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To: Glenn Petersen who wrote (248)3/20/2009 9:42:58 PM
From: stockman_scott  Respond to of 1685
 
Dot Cloud: The 21st Century Business Platform Built on Cloud Computing (Paperback)

by Peter Fingar (Author)

amazon.com

Publisher: Meghan-Kiffer Press; 1 edition (February 18, 2009)

Product Description
Shift happens. The unexpected matters. Remember how the retail book industry was slow to grasp an understanding of the Internet before it got ''Amazoned?'' Well, here we go again, only this time the shift could be even greater, and it's happening in the midst of economic turmoil. Right now, there's something in the air, something really big. It's so big that to many it's hidden in plain sight. To others it's as clear as seeing a cloud in the sky. In fact, that something is indeed the Cloud, the 21st century business platform.

Just as it was with that new-fangled ''Internet'' thing a decade ago, the Cloud and the technologies of Cloud Computing suffer from confusion and hype. And pat definitions won't do when it comes to understanding these two new buzzwords. But, as they are game-changing phenomena, business leaders--and the rest of us--must gain an understanding of what these terms really mean and how they will affect us, just as much as the Internet affected us all. In Dot.Cloud business strategy expert and former CIO, Peter Fingar, explains the main ideas of Cloud Computing in lay terms. Peter also does some old-fashioned reporting to bring together the ideas of the movers and shakers who are actively building the Cloud.

But this is not a technical book about Cloud Computing technologies; it's a business book. It's about what the Cloud portends for business ... about transformation in the ways companies are managed ... about business models for the 21st century. It's about how companies carry out their work in the Cloud instead of office buildings and skyscrapers, and how they manage their business processes in the Cloud. It's also about human interactions in the Cloud, and about the end of management and the rise of self-organizing, self-managed ''Bioteams.''

Even more, it's about unlocking human potential in business, about unleashing passion. All this points to your company's future, and your future, set in the context of the biggest economic downturn since World War II. So ultimately, it's about lighting a fire in you.

According to Jim Sinur, Vice President of Gartner, ''To say that we are living in interesting times is an understatement, and Peter has captured the essence of how business will work going forward. Dot.Cloud is both visionary and realistic in that each of the pieces of the vision have working examples today, but not woven together like in this writing. The goal of the virtual business platform is not just a dream, but attainable once all the contributing pieces are brought together. Peter brings them together here in a way that will work under any number of situations, across just about any industry.''

Gregory Simpson, Chief Technology Officer of GE, remarked, ''Dot.Cloud isn't just about the Cloud; it's really about embracing change in the workplace. It pulls together elements of Web 2.0, BPM and other dreaded three-letter acronyms, as well social and economic trends, to give you a vision for how harnessing the Cloud can transform the way your company works. Peter's unique ability to pull all of these concepts together in an understandable fashion make this a business book for the future, and the future is now!''



To: Glenn Petersen who wrote (248)3/24/2009 5:29:09 AM
From: stockman_scott  Respond to of 1685
 
How to Sell Companies on Cloud Computing

businessweek.com



To: Glenn Petersen who wrote (248)3/24/2009 5:33:49 AM
From: stockman_scott  Respond to of 1685
 
Private Cloud Computing is Not The Goal

blogs.gartner.com



To: Glenn Petersen who wrote (248)3/25/2009 8:57:21 PM
From: stockman_scott  Respond to of 1685
 
HP sees opportunities in the Cloud

cloudave.com



To: Glenn Petersen who wrote (248)3/26/2009 6:25:36 AM
From: stockman_scott1 Recommendation  Respond to of 1685
 
The Internet Industry Is on a Cloud -- Whatever That May Mean

By GEOFFREY A. FOWLER and BEN WORTHEN
THE WALL STREET JOURNAL
MARCH 26, 2009, 4:08 A.M. ET
page A1

Ever since Google Inc. Chief Executive Eric Schmidt publicly uttered the term "cloud computing" in 2006, a storm has been gathering over Silicon Valley.

