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An Oracle White Paper May 2010 Oracle Cloud Computing 1 Executive Overview Cloud computing is a significant advancement in the delivery of information technology and services. By providing on demand access
An Oracle White Paper May 2010 Oracle Cloud Computing 1 Executive Overview Cloud computing is a significant advancement in the delivery of information technology and services. By providing on demand access to a shared pool of computing resources in a self-service, dynamically scaled and metered manner, cloud computing offers compelling advantages in speed, agility and efficiency. Today, cloud computing is at an early stage in its lifecycle, but it is also the evolution and convergence of several trends that have been driving enterprise data centers and service providers over the last several years. Cloud computing builds off a foundation of technologies such as grid computing, which includes clustering, server virtualization and dynamic provisioning, as well as SOA shared services and largescale management automation. For the better part of a decade, Oracle has been the leader in these areas with thousands of customer successes and high level of investment. Today, Oracle offers the industry s most complete, open and integrated products and services to enable public, private and hybrid clouds. Oracle aims to make cloud computing fully enterprise-grade and supports both public and private cloud computing to give customers choice. Oracle offers technology that enables organizations to build private clouds, leverage public clouds and provide cloud services to others. Oracle also offers a broad set of horizontal and industry applications that run in a shared services private cloud model as well as a public Software-as-a-Service (SaaS) cloud model. This white paper provides an overview of Oracle s cloud computing strategy and how Oracle helps customers and partners plan their evolution and adoption of a cloud computing model. 2 Introduction to Cloud Computing Cloud computing is a model for enabling convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction. This definition from the National Institute of Standards 1 has gained broad support from the industry. The NIST definition of cloud computing describes five essential characteristics, three service models and four deployment models. Five Essential Characteristics On-demand self service Users are able to provision, monitor and manage computing resources as needed without the help of human administrators Broad network access Computing services are delivered over standard networks and heterogeneous devices Rapid elasticity IT resources are able to scale out and in quickly and on an as needed basis Resource pooling IT resources are shared across multiple applications and tenants in a non-dedicated manner Measured service IT resource utilization is tracked for each application and tenant, typically for public cloud billing or private cloud chargeback Three Service Models Software as a Service (SaaS) Applications delivered as a service to end-users typically through a Web browser. There are hundreds of SaaS service offerings available today, ranging from horizontal enterprise applications to specialized applications for specific industries, and 1 NIST Definition of Cloud Computing v15. 3 also consumer applications such as Web-based . Oracle CRM On Demand is an example of a SaaS offering that provides both multi-tenant as well as single-tenant options, depending on the customer s preference. Oracle also offers enterprise-grade enabling technology to Independent Software Vendors (ISVs) to build their own SaaS offerings. Oracle calls this enabling technology the Oracle Platform for SaaS. Hundreds of ISVs have built their SaaS offering on top of the Oracle Platform for SaaS. Platform as a Service (PaaS) An application development and deployment platform delivered as a service to developers who use the platform to build, deploy and manage SaaS applications. The platform typically includes databases, middleware and development tools, all delivered as a service via the Internet. PaaS offerings are often specific to a programming language or APIs, such as Java or Python. A virtualized and clustered grid computing architecture is often the basis for PaaS offerings, because grid provides the necessary elastic scalability and resource pooling. Oracle offers a comprehensive PaaS product offering for public cloud service providers as well as enterprise customers to build their own public clouds. Oracle calls this the Oracle PaaS Platform (more on this later in this paper). Infrastructure as a Service (IaaS) Compute servers, storage, and networking hardware delivered as a service. This infrastructure hardware is often virtualized, so virtualization, management and operating system software are also part of IaaS as well. An example of IaaS is Amazon s Elastic Compute Cloud (EC2) and Simple Storage Service (S3). Oracle does not offer IaaS cloud services, but Oracle provides hardware and software products to other IaaS providers to enable their public cloud services, and also offers the same technologies to enterprises for private use. Four Deployment Models Private Clouds For exclusive use by a single organization and typically controlled, managed and hosted in private data centers. The hosting and operation of private clouds may also be outsourced to a third party service provider, but a private cloud remains for the exclusive use of one organization. Public Clouds For use by multiple organizations (tenants) on a shared basis and hosted and managed by a third party service provider. Community Clouds For use by a group of related organizations who wish to make use of a common cloud computing environment. For example, a community might consist of the different branches of the military, all the universities in a given region, or all the suppliers to a large manufacturer. 