cloud and it: creating new consumption models€¦ · prepared by rick gomez, chris calderbank -...

Cloud and IT: Creating New Consumption Models

Bob Gault

VP, Cloud and Managed Services Partner Org

© 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 3

Why Cloud?

Private vs. Public Cloud

Cloud Market Opportunity

Cisco’s Approach to Cloud

Program Excellence

Enterprise Use Case


IT-as-a-Service

Compute

Storage Network

Broad

Network

Access

Resource

Pooling

Rapid

Elasticity

Measured

Service

On-Demand

Self Service

Legacy IT


• EC2 costs 12.3 cents/(ECU hr)

Assume 100% utilization

• On-Prem costs 1.5-3.0 cents/(ECU hr)

Break-even at 10-20% utilization

“When making a 'lease or buy' decision you must look not only at financial comparisons but also at your own personal priorities — what's important to you.” Leaseguide.com

Like buying a car, it

depends…


BUILD Attributes

Core to differentiation

Mission Critical/Operational

advantage in cost/risk/scale or

speed

User Experience: Customer

BUY Attributes

Core Value Prop of Vendor

Mission Critical/Operational

advantage in cost/risk/scale or speed

Small Scale

Global Deployment

User Experience: Employee

Key Decision Criteria

Risk Profile

Experience

Value Add

Cost

Time to Deploy


Private Cloud

Public Cloud Own Private Cloud

infrastructure where

utilization is consistent

(>20%)

Recognize cloud benefits

of self-service, flexibility,

elasticity, efficiency, agility,

rapid provisioning, greater

security and availability

Rent Public Cloud for

temporary/peak/testing

environments

Recognize outsourcing

benefits of reduced

CapEx, rapid increase or

decrease in capacity

Exit cost?

Cloud ≠ Public Cloud ≠ Outsourcing

The Power of “And”


Why Cloud?




Program Excellence

Enterprise Use Case

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$1.3

$4.2

$10.3

$27.2

$66.7

2013

$31.4

$6.2

$12.6

2012

$38.0

$88.2

2014

$25.1 $49.1

$18.9

$8.1

$2.7

$19.4

2011

$33.1

$13.0

$5.0 $1.9

$13.3

2010

$23.5

$9.0

$3.5

$9.7

VPC

IaaS

PaaS

SaaS

CAGR

34.0%

49.1%

37.9%

43.4%

39.2

%

Cloud Services

Available Market ($B)

Source: Strategic Marketing Organization, Corporate Development Organization

$11.0

$24.5

$2.5

$38.0

IaaS

PaaS

SaaS 41.7%

46.8%

46.6%

Cloud Services will be an $88B market by 2014 growing at nearly a 40% CAGR

• SaaS continues to represent the largest portion of the cloud services market

• While PaaS represents the smallest market segment, it is growing at the fastest rate

• PaaS drives stickiness for IaaS and SaaS

• Virtual Private Cloud (VPC) growing at a faster rate than public cloud services

© 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 11 Cisco Confidential © 2013 Cisco and/or its affiliates. All rights reserved. 11

Cloud Services, Worldwide, CY 2011-2106 (Millions of Dollars)


Global YoY Comparison (Bookings $M)

$0

$50

$100

$150

$200

$250

FY12 FY13

IaaS

IaaS

$0

$10

$20

$30

$40

$50

$60

$70

$80

$90

FY12 FY13

HCS

HCS

= 988% YoY growth = 24% YoY growth

0%

200%

400%

600%

800%

1000%

0%

10%

20%

30%


Source: Global Cloud Dashboard, Finance BO Report - Results as of 10/28/13

Prepared by Rick Gomez, Chris Calderbank - Global Cloud & MS Partner Organization. Jeff Baker -WW Sales Enablement

1 of 1

Offer YoY growth

(Q1FY13 vs Q1FY14)

IaaS 850 %

HCS 111 %

CCaaS 4,415 %

TPaaS -27 %

Total Q1: 287 %

Bookings by Cloud Offer Partners & Offers In Market

Cloud Total Q1FY14

Net new

Providers 109 12

Offers 135 15

Americas

Bookings by Geo


Why Cloud?




Program Excellence

Enterprise Use Case


Hybrid

Public Private

Government

Retail

Healthcare

Media

Cloud

Provider

Cloud

Provider

Cloud

Provider

Cloud Services

Supply

Dynamic,

Efficient

Agility

Accelerated

Deployment Security Assured

Experience

New

Revenue

Streams

Business

People

Cloud Services Demand

Government

Enabling the Cloud Supply-Demand Ecosystem


Enable Cloud Providers

and Enterprises to Create

Differentiated Cloud Services

Provide Cloud Services in

Selected Categories, Where Cisco

Has Differentiated Application IP

Smart Solutions

Cisco Cloud Portfolio

Cloud Enablement

Services

Unified

Data

Center

Cisco

Applications

Cloud

Intelligent

Network

Network Management

Video

Collaboration

Security

Powering Cloud Services by Combining the Cisco

Cloud Portfolio and the depth of our Partner Ecosystem


Enable our Partners to Build, Provide, White-label & Resell Cisco Powered Cloud Services

Enable Partners to build, provide,

White-label & resell private, public or

hybrid clouds

Solutions for

Building & Providing

Clouds

Accelerating TTM, reducing costs, driving growth and increasing

profitability

Leverage Assets to

Drive Partner Loyalty

Rich Ecosystem of

Integrated Solutions

Develop & expand an ecosystem to

develop, deliver & enhance Cisco

Powered Services

Research In Motion SAMSUN

G

Enable Partners to accelerate this

transition to new business models

Develop Awareness,

Preference &

Demand for Cisco

Powered Solutions

WAN

Webex

Users

http://www.mysql.com/

http://www.qualcomm.com/


Cloud Services Reseller

Enterprise

WebEx HCS Provider

WebEx Social

Midmarket/SMB

IaaS Provider

Independent SW Vendor (ISV)

Vertical

Aggregator/Provider


Why Cloud?




Program Excellence

Enterprise Use Case


Cloud Builder Model

Cloud Provider

Model

Cloud Services Resale Model

Build and Sell

Cisco-Centric Clouds

to Customers and

Cloud Providers

Manage and Sell

Cisco-Powered

Cloud Services to

Customers

Resell Providers’

Cisco-Powered

Cloud Services to

Customers

Cisco Partner Confidential © 2012 Cisco Systems, Inc. All rights reserved.


Why Cloud?




Program Excellence

Enterprise Use Case


Customer Request:

• Veyance, a $2B Goodyear spinoff, wanted a

more cost-effective, nimble and agile IT operation

• No infrastructure or capital budgets

Cisco/Virtustream Offering:

• Virtustream’s xStream™ — an Enterprise Class

Cloud that allows mission-critical legacy and

web-scale applications to run in the cloud—

whether private, virtual private or public

• Built as a secure, multi-tenant SAP application

support platform using Cisco UCS and Nexus

Why We Won the Deal:

• Virtustream’s SAP as a service offer and

understanding of Veyance’s critical business

requirements

• Flexibility and reliability of Cisco Powered UCS

platform; Cisco’s trusted brand


• When it comes to Cloud, it’s about the power of the “And’

• Cloud represents a tremendous opportunity for IT to innovate and drive new business

• We have the assets and the Partner Community to help you with your Cloud decisions

cloud and it: creating new consumption models€¦ · prepared by rick gomez, chris calderbank -...

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