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Geoffrey Fox  
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(1 user)  More options May 9, 4:30 pm
From: Geoffrey Fox <g...@grids.ucs.indiana.edu>
Date: Fri, 09 May 2008 16:30:45 -0400
Local: Fri, May 9 2008 4:30 pm
Subject: Cloud Economies and Standards
Here is a new thread spinning off Introducing the Virtual Private Cloud
(VPC)

Perhaps we could discuss
1) Is it practical to establish Cloud standards allowing different
clouds to interoperate?
2) Maybe this will enable concepts like Cloud Economies?
    Grid economies are well studied with high quality ideas but
complexity (IMHO) has led to little use of Grid economies
3) Maybe this will make clouds as complicated  as Grids?
    The explicit attention to interoperating heterogeneity in Grids has
led to difficult complex systems which clouds have so far avoided

--
:
: Geoffrey Fox  g...@indiana.edu FAX 8128567972 http://www.infomall.org
: Phones Cell 812-219-4643 Home 8123239196 Lab 8128567977
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Khazret Sapenov  
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 More options May 9, 8:26 pm
From: "Khazret Sapenov" <sape...@gmail.com>
Date: Fri, 9 May 2008 20:26:43 -0400
Local: Fri, May 9 2008 8:26 pm
Subject: Re: Cloud Economies and Standards

Just reposting my message from mentioned thread, so it resides in proper
topic:

As a next logical step in evolution of cloud computing, I would see
some universal unit of computing used for trading of excessive
resources (computing as a commodity). Thus analogy with electric grid
or, say, public transport system is very viable and initially be
limited by grid locality.

Khaz Sapenov

On Fri, May 9, 2008 at 4:30 PM, Geoffrey Fox <g...@grids.ucs.indiana.edu>
wrote:


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Khazret Sapenov  
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 More options May 9, 9:59 pm
From: "Khazret Sapenov" <sape...@gmail.com>
Date: Fri, 9 May 2008 21:59:17 -0400
Local: Fri, May 9 2008 9:59 pm
Subject: Re: Cloud Economies and Standards

On Fri, May 9, 2008 at 4:30 PM, Geoffrey Fox <g...@grids.ucs.indiana.edu>
wrote:

> 2) Maybe this will enable concepts like Cloud Economies?
>    Grid economies are well studied with high quality ideas but
> complexity (IMHO) has led to little use of Grid economies

Geoffrey,
This is what I have off top the head, sorry if it is too muddled:

It is hard to say whether and when it'll use grid economy.
Currently we have sporadic cases of entire chain (like Amazon Compute
Cloud), where you have supplier of compute capacity (S), third parties (R),
consumers (C) charged flat or variable fee for amount of resources (CPU-hour
or a combination of metrics).

Lets consider why almost all entities of cloud computing ecosystem might be
interested in it.
For simplicity, I omitted an imported hidden entity - hardware vendors (H),
who sell more units, necessary to power the cloud.
Suppliers (S) benefit from selling at wholesale prices and having margin.
Third parties (R) serving as retailers, resell compute capacity in different
forms, such as hosting websites, SAAS etc. This area is growing, since it
gives huge cost savings to resellers. Consumers (C) also benefit from
cheaper services.

Going further, there's a question whether this economy would use trading
model(using market-based resource management and scheduling) or keep
proprietary chargeback schemes.
In my opinion, once it enters the stage where retailers of compute capacity
(or it's large clients) need to manage the risk of availability of compute
capacities, there will be obvious need for regulated market.

regards,
Khaz Sapenov


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Ian Marr  
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 More options May 10, 4:27 am
From: "Ian Marr" <ian.m...@gmail.com>
Date: Sat, 10 May 2008 09:27:59 +0100
Local: Sat, May 10 2008 4:27 am
Subject: Re: Cloud Economies and Standards

To continue the analogy... we need to find the equivalent of the
Kilowatt-Hour for the "universal unit of computing".  So let's discuss the
characteristics of the kWh.