Companies across the technology industry are jockeying to associate themselves with clouds. Amazon.com Inc., better known for peddling books online, began selling an Elastic Cloud service in 2006 for programmers to rent Amazon's giant computers. Juniper Networks Inc., which makes gear for transmitting data, dubbed its latest project Stratus. Yahoo Inc., Intel Corp. and a handful of others recently launched a research program called OpenCirrus.

While almost everybody in the tech industry seems to have a cloud-themed project, few agree on the term's definition.

"I have no idea what anyone is talking about," said Oracle Corp. Chief Executive Larry Ellison, when talking about cloud computing at a financial analyst conference in September. "It's really just complete gibberish. What is it?" He added: "When is this idiocy going to stop?"

In its broadest sense, cloud computing describes something apparent to anybody who uses the Internet: Information is stored and processed on computers somewhere else -- "in the clouds" -- and brought back to your screen.

But no two clouds, apparently, are alike. A company's backroom mass of servers and switches is cloudlike. So are social-networking sites like Facebook Inc., or the act of buying a book on Amazon. Some clouds, like Google's email service, Gmail, are public. Others, like corporate networks, are closed to outsiders.

Part of the problem, say observers, is that the tech industry has become bogged down in jargon. Companies have long pushed the likes of "network-distributed parallel processing," often packaged as "solutions" that are "end-to-end" and "scalable." Cloud sounds much nicer.

"What took them so long? Cloud-based services seem much easier to grasp than 'Application Service Provision.' ASP -- who came up with that?" says Michael Litchfield, a creative director at Omnicom Group's Doremus, a communications firm that specializes in technology and financial topics. "The cloud is accessible. It may, in fact, be brilliant."

And possibly overused, says Hewlett-Packard Co. executive Russ Daniels. He says H-P, a backer of OpenCirrus, tries to use the catchphrase only when appropriate. "There is so much pressure to just go with the flow and wrap everything up in this single word," said Mr. Daniels, H-P's vice president and chief technology officer of Cloud Services Strategy.

Despite its recent surge in popularity, the cloud is among the oldest pieces of computer jargon, says Alex Bochannek, a curator at the Computer History Museum in Mountain View, Calif. For decades, engineers drew them in schematic diagrams to show where their own network joins another whose inner workings are unknown or irrelevant. "You symbolize that with a cloud, or some amorphous shape," says Mr. Bochannek.

By the late 1990s, clouds had become the go-to metaphor for all things Internet. The PowerPoint set used cloud icons in their presentations, at times referring to the Internet simply as "the cloud." New shades of meaning emerged over the past decade as Google and other Internet companies created software that could run simultaneously on multiple servers -- hence, operate in a "cloud."

At a 2006 conference, Google's Mr. Schmidt delivered his public description of the emerging model. He added: "I don't think people have really understood how big this opportunity really is."

Estimates, in fact, vary wildly. Research firm IDC predicts cloud computing will reach $42 billion in 2012. (It defines the segment as "an emerging IT development, deployment and delivery model, enabling real-time delivery of products, services and solutions over the Internet.") Gartner Inc. projects world-wide cloud-services revenue will rise 21.3% in 2009 to $56.3 billion. (Gartner calls it "a style of computing where scalable and elastic IT-enabled capabilities are provided 'as a service' to external customers using Internet technologies"; its forecast includes online advertising.) Merrill Lynch last year estimated cloud-computing revenues would reach $160 billion in 2011. (Merrill declined to provide a copy of its report.)

Analyst Frank Gillett of Forrester Research, which doesn't currently measure the cloud market, says makers of existing technologies -- "grid computing," "virtualization" -- are attempting to co-opt the word. Mr. Gillett calls this process "cloud washing."

Marc Benioff, CEO of online business software company Salesforce.com Inc., cottoned on to the term in December 2007. That was when he read a magazine article that dubbed Google and Amazon cloud-computing leaders.

"We were a laggard in using that name," Mr. Benioff says. For years, Salesforce had described its offerings in terms of "enterprise applications as online services," "online customer relationship management" and "on-demand business services." For his next presentation, Mr. Benioff added two slides on "cloud computing" and berated his staff for not getting Salesforce mentioned in the magazine.

