A cloud of confusion?

N째 and issue date : 1006 - 01/04/2010 Circulation : 5000 Page : 32 Frequency : Monthly Size : 85 % CAPACITYMAGAZI_1006_32_312.pdf1498 cm2 Web Site: http://www.telcap.co.uk/

cloud

A

confusion?

of

BEYOND THE HYPE OF CLOUD COMPUTINGARETHE REALITIES OF PROVISIONING MANAGEMENT REGULATION PROVIDINGSTANDARDS ANDSOON ,

-

,

BILLING COST ,

HOST OFISSUES WHICH NEEDTOBE

A

,

RESOLVED WRITES TIMPHILLIPS ,

Myopinion the problems

"

Asanindustry we' already making claims for thingslike `cloud box' Give me break

providing

:

of

cloud have not beensorted out yet

"

re

"

,

saysMac Scott associate director Xantus consultancy that advises global at

,

a

,

IT

departments are aware

problems

.

I'

m

community

these

of

a

,

,

aware Oftenthe business .

is

,

but

don' realisethe differences between what t

they can use and whatothers can use.

The claims for cloudareexaggerated "

Scott says because

of

,

a

a

PAULBRENNAN CEO ZEUS

notsure thebusiness

leaders read the articles aboutcloud

between

Scott there' fundamental For work has be commodityoffering The moreyou makethe specialise theharder For

s

a

,

mismatch

.

it

it

to

to

a

.

is

best-effort commodity service ,

.

offer then you can price

it

at

,

a

only works as

use cloud-based applications run their business gap that carriers cantry narrow but which working

that'

if

to

.

It'

s

a

to

,

alone theycan' close. t

,

,

s

a

standardoffering and work financial ,

not going

services

,

in

to

for example.

His prescription

is

to

is

,

to

computing

assurance that customers need they are to

t

,

peanuts.

On-demand computing capacity like this

,

Governance regulators can' currently help he points out because their culture

regulate marketsthat already exist While there standards cloud

to

,

economics work You want

establish standards for cloud computing.

standard

it

,

the confusion

which minimises cost andthe service and

going

"

.

in

enterprises on their technology strategies.

.

arenot

or

it

,

developing.

There also evidence that customers is

are confused

"

create cooperation

between providers and customers

1/3 Copyright (Capacity Magazine) No reproduction without authorisation

to

financialservices will stop themarket

in

government

for

.

Gartner reports that financial

services companies were generating 12%% of

analyst calls aboutcloud services more

N째 and issue date : 1006 - 01/04/2010 Circulation : 5000 Page : 33 Frequency : Monthly Size : 85 % CAPACITYMAGAZI_1006_32_312.pdf1498 cm2 Web Site: http://www.telcap.co.uk/

Zeus offers hardware andsoftware

believecustomers willnever

"I

be100%%cloudso

important

to

their webenabled applications and used bythe BBC BT and SeeTickets among others the cloud environment sees rolefor carriers whocanoffer expertise how manage provisioning and cost.

"Abusiness can inadvertently run up

willbe

it

beadaptable

to

manipulate the flow

traffic

of

to

is

,

.

In

,

"

it

a

in

MARK LEWIS EMEA MARKETING DIRECTOR RIVERBED TECHNOLOGY ,

to

a

than any othersector

Local and central

"

.

the

government public sector investigating how setup system secure cloud computing says Scott You in

is

to

a

.

,

can seehow thoseparties might do

group how

butthe chances

-

of

a

t

happen

m

it

But you won' see retailbank t

.

a

operating out thecloud mylifetime.

Specifically theproblemsthat cloud providers willencounter begin with the problems profitable scalethat Scott warns about but they will also include how providesecurity and regulatory "

in

of

,

of

,

to

compliance.

For MattDomo the CTO

bean inhibitor.

to

I

Parallels

at

,

of

.

of

a

of

to

,

.

a

have that.

to

of

it

-

optimisedcomputing profitablescale "

,

becreated cloudproviders

can only

if

automate the process

provisioning This .

of

Domo says business thatcan be profitable you relyon manual expertise enhances the ability thecarrier sell and promote software and services their market heexplains youmust automate promotions and billing with flexibility The idea try makethis have large easy for theadministrators fleet servers not efficient touch all those servers do simpletasks Our telecoms customersuseusbecause we isn'

t

a

,

,

"

if

.

of

to

to

"

,

,

but

.

is

to

to

.

If

I

a

of

it'

s

to

,

.

of

to

It

,

can

lead

virtual server sprawl

"

to

"

:

departments specifying virtual resources which are left generatebillsuntil someone notices profitable business for thecloudprovider but budget-buster for thecustomer. to

.

It'

s

a

a

,

Brennan explains that

which

thecompany

canprovidesomeconsistent

management overviewbetween thepublic and private cloud between user'

"

encompass what the company calls "

is

buytheir owncloud infrastructure which

to

to

to

virtualisation and automation products

,

"

.

