Research

Cloud Computing without the hype; an executive guide

Defining cloud computing and identifying the current players

Author:

Steve Craggs Version 1.00 November 2009

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Table of Contents
Executive Summary .................................................. 2 What is a cloud? ....................................................... 3 Why use a cloud? ..................................................... 4 Cloud flavours........................................................... 4 Cloud location and access options ..................... 4 What does the cloud offer, and in what form? ..... 6 The Cloud Computing marketplace .......................... 8 Some sample scenarios ........................................... 9 Gmail................................................................... 9 Amazon EC2 ....................................................... 9 Windows Azure ................................................... 9 Salesforce.com and Force.com ........................ 10 Shared testing facilities ...................................... 10 Storage clouds .................................................. 10 Summary ................................................................ 11 Glossary ................................................................. 12 Appendix-The Cloud Computing Market ................ 13 Infrastructure Services ....................................... 14 Platform Services .............................................. 14 Software Services ............................................. 15 Cloud Software ................................................. 16

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Disclaimer
Whilst reasonable care and skill has been taken by Lustratus Research Limited (the company) in the preparation of this report no liability is accepted by the company (except in the case of death or personal injury caused by the company's negligence) by reason of any representation or any implied warranty condition or other term or any statutory or common law duty or otherwise howsoever arising for any direct or indirect general special or consequential damages or loss costs expenses or other claims (whether caused by the negligence of the company or otherwise) which come out of the provision of this report or its use. All trademarks are acknowledged as the property of their respective owners.

About Steve Craggs

Steve Craggs has been in the IT industry for more than 25 years, much of that time in IBM. Steve held various positions in the IBM development organization, culminating in becoming the Worldwide Executive in charge of IBMs MQSeries middleware, now renamed as WebSphereMQ. Steve has been an independent consultant and analyst for the last 7 years, and is recognized as one of the leading authorities in the world on business integration software and solutions, and middleware in general. Steve is President of Saint Consulting, a Director of Lustratus and Vice-Chairman of the Integration Consortium, a global not-for-profit group for furthering the understanding of integration. Steve is a regular speaker at shows, events and webcasts in the US and Europe, and is a frequent contributor to a wide range of global IT publications. Steve publishes research and reports at http://www.lustratus.com/ and blogs on infrastructure technology at http://www.lustratusrepama.com/litebytes.

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Executive Summary

Executives are constantly faced with new initiatives from the IT world, bombarded by vendors, media and even their own internal teams with the latest buzz-words and IT innovations. In the face of this onslaught it can be really hard to sort out the wheat from the chaff, particularly since the IT market has a nasty habit of seizing on every new idea and trying to paint it as the latest must have concept. Cloud Computing is the most recent in a long series of confusing new initiatives to emerge. Suddenly, everyone is talking about The Cloud, and banner headlines are trumpeting the fantastic savings / improved agility / better IT business alignment being offered. Executives find themselves struggling to know what to do, under pressure from myriad vendor claims and with a growing feeling of unease that somehow their companies may be missing out. The problem is that the IT industry is never very good at defining its latest terms, and for people without the time to get thoroughly immersed in the subject, or the persistence to cut through the hype, it can be almost impossible to make any sort of informed decision. This paper is designed to clarify some of this confusion, not at an in-depth technical level but from 50,000 feet or 10,000 at least. The idea is to help the beleaguered executive get a reasonable grounding in Cloud Computing and its concepts, in order to support more accurate decision making and the optimal corporate IT strategy. A number of the main acronyms and terms will be covered, together with the main Cloud Computing operational models, and the Appendix provides a quick summary of some of the many vendors now playing in this marketplace. In the end analysis, there does appear to be something of value for most companies in Cloud. However, the key is to get enough understanding of the various flavours of Cloud and the different benefits promised by each in order for individual organizations to identify their best fits.

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What is a cloud?
Shared resource On demand Elasticity Networked access Usage based metering

There are many conflicting definitions of Cloud Computing in the industry, with different spins being chosen based on the specific agendas of the sources involved. However, at its heart the concept of Cloud Computing is based on a few fundamental precepts.