"I couldn't believe how worked up he was about the term," says Tien Tzou, Salesforce's chief strategist at the time. "We had tried all sorts of terms to get the marketplace to understand what we were doing. Cloud computing was going to be the one that would stick," says Mr. Tzou, who went on to found Zuora Inc., a cloud-computing company.

In November, Salesforce held a conference that one of its speakers dubbed the "Woodstock of cloud computing." It hired people to stand outside a convention center in San Francisco, wearing white puffy jackets and holding oversized cloud balloons. Inside, projectors painted a digital sky on the ceiling. The Rolling Stones'"Get Off of My Cloud" blared on the sound system.

In the full fiscal year since Salesforce started using the term cloud computing, its revenue grew 44%. "I think it's the most powerful term in the industry," Mr. Benioff says.

Cloud-themed puns have since multiplied, generating even a few seemingly contradictory uses. Sun Microsystems Inc. recently unveiled a product called the "Sun Cloud." Microsoft Corp. sells a cloud service called "Azure," which the dictionary defines as a cloudless sky. Apple Inc., of course, is doing its own thing: Its new Mobile Me product is branded not with the word cloud, but with an image of one.

Dell Inc. applied to trademark the term cloud computing last year. The U.S. Patent and Trademark Office initially approved the application. But it changed its mind in response to an outburst of criticism, including from bloggers incensed that the term could fall under one company's control.

A Dell spokesman says the trademark was intended only to cover "the design of computer hardware for use in data centers." He adds that the computer maker has no plans to pursue the issue further.

Historian Mr. Bochannek says that cloud computing could join past tech terms -- "cyberspace," "Web 2.0" -- that have gone from boom to bust. "The problem isn't so much the term," he says, "but the extended usage of it to subsume other things."

For some, clouds are already empty puffery. "We've redefined cloud computing to include everything that we already do," Mr. Ellison said at the analyst conference in September. "I can't think of anything that isn't cloud computing with all of these announcements. The computer industry is the only industry that is more fashion-driven than women's fashion."

Still, Mr. Ellison acknowledged he was powerless: Oracle, too, would probably start using the label. Last week in an earnings call, Mr. Ellison made good: He described Oracle's upcoming software as "cloud-computing ready."

Write to Geoffrey A. Fowler at geoffrey.fowler@wsj.com and Ben Worthen at ben.worthen@wsj.com

Copyright 2008 Dow Jones & Company, Inc.



To: Glenn Petersen who wrote (248)3/29/2009 8:04:19 AM
From: stockman_scott  Read Replies (1) | Respond to of 1685
 
Nick Carr: The many ways cloud computing will disrupt IT

weblog.infoworld.com



To: Glenn Petersen who wrote (248)4/2/2009 1:12:24 AM
From: stockman_scott  Respond to of 1685
 
Envisioning the Cloud: The Next Computing Paradigm

marketspaceglobal.com



To: Glenn Petersen who wrote (248)4/2/2009 2:48:23 AM
From: stockman_scott  Respond to of 1685
 
No Man Is an Island: The Promise of Cloud Computing

knowledge.wharton.upenn.edu

Published: April 01, 2009 in Knowledge@Wharton

"Cloud computing" promises myriad benefits -- including cost savings on technology infrastructure and faster software upgrades -- for users ranging from small startups to large corporations. That's an auspicious future considering that not everyone agrees on exactly what cloud computing is or what it can do.

Despite the ethereal name, in its broadest terms, the concept of cloud computing is fairly simple. Rather than running software on its own computers -- "on premises" as the terminology goes -- a company buys access to software on computers operated by a third party. Typically, the software is accessed over the Internet using only a web browser. As long as the software performs properly, it doesn't matter where the systems that run it are located. They are "out there somewhere" -- in "the cloud" of the Internet. Since companies tend to purchase access to this remote software on a subscription basis, cloud computing is also often termed "software as a service."

"Cloud computing refers to a number of trends related to pushing computing resources -- hardware, software, data -- further into the network," said Kartik Hosanagar, a Wharton professor of operations and information management who moderated a panel discussion on cloud computing at the 2009 Wharton Business Technology Conference.

These days, no computer user is an island. A recent study determined that 80% of the data used by business comes from outside the company. Cloud computing "is the technical response to this reality," said panel participant Anthony Arott of anti-virus software company Trend Micro, based in Cupertino, Calif.

