Cloud Computing Its Potential Impact on the ISV Industry…

Cloud ComputingIts Potential Impact on the ISV Industry… Extracted the portion on Interoperability and Portability at the Different Layers of the Cloud … Dr. C.K. Wong Distinguished Fellow Hong Kong Computer Society July 2012 Shenzhen

Cloud – an Old Vision Coming True John McCarthy (1927-2011) – A computer scientist, Ph.D. in mathematics from Princeton, professor at Stanford, Winner of the Turning Award in 1971, inventor of the term “artificial intelligence”, creator of Lisp. The simplest way to describe the underlying concept of “Cloud’ is by using the vision that John McCarthy has articulated in his 1961 speech at the MIT centennial event. He said: “ …a future in which computing power and even specific applications could be sold through the utility business model, like water and electricity.”

The Cloud Industry Eco-System … as we know it today ISV ISV ISV ISV Application SW, Middleware, Tools Aplicor, Netsuite, Facebook, Youtube. Cloud Services Brokers Traditional consultants, software developers, ISV…. Software as a Service Providers (SaaS) • Users of these cloud services: • Enterprises • Governments • NGO • Consumers • Industry Communities Microsoft Azure, force.com Amazon Elastic Beanstalk Platform as a Service Providers (PaaS) Cloud Infrastructure Service Providers (IaaS) Amazon, Joyent, The IDC (Internet Data Centers) Rack space, 21ViaNet Examples Servers, Storage, Network equipment, data center equipment Hardware Suppliers Hardware Suppliers Hardware Suppliers

Cloud Development in Mainland China 十二五规划中的一些有关描述第十章培育发展战略性新兴产业　　以重大技术突破和重大发展需求为基础，促进新兴科技与新兴产业深度融合，在继续做强做大高技术产业基础上，把战略性新兴产业培育发展成为先导性、支柱性产业。第一节推动重点领域跨越发展大力发展节能环保、新一代信息技术、生物、高端装备制造、新能源、新材料、新能源汽车等战略性新兴产业。节能环保产业重点发展高效节能、先进环保、资源循环利用关键技术装备、产品和服务。新一代信息技术产业重点发展新一代移动通信、下一代互联网、三网融合、物联网、云计算、集成电路、新型显示、高端软件、高端服务器和信息服务。生物产业重点发展生物医药、生物医学工程产品、生物农业、生物制造。高端装备制造产业重点发展航空装备、卫星及应用、轨道交通装备、智能制造装备。新能源产业重点发展新一代核能、太阳能热利用和光伏光热发电、风电技术装备、智能电网、生物质能。新材料产业重点发展新型功能材料、先进结构材料、高性能纤维及其复合材料、共性基础材料。新能源汽车产业重点发展插电式混合动力汽车、纯电动汽车和燃料电池汽车技术。战略性新兴产业增加值占国内生产总值比重达到8%左右。

Cloud Development in Mainland China 十二五规划中的一些有关描述 Very fast development of the following areas: • Government Clouds • Enterprise Private Clouds • Vertical Industry Clouds 第十章培育发展战略性新兴产业　　以重大技术突破和重大发展需求为基础，促进新兴科技与新兴产业深度融合，在继续做强做大高技术产业基础上，把战略性新兴产业培育发展成为先导性、支柱性产业。第一节推动重点领域跨越发展大力发展节能环保、新一代信息技术、生物、高端装备制造、新能源、新材料、新能源汽车等战略性新兴产业。节能环保产业重点发展高效节能、先进环保、资源循环利用关键技术装备、产品和服务。新一代信息技术产业重点发展新一代移动通信、下一代互联网、三网融合、物联网、云计算、集成电路、新型显示、高端软件、高端服务器和信息服务。生物产业重点发展生物医药、生物医学工程产品、生物农业、生物制造。高端装备制造产业重点发展航空装备、卫星及应用、轨道交通装备、智能制造装备。新能源产业重点发展新一代核能、太阳能热利用和光伏光热发电、风电技术装备、智能电网、生物质能。新材料产业重点发展新型功能材料、先进结构材料、高性能纤维及其复合材料、共性基础材料。新能源汽车产业重点发展插电式混合动力汽车、纯电动汽车和燃料电池汽车技术。战略性新兴产业增加值占国内生产总值比重达到8%左右。

Cloud Development in Mainland China http://wenku.it168.com/d_000240581.shtml

Immediate Impacts of the Cloud on the Traditional ISV Industry • Instead of the traditional licensing of the software products from ISV, growing number of SME users will choose to acquire the “service” using a subscription scheme from SaaS operators. • For the larger and more resourceful organizations, many will choose to the outsourcing of “horizontal” and “non-core-business-differentiating” applications offered by the cloud service providers. Some early examples are: email services, web-conferencing services, basic HR and accounting services, electronic document archiving and search services….

