They take care of three quarters of my headache. They make it all work." So, that's a great example.

Gardner: Moving work out onto the network itself.

Gillett: Exactly. In that case, they were not yet dependent on a variety of service providers, but they were really interested in making sure their website worked publicly and externally. They found this provider who was able to do that for them quite effectively, reduced the workload on premises, and gave them the capacity that they needed, stuff at the edge and all that.

Gardner: So the desire is there. The rationale from a technological productivity, that is to say, with more bang for your investment and

There's no such thing as "the" cloud provider, or one cloud provider.

your infrastructure is there. What seems to be missing is this notion of trust, governance, and reliability. If I'm an end-user and something goes wrong, do I call IT, do I call the cloud provider, or do I call the network services provider?

Gillett: Dana, I'll point out one thing, and I'm going to back up to hit one thing that I haven't properly addressed. There's no such thing as "the" cloud provider, or one cloud provider. Part of the complication for IT is, not only do they have multiple parties within the company, which has always been a struggle, as they get into this, they're going to find themselves dealing with multiple providers on the outside.

So, maybe you've got the services still in your IT as an infrastructure. You've got your internal capability. Then, you've got an application, SaaS, and perhaps PaaS, and a business process that somehow stitches all four of those things together. Each one has its own internal complexities and all of it's running over the public network, unless you have got some private thing between these public service providers, which seems unlikely. So, it's really challenging.

Now, to double back, you talked about the economic incentive. One of the misleading ideas here is that cloud is always cheaper. Cloud is not always cheaper. There are different value propositions, reasons you would go to a “cloud service provider.”

One of them is the notion of pay-per-use. I want to pay for what I use. Well, if you want to buy it on a spot market, which is a term that's familiar people who think about buying oil and other commodities, you pay a premium to buy stuff on-demand. You pay more per hour, than if you make an upfront commitment.

SaaS pricing models

If you look at the payment or pricing models for SaaS, you tend to pay per-person per-month. It's crudely matching business value, because you have a user using it during the month. It doesn't truly track to true resource consumption, but you have a semi-predictable bill, which people you've allocated, how many months.

When you pay per use on virtual servers, it looks cheap -- say Amazon's bottom dollar rate of 10 cents an hour. They have other ones, but that's the sort of rock bottom entry one. When you add the cost of running that workload 24/7/365, that can come up more expensive than certainly doing it yourself, particularly if your accounting system doesn't aggregate all the cost together to get you a true cost.

To benchmark to an external service providers, I have to be better at taking care of my own accounting. It's quite hard to compare, because some people who argue they are cheaper will be wrong. They're not thinking as a shareholder, only as the person holding that particular budget within the enterprise.

In other cases, it is truly cheaper than a service provider. I had another service provider come to me and say that they are able to do storage for one-tenth the cost of Amazon's storage cost, because they have optimized for their workload. They understand it and they know how to tune the cost for it.

All these different notions of cloud offer a huge set of trade offs for how fast you can provision what the unit cost is, but people should think of

It's quite hard to compare, because some people who argue they are cheaper will be wrong. They're not thinking as a shareholder, only as the person holding that particular budget within the enterprise.

it as a spectrum of things. You're not always getting something that's cheaper. Sometimes it's more effective for the business, but not necessarily cheaper on a unit-cost basis.

Gardner: So, as we look at the economics, we also have to factor in the notion that people can do a lot more or do it differently with a cloud model environment than they could have done internally. This is how we can, in a sense, integrate across different sets of services from different providers that can specialize, but put them in the context of a business process.

So, we have modules, if you will, of cloud services. This is, I think, the pay-off that people are also looking for. How do you describe not just the economic benefits, but these abilities to do things that could not have been done before in a single data center, where applications are monolithically supported?

Gillett: We have been talking for a long time about ideas like this. Early on, we talked about shared and automated infrastructure at Forrester, early in 2002. We followed that up with a report on what we called "Organic Business" that really talked about this notion of different companies being able to work together in flexible and fluid ways, and really being able to do new ways of business innovation.

If you look at it, a lot of these concepts are embodied in the whole set of ideas around SOA, that everything is manifested as services, and it's all loosely coupled, and they can work together. Well, that works great, as long as you've got good governance over those different services, and you've got the right sort of security on them, the authentication and permissions, and you found the right balance of designing for reuse, versus efficiently getting things done.

SOA is actually a dirty word actually for some of the more Web- or Internet- oriented folks, but for the enterprise folks, some of the cloud ideas are just a broadening and extension of SOA and the notion of, "Now, I can pull some of my services from outside."