A somewhat broader definition of cloud computing comes from another expert on that panel, Barry X. Lynn, CEO of "cloud platform" provider 3tera of Aliso Viejo, Calif. "A lot of people define the cloud as having the computers be someplace else. And that's not true," he said. "People have run IT in data centers they didn't own for years. In the 1970s, we called that 'remote job entry.' In the 1990s, it was 'outsourced data centers.' It's not a new concept."

Lynn suggested that true cloud computing isn't simply about adding physical distance between the user and the computer that's doing the grunt work. What's new is "when you abstract the computer from the physical resources." In other words, you no longer have specific machines -- no matter where they are located -- dedicated to specific functions or software applications. Instead, you have a piece of software running across a pool of machines, making optimal use of all the available hardware resources.

In between these explanations of cloud computing lies a variety of products and services, all of which claim to offer a number of advantages -- lowered investment in hardware, more efficient use of computing systems in existing data centers, easier scale-up of the applications and services. These approaches are now possible due to faster and more pervasive communications. As bandwidth has become cheap and readily available, and transmission speed is no longer an impediment, it's possible to store data and run software anywhere for users to access from wherever they want.

Backing (Up) Consumers

According to Prasanna Krishnan, an associate at Menlo Park, Calif.-based venture capital firm Draper Fisher Jurvetson and also a panelist at the Wharton conference, the easiest examples for most people to grasp may be consumer web applications such as Microsoft's Hotmail, Google's Gmail and YouTube, and Yahoo's Flickr photo-sharing service. Consumers run only their browsers on local computers. The rest of the software -- along with users' email messages, photos or videos -- are on remote machines the user can't see and doesn't have to know anything about -- as if hidden in the clouds.

Another conference panelist, Vance Checketts, general manager of Decho, based in Pleasant Grove, Utah, described his company's service, Mozy, as a "cloud" offering. Mozy lets users back up their home computer data online. "We have 18 petabytes [18 million gigabytes] backed up now across about a million users. It's cloud technology, but Mozy got started with just a bunch of cheap off-the-shelf disks."

Google extended its successful webmail model by introducing Google Docs -- online versions of word processor and spreadsheet applications, software that traditionally runs on users' PCs. It is joined in that market by others, including Zoho, of Pleasanton, Calif., which offers a suite of online collaboration and business applications. These convenient online tools have helped to fuel the market for netbooks -- lightweight portable computers which contain minimal data storage and computing capacity, and carry price tags usually under $400. By taking advantage of online applications and storage, users have the option to spend less money on hardware.

Reducing -- or eliminating -- hardware and other operating costs naturally also appeals to corporate users, many of whom are moving toward subscription-based "software as a service" (abbreviated SaaS). Online business applications offered by companies such as Salesforce.com (for customer relationship management) and Workday (for human resources and financial software) can not only replace expensive programs that would run on companies' premises, they can reduce the need for corporate computer servers and the related costs of maintaining them. With SaaS, companies pay subscription fees for usage rather than licensing costly enterprise software. SaaS is a growth industry: A new study by Forrester Research concludes that even in the current recession, software-as-a-service providers are seeing double-digit growth in their subscription revenue. Ariba, a Sunnyvale, Calif.-based procurement software-as-a-service company that had been left for dead after the Internet bubble burst, saw a 73% jump in its subscription revenue, from $18.8 million in the third quarter of 2007 to $32.6 million in the same period in 2008.

Other companies have expanded into the cloud by offering data-center resources as more generic "computing as a service." Google, which maintains vast warehouses of servers to run its own software applications, also offers a service called Google AppEngine that allows businesses to develop and run their own programs on Google's servers. Amazon has a similar offering called the Elastic Compute Cloud, or EC2. These services offer companies a place to host applications and data under a pay-for-usage model -- called "utility computing" because it is ready on demand, just like turning on the lights or the water faucet. Customers pay by unit of consumption, whether it's storage space or computing time, and can scale usage up or down quickly. These computing services are particularly attractive when companies want to develop and test new applications without interfering with existing systems, and they can offer "hot," or ready-to-use, backups of the applications in use.

