© 2009 VMware Inc. All rights reserved

The Efficient, Reliable & Agile Hybrid Cloud: Extending Your Private to Public Cloud Environment

2

Agenda

Market Trends & Cloud Drivers

IT Challenges and the Journey to Cloud Computing

“Cloud Computing 101” – Introduction & Terminology

Getting Started

3

Market Awareness & User Perceptions

4

CLOUD UNDERSTANDING

Q. How well do you believe you understand what Cloud Computing is on a scale of 1-10,

where 10 is highest and 1 is lowest? (n=6141)

6.8

6.2

6.4

6.6

6.6

6.8

7.0

7.2

7.4

Total AP

China

Thailand

Malaysia

Singapore

India

Japan

Korea

Australia

Cloud understanding continues to

roughly map to overall IT market

maturity

– The lone exception is India, which scored higher than both Singapore and Malaysia in cloud

understanding

The larger the org size, the higher

the confidence in cloud

understanding

Variations by vertical and org type

are becoming less pronounced as

the market matures

– MNC’s still score highest, Public Sector orgs score lowest

5

PUBLIC vs. PRIVATE CLOUD UNDERSTANDING

Q. How well do you believe you understand the difference between public and private

Clouds on a scale of 1-10, where 10 is highest and 1 is lowest? (n=6141)

6.4

5.6

6.1

6.3

6.6

6.6

6.6

6.7

7.1

Total AP

China

Korea

Malaysia

Thailand

Singapore

Japan

India

Australia Confidence in distinguishing

between public and private clouds has increased

significantly over the past 12 months

– Thailand jumped the highest – from 5.9 to 6.6 out of 10

Australia still leads – China continues to lag

Large enterprises are more confident in distinguishing between public and private clouds versus small orgs

6

PERCEIVED VALUE

Q. How do you perceive the overall value (or potential value) of Cloud Computing to

your organization? (n=6141)

38%

55%

6% 0

Strategic investment

Cost-saving measure

Others

APJ orgs continue to view cloud

computing as a cost-saving

measure

– Thailand scored highest at 74%, followed by China at 66%

– There were no deviations by vertical or org type, with all citing cost-saving

Australia and Korea orgs are

slightly more likely to view cloud

as a strategic invesment

As in 2010, very large orgs (10k+

employees) are alone in viewing

cloud as a strategic investment

– 49% cited strategic investment – versus 46% who cited cost-saving measure

7

Cloud Adoption & Demand Drivers

8

CLOUD ADOPTION DRIVERS

Q. What are (or will be) the primary reasons for adopting Cloud Computing at your

organization? (n=5282; respondents citing Cloud as relevant)

6.8

7

7

7.4

7.5

7.6

Simplified software updates

Increased capacity (data center/storage)

Ease of app/servce deployment

Scalability on demand to meet business needs

Simplified resource/server

provisioning

Reduced hardware infrastructure costs

Leveraging cloud to lower

HW costs is a particular

focus in Malaysia (8.4) and

India (8.1)

– Also #1 among both IT and

business decision-makers

Australia and Singapore

are exceptions – with

scalability on demand the

#1 cloud driver in both

markets

9

CURRENT CLOUD ADOPTION TRENDS (1/2)

Q. Do you currently have a Cloud Computing initiative in place within the organization?

(n=6141)

32%

20%

24%

28%

31%

32%

34%

40%

42%

32%

46%

48%

36%

32%

40%

16%

38%

24%

36%

33%

28%

36%

37%

28%

51%

22%

33%

Total AP

China

Korea

Malaysia

Singapore

Thailand

Japan

India

Australia

Currently Using Currently Planning No Plans at Present

10

CURRENT CLOUD ADOPTION TRENDS (2/2)

Q. Do you currently have a Cloud Computing initiative in place within the organization?

(n=6141)

Cloud adoption continues to accelerated across all countries in APJ

– 64% of APJ orgs are either currently using or planning cloud initiatives – versus up from 59% in 2010 and 22% in 2009

– Australia has the highest percentage of current cloud adopters (43%)

– China has the lowest percentage of cloud adopters (20%) but one of the highest percentage of cloud planners (46%)

Telco (30%) and Technology (29%) continue to lead current cloud adoption among verticals

– In a change from 2010, Insurance (43%) and Gov’t (38%) now lead in terms of future cloud adoption plans