Look at a company like Avalara, a tax calculation service. Why should I do my own tax calculations or buy an on-premises suite of software and constantly have to update it? Why don't I just go to a service provider and send them the informations about the transaction, have them return to me the correct tax payment and the entities to send it to? Then, I can pay for the tax calculation per order, and I'm all done. I don't have to worry about any of that stuff.

What if?

But, as you're hinting at, I have to think about how I make that business process work, making sure that I work over the Internet? What do I do if that service provider hiccups or a backhoe cuts a fiber optic cable between me and the service provider?

Now, I'm becoming more dependent on the public Internet infrastructure, once I'm tying into these service providers and tying into multiple parties. Like a lot of things in technology, unless you're going to completely turn over everything to an outside service provider, which sounds like traditional outsourcing to me, the "one throat to choke" is your own.

You'd have to figure this stuff out, and you can get help to simplify it, so you have only a handful of people to bang heads together. If you think about it, it's not that different than when I ran all the infrastructure on my own premises, because I had gear and applications from different parties, and, at the end of day, it was up to me to referee these folks and get them to work together.

Gardner: So, your perspective that SOA sets the stage and that cloud computing is a larger abstraction and a use case, if you will, for SOA. That makes a lot of sense. We have some precedents, though, for how this might work. We have SaaS, which has become quite popular in recent years around certain applications -- sales force automation, resource management in the enterprise, human capital management (HCM), and so forth.

We have a track record of organizations saying, "Listen, I don't want to be in the commodity applications business. I want to specialize in what's going to differentiate me as an enterprise. I don't want to have everyone recreating the same application instance. We want to get reuse. We want to get efficiency of scale," and so forth. What's been the ability of managing and governing SaaS up to this point?

Gillett: That's still getting worked out. One of the problems with SaaS, particularly as you get into multiple packages, is how I get those

You'd have to figure this stuff out, and you can get help to simplify it, so you have only a handful of people to bang heads together.

different entities to work together. And one of the answers, of course, is don't work with multiple parties. Go to one party and work with their expanding pool of SaaS, but most companies won't have the luxury of choosing that.

Then you're into integration, and that's one of the struggles we see folks having with SaaS today -- working out how to do that integration. Do they have the direct connect between the providers? Do they route it through their own internal capabilities? How do they monitor that and make sure that it's working effectively?

So, we have some lessons from the experience of SaaS, even though that aspect of the thing that some call cloud is further along the track. Some people insist that SaaS isn't part of cloud. I'm not going to have that fight.

Even though they are the most along, they have a lot to figure out. So I look at this, and I say, "Okay, we've got a decade here to sort this out." It's a completely different problem, by the way, to think about how I take the existing applications I run inside my company, and think about migrating them to a service provider.

I want to pause here and double down on something you said which is, "Cloud is about commoditizing IT, and only things that aren't differentiating leave my company." Not true.

Cloud and mission-critical apps

Cloud services can handle mission-critical workloads, things that differentiate you. In fact, that might only be possible if you do them in a service provider, and with the commodity stuff. In fact, part of the point here is to get folks to really think about what are their needs, what are the offerings in the marketplace, and what's best for the company or the shareholders about taking advantage of that mix of internal capabilities and third-party.

Let me give you an example. Let's say that your business has critical calculations to run overnight, say, for ad placement on websites. Let's say that that's soaks up huge amounts of computing capacity when you run the workload at night, but sits idle during the day.

Gardner: A batch process?

Gillett: Yeah, and a batch process that doesn't saturate the server. If I provision for peak, say Christmas, I have this huge amount of capacity sitting around idle the rest of the year.

Gardner: A very costly system?

Gillett: Guess what? That's one of the workloads that runs at Amazon's EC2 IaaS or computer as a service.

Gardner: Mission critical or not?

Gillett: Correct. In that case, it's more cost effective and more flexible for them to run it with the service provider, even though it's mission critical. It's a more effective use of resources.

Now, let's flip it around the other way. Take a provider that does streaming of public websites of media. You go to a website of a major newspaper or a television network and you want to see their video. This provider helps with that on the back-end. What they found, when they looked at their internal infrastructure, was that they felt they were cheaper than the Amazon at running their core infrastructure.

Amazon looked like a nice extra capacity on top, so they wouldn't have to buy over provision as much. Amazon also looked like a great way to add capacity into new regions before they got critical mass to do it cost effectively themselves in that region. There are two examples of the non-intuitive ways to think about this.

Gardner: Right, mission critical, and being able to handle success, which should come -- even unexpectedly. What we need then to get to

In that case, it's more cost effective and more flexible for them to run it with the service provider, even though it's mission critical. It's a more effective use of resources.

that benefit seems to come back to governance time and again. We had governance issues internally, especially when we moved to SOA. We have to manage integration issues, reliability, compliance, and different applications of regulations within industries.

