Cloud Computing

Disruptive Innovation & Enabling Technology

Authors: John Keagy (CEO & Co-Founder of GoGrid/ServePath) Michael Sheehan (Technology Evangelist of GoGrid/ServePath) Paul Lancaster (Business Development Manager for GoGrid/ServePath) August 2008

The Cloud = 10X Improvements

Ease of Use Scalability Risk Reliability Cost

Ease of Use
Deploy infrastructure with a mouse or API
No cabling, screwdrivers, racking, unboxing, buying Middle of the night Do it yourself remotely from anywhere anytime

Scalability
See Ease of Use Control your infrastructure with your app Nothing to purchase and take delivery on Instant

Risk
Nothing to buy Cancel immediately Change instantly, even operating systems Throw it out Rebuild it instantly after testing

RISK

Reliability
Based on enterprise grade hardware Design for failures:
Automatically spin up replacements Use multiple clouds

Cost
Turn off the lights = turn off servers you arent using
Ex: Turn off development and test environments

Pay for only what you use No need to buy in advance Zero Capital Outlay No contracts

Breaking the Dam(n!)

Colocation 1st step to outsourcing Managed Hosting dedicated servers managed by 3rd party take some pain away Cloud Hosting Lower cost, easier, lower risk, more reliable

Traditional Hosting Costs Continue to Grow

High CapEx Low facility asset utilization (55%) High Depreciation (42-50%) Power/Cooling costs > Server Costs Not Green 30% hardware obsolescence
- Source: Forbes.com, Kenneth Brill, Servers: Why Thrifty Isnt Nifty
Source: Forbes.com, Servers: Why Thrifty Isnt Nifty

Trending Away from the Pain

Source: Google Insight for Search

Understanding how others view Cloud Computing

MULTIPLE DEFINITIONS

Forrester Research
A pool of abstracted, highly scalable, and managed compute infrastructure capable of hosting end-customer applications and billed by consumption1

1- Is Cloud Computing Ready for The Enterprise? Forrester Research, Inc.

Forrester Research
Different than SaaS

(contd)

Prescripted & Abstracted Infrastructure Fully Virtualized Dynamic Infrastructure Software Pay by Consumption Free of Long-Term Contracts Application and OS Independent Free of Software or Hardware Installation

Cloud computing has all the earmarks of being a potential disruptive innovation that all infrastructure and operations professionals should heed.

Other Definitions
Cloud computing is an emerging approach to shared infrastructure in which large pools of systems are linked together to provide IT services.
IBM press release on Blue Cloud

a hosted infrastructure model that delivers abstracted IT resources over the Internet

Thomas Weisel Partners LLC from Into the Clouds: Leveraging Data Centers and the Road to Cloud Computing

Cloud computing describes a systems architecture. Period. This particular architecture assumes nothing about the physical location, internal composition or ownership of its component parts.
James Urquhart blog post

Multiple Graphic Descriptions of the Cloud

Our view of Cloud Computing

REDEFINING THE DEFINITION

Defining the Segments

SaaS
Software as a Service Storage as a Service

PaaS Platform as a Service IaaS Infrastructure as a Service

Colo vs. Managed vs. Cloud Hosting

Colocation Time Scalability Cost Weeks to Months Slowest, Rigid & Costly High CapEx Managed Days to Weeks Slower, somewhat flexible, Costly Cloud Minutes Instant, Flexible, Payper-usage

Costly, sometimes No contracts, usage month/year contracts, based, no upfront no CapEx costs Low High - virtualized

Green Pricing model

Low

Buy Servers & Colo Rent Servers & Rent based on usage costs whether used or Hosting costs whether only not used or not

Hosting Industry Ripe for Change

Technology has evolved People demand more control Instant gratification In-house too costly from CapEx and Human Capital Colocation for those who want to be physically there Managed is not dynamic enough Cloud Computing -Enabling Technology to move from Traditional Hosting to Cloud Hosting

The Clouds Snowball Effect

Maturation of Virtualization Technology Virtualization enables Compute Clouds Compute Clouds create demand for Storage Clouds Storage + Compute Clouds create Cloud Infrastructure Cloud Infrastructure enables Cloud Platforms & Applications Multiple Cloud types lead to Cloud Aggregators Niche requirements enable Cloud Extenders

The Cloud Pyramid

Build upon a foundation Layers equate structure Building blocks: Infrastructure, Platforms, Applications Breadth vs. Niche

The Cloud Pyramid Inversed

1000s of Cloud Applications currently Handful of Cloud Platforms Elite group of Cloud Infrastructure providers
# of Marketplace providers

Cloud Computing is
virtualized compute power and storage delivered via platform-agnostic infrastructures of abstracted hardware and software accessed over the Internet. These shared, on-demand IT resources, are created and disposed of efficiently, are dynamically scalable through a variety of programmatic interfaces and are billed variably based on measurable usage.

Cloud Applications
SaaS resides here Most common Cloud / Many providers of different services Examples: SalesForce, Gmail, Yahoo! Mail, Quicken Online Advantages: Free, Easy, Consumer Adoption Disadvantages: Limited functionality, no control or access to underlying technology

Cloud Platforms
Containers Closed environments Examples: Google App Engine, Heroku, Mosso, Engine Yard, Joyent or Force.com (SalesForce Dev Platform) Advantages: Good for developers, more control than Application Clouds, tightly configured Disadvantages: Restricted to what is available, other dependencies

Cloud Infrastructure
Provide Compute and Storage clouds Virtualization layers (hardware/software) Examples: Amazon EC2, GoGrid, Amazon S3, Nirvanix, Linode Advantages: Full control of environments and infrastructure Disadvantages: premium price point, limited competition

Cloud Extenders (Wild Card)

Provides extension to Cloud Infrastructure and Platforms with basic functionality Examples: Amazon SimpleDB, Amazon SQS, Google BigTable Advantages: Extends functionality of Compute & Storage Clouds to integrate with legacy system or other clouds Disadvantages: Sometimes requires use of specific Platforms or Infrastructure

Cloud Aggregators (Wild Card)

Sits on top of various Cloud Infrastructures for management Examples: RightScale, Appistry Advantages: Provides more options for Cloud environments Disadvantages: Dependent on Cloud Providers

The NEW Cloud Pyramid

Hosting Heads to the Clouds

Static Dynamic = Quick & Easy Scalability Cost Prohibitive Cost Effective = Cost Efficiencies Predictable Unpredictable = Innovations Stagnant Growth = Evolution Traditional Hosting Cloud Hosting = FUTURE!

Contact Information
Paul Lancaster
Business Development Manager, GoGrid Email: plancaster@gogrid.com Mobile: 415.948.4182

Site: http://www.GoGrid.com Blog: http://blog.GoGrid.com