The cloud is a shared pool of IT resources eg applications, processors, storage, databases

Users can call up resources from the cloud, use them and then release them when they are done in a self service fashion

More and more resource can be dynamically procured to satisfy peaks in demand, and then released when demand subsides

The cloud is widely accessible, most commonly through the Internet

Cloud services are metered and accounted for at a usage based level

Figure 1: Fundamental characteristics of Cloud Computing

Those people familiar with data centre virtualization will relate immediately to the first point, and also to the second to some extent. This is what virtualization is all about for instance, consolidate a bank of poorly utilized servers onto one large computer, where each group of users can be allocated a virtual environment to replace its original server. It will therefore come as no surprise that every Cloud Computing implementation has an underlying virtualization layer. However, Cloud is more than just virtualization. Usage-based scalability is one of the main areas of difference between the two concepts. While the virtualization concept allows a limited amount of dynamic scalability for a particular workload, the extent of this is bounded by fairly static configuration definitions. It is almost as if a workload is allocated a partition of the resources, and exceeding that partition requires IT specialists to evaluate and implement the change. The cloud concept demands extreme scalability. If more resources are needed than are currently available, Cloud Computing offers a self-service approach where users can quickly request additional capabilities or resources and these requests can be satisfied dynamically without waiting for static configuration changes. The final fundamental tenet of a cloud is that access should be widely available. Although this may sound like the recipe for anarchy, clouds include user-based metrics to ensure that the cloud provider can account individual resource usage to the appropriate user. And, of course, security mechanisms are used to limit access to authorized users only. Notice that the Cloud Computing definition does not specify exactly what resources are offered by the cloud, or whether the cloud is located within the corporate boundary or off-premise. These points reflect different flavours of Cloud Computing, and only serve to confuse the fundamental definitions indeed a lot of the conflicting definitions of Cloud Computing result from falling into the trap of trying to define the overall concept based on one of the various different implementation models. These different versions of Cloud will be discussed later.

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Why use a cloud?

Before looking at the many different forms of Cloud Computing, it is worth considering the main advantage areas. The extent of these benefits will depend to some degree on the particular cloud implementation, but the basic principles of Cloud Computing offer some generic benefit areas that apply to all clouds. There are two primary areas of Cloud Computing benefits: Business delivery benefits o IT resources can be leveraged optimally to serve fluctuating business needs Users dont hoard resources when they are not needed Users can get more resource dynamically, as required o Improved agility due to less reliance on the IT department to support and deliver new initiatives o New resource deployments can be delivered much faster o Resources can be accessed wherever and whenever required Infrastructure management benefits o Cost savings in designing, provisioning and delivering new services o Cost elimination through standardization and reuse of IT infrastructure o Less opportunity for costly human errors, for example in capacity planning for a new service o Usage based vs capital expenditure financial model (hardware and software) o Commitment to a green corporate environmental strategy through efficient resource use o Access to cheaper sources of processing power The market hype surrounding Cloud Computing is intense, and executives should be suspicious about overly dramatic claims. For example, saying that Cloud Computing will eliminate the need for any internal IT investment is grossly overstating the case. However, the two prime benefit areas described offer a pretty compelling reason to take a closer look. The business delivery benefits stem from the self-service nature of cloud usage combined with the improved resource availability, efficiency and scalability. The infrastructure benefits come from the added efficiency of using a shared resource pool, the opportunity to outsource some IT management tasks and the metered nature of cloud usage. For example, a usage-based charging mechanism might be used to reduce software and hardware capital expenditure when using an externally provided cloud, or in the internal cloud case to implement a more acceptable accounting model where departments pay for their IT services based on how much they use them. However, these benefits will be greatly affected by the choice of Cloud Computing model. It is the different flavours of Cloud that cause much of the confusion for executives trying to get their heads around the concept.

Cloud flavours

Cloud versions tend to differ across two different axes. Where are the cloud resources located, and who else has access to them? What IT resources / services are offered by the cloud, and in what form? By dealing with each in isolation, Cloud Computing should become a lot clearer.

