Cloud Computing, The Next Evolution

On November 4-5 2009, I attended a good CSC Leading Edge Forum on Cloud Computing.

The kickoff by W. Brain Arthur was a highlight for me (he is the author of The Nature of Technology). He provided an excellent conceptualization of cloud and it’s place in overall technology advancement and body of world innovation. Essentially, he sees cloud in the 2000’s as the next evolution from the Internet in the 1990s. As such, the cloud is computational power in the “virtual world,” providing a host of benefits including easy access, connectivity, and cost efficiency. He sees the cloud coming out of the initial frenzy and into a industry sort-out that will result in a stable build out.

Another great speaker was David Moschelle from CSC who talked about the myriad benefits of moving to cloud such as scalability, self-service, pay as you go, agility, and ability to assemble and disassemble needed components virtually on the fly. With the cloud, we no longer have to own the computing means of production.

Of course, we also talked about the challenges, particularly security. Another speaker also spoke about the latency issues on the WAN with cloud, which currently limits some usability for transactional processing.

Over the course of the forum numerous examples of success were given including Bechtel achieving a 90% cost advantage by moving storage to the cloud. Others, such as Amazon were able to put up new web sites in 3 weeks versus 4-6 months previously. Also, Educational Testing Service as another example is using cloud bursting, since they tend to run data center at known cyclical peaks.

Others connected cloud with social computing: “the future of business is collaboration, the future of collaboration is in the cloud.”

In terms of the major types of cloud, I thought the relationship between responsibility and control was interesting. For example:

• Software as a Service -- more “freedom” from responsibility for service, but less freedom to change service (i.e. less control)
• Platform as a Service – (Hybrid)
• Infrastructure as a Service – less freedom from responsibility for actual end-user services, more freedom to change service provision (i.e. more control)

In all cases, the examples demonstrated that organizations do not have a lot of leeway with SLAs with cloud providers. It’s pretty much a take it or leave it proposition. With liability to the vendor for an outage being limited to basically the cost of the service, not the cost of lost business or organizational downtime. However, it was noted that these mega-vendors providing cloud services probably have a better availability and security than it’s customers could have on their own. In other words, an outage or security breach will either way cost, and where is there a greater chance of this happening?

Sort of a good summary was this: “Leading companies are moving development/test and disaster recovery to the cloud,” but then this will reverse and companies will actually move their production in the cloud and provide mainly a back up and recovery capability in house. This is similar to how we handle energy now, were we get our electricity from the utilities, but have a back-up generator should the lights go dark.

Cloud Computing, The Next Evolution

Zipcar = Cloud Computing

No, not exactly. But they actually do have a lot in common in that they are both about sharing resources and using them to achieve cost-savings and flexibility.

An article in Fortune Magazine (September 14, 2009) on Zipcars really got me thinking about this.

With cloud computing, we are sharing our IT infrastructure, storage, and/or applications with others and using the services of cloud providers. It is one big virtual environment, where instead of everyone having their own technologies and applications, we make use of shared resources and we meet our information technology needs on demand and pay only for what we use.

Zipcars has the same-shared model as the cloud, and shifting toward this new paradigm is going to help preserve the environment.

Usage: Like cloud computing, Zipcars provides for the use of automobile when you need one and you pay by the hour or day, according to what you use. It’s flexible, saves money, and cuts down on the number of vehicles on the road and therefore on the pollution associated with them.

Cost: Both Zipcars and cloud computing cost pennies on the dollar. For a basic $50 membership and $11.25 an hour you can drive a Zipcar (note: drivers who give up their own cars save an average of $800 per month). For 12-25 cents per month you can store a gigabyte in the cloud or for 10 cents-$1.25 an hour you can process tasks on the Elastic Computer Cloud (EC2).

Functionality: Zipcars move people around and cloud computing moves data.

Centralization: Zipcars are co-located in “company created ‘pods’ or group of cars in parking lots or garages,” and cloud computing services are centralized in data centers of large cloud providers (like Google, Amazon, Microsoft, and IBM)

Market: Zipcars has grown already to 325,000 members and is growing 30% a year with a overall market for shared vehicles expected to balloon to $800 million over the next five years (Fortune), and business IT spending on cloud computing is expected to rise from $16 billion last year to $42 billion by 2012 (IDC).

Users: Major companies (not just individuals) are using Zipcars—so far “about 8,500 companies have signed up, including Lockheed Martin, Gap, and Nike.” And brand name companies are signing up for cloud computing, such as NY Times, NASDAQ, Major League Baseball, ESPN, Hasbro and more. (http://www.johnmwillis.com/other/top-10-entperises-in-the-cloud/).

