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Cloud Computing Imperatives

Explore the significant economies of scale, power limitations, yield management strategies, resource shaping tactics, and trends in mass distribution and centralization shaping the cloud computing landscape. Learn about key imperatives for the future of cloud services.

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Cloud Computing Imperatives

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  1. Cloud Computing Imperatives James Hamilton 2008-04-11 JamesRH@microsoft.com http://research.microsoft.com/~JamesRH blog: http://perspectives.mvdirona.com

  2. Services Economies of Scale Inescapable • Substantial economies of scale • High cost of entry • Physical plant expensive: 10MW roughly $200M • Summary: significant economies of scale but at very high cost of entry • Small number of large players likely outcome Service Scale [$13/Mbps]: $0.04/GB Mid Size [$95/Mbps]: $0.30/GB (7.1x) Service Scale: ~$2.5/GB/year Mid Size: $26.00/GB/year* (5.7x) Service Scale: 2,000+ servers/admin Enterprise: ~140 servers/admin (15.7x) http://perspectives.mvdirona.com

  3. Power & Communications Limit • Process core cycles are cheap & getting cheaper • What limits application of infinite cores? • Power: cost rising and will dominate • Data: inability to get data to processor when needed • DC power & mechanical trending up, servers down • Most sub-Moore attributes require most innovation • Infinite processors require infinite power • Getting data to processors in time to use next cycle: • Caches, multi-threading, ILP,… consume power • Latency bigger problem than bandwidth Dave Patterson Graph http://perspectives.mvdirona.com

  4. Yield Management, Optimization, & Data Analysis Dominate • Yield mgmt first used in airline industry • Airplane more expensive than computation • Heavily used in retail & Finance • Shelf space opt, supply chain optimization • 1000’s of node financial analysis systems • Declining cost of computing allows yield-management of less expensive resources • Analysis systems dominate transactional systems • Transactional workload represents sales & changes in physical world • Analysis grows at rate of cost decline and potentially include data from ALL transactions http://perspectives.mvdirona.com

  5. Resource Consumption Shaping • Essentially yield mgmt applied to DC • Network egress charged at 95th percentile: • Push peaks to troughs • Fill troughs for “free” • Charged symmetrically so ingress also effectively free Egress charged at 95th percentile 3PM PST 4AM PST The Pacific Ocean is big. • Power also charged at 95th percentile • Server idle to full-load : 158W to 230W (60% common) • S3 (suspend) or S5 (off) when server not needed • Disks come with both IOPS capability & capacity in device fixed ratio • Mix hot and cold data • Encourageurgency differentiation in charge-back model David Treadwell Graph http://perspectives.mvdirona.com

  6. Mass Distribution & Mass Centralization • Mass Distribution: • Device numbers exploding (cell phones +1B/yr) • Edge computing resources exceed those in core • Move computation closer to user • Mass Centralization: • Yield management, optimization, & data analysis • Data is the asset • Move computation closer to data http://perspectives.mvdirona.com

  7. Summary • Five services imperatives: • Services Economies of Scale Inescapable • Power & Communications Limit • Yield Management, Optimization, & Data Analysis Dominate • Resource Consumption Shaping • Mass Distribution & Mass Centralization • TJ Watson appears to have been partly correct • Small number of very high scale services support vast majority of server-side computing • But, edge device count growing explosively large & with far more resources in aggregate http://perspectives.mvdirona.com

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