building great companies on the cloud
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Roman StanekFounder, CEO Good Data
Building Great Companies
on the Cloud
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Promise
This presentation contains no “every
cloud has silver lining” joke:-|
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Who am I
Roman - "Stan" at Starbuck's
Technologist
Entrepreneur (NetBeans, Systinet)
Blogger (roman.stanek.org)
Czech
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What is happening to computing today is a revolution, the biggest upheaval since the invention of the PCin the 1970s.
Nicholas Carr
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"It's stupidity. It's worse than stupidity: it's a marketing hype campaign
Richard StallmanFounder, Free Software
Foundation
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But we all struggle with the cloud definition...
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Most of all the graphics artists...
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Definition:Clouds are hardware-based services offering compute, network and storage capacity where:
Hardware management is highly abstracted from the buyer
Buyers incur infrastructure costs as variable OPEX
Infrastructure capacity is highly elastic (up or down)
McKinsey & Company
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No, you cannot install cloud on your notebook.
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Security & control
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By a 5‐to‐1 ratio, companies trust internal
IT systems over cloud‐based technologies due to
fear about security threats and loss of control
of data and systems.
Avanade Inc.
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They are right...Streamload: On June 15, 2007 system administrator's script accidentally misidentified and deleted "good data" along with the "dead data" of some 3.5 million former user accounts and files.
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Or are they?
10 U.S. airports with the highest weekly frequency of laptop loss
LAX Los Angeles
MIA Miami
JFK New York
ORD Chicago
EWR Newark
0 300 600 900 1200
750
825
900
1,000
1,200
Airport Insecurity: The Case of Missing & Lost Laptops, Ponemon Institute LLC
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This get scary...Did not protect sensitive information contained on laptop
Worry about losing their laptop
Laptop containsconfidential company information
Data on laptop is not backed up
0 0.175 0.35 0.525 0.7
42%
53%
57%
65%
Airport Insecurity: The Case of Missing & Lost Laptops, Ponemon Institute LLC
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Most likely causes of data breach?
Negligent insiders
Outsourced data
Malicious insiders
Social engineering
Hackers
0 0.2 0.4 0.6 0.8
1%
2%
26%
42%
75%
2008 Study on the Uncertainty of Data Breach Detection,Ponemon Institute LLC
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IT environment where data breaches occur
Off-network devices
Networks
Mainframes
Paper files
Backups
0 0.15 0.3 0.45 0.6
18%
39%
41%
50%
58%
2008 Study on the Uncertainty of Data Breach Detection,Ponemon Institute LLC
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Ability to detect the loss or theft of confidential
information
Very confident ConfidentSomehowconfident Not confident Unsure
18%
31%
25%
16%
10%
2008 Study on the Uncertainty of Data Breach Detection,Ponemon Institute LLC
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Amazon Security/SLAs
Multiple redundant sites
SAS70
Amazon EC2 SLA - 99.95%4 hrs, 22 min/year
Amazon S3 SLA - 99.9%
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Control: Plenty of startups solving this problem already
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Cloud or No Cloud?
For SMBs, data is safer in the cloud
Secure, auditable, fully compliant
Pick your cloud provider carefully
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Technology
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Acronyms don’t matter:
Caches, bloom filters, bitmap indexes, column stores,
distributed key/value stores and document databases
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MapReduce law:
If It Can Be Done in Parallel, It Will Be
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ACID -> BASE
Traditional approaches don’t scaleBASE - basically available, soft state, eventually consistent:
BigTable, SimpleDB, Cassandra, Dynamo
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GoodData: Innovate vs. leverage?
Processing Power Cloud makes ROLAP approach possible
Elastic Scale IT builds for peak load, we don’t have to
Multi-TenancySingle instance across 1000s of customers
StatelessMassive load balancing (shared nothing)
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TechCrunch Effect
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Public cloud classes
AWS MS Azure Google AE
CPU
Storage
Network
x86 .Net Predefined framework
EBS, S3, SimpleDB
SQL, Azure store
BigTable
Declarative Automatic Fixed
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Cloud APIs
True SOALoosely coupled - REST, AtomEncapsulate cloud services:
Control APIs
Data APIs
Application Functionality APIs
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Open Cloud Manifesto
Prevent vendor lock-in“or”
Limit innovation
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Cloud economics
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If you want to change the game, change the economics of how the game is played
Alan M. Webber
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Startups in the cloudInfrastructure labor savings
No CAPEX: Less equity goes to VCs
Unpredictable demand (up and down)
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Succeed (or fail) faster
$500k to start technology company
Big bets aren't as big anymore
Easier for startups to adapt to shifts
Level playing field for startups
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IT vs. Clouds
Losing their monopoly on the infrastructureIt’s all about economics
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1 email message
$0.0001
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Fixed pricing
Most widely used pricing
No supply/demand
Simple, predictable
AWS, Google App Engine:
CPU, Storage, network traffic
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Reserved instance price (AWS):
“I have 10 instances running 24x7”
Spot price/future price:
“I want 1,000 instances at the end of the quarter”
Off-peak pricing:
“Run my MapReduce app 10 hours every day”
Variable pricing
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Cloud providers
Economies of scale
Utilization and efficiency
SLAs
Question: Long-term viability?
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Private cloudsViolate #2 of our cloud definition:
Buyers incur infrastructure costs as CAPEX
Virtualization on top of traditional enterprise IT stack
Encapsulation of IT infrastructure
Scale?
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Economies of scale
Technology Medium-sized DC Very Large DC Ratio
Network
Storage
Administration
$95 per Mbit/sec/month
$13 per Mbit/sec/month 7.1
$2.20 per GByte / month
$0.40 per GByte / month 5.7
140 Servers / Administrator
>1000 Servers / Administrator 7.1
HAMILTON, J. Internet-Scale Service Efficiency. In Large-Scale Distributed Systems and Middleware (LADIS) Workshop (September 2008)
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5 Public clouds+500 Private clouds
505 Clouds in 2015
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Business impact
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Winners
Google, Amazon.com
Cisco
SaaS vendors
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Losers
Big server vendors
(HP, Sun, Dell)
Monolithic app providers
Microsoft
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Real winners
Innovation
SMBs, Startups
The little guy wins
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Good Data: On Demand Business Intelligence
Cloud + Web 2.0 metaphors
Flickr for Data
Simplicity & Collaboration
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Company status30 employees
Development in Prague
Sales & marketing in San Francisco
Funded by industry luminaries
www.gooddata.com
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Thank you!