4 Hybrid Clouds When a single organization adopts both private and public clouds for a single application in order to take advantage of the benefits of both. For example, in a cloudbursting scenario, an organization might run the steady-state workload of an application on a private cloud, but when a spike in workload occurs, such as at the end of the financial quarter or during the holiday season, they can burst out to use computing capacity from a public cloud, then return those resources to the public pool when they are no longer needed. Comparing Public and Private Clouds The two basic models of public and private clouds have a number of compelling business benefits, some of which are common to both public and private, while others are only for one or the other. Benefits common to both public and private clouds include: High efficiency Because both public and private clouds are based on a grid computing and virtualization, both offer high efficiency and high utilization due to the sharing of pooled resources, enabling better workload balancing across multiple applications. High availability Another benefit of being based on grid computing is that applications can take advantage of a high availability architecture that minimizes or eliminates planned and unplanned downtime, improving user service levels and business continuity. Elastic scalability Grid computing also provides public and private clouds with elastic scalability, the ability to add and remove computing capacity on demand. This is a significant advantage for applications with highly variable workload or unpredictable growth, or for temporary applications. Fast deployment Because both public and private clouds can provide self-service access to a shared pool of computing resources, and because the software and hardware components are standard, re-usable and shared, application deployment is greatly accelerated. Some benefits are unique to public cloud computing: Low upfront costs Public clouds are faster and cheaper to get started, so they provide users with a low barrier to entry because there is no need to procure, install and configure hardware. 5 Economies of scale Large public clouds enjoy economies of scale in terms of equipment purchasing power and management efficiencies, and some may pass a portion of the savings onto customers. Simpler to manage Public clouds do not require IT to manage and administer, update, patch, etc. Users rely on the public cloud service provider instead of the IT department. Operating expense Public clouds are paid out of the operating expense budget, often times by the users line of business, not the IT department. Capital expense is avoided, which can be an advantage in some organizations. Other benefits are unique to private cloud computing: Greater control of security, compliance and quality of service Private clouds enable IT to maintain control of security (data loss, privacy), compliance (data handling policies, data retention, audit, regulations governing data location), and quality of service (since private clouds can optimize networks in ways that public clouds do not allow). Easier integration Applications running in private clouds are easier to integrate with other in-house applications, such as identity management systems. Lower total costs Private clouds may be cheaper over the long term c to public clouds, since it is essentially owning versus renting. According to several analyses, the breakeven period is between two and three years. Capital expense and operating expense Private clouds are funded by a combination of capital expense (with depreciation) and operating expense. Cloud Benefits and Challenges Recent surveys show that the top two benefits of cloud computing are speed and cost. Through selfservice access to an available pool of computing resources, users can be up and running in minutes instead of weeks or months. Making adjustments to computing capacity is also fast, thanks to elastically scalable grid architecture. And because cloud computing is pay-per-use, operates at high scale and is highly automated, the cost and efficiency of cloud computing is very compelling as well. The same surveys reveal that there are a number of issues and concerns that are holding some organizations back from rushing to the cloud. The top concern far and away is security. While one can debate the relative security of public clouds versus in-house data centers, the bottom line is that many organizations are not comfortable entrusting certain sensitive data to public clouds where they 6 do not have full visibility and full control. So some particularly sensitive applications will remain inhouse while others may take advantage of public clouds. Another concern is quality of service, since clouds may not be able to fully guarantee service level agreement in terms of performance and availability. A third area of concern is fit, the ability to integrate with in-house systems and adapt SaaS applications to the organization s business processes. To recap, cloud computing is characterized by real, new capabilities such as self-service, auto-scaling and chargeback, but is also based on many established technologies such as grid computing, virtualization, SOA shared services and large-scale, systems management automation. Cloud computing offers compelling benefits in terms of speed and cost, but also presents serious concerns around security, compliance, quality of service and fit. Organizations will likely adopt a mix of public and private clouds. Some applications will be appropriate for public clouds, while others will say in private clouds, and some will not use either. With this view of cloud computing in mind, we now turn to the role that Oracle and its products play in the cloud era. Oracle Cloud Computing Strategy Oracle s overall corporate strategy is to provide the industry s most complete, open and integrated set of products from applications to disk. For cloud computing, Oracle s strategy is to: Ensure that cloud computing is fully enterprise grade Oracle provides enterprise grade technology for high performance, reliability, scalability, availability, security and portability/interoperability (based on standards). Enterprises demand these characteristics before moving important workloads to a public or private cloud. Support both public and private clouds to give customer choice Organizations are adopting different deployment models for cloud computing for different applications at different rates of speed, so Oracle supports customers no matter what type of cloud or noncloud they choose. Deliver most complete PaaS and IaaS product offerings Oracle provides the most complete portfolio of software and hardware products to enable organizations to build, 7 deploy and manage public and private PaaS and IaaS. A key element of Oracle s strategy is to offer the Oracle PaaS Platform, which is discussed in more detail later in this paper. Develop and enable rich SaaS offering Oracle offers a very broad portfolio of horizontal and industry applications that are deployed in either a private shared services environment or in a public SaaS model. While there is still significant debate on when and how the different dimensions of cloud computing will become viable for different industries and businesses, there is broad agreement that it will have an increasing impact on nearly every IT organization. Cloud computing