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Cloud Computing:

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:

The “Cloud” = 10X Improvements Ease of Use Scalability Risk Reliability Cost

Ease of Use:

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:

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

Risk:

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

Reliability:

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

Cost:

Cost “Turn 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

“Breaking the Dam(n!)”:

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

Traditional Hosting Costs Continue to Grow:

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 Isn’t Nifty” Source: Forbes.com, “Servers: Why Thrifty Isn’t Nifty” PAINFUL!

Trending Away from the “Pain”:

Trending Away from the “Pain” Source: Google Insight for Search

Multiple Definitions:

Multiple Definitions Understanding how others view “Cloud Computing”

Forrester Research:

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

Forrester Research (cont’d):

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

Other Definitions:

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”:

Multiple Graphic Descriptions of the “Cloud”

Redefining the definition:

Redefining the definition Our view of “Cloud Computing”

Defining the Segments:

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:

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

Hosting Industry Ripe for Change:

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 Cloud’s “Snowball Effect”:

The Cloud’s “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”:

The “Cloud Pyramid” Build upon a foundation Layers equate structure Building blocks: Infrastructure, Platforms, Applications Breadth vs. Niche

The “Cloud Pyramid” Inversed:

The “Cloud Pyramid” Inversed 1000’s of Cloud Applications currently Handful of Cloud Platforms Elite group of Cloud Infrastructure providers # of Marketplace providers

Cloud Computing is…:

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”:

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”:

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”:

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):

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):

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”:

The NEW “Cloud Pyramid”

Hosting Heads to the Clouds:

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:

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

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