Internal Cloud
Private Clouds: Old Wine in a New Bottle
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BuzzBy John McEleney
I recently read a Bank of America Merrill Lynch report about cloud computing, and they described private clouds as "old wine in a new bottle." I think they nailed it!
The report points out that a typical private cloud set-up looks much the same as the infrastructure components currently found in a corporate data center, with virtualization added to the mix. While the virtualization provides somewhat better server utilization, the elasticity and efficiency available in the public cloud has private clouds beat by a mile.
In short, the term "private cloud" is usually just a buzzword for virtualized internal environments that have been around for years. By replicating existing data center architectures, they also recreate the same cost and maintenance issues that cloud computing aims to alleviate.
Despite their limitations, there is still a lot of industry talk about creating internal private clouds using equipment running inside a company’s data center. So why do people consider building private clouds anyway?
To answer this question, you have to step back and examine some of the fundamental reasons why people are looking to cloud computing:
- The current infrastructure is not flexible enough to meet business needs
- Users of IT services have to wait too long to get access to additional computing resources
- CFOs and CIOs are tightening budgets, and they prefer operational expenses (tied directly to business performance) vs. capital expenses (allocated to business units)
In every case, the public cloud option outperforms the private cloud. Let’s examine each point:
- Flexibility – the ability to access essentially unlimited computing resources as you need them provides the ultimate level of flexibility. The scale of a public cloud like Amazon’s EC2 cannot possibly be replicated by a single enterprise. And that’s just one cloud – there are many others, allowing you to choose a range of providers according to your needs.
- Timeframes – to gain immediate access to public cloud compute resources, you only need an active account (and of course the appropriate corporate credentials). With a private cloud, users have to wait until the IT department completes the build out of the private cloud infrastructure. They are essentially subject to the same procurement and deployment challenges that had them looking at the public cloud in the first place.
- Budgets – everyone knows that the economic environment has brought a new level of scrutiny on expenses. In particular, capital budgets have been slashed. Approving millions of dollars (at least) to acquire, maintain and scale a private cloud sufficient for enterprise needs is becoming harder and harder to justify — especially when the "pay as you go" approach of public clouds is much more cost-effective.
There are many legitimate concerns that people have with the public cloud, including security, application migration and vendor lock-in. It is for these reasons and more that we created CloudSwitch. We’ve eliminated these previous barriers, so enterprises can take immediate advantage of the elasticity and economies of scale available in multi-tenant public clouds. Our technology is available now, and combines end-to-end security with point-and-click simplicity to revolutionize the way organizations deploy and manage their applications in public clouds.
Sir Isaac Newton may not have dreamed about clouds, but his first Law of Motion, "a body at rest tends to stay at rest", has been a good harbinger of cloud adoption until now. It is fair to expect that people will grasp for private clouds simply because it’s more comfortable (it’s the status quo). However, the rationale for public cloud adoption is so compelling that a majority of organizations will choose to embrace the likes of Amazon, Terremark, and other clouds. As adoption increases, private clouds will be used only for select applications, thus requiring far fewer resources than they currently demand. We’re also seeing the emergence of “hybrid” clouds that allow customers to toggle compute workloads between private and public clouds on an as-needed basis.
In the end, we will have new wine and it will be in a new bottle. With CloudSwitch technology, 2010 is shaping up to be a great vintage.
The Hidden Costs of Internal Clouds
By Ellen Rubin
A public cloud can provide access to computing resources that many companies would otherwise never be able to afford. The arguments for the cloud are well-known by now, but remain compelling—no up-front costs, virtually unlimited computing power on demand, and highly efficient pricing where customers pay only for resources used. There’s also less pressure on corporate IT departments that are charged with managing the infrastructure and budgeting for new equipment to keep up with demand.
But concerns about security and loss of control in public clouds have led to an alternative model—the internal cloud—that replicates the cloud environment inside the corporate firewall. Within these boundaries, enterprise users can provision computing resources as needed, using the cloud’s self-service capabilities while leveraging data center services. Internal clouds are often referred to as private clouds, but since private clouds can also be found in external environments, the “internal” designation is a more precise term for what we’re talking about here. (RightScale's blog post provides helpful definitions of the different cloud variants.)
With servers, applications and data within the enterprise walls, internal clouds can provide many of the benefits of cloud computing without the potential risks when the computing environment is provided by a third party. Unfortunately, the economics of internal clouds makes them inherently less efficient than the public cloud, especially as new technology makes the public cloud safer and more reliable. Here are some of the reasons why:
- Infrastructure costs: Deploying an internal cloud requires building out the infrastructure to support the needs of all enterprise users. In addition to acquiring the necessary hardware and software, this includes things like configuring the network, allocating storage, paying the electric bill, and providing square footage for the equipment. Plus, all of this infrastructure has to be managed and supported on an ongoing basis.
- Over-provisioning: Just as with traditional IT infrastructure, anticipating resource requirements for an internal cloud is difficult since applications run at varying usage levels. Some applications consume resources fairly steadily while others require occasional bursts of massive computing power. Companies may have no choice but to over-provision, where some equipment sits idle most of the time in order to have resources available for peak periods. (Meeting these short-term usage needs is one example where the elasticity of public clouds really pays off.)
- Building the management plane: As Jon Brodkin points out, building an internal cloud is about more than just virtualization. One of the key benefits of cloud computing is the self-service aspect, where users can access resources as needed via a self-service portal, which then execute in the cloud automatically without administrator intervention. Building this control plane is another substantial step when implementing an internal cloud.
For all of these reasons, the internal cloud carries a cost overhead compared to leveraging the resources and self-service framework already provided by public clouds. Ironically, much the same protection and control offered by internal clouds is becoming increasingly available in an external public environment. So enterprises may find that a public cloud may provide a more cost-effective home for many (or even most) of their applications.
Internal clouds can make sense for the most business-critical requirements or those that need specialized hardware or have regulatory compliance issues. Focusing internal resources on these types of applications would greatly reduce the investment required to build, sustain and grow enterprise infrastructures. While some applications may always need to run internally, many companies have dozens of others that could run more cost-effectively today in a public cloud, providing computing power on demand along with required security, agility and scalability.
At CloudSwitch, we provide technology that allows companies to take full advantage of the resources and savings that the public cloud has to offer, while integrating seamlessly with their internal environments. Applications deploy automatically, are free from lock-in, and stay tied into internal data center services. In short, the enterprise gets the protection and control formerly found only behind the firewall, and can combine the best of internal and external cloud offerings with maximum agility and value.