Going green: Each shared Zipcar “takes up to 20 cars off the road as members sell their rides or decide not to buy new ones.” Each move to cloud computing makes some or all of organizations unique servers, storage devices, and applications obsolete.

The trend: With the transportation market, the future will be “a blend of things like the Zipcar, public transportation, and private car ownership (according to Bill Ford), and with the IT industry, the future will be a combination of cloud computing, managed services, and in-house IT service provision.

Zipcars and cloud computing are benefiting from the new shared services model driven by cost-savings, flexibility, efficiencies of allotment, and eco-consciousness. These are driving change in our usage of transportation and computing for the better.

Zipcar = Cloud Computing

Andy Blumenthal Talks about Cloud Computing

Here is the podcast from MeriTalk Silverlining Series (August 2009)

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Andy Blumenthal Talks about Cloud Computing

Andy's Cloud Computing Presentation on MeriTalk

Introduction

First let me start out by saying that cloud computing brings us closer than ever to providing IT as a utility such as electricity, where users no longer need to know or care about how IT services are provided, and only need to know that they are reliably there, just like turning on the light. This is the subscription approach to using information technology, where base services are hosted, shared, and you pay only for what you need and use.

In cloud computing, there are a number of basic models. First, in public clouds, we have a multi-tenant, shared services environment with access provided over a secure Internet connection. In contrast in a private cloud, the IT shared services is behind the company’s firewall and is controlled by in-house staff. Then, there is also a community cloud, which is an extension of the private cloud, where IT resources are shared by several organizations that make-up a specific community.

The advantage to cloud computing—whether public or private—is that you have a shared, enterprise-wide solution that offers a number of distinct advantages:

1. Efficiency–with cloud computing, we build once and reuse multiple times—i.e. we share resources—rather than everyone having their own.
2. Flexibility–we are more nimble and agile when we can quickly expand or contract capacity on-demand, as needed—what some call rapid elasticity. Moreover, by outsourcing the utility computing elements of our IT infrastructure, we can focus our internal efforts on building our core mission areas.
3. Economy (or economy of scale)–it’s cheaper and more cost effective when we can tap into larger pools of common resources maintained by companies with subject matter expertise. They then are responsible for ensuring that IT products are patched, upgraded and modernized. Moreover, we pay only for what we actually use.

Issue

So cloud computing sounds pretty good, doesn’t it? What then is the big issue? Plain and simple it comes down to—Is cloud computing effective for the organization? And what I mean by that is a few things:

• First is customization, personalization and service: when you buy IT computing services in this shared services model, do you really get what you need and want – or are you just getting a canned approach, like the Model T that came in one color, black? For example, when you purchase Software as a Service are you getting the solution you need for your agency or the one built for someone else?
• Next is security, privacy, and disaster recovery. This is a big deal because in a public cloud, you are capturing, processing, sending, and storing data outside of your proprietary infrastructure. This opens the door for theft, manipulation, or other ways of our data being compromised by criminals, cyber-terrorists, and even hostile nation-states.
• Third, and maybe most important, is cultural, especially in a very individualistic society, like ours, where people are used to getting what they want, when they want, without having to share. For example, we prefer owning our own vacation home to having a time-share. We love the concept of a personal home theater. Everyone now has a personal cell phone, and the old public telephones that were once on every corner are now practically extinct. And most people prefer driving their own cars to work rather than using mass transit—even though it’s not environmentally friendly. So the idea of giving up our proprietary data centers, application systems, the control of our data, in a cloud computing model, is alien to most and possibly even frightening to many.

The Reality

So how do we harmonize the distinct advantages of cloud computing—efficiency, flexibility, and economy—with the issues of customization, security, and culture?

The reality is that regardless of customization issues, we can simply no longer afford for everyone to have their own IT platforms—it’s wasteful. We are recovering from a deep financial recession, the nation has accumulated unprecedented levels of debt, and we are competing in a vast global economy, where others are constantly raising the bar—working faster, better, and cheaper.

Moreover, from a technology standpoint, we have advanced to where it is now possible to build an efficient cloud computing environment using distributed architecture, virtualization/consolidation, and grid computing.

Thirdly, on a cultural level, as individualistic as we are, it is also true that we now recognize the importance of information sharing and collaboration. We are well aware of the fact that we need to break the stovepiped verticals and build and work horizontally. This is exemplified by things like Google Docs, SharePoint, Wikipedia, and more.

In terms of security, I certainly understand people’s concern and it is real. However, we are all already using the cloud. Are you using online banking? Are you ordering things online through Amazon, Overstock or other e-commerce vendors? Do you use yahoo or Google email? Then you are already using the cloud and for most of us, we don’t even realize it. The bottom line on security is that every agency has to decide for itself in terms of its mission and ability to mitigate any risks.