Immediate Impacts of the Cloud on the Traditional ISV Industry Traditional SW licensing and maintenance revenue to be replaced by recurring subscription based revenue. • Instead of the traditional licensing of the software products from ISV, growing number of SME users will choose to acquire the “service” using a subscription scheme from SaaS operators. • For the larger and more resourceful organizations, many will choose to the outsourcing of “horizontal” and “non-core-business-differentiating” applications offered by the cloud service providers. Some early examples are: email services, web-conferencing services, basic HR and accounting services, electronic document archiving and search services….

The Longer Term Impacts of the Cloud on the Traditional ISV Industry It Changes the Expectations of the “Customers” (Subscribers): Functions Substantially meeting the client’s needs without costly customization Competitive Pricing Competitively priced subscription fees without high initial setup costs DIY Setup Flexibility of the software – allowing untrained staff of the clients to configure the software to meet different and ever-changing business needs Stability and Reliability Perceived and real strength of the providers, including brand recognition, service commitment to ensure secure and undisrupted services Interoperability Ability for the software to work (without human intervention) with other software (in-house or from another service provider) Portability Ability for the customers to move the data and software to other service providers without significant adverse impact on their businesses.

How Some ISVs are doing this Now without waiting …. ISV providing pre-configured software packages on virtual machines The Quick and Easy Way for some existing packages that are not designed for multi-tenancy deployment to be “sold” on the Cloud. ISV providing pre-configured software packages on virtual machines ISV providing pre-configured software packages on virtual machines ISV providing pre-configured software packages on virtual machines Not the mostoptimal use of resources. Clients choose the package through an online software marketplace Deployment of a virtual instance of the pre-configured software package Some are selling it on the perception of higher security due to the separation of customer data. on a virtual server assigned to this subscriber by the service provider Essentially, it is application hosting on virtual servers with rapid deployment characteristics

Interoperability and Portability in Different Layers of the Cloud Client side Apps Client side Apps Client side Apps Cloud Server side Applications Cloud Server side Applications Cloud Server side Applications SaaS PaaSAPI IDE Tools for SaaS Development PaaS Management Interface • Commons Services (examples): • User Management • User Authentication • SSO • Data Base and Data Management Service • Reporting tools • ESB and SOA Broker • Data Analytics …. • Application Specific Services (examples): • CRM specific functions; • ERP specific functions; • BI specific functions • T&T specific functions…. PaaS 应用支撑服务层 Virtualization Management Cloud Resources Servers, storage, network, facilities… IaaS 基础服务层

Interoperability and Portability in Different Layers of the Cloud Client side Apps Client side Apps Client side Apps Cloud Server side Applications Cloud Server side Applications Cloud Server side Applications Interoperability means the ability for two clouds to dynamically exchange configuration and profile data in order to orchestrate the pooling and sharing of virtual resources without causing disruption to the higher layer services SaaS PaaSAPI IDE Tools for SaaS Development PaaS Management Interface • Commons Services (examples): • User Management • User Authentication • SSO • Data Base and Data Management Service • Reporting tools • ESB and SOA Broker • Data Analytics …. • Application Specific Services (examples): • CRM specific functions; • ERP specific functions; • BI specific functions • T&T specific functions…. PaaS 应用支撑服务层 At the IaaS Layer Virtualization Management Cloud Resources Servers, storage, network, facilities… IaaS 基础服务层

Interoperability and Portability in Different Layers of the Cloud Client side Apps Client side Apps Client side Apps Cloud Server side Applications Cloud Server side Applications Cloud Server side Applications Interoperability means the ability for two clouds to dynamically exchange configuration and profile data in order to orchestrate the pooling and sharing of virtual resources without causing disruption to the higher layer services SaaS PaaSAPI IDE Tools for SaaS Development PaaS Management Interface • Commons Services (examples): • User Management • User Authentication • SSO • Data Base and Data Management Service • Reporting tools • ESB and SOA Broker • Data Analytics …. • Application Specific Services (examples): • CRM specific functions; • ERP specific functions; • BI specific functions • T&T specific functions…. PaaS 应用支撑服务层 Not a major concern of an ISV when developing its applications. At the IaaS Layer Virtualization Management Cloud Resources Servers, storage, network, facilities… IaaS 基础服务层

