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100-day Cloud Watch Update: Surveying the Cloud Computing Surveys for Adoption Trends

As I mentioned on the 12th, I’m dedicating 100-days worth of research sessions to explore “enterprise cloud computing considerations”.  My first topic is adoption trends:

• What are organizations doing, or planning to do, with cloud computing?
• What types of cloud computing environments are being used, considered and/or ignored?
• What industries are leading and lagging adoption?
• What use cases are being fulfilled, in part or in full, by cloud computing offerings?
• What are the major drivers and expectations?

I’m starting by surveying the cloud computing surveys.  Certainly, I expect to see security noted as a big concern, and operating expense versus capital outlay as a driver.  In fact, I’ll cover each of those points in later days, as business risk and economic considerations, respectively.   What I’m looking for in my survey of the surveys are observations, trends and even predictions, beyond the headlines.

The first (wildly time-consuming) thing I did was narrow down the body of work by date, source and depth of available information.  My curated list of surveys/papers:

• MWD Advisors: Success with Cloud Computing: a survey of IT architects 2H09 [related video]
• Forrester: EAs are Seeing the Beginnings of Cloud’s Impact on IT
• Google Communications Intelligence Report, October 2009
• Rackspace: No More Servers, November 2009
• BTGS Enterprise Intelligence Research Report, November 2009
• F5 Networks Cloud Computing Survey, June- July 2009 [pdf link]
• Kelton Research for Avanade: Early 2009 [pdf link] and October 2009, related analysis from Joe McKendrick
• CIO Magazine, June 2009: article and report download
• IBM Global CIO Study, 2009
• Economist Cloud Computing Debate, Nov 2009 [pdf link]
• ReliaCloud SMB Cloud Computing Survey, June-July 2009: press release, survey results registration

Next, I began working through the list.  Given my background and primary readership, I started with the enterprise architecture focused research.  My observations to date:

• MWD Advisors Survey: Cloud Computing is Fundamentally about Service Delivery & Consumption
• Forrester to Enterprise Architects: Use Cloud Phenomenon to Boost Role as Business Advisor

As well, I posted a few other Cloud Watch items:

• James Urquhart: Understanding Infrastructure 2.0
• City Government in the Clouds: Orlando confidently switches to Google e-mail
• reddit on Amazon EC2: Users and page views grow, cost shrinks

This week, I’ll continue working the above list.  If a finding in any of the above strikes you as important, surprising, or ridiculous, please share. 

Speaking of ridiculous, did you see the over zealous reaction to Gartner’s recent 2012 prediction?  First, the prediction:

“By 2012, 20 percent of businesses will own no IT assets. Several interrelated trends are driving the movement toward decreased IT hardware assets, such as virtualization, cloud-enabled services, and employees running personal desktops and notebook systems on corporate networks.  The need for computing hardware, either in a data center or on an employee's desk, will not go away. However, if the ownership of hardware shifts to third parties, then there will be major shifts throughout every facet of the IT hardware industry. For example, enterprise IT budgets will either be shrunk or reallocated to more-strategic projects; enterprise IT staff will either be reduced or reskilled to meet new requirements, and/or hardware distribution will have to change radically to meet the requirements of the new IT hardware buying points.”

For days afterwards, Twitter and the Industry Press were full of “Gartner says: 20% of businesses will be fully in the cloud by 2012”.  Of course, when you read past the first sentence, you’ll see Gartner is really calling out different ownership models: “However, if the ownership of hardware shifts to third parties, then there will be major shifts throughout every facet of the IT hardware industry.” 

I’m not disagreeing with Gartner’s prediction or the critical point on how a re-allocation of funding can support optimization and innovation.  What I am saying is beware the hype.  Read past the headlines.  As Gene Leganza points out: “[to be a trusted business advisor] architects must have a thorough understanding of the facts, subtleties, hype, and misinformation surrounding cloud computing…”

 

 

Follow the 100-day Cloud Watch on Twitter.

Business Ecology: Optimization for Innovation

As I mentioned in my 2010 plans, one of my projects this year is writing and advocacy for the OMG’s Business Ecology Initiative (BEI).  This morning, we launched the new Business Ecology Initiative blog, and I published the following overview post on Business Ecology, the Business Ecology Initiative and Business Ecology enablers. 

As you read the post, you’ll notice several themes common to my on-going writings (soapboxes), which is why getting involved with the BEI is a no-brainer for me.  The original post follows.

What is Business Ecology?

Business Ecology is a business-technology imperative focused on streamlining business processes, removing waste from technology portfolios, and adjusting resource consumption, to optimize business operations and foster business innovation.