How to Choose

So there are two questions then. Assuming—and I emphasize assuming—that we can solve the security issues with a “Trusted Cloud” that is certified and accredited, can we get over the anxiety of moving towards cloud computing as the new standard? I believe that since the use case—for flexibility, economy, and efficiency—is so compelling, that the answer is going to be a resounding yes.

The next question is, once we accept the need for a cloud computing environment, how do we filter our choices among the many available?

Of course I’m not going to recommend any particular vendor or solution, but what I will do is advocate for using enterprise architecture and sound IT governance as the framework for the decision process.

For too many years, we based our decisions on gut, intuition, politics, and subjective management whim, which is why statistics show that more than 82% of IT projects are failing or seriously challenged.

While a full discussion of the EA and governance process is outside the scope of this talk, I do want to point out that to appropriately evaluate our cloud computing options, we must use a strong framework of architecture planning and capital planning and investment control to ensure the strategic alignment, technical compliance, return on investment, and risk mitigation—including of course security and privacy—necessary for successful implementation.

How Cloud Computing fits with Enterprise Architecture:

As we move to cloud computing, we need to recognize that this is not something completely new, but rather an extension of Service Oriented Architecture (SOA) where there are service providers and consumers and applications are built by assembling reusable, shared services that are made available to consumers to search, access, and utilize. Only now with public cloud computing, we are sharing services beyond the enterprise and to include applications, data, and infrastructure.

In terms of a transition strategy, cloud computing is a natural evolution in IT service provision.

At first, we did everything in-house, ourselves—with our own employees, equipment, and facilities. This was generally very expensive in terms of finding and maintaining employees with the right skill sets, and developing and maintaining all our own systems and technology infrastructure, securing it, patching it, upgrading it, and so on.

So then came the hiring of contractors to support our in-house staff; this helped alleviate some of the hiring and training issues on the organization. But it wasn’t enough to make us cost-efficient, especially since we were still managing all our own systems and technologies for our organization, as a stovepipe.

Next, we moved to a managed services model, where we out-sourced vast chunks of our IT—from our helpdesk to desktop support, from data centers to applications development, and even to security and more.

Finally, the realization has emerged that we do not need to provide IT services either with our own or contracted staff, but rather we can rely on IT cloud providers who can offer an array of IT services, on demand, and who will manage our information technology and that of tens, hundreds, and thousands of others and provide it seamlessly over the Internet, so that we all benefit from a more scalable and unified service provision model.

Of course, from a target architecture perspective, cloud computing really hits the mark, because it provides for many of the inherent architecture principles that we are looking to implement, such as: services interoperability and component reuse, and technology standardization, simplification, and cost-efficiency. And on top of all that—using services on a subscription or metered basis is convenient for the end-user.

Just one last thing I would like to point out is that sound enterprise architecture and governance must be user-centric. That means that we only build decision products that are valuable and actionable to our users—no more ivory tower efforts or developing shelfware. We need to get the right information to the right decision makers to get the mission accomplished with the best, most agile and economical support framework available.

Andy's Cloud Computing Presentation on MeriTalk

The Microgrid Versus The Cloud

It’s strange how the older you get, the more you come to realize that life is not black and white. However, when it comes to technology, I once held out hope that the way to the future was clear.

Then things started to get all gray again.

First, I read a few a few weeks ago about the trends with wired and wireless technologies. On one hand, phones have been going from wired to wireless (many are even giving up their landlines all together). Yet on the other hand, television has been going the other way—from wireless (antennas) to wired (cable).

Okay, I thought this was an aberration; generally speaking technology advances—maybe with some thrashing about—but altogether in a specific direction that we can get clearly define and get our arms around.

Well, then I read another article—this one in Fast Company, July/August 2009, about the micogrid. Here’s what this is all about:

“The microgrid is simple. Imagine you could go to Home Depot and pick out a wind or solar appliance that’s as easy to install as a washer/dryer. It makes all the electricity your home needs and pays for itself in just a few years. Your home still connects to the existing wires and power plants, but is a two-way connection. You’re just as likely to be uploading power to the grid as downloading from it. You power supply communicates with the rest of the system via a two-way digital smart meter, and you can view your energy use and generation in real time.”

Is this fantasy or reality for our energy markets?

Reality. “From the perspective of both our venture capital group and some senior people within GE Energy, distributed generation is going to happen in a big way.” IBM researchers agree—“IBM’s vision is achieving true distributed energy on a massive scale.”

And indeed we see this beginning to happen in the energy industry with our own eyes as “going green” environmentalism, and alternate energy has become important to all of us.

