The Anatomy of Cloud Delivery

An insiders look on how the cloud is deployed to the Enterprise

Presented by Equinix, Virtacore and VMWare

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The Anatomy of Cloud DeliveryAn insiders look on how the cloud is deployed to the Enterprise

Cloud Components

Cloud Opportunity

Benefits of the Cloud to Businesses

Inhibitors to the Cloud: Change

Successful Migrations to the Cloud

Q&A

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Cloud ComponentsData Centers and Networks. Software Solutions. Cloud Services.

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Enabling you to keep pace with the rapid expansion of the digital marketplace

The widest network-neutral footprint 37 strategic global markets on 5 continents

675 network service providers 200+ cloud service providers 300+ IT service providers

Less than 10 ms latency from 90% of the population of the United States and Western Europe

Platform EquinixData Centers. Networks. Ecosystems.

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Cloud Software Solutions

Global leader of virtualization and cloud infrastructure.

250,000 customers and 25,000 partners

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Cloud Services and Solutions.

Equinix, VMware, and Google partner for the Enterprise.

Helping to manage over 10,000 virtual environments. Public/Private/Hybrid solutions.

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Cloud OpportunityHow big is it?

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Cloud Market

Source : Gartner, Forrester, VMware Analysis2011 2012 2013

SaaS

PaaS

IaaS0.32.9

15.3

0.4

5.0

19.7

0.7

5.8

23.2

2014

1.0

5.9

25.8Worldwide Cloud Services Market

($ Billions)

16%

48%

26%

SaaS

Most run their own infrastructure– essentially private IaaS

Ecosystems from SaaS drive PaaS revenue

PaaS

Often associated with either a SaaS or IaaS solution

Allows for management, data services, etc. to be packaged with app

IaaS

High growth in next couple of years

CAGR

For every 3 workloads created, at least 1 makes it to the Public Cloud

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Public Cloud Creating new delivery mechanisms.

SaaS

2011: $12B

2014: $19B

PaaS

2011: $300M

2014: $1B

IaaS

2011: $3B

2014: $6B

Applications

(LOB, Productivity, IT)

$110B

Middleware

(App Development)

$45B

Infrastructure

(Compute, Storage,

Network, Management)

$170B Hosting & Co-location

2011 : $40B

2014 : $65B

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Cloud LandscapeVendors in the mix

Private Cloud Computing: Driving a Strategy. Thomas Bitman. Gartner January 2011.

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Hype Cycle - Gartner

http://en.wikipedia.org/wiki/Hype_cycle

http://www.gartner.com/it/page.jsp?id=1447613

Cloud Landscape

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http://en.wikipedia.org/wiki/Hype_cycle

http://www.gartner.com/it/page.jsp?id=1447613

Hype Cycle - GartnerCloud Landscape

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Hype Cycle - GartnerCloud Landscape

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Benefits of the Cloud to BusinessesWhy make the leap?

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Cloud DriversAgility, Speed and Innovation Important to the Enterprise

Private Cloud Computing: Driving a Strategy. Thomas Bitman. Gartner January 2011.

Q: What are the top five capabilities your organization considers important when evaluating cloud computing vendors or technologies? (Please select no more than five)

Cloud Drivers: Enterprise Capabilities Most Important

High performance (reliability and availability)

Provides enterprise-level security

Provides enterprise-level quality of service

Application portability

Regulatory standards/compliance

68%

63%

59%

44%

42%

Top Capabilities Organization Considers Important when Evaluating Cloud Computing Solutions

Base: 636 Total respondents; 234 US respondents; 202EMEA respondents; 200 APAC respondents Source: CIO Global Cloud Computing Adoption Survey January 2011

US respondents more likely to rate higher on performance and security

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Q: Approximately, what percent of your organization’s IT budget will be allocated to cloud computing initiatives in next 12 months (including software, services, staff resources, training, etc.)?

Cloud Drivers: 26% of Budget Allocated to Cloud

Software 27%

Staff resources 18%

Outsourcing services 16%

Hosting 17%

Training12%

Other 10%

Average Percent of Cloud Computing Budget Allocated to Each Area

Average Percent of IT Budget Dedicated to Cloud Computing – Next 12 Months

Base: 636 Total respondents; 234 US respondents; 202 EMEA respondents; 200 APAC respondents. Source: CIO Global Cloud Computing Adoption Survey, January 2011

26%

Q: Approximately, what percent of your organization’s cloud computing budget in the next 12 months will be allocated to each of the following areas?

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Virtualization Leads to Cloud ComputingStages of evolution

Private Cloud Computing: Driving a Strategy. Thomas Bitman. Gartner January 2011.

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Inhibitors to the Cloud: ChangeCloud computing is not always a technical problem

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Cloud Drivers and InhibitorsProcesses, Culture, and politics block innovation

Private Cloud Computing: Driving a Strategy. Thomas Bitman. Gartner January 2011.

The fundamental factors to the anatomy of cloud computing are changing processes, culture, and overcoming politics.

Change…

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Stanford Professors - Chip and Dan Heath

Co-authors of the book Made to Stick: Why Some Ideas Survive and Others Die, which has been a New York Times, Wall Street Journal, and Business Week bestseller.

Their new book:How to change things when change is hard is helpful in thinking about the cloud.

…is hard

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Chip and Dan Heath

co-authors of the book Made to Stick: Why Some Ideas Survive and Others Die, which has been a New York Times, Wall Street Journal, and Business Week bestseller.

Enterprise change to cloud computing requires the ability for the rider (logic) to work with the elephant (emotion).

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The big story is not the cloud technology but how it transforms organizations

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Successful Cloud MigrationsReal life case studies

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Consona Leading provider of CRM and ERP solutions40 locations worldwide4,500 customers across a variety of industries

Business Drivers Needed to be more responsive to changing customer

demandsTried commodity cloud but ran into operational problems

Unable to scale running customer instances without reboot

High failure rate for customer instancesOperationally complexHigh impact to customers for adds/moves/changes

VMware compatibility to simplify operationsSelf-service portal with access to unique/standardized

catalogsResource pooling to be able to consume varying service tiers

based on business needUse Case / Solution

Transfer workloads to and from their private cloud and public cloud

Adjust where customer instances run according to capacity and customer requirement

Cloud Case Study

• Name: Indus Corporation• Services: Government IT solutions provider • # of Employees: 500+

The Company

• Aging IT infrastructure, time for a server refresh• Frequent outages impacting billing system availability• Could not guarantee critical back-office IT systems availability for

employees

The Challenge

Cloud Case Study

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• Migrated internal systems and applications to private cloud • Deployed state-of-the art infrastructure with no upfront investment• Carrier neutral data center with private connectivity to HQ

The Solution

• Greatly reduced IT CapEx; preserved cash flow • Enhanced service delivery, uptime, and response times• Increased security, availability, reliability, and scalability• $600,00 in CapEX savings.

The Results

Cloud Case Study

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The Anatomy of Cloud Delivery

An insiders look on how the cloud is deployed to the Enterprise

Presented by Equinix, Virtacore and VMWare