Blue Sky Thinking

Business Management speaks to VMware’s Wendy Perilli about how virtualization is enabling the cloud computing revolution.

“This vision of boundary-less IT drives better business alignment, while continuing to drive out CAPEX and OPEX spend”
-Wendy Perilli

Both cloud computing and virtualization offer substantial flexibility in the way applications, services and resources are pooled and distributed, and they both represent the final break from the silo-style architecture that has dominated IT from the outset. But what is the (virtual) reality for most companies, and what do they need to do to prepare for the cloud computing revolution?

Cloud computing and virtualization represent Gartner’s top two strategic technology trends for 2009, and are often mentioned in the same breath. How do you think virtualization intersects with or is different from cloud computing?
Wendy Perilli. Virtualization is a key enabler that differentiates cloud computing from the ASP, ISP, MSP models we remember from the late 1990s. It is providing service providers with the agility and reliability needed to deliver infrastructure on demand. Similar to service providers, enterprises have also gained the benefits of agility and reliability from virtualization. Customers are seeing virtualization as the first step in their journey to delivering IT as a service internally. By leveraging virtualization, IT groups are adding self-service capabilities and chargeback elements to transform how they deliver services that align with the business.

We expect to see IT groups that look at internal and external compute capacity as a giant pool of resources that they can start to provision off based on the SLA of the applications and the business needs. This vision of boundary-less IT drives better business alignment, while continuing to drive out CAPEX and OPEX spend.

What is VMware doing to take advantage of the potential inherent in cloud computing?
WP. VMware sees cloud computing not just as a way to consume an application over the internet, or an outlet for frustrated development teams to get infrastructure provisioned faster. In addition, VMware sees cloud computing as empowering IT to best manage those experiences. With over 130,000 customers world wide, the cloud needs to be a way to drive increased efficiencies, reduce costs and be a reliable delivery vehicle.  This is why our cloud strategy looks at how clouds are built internally and leveraged externally to deliver a federated, enterprise-ready private cloud.

The strategy delivers three key elements. First, technology: VMware delivers a reliable platform that offers the same experience on site or within a service provider. Additionally, as an innovator, customers trust VMware to deliver the future of cloud computing, both on and off premise. Second, choice: whether building an internal cloud or consuming external resources, VMware offers choice in where your applications will live and the mobility offered among them. VMware partners with over 700 service providers worldwide delivering VMware technology as a platform for IT as a service and many other value-add offerings, like disaster recovery and test and development. Third, applications: unlike many proprietary clouds covered in the media today, VMware delivers the platform that businesses trust to run production applications on or off site. With VMware, there is no need to rewrite your application to work in the cloud, and if you choose to bring it back in-house, you know it will work.

How real is the vision of cloud computing for the average organization today? Are we set to see a mass migration of IT functions toward external suppliers?
WP. Many research studies have shown that about 20% of the enterprise market is consuming or about to trial cloud from an external resource. Interestingly enough, about the same number are looking at how to build their own internal cloud, while the balance is still uncertain on direction. As the market unfolds and businesses scope out their cloud strategy, we’ll see a wave of external cloud trials. Analysts are recommending this as the strategy for 2009 and encouraging low risk applications like collaboration or test/dev to be put in the cloud. This will set the expectation of the cloud experience, including anticipated SLAs, costs savings, performance and so on.

Additionally, we see many larger customers starting to scope out internal clouds and considering how they will deliver IT as a service within their own enterprises. Many of these businesses have been waiting for the cloud-wave to take hold as a proof point to show how IT should be delivered. This provides IT management with the models and data points to prove to senior executives that leveraging internal and external clouds optimizes the alignment of IT and business.

Are there any implementation challenges? What recommendations do you have for companies looking to get started on a cloud computing approach?
WP. The challenges associated with consuming an external cloud include application compatibility, mobility of environments if required for business needs or performance issues, and control and visibility of what goes into an external cloud. Although it may be relatively easy to get into an external cloud, much like a roach motel, it can be very hard to get out. Knowing the cloud provider’s virtualization platform is compatible with your internal organization, as well as over 700 other providers world wide, gives users peace of mind in knowing the application won’t be stuck in the cloud.

For internal clouds, we recommend customers to continue with their virtualization strategy. Given virtualization is the foundation of the cloud, leveraging VMware’s strength and innovation, users will gain efficiencies through elements for automation, like self-service access points for business groups, or management, like chargeback. Essentially, the journey to internal and ultimately federated clouds (on and off premise) will extend from your virtualization strategy. For users looking for input on an internal cloud strategy, read VMware’s whitepaper Eight key ingredients for building an internal cloud.

What impact will the current economic climate have on organizations’ willingness to adopt cloud computing?
WP. The economic downturn is artificially driving the adoption of external cloud consumption at a much faster rate. With fewer people to do the same or more work in many IT groups, businesses are forced to look at outsourcing as an option. One example is the auto industry, as bankruptcy looms for some, many IT staff are losing their jobs, but the role of IT still remains critical. One such example is a group that had dwindled down to one IT person to run all of IT. He was forced to start outsourcing applications that may not normally be outsourced for an enterprise of that scale, like email. This example is of course more extreme than most, but across the board, companies are looking for ways to get more efficiencies from less resources. Survey data confirms this by showing the leading goal of IT executives is to drive down operating expenses.

Does the realization of the cloud computing vision have any implications for data backup, security and compliance? How are these being addressed?
WP. As businesses start to explore external cloud resources, security and compliance are critical. It’s one of the main reasons why more applications aren’t being considered for external clouds and why the growth of internal clouds continues. There will be applications that have data so critical or confidential that an external cloud will never be an option. Challenges such as security, availability, control, management, and compliance are key inhibitors to broader adoption of external clouds. That said, providers that have dealt with enterprises and government agencies are more likely to be the first to tackle these challenges. Once such provider, Terremark, a VMware vCloud provider, delivers cloud services to many enterprises and recently won business to host the usa.gov website. Proof points like this will provide an example for moving critical applications off premise.

Finally, what is next for VMware in this space?
WP. VMware is committed to delivering the private cloud and all the elements that enable our customers to fully experience the benefits of clouds. VMware will continue to work with service providers to deliver a broader ecosystem with a variety of value add services. Customers will also see new technologies that enable internal clouds to evolve and federate to external providers, with the control IT professionals desire.

As Director for Cloud Computing Product Marketing at VMware, Wendy Perilli is responsible for driving the company’s thought leadership strategy as it pertains to cloud computing. She joined VMware in 2006 and brings over 16 years of high-tech experience to the role.