The result is that in the energy markets, let’s summarize, we are going from centralized power generation to a distributed model. Yet—there is another trend in the works on the information technology side of the house and that is—in cloud computing, where we are moving from distributed applications, platforms, storage, and so forth (in each organization) to a more centralized model where these are provisioned by service providers such as Amazon, Google, Microsoft, and IBM—to name a just a few. So in the energy markets, we will often be pushing energy back to the grid, while in information technology, we will be receiving metered services from the cloud.

The takeaway for me is that progress can be defined in many technological ways at one time. It’s not black or white. It’s not wired or wireless. It’s not distributed or centralized services. Rather, it’s whatever meets the needs of the particular problem at hand. Each must be analyzed on its own merits and solved accordingly.

The Microgrid Versus The Cloud

The Cloud is a Natural Evolution of IT

Cloud computing is bringing us closer than ever to providing IT as utility, where users no longer need to know or care about how the IT services are provided, and only want to know that they are reliably there—just like turning on the light.

This rent-an-IT model of cloud computing can apply to any portion of an organization’s IT architecture, as follows:

• Service architecture—for application systems, there is “software as a service” (SaaS) such as Google Apps suite for office-productivity or Salesforce.com for customer relationship management. And for developing those systems, there is “platform as a service” (PaaS) such as Google Apps Engine (GAE) or the Defense Information Systems Agency (DISA) Rapid Access Computing Environment (RACE).
• Information architecture—for storing the data used in systems, there is “storage as a service” such as Amazon’s Simple Storage Service (S3).
  
• Technology architecture—for hosting systems, there is “infrastructure as a service” such as Amazon’s Elastic Compute Cloud (EC2)
  

The big advantage to using hosted IT or cloud computing is that it provides on-demand information technology—again like your electricity usage; the juice is there when you need it. Additionally, by outsourcing to specialist IT providers, you can generally get more efficiency, economy, and agility in providing IT your organization.

Of course, there are challenges that include ownership, security, privacy, and a cultural shift from a vertical (stovepiped) to horizontal (enterprise and common services) mindset.

From my perspective, cloud computing is a natural evolution in our IT service provision:

1. At first, we did everything in-house, ourselves—with our own employees, equipment, and facilities. This was generally very expensive in terms of finding and maintaining employees with the right skill sets, and developing and maintaining all our own systems and technology infrastructure, securing it, patching it, upgrading it, and so on.
   
2. So then came, the hiring of contractors to support our in-house staff; this helped alleviate some of the hiring and training issues on the organization. But it wasn’t enough to make us cost-efficient, especially since we were still managing all our own systems and technologies for our organization as a stovepipe.
3. Next, we moved to a managed services model, where we out-sourced vast chunks of our IT—from our helpdesk to desktop support, from data centers to applications development, and even to security and more. But apparently that didn’t go far enough, because we were still buying, building, and maintaining our own IT instances for our organization, but now employing call centers and data centers in far-flung places.
4. And finally, the realization has emerged that we do not need to provide IT services either with our own or contracted staff, but rather we can rely on IT cloud providers who will manage our information technology and that of tens, hundreds, and thousands of others and provide it seamlessly over the Internet, so that we all benefit from a more scalable and unified service provision model.
   

The cloud computing model takes the CIO/CTO and their staffs out of the fire-fighting mode of IT management and into the drivers seat for managing IT strategically, innovatively, and with a focus on the specific mission needs of their organization.

The Cloud is a Natural Evolution of IT

It’s Time to Invest in The Cloud

Cloud computing is "shorthand for centralized computing services that are delivered over the Internet (a.k.a. the 'cloud')."

Cloud computing is to traditional computing as electricity is to rubbing two twigs together to make a fire. Ok. That’s a little bit of an exaggeration, but not by much.

Years ago, people made a fire in their home or workspace which they continually fed to get warmth, lighting, and cooking; now they get these from centralized utilities that distribute it to them on an as needed basis. It’s a lot more efficient that way!

With cloud computing—it’s very similar. Currently, we have our own computing resources (like a hearth and firewood) that we must purchase and regularly maintain to do basic information technology processes for transaction and analytical processing, information sharing and collaboration. Now, we can get these functions from centralized computing facilities or data centers that distribute them, as needed on a subscription or metered basis. This gives us a predictable, stable source of computing at reduced prices, delivered via the Internet, when we want and need it, and without the hassle of having to purchase and maintain the hardware and software infrastructure. It’s a user-centric model!

Most of us with very busy and already complex lives inherently understand and are drawn to a model that is convenient and cost-effective. Flip on the switch and voila—lights/heat in one case or email, e-Commerce, and online entertainment in another.

To me, if its not a mission-specific or highly sensitive application, the question is why shouldn't it be in the cloud?

Fortune Magazine, 2 March 2009, on the rise of cloud computing juggernauts like Salesforce “a public company with a market capitalization of $3.5 billion, generates revenue of more than $1 billion a year—a 60% five-year annual growth rate—all from providing software subscriptions to business.”