.

"

.

t

of

availability and reliability.

An example theability for departments

,

,

is

to

,

.

itsportfolio

of

,

of

.

to

,

.

in

,

to

theysaythe constant pressure deploy new applications Cloud the end the oldway doingthings Butour customers need retain cost control sleep

:

in

"

.

"

hosting are part theway there headds they have theexpertise billing for example.

Yetcloud with its mix applications providers and services complicates the picture There aremany telcosworking out how best dothis They need get there theyjust don' know how We see two waves innovation Therewill be wave makingtraditional on-premise applications finding out how makethem work the cloud The next wave will be growing use SaaS Forboth those there are notmany people who have the knowledge make work buttelcos to

helpthem managetheir cloud

to

"

,

in

of

,

which has expanded

internal infrastructure

so wearedeveloping

,

usage Day says When we meet CIOs and ask themwhat causes them lose

,

,

I

I'

products

.

to

t

it

of

usecloud? don' seethat not saying cannever happening .

largeexpenditure

,

useand adaptable They coulddo ontheirown but they don' wanttheir

easy

Carriers who haveinvested

it

banks sittingdown and agreeing

of

to

,

of

"

working together

makethe servicemorescalable reliable

a

s

,

RETAINING CONTROL Automating provision and configuration and putting thoseabilities thehands your customers may be thesolution the ,

existing WANinfrastructure linking its data centres cloud resources best "

to

to

,

of

-

to

businesses

start-ups But when the .

department volunteers cede power cloudservices provider providers to

,

to

a

or

retain some level control Paul theCEO Zeus and David Day hisCTO haveidentified that some cloud

platforms

.

to

of

Brennan

help

at

,

,

the cloud

.

If

,

,

adopters are reporting that automated provisioning creates uncontrolled cost.

WHY ARE TELCOS INTERESTED IN CLOUD COMPUTING?

I'

,

d

.

If

I'

it'

m

of

I'

m

I

was carrier

I

a

I'

beable

d

,

be able

single point

.

s

a

same quality

it

,

not myown infrastructure customer want the serviceacross allthree

between publicand private clouds

worried whether

IT

or

needs

carriers because you are crossing the line

to

or

is

,

.

of

problem scale especially forcarriers who want bring services many small

its

to

placed manage cost over-runs You will have alliances between providers and

in

control.

of

to

manage that with

to

a

"

COMPLEXITIES OF OPTIMISATION Cloud computing also enhances the complexities optimisation andwhatsort of

,

of

service guarantees

offer

it

appropriate

is

to

customer MarkLewis EMEA .

a

,

marketing director Riverbed Technology has been providing hardware optimise at

,

De-commoditise the pipe

GrowICT

to

the WAN

walletshare

carriers andtheir customers.

to

Cloud makesoptimisation both more important andmore complex

Disrupt the disruptive

Lead ICT

ecosystem

"I

,

hesays.

believe that customerswillnever be

100%%

cloud so will beimportant it

to

be

adaptable That willbe animperative for .

still market-driven every vendor environment and the service provider .

It

is

a

of

,

The emphasis may varyby individual telco

,

butthese arethe prevailing drivers

tomorrow mightbe15guys with idea There willbe .

Source YankeeGroup Research :

2/3 Copyright (Capacity Magazine) No reproduction without authorisation

serviceproviders

.

a

host

a

good

new application

of

We have software-only a

N째 and issue date : 1006 - 01/04/2010 Circulation : 5000 Page : 34 Frequency : Monthly Size : 85 % CAPACITYMAGAZI_1006_32_312.pdf1498 cm2 Web Site: http://www.telcap.co.uk/

version

our WAN optimisation device

of

.

TELCOS ARE OPERATING IN

If

MULTI-FACETED MARKET

A

you' running virtualised data centreyou don' want piece every re

a

kitfor

t

a

of

customer sowe have created

Cloud

a

,

softwareonly

device.

Amazon Google Facebook YouTube Salesforce.com

"

,

While he does notpredict major uptake

cloudoutside theUS before 2012 Lewis whosecarrier customers include AT&T

of

,

,

,

,

,

Orange and BT

warnsthatthiswill

Media broadcast BBC Bertelsmann

change the relationship between carrier and customer The carrier who reselling

,

,

is

cloud services end

even just

or

,

Disney Sony Music

.

expected

performance not justadhere SLAs are no longer going

,

to

That was

it

.

day

In a

or

a

of

,

,

,

four years

.

