CLOUDS & INNOVATION

Cloud Computing for Startups, Small and Medium Size Companies

Dr ke Edlund KTH-SICS Cloud Innovation Center SICS Startup Accelerator ISC Cloud 2011, September 27, Mannheim

TWO TOPICS IN MY ABSTRACT, SORRY ABOUT THAT!

"Practical Cloud Evaluation from a Nordic eScience User Perspective" VTDC'11, ACM conference San Jose (June 8, 2011) by ke Edlund and Maarten Koopman, Zeeshan Ali Shah, Ilja Livenson, Frederik Orellana, Jukka Kommeri, Miika Tuisku, Pekka Lehtovuori, Klaus Marius Hansen, Helmut Neukirchen, Ebba ra Hvannberg "Cloud Computing and Startups" Ake Edlund and Ilja Livenson in Chapter 2 of Cloud Computing: Methodology, Systems, and Applications (Sept. 26, 2011), Editors: Litzhe Wang et al, CRC Press

TWO TOPICS IN MY ABSTRACT, SORRY ABOUT THAT!

"Practical Cloud Evaluation from a Nordic eScience User Perspective" VTDC'11, ACM conference San Jose (June 8, 2011) by ke Edlund and Maarten Koopman, Zeeshan Ali Shah, Ilja Livenson, Frederik Orellana, Jukka Kommeri, Miika Tuisku, Pekka Lehtovuori, Klaus Marius Hansen, Helmut Neukirchen, Ebba ra Hvannberg

Motivation: to relase HPC resources to those who "Cloud Computing and Startups" Ake Edlund and Ilja Livenson in Chapter 2 of really need them Cloud Computing: Methodology, Systems, and Applications
(Sept. 26, 2011), Editors: Litzhe Wang et al, CRC Press

Key result: public cloud broker for eScience (for now)

So, now youre putting all your single node jobs into the public cloud?

Well, step-by-step, learning by doing...

TWO TOPICS IN MY ABSTRACT, SORRY ABOUT THAT!

Focus in this presentation "Practical Cloud Evaluation from a Nordic eScience User

Perspective" VTDC'11, ACM conference San Jose (June 8, 2011) by ke Edlund and Maarten Koopman, Zeeshan Ali Shah, Ilja Livenson, Frederik Orellana, Jukka Kommeri, Miika Tuisku, Pekka Lehtovuori, Klaus Marius Hansen, Helmut Neukirchen, Ebba ra Hvannberg "Cloud Computing and Startups" Ake Edlund and Ilja Livenson in Chapter 2 of Cloud Computing: Methodology, Systems, and Applications (Sept. 26, 2011), Editors: Litzhe Wang et al, CRC Press

MANY PRODUCTS DEPEND HEAVILY ON SOFTWARE (WE KNOW THAT)

Ericsson: Today over 80% of investments in research and development are directly related to software. In real money that represents almost 20 billion crowns (2.8 billion USD) a year.

About 70% of all innovation built into Swedish built trucks is based on software developed in-house. This is without question what makes Volvo and Scania so competitive in the global marketplace. They are rolling computer centers.

MANY PRODUCTS DEPEND HEAVILY ON SOFTWARE - TRUE ALSO FOR STARTUPS

CLOUD AND STARTUPS

CLOUD AND STARTUPS

Cloud promises...

CLOUD ADOPTION TODAY

- Cloud Vendors - Cloud specific Startup Accelerators - EIT ICT Labs activity lines - EU FP7 Cloud Projects ... but very much the companies themselves using existing innovation platforms

First 7 cloud users in

www.venus-c.eu

Startup

Earthquakes & buildings

3D Architecture Rendering

Data4Science: Predicting fish

Meta genomics

Systems biology

Drug Development

Fire risk prediction

Open Call - adding 10-20 more

The Innovation Landscape is Changing

Startup:
Bootstrapping More exible
Bootstrapping: Cloud Computing, Open Source, Network, Mobility

1. Lower risk 2. Quicker to start 3. Startup gets further with less

1. More Startups 2. More control to Startups

Investor:

More to evaluate Less control Harder to get in early Missing more

Lower risk Lower investment to more Faster response

Startup Accelerators
Helping many during a short time to get to a good next step.Very early stage. Technical focus. Technical entrepreneurs with Network AND Often backed by Venture Capital - that get help with volume and early information and lower risk.

March 2010: "Y Combinator Matures" - 1/4 of Startups Funded Before They Finish the Program October 2010: 1000 applicants Jan 29, 2011: "Yuri Milner, SV Angel Offer EVERY New Y Combinator Startup $150k"

Many (most) in cloud space

March 2010: "Y Combinator Matures" - 1/4 of Startups Funded Before They Finish the Program October 2010: 1000 applicants Jan 29, 2011: "Yuri Milner, SV Angel Offer EVERY New Y Combinator Startup $150k"

We want to be paid based on value, not production cost.

Cloud promises...

STARTUPS SHOULD TRY TO FIND A WAY FROM THE COMMODITY TRAP

R. Agarwal and M. Gort. First Mover Advantage and the Speed of Competitive Entry: 1887-1986. Journal of Law and Economics, 44(1):161{178, 2002.

SERVICES AROUND PRODUCTS MAKE THEM MORE COMPETITIVE AND PROFITABLE

AGAIN: GET PAID BASED ON VALUE, NOT PRODUCTION COST

SERVICES AROUND PRODUCTS MAKE THEM MORE COMPETITIVE AND PROFITABLE Even better: help your users to generate this value

AGAIN: GET PAID BASED ON VALUE, NOT PRODUCTION COST

SO, HOW DO I GET TO USER GENERATED SERVICES AROUND MY PRODUCT?

THE CLOUD AND THE CLIENT

...

THE CLOUD AND THE CLIENT

Caveat: The higher up in the cloud stack you go the stronger is the lock-in effect

...

THE CLOUD AND THE CLIENT

Caveat: The higher up in the cloud stack you go the stronger is the lock-in effect

Need for open standards, see: Alexander Papaspyrou presentation on

...

Technical Advice Design, Architecture, Market, Partners, Recruiting

Symmetry

STARTUP TOOLKITS

STARTUP TOOLKITS

MIT Media Lab

Jakob 8 yr Lab

Technical Advice Design, Architecture, Market, Partners, Recruiting Prototyping Platforms Private Cloud Testbeds, Public Cloud Resources, PaaS knowledge

Symmetry

Technical Advice Design, Architecture, Market, Partners, Recruiting Prototyping Platforms Private Cloud Testbeds, Public Cloud Resources, PaaS knowledge Startup Platforms Aggregated tools and services
Symmetry

SUMMARY
Startups need to be Flexible, Scalable, Cost Efficient Cloud is a great fit for these needs - but comes with the risk of lock-in Platforms for Customer Driven Innovation is important to stay innovative and competing on value not cost Using platforms increase the lock-in effects Startup accelerators help with the cloud uptake, trying to advice on best way(s) forward

THANKS!

edlund@pdc.kth.se edlund@sics.se