Cloud ComputingCloud ComputingDisruptive 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

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

“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!)”

Colocation – 1st step to outsourcing

Managed Hosting – dedicated servers managed by 3rd party take some pain away

Cloud Hosting – Lower cost, easier, lower risk, more reliable

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”

Trending Away from the “Pain”

Source: Google Insight for Search

MULTIPLE DEFINITIONSUnderstanding how others view “Cloud Computing”

Forrester Research

“A pool of abstracted, highly scalable, and managed compute infrastructure capable of hosting end-customer applications and billed by consumption1”

1- “Is Cloud Computing Ready for The Enterprise?” Forrester Research, Inc.

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

“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”

REDEFINING THE DEFINITION

Our view of “Cloud Computing”

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

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

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”

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”

Build upon a foundation

Layers equate structure

Building blocks: Infrastructure, Platforms, Applications

Breadth vs. Niche

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…

… 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”

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”

“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”

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)

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)

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”

Hosting Heads to the Clouds

Static Dynamic = Quick & Easy Scalability

Cost Prohibitive Cost Effective = Cost Efficiencies

Predictable Unpredictable = Innovations

Stagnant Growth = Evolution

Traditional Hosting Traditional Hosting Cloud Hosting = Cloud Hosting = FUTURE!FUTURE!

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