Back to the Future

The notion that a company has a "private cloud" on its premises might seem contrary to the concept of cloud computing, but cloud-like features can also have advantages in corporate data centers. Lynn from 3tera gave a historical analysis of how computing architectures evolved. Decades ago, he said, "you had a giant mainframe, and everything ran on it. If you ran out of capacity, you would either make it bigger or get another giant mainframe." Then, client/server systems came along to distribute processing between central computers or servers and the PCs at users' desks. Still, however, every machine in the data center had to be dedicated to a specific software function or application.

The newer technology of virtualization permits one piece of hardware to act as multiple "virtual machines" and be dedicated to multiple functions. This makes more efficient use of hardware, but each virtual machine still must be dedicated to a specific software function. "What cloud computing really changes is [that] now you don't have specific machines, or virtual machines, dedicated to specific functions. You have a pool of machines. Anything can run anywhere" -- even in a company's private data center, Lynn said.

Traditional corporate data centers can be inefficient. Businesses equipped for peak workloads may have servers that are underutilized much of the time. In a private cloud, a group of a company's existing computers can be brought together as a computing pool -- and an application "can just grab any available hardware and then give it back," said Lynn. "The term we use is 'disposable information technology infrastructure.'" The software from 3tera acts as a conductor, parceling out components of an application to different computers in a cloud like a taxi dispatcher. "There is no architectural reason why you can't have 20 different machine types" involved, Lynn noted, although performance is optimized if the machines are similar.

For some corporate users, keeping the cloud in-house alleviates the security and privacy concerns that can come with running key applications and data outside the company. However, cloud providers insist that data is safer and less vulnerable with them. Companies that provide storage and computing services maintain state-of-the-art facilities and implement security updates immediately.

Lynn believes that eventually IT "will evolve to an almost completely external cloud," and he sees it as a natural progression. "If you're in the health care business, or financial services or manufacturing, why would you ultimately be spending hundreds of millions or billions of dollars on IT infrastructure? And the answer is, you've had no choice," he said. "If you woke up this morning and read in The Wall Street Journal that, say, Overstock.com has stopped using UPS and FedEx and the U.S. mail, and had bought fleets of trucks and started leasing airport hubs and delivering products themselves, you would say they were out of their minds. Why is that much more insane than a health care company spending $2 billion a year on information technology?"

Panelists at the Wharton conference encouraged students in the audience to take advantage of cloud computing as entrepreneurs. Those thinking of offering innovative online services -- in the hopes of becoming the next Facebook or Twitter -- will need a way to ramp up their capacity quickly if all goes well. With a cloud-based service, expansion capacity is as close as you can get to unlimited, panelists noted.

Money is a factor, too, of course. A startup of any type can get the bulk of its computing resources on a pay-as-you-go basis, said Wharton's Hosanagar. "You don't have to worry about these big up-front fixed costs. I've had student startup companies on minuscule budgets." Added panelist Jonathan Appavoo, a research scientist at IBM: "Startups are the killer app for the cloud. As students with a good idea, this is a playground. You can be the driver of all this stuff. Computation now is so accessible, and we have an opportunity to dramatically change how things work."



To: Glenn Petersen who wrote (248)4/7/2009 5:27:17 AM
From: stockman_scott  Respond to of 1685
 
The new economics of computing

roughtype.com



To: Glenn Petersen who wrote (248)4/7/2009 5:34:58 AM
From: stockman_scott  Respond to of 1685
 
Is your data really safe in the cloud?

cloudconnectevent.com



To: Glenn Petersen who wrote (248)4/8/2009 7:00:51 AM
From: stockman_scott  Respond to of 1685
 
Zetta Launches Cloud Storage for Primary Data

byteandswitch.com



To: Glenn Petersen who wrote (248)4/15/2009 3:44:59 AM
From: stockman_scott  Read Replies (1) | Respond to of 1685
 
Why 'Private Cloud' Computing Is Real -- And Worth Considering

informationweek.com

To some, it's the same data center strategy by a trendier name. Don't believe them.

