Low-Cost Fast Path to Private Cloud

The private cloud market—built around a set of virtualized IT resources behind the organization’s firewall—is growing rapidly. Private cloud vendors have been citing the latest Forrester prediction of the private cloud market to growth to more than $15 billion in 2020. Looking at a closer horizon, IDC estimates the private cloud market will grow to $5.8 billion by 2015.

 The appeal of the private cloud comes from its residing on-premise and its ability to leverage existing IT resources wherever possible. Most importantly, the private cloud addresses the concerns of business executives about cloud security and control.

The promise of private clouds is straightforward:  more flexibility and agility from their systems, lower total costs, higher utilization of the hardware, and better utilization of the IT staff. In short organizations want all the benefits of the public cloud computing along with the security of keeping it private behind enterprise firewall.

Private clouds can do this by delivering IT as a service and freeing up IT manpower through self-service automation. The private cloud sounds simple. They don’t, however, come that easily. They require sophisticated virtualization and automation.  “Up-front costs are real, and choosing the right vendor to manage or deploy an environment is equally important,” says senior IDC analyst Katie Broderick.

IBM, however, may change the private cloud financial equation with its newest SmartCloud Entry offering based on IBM System x (x86 servers) and VMware.  The starting price is surprisingly low, under $60,000.

The IBM SmartCloud Entry starts with a flexible, modular design that can be installed quickly. It also can handle integrated management; automated provisioning through a service request catalog, approvals, metering, and billing; and do it all through a consolidated management console, a single pane of glass. The result: the delivery of standardized IT services on the fly and at a lower cost through automation. A business person, according to IBM, can self-provision services through SmartCloud Entry in four mouse clicks,.  something even a VP can handle.

The prerequisite for any private cloud is virtualized systems.  Start by consolidating and virtualizing servers, storage, and networking to reduce operating and capital expenses and streamline systems management. Virtualization is essential to achieve the flexibility and efficiency organizations want from their private cloud. They must virtualize as the first step in IBM’s SmartCloud Entry or any other private cloud.

From there you improve speed and business agility through SmartCloud Entry capabilities like automated service deployment, portal-based self-service provisioning, and simplified administration.  In short you create master images of the desired software, convert the images for use with inexpensive tools like the open source KVM hypervisor, and track the images to ensure compliance and minimize security risks. Finally you can gain efficiency by reducing both the number of images and the storage required for them. From there just deploy the software images on request through end user self-service combined with virtual machine isolation capabilities and project-level user access controls for security.

By doing this—deploying and maintaining the application images, delegating and automating the provisioning, standardizing deployment, and simplifying administration—the organization can cut the time to deliver IT capabilities through a private cloud from months to 2-3 days, actually to just hours in some cases. This is what enables business agility—the ability to respond to changes fast—with reduced costs through a more efficient operation.

At $60k the IBM x86 SmartCloud Entry offering is a good place to start although IBM has private cloud offerings for Linux and Power Systems as well. But all major IT vendors are targeting private clouds though few can deliver as much of the stack as IBM. Microsoft offers a number of private cloud solutions here. HP provides a private cloud solution for Oracle, here, while Oracle has an advanced cluster file system for private cloud storage here.  NetApp, primarily a storage vendor, has partnered with others to deliver a variety of NetApp private cloud solutions for VMware, Hyper-V, SAP, and more.

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