Cloud Computing, OSS, and SaaS

陆建豪 Paul Lu
Director, Sun Open Source Innovation Center
CEO, Wuxi Cloud Computing Center
Oct. 2008
Topics:
z What is Cloud Computing Technology
z OSS Trends and Perspectives in China
z What Opportunities OSS bring to China
z How make that happen: A new business model:
Cloud Computing + OSS + SaaS + China
z Thanks
Cloud Computing – big deal, buzz, bubble ?
‹ November, 2007, in Shanghai, IBM unveiled plans for “Blue
Cloud”.
‹ Feb 2008, IBM’s first Cloud Computing Center for software
companies in China will be situated at the new Wuxi Tai Hu
New Town Science and Education Industrial Park in Wuxi,
China
‹ May 2008, Wuxi Cloud Computing Center celebrated its
opening ceremony
‹ October, 2008, Microsoft unveiled its cloud computing
platform, dubbed Windows Azure.

‹ Amazon’s EC2 – Elastic Computing Cloud

‹ Google’s App Engine

 What is Cloud Computing Technology

‹ IBM - HiPODS
z The cloud is a next generation platform that provides dynamic
resource pools, virtualization, and high availability.
z Cloud computing describes both a platform and a type of
application.
z A cloud computing platform dynamically provisions, configures,
reconfigures, and deprovisions servers as needed.
z Cloud applications are applications that are extended to be
accessible through the Internet. These cloud applications use large
data centers and powerful servers that host Web applications and
Web services.
What is Cloud Computing Technology
What is Cloud Computing Technology
What is Cloud Computing Technology
What is Cloud Computing Technology
软件配置 软件研发平台
软件研发平台
需求架构管理平台
需求架构管理平台

DB2 需求变更对模 管理代码

Software 型的影响 并行开发协作
Architect ClearQuest
Utilizes

团队建模开发
WebSphere

执行性能测试
开发代码进行白盒测试
质量保证管
质量保证管 ClearCase
运行时测试
理支撑平台
理支撑平台

追踪代码和
追踪需求和 开发任务
Functional ITCAM 测试关联 追踪需求变更和 (UCM)
Tester 开发任务

提交BUG
Performance ClearQuest
PurifyPlus
Tester
ClearQuest
TestManager 提交BUG
质量保证管 创建&执行测试脚本 配置和变更管理平台
质量保证管 配置和变更管理平台
理平台
理平台
 Why we need Cloud Computing
‹ Energy cost are increasing: Power and cooling are expensive.
Today, it costs far more to run computers than it does to buy them in
the first place. This is about economics and engineering: improve the
utilization
¾ CPU utility is about 15% - 20%
‹ IT system are more complex and interdependent: The
administration costs are more than the costs of IT system itself in the
whole life cycle : automation
‹ IT budget increasing rate is much lower than IT demand
increasing rate
¾ IT budget increasing rate is about 5% - 9% CAGR
¾ CPU demand 11% CAGR, Storage demand 22% CAGR,
bandwidth: 50% CGAR
 Why we need Cloud Computing
‹ Global Access: get service, configure and provision IT
infrastructure
‹ PaaS : Platform As A Service
¾ No or low entry cost
¾ Pay As You Go platform service
‹ Dynamic environment
¾ Market and business changes requires IT system react
rapidly
 The Value Propositions of Cloud Computing
‹ Improve the utilization of the system
¾ Consolidation
¾ Share the system: resource pools, load balancing
¾ Dynamically allocate resources
‹ Automatic configuration, provision, and management
¾ Reduce Labor and management costs
¾ Easy and simple management
‹ Low entry cost
‹ Pay As You Go service: No long term commitment
 The Value Propositions of Cloud Computing
‹ Improve IT agility : Quick lunch services
‹ Flexibility: adaptable to business changes
‹ Scalability
‹ High Availability

Cloud Computing is Real, big thing. It needs time to mature. A lot of

things going on.
Wuxi Cloud Computing Center Portal
Logon
Apply For Resources
Submit the requests
 OSS Future: How Experts Tell Us
Gartner 2007：
‹ By 2010, 75 percent of open-source software will be deployed on
newly created (instead of "rip and replace") IT systems (0.8
probability).
‹ By 2010, OSS solutions will directly compete with closed source
products in all software infrastructure and workplace application
markets (0.8 probability).
‹ By 2010, at least 40 percent of mainstream IT organizations will
include OSS in their workplace-focused software investments
(0.7 probability).
OSS Future: How Experts Tell Us
 OSS Trends: From Foundations to Applications
‹ General acceptance of infrastructure and networking OSS
‹ Number and maturity of open-source applications growing
‹ Open-source applications included in conventional products
‹ Rich Internet Application technology improves acceptance of open
source as a service
‹ Open-source product support from service providers
‹ Open-source development principles adopted by software vendors