Marc Benioff, their CEO says “We’ve always believe everything’s going into the cloud.”

Even detractors, like Larry Ellison, the CEO of Oracle, has helped fund Saleforce and another major cloud computing vendor, NetSuite. Moreover, “Oracle at the end of January lauched a new version of its online sales-management product…CRM on Demand” —so you see where Mr. Ellison is strategically placing some of his chips.

What about the other major application vendors?

“SAP said it would be releasing a software-as-a-service product in May…and Microsoft also has customer-management software available. IBM just named a cloud computing czar, and Google and Amazon are launching ambitions initiatives.”

So what’s holding up the transition?

Generally, the biggest cited obstacle to moving to cloud computing is security. Yet, “Salesforce has recorded only one security breach, a phishing attack in November 2007.” Moreover, because of the scope, scale, resources, and expertise that these vendors have, they can actually deploy and maintain a level of security that other organizations may only dream of.

Never-the-less, “companies remain committed to owning and hosting their own software and despite the tough economic times, they are loath to try something new, especially if it means making additional investments, however meager.”

But in the end “cost cutting and convenience are expected to prompt more firms to rent software that will be delivered over the Internet cloud.” IDC projects that by the end of 2009, “76% of U.S. organizations will use at least one web-delivered application for business use.”

Further, according to research firm, Gartner, "of the approximately $64 billion spent on business applications in 2008, about 10% or $6.4 billion, was spent on applications housed remotely and delivered via the Net."

The writing is on the wall or should I say in the cloud!

It’s Time to Invest in The Cloud

Disruptive Technologies

When companies get cozy, the marketplace gets innovative and from out of nowhere...a disruptive technology upends things.

We've seen this happen countless of times in big ways.

In the auto industry, 50 years ago neither GM nor Ford would have ever dreamed that they would lose their virtual monopoly on the U.S. auto industry to foreign car companies that would dislodge them with compact vehicles and hybrid engine technologies.

More recently in the music industry, Apple seized the day by combining functionality, stylishness and price on their iPod player with an accessible online iTunes music store.

More generally, the whole world of e-Commerce has stolen much of the show from the brick and mortar retail outlets with internet marketing, online transaction processing, supply chain management and electronic funds transfer.

Now, another disruption is occurring in the computer market. For years, the computer industry has made every effort to provide more raw computing power, memory, and functionality with every release of their computers. And Moore’s law encapsulated this focus with predictions of doubling every two years.

Now, on the scene comes the Netbook—a simpler, less powerful, less capable computing device that is taking off. Yes, this isn’t the first time that we’ve had a drive toward smaller, sleeker devices (phones, computers, and so on), but usually the functionality is still growing or at the very least staying the same. But with Netbooks smaller truly does mean less capable.

Wired magazine, March 2009, states “ The Netbook Effect: Dinky keyboard. Slow chip. Tiny hard drive. And users are going crazy for them.”

How did we get here?

“For years now, without anyone really noticing, the PC industry has functioned like a car company selling SUVs: It pushed absurdly powerful machines because the profit margins were high, which customers lapped up the fantasy that they could go off-roading, even though they never did.”

So what happened?

“What netbook makers have done is turn back the clock: Their machine perform the way laptops did four years ago. And it turns out that four years ago (more or less) is plenty.”

“It turns out that about 95%...can be accomplished through a browser…Our most common tasks—email, Web surfing, watching streaming videos—require very little processing power.”

The netbook manufactures have disrupted the computer market by recognizing two important things:

1. Computer users have adequate computing power for their favorite tasks and what they really want now is more convenience and at a price that says buy me.
2. Cloud computing is no longer an idea full of hot air, but it is a technology that is here now and can do the job for consumers. We can get our applications over the web and do not have to run them on our client machines. We can afford to have computers that do less, because the cloud can do more!

The result?

Foreign companies are running away with the Netbook market. “By the end of 2008, Asustek had sold 5 million netooks, and other brands together had sold 10 million…In a single year, netbooks had become 7 percent of the world’s entire laptop market. Next year it will be 12%.”

“And when Asustek released the Eee notbook, big firms like Dell, HP, and Apple did nothing for months.” They were taken off guard by miscalculation and complacency.

The future?

Of course, the big boys of computing are hoping that the netbook will be a “secondary buy—the little mobile thing you get after you already own a normal size laptop. But it’s also possible, that the next time your replacing an aging laptop, you’ll walk away into the store and wonder, ‘why exactly am I paying so much for a machine that I use for nothing but email and the Web?’ And Microsoft and Intel and Dell and HO and Lenovo will die a little bit inside that day.”

Implications for CIOs?