Cloud location and access options

Contrary to the impression given by some, Cloud Computing is not synonymous with offloading IT workloads outside the enterprise into the hands of a Goggle or an Amazon. In fact, there are a number of options covering the way a cloud is deployed and accessed. The key variables are whether to have the cloud resources on-

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premise or off-premise, and whether to restrict access to one organization or allow others to use the same cloud. The main trade-off here is the opportunity for cost savings versus the added potential for risk. Obviously keeping resources on-premise with internal use only access minimizes any security concerns, while utilizing an off-premise cloud that is open to all introduces the opportunity for economies of scale and a reduction in local IT staffing and licensing costs. Basically, the list below summaries the main Cloud Computing categories for location and access:The public cloud IT resources and services are owned by a third party, located off-premise and made available to anyone on a commercial basis as metered services The community cloud IT resources and services are owned and operated on behalf of a community of organizations The private cloud IT resources and services are owned/leased by a single company for its own use o The internal cloud A private cloud where all resources remain on-premise The hybrid cloud A combination of two or more cloud models Before looking at each category, one enormous source of confusion in the mayhem surrounding the emergence of Cloud Computing is the distinction between private and internal clouds. Often these terms are used interchangeably, since by definition an internal cloud is dedicated to the company concerned and is therefore private. However, purists are quick to point out that technically it would be possible for an organization to arrange for a private cloud to be implemented off-premise by a third party, or even to lease an off-premise cloud. In contrast, the term internal cloud is used to imply not just a cloud dedicated to a single organization but one that is also implemented within the corporate boundary. Looking at each of these cloud options in turn, consider first the public cloud model. Here, because the resources within the cloud are not in the corporate domain, the consuming company does not have to worry about capacity management and associated investments in new hardware and other IT resources, or systems support activities. These responsibilities move to the public cloud provider. It may also be possible for the using company to avoid paying some software license fees indeed this is a major incentive to many companies for using a public cloud. The metered, usage-based characteristic of Cloud Computing raises the possibility of a consumer paying a per-user / per-service usage charge instead of having to purchase licenses for individual software products. However, running all or part of commercial workloads in a public cloud will entail having to move some corporate data into the cloud, and this is one of the prime sources of risk in the public cloud model. The other risk most commonly encountered is based on the fact that in a public cloud model there will be many different using companies sharing the same IT resources. Although cloud providers make every effort to maintain security and integrity between these different tenants, some organizations consider the possibility of accidental interference or even security breaches to be a major problem, especially given that other tenants might be competitors. Additional risks include the possibility that the cloud provider will not adequately manage capacity, or even that some of them may fail commercially, leaving the user in trouble. Before moving on to other cloud models, there is another point that needs clearing up with regard to the tenants concept. Some public cloud suppliers will claim to offer private cloud facilities too. For example, they will point to their own security software that maintains the walls between the operations of different cloud tenants, and suggest that this produces the same result as a private cloud. The key to understanding the weak point in this argument is that in the private cloud model, the cloud is owned (or at least leased) by the consuming organization, and therefore the IT resources are totally dedicated to use by this single organization. In the public cloud case this is not the case. The consuming organizations data and applications will be running within the domain of the cloud provider, which some organizations would regard as a security concern, and resources are allocated from and returned to a common pool which also represents a potential security issue. The community cloud offers an attractive option for a group of business partners wanting to share IT costs and improve efficiency across the community. The cloud location may still be external, perhaps controlled by a jointly-owned subsidiary, or may be on-premise at one or more partners. However, access is restricted to