By Charles Babcock
InformationWeek
April 11, 2009

Companies that want the benefits of cloud computing services without the risks are looking to create cloud-like environments in their own data centers. To do it, they'll need to add a layer of new technologies--virtualization management, cloud APIs, self-service portals, chargeback systems, and more--to existing data center systems and processes.

Be ready for a debate as you discuss this new way of doing things. Just the term "private cloud" irks some computer industry veterans, who argue that cloud computing by definition is something that happens outside of your data center, or that the technologies involved in private clouds have been around for years, or both. Even some of my InformationWeek colleagues pooh-pooh private clouds. "Nothing new under the sun," scoffed one editor.

It's true that no single piece of an internal cloud architecture looks like breakthrough technology; it all looks deceptively familiar. I would argue, however, that private clouds represent a convergence of tech trends holding great promise for enterprise computing. Private clouds are a more powerful combination of modular commodity hardware that can be sliced and diced into many small pieces, with networking and storage that can be dynamically allocated through preset policies.

A virtualization management layer treats that whole set of technologies as a combined resource, while Internet networking and Web services allow us to interact with the cloud from any location. We can create new services out of existing ones hosted in the cloud and run user workloads at the click of a button. End users were far removed from the old mainframe and Unix server data center; with clouds, the business user can become king. Creating a private cloud will take considerable IT skill, but once one is built, authorized business users will be able to tap that computing power without a lot of know-how.

The Department of Veterans Affairs has deployed a small internal cloud. It wanted an early-warning system that could analyze data from its 100-plus clinics and hospitals and spot outbreaks of infectious diseases, and it had to do so on a tight budget. The project, dubbed the Health Associated Infection and Influenza Surveillance System, was built on six standard blade servers with converged network and storage I/O. The CPUs can be managed individually or as a virtualized whole, with workloads shifted and capacity summoned as necessary.

The six-blade system runs Egenera's cloud management software, PAN Manager, which manages I/O, networking, and storage for the servers as a logical set. It can execute several applications, while always having enough horsepower to do its main job. The system's Dell blades and storage can be virtualized as a pooled resource in such a way that processing power can be devoted quickly to the VA's cloud, its highest-priority task. In many ways, the VA's new system anticipated Cisco's recently introduced "unified computing" platform, a virtualized, multiblade server chassis with converged I/O that Cisco touts as just the thing for cloud computing.

Some see a hard line between the public clouds operated by Amazon Web Services, Google, and Microsoft and mixed-use corporate data centers. Such a line used to exist between proprietary enterprise networks and the Internet, too. Yet internal intranets gradually offset some of the functions of enterprise networks because they were patterned on TCP/IP and, thus, were compatible with the Internet surrounding them. Standard TCP/IP ultimately replaced proprietary networks, and the Internet began to function as an extension of corporate networks.

A similar phenomenon could, and probably will, happen with cloud computing. If efficient external clouds such as Amazon's Elastic Compute Cloud are based on a few standards, why can't data centers start to be built out as internal clouds that more closely resemble them? And once the two start to match up in architecture, what's to prevent a workload in one from being exported to the other?

That's the concept known as a hybrid cloud--part public cloud service, part internal cloud--and Bob Muglia, president of Microsoft's server and tools division, expects many companies to move in this direction. "All of our customers will have Windows servers on premises and, over time, add usage of cloud services," he says.

But Muglia adds that hybrid clouds will be "super hard" to pull off when they involve applications that require true cross-cloud integration, not simply moving a virtualized application from a private cloud to a public cloud. "The hard part is moving all of the services attached to that workload," he says. Muglia's group hopes to solve that problem by incorporating technologies developed for Microsoft's Windows Azure cloud operating system into Windows Server, so that the two environments will not only resemble each other but also work together. For Microsoft, however, that work all lies ahead.

Stephen Brobst, CTO of data warehouse provider Teradata, foresees other complications. For instance, while it's technically feasible to run data warehouses in public clouds, there are privacy and governance concerns that make it almost inconceivable to do so with personal data, he says. The Health Insurance Portability and Accountability Act, Sarbanes-Oxley, and the credit card industry's PCI standard put stringent controls on personal data. Running a data warehouse on an internal cloud gets around those issues. Teradata customer eBay runs a 5PB data warehouse internally, adding 40 TB a day, on a grid of x86 servers.

