[ Cloud Computing ] Re: Compute surface as a traded commodity?

Given the variances in CPU clock speeds, Gigahertz Hour is easier to
compare.

---
Chris Drumgoole

-----Original Message-----
From: cloud-computing@googlegroups.com
[mailto:cloud-computing@googlegroups.com] On Behalf Of Pittard, Rick
Sent: Tuesday, December 16, 2008 11:50 AM
To: cloud-computing@googlegroups.com
Subject: [ Cloud Computing ] Re: Compute surface as a traded commodity?

Actually, the price of a barrel of oil is for a very specific grade at a
specific location. The real prices vary depending on quality and
location - maybe just like a CPU-hour should.

Rick

-----Original Message-----
From: cloud-computing@googlegroups.com
[mailto:cloud-computing@googlegroups.com] On Behalf Of Jim Houghton
Sent: Tuesday, December 16, 2008 9:16 AM
To: cloud-computing@googlegroups.com
Subject: FW: [ Cloud Computing ] Compute surface as a traded commodity?

Interesting thread ... I had discussions with executives at a large
investment bank (one of the few still around today!) as far back as 2002
when we were implementing large grids for risk & portfolio analysis that
leveraged 'scavenged' resources for some of the compute footprint. I
agree
this will happen, but interoperability is not the only obstacle.
Placing
security off to the side - let's assume for the discussion someone has
already overcome their technology or compliance hang-ups - there is a
major
business challenge to overcome.

We all know what an ounce of gold, or bushel of corn, or a barrel of oil
is
around the globe. So what is the equivalent unit of trade for computing
cycles?

Think before you answer ... 'CPU hour' just wants to jump off your
tongue,
but as we all know not all CPU's are created equal (even by the same
manufacturer). Then of course there's memory, bus speed, network
bandwidth,
network throughput, operating system, latency to/from your origination
point, disk read/write speed ... I could go on and so can you. I've been
living this for 6+ years working with clients who want to build internal
utilities (clouds), and even there it's difficult to get agreement as
this
forms the basis for what they are going to get charged for the resources
they consume. It's not much of a 'utility' if users got a flat annual
allocation charge, is it? Yet that's by far the most common situation
in
large enterprises today.

There's the closet economist in me who feels (hopes) someone will just
start
such a market and soon thereafter the laws of supply and demand will set
the
appropriate prices. Those with high quality service will be sold out
and
can increase their prices, with the reverse also true. However,
especially
with the current state of global economic affairs, I am doubtful it will
happen anytime soon. Nor do I think we can count on any standards forum
to
tackle such an issue, and the major vendors will undoubtedly look at
normalization (translate: commoditization) of their technologies as a
bad
thing.

Anyway, hopefully this provokes some thoughts - look forward to your
responses.

Jim
_________________
Jim Houghton
CTO and Founder
Adaptivity, Inc.
(845) 494-9419

www.adaptivity.com

-----Original Message-----
From: cloud-computing@googlegroups.com [mailto:] On Behalf Of Simon
Plant
Sent: Tuesday, December 16, 2008 7:03 AM
To: cloud-computing@googlegroups.com
Subject: [ Cloud Computing ] Compute surface as a traded commodity?

Bruce wrote:
>Will the "Cloud" ever become a pool of hosting providers who pitch
their
prices, SLA's and storage cost so customers will come to their "cloud"
for
services?

I foresee a time into the future where the compute surface is
virtualized
and standardized enough that hosting contracts can be traded as a
commodity
on a market, rather than the RFP type process we have today.

Such agreement would allow business to place a deal on an exchange much
like
FX today and get bids to run based on some parameters. IT hosters would
price the deal with a spread in the same way as a currency trade today,
the
deal done in a matter of seconds and hosted for the duration of a
contract
window.

If virtualization vendors deliver on their hybrid end-vision, this could
be
a reality of packaging workloads with SLA manifests and using internet
vMotion-type tools to migrate. It would fundamentally change the way we
write software frameworks and applications themselves to be more self
contained and highly standardized to achieve the best 'tradability'.

Interoperability via standards between VM platforms, portability of
data,
code business logic and processes are all key to how we build out the
Cloud.

Such openness may be a far extreme view, but would you want the opposite
view of the world where switching costs and lock-in are extremely
constraining and we are forever stuck in a platform cycle of
distribute-and-consolidate?

Simon Plant

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