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community members, and therefore there is less concern over the exposure of data and the commercial viability of the supplier. Obviously, the security issues do not go away entirely, since even between partners there will be sensitive data that must be kept secret, but the risk is mitigated considerably. The private cloud almost entirely mitigates the cloud-related security concerns. In the internal cloud case where the private cloud is on-premise, security is very much business as usual. Concerns over cloud provider longevity vanish, but of course on the other hand the opportunities for cost reduction are much more limited. If the private cloud is off-premise this increases risk slightly, but no more so than moving to any form of outsourced arrangement. Some cost reduction is still possible however; efficient use of IT resources across the enterprise coupled with the user-oriented self-service nature of Cloud Computing combine to provide opportunities for reductions in IT support staffing for example, as well as improving service delivery. On the down side, ondemand scalability will be bounded by the enterprises own IT infrastructure, as opposed to having the opportunity to leverage the potentially larger pool offered by a public cloud provider. Finally, the hybrid cloud represents the idea of using two or more different cloud models. As Cloud Computing usage expands, it is generally accepted that most companies will end up using the hybrid cloud approach. One common reason given is that while public cloud might be the answer for some parts of the business that are relatively low risk, many companies will be reluctant to move sensitive data and applications outside the corporate boundary. In these scenarios, if a company has elected to move to a Cloud Computing model, it will be using both an internal and public cloud. However, the hybrid cloud definition is yet another area where confusion abounds. The best way to clear up this confusion is to start from the end-user perspective. In a hybrid cloud model, the end-user should perceive a single cloud, without any need to know where the resources being used reside. However, the confusion stems from the fact that there are different implementations of a hybrid cloud under this single-view interface. In some scenarios, the internal IT organization will want to force cloud selection based on the particular operation being executed using the internal cloud for sensitive applications, for instance, and the public cloud for lower risk ones. In others, a level of portability will be desired to enable cloud selection to be dynamic, based on factors such as load-balancing and resource availability. An example might be an organization using a private cloud by default but taking advantage of public cloud resources to handle demand spikes. However, this approach requires the execution component and accompanying data to be portable between the internal cloud environment and the public one.

What does the cloud offer, and in what form?

Potential cloud users will hear all sorts of terms thrown around storage clouds, compute clouds, SaaS, desktop clouds and so on. However, all these variations split into three prime cloud delivery models; Infrastructure as a Service (IaaS), Platform as a Service (PaaS) and Software as a Service (SaaS). Even this terminology is confusing, since it implies that these delivery modes are all offered to the cloud user as services, and in the IT industry services is a heavily over-burdened term. It is best not to get too hung up with the wording, but simply to think of the acronyms, IaaS, PaaS and SaaS. In essence, these three terms balance flexibility against complexity.

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IaaS, PaaS and Saas Complexity versus flexibility of use

Infrastructure as a Service

Complexity

Platform as a Service

Software as a Service

Use case flexibility

Figure 3: Cloud delivery models how use case flexibility drives complexity
IaaS describes a model where the cloud delivers an IT infrastructure some combination of hardware and system software - to each user. It is left to the user to then pull together the requisite infrastructure and development tooling to build the applications that will make use of this infrastructure. Think of a department asking for some new computer equipment. Instead of submitting a request for the procurement department to go and buy the desired hardware and deliver it, the user department request the resources from the cloud. PaaS is less flexible than IaaS, but is also less complex. In the PaaS model, a user requests a platform on which its applications can be built and then run. This platform will already be set up with development products and tools, or perhaps may even support standard development environments such as Java or .NET. The user still has to build the applications that will run on the cloud resources, but a lot of the lower level implementation decisions have been taken. Think of a department being supplied with the standard server configuration supported by the enterprise, for example a LINUX server with IBMs WebSphere Application Server and DB2 database system, and a WebSphere-based development toolset. The SaaS model is the least complex but also the most narrowly focused. Here, the user requests to use a particular application in the cloud. This is typically pre-packaged and offers little opportunity for customization. Google Mail is an example of this type of SaaS model. The table below summarizes the characteristics of these three main Cloud Computing deployment options.

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Infrastructure as a service (IaaS) Platform as a service (PaaS) Software as a service (SaaS)

Delivery model The cloud delivers combinations of hardware and system software
The cloud delivers a platform for building and/or running applications The cloud delivers software applications as services

Use case flexibility The user can choose how these resources are used

Options Options might include choice of operating system, application server, database and packages
The user may also bring in third party applications written for the cloud platform More applications can be selected for additional fees

The user writes his own applications to whatever interface the cloud platform supports The user accesses and runs the applications as provided

Figure 4: Cloud Computing deployment options

The Cloud Computing marketplace

SaaS
Cloud supplied applications

Having looked at what Cloud is, and how it is deployed and/or consumed, it is worth spending a little time on the Cloud Computing marketplace. This is another source of confusion for many cloud novices. Going back to basics, Cloud Computing requires a virtualized pool of IT infrastructure, a layer of software to provide the Cloud Computing functionality and cloud-enabled use cases to deliver the business value.