,

,

,

befulfilledby

to

building infrastructure Three

ago youwould speak then get anoptimisation

Apple HTC Nokia Samsung Sony

SLAs.

to

,

"

,

Consumer electronics

provide application

to

,

NSN

cloud provider and theenterprise customer is

&

the delivery

at

,

software services Cisco Ericsson HP IBM Microsoft ,

therelationship between the

of

ICT equipment

Telecoms operator

&

or

Arguably an idealised view thetelco NOTthecentre the universe but must learn conversefluentlywith diversity market actors

the carrier and thenetwork. weekthough

would no longer be optimal Sooner

is

of

,

to

a

it

,

later

.

or

,

of

you wouldhave gobackandrevisit.

What our newproductsdo continuously

Source Yankee Group Research :

to

is

look

the network andunderstand

at

,

what' happening s

users If

,

thelevel

at

individual

of

sothey arecontinuously optimising.

you needextra bandwidth

tellsyou

it

,

risk

of

dataloss andthatnowwe have

In to

,

,

he warns.

transparency and accountability

ESTABLISHING TRUST Carriers will need establish trust before they can discuss business withcustomers regulated industries which Europe for example includes everybusiness that

submitted

.

It

in

,

"

"

a

that service providers sign

and service provider have

deeper

a

relationship andthe carrier and provider service levels single ,

are part

of

a

performance agreement.

That agreement

,

will alsoneed

stores customer data Using elastic .

to

infrastructure services

knowwho storingtheir data where stored and under whatconditions They will also need provide visibility that for

prohibits processing customer data many locations.

In

,

it

is

,

.

is

,

to

of

With

auditing purposes regulators especially the financial services industry .

,

in

who arepromising tighter regulation

lack

a

,

If

of

at

making

mightbethinking theyare

I

up astheygo along admits "

it

,

Russell Dietz

CTO

security specialist Safenet which has 25 ,000 enterprise customers 100 countries Today80%% electronic banking transfers flowthrough Safenet system Dietz observesthat decision move the cloud customers will bemandated ask questions that manycloudproviders cannotanswer making us take serious look whatdata gets stored which locations the risk that whether wereally understand the ,

at

,

.

in

of

a

.

in

a

,

to

to

,

to

.

It

is

a

at

in

in

,

,

.

is

to

of

of

,

is

to

more and more regulation

Weneed

.

a

Hesees

to

or

,

In

,

.

of

in

the

establish trustand industry standards that cloud computing to

national example

,

at

is

,

will

thisearlystagemost are

partial

voluntary Novell for .

or

promoting

,

a

set

of

standards.

3/3 Copyright (Capacity Magazine) No reproduction without authorisation

a

lot

technicalstandards and

of

lot

a

,

vendor-led aspirational statements but the problems havenot beensolvedyet. open doubtwhetherthis will solve the problem but Burton who alsoCEO of

,

to

is

,

,

hostingprovider knowsfromhis business that cloud cannot flourish until customershave confidence back up the of

a

,

to

level naivete As promises There the environment evolves thedemand "

.

.

is

a

of

is

,

a

waybehind the hype The industry must respond ahead widespreadadoption with code must recognisethat serious of

,

healthcare government financial services thelonger term this willsimply be expected Carriers who cannot provide this level accountability will not have place cloud services.

There are many initiatives led by the

require Yet

.

been

.

in

.

,

is

"

a

to

to

,

,

short-term fragmentation

.

in

is

with compliance specialist providers taking

business

"

.

.

trust Dietz says.

of

a

he

"

,

promises People theindustry need collaborate create interoperability so that customers canmovetheirdata Therehave

outstripping thelegal framework There latent demand and adoption stillsome

to

ensure wehave data-centricsolution theproblem

,

s

a

I

,

Compliance

have cloud providers begun

be

to

a

It'

complex Only recently putpeople on staffwho have the background establish trust We mustestablish set trusted data owners astheowner the information being required work with "

is

,

"

in

.

in

outside

European data protection lawspecifically

us butthere

to

it

,

to

,

in

clearstandards anywhere thechainbetween service provider and customer willstop business being done.

But those standards donot yetexist. was looking this myselffrom the

future

is

.

audits andinvestigatecomplaints

allvery well but

encompass security and governance regulatedindustries customerswill need .

to

in

,

to

"

governance model behind and wewill perform random

to

in

up on

would require the information

It

the carrier

if

of

,

he says.

But thiscanonly be effective

the

of

,

voluntary CloudIndustry Forum proposes self-certification code practice

IT

"

,

the UK AndyBurton the chairman

partners farmore than we did before exposes the inherent risk storing dataoutside your firewall trustour

.

a

It

users needcomfort.

And yet

at

"

Zeus Brennan warns against ,

the temptation

to

give

in to

thehype and

over-simplify some tough management and legalproblems end .

we

the

In

will take the cloud for granted

Cloud will just end up called somethinglike Web services he says but asanindustry we' already trying package this and making claims for things like cloud box' Give me break. .

"

,

,

re

to

,

'

in

"

.

-

a

a