That gets to a higher level of complexity when we move to cloud. What's going to be governance as a service? How are we going to get between these cloud providers and the enterprise to manage this complexity?

Gillett: It's so early that it's hard to see what the solution is going to be. The closest I have seen that begins to hint at anything, and I don't even think of this as a sort of, a very much of the step down the road.

There's a provider in Europe called Zimory, another startup, that's trying to serve as a brokerage through raw computers as a service. If you want to know where the cheapest stuff is, you want to follow the sun, or move your workload around to follow the cheap stuff, that's an example of what Zimory is trying to do.

That's not quite governance, but there is an element of that in there. Fundamentally, what you were hinting at in your questions, Dana, is IT was already struggling with notions of internally shared infrastructure, things like blade servers and server virtualization that required the different stovepipes and IT ops to talk to each other and work together.

There's also this big chasm between developers and ops in terms of “throw it over the wall deployment,” and now we are just going to explode that out across the open Internet to the service providers that people are tying into.

Cloud hype bubble

It feels like we are in a cloud hype bubble right now. All the hype and noise is sort of on the upswing still, but we are going to see this subside and calm down late this year or next year. This is not to say that the ideas aren't good. It's just that it will take a significant amount of time to sort things out, figure out the right choices for the offerings to mature, for the early adopters to get in, the mainstream folks, and the laggards. It's only as we get deeper into it that we even begin to understand the governance ideas.

So your questions are spot on, but early, because right now people are still dealing with SaaS and just beginning to figure out how to take advantage of computers as a service. I'm speaking from the point of view of the enterprise. I have a few developers dabbling in PaaS, and people are figuring out what to do.

All of this, as I suggest, it is going to force IT to rethink what its value proposition is and how it does it. It's going to be interesting to see whether they can do it themselves, or whether the service provider steps up and does richer, more complex complete offerings. That will take some time, and we'll see new fangled forms of outsourcing, if you will, that are more “cloud oriented.” I don't know what that would look like either, because that's not easy.

Gardner: As we discussed in the beginning, the movement to cloud is a progression. We started with the Internet and the Web moving into applications and portals. We had to peel the onion then. We keep hitting more layers. We came up with optimization and wide area network, acceleration technologies, distributing different aspects of the Web application to the edge, the data, the graphics, and so forth. Those same sorts of technologies and solutions pertain to the cloud.

Gillett: Absolutely. If you think about it, what this fundamentally means is that developers will have to rethink how they write applications architecturally and think about where they're trying to deliver the business experience to. That means thinking about the network end to end, and thinking globally, if you're a company that has to worry about global reach. Then that means, ultimately thinking about architecturally where things belong in the network.

Static content doesn't change much. You want that out as close as possible to the user to reduce latency and the uncertainty about long-haul transit. Furthermore, from the point of view of all the combined entities providing backbone Internet, you need to decide whether you want to keep chewing up long-haul pipe to move the same video or content transcontinental, when for a low cost, you could stick it locally.

Gardner: That becomes more the case when you have multiple enterprises accessing the same set of core application.

Gillett: Absolutely. Remember, this isn't just enterprises. It might be enterprises trying to reach millions of consumers.

You start thinking about how to distribute application logic, to create fast response, good business service levels and things like that

That's one example of the static content. Think about dynamic content. Think about the fact that if I'm selling something like concert tickets or airline seats, there are a limited number of them. I can sell the first batch of them at the edge without having to go back to the core database, as long as I'm not selling a specific seat.

It's a little tricky here, but if you're selling a thousand widgets, you can cache at the edge the application logic that says, "Sell the first 800 from the edge, and then flip a switch and then we'll back haul to sell the last 200, so we don't oversell."

You start thinking about how to distribute application logic, to create fast response, good business service levels and things like that, despite the fact that you think, "We're just selling one thing and all that has to come back to a central database." Not necessarily. So, you really start to think about that. You think about how to prioritize things across the network. This is more important than that. All of it is basically fighting the laws of physics, also trying to figure out the speed of light, and all sorts of computation stuff.

Most cost-effective way

It's also trying to figure out the most cost-effective way to do it. Part of what we're seeing is the development and progression of an industry that's trying to figure out how to most cost-effectively deliver something. Over time we'll see changes in the financial structures of the various service providers, Internet, software or whatever, as they try to find the right way to most cost-efficiently deliver these capabilities.

Gardner: So, we need to rethink governance into an abstraction of cloud. We'd also need to rethink the architecture of the application from its inception and in the use cases that are more likely in a cloud environment.

Gillett: That's right. Let's not scare anybody by saying, "I can't do anything until I do all that stuff." We're trying to describe the journey that they're going on.