Larger orgs remain more aggressive in cloud adoption

– The rate of adoption has increased significantly in the past 12 months among orgs with 10k+ employees (up to 47%, from 39% in 2010) – versus orgs with 100-999 employees at

(up to 28%, from 24% in 2010)

MNC’s still lead in current cloud adoption at 40% - versus only 24% for public sector

11

CLOUD ADOPTION PLANS – NON-USERS

Q. Which of the following timelines best describes your plans to adopt cloud-based

solutions? (n=4144)

9%

19%

22%

18%

32%

In the next 6 months

Next 6-12 months

Next 12-18 months

More than 18 months

No future adoption plans

The percentage of APJ

orgs with no current cloud

adoption plans has

remained consistent

– Japan is the exception, with 55% of non-users having no future

adoption plans (versus 49% in 2010)

India continues to lead

APJ for orgs with near-

term cloud adoption plans

– 52% of India non-users have plans in place within the next 12 months

– versus a regional average of 28% and only 14% in Japan (both

#’s down from 2010)

12

IT Challenges and the Journey to Cloud

Computing

13 Confidential

Virtualization Paves the Way to a New Era in IT

Mainframe

PC / Client-Server

Web

Cloud

Cloud Computing will transform

the delivery and consumption of IT services

Virtualization

14 Confidential

IT Traditional Areas of Focus

Source: VMware Fortune 100 Customers

Overwhelming complexity

+

Brittle infrastructure

=

< 30% of IT budgets

goes to innovation and

competitive advantage

IT Investment

42% Infrastructure

Maintenance

30% Application

Maintenance

23% Application

Investment

5% Infrastructure

Investment

Is there an alternative that

allows IT to spend more time

on value-add to the business?

15 Confidential

Today’s Infrastructure and Management Challenges

APP

Organization 1 Organization 2 Organization 3

APP

APP APP

APP APP

APP APP

APP APP

APP APP

APP APP

APP APP

APP APP

APP APP APP APP APP APP

Brittle and fragmented infrastructure

Infrastructure can’t scale without complexity

Traditional IT management: alert and respond

APP

APP

APP

APP

16 Confidential

APP APP APP

Cloud Delivers the Infrastructure of the Future

Optimized for business critical workloads

Highly dynamic, scalable and adaptive

Built-in intelligence to shift to new IT management paradigm

Flexible Computing Model

VMware Cloud Infrastructure and Management

Physical Servers Failed Server

APP APP

Resource Pools

Tier 1 Tier 2 Tier 3

Intelligent Virtual Infrastructure. Delivered Your Way

The Foundation for Your Cloud

Respond and Alert

vs.

Alert and Respond

18 Confidential

Cloud Computing Directly Links To Business Agility

600 Global Respondents in survey say….

Agility is important to achieving key business outcomes

80%+ associate business agility with revenue growth, cost reduction,

and risk management

75% state business agility is a priority today

IT agility strongly linked to agile companies

Companies that are extremely agile report a more agile IT function

Companies that are not agile report a weak IT function in terms of agility

Cloud computing enables IT agility

Infrastructure / technology is the primary driver for companies with agile IT

65% believe that cloud plays a key role in increasing IT agility

Business leaders even link cloud directly to business outcomes

63% of business leaders agree that cloud can have a significant impact in

making their business more agile and responsive

Companies with enterprise-wide cloud deployments are 3x more likely to

achieve business agility that is “much better than competition”

SOURCE: Global Business Agility Survey, February 2011

(1)

(1)

(2) SOURCE: CIO Global Cloud Computing Adoption Survey January 2011

(2)

19 Confidential

Business

Owner

Agility Example: Developers Need More Agile Infrastructure…

We need to…

• Get capacity now

• Get software stacks deployed

• Simulate production

Once in production, we

need to…

• Plan capacity for app

• Provision the App Server,

web, database

• Set up the firewall

• Set up data protection

• Manage the app

• …

Operations:

“How do we get the

hardware, manage the

app and deliver the

SLA in production?”

Developers

“Getting the

infrastructure to

develop takes

too long!”

I need a new app

to manage hotel

bookings

20 Confidential

… and Often Use Commodity Clouds to Speed the Process

Developers

vSphere Admin

….and many use public clouds

that are outside of IT’s control

Developers and other users

place high demands on IT…

CIOs have concerns about…

Security and compliance

Performance and SLAs

Availability and Data Protection

Intellectual Property

“May we have a LAMP

stack, please?