Cloud Use Case

PaaS
User/ISV developed applications

IaaS
Infrastructure building blocks

Cloud Software Virtualisation Software Physical Infrastructure

Cloud Software
Secures, scales, optimises, manages and charges for virtual infrastructure

Virtualisation Software
Presents virtual infrastructure to the layers above

Physical Infrastructure
Underlying Hardware, System Software and Network
Figure 5: Cloud Computing architecture

The cloud implementation layer of software in the diagram above forms the cloud software market segment, and it is this software that a company would buy in order to build its own internal cloud. Suppliers of public clouds, or cloud providers, use the same type of cloud software internally, but then offer access to their clouds in the form of cloud services. The question over who builds the cloud-enabled applications is resolved by the choice of cloud delivery model in the SaaS case, the applications are provided by the cloud provider or other ISVs while in the PaaS and IaaS cases the applications are built by the using company. Therefore, the services provided by cloud providers may range from delivering infrastructure such as archive storage to providing ready-made business applications to access and run.

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To summarize, cloud software vendors sell software used to build and operate cloud environments, while cloud providers sell services sourced from cloud environments that they have built themselves. An important aspect of these two different approaches in commercial terms is the way the user justifies and pays for the cloud. In the internal case, this is just like a traditional software implementation, where software licenses are acquired and an ongoing maintenance agreement is put in place. But in the external cloud case, the cloud provider bears all of these costs, and balances this by charging a usage-based fee often in per user / per service / per month terms. This is one of the main reasons why the public cloud approach offers the best opportunities for cost reduction. Of course in the internal cloud case, because of the usage-based nature of Cloud Computing the end-user departments may still be charged for IT usage in the same fashion as for a public cloud, but this is purely an internal accounting mechanism. Another point to note about the marketplace is that Cloud Computing assumes the presence of a virtualization layer to make the hardware pooling aspect work. Some Cloud Software vendors also offer the virtualization software, while others rely on the user already having a virtualization layer in place.

Some sample scenarios

Gmail

Having discussed what Cloud Computing is, in its many different forms, it may be helpful to consider a few sample scenarios to show how the definitions work and how Cloud might be used.

Googles email offering, Gmail, has many users across the world. Users set up a Gmail email address, and then use the Gmail email software offered by Google through the web browser. Gmail is free, funded by the fact that users are subjected to advertising when they use the software. This is a classic Cloud Computing scenario. Much of the user interface is self-service users set up a mail ID, and can request additional mailbox or archive storage as required, although beyond a certain level this extra storage is not free. In the deployment model terms, this is SaaS the applications are offered pre-packaged. It is also a public cloud implementation, since the applications and storage live in the Gmail cloud and not on the users site.

Amazon EC2
The Amazon Elastic Cloud Compute facility allows users to access computer power on demand. It does this by allowing consumers to create their own workload image; consisting of the data, applications, libraries and configuration specifications required to execute the desired business functionality; and then deploy this to run on hardware in the Amazon Cloud. Amazon already invests heavily in data centres to power its own businesses and it is their expertise in managing this computing resource that they are re-selling in this way. There are all sorts of options available, such as what operating system to use, how much storage and memory will be needed and how many instances of the application to run. Amazon claims that all you need to have your applications execute in their cloud is a credit card and an Internet connection. This is an example of a public cloud delivering IaaS the Amazon Cloud provides the hardware and the system software as requested, and the user delivers everything that is to run on that infrastructure.

Windows Azure
Microsoft has its own Cloud offering, the Windows Azure Platform. Once again, this is a public cloud implementation, with the IT resources being provided by Microsoft data centres around the world. Azure is an operating system that overlays the IT infrastructure. The Azure cloud user is provided with a library of tools for building the desired Azure applications using popular tools such as Visual Studio. This is an example of PaaS, where the user is provided with the environment but must create the applications to be deployed in the cloud.