OSS software can solve our real problems now. It is a great

opportunity for innovative IT companies to deliver values to
customers by OSS products, or by providing services based
on OSS, or by adding values on top of OSS products and
services
OSS Trends: From Foundations to Applications
OSS Trends: Commercial Goes Open Source

‹Vendor Motivation
¾Transparency
¾Counter the insurgency
¾Lower-end offerings
¾Market disruption
‹Buyer’s Motivations
¾Lower cost
¾Reduce vendor lock-in
OSS Trends: Open Source Goes Commercial
‹Vendor Motivation
¾ Food, shelter
¾ IPO or acquisition $
¾ It costs money to support
‹Buyer’s Motivations
¾ Predictable support
¾ Security fixes
¾ Someone responsible
How Customers Consider OSS
 What OSS Brings To China
Leverage the Chinese software companies’ technical capability to a level
matches to global software companies
‹ China is an emerging markets, IT market is dominated by
global software companies
‹ Local venders can not compete with global companies because
of technical barrier
‹ Relative small market, piracy issue in China, and existing
products and services from global companies, squeeze local
vendors to only succeed in non main stream markets
‹ OSS makes the software source codes open to everyone,
including the vendors in China, eliminating the technical
barrier for Chinese local software vendors
 What OSS Brings To China
Leverage the Chinese software companies’ technical capability to a level
matches to global software companies
‹ By studying the existing OSS projects, local Chinese software
companies can, instead of inventing the wheel, not only master
the technologies, but also develop new and advanced products
and services based on these existing OSS projects.
‹ It is quite possible that China software industry can have a big
and quick advance based on OSS and therefore, for the first
time in the history, compete neck to neck, head to head with
global companies
 What OSS Brings To China
Open the potential huge markets
‹ Traditional business model high TCO prevents many Chinese
companies, including large enterprise, adopting many IT
technologies simple because the solutions are not cost-effective
considering labor costs are low in China and the margins of
many Chinese companies are small. This also happens for
many SMB in many developed counties. Many IT solutions
are not accessible for SMB simple they are just too expensive
‹ The low cost OSS based solutions will be cost effective for
many SMB in developed countries as well as many companies
in China. This will make Chinese IT market soon become the
largest IT market in the world. There are over 30 m SMB in
china
 What OSS Brings To China
People make difference
‹ Once overcoming the technical barrier, with hug talent
pool, the local companies in China will make high
quality software for domestic and possible global
market in the future and yet the cost will be so low that
now we can not image how much low they can be.

Bad becomes not so bad and good becomes better

‹ Piracy issue: with the OSS and SaaS, piracy will become a minor
issue since OSS opens the source code, and SaaS does not
distribute the software at all.
‹ Many revenues come from service in the future, and it is always
true that local vendors will provide better services to the local
customers, so is China. The local vendors in China will have
relatively competitive advantages over global vendors at least in
China domestical IT market
What OSS Brings To China
OSS will give the great opportunities, which includes technology,
market, competitive advantages, for the local vendors in
China. China’s rising in IT will not only greatly impact China
domestical IT market but also global IT market in the future,
just as same as China manufacture industry does today.
 New Business Model: Cloud Computing + OSS +
SaaS + China
‹ Huge IT market in China, esp for SME IT market
‹ China local vendors understand IT market in China
‹ No or low entry costs for SaaS service providers to lunch IT
services
¾ Software is free or low cost
¾ Platform is based on Cloud Computing, very low entry
cost
‹ Professional supports and upgrade services
‹ Easy build values on top of current OSS applications
‹ Low software licensing costs
 Thanks
‹ China-Japan-Korea OSS Forum
‹ Wuxi Municipal Government and Wuxi Municipal
Information Office
‹ Wuxi TaiHu New Town Science & Education Industrial
Park – K-Park
‹ IBM
‹ Sun Microsystem
Welcome to visit K-Park, Wuxi Cloud Computing Center, and
Sun Open Source Innovation Center Tomorrow and I will make
a demo to run a OSS in Wuxi Cloud Computing Center
Thank You 谢 谢