 Okay, we're here at Intel Forecast 2012 and John Furrier, the founder of Silicon Angle here at Gordon Hath with Red Hat Welcome to inside this special cube edition Thank you. So let's talk about cloud you former analyst we talked earlier now at Red Hat talking about cloud and evangelizing those solutions What's the disruption in cloud because clouds been around for a while We had Chino, you know the Gartner hype cycle and then we had you know the trough of disillusionment You know that stuff but you know we look back we had cloud washing everyone cloud washing now We're kind of in the I'd say you know a couple of years in now We want to know where's the where's the reality around the disruption specifically in the data center here at Intel It's not the future of the data center. So where is the disruption to the data center with cloud? well, I think really what's going on the cloud is you've got This sort of explosion in computing capacity and it's coming together with mobility and with big data and As far as specifically within the data center itself is concerned It's really a new way of managing these hybrid computing architectures In the service provider space is a little bit more about going to this fairly homogeneous Infrastructure with a large degree of standardization within Air Price data center It's more about being able to manage a heterogeneous infrastructure because most air prices don't have the luxury of throwing everything out and starting over again Do they have to have a heterogeneous environment to be successful with hybrid cloud? Oh, well, they don't need if they have a homogeneous environment, you know good for them That makes life a lot easier But the reality with most air prices is they do have a heterogeneous environment and they have to deal with it So I'm the buyer. I'm the buyer. I'm the enterprise customer I mean, I've had a history of past 10 years becoming in essence cloud ready before the cloud even arrived And that was server consolidation and virtualization standardization on servers now Sand and network stores now with network virtualization. They kind of they are kind of ready. So what benefits of the cloud offer a Large enterprise has got thousands and thousands of servers. I mean, is there an economic disruption there? Is it what do you see there? Why, you know, so what what is the cloud going to offer the buyer? Well, you're absolutely right in most cases in enterprise having things of standardization Virtualization are going to make for a very good on-ramp to the cloud But what cloud is for many air prices is not even so much the technology in many cases But rather it's a different way of thinking about delivering IT getting away from manual processes Moving to a more automated infrastructure Moving to a more services oriented view of IT where they're making Service catalogs available. Think of it as making Amazon available to their end users Under IT governance and control, but they want to get to that Amazon But Amazon had the luxury like rack spacing like other players like soft player. They have the luxury of starting from scratch With the clean to your pay for designing the data centers and standardizing doing all that standardization And with an enterprise though, they have legacy. They have apps supporting all those apps over Can you so you can you just parse out the difference between, you know I have existing apps thousands of apps inside my company. I just can't just port them to the cloud But there's also a new opportunity like mobility You talk about the difference between what the price might want to have there Sure, so they're going to have this catalog of existing apps So first of all in many cases they can move those existing apps into a service catalog Now obviously doing that doesn't do anything magical in terms of scalability You have something that really does need to operate at cloud scale Compared to traditional air price scale you probably are going to have to re-architect over time But really what the goal here is is to take your existing portfolio and Move it in evolutionary way, you know, take things as is or package them up in VMs or whatever You know, if there are legacy apps that you don't really need to do anything with maybe just keep them that way Whereas applications that maybe really deal with big data or mobile scale Then those are maybe applications that need to be rewritten or written from scratch For those new types of environments. I heard a comment last night at the reception that private clouds a cop out And in comment to where the reaction is between private cloud and hybrid cloud Essentially hybrid cloud is essentially public cloud with data center integration in my mind But but there's different definitions But people like private cloud because it's an extension of their enterprise of their data center Can you talk about the difference between what's going on the private cloud right now and the hybrid specifically? There's some confusion about what that means. I think there is and it probably depends somewhat on the specific business I actually look at hybrid as more of a super set of private cloud where Our customers they're interested in building essentially a private cloud But they want to maintain that flexibility to make use of public cloud resources When it makes sense to whether it's today or whether it's in the future at maybe even different points than application Life cycle as an analyst in your former life, you know, you have that kind of view mindset Look at kind of the players in the marketplace Talk about the players around mobility because mobility seems to be a big driver right now around forcing some of this change Around some of the cloud deployments because of the bring your own device to work and consumerization of IT trends that are They're kind of forcing the IT managers to be more business savvy around those apps Can you talk about the mobility landscape in terms of how those applications are helping to move the cloud over? it was one of these things they're both a result of the cloud at some level and They're Enabling the cloud at some level so you have all the you have this sort of cloud scale being driven by mobile apps mobility That's sort of all these different endpoint devices and at the same time you you have this Real need to deliver everything in the form of you know either a mobile app Or in terms of web a web interface type of thing So really shifting away from having a hard-wired endpoint devices really drive mobility in the back end as well And that's certainly one face cloud I didn't follow the network virtualization piece because that seems to be the last leg of this journey Around getting your existing data center infrastructure set up at least for full conversion infrastructure taking advantage of all this cloud technology Network and IO always seems to be the last thing that it gets dealt with And I think I feel I think that's actually right and one of the