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Salesforce.com and Force.com

Saleforce.com has been selling hosted sales force automation applications for a number of years. Users are charged on a per user / per month basis, depending on which Salesforce.com modules they need. This is a SaaS model deployed in a public cloud. However, it is worth mentioning because Salesforce.com also offers Force.com, which is its PaaS offering. The idea is for other organisations, both enterprises and independent software vendors, to build applications to run in the Salesforce.com cloud, and therefore a platform is required to achieve this. Force.com is also used by Salesforce.com users who want to customize the base applications.

Shared testing facilities

One IaaS scenario that is proving quite popular is the idea of getting multiple different test departments to share IT resources from a pool, instead of each having to acquire its own infrastructure. This offers efficiency gains and also saves a lot of configuration and support time. In some cases this scenario has been deployed as an internal, or private cloud, where the users are different departments within the enterprise. However it has also been used very successfully in a community cloud model. For instance, one example was a governmentbacked scheme to stimulate small company activity, providing computing resources for these companies without the need to incur capital expenses until the commercial model had been developed.

Storage clouds
This concept is getting quite a lot of attention too. Many companies are struggling with the sheer volume of data they have, much of which is rarely used and is a good candidate for archiving. Every time a user asks for more storage space, the danger is that every allocation will have to have a buffer of free space, and hence the efficiency of storage usage can be poor. A cloud, whether internal or external, provides a convenient way to manage this storage efficiently. This, of course, is an example of IaaS.

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Summary

Cloud Computing is an exciting new area, and does seem to merit investigation for many companies. While there is a tremendous amount of confusion over Cloud, once the high level view has been grasped it becomes a lot easier to put the various market claims into perspective. The diagram below summarizes the key points about the Cloud Computing marketplace, as discussed in the previous sections.

Deployment Models
Private / Internal cloud

Service Models
Cloud Software as a Service (SaaS)

Community cloud

Essential Characteristics
On demand self service Broad network access Resource pooling Rapid elasticity Measured Service

Public cloud

Cloud Platform as a Service (PaaS)

Hybrid cloud

Cloud Infrastructure as a Service (IaaS)

Figure 6: The Cloud Computing market landscape

The key issue that executives must address with relation to Cloud Computing is to understand the company attitude to risk, and to balance this against the benefits expected from adopting a cloud model. For instance, many companies considering cloud are worried about the potential security risk with public clouds, no matter how much the cloud providers trumpet their security and integrity measures. While these risks may be acceptable for low-impact areas like user productivity tools, commercial business applications are another matter. There are also very real concerns about maturity levels in cloud development and technology, and for some IT organizations even the concept of IT as a service feels uncomfortable. However there is considerable interest in exploring the possibilities of cloud-based infrastructure, and as a result, a lot of companies are looking to deploy Cloud Computing in a limited fashion, internal-only and for a restricted subset of operational activities. This makes a lot of sense try it out in a low-risk scenario and validate the benefit claims before moving to more adventurous deployments. It is this approach of plotting a slow and steady course towards Cloud Computing rather than rushing headlong into the brave new world that is being adopted by most businesses today.

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Glossary
Private Cloud Public Cloud Community Cloud Internal Cloud Hybrid Cloud Cloud

A cloud that is owned or leased by a single consuming enterprise A cloud that anyone can use A cloud that is operated on behalf of a community of companies A private cloud that is located on-premise A cloud that utilizes some combination of public, private and community clouds A pool of IT resources such as processors, storage, systems software, networking and applications that can be shared between different users, with the following characteristics: Users can call up resources from the cloud, use them and then release them when they are done in a self-service fashion More and more resource can be dynamically procured to satisfy peaks in demand, and then released when demand subsides The cloud is widely accessible, most commonly through the Internet Cloud services are metered and accounted for at a usage-based level A commercial organization owning a cloud and selling usage-based services resourced from it The software required to implement a cloud. The cloud software layer usually assumes the presence of a virtualization layer A commercial organization selling software used in building and operating a cloud The typical form of commercial pricing for public cloud services, eg per user / per hour / per service The software required to turn a collection of IT resources into a shared pool, where resources are allocated depending on user needs