My first immediate thought is that the kWh is relatively easy to control.
Each electrical appliance and light bulb I buy for my house has a clear watt
rating so I know what I'll consume when I use it and the electricity
supplier gives me a clear price per kWh. And I can reduce my consumption and
bill by finding more efficient appliances (witness the evolution in light
bulbs) or by turning stuff off!

It's so much harder to do this with compute consumption but then that's the
point Khazret is making and leads to the need for a "universal unit of
computing" that's easily controllable by the consumer who foots the bill.

Sorry, no stunning insights or solutions from me, just $0.02.

Ian.

On 5/10/08, Khazret Sapenov <sape...@gmail.com> wrote:

--
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http://www.linkedin.com/in/ianmarr

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randall  
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 More options May 10, 5:07 pm
From: randall <rand...@qrimp.com>
Date: Sat, 10 May 2008 14:07:51 -0700 (PDT)
Local: Sat, May 10 2008 5:07 pm
Subject: Re: Cloud Economies and Standards
I'll take a stab at this...

For standards, I think either a committee will sprout up to manage
protocols (better) or the leading supplier will become the defacto
standard (more likely). Boutique providers will distinguish themselves
from the pack with support, proximity, price and environmental
friendliness among others, which I'll mention later.

As cloud services approach commodity status, they will all have up-
time of five nines, about the same performance, network hops, etc, so
then price will be a distinguishing factor. Because consumers want a
standard pricing metric for commodity products we will likely see grid
economies evolving.

Right now pricing is varied and complicated.  Amazon's pricing
structure is based on server capacity, MediaTemple uses a GPU and
Mosso uses requests. As customers already find these pricing schemes
too unpredictable, we will start to see tools arrive to help us
calculate our application demands in Grid Units. These "Grid Units"
could be based on process scheduling priority, processor and network
utilization, disk space, memory, etc. "Your application consumes 14
Grid Units." Multiply 14 by the vendor price per Grid Unit and you
know what you'll be paying before you move to any particular cloud.
That's an oversimplification, but I think the vendors who provide this
kind of predictability will win out.

With thousands of customers using the same cloud, eventually demand
will outstrip supply and affluent consumers will pay more for quicker
apps.  I think here, we will see competing vendors catering to
different customers by offering different resource management
mechanisms.  Some customers will want to bid for scheduling priority,
others will want to pay a higher fixed rate for higher priority
processing.  There are lots of algorithms and I don't know which ones
customers or vendors will prefer.  It is fairly certain though that
vendors will not leave revenue on the table when some customers will
pay more than others.

Back to standards, I think suppliers using proprietary APIs will
present a barrier to service adoption. "Will I have to rewrite my code
to work with your storage solution?" If the answer is yes, forget it.
When electricity was deregulated, customers could switch their
providers to save money or buy greener power, but if they had to
rewire their homes or buy new devices -- no one would.  ISVs are going
to build cloudable products and they'll want to write them once and
let the customer choose and pay for the cloud services independently.


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Geoffrey Fox  
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 More options May 10, 1:21 pm
From: Geoffrey Fox <g...@grids.ucs.indiana.edu>
Date: Sat, 10 May 2008 13:21:31 -0400
Local: Sat, May 10 2008 1:21 pm
Subject: Re: Cloud Economies and Standards

So here are some questions which some might be able to answer!
1) Do we have experience in switching between clouds. How easy is that?
    This involves the actual hosting of service and in some cases
(common for Grids) of data-compute affinity i.e.
2) If one needs extensive associated data does one need to move or
replicate data between clouds. e.g. if I store my data in S3, when is it
practical to compute on clouds other than EC2. This involves both
bandwidth and cost of bandwidth
3) The issue of affinity is also relevant within a single cloud.
Does/should cloud provider assign compute-nodes "near" the needed data?
4) and in a different class of application; can I specify node-node
affinity as needed by parallel computing jobs that need a few
microsecond latency for communication between nodes.

