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 ³Cloud´ = 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 ³Turn off the lights´ = turn off servers you aren¶t 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 .

easier. more reliable .³Breaking the Dam(n!)´ Colo Managed Colocation ± 1st step to outsourcing Managed Hosting ± dedicated servers managed by 3rd party take some pain away Cloud Hosting ± Lower cost. lower risk.

³Servers: Why Thrifty Isn¶t Nifty´ .Source: Forbes. ³Servers: Why Thrifty Isn¶t Nifty´ Source: Forbes.Traditional Hosting Costs Continue to Grow High CapEx Low facility asset utilization (55%) High Depreciation (42-50%) Power/Cooling costs > Server Costs Not ³Green´ 30% hardware obsolescence . Kenneth Brill.com.com.

Trending Away from the ³Pain´ Source: Google Insight for Search .

Understanding how others view ³Cloud Computing´ MULTIPLE DEFINITIONS .

Inc. highly scalable.³Is Cloud Computing Ready for The Enterprise?´ Forrester Research. .Forrester Research ³A pool of abstracted. and managed compute infrastructure capable of hosting end-customer applications and billed by consumption1´ 1.

´ .Forrester Research (cont¶d) Different than SaaS ± ± ± ± ± ± ± 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 ³Cloud computing has all the earmarks of being a potential disruptive innovation that all infrastructure and operations professionals should heed.

Period.´ ± James Urquhart blog post . This particular architecture assumes nothing about the physical location.´ ± IBM press release on ³Blue Cloud´ ³«a hosted infrastructure model that delivers abstracted IT resources over the Internet´ ± Thomas Weisel Partners LLC from ³Into the Clouds: Leveraging Data Centers and the Road to Cloud Computing´ ³Cloud computing describes a systems architecture.Other Definitions ³Cloud computing is an emerging approach to shared infrastructure in which large pools of systems are linked together to provide IT services. internal composition or ownership of its component parts.

Multiple Graphic Descriptions of the ³Cloud´ .

Our view of ³Cloud 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 .

Pay-per-usage No contracts. usage based. Cloud Hosting Colocation Time Scalability Cost Weeks to Months Slowest. no CapEx Low Rent Servers & Hosting costs whether used or not Cloud Minutes Instant. somewhat flexible. Managed vs.virtualized Rent based on usage only ³Green´ Pricing model Low Buy Servers & Colo costs whether used or not . sometimes month/year contracts. Costly Costly. no upfront costs High .Colo vs. Rigid & Costly High CapEx Managed Days to Weeks Slower. Flexible.

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 -³Enabling Technology´ to move from Traditional Hosting to Cloud Hosting .

The Cloud¶s ³Snowball 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 ³Cloud Pyramid´ Build upon a foundation Layers equate structure Building blocks: Infrastructure. Platforms. Niche . Applications Breadth vs.

The ³Cloud Pyramid´ Inversed 1000¶s of Cloud Applications currently Handful of Cloud Platforms Elite group of Cloud Infrastructure providers # of Marketplace providers .

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

Cloud ³Applications´ SaaS resides here Most common Cloud / Many providers of different services Examples: SalesForce. Easy. no control or access to underlying technology . Quicken Online Advantages: Free. Yahoo! Mail. Consumer Adoption Disadvantages: Limited functionality. Gmail.

more control than ³Application´ Clouds. Mosso. Joyent or Force.com (SalesForce Dev Platform) Advantages: Good for developers. other dependencies . Heroku. Engine Yard. tightly configured Disadvantages: Restricted to what is available.Cloud ³Platforms´ ³Containers´ ³Closed´ environments Examples: Google App Engine.

Nirvanix. GoGrid. Linode Advantages: Full control of environments and infrastructure Disadvantages: premium price point. Amazon S3.Cloud ³Infrastructure´ Provide ³Compute´ and ³Storage´ clouds Virtualization layers (hardware/software) Examples: Amazon EC2. limited competition .

Cloud ³Extenders´ (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 ³Aggregators´ (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 ³Cloud 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! .

948.Contact Information Paul Lancaster ± Business Development Manager.GoGrid.4182 Site: http://www. GoGrid ± Email: plancaster@gogrid.com Blog: http://blog.com .com ± Mobile: 415.GoGrid.

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