Cloud provider Cloud Software Cloud Software vendor Usage-based pricing Virtualization software

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This appendix lists some of the many players in the Cloud Computing marketplace. Lustratus is tracking a large number of commercial organizations providing cloud services, selling cloud software or offering cloud-related professional services, and a detailed examination of each is far beyond the scope of this introductory paper. Instead, this section attempts only to provide a summary of which vendors play in what part of the overall Cloud Computing market. At the least this should give potential adopters of Cloud Computing a starting point when looking to find the most appropriate suppliers. Recapping on the earlier analysis in this guide, the basic categories of suppliers are Cloud suppliers, offering services sourced from their own clouds o Software Services (Software as a Service, providing access to applications) o Platform Services (Platform as a Service, providing a place to run developed applications) o Infrastructure Services (Infrastructure as a Service, providing access to hardware and system software) Cloud-related professional service suppliers, to aid in implementing and using Cloud Computing Cloud software vendors, selling software for implementing and using your own cloud The diagram below illustrates the market segmentation across these broad categories used by Lustratus in its Cloud Computing taxonomy. This segmentation is discussed in more detail in the Lustratus Research paper, Cloud Computing Market Landscape.

Appendix-The Cloud Computing Market

Software Services
Billing, Financials, Legal, Human Resources* Sales, CRM Desktop Productivity Content Management

Platform Services
General Purpose

Infrastructure Services

Professional Services
Strategy, planning and design

Cloud Software
Data

Storage Migration and implementation services

Business Intelligence

Compute

Testing consultancy Integration Compute Security consultancy Development & Testing Appliances Cloud Management

Backup & Recovery Document Management Collaboration Social Networks Database

Cloud application design/porting Services Management Support services and training

File Storage

Figure 7: Technical segmentation of the Cloud Computing market

The least well developed area at the moment is that of professional services, with almost all current offerings being provided by vendors in other Cloud Computing categories. For the other categories, however, the following sections offer a list of vendors that Lustratus has identified as potentially relevant. Note that Lustratus is not giving any judgement on how well each vendor serves its segment the list is purely a segmentation based on vendor claims and other publicly available material.

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Infrastructure Services
Sub-segment Storage Compute Working description Storage services typically provide metered, on-demand storage of structure or unstructured data delivered as a service Compute services typically provide metered, on-demand execution of code fragments, services or applications - delivered as a service Vendors Amazon EBS, Amazon S3, CTERA Portal, Mosso Cloud Files, Nirvanix, Vaultscape
Amazon EC2, ServePath GoGrid, Elastra, Mosso Cloud Servers, Joyent Accelerators, AppNexus, Flexiscale, Elastichosts, Hosting.com CloudNine, Terremark, GridLayer, iTRICITY, LayeredTech, Zimory Public Cloud RightScale, enStratus, Scalr, CohesiveFT, Kaavo, CloudStatus, Ylastic, Dynect, CloudFoundry, NewRelic, Cloud42

Services Management

Services management services typically provide a layer of management that sits above the underlying infrastructure services providing aggregation, scaling, execution management, fault tolerance and security of the underlying infrastructure services

Platform Services
Sub-segment General Purpose Working description General purpose platform services provide metered, and/or on demand development tools, frameworks and/or execution environments that allow cloud-capable applications or application fragments to be built, deployed and managed Business intelligence services provide metered, and/or on demand business intelligence and analytics capabilities that are delivered as a service and can be cloudcapable or cloud-aware in that their data sources may be cloud-based. Integration services provide metered, and/or on demand connectivity, integration and process orchestration capabilities delivered as a service and can be cloud-capable or cloud-aware in that the systems they integrate can be cloud-based.
Development and testing services provide metered, and/or on demand software development life-cycle management capabilities delivered as a service. They can be cloud-capable or cloud-aware in that the development projects may themselves be cloud-based. Database services provide metered, and/or on demand structured data management services to application developers delivered as a service.