Internal clouds can help companies in several ways. Computing "elasticity" is one of the biggies. If there's a spike in demand on IT systems--the launch of a new product line involving manufacturing, marketing, and distribution channels, for example--they can scale to meet it. If a retailer expects spikes in its e-commerce system during a promotion, a marketing manager, or the IT liaison to the marketing team, could book an internal cloud to handle the spikes, holding other jobs in abeyance temporarily while also billing that cost to the promotion.

That brings us to the realm of self-service portals, metering, and chargeback systems needed to make it possible to dole out IT resources on demand, measure consumption, and allocate expenses with increased granularity. The best way to set up such a system is with the virtual lab manager products that software developers use to provision servers, says Forrester Research analyst James Staten. VMware's vCenter Lab Manager, Citrix Systems' Lab Manager, and Surgient's Virtual Automation Platform all come with self-service portals.

Start Planning
Even if you aren't implementing an internal cloud right away, consider a pilot project. "Enterprises should start training now to take advantage of cloud computing two years from now," says Staten.

Anyone thinking about internal cloud architecture needs to start with commodity x86 servers; the more similar they are in configuration, the easier it will be to manage them in a cluster or grid. (Look no further than Amazon, Google, and Microsoft for evidence that look-alike x86 servers are a staple of cloud architectures.) Indeed, migrating virtual machines can be done only between servers that use essentially the same chip in the CPU; otherwise, x86 instruction sets can vary in minute ways that will throw off VMware's VMotion or other live migration managers. Most companies don't have this homogeneous environment today.

In most cases, private cloud designers also will need to implement a virtualization management layer that goes beyond what they already have in place. Virtualization isn't a requirement for private clouds. PAN Manager is one example where workloads can be moved around without hypervisor software. But in most cases, virtualization and internal clouds will go hand in hand. And it's hard to gain the efficiencies needed and manage the scale involved without full-fledged virtualization management along the lines of VMware's vCloud or Citrix Essentials for XenServer and Hyper-V, or DynamicOps' Virtual Resource Management.

Rule of thumb: If you can master virtualization in the data center, you'll master the private cloud.

Many enterprises are marching toward private and hybrid clouds by following in VMware's footsteps. VMware this year is bringing out elements of what it calls the Virtual Data Center Operating System, or VDC-OS, which it illustrates in a diagram as hovering over both an internal and external cloud. Ultimately, VMware's goal is to let customers use VDC-OS to manage x86 servers and related storage as combined resources and move virtualized workloads between internal and external clouds.

The capabilities to provision, monitor, and move virtual servers around already are part of VDC-OS, but other private-cloud tools are still missing. One is vCloud, which VMware describes as an "initiative" rather than product. Part of its purpose is to let private cloud users get services from external clouds. Toward that end, VMware is establishing links with services providers, such as Melbourne IT, Savvis, SunGard, and Terremark.

They'll do that via the vCloud API. If VMware can gain broader acceptance for its API, it will be much easier to send a workload to an external cloud or enable a workload in an external cloud to tap into services that are part of the enterprise infrastructure. At this point, the vCloud API is in limited release.

Longer term, CEO Paul Maritz says VMware is seeking to give customers a single management interface with which they could run VMs in private or public clouds. Whether VMware can live up to these expectations probably won't be known for 18 months to two years.

Citrix's Lab Manager, NetScaler, and other products also can be used to build private clouds, along with its Workflow Studio for orchestrating resources. Like VMware, Citrix is working on a set of APIs that will work with its WANscaler, a product for speeding application delivery over a wide area network, to bridge the gap between enterprise and external clouds. Those still-to-come APIs promise to let customers move VMs and application resources between on-premises and external clouds.

Sun Microsystems recently introduced a private cloud platform--the Sun Open Cloud Platform--and public cloud services called Sun Cloud that are based on a set of open APIs. But Sun has been in tenuous negotiations to be acquired by IBM, and it isn't clear what IBM's plans would be for a Sun-centric cloud.