As the world economy emerges from a painful recession, organizations are confronted with the challenge of retaining bottom-line diligence, while pursuing market sustaining and gaining innovation. 

For many organizations, the answer lies in harvesting savings and trapped value from existing processes, resources and capabilities.  To accomplish this, organizations are turning to Business Ecology. 

Business Ecology is not a one-time fix, but rather a management philosophy concerned with business vitality over time, balancing current conditions, optimization and innovation focus areas, resource allocations, and longer-term business motivations, capabilities and outcomes.

An important enabler of Business Ecology is the use of technology beyond automation. Business Ecology practitioners employ technology to identify, measure, model and drive business change. 

Business Ecology adoption and execution requires a cross functional team, comprised of business and information technology professionals. Key team capabilities include business process thinking, business performance measurement and analysis, financial analysis, IT architecture, portfolio management, service delivery and iterative project management.

Successful Business Ecology initiatives adopt the principles and values of Business Technology.  The team communicates with each other, sponsors and constituents in a common, business based language.  Measurement is defined and reported in business terms.  Funding and governance decisions and mechanisms reflect a shared resource, investment portfolio approach.

As Business Ecology teams progress, technology and business savvy is exchanged, fostering a greater understanding of each other’s challenges, skills and tools, which leads to a break in the longstanding, constraining, business and IT divide.  A byproduct of successful Business Ecology is business-IT integration.

The Chief Information Officer (CIO), given his/her unique position to view business processes, resource consumption, and technology portfolios across the organization, most often champions Business Ecology adoption and execution.  C-level executives, including the CEO, CFO and COO, sponsor Business Ecology initiatives.

What is the Business Ecology Initiative?

OMG, via the Business Ecology Initiative, leads the drive towards Business Ecology. 

The Business Ecology Initiative provides education, advocacy and member programs to enable organizations to achieve Business Ecology success, employ Actionable Architecture^TM, and carve a path to business-IT integration.

Actionable Architecture^TM brings transparent business methodology to the definition and delivery of common IT infrastructure, platforms and services.  Emphasized business attributes include quality, efficiency, compliance, agility, value, effectiveness, ease of use, sustainability and business goal traceability.

Business-IT Integration is the organizational model for business and information technology convergence.  This model promotes collaborative strategy, planning, architecture and execution; shared decision-making, business-tech savvy personnel and service delivery at the point of value generation.   

What enables Business Ecology?

Techniques: LEAN, Six Sigma, BPM, Value Chain Analysis, Actionable Architecture^TM , Business Technology, Agile, Modeling, Simulation, Business Measurement, and Sustainability Analysis

Technology: SOA, BPM, Cloud Computing, Event Processing, Analytics, Master Data Management (MDM), and Open Standards

Measurement Models: Business Process Maturity Model (BPMM), Sustainability Assessment Model (SAM)

People: C-level executives, business and information technology professionals, who embrace the philosophy of Business Ecology

 

[Disclosure: The Business Ecology Initiative is a client of my firm, Elemental Links.]

Julian Hyde in ACM on In-Flight Data Processing with Streaming SQL Technology

Julian Hyde, chief architect of SQLstream, and lead developer of Mondrian, has a great article in Communications of the ACM on Data in Flight.  The article provides an overview of streaming query engines, demonstrates simple queries using a clickstream example, compares streaming query engines to relational database technology, discusses the advantages of streaming, and concludes with additional streaming applications, including CEP.

On streaming query engines vs. relational database technology:

“The streaming query engine is a new technology that excels in processing rapidly flowing data and producing results with low latency. It arose out of the database research community and therefore shares some of the characteristics that make relational databases popular, but it is most definitely not a database. In a database, the data arrives first and is stored on disk; then users apply queries to the stored data. In a streaming query engine, the queries arrive before the data. The data flows through a number of continuously executing queries, and the transformed data flows out to applications. One might say that a relational database processes data at rest, whereas a streaming query engine processes data in flight.”

On CEP and Streaming, Hyde states:

“Application areas include complex event processing (CEP), monitoring, population data warehouses, and middleware. A CEP query looks for sequences of events on a single stream or on multiple streams that, together, match a pattern and create a "complex event" of interest to the business. Applications of CEP include fraud detection and electronic trading.

CEP has been used within the industry as a blanket term to describe the entire field of streaming query systems. This is regrettable because it has resulted in a religious war between SQL-based and non-SQL-based vendors and, in overly focusing on financial services applications, has caused other application areas to be neglected.”

Hyde concludes his article as follows:

“Streaming query engines are based on the same technology as relational databases but are designed to process data in flight. Streaming query engines can solve some common problems much more efficiently than databases because they match the time-based nature of the problems, they retain only the working set of data needed to solve the problem, and they process data asynchronously and continuously.

