|By Chris Fleck||
|December 5, 2008 10:00 AM EST||
Chris Fleck's Blog
As described in part 1 of this blog series, the cloud is not the answer for every enterprise or every workload. This is true based on the current economics even without considering additional factors like security, control and SLA's. On the other hand the economics do point out a major cloud advantage when it comes to short term or variable workloads. (Pointed out by Michael Keen and Billy Marshall as well).
Perhaps this is not very surprising to many, but it does help to look at the numbers to put it in perspective. The largest Intrinsic cost advantage of the Cloud is the ability to share infrastructure among multiple customers ( i.e. Multi-Tenancy and/or Multi-Instance ). This comes into play when many customers have variable workloads that are not likely to overlay at the same time. A Cloud infrastructure can load balance this workload on-demand significantly reducing the cumulative infrastructure required to support N number of customer workloads.
A Premise only solution will typically deploy the infrastructure required to accommodate the anticipated peak demand plus a factor of safety. As a result excess capacity is built into every deployment even if it is rarely ( or never ) utilized. This formula gets very expensive for many scenarios such as implementing a redundant DR solution across multiple data centers or a retailer building infrastructure to accommodate the Christmas shopping season but paying for it all year. As noted in the Cloud 101 example however, when a premise based is well utilized it can be the most cost effective solution to stay with especially if the on-site facilities can accommodate the anticipated growth.
The following Premise Plus Cloud scenario provides an optimized view of where a fully utilized premise infrastructure is used for constant predictable workloads and the Cloud is used for the variable workload. To put some simple numbers to it based on the original example, let's assume that the constant workload is roughly equal to 5 Quadcore server capacity. The variable workload on the other hand peaks at 160% of the base requirement, however it is required only about 400 hours per year, which could translate to 12 hours a day for the month of December or 33 hours per month for peak loads such as test or batch loads.
The cost for a premise only solution for this situation comes to roughly 2X or $ 15,600 per year assuming existing space and a 20% factor of safety above peak load. If on the other hand you were able to utilize a Cloud for only the peak loads the incremental cost would be only $1,000. ( Based on Amazon EC2 )
|$ 15,600||Annual cost ( 2 x 7,800 from Part 1 )|
|Premise Plus Cloud|
|$ 7,800||Annual cost from Part 1|
|$ 1,000||Cloud EC2 - ( 400 x .8 x 3 )|
|$ 8,800||Annual Cost Premise Plus Cloud|
As noted for this example the server cost of using a Premise Plus Cloud solution could save as much as 44%. This does not factor in many costs that either the Premise only scenario or Premise Plus Cloud would face but those costs vary according to the situation. So the challenge is how to identify variable workloads that can be placed in the Cloud or split between premise and cloud.
The CSP ( Cloud Service Provider ) must also provide the proper infrastructure and remote administration to enable corporate IT to control and manage applications and images in the extended cloud as a virtual private network of their own. Economics aside, the CSP also needs to address the SLA's and security concerns that corporate IT has identified as prerequisites for adoption. Given the intrinsic cost savings possible as portrayed in this example, there is little doubt that CSP's will fill the gaps and the industry will move to Premise Plus Cloud solutions.
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In his General Session at 17th Cloud Expo, Bruce Swann, Senior Product Marketing Manager for Adobe Campaign, explored the key ingredients of cross-channel marketing in a digital world. Learn how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects).
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Nov. 30, 2015 10:45 AM EST Reads: 462
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Nov. 30, 2015 10:30 AM EST Reads: 354
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Nov. 30, 2015 10:00 AM EST Reads: 292
The cloud. Like a comic book superhero, there seems to be no problem it can’t fix or cost it can’t slash. Yet making the transition is not always easy and production environments are still largely on premise. Taking some practical and sensible steps to reduce risk can also help provide a basis for a successful cloud transition. A plethora of surveys from the likes of IDG and Gartner show that more than 70 percent of enterprises have deployed at least one or more cloud application or workload. Yet a closer inspection at the data reveals less than half of these cloud projects involve production...
Nov. 30, 2015 09:00 AM EST Reads: 506
Discussions of cloud computing have evolved in recent years from a focus on specific types of cloud, to a world of hybrid cloud, and to a world dominated by the APIs that make today's multi-cloud environments and hybrid clouds possible. In this Power Panel at 17th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists addressed the importance of customers being able to use the specific technologies they need, through environments and ecosystems that expose their APIs to make true change and transformation possible.
Nov. 30, 2015 08:00 AM EST Reads: 565
Microservices are a very exciting architectural approach that many organizations are looking to as a way to accelerate innovation. Microservices promise to allow teams to move away from monolithic "ball of mud" systems, but the reality is that, in the vast majority of organizations, different projects and technologies will continue to be developed at different speeds. How to handle the dependencies between these disparate systems with different iteration cycles? Consider the "canoncial problem" in this scenario: microservice A (releases daily) depends on a couple of additions to backend B (re...
Nov. 30, 2015 07:00 AM EST Reads: 470
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Nov. 30, 2015 07:00 AM EST Reads: 384
Container technology is shaping the future of DevOps and it’s also changing the way organizations think about application development. With the rise of mobile applications in the enterprise, businesses are abandoning year-long development cycles and embracing technologies that enable rapid development and continuous deployment of apps. In his session at DevOps Summit, Kurt Collins, Developer Evangelist at Built.io, examined how Docker has evolved into a highly effective tool for application delivery by allowing increasingly popular Mobile Backend-as-a-Service (mBaaS) platforms to quickly crea...
Nov. 30, 2015 06:00 AM EST Reads: 389
The Internet of Things is clearly many things: data collection and analytics, wearables, Smart Grids and Smart Cities, the Industrial Internet, and more. Cool platforms like Arduino, Raspberry Pi, Intel's Galileo and Edison, and a diverse world of sensors are making the IoT a great toy box for developers in all these areas. In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists discussed what things are the most important, which will have the most profound effect on the world, and what should we expect to see over the next couple of years.
Nov. 30, 2015 05:30 AM EST Reads: 496
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Day 2 Keynote at 17th Cloud Expo, Sandy Carter, IBM General Manager Cloud Ecosystem and Developers, and a Social Business Evangelist, wil...
Nov. 30, 2015 04:00 AM EST Reads: 609
PubNub has announced the release of BLOCKS, a set of customizable microservices that give developers a simple way to add code and deploy features for realtime apps.PubNub BLOCKS executes business logic directly on the data streaming through PubNub’s network without splitting it off to an intermediary server controlled by the customer. This revolutionary approach streamlines app development, reduces endpoint-to-endpoint latency, and allows apps to better leverage the enormous scalability of PubNub’s Data Stream Network.
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