Users of the Amazon EC2 cloud might want to monitor the Eucalyptus open source project, which is creating a set of open APIs that closely mimic Amazon's and could be used to build private clouds that function in a way similar to EC2. Eucalyptus APIs could be used to summon the equivalent of EC2's Simple DB database or S3 storage services. An application built using such interfaces could be readily adapted for export to Amazon's cloud.

Prepare
A private cloud will help IT teams get ready for private-public hybrid clouds in the future data center Another problem private clouds must address is the need for a shared underlying storage file system. Without it, a set of VMs can't be treated as an elastic resource. VMware implements VMotion migration of VMs by imposing its own storage file system on a portion of the customer's disk arrays. Citrix works with Veritas and other storage vendors to ensure that its live migration feature will work.

Without a shared file system, the VM, when it moves to a new physical server, will not only leave the CPUs and memory behind in favor of a new machine's, it will also migrate away from its assigned storage and not be able to retrieve its pre-move data.

Egenera came up with its own solution to this problem outside of the fractious storage industry, where vendors have never agreed on a set of common standards. In the Dell PAN system, the Egenera software assigns each workload with a unique storage identifier, regardless of whether it's running in a VM or directly on a physical blade, says James Yaple, CTO of the Department of Veterans Affairs' data center operations. If a blade fails or a VM is moved to a different blade, the workload's storage identifier moves with it, providing a path back to the pre-move data.

Internal clouds aren't just a more efficient way of maintaining old data center practices. "You have to rethink the processes of how you did things before," says Jerry McLeod, VP of product management at cloud workload configurer FastScale Technology. Instead of having a system administrator configure each server, virtual machine configuration needs to take place based on a few reference images that will be widely used in your company.

In a traditional data center, a network administrator maps the addition of a new server to the network, assigning it switch and router resources, then a security and compliance administrator checks the configurations and installs any additional protections needed for the new server. With an internal cloud, those three tasks can be collapsed into one--the creation of a VM that's met with the approval of all three. IT departments need to put work into the process of constructing VMs so that can be accomplished in an automated fashion without disrupting IT operations or creating security risks or data privacy breaches, McLeod says.

App Tuning
After some established applications are running in an internal cloud, IT managers will start thinking about how to architect future apps for the cloud.

With external clouds, choices are limited as to what you can run. Google's App Engine now runs applications that must be written in Python 2.5. If you go to an external provider, such as Salesforce.com, you'll be able to use your internal data and customize the application, but you'll have to work in Salesforce's proprietary Visual Force language or the only other language it supports, Adobe's Apex.

Microsoft is seeking to broaden the selection to its popular Visual Studio and .Net technologies in its upcoming Azure cloud, but cloud developers will be restricted to Microsoft products and services, which may or may not work if they try to coordinate them with internal clouds.

With internal clouds, there's the prospect that in-house developers will continue to use their favorite development environment and code management system to produce cloud applications. They also will have access to the custom code and in-house services of the enterprise, provided they've been designed to be consumed as services. Internal clouds are about accessing and using services, and in that sense, are a specific execution environment for service-oriented architecture systems.

Likewise, instead of adjusting to Amazon's virtual file format, called the Amazon Machine Image, private cloud administrators can work with the virtualized files they're most comfortable with in their own data centers. Tools are being built to convert such files into the format used by an external cloud. RPath's rBuilder online tool, for example, packages AMI virtual appliances for shipping off the Amazon cloud.

If you succeed in building an internal cloud, the newly empowered end user is likely to find ways to combine services and generate applications that IT hadn't considered. Yes, a flurry of end user activity will multiply VMs and increase data center complexity. But if it also begins to increase revenue, by helping business units execute on new opportunities faster, private clouds could become a sought-after IT delivery model in record time.

The prospect that internal creativity will one day unite with well-designed external cloud services is so tantalizing that skeptics of private clouds won't hold sway for very long.
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Reasons To Build Private Clouds:

Lower Capacity

Pooling resources will let companies reduce computing capacity by giving higher-priority tasks power during peaks

Reduce Overhead

x86 servers and related resources in a virtual data center can be managed as a unit
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GE Puts 'Private' Cloud Computing To The Test

informationweek.com