Because of their shared SQL language, streaming query engines and relational databases can collaborate to solve problems in monitoring and realtime business intelligence. SQL makes them accessible to a large pool of people with SQL expertise.

Just as databases can be applied to a wide range of problems, from transaction processing to data warehousing, streaming query systems can support patterns such as enterprise messaging, complex event processing, continuous data integration, and new application areas that are still being discovered.”

If you are even remotely interested in event processing, active information strategies and/or stream processing, I highly recommend reading Hyde’s article.

Recent Cloud Watch: Platforms, Metrics, Green Paradox and CIOs

This week’s Cloud Watch items from Elemental Cloud Computing:

• Kathrin Winkler, EMC: The Greener Computing Option
• David Linthicum: Why CIOs should give the cloud a chance
• James Urquhart: Cloud computing’s green paradox
• Charlie Bess: Cloud Computing Adoption Metrics
• Fred Wilson, Union Square Ventures: 2010 Interest Area #5 = Cloud based platforms and APIs

5 Enduring Aspects of Cloud Computing

Forgoing the hyperbole of cloud computing predictions – sensational outages to a cloud-in-every-pocket – I want to start 2010 discussing the enduring aspects of cloud computing on enterprise business-technology.  Regardless of the final manifestation of cloud computing, and the tally of deployments, successes and failures, I believe cloud computing will influence the expectations and practice of enterprise business-technology throughout the decade.

I have identified five enduring aspects from a practitioner perspective.  Certainly, there are enduring aspects on the provider side as well, such as advances from Infrastructure 2.0 and disruptions created by new economic and pricing models.  However, I will leave that list for provider-side specialists. 

The first three enduring aspects focus on the expectations from business-technology organizations. 

1. Resource Optimization – Cloud computing has raised Executive awareness to the disproportion of installed versus utilized computing capacity, along with the requisite expenses of space, power, software licenses and support personnel. 

If they have not already, Executives will mandate infrastructure ecology initiatives, starting with the consolidation and pooling of compute and data resources, and progressing to software execution efficiency. 

2. Capability Delivery – The automation, scaling and on-demand characteristics of cloud computing reduce delivery lead-time for infrastructure services, and commodity software from a few weeks, to a few minutes. 

The ability to optimize capability delivery allows businesses to capture runaway demand, shorten time-to-value, and control steady-state costs.

With or without cloud computing, organizations will need to adopt technology strategies, operating models, and technology investment practices that balance opportunity, time, control, capital outlays and operating cash flows.

3. Value Proposition – Cloud computing technologies and operating practices commoditize the delivery and support of common technology infrastructure and business software.  Cloud computing or not, Executives will determine they have immense choice in respect to providers of basic services. 

Information technology organizations with expressed, or perceived, value as infrastructure plumbers, operations specialists, or light-keepers, need to revamp their offerings and profiles, moving further up the stack, and out to edges, closest to business value creation (customers and suppliers) and business innovation (new capability delivery).

All business-technology organizations will need to adopt technology strategies, management and architectural practices that clearly separate, yet easily bundle, business information, business capability and underlying infrastructure.

The last two enduring aspects focus on business-technology practices.

4.  Software Design Discipline – The effectiveness of cloud computing – scalability, resource optimization, performance and cost containment – is highly dependent upon the design, quality and deployment readiness of the code base.  

Cloud computing brings a (welcome) return to software design practices, such as separation of concerns, code execution efficiency, modularity, cohesion and loose coupling.  In addition to run-time and change-time concerns, software design will need to account for deployment efficiencies, including packaging and bundling strategies.

For truly scalable systems, software architects, designers and developers will need to incorporate technologies, techniques and patterns originally employed in financial markets and large web properties.

Even if cloud computing is a passing fad, software design discipline stands the test of time.

5. Emergence of Platforms – Cloud computing, along with Web 2.0 and mobility, have changed the development experience from working directly with O/S services, middleware protocols, and data stores to interacting with the development toolkits and APIs of integrated, purpose-built, platforms. 

The platform layer intersects commodity, standardization and innovation.  Developers harness the power of the offered infrastructure, data, assembly and presentation services, adding their own code and/or configurations to deliver new business, consumer or personal capabilities. [Platform examples include: Google AppEngine, Force.com, iPhone and FaceBook.]

Leading enterprises have platform strategies and implementations that free their developers to focus on business capability delivery.  Cloud computing and “there’s an app for that”, have heightened awareness on the power of platform models in the enterprise.

What do you think? 

What will endure from cloud computing?  For those feeling particularly prescient, what will be the final manifestation of cloud computing?   

 

[cross-posted from Elemental Cloud Computing]