Interoperability and Portability in Different Layers of the Cloud Client side Apps Client side Apps Client side Apps Cloud Server side Applications Cloud Server side Applications Cloud Server side Applications SaaS PaaSAPI IDE Tools for SaaS Development At the PaaS Layer PaaS Management Interface • Commons Services (examples): • User Management • User Authentication • SSO • Data Base and Data Management Service • Reporting tools • ESB and SOA Broker • Data Analytics …. • Application Specific Services (examples): • CRM specific functions; • ERP specific functions; • BI specific functions • T&T specific functions…. A good interoperability framework at the PaaS layer will greatly reduce the effort for the ISV in developing software to interoperate with other software. Instead of an N-to-N interoperability nightmare, a 1-to-N interface standard can be realized for applications to “talk” to each other. PaaS 应用支撑服务层 Virtualization Management Cloud Resources Servers, storage, network, facilities… IaaS 基础服务层

Interoperability and Portability in Different Layers of the Cloud Client side Apps Client side Apps Client side Apps Choosing the right PaaS platform to support its SW development is an important decision of any ISV. Cloud Server side Applications Cloud Server side Applications Cloud Server side Applications SaaS PaaSAPI IDE Tools for SaaS Development At the PaaS Layer PaaS Management Interface • Commons Services (examples): • User Management • User Authentication • SSO • Data Base and Data Management Service • Reporting tools • ESB and SOA Broker • Data Analytics …. • Application Specific Services (examples): • CRM specific functions; • ERP specific functions; • BI specific functions • T&T specific functions…. A good interoperability framework at the PaaS layer will greatly reduce the effort for the ISV in developing software to interoperate with other software. Instead of an N-to-N interoperability nightmare, a 1-to-N interface standard can be realized for applications to “talk” to each other. PaaS 应用支撑服务层 Virtualization Management Cloud Resources Servers, storage, network, facilities… IaaS 基础服务层

Interoperability and Portability in Different Layers of the Cloud Client side Apps Client side Apps Client side Apps At the SaaS Layer Cloud Server side Applications Cloud Server side Applications Cloud Server side Applications SaaS Interoperability at the SaaS layer is a very complicated issue. It goes beyond the ability for two applications to “talk” to each other. These applications must also understand what each other is talking about with some common definition of terms and pre-agreed collaborative processes. PaaSAPI IDE Tools for SaaS Development PaaS Management Interface • Commons Services (examples): • User Management • User Authentication • SSO • Data Base and Data Management Service • Reporting tools • ESB and SOA Broker • Data Analytics …. • Application Specific Services (examples): • CRM specific functions; • ERP specific functions; • BI specific functions • T&T specific functions…. PaaS 应用支撑服务层 Virtualization Management Cloud Resources Servers, storage, network, facilities… IaaS 基础服务层

Interoperability and Portability in Different Layers of the Cloud Client side Apps Client side Apps Client side Apps At the SaaS Layer Cloud Server side Applications Cloud Server side Applications Cloud Server side Applications SaaS Normally, this cannot be tackled by a single ISV. Industry standards or consortium standards are generally needed to make this work. Interoperability at the SaaS layer is a very complicated issue. It goes beyond the ability for two applications to “talk” to each other. These applications must also understand what each other is talking about with some common definition of terms and pre-agreed collaborative processes. PaaSAPI IDE Tools for SaaS Development PaaS Management Interface • Commons Services (examples): • User Management • User Authentication • SSO • Data Base and Data Management Service • Reporting tools • ESB and SOA Broker • Data Analytics …. • Application Specific Services (examples): • CRM specific functions; • ERP specific functions; • BI specific functions • T&T specific functions…. PaaS 应用支撑服务层 Virtualization Management Cloud Resources Servers, storage, network, facilities… IaaS 基础服务层

Interoperability and Portability in Different Layers of the Cloud Portability generally means the ability for a subscriber to obtain the configuration and profile data for the virtual resources that he is using in one cloud for the easy migration to another cloud. For the storage cloud services, it may simply mean to the ability to export the data and move such data. Client side Apps Client side Apps Client side Apps Cloud Server side Applications Cloud Server side Applications Cloud Server side Applications SaaS PaaSAPI IDE Tools for SaaS Development PaaS Management Interface • Commons Services (examples): • User Management • User Authentication • SSO • Data Base and Data Management Service • Reporting tools • ESB and SOA Broker • Data Analytics …. • Application Specific Services (examples): • CRM specific functions; • ERP specific functions; • BI specific functions • T&T specific functions…. PaaS 应用支撑服务层 At the IaaS Layer Virtualization Management Cloud Resources Servers, storage, network, facilities… IaaS 基础服务层

