Cloud Computing Business Models Antonio Piraino Tier

Cloud Computing Business Models Antonio Piraino – Tier 1 Research

Topics Covered 1. What is Cloud Computing? 2. Who are the major players Cloud Services? 3. What are SMB’s and Enterprises asking for? 4. What are Managed Hosting Providers doing? 5. How Managed Hosters use virtualization 6. Top Managed Hosting Cloud Players 7. Tomorrow’s Winners and Losers 2 Parallels – Optimized Computing. TM

Defining all of this, Cirrus-ly • • • Real-time accessible Computing infrastructure Access by 3 rd party – Public Cloud Access only by you – Private Cloud Platform supports apps/services/storage Constant availability and SLAs Order/provision from anywhere Scalable on the fly (up/down) Easy Web management interface Security/privacy Pay per use 3 Parallels – Optimized Computing. TM

Cloud Computing is IT as a Service 4 Parallels – Optimized Computing. TM

Cloud Apps: Web 2. 0, Saa. S, Remote apps • Remote desktop applications – Run on top of underlying cloud infrastructure platforms • Saa. S providers – Run on top of underlying cloud infrastructure platforms – CRM, ERP, Vo. IP, BI, supply chain • Web 2. 0 – interconnectivity and interactivity of web-delivered content – New Services exploiting underlying platforms 5 Parallels – Optimized Computing. TM

Clouds: Grid, Iaa. S or Paa. S? • Paa. S – ERP, DB, XML files, flat files, web services, on-demand apps, Saa. S hoster, API’s, – load balancing, DNS configuration, storage • Iaa. S providers – Proxy for buying servers, software, data center space or network equipment – Pay for memory, bandwidth, storage consumed • Grid has many definitions – Network of computing clusters – Resources used in parallel as a virtual super-processor 6 Parallels – Optimized Computing. TM

Topics Covered 1. What is Cloud Computing