Queues?

Custom requests?

Hardware acquisition?

Individual approvals?

21 Confidential

The Solution is for IT to Become a Cloud Service Provider

IT becomes a service

provider, enabling true

business agility

Achieve the economics and

agility of cloud computing

without sacrificing security

or control

Users are given an alternative

to commodity public clouds,

eliminating the need for

unauthorized deployments

Self-Service

Portals

Virtual Data

Centers

Catalogs

22 Confidential

Hybrid Cloud: Solving the IT Manager Dilemma

Internal Cloud

Control Has full control over environment

Secure Inside own datacenter, known security,

predictable performance

Leverage Existing investments in technology, people

and process

Public Cloud

Enterprise Hybrid Cloud

Agility Respond quickly to the demands

Cost Transparent and controllable costs

Elasticity Scalable Capacity

Needs Control

Wants Agility

Hybrid Cloud

Enterprise Hybrid cloud – offer the best of both worlds

23 Confidential

Cloud Computing 101

26 Confidential

Cloud Computing 101

Cloud Computing is an approach to computing that leverages the efficient pooling

of on-demand, self-managed virtual infrastructure, consumed as a service.

Pooling

From machines to highly

elastic resource pools, with on-

demand capacity

Zero-touch Infrastructure

Policy-driven automation of

provisioning, deployment and

management

Self-Service

Easy access with policy-

based provisioning and

deployment

Control

Application-aware

infrastructure with built-in

availability, scalability, security

and performance guarantees

Open & Interoperable

Application mobility between

clouds, based on open

standards

Leverage Existing

Investments

Benefits of cloud computing to

existing applications and

datacenters

Efficiency thru Utilization

and Automation Agility with Control Freedom of Choice

27 Confidential

Different Personalities of Cloud Computing

28 Confidential

IaaS Deployment Models

Cloud Service

Providers Enterprises Bridging

Private cloud: operated solely for an organization, typically within the firewall.

Community cloud: shared by several organizations with shared concerns, managed

by the organizations or by a service provider.

Public cloud: accessible over the internet, available to the general public or a large

industry group and is owned by a cloud service provider.

Hybrid cloud: composition of two or more interoperable clouds (e.g. private +

public), enabling data and application portability

Private Cloud

Hybrid Cloud Public Cloud

29 Confidential

Open Standards Make Hybrid Clouds Possible

App

Provisioning and Control of the Infrastructure & Applications

Public Clouds

Private Cloud

30 Confidential

VMware Helps You Decode Cloud Services Market

Easily find an IaaS service based on

use case, service requirements, and

VMware technology inside

Two service badges indicate what

technology is inside and use case

• vCloud Powered = cloud ready (full VMware

cloud stack)