Interoperability and Portability in Different Layers of the Cloud Portability generally means the ability for a subscriber to obtain the configuration and profile data for the virtual resources that he is using in one cloud for the easy migration to another cloud. For the storage cloud services, it may simply mean to the ability to export the data and move such data. Client side Apps Client side Apps Client side Apps Cloud Server side Applications Cloud Server side Applications Cloud Server side Applications SaaS PaaSAPI IDE Tools for SaaS Development Not a major concern of an ISV when developing its applications. PaaS Management Interface • Commons Services (examples): • User Management • User Authentication • SSO • Data Base and Data Management Service • Reporting tools • ESB and SOA Broker • Data Analytics …. • Application Specific Services (examples): • CRM specific functions; • ERP specific functions; • BI specific functions • T&T specific functions…. PaaS 应用支撑服务层 At the IaaS Layer Virtualization Management Cloud Resources Servers, storage, network, facilities… IaaS 基础服务层

Interoperability and Portability in Different Layers of the Cloud Client side Apps Client side Apps Client side Apps Cloud Server side Applications Cloud Server side Applications Cloud Server side Applications SaaS PaaSAPI IDE Tools for SaaS Development At the PaaS Layer PaaS Management Interface • Commons Services (examples): • User Management • User Authentication • SSO • Data Base and Data Management Service • Reporting tools • ESB and SOA Broker • Data Analytics …. • Application Specific Services (examples): • CRM specific functions; • ERP specific functions; • BI specific functions • T&T specific functions…. Application software are generally “locked” to the IDE that the ISV has chosen. The supporting libraries can be more neutral in terms of technologies chosen at the IDE level. APIs of these libraries are commonly abstracted as services that can be invoked by different technologies. PaaS 应用支撑服务层 Virtualization Management Cloud Resources Servers, storage, network, facilities… IaaS 基础服务层

Interoperability and Portability in Different Layers of the Cloud Currently, most PaaS services offered are not taking portability of the application software as their primary concern. ISV needs to watch out for their own interest in choosing the PaaS platform. Client side Apps Client side Apps Client side Apps Cloud Server side Applications Cloud Server side Applications Cloud Server side Applications SaaS PaaSAPI IDE Tools for SaaS Development At the PaaS Layer PaaS Management Interface • Commons Services (examples): • User Management • User Authentication • SSO • Data Base and Data Management Service • Reporting tools • ESB and SOA Broker • Data Analytics …. • Application Specific Services (examples): • CRM specific functions; • ERP specific functions; • BI specific functions • T&T specific functions…. Application software are generally “locked” to the IDE that the ISV has chosen. The supporting libraries can be more neutral in terms of technologies chosen at the IDE level. APIs of these libraries are commonly abstracted as services that can be invoked by different technologies. PaaS 应用支撑服务层 Virtualization Management Cloud Resources Servers, storage, network, facilities… IaaS 基础服务层

Interoperability and Portability in Different Layers of the Cloud Client side Apps Client side Apps Client side Apps At the SaaS Layer Cloud Server side Applications Cloud Server side Applications Cloud Server side Applications SaaS • Portability of the SaaS application depends greatly on the PaaS layer that the ISV is choosing. • IDE technology, • the common services provided by the PaaS operators, • the industry specific library that are available to support SaaS development. PaaSAPI IDE Tools for SaaS Development PaaS Management Interface • Commons Services (examples): • User Management • User Authentication • SSO • Data Base and Data Management Service • Reporting tools • ESB and SOA Broker • Data Analytics …. • Application Specific Services (examples): • CRM specific functions; • ERP specific functions; • BI specific functions • T&T specific functions…. PaaS 应用支撑服务层 Virtualization Management Cloud Resources Servers, storage, network, facilities… IaaS 基础服务层

Interoperability and Portability in Different Layers of the Cloud Client side Apps The key is in the choice of the PaaS partner {the IDE and the support library functions}. Any lock-in risk? What if one day that you need to move the application to another PaaS provider? Can the IDE and library be independently licensed to support the move? Client side Apps Client side Apps At the SaaS Layer Cloud Server side Applications Cloud Server side Applications Cloud Server side Applications SaaS • Portability of the SaaS application depends greatly on the PaaS layer that the ISV is choosing. • IDE technology, • the common services provided by the PaaS operators, • the industry specific library that are available to support SaaS development. PaaSAPI IDE Tools for SaaS Development PaaS Management Interface • Commons Services (examples): • User Management • User Authentication • SSO • Data Base and Data Management Service • Reporting tools • ESB and SOA Broker • Data Analytics …. • Application Specific Services (examples): • CRM specific functions; • ERP specific functions; • BI specific functions • T&T specific functions…. PaaS 应用支撑服务层 Virtualization Management Cloud Resources Servers, storage, network, facilities… IaaS 基础服务层

Summary They mean different things to different people • There are different dimensions to look at the concept of “Interoperability” and “Portability” on the Cloud. • We have examined these two concepts from the standpoint of ISV only. • From the standpoint of users, their concerns will be somewhat different. WE will have to do that at another time.

Q & A

Cloud Computing Its Potential Impact on the ISV Industry…