New Usage Models could drive billions in cloud spending

June 7, 2011

By Adrian Kunzle, Managing Director and Global Head of Engineering and Architecture, JPMorgan Chase

This week, the Open Data Center Alliance reached its first major milestone with the release of the first, user-driven cloud usage models and data center requirements based on member prioritization of the most pressing challenges facing enterprise IT. This release is effectively a catalyst for investment in cloud services. It will shape member planning and purchasing decisions and guide the vendor community in the development of next-generation data center solutions.

With a fast-growing membership that now includes more than 250 global IT leaders, our organization serves as a unified voice for enterprises that want to make greater use of cloud services. Through our eight foundational Open Data Center Usage Models, we have outlined specific innovations in security, automation, common management, and service transparency required for widespread adoption of cloud services. We are advocating our members to begin immediate use of these documents in their planning and procurement of cloud solutions.

By driving the development of requirements for open, industry-standard solutions, the Open Data Center Usage Models have the potential to greatly accelerate the adoption of cloud services, and the efficiency that these services represent to our organizations is the primary reason why leading IT organizations, including JPMC, came together to form the Alliance last fall. Many companies have been standing on the cloud sidelines, watching and waiting for security and other concerns to be addressed. With the expected industry response to our requirements, we can all now get serious about weaving cloud services into our data center computing plans.

For both the vendor community and IT, the economic impact of the Alliance’s work could be nothing short of enormous. Consider these ballpark numbers:

• Our membership currently represents more than $100 billion in annual IT spending representing a powerful voice in charting the direction of technology innovation.
• The delivery of open, interoperable cloud solutions based on Alliance requirements could accelerate more than $50 billion in cloud services expenditures.
• The efficiencies gained by the adoption of simplified cloud services could help organizations reduce annual IT operations costs by $25 billion within five years.

This isn’t just talk. Our members have made a commitment to use usage models to help guide IT planning and procurement decisions. The industry now has a clear picture on how to win cloud business from over 250 companies. That is huge motivation, and that is why we expect industry leaders to begin integrating the new requirements into their roadmaps within the next six months, and we hope to start deploying initial solutions within 18 months.

The bottom line? The new Open Data Center Usage Models put the adoption of cloud services on a fast track and the customer voice in the driver’s seat.

To learn more about the ODCA and its usage models, visit: www.opendatacenteralliance.org.