--
:
: Geoffrey Fox  g...@indiana.edu FAX 8128567972 http://www.infomall.org
: Phones Cell 812-219-4643 Home 8123239196 Lab 8128567977
: SkypeIn 812-669-0772 with voicemail, International cell 8123910207

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Geoffrey Fox  
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 More options May 10, 1:23 pm
From: Geoffrey Fox <g...@grids.ucs.indiana.edu>
Date: Sat, 10 May 2008 13:23:08 -0400
Local: Sat, May 10 2008 1:23 pm
Subject: Re: Cloud Economies and Standards

Following up my previous note, do we need to include cost of data and
communication in economy?
These are some of complexities that bedevil grids!

--
:
: Geoffrey Fox  g...@indiana.edu FAX 8128567972 http://www.infomall.org
: Phones Cell 812-219-4643 Home 8123239196 Lab 8128567977
: SkypeIn 812-669-0772 with voicemail, International cell 8123910207

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Reuven Cohen  
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 More options May 10, 6:55 pm
From: "Reuven Cohen" <r...@enomaly.com>
Date: Sat, 10 May 2008 18:55:21 -0400
Local: Sat, May 10 2008 6:55 pm
Subject: Re: Cloud Economies and Standards
I think you nailed it with "ISVs are going to build cloudable products
and they'll want to write them once and let the customer choose and
pay for the cloud services independently".

You should be able to install and or use cloud software with the same
ease you currently do when utilizing desktop software. Plug and play
(except in the cloud).

Reuven
www.elasticvapor.com

--
--

Reuven Cohen
Founder & Chief Technologist, Enomaly Inc.
www.enomaly.com :: 416 848 6036 x 1
skype: ruv.net // aol: ruv6

blog > www.elasticvapor.com
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Tarry Singh  
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 More options May 11, 6:23 am
From: "Tarry Singh" <tarry.si...@gmail.com>
Date: Sun, 11 May 2008 12:23:03 +0200
Local: Sun, May 11 2008 6:23 am
Subject: Re: Cloud Economies and Standards

Cloud or Grid enabled applications, like that of what Reuben en other guys
from 3Tera, Electric Cloud, Nirvanix etc etc, will heavily undermine the
current trend of Siloed Clouds, meaning virtualization.

Switching between cloud is done pretty well if you want to check out the
3Tera guys (I don't work for them, neither do I get anything in return) or
other parties who are into it. It is about GDN or Global Delivery Networks.
I have written several articles on GDM and how a typical Cloud enabled,
Globally spread (and therefore , the risks spread as well, not like the
siloed cloud, which is the virtualization today, where you carve up a server
and hook all servers as one entity but when connecting 2 or more data
centers, then we start seeing complications as it only ties the infra stack,
not really the app stack.

Anyways great discussion going on and I just wanted to get this out (If it
is a bit off-tangents then please forgive me)

/TarrySingh

On Sat, May 10, 2008 at 7:21 PM, Geoffrey Fox <g...@grids.ucs.indiana.edu>
wrote:

--
Kind Regards,

Tarry Singh
______________________________________________________________
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Daniel Feygin  
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 More options May 11, 12:28 pm
From: "Daniel Feygin" <daniel.fey...@gmail.com>
Date: Sun, 11 May 2008 12:28:28 -0400
Local: Sun, May 11 2008 12:28 pm
Subject: Re: Cloud Economies and Standards
I certainly agree that "plug-and-play" is the way to go, it's the
essence of cloud computing.

However I view customer-driven assembly of the "whole product" out of
separate platform and application components as counterproductive
(assuming it will some day become a possibility as PaaS standards
emerge, which is far from given), because it:
1) effectively kills multi-tenancy at application layer;
2) requires testing and certification of apps on each vendor's cloud;
3) carries deployment risks at time of "purchase" (assembly-time);
4) spreads support responsibility and diminishes vendor liability;
5) complicates software update rollouts for application developers;
6) forces application developers to maintain ongoing dependency
compliance with multiple externally controlled environments.

Indeed, that would be more like desktop computing, which is precisely
what I thought we are trying to move away from.

Daniel