is driving a significant part of Oracle s product development plans from enterprise applications to middleware, databases, servers and storage devices, as well as cloud management systems. Taken together, these developments are building off Oracle s grid computing architecture to create an out-of-the-box solution for cloud computing: Oracle PaaS Platform. Oracle PaaS Platform The Oracle PaaS Platform is a comprehensive portfolio of products to build an application platform delivered as a public or private cloud service. The Oracle PaaS Platform is based on Oracle grid technologies including Oracle Database with Real Application Clusters and Oracle application grid including WebLogic Server, Coherence in-memory data grid and the JRockit JVM. On top of this foundation of clustered middleware and database technologies, the Oracle PaaS Platform also includes components such as Oracle SOA Suite, Oracle BPM Suite, Oracle Identity Management and Oracle WebCenter. The Oracle PaaS Platform is built on top of a robust Oracle IaaS offering consisting of Oracle Solaris, Oracle Enterprise Linux and Oracle VM for virtualization, Sun SPARC and x86 servers, and Sun storage. Both the Oracle PaaS and Oracle IaaS are managed by Oracle Enterprise Manager, which provides integrated systems management from applications to disk across the complete cloud deployment lifecycle. 8 Figure 1. Oracle PaaS Platform For many organizations deciding between building a PaaS or IaaS offering, the key issue is how much of a standardized, re-usable and shared platform do they want to provide their users. An IaaS provides the basic compute, storage and networking capacity, so it is the most flexible, but it requires users to provide the rest, including the application, middleware and database, resulting in greater development cost, time and heterogeneity. For many organizations, a private PaaS is a natural strategy that benefits users as well as the IT service provider. A PaaS gives users a standardized, re-usable and shared starting point for application development, providing faster and simpler development with sufficient flexibility. From IT s standpoint, a PaaS offering means greater manageability, security, consistency, efficiency and control. Private PaaS Lifecycle To illustrate how a private PaaS would work within an enterprise, the following is a brief description of the basic steps in the private PaaS lifecycle: 1. First, the IT department sets up the PaaS Platform, including a number of standard, shareable components (may be Web services, BPM processes or UI components) and a self-service application for users. 2. Second, a departmental developer goes through the self-service application to discover the available shared components, assembles the application from those components instead of 9 creating it from scratch, and deploy the application, all through self-service with no IT involvement. 3. Next, end-users begin to use the application. 4. To manage the application, the application owner can use the self-service application to monitor the application, adjust capacity if necessary, and track usage and how much they are being charged for use of the cloud resources. Clearly the above lifecycle is an over-simplification of the real process, but is illustrative of the basic steps. Enterprise Evolution to Cloud Computing Most organizations will not jump immediately to cloud computing. Instead, most will evolve their current IT infrastructure to become more cloud-like characteristics over time. The available technology is rapidly evolving and advancing, but organizations will also need to change their policies and processes. In many cases, the technical building blocks for cloud computing are available in advance of enterprise readiness. Figure 2. Enterprise Evolution to Cloud Computing The first step in the evolution that many enterprises are already taking is to move from a siloed environment to a grid or virtualized environment moving from a dedicated, rigid, physical structure for each application to a virtual environment with shared services, dynamic provisioning and 10 standardized configurations or appliances. This trend is very strong right now. Many enterprises are leveraging grid and virtualization technologies to consolidate and reduce costs. Oracle has a very strong and complete offering for grid, with products in the database and middleware layers, such as Real Application Clusters, TimesTen, WebLogic and Coherence, plus Oracle VM for server virtualization and Enterprise Manager for managing the entire stack. From here, enterprises can evolve to cloud by adding self-service and pay-per-use to the envoniment. A user goes to the employee portal, signs in, makes a request for a virtual machine with a certain amount of CPU, memory and disk, picks a VM image for database or middleware, then clicks submit. If that employee s role and entitlements allow her to have that amount of IT resource, then it is automatically provisioned without an IT administrator being involved. If not, the request may be routed to a manager and/or IT for approval. In just a few minutes, they are up and running with an instance of the PaaS platform. After the application is deployed, the system has policy-based resource management to automatically make capacity adjustments, and the employee s business unit gets an internal charge every month based on how much IT resources they consumed. To make all that happen, the enterprise must have policies and processes defined, and the technology must be able to support it. Meanwhile, public clouds are also evolving. There are already many different public cloud offerings at all the layers of the cloud: SaaS, PaaS and IaaS. Many began as ISVs or hosting service providers. These offerings are typically highly specialized and isolated. Ultimately, the evolution will move to a hybrid cloud model where a single application can span both private and public clouds and is managed in a federated manner through a single pane of glass. For this to happen, there need to be standards for interoperability and portability, and there needs to be technology to support such interoperability. The notion of cloud bursting is very compelling to CIOs. This is when an application s steady-state workload runs on the in-house private cloud, on hardware and data centers owned by the enterprise. But when there s a peak in the workload, it can dynamically burst out to a public cloud and take advantage of that capacity. When the peak is over, it can return that capacity back to the pool and shed that cost. Organizations will evolve through these basic stages
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