• End complacency and always be on the lookout for disruptive technologies and ways of doing business. There is always a better way!
• Hardware becomes a commodity over time and supplying the infrastructure for the organization is moving the way that electricity generation did at the turn of the 20^th century—to outside vendors that can do it more effectively and efficiently.
• Cloud computing means that commonly used software applications are available over the internet and can be provide the foundation business functionality for the organization.

The important future value add from the Office of CIO is in IT strategy, planning, governance, and mission-focused solutions. We need CIOs that are true leaders, innovative, and focused on the business and not just on the technology.

Disruptive Technologies

An Apple Turnover and Enterprise Architecture

CIO Magazine, 15 July 2008, has an interesting article called “A Tangled Paths for Macs in the Enterprise.”

The question posed: is it time to switch our enterprise from PCs to Macs?

“Apple—a synonym for awe-inspiring design and coolness—the antithesis to stodgy old corporate technology…the iPhone’s favorable reception portends something more: Some believe it could usher in the era of a more enterprise-friendly Apple.”

Macs have come a long way…

“Macs have increasingly become the consumers’ brand of choice. Apple shipped 2.3 million Macs in the second quarter of 2008, which represents a 51 percent growth for the product.”

Will Weider, the CIO of the Ministry of Health Care and Affinity Health System compares “Macs to luxury cars in a PC world of Chevy Impalas.”

Aside from the design wow factor and their innovativeness, historically, Macs are safer from viruses and have lower maintenance costs. All good reasons to consider an enterprise roll-over to Macs.

From a User-centric perspective, Apple understands how people use technology and their products seem to be the choice many would like to make!

What is holding Apple back in the enterprise?

Consumer-orientation: “Business adoption of Macs and Apple software has been sluggish, perhaps, in part, because this is a low priority for Apple. While Apple, of course, deals with businesses, it remains a consumer-oriented company, by the numbers.”

Technology refresh schedule: “Apple does not provide technology roadmaps…what’s worse they make their hardware incompatible with the previous version of the operating system, and their schedule is impossible to keep up with.”

So what is an advantage to Apple in the consumer marketplace—catering to consumer needs and rapid innovation—is a boondoggle in the business environment. Ah, a double edged sword indeed.

Further, a wholesale switch-out to Apple in a Windows shop typically involves desktops, servers, operating systems, and reworking oodles of legacy systems; this is quite a costly endeavor that is not easy to justify in resource constrained organizations.

Further, one of the core principles of enterprise architecture is standardization in order to reduce complexity and achieve cost-efficiencies, so introducing new platforms or a mixed environment is frowned upon.

In the future, as more and more applications become commoditized and moved to the Internet, thereby reducing the cost of transition to Apple, perhaps Apple will have a better chance to challenge Microsoft on the business playing field.

An Apple Turnover and Enterprise Architecture

The Future of Cloud Computing

Cloud computing—“a style of computing where IT-related capabilities are provided ‘as a service’, allowing users to access technology-enabled services ‘in the cloud’ without knowledge of, expertise with, or control over the technology infrastructure that supports them.” (Wikipedia)

In an article in InfoWorld, 7 April 2008, called What Cloud Computing Really Means, Galen Gruman states that “Cloud computing encompasses any subscription-based or pay-per use service that, in real time over the Internet, extends IT capabilities.”

What’s an example of cloud computing?

An example of cloud computing is Google Apps that provides common business applications (similar to traditional office suits) online.”

How does cloud computing work?

In cloud computing, resources--either hardware or software--are available on-demand—as needed.

In the case of on-demand software, application service providers (ASPs) offer software as a service (SaaS). And for on-demand hardware or IT infrastructure (i.e. virtual data center capabilities such as servers or storage), the offering takes the form of utility computing. In both cases, technology resources are served up on a pay-as-you-go or metered basis, similar to the way a public utility would charge for electricity, oil/gas, telephone, water, and so on.

The cloud computing model is similar to service oriented architecture where there is a service provider and consumer, and here the Internet functions the basic service broker.

Cloud computing is has a basis in technology virtualization in which service providers "hide the physical characteristics of computing resources from their users [consumers]." (Wikipedia)

What are the major advantages of cloud computing?

Cost—one of the big advantages of this computing model is that the upfront IT investment cost is little to none, since the IT assets are in essence being rented.

Scalability—customers have the ability to use more resources when they have a surge in demand and can scale back or turn off the spigot when the resources are not needed.

Flexibility—As IT capabilities get updated by the service provider, consumers in the cloud model can make immediate use of them and benefit sooner than if they had to stand up the capabilities themselves.

Mission focus—The enterprise can stay focused on core mission and mission support capabilities and in essence easily outsource business support functions, where the service provider is responsible for enabling more generic (not strategic or differentiators) business capabilities.