Vendors Force.com, Etelos, LongJump, AppJet, Rollbase, Bungee Labs, Connect, Google App Engine, Engine Yard, Caspio, Qrimp, MS Azure Services Platform, Mosso Cloud Sites, WorkXpress
Aster DB, Quantivo, Cloud9 Analytics, Blink Logic, Analytics, LogiXML, Oco, Panaroma, PivotLink, Sterna, ColdLight Neuron, InfoBright, Vertica Amazon SQS, MuleSource Mule OnDemand, Boomi, SnapLogic, OpSource Connect, Cast Iron, Microsoft BizTalk (.Net) Services, gnip, SnapLogic SaaS Solution Packs, Appian Anywhere, HubSpan, Informatica On-Demand, TIBCO Silver, Cordys Keynote Systems, Mercury, SOASTA, SkyTap, Aptana, LoadStorm, Collabnet, Dynamsoft

Business Intelligence

Integration

Development and Testing

Database

Google BigTable, Amazon SimpleDB, FathomDB, Microsoft SQL Azure

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Software Services
Sub-segment Billing Working description Software services provide metered and/or on-demand access to specialised businesslevel applications, typically accessed by endusers and are delivered as a service. Vendors Aria Systems, eVapt, OpSource, Redi2, Zuora

Financials Legal Human Resources Sales CRM Desktop Productivity Content Management Backup & Recovery Document Management Collaboration Social Networks

Concur, Xero, Workday, Beam4d DirectLaw, Advologix, Fios, Sertifi Taleo, Workday, iCIMS Xactly, LucidEra, StreetSmarts, Success Metrics NetSuite, Parature, Responsys, Rightnow, Salesforce.com, LiveOps, MSDynamics, Oracle On Demand Zoho, IBM Lotus Live, Google Apps, Desktoptwo, Parallels, ClusterSeven Clickability, SpringCM, CrownPoint JungleDisk, Mozy, Zmanda Cloud Backup, OpenRSM, Syncplicity NetDocuments, Questys, DocLanding, Aconex, Xythos, Knowledge TreeLive, SpringCM Box.net, DropBox Ning, Zembly, Amitive

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Cloud Software
Sub-segment Data Working description Data management cloud software typically provides database-like functionality that can be deployed within a cloud-enabled architecture possessing some of the following attributes: massively distributed, parallel data processing, massively scalable, clustered, cached and/or replicated.
Compute cloud software allows a virtual environment to be built into which applications or application fragments can be deployed and executed. This is typically achieved by adding a management abstraction layer across a massively distributed network of hardware Cloud management software allows enterprises and service providers to manage the components of their virtual cloud infrastructure. These elements may include network, compute, storage or applications*. Management capabilities may include provisioning, starting, stopping, monitoring, moving, scaling or securing a service within public, private or hybrid clouds A subset of the cloud management segment , application services management software provides automated management of the lifecycle of application services including provisioning, starting, stopping, moving, monitoring , scaling and billing. Appliances provide hardware-based acceleration support services for various cloud functions File storage cloud software provides enterprises that are building internal clouds or providers that are building external clouds with massively scalable file storage capability.

Vendors 10Gen MongoDB, Oracle Coherence, Gemstore Gemfire, Apache CouchDB, Apache Hbase, Hypertable, TerraCotta, Tokyo Cabinet, Cassandra, memcached

Compute

Globus Toolkit, Xeround, Beowulf, Sun Grid Engine, Hadoop, OpenCloud, Gigaspaces, DataSynapse, Platform, Zimory Enterprise Cloud

Cloud Management

OpenNebula, Enomaly Enomalism, Altor Networks, VMWare vSphere, CohesiveFT VPN Cubed, Eucalyptus, Reductive Labs Puppet, OpenQRM

Application Services Management

Appistry, Open.ControlTier, DataSynapse Fabric Server (Now TIBCO), AppZero (was Trigence), 3Tera AppLogic, SpringSource (was Hyperic)

Appliances

Symplified, Vordel, rPath*, PingIdentity*

File Storage

EMC Atmos, ParaScale, Zmanda, CTERA

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