• VMware Virtualized = vSphere hosting

Two co-branded services for

different user segments

• vCloud Datacenter = Enterprise IT focused,

delivering security and performance

• vCloud Express = Developer focused,

delivering quick access and credit card billing

For VM hosting

• Service runs on VMware vSphere

VMware Virtualized

VMware compatible cloud service

• Service runs on vSphere and vCloud Director

• Provides OVF image import and export • Provides full vCloud API

vCloud Powered

Software developer-focused cloud service

• Credit card billed pay-for-use

vCloud Express

Enterprise IT focused cloud service

• Globally consistent, VMware certified

• Pay-per-use and resource pool based service tiers

vCloud Datacenter

31 Confidential

Indianapolis

Newark

Beltsville

United Kingdom

Japan Singapore

vCloud Datacenter – Global Consistent Service

Plano

Dallas

Brazil

San Jose

Hong Kong

Denmark

Malaysia

Australia

Chantilly

Chicago

Netherlands

Luxembourg

Florence, KY

Germany China

32 Confidential

SK Telecom T cloud biz

VMware Solutions –

The Most Proven, Trusted and Widely Deployed

Simple – Centralized, Cost-Effective Security

Strong – Adaptive Security Optimized for Virtualization

VMware vSphere –

The Recognized Virtualization Leader

+

SK Telecom select VMware as a strategic cloud computing partner

=

Provide SLA with Reliable solution

End-to-End integrated security

Adopt latest technology for customer benefit

33

Simple and Reliable DR with SRM 5

34

vCenter Site Recovery Manager Ensures Simple, Reliable DR

Provide cost-efficient replication

• Built-in vSphere Replication

• Broad support for storage-based replication

Simplify management of recovery and

migration plans

• Replace manual runbooks with centralized

recovery plans

• From weeks to minutes to set up new plan

Automate failover and migration

processes

• Enable frequent non-disruptive testing

• Ensure automated failover and migration

• Automate failback processes

Site Recovery Manager Complements vSphere to provide the simplest

and most reliable disaster protection and site migration for all applications

VMware vSphere

VMware

vCenter Server

Site Recovery

Manager

VMware

vCenter Server

Site Recovery

Manager

VMware vSphere

Site A (Primary) Site B (Recovery)

Servers Servers

35

SRM Momentum

Introduced in Q2’ 2008

> 6,000 customers

Over 1 Million VMs protected

“If your organization is already taking advantage of virtualization,

then adding Site Recovery Manager to handle disaster recovery

is a no-brainer.”

― Jerry Wilkin

Senior Systems Administrator, Dayton Superior Corp

36

From Dedicated Recovery Infrastructure …

vCenter Server Site

Recovery Manager

Protected Site Dedicated Recovery Site

Storage

vCenter Server Site

Recovery Manager

vSphere vSphere

Storage

vSphere

Replication

Storage-Based

Replication

37

Public Cloud – Shared Recovery Site

vSphere

Replication

vCenter 5 Site

Recovery Manager 5

vSphere 5 vSphere 5

Site Recovery Manager 5

… To Cloud-Based DR

Protected Site

38

DR To The Cloud With SRM 5

39

Tier Mission-critical Business-

critical Non-critical

Description • IT systems vital to

operations

• IT systems critical

to operations

• IT systems important

but not critical to

operations

RPO/RTO • RPO < 15 minutes

• RTO < 2 hours

• RPO < 2 hours

• RTO < 4 hours

• RPO < 8 hours

• RTO < 8 hours

More Applications Are Considered Critical To Organizations

• Less tolerance for

downtime more

workloads deemed

mission or business

critical

• Higher interdependence

between applications

demands better recovery

objectives from non-

critical workloads

31% 31%

37% 35% 34%

31%

0%

10%

20%

30%

40%

50%

Mission-critical Business-critical Non-critical

Application Tiering 2008

2010

+13%

IT a

dm

in c

lassif

icati

on

+10%

40

BC/DR Is At The Top Of IT And Data Center Initiatives

Improving BCDR

capabilities across

IT initiatives:

• #1 priority for SMBs

• #2 priority for Enterprises

41

Deployment Options: Dedicated Architecture

Customer A

Provider

Cluster A

SRM-A

VRMS

VC

VRS

SRM-A

VRMS

VC

Customer B

SRM-B

VRMS

VC

…n

Provider

Cluster B

SRM-B

VRMS

VC

VRS

…n

42

Deployment Options: Shared Architecture

Customer A

Provider

Cluster

SRM-A

VRMS

VC

VRS

SRM-A

VRMS

VC

Customer B

SRM-B

VRMS

VC

…10

VRS VRS

VRS VRS

VRS

VRS

SRM-B

43 Confidential

VMware Based IaaS Providers Lead the Public Cloud Market

• 4 of the 5 leaders are

VMware-based

• Rackspace also does

significant VMware vSphere

hosting

• Amazon is the key Xen-

based alternative but is

focused on new apps with

low QoS and security

requirements

Magic Quadrant for Cloud Infrastructure as a Service and Web Hosting

Source: Gartner (December 2010)

44

Getting Started

45

Multiple Routes to the Hybrid Cloud Model

Cloud Interested

Cloud Ready

Early Private Cloud

Mature Private Cloud

Hybrid Cloud

Public Cloud Experimentation

Public Cloud Adoption and Commitment

46

How do I choose a IaaS Cloud Service Provider

Critical Questions SingTel PowerOn

Compute Other Public Clouds

Hosted Locally?

√ ? Flexible Plans?

√ ?

Leverage Investments √ X Existing Trusted

Relationship

√ X

Regional Coverage √ X

47

Are You Ready For Cloud Computing? Find Out Today

Has your IT organization taken the self-assessment!

vmware.com/go/getcloudready