A PERSPECTIVE ON CLOUD COMPUTING

Gordon GraylishVice President & General Manager

Enterprise Solution SalesSales and Marketing Group, Intel Corp

The Internetis

BIG &GROWING

25% of the world is connected

> 250 Million Websites

45B Web Searches per Month

1 Billion videos served up by YouTube everyday.

30 Billion Videos Viewed each month

182 – number of online videos avg internet user

watches per month

100,000 Blogs Created Daily

$750B Dollars Online Sales Worldwide

50 Million Tweets a day 600 Tweets per second

Source: Forrester, ABI, Facebook statistics

500M Active Users on Facebook

50% of Active Facebook users login every day

>30Bn pieces of content shared of Facebook each

month

If the Internet were a movie we’d still be in the opening credits…

Intel confiden

tial

Point of Sale IP CamerasPower Lines IP PhonesIn-VehicleInfotainment

Home Storage

Sensors Net book

Security IPTV/IMS Military/AeroLearning Home AutoDigital Signage PortableMedical

Net top

Gaming Industrial PC PrintersMedical Transport Robotics FactoryAutomation

MID

From Genomic research to Connecting Cars…it’s Only the Beginning

Genomics Research

Medical Imaging

Financial Analysis

Weather Prediction

Oil Exploration

Design Simulation

Cloud Computing

Data Center Refresh

The World is FlatMobile device as std biz client, secure connectivity Anytime/anywhere. Unified communications. Web 2.0

Faster Business Clock SpeedReal-time biz intelligence; data explosion; Utility infrastructure; rapid re-provisioning

The World is GreenLow power clients (HUGI)Data center utilization tunable consumption

Business Trend & Technology Response

Innovation Beyond the Firewall “Everything” as a Service (SOA, Cloud), Consumerization, ,Embedded Clients

Efficient ITConsolidation & re-platforming. Dynamic resource management. Automation. Outsourcing. Cloud computing

The Internet Underpins the Next Wave of Enterprise Computing…

Data Center

Factory / Warehouse

Digital Offices

Mobile Workforce

Mobile Consumer

ISP / Telco

Supplier

Outsourcer

Customers

…eCommerce to Enterprise Cloud…

The corporate boundariesare blurring.

The cloud is emerging.

Cloud computing is not so much a definition of a single term but a trend in Service

Delivery.

CEO = Growth Opportunity

CIO = IT impacts business value

IT Director = Effective IT Utilisation

Enabled by a set of new technologies where Services and data reside in shared, dynamically scalable resource pools

Why is a new Service Delivery Model is Needed ?

Source: IDC, “Virtualization and Multicore Innovations Disrupt the Worldwide Server Market,” Document 206035,Publish date: March 2007

Worldwide IT Spending on Servers, Power and Cooling, and Management/Administration

US$0

US$50

US$100

US$150

US$200

US$250

US$300

‘96 ‘97 ‘98 ‘99 ‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10

Installed Base

(M Units)

Spending

(US$B)

10

20

30

40

50

New Server Spending

Server Management and Administration Costs

Power and Cooling Costs

0

...to regain OpEx control and meet financial expectations

Install base cumulative

IT Budgetary Perspective –Balance Strategic with

Tactical

Remove Barriers, Lower TCO• Accelerate infrastructure refresh• Secure information & assets• Standardize & optimize• Virtualization : utilization• Virtualization : flexibility• Datacenter Power Efficiencies

Source: Gartner IT Key Metrics Data 2008

Innovate(private cloud)

Maintain(Keep the lights on) Enhance

(near term wins)

Drive Transformation●A Service Oriented Utility

infrastructure

Considering Cloud Deployment Today

Intel IT Strategy: develop private clouds while adopting best of breed public cloud services

Deployed behind firewall for an organization’s internal use

“Private Clouds” “Public Clouds”

Services via public internet, multi-tenant

Virtual Private and Hybrid

clouds

Cloud Brokers

What is Holding Back the Cloud Today?

Technology Maturation

Security

Lack of automation

More power efficiency

Standards

Acceptance of Risk

IP protection

Interoperability and lock

in

Compliance and audit

Guaranteed quality of

service

A cultural shift and technology advancement is needed

The Cloud Drives New expectations of the Data

Center

Federated

Data and services seamlessly scale and securely span clouds

Automated Client Aware

Requires an Efficient, Secure, Simplified and Open Architecture

Secure access & optimal

experience across a range

of devices

Dynamically allocates

resources to manage

service level and optimize power

Principles for an Open Data Center

EfficientMore work

done / Watt /$. Distributed &

balanced computing end-to-end

SecureProtection from unauthorized

access or disruption from server to client

Simplified

Flexible infrastructure

optimized across any device

OpenInnovation &

compatibility based on standards. Write

once, Run anywhere

Rapid VM migration across server generations, Protected & Locked down VMs, Encrypted data & transactions

Intel® CPUs, Chipsets, Drivers, Compute energy efficiency, Virtualization technology