What are the enterprise architecture implications?

Cloud computing can play an important role in focusing IT solutions on strategic mission requirements, simplifying and standardizing our IT infrastructures by outsourcing capabilities, utilizing a services oriented architecture (SOA) model where common business services are served up by providers and consumed by the enterprise, and more effectively managing costs.

What is the future of cloud computing?

Obviously, there are security implications, but as Galen Gruman states: “as SOA and virtualization permeate the enterprise, the idea of loosely coupled services running on an agile, scalable infrastructure should make every enterprise a node in the cloud. It’s a long-running tend with a far-out horizon. But among big metatrends, cloud computing is the hardest one to argue with in the long term.

The Future of Cloud Computing

Lessons from GE and Enterprise Architecture

General Electric (GE) is one of the largest, most successful, and most respected companies in the world. What lessons can we learn from their CIO to more successfully architect and manage our enterprises?

Fortune Magazine, 21 July 2008, reports on an interview with Gary Reiner, the CIO of GE, who has been in his role for a dozen years and oversees a $4 billion IT budget.

Reverse auctions

In purchasing IT, a major corporate expense these days, buying on reverse auction can save your enterprise mega bucks. A reverse auction is one where the purchaser puts out the specs for what they are looking to buy, and sellers bid their lowest price they are willing to sell at. (This is the opposite of a traditional auction where a seller puts out their wares for buyers to bid their highest price they are willing to purchase at). You want to avoid selling on auction at the lowest price (by differentiating you product so it isn’t treated as a commodity), but you want to purchase on reverse auction to get the best price for your purchases. In our organizations, perhaps enterprise architecture can partner with procurement and finance to leverage reverse auctions in planning for and purchasing major IT investments to reduce total cost of ownership (TCO) thereby more effectively managing scarce IT resource dollars i.e. getting more modernization/transformation for the IT dollar.

Process Improvement

GE’s CIO is responsible for Six Sigma, driving down deviances and defects in its processes. GE’s CIO says that “Six Sigma is a wonderful tool, but it is [just] a tool. What we are talking about as a company is outcomes, and the two outcomes we really want are product reliability and customer responsiveness…on the responsiveness side, it’s often less about Six Sigma and more about getting the right people in the room to map out [the processes for] how long it takes for us to do something…[and] take out those things in the way of meeting customer needs responsibly.” From an enterprise architecture perspective this is closely aligned to the idea of IT as an enabler for business, but one where business process improvement and reengineering comes first.

Information-based business

GE businesses are information-based. “In every one of our infrastructure businesses, we do something called remote monitoring and diagnostics, where we attach sensors to our equipment. So there are sensors in every locomotive, every gas turbine, every aircraft engine, [and] every turbo compressor. We’ve got software that resides with our customer or in our shops…that analyzes that data and is able in many cases to predict problems before they occur. We can prevent outages from occurring.” This information-based approach is similar to enterprise architecture and IT governance. The enterprise architecture is the information-based planning for the organization’s business and IT. And the IT governance is the information-based management and monitoring for selecting, controlling, and evaluating investments. Together enterprise architecture and IT governance are our “sensors” for predicting/planning the change and preventing problems/ensuring more successful IT project delivery.

Emerging technologies

GE sees a number of emerging technologies as having a major impact in coming years. The first, man-machine interface will evolve from keyboards and mice to “multitouch gestures,” such as “the ability to use your hands directly on screens.” Secondly, organic light-emitting diodes (OLED), “extremely thin screens…so thin that you’ll be bale to roll them up and fold them and carry them…you’ll be carrying around your screen.” And third, is cloud-computing, ‘having all your applications centrally located…[with] almost every document you create is for collaboration” and built on the web. In short, it’s really all about increased mobility of communications and ubiquity of information. Enterprise architecture should help facilitate the adoption of these new technologies.

Innovation

At GE speed to market is critical to bringing new product innovations to market, providing value to customers, and maintain an edge on the competition. IT is an enabler for new product development processes. In enterprise architecture, innovation is critical to breaking old paradigms and thinking out of the box and making real change that has contributes to significant improvements in organizational results. In product development, for example, I believe this involves everything from next generation computer aided design and manufacturing tools (CAD/CAM) to business intelligence systems and fusion engines for analyzing your customers and market changes to advances in automation and robotics for speeding and improving the manufacturing process.

GE is helping lead the way building sound enterprise architectures in corporate America!

Lessons from GE and Enterprise Architecture

Learning from the Private Sector and Enterprise Architecture

There is a terrific article in ComputerWorld, 17 July 2008, called “Pentagon’s IT unit seeks to borrow tech ideas from Google, Amazon, other companies.”