If you could sit down and write an application today from an enterprise that's Web facing, take a look at the conceptual architecture of what you're doing, and think about what capabilities belong where. Is there some stuff that would be better off at a service provider, not just for cost reasons, but for performance reasons? What kind of service provider?

I look at applications and content acceleration service offerings, I look at hosting of Web apps, and then I look at computer as a service, and to me it look like they're blurring a little bit. Amazon is out there offering a content-delivery network. The hosters are partnering with folks who do app acceleration or content delivery. I'm looking at the app delivery and content acceleration guys, and asking, "When are they going to help me with the hosting? They've already got three quarters of my workload?"

It's a very interesting time to create new applications. I want to reinforce the point you were hinting at, which is, it's one thing to take an existing workload and figure out what the best thing to do with it is across this increasing spectrum of choices.

It's another thing to start at the beginning, as you begin to architect the application and say, "What kinds of abstractions or modular architectures are loosely coupled to purchase, could I improve the performance of this application in the long run, or increase my options down the road for taking advantage of service providers.

If you have the luxury of a blank sheet of paper, there are some interesting possibilities to think about, but we're really early. So, don't get too hung up on sharpening your pencil and trying to figure it out. Just make the best set of choices you can make right now and keep running.

Gardner: We're just about out of time, but for those organizations that have this spectrum of options, that like what they see somewhat out in the future, how do they get started? How they put themselves in position to take advantage of it, sooner rather than later and perhaps gain a competitive advantage as a result?

Gillett: A lot depends on where you sit within the organization. For folks who are responsible for end-user applications or who purchase them, it's making sure that SaaS options are in the mix, and not just the

A lot depends on where you sit within the organization.

end-user applications, things like an Avalara tax service. They're a modular plug-in to your overall application architecture. I dubbed this one point "components as a service," because it's really end-user facing, but it feeds that.

For developers, there are two sets of choices. Look at PaaS. Are there reasons to think about Microsoft Azure or a Google App Engine as a place to execute your code? And, there are others -- Salesforce.com and LongJump -- but sometimes it involves development tools over the Web, rather than your local tools -- quite a diverse spectrum of things.

The other developer options are that you don't want to deploy to, in effect, an app, server as a service. You want the infrastructure. Then, look at IaaS. Then, you're looking at Rackspace's offerings under the Mosso business unit. I can't remember their new name, but Slicehost was somebody they acquired. You have ServePath's GoGrid offering. You have Amazon EC2, where you go and say, "Hey. I set up a bunch of virtual servers. Here is the VLAN to connect them." It's like working with raw infrastructure, except virtual.

Then, yet another role within IT is the IT infrastructure operations person. If you needs some more compute capacity for the test and dev guys, for that odd batch job, or temporary thing, or maybe you have some workloads that you think steady state -- that run 24/7/365 -- you want them at a service provider. Then, you also go look at the computer-as-a-service offerings.

Interestingly, there is a different set of offerings, if you're thinking about running conventional back-office apps, versus the Web stuff. Then, you're looking more at Rackspace and Mosso, and you're looking at SAVVIS. You want servers that, when you pile up a lot of virtual servers on one box, you get a nice mission-critical enterprise underneath it, trying to catch it, versus Web app servers that funky developers are playing with. They're running tens of thousands of instances. They want the cheapest boxes that they can find, and so they're two different value propositions.

Gardner: So, the common theme here, it sounds like, is to experiment, try a bunch of different things, but keep in mind that if one of those experiments works, you're going to want to transition that into a mission-critical, enterprise-caliber service.

Gillett: Yeah, and I want to come back to something you were saying, which is, it is about governance? One of the things that we're telling our infrastructure and operations guys is to get in early ahead of the developers.

Don't let them run willy-nilly and pick a bunch of services. Work with the enterprise architect, the IT architect, to identify some services that fit your security and compliance requirements. Then, tell the developers, "Okay. Here is the approved ones that you can go play with, and here's how we're going to integrate them."

So, proactively, get out in front of these people experimenting with their credit cards, even if it's uncomfortable for you. Get in early on the governance. Don't let that one run away from you.

Gardner: Well, great. We're taking a look at cloud computing through the lens of vision versus reality. Clearly, there's an awful lot happening, and I think that will continue for some time.

This is Dana Gardner, principal analyst at Interarbor Solutions. You've been enjoying a special video podcast production of BriefingsDirect. We've been joined by Frank Gillett, vice president and principal analyst at Forrester Research. Thank you, Frank.

Gillett: Thank you, Dana.

Gardner: Thanks again for listening, and come back next time.

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Transcript of a BriefingsDirect video podcast with Frank Gillett of Forrester Research on the state of cloud computing and prospects for the future. Copyright Interarbor Solutions, LLC, 2005-2000. All rights reserved.