trends that I think we're seeing is I just mentioned it in terms of mobility Sort of demanding this very flexible web-based airfaces put the hard-wired airfaces Network is kind of the same thing moving to a much more software Enabled networking so that you can really dynamically change things in the fly where it's sort of just as you can't use Traditional enterprise storage very effectively in a cloud architecture You also really need networking which is dynamic and that can change based on loads one of the things that we're reporting on silicon angle comm and through our research team at wikibon.org is That cloud is not so much a technical thing as much as a business model opportunity Around making it fit the business whether you're an op-ex or you're out of cat-backs All these things are all in these new economic models is the opportunity So with that in mind Do you agree that that's a business model opportunity for customers? And if you do what would be your comment around sharing what you've seen in terms of use cases because there's no one cloud for Everyone and so it seems to be that's a business model decides The implementations on a pre-existing data center and or infrastructure so so one do you agree? That's come over a business model not a speeds and feeds issue And if so what use cases are you seeing out there on the business side that are driving cloud? Well, there's obviously operational aspects as well as just the op-ex and cat-ex angle But the op-ex and cat-ex angle is obviously very interesting to a lot of companies Love startups for example can get going get off the ground Without spending a lot of dollars capital dollars to bring in servers for things that may not work at the same time We're seeing companies like Zynga for example who are moving capacity back in house once they understand the nature of their applications and what type of capacity they need because one of the things that I think we've learned over the last couple of years is This idea that computing is always going to be cheaper in a public cloud. Is it necessarily the case? That's a good point about Zynga and one of the things that we've been saying and talking about in our communities is Clouds going through a rewrite and and a lot of people looking at that as an inhibitor to adoption, but when reality Again, this is another point that kind of gleaned out of this conversation was it's just about agile So agile agility agile programming agile business cloud allows you to take advantage of that and the fact that Zynga's Rewriting is a business case for their business. Yeah, they wouldn't be in business. It wasn't for Amazon. They started on the cloud So so how agile can you be you know gets get started and grow and then you reach a tipping point now You got to bring it in house. Yeah, that's just the way their business is there's nothing to do with cloud Right, it's just their requirements. They're used their use case I mean essentially cloud provides in cloud the big sense We just provides a lot more options if you have some application that can be served by a software as a service that doesn't add value to your business, you know outsource it effectively and concentrate on what's important to your business and Absolutely, whether you're using a public cloud or private cloud or a platform as a service or an infrastructure as a service What the real driving force is here is to be able to do things more quickly get new services online It's actually not as nearly as much of a cost driver as say virtualization was when it first came in Yeah, well, we're believe big believer in cloud. We're watching cloud heavily. I'm still going to keep on We think cloud is a disruptive market, but the question is going to come down to where is those disruptions going to come from for the buyer? I'm Joe enterprise and I have thousands of servers. It has to come from either economic savings and or value to the business So, you know, that's going to render itself in how they deliver their services And there's going to be greenfield opportunities that that would be great for the cloud and then non-mission critical stuff can move to the hybrid cloud So so we're really bullish on it with that Gordon ask you a final question What do you see happening in the next couple of years because as we go through this iteration cloud is really an industry That's evolving Where you know, we cover big data that's growing really rapidly, but it's not a core infrastructure It's just a I want to say fringe but peripheral Development around cloud your vision for cloud over the next three five years Yeah, I think there's a couple of the trends there happening one is platforms of service is evolving very rapidly and Why the ways that I think we're seeing it evolve is Towards approaches that enable portability and openness between different providers The platform in the service approaches that serve limit you to a single provider I think people tended to find those somewhat limiting so having those portable approaches to Different providers different clouds in-house at a public cloud provider have really been gaining some traction And I think more broadly if you look at the sort of architectures that people are looking at adopting They're starting to think more about how do they maintain their future options as opposed to creating a new type of data Sarah silo which is a route they've been down many times before they want flexibility It won't like they want flexibility. They won't be in control of their future. Not some IP Platform is a service in an area where covering and one of the debates that goes on that business is and I wrote a blog post about this as On one hand you have an approach called race to zero where it's a commoditization Complete race to zero a lot hosting and then a differentiated value model where software and services can be you know bolted on to that The to the commoditization of the platform. What's your take on what people need to do to avoid the I mean no one Wants to be in the race to zero business one or two winners and that's it I think differentiation is key. What do you see as the differentiator for pass platform as a service? Well, I mean ultimately pass is some level is about the developer While also recognizing the needs of air-prize IT. So I think we're going to see Different types of deployment models whether it's dev ops whether it's Hosted whether it's something that we've been calling IT ops where IT is control in control While still providing this ease for developers, and I think ultimately a lot of it's going to be about balancing innovation So easy scalability Because ease of use in general while not Refricting someone to a single provider where you know that provider raises their prices, you know They they have to sir start over from scratch Gordon thanks for sharing your perspective with silicon angle on the cue. We appreciate it We write back with our next guest we're Intel forecast 2012 we write back