Defense Information Systems Agency (DISA) provides IT solutions to the Department of Defense. So what DISA does has to be state-of-the- art and best practice 24x7x365. Their mission depends on it!

To keep ahead of the curve, John Garing, DISA’s CIO and a retired Air Force colonel has been visiting with top tier private sector companies like Google, Amazon, UPS, Sabre, and FedEx to identify their best practices and incorporate them.

What has DISA learned from the private sector?

1. Cloud Computing

According to Garing, cloud computing is “going to be the way—it has to be. We have to get to this standard environment that is provisionable and scalable.”

To this end, “DISA has begin deploying a system [Rapid Access Computing Environment (RACE)] that is similar architecturally to Amazon’s Elastic Compute Cloud (EC2) technology, a web-based computing service that enables users to quickly scale up their processing capabilities.”

Using RACE, a soldier in the field will be able to use a client device (like a PDA) with web support and “dynamically access a wide range of information sources and meld together data,” such as blue force tracking, mapping of combatant locations, identification of aid stations, fuel and ammunition supplies, and so forth.

2. Elastic and flexible

DISA has to be prepared to handle the unexpected and this means they need to be able to flexible to meet a mission need or fight a war or two. Garing has found that companies like Amazon and Sabre have built their IT infrastructures to enable “elasticity and flexibility.”

3. Competing for business

Like the private sector that competes for market share, DISA sees itself and operates “like a business and produce[s] an attractive offering of IT services at a competitive price. They recognize that they “compete for the business it gets from other military agencies, which in some cases have options to use private-sector IT service providers.”

4. Process-driven and Speedy

Like enterprise architecture, which looks at both business processes and technology enablement, Garing is “interested in the processes that companies use to deploy technology, not just their technology itself.” DISA wants to learn how to speed an idea to a service in just a few months as opposed to the years it often takes in DoD.

DISA is learning that cloud computing will enable increased standardization through a “standard suite of operating platforms” as well as increased “deployment speed and agility.”

By being open to learning from the private sector, Garing is leading an enterprise architecture that is making for a better and more capable DoD.

Job well done DISA and a shining example for the rest of the federal space!

Finally, learning is not a one-way street and surely the interchange between the public and private sector can lead to improvements for all.

Learning from the Private Sector and Enterprise Architecture

An Online Only World and Enterprise Architecture

How long will it be before the internet becomes our primary means of storing personal data and running software applications (web-based)?

MIT Technology Review, 3 December 2007, reports that one core vision for the evolution of technology (that of Google) is that we are moving from a computer-based technical environment to an online-only world, where “digital life, for the most part, exists on the Internet”—this is called cloud computing.

Already, users can perform many applications and storage functions online. For example:

• “Google Calendar organizes events,
• Picasa stores pictures,
• YouTube holds videos,
• Gmail stores email, and
• Google Docs houses documents, spreadsheets, and presentations.”
  

Moreover, MIT Technology Review reports that it is rumored that Google is working on an umbrella application that will pull these disparate offerings together for a holistic cloud computing solution.

What’s the advantage of cloud computing?

A computer hard drive is no longer important. Accessibility to one’s information is limited only by one’s access to the internet, which is becoming virtually ubiquitous, and information can be shared with others easily. “The digital stuff that’s valuable… [is] equally accessible from his home computer, a public internet café, or a web-enabled phone.”

What are some of the issues with cloud computing?

• Privacy—“user privacy …becomes especially important if Google serves ads that correspond to all personal information, as it does in Gmail.”
• Encryption—“Google’s encryption mechanisms aren’t flawless. There have been tales of people logging into Gmail and pulling up someone else’s account.”
• Copyright—“one of the advantages of storing data in the cloud is that it can easily be shared with other people, but sharing files such as copyrighted music and movies is generally illegal.”
• Connectivity—“a repository to online data isn’t useful if there’s no Internet connection to be had, or if the signal is spotty.”

Still Google’s vision is for “moving applications and data to the internet, Google is helping make the computer disappear.” Human-computer interaction has evolved from using command lines to graphical user interface to a web browser environment. “It’s about letting the computer get out of our way so we can work with other people and share our information.”

Of course, Google’s vision of an online-only world isn’t without challenge: Microsoft counters that “it’s always going to be a combination of [online and offline], and the solution that wins is going to be the one that does the best job with both.” So Microsoft is building capability for users “to keep some files on hard drives, and maintain that privacy, while still letting them access those files remotely.”

I will not predict a winner-take-all in this architecture battle of online and offline data and applications. However, I will say that we can definitely anticipate that information sharing, accessibility, privacy, and security will be centerpieces of what consumers care about and demand in a digital world. Online or offline these expectations will drive future technology evolution and implementation.

An Online Only World and Enterprise Architecture