10GbE for unified storage and network traffic

Ecosystem enabling, Cloud builder

24032010 IT nation Luxembourg MBA

Today:Energy efficient Intel® Xeon® processors & Intel®

Data Center Manager & Node Manager

Open Data Center: EfficientDrive Efficiency Across the Breadth of the Data Center

●Up to 5x efficiency improvement in 5 years15

●Near linear power scaling between idle & max

●Near native virtualized performance

●Data center level power management drives 40% utilization improvement16

●Solid state data center for 100X bandwidth, 80% lower power17

●Driving PUE below 1.25

Efficient

Moore’s Law Drives Energy Efficiency

Source: Intel Corporate Technology Group

• ~1 million factor reduction in energy/transistor over 30+ years• Delivering great performance within power envelope• Compute energy efficiency Positive impact on environment

Core Integer Performance Over Time*Power reduction Over Time*

Pentium® Pro Processor

Pentium® -II ProcessorPentium® -IIi Processor

Pentium® 4 Processor

Pentium® 4 Processor EE

Pentium® -D Processor

Core™ 2 Duo Processor X6800

Core™ 2 Duo Extreme QX6700

i486DX2

i486

386

Pentium® Processor

1986 200819881990 1992 1994 1996 1998 2000 2002 2004 20061

10

100

1000

10000

Single Core Moore’s Law

1970 1980 1990 2000 2005 20101.E-07

1.E-06

1.E-05

1.E-04

1.E-03

1.E-02

1.E-01

1.E+00

Efficient

CoolingHVAC, Water Chillers

Power(UPC, etc.)

ComputeServers, Storage, Communications

Overhead

Technology Efficient Alternatives

Airside Economizers, Water

Chilled Cabinets, Warm Datacenters

DC Power (New Facilities Only)

Efficient Servers (SpecPower*),

Refresh, Instrumentation

Investment Goals

Minimize Cost/kw Use, Optimize

Cooling Capacity

Optimize Power Delivery to Racks

Maximize Performance Density and

Performance EfficiencyMinimize Cooling

Load/Rack

Optimize Investment on Productivity Drivers

Efficient

Datacenter Investment Alternatives

Open Data Center: Secure Secure Execution and Data Protection at Rest and In Flight

VM VM VM VM

Cloud Software Infrastructure

●Pervasive use of data encryption

●Protected and locked down virtual machines in multi-tenancy environments

●Hardware enforced audit and compliance

●Resiliency built in for defense and recovery from faults

Today:Intel ® Virtualization Technologies, Encryption

Capabilities and Trusted Execution Technologies

Secure

Open Data Center: SimplifiedReduce the Avalanche of Data Center Complexity

●Flexible infrastructure across compute, storage and network

●Unified network & storage fabric

●Scalable management for 1M+ nodes

●Resources exposed to enable optimized services across a range of clients

Today:Adopt 10GbE for unified storage and network traffic

Design with Intel® Xeon® processors for compute & storage flexibility

Unified Fabric

Servers Storage Arrays

Mgmt

Simplified

Open Data Center: OpenMulti-vendor innovation with compatibility of solutions

●Workload portability across clouds−Data Center Mgmt taskforce (co-chair)−OGF’s Open Cloud computing Interface

(OCCI)−Multiple virtualization forums

●Multi-vendor choice and integration− Common APIs, protocols and interfaces− Server Systems Infrastructure (SSI)

standards− IEEE, PCI-SIG & IETF

●Trust and transparency with security policy, best practices and technologies

−Cloud Security Alliance (CSA)Today:Adopt solutions and support standards that have

the greatest levels of compatibility and interoperability

Cloud Infrastructure

Network

Storage

Compute

Security

Datacenter facilities (e.g. cooling, power)

Open

Intel Architecture - a Transformational Path

Where Will You Invest Tomorrow?

The

“economic platform”

for building an enterprise

A Common Foundation with Server Choices to balance Standardization with Optimization

Open

Standardization Vs. Optimization

StandardizationSimpler automation process

Highest modularity and expandability

OptimizationThe best HW for every application instance

Maximize utilization of space and power

Open

How do you do both ?

Intel® Cloud Builder Program:Facilitating cloud development and deployment

Open Cirrus™, UC Berkley RADLab,

Universities

Intel Cloud Test Bed

POCs and Joint Labs IT@IntelCase Studies

Cloud Reference Architectures,

Tools and Training

Deployment Best Practices

Building Optimized Clouds

Advanced Cloud Research

Leading the ecosystem to help organizations build the Cloudwww.intel.com/software/cloudbuilder

Open

Tick Tock Tick Tock Tick Tock Tick Tock

Intel® Core™Microarchitecture

NehalemMicroarchitecture

Sandy BridgeMicroarchitecture

65nm 45nm 32nm

MeromPenryn

Nehalem Sandy

BridgeWestmere Future

Processor

Tick-Tock Development ModelSustained Microprocessor Leadership

22nm

2010onward

s

Introducing Xeon 7500 (Nehalem-EX)

IO HUB

IO HUB

Nehalem-EX Nehalem-EX

Nehalem-EX Nehalem-EX

Intel® ScalableMemory Buffer

Memory

• Biggest Performance Jump Ever in Xeon history

• 16 Threads per socket, 24MB Cache

• Nehalem and Quick Path architectures in EX

• 4X memory capacity and 9X the memory BW

• New 8-Socket and expanded 8S+ platforms

• >20 new reliability features

The Next Generation Intelligent Expandable PlatformAnticipate even more compelling economics !

2010

Efficiency Refresh

15:1As Low as

5 MonthPayback

95% Annual Energy Cost Reduction (estimated)

1 rack of Intel® Xeon® 5600 Based Servers

Performance Refresh

1:1

Up to 15x Performance

15 racks of Intel® Xeon® 5600 Based

Servers

8% Annual Energy Costs Estimated Reduction (estimated)

2005

15 racks of Intel® Xeon® Single Core

Servers

Server Refresh: 2010Single Core Xeon® 5600

– OR –

Source: Intel measurements as of Feb 2010. Performance comparison using server side java bops (business operations per second). Results have been estimated based on internal Intel analysis and are provided for informational purposes only.  Any difference in system hardware or software design or configuration may affect actual performance. For detailed calculations, configurations and

assumptions refer to the legal information slide in backup.

Server Refresh ROI : Intel Can Help You Make the Case

www.intel.com/go/xeonestimator

• Rapid Payback

• Dramatic Savings

• Unique Opportunity

Summary• Know where you’re going – don’t lose

sight of your vision

• Balance tactical projects with strategic direction

• How much could you save whilst transforming your business with Information Technology ?

• Check out the demo’s on the Intel booth

• www.intel.com/software/cloudbuilder

Thank You

Sources1. IDC “Server Workloads Forecast” 20092. IDC “The Internet Reaches Late Adolescence” Dec 2009, extrapolation by Intel for 2015 3. ECG “Worldwide Device Estimates Year 2020 - Intel One Smart Network Work” forecast4. http://www.facebook.com/press/info.php?statistics5. http://www.comscore.com/Press_Events/Press_Releases/2010/1/

November_Sees_Number_of_U.S._Videos_Viewed_Online_Surpass_30_Billion_for_First_Time_on_Record6. http://googleblog.blogspot.com/2008/07/we-knew-web-was-big.html7. 8x Network: 800 Terabytes / second of IP traffic estimated on Internal Intel analysis “Network Supply/Demand

2010-2020” forecast . 16x Storage: 60 Exabytes of data stored from Barclays Capital “Storage Bits” Sept 2009, extrapolation by Intel for 2015; 20x Compute: Intel Internal LRP forecast. Extrapolated to 1 billion virtual servers using 1 vm/core

8. http://open.blogs.nytimes.com/2007/11/01/self-service-prorated-super-computing-fun/9. http://www.datacenterknowledge.com/archives/2009/10/13/facebook-now-has-30000-servers/ 10. http://www.globalfoundationservices.com/documents/MSFTTop10BusinessPracticesforESDataCentersApril09.pdf/ 11. Jonathan Kooney, 6/09. http://www.nytimes.com/2009/06/14/magazine/14search-t.html?

_r=3&ref=magazine&pagewanted=all12. Data Center Knowledge, 4/09 http://www.datacenterknowledge.com/archives/2009/04/08/fbi-defends-dallas-

equipment-seizures/13. Summary of spending between 2010 and 2014. Intel commission analysis with Bain Consulting based on: IDC

“Server Workloads Forecast” 2009, AMI US SB/MB Overview and Market Opportunity Assessment 2006 Gartner “WW IT Services Forecast” 2009; Cowen & Co “VMware” (July 2009); IDC 2009 “Optimizing Infrastructure and Service Management in Tough Economic Times”, analyst reports, IDC storage & networking reports, Gartner 2009 WW IT Services Forecast, BLS, Computer Economics, PrincipledTechnology, expert interviews, Bain analysis

14. Winston Bumpus, DMTF 6/09 http://cloudcomputing.sys-con.com/node/936264 15. Intel, 2010 review of performance and performance efficiency benchmarks - SPECint and SPECpower - across

multiple server generations and forecast for future improvement of future generation products16. Baidu whitepaper, 2009 posted at intel.com17. http://www.embedded.com/products/oem/212001590?_requestid=19579

Investing for the Future

Total Spending in New Businesses 25% CAGR for 2006-2009

CORE

2009 R&D Spending

25%IN NEW AREAS

Includes: Handhelds, Consumer Electronics, Embedded, Graphics,

WiMAX

Spending

Capital Additions to Property,Plant and Equipment

(Dollars in Billions)

Research and Development(Dollars in Billions)

5.7 5.7

3.9 3.8 4.04.4

4.85.1

5.9 5.8

200820092000 2001 2002 2003 2004 2005 2006 2007

5.24.5

6.77.3

4.7

3.7 3.8

5.9 5.9

5.0

2008 20092000 2001 2002 2003 2004 2005 2006 2007

Intel IT Cloud Computing Strategy

Grow the Cloud from the inside out

• Current: Grow internal cloud

• Interim: Transform existing environment to internal cloud

• Future: Move between internal and external cloud