As cloud computing continues to emerge as a mega IT trend, changes in the overall IT services and computing landscape are imminent. Numerous IT companies have already announced new cloud computing visions and are implementing key strategies. Leaders in the field, such as Amazon, Google and IBM, are endeavouring to turn cloud computing into a reality by announcing key services along with strategies that are rooted in this new concept.
The reason why this new computing model is creating a huge buzz of interest among both service providers and end-users is because of its potential to deliver major cost, operational benefits. These include a significant reduction in operational expenditure as services replace the need to purchase infrequently-used IT resources; and the ability to respond immediately and inexpensively to changes in demand for IT resources. Other benefits include providing a reasonable price model for selectively purchasing IT resources that a company really needs; using those resources on a pay-per-use basis; and improved financial flexibility.
However, cloud computing, which is often expressed in network configuration charts and seen as the future of network-based IT services, is not an easy business model for service providers to implement. It rolls together a range of IT concepts—such as network computing, SaaS, server-based computing, utility computing, and grid computing—into a single, all-encompassing service abstraction. Like utility computing, it relies on a complex networking infrastructure to enable IT services and handle huge volumes efficiently.
To enable cloud computing services, service providers, therefore, will need large-scale IT centres and robust IP networks, as seen in SaaS or utility computing. At the same time, the services need to be reliable, and the provider must have intimate expert knowledge about business operations.
One service, several benefits
This provides strong opportunities for network service providers that have already mastered the complexity of operating large data centres. They are better positioned to pre-empt markets for cloud computing if they can utilise existing service infrastructure and management systems.
Telecommunications companies can grasp the new business opportunities presented by cloud computing by leveraging their inherent market advantages in having an IP infrastructure and operating capacity that goes far beyond those of other IT service providers.
In addition, communications-related operating software that has been enhanced and standardised for service improvement during the last decade fits well with cloud computing. Next-generation telecommunications technology such as IMS, which can efficiently provide services using an IP network or next generation network (NGN) service architecture, is also a logical service component for the cloud computing environment.
To translate these advantages into sustainable growth, based on the provision of differentiated service, the cloud computing, network service providers need the following:
• A highly-reliable IT infrastructure and operating capacity that can guarantee the stability and consistency of service.
• An enhanced service infrastructure and large economies of scale through which a large physical IT infrastructure can be established and used in a cost-efficient manner.
• Advanced software technology and efficient resource management capabilities, along with the ability to provide flexible and stable service that can rapidly accommodate diverse user needs.
• A long-term business strategy and stable operations, which are vital to establishing private cloud computing for larger companies.
That said, one cannot overlook the fact that data centre operators and telecommunications providers are latecomers to the cloud computing market. In 2005, Google purchased a 12-hectare site in the US state of Oregon, where electricity is less expensive, and has been developing a mega data centre to globally provide IT services. Amazon has already launched a business of renting server and storage space online to companies with fees based on actual usage, while Microsoft will be releasing its cloud computing environment, Windows Azure, along side Windows 7 later this year. These initiatives are part of their efforts to seize leadership in the new cloud computing market.
In order to avoid getting left behind, data centre operators and telecommunications providers should step on the gas and evolve more quickly to being cloud computing service providers. To help them move smartly ahead and get ready for the cloud computing era, Juniper Networks has launched a series of new initiatives.
For example, over the past year, IBM and Juniper have been working together on the Stratus Project with the aim of addressing the pain points of the modern mega data centre and enabling cloud computing to fulfill its maximum potential. The goal is to create a single data centre fabric that will deliver a quantum jump in scale, performance and simplicity, with the flexibility to support fully converged and virtualised data centre environments.
Juniper Networks has a differentiating focus on simplifying data centres by reducing the layers, and improving TCO. For data centre operators and telecommunications providers, that means they have the capability to quickly pre-empt new business strategies and benefit from new market opportunities.
Enterprise clients need economically compelling solutions that help them run their businesses in smarter ways, while never taking their eyes off of security, resiliency and compliance. Cloud computing gives them the opportunity to leverage considerable cost advantages, while maintaining the highest levels of integrity, responsibility and control.
As enterprises and service providers gain experience with the cloud architecture model and confidence in the security and access-control technologies that are available, many will decide to deploy cloud-based services.
At the start of last year, Gartner was predicting that “by 2011, early technology adopters will forgo capital expenditures and instead purchase 40 per cent of their IT infrastructure as a service . . .. ‘Cloud computing’ will take off, thus untying applications from specific infrastructure.” To judge by the phenomenal growth rates experienced by some of today's public cloud offerings, this may have been a conservative outlook.
C. K. Lam is regional enterprise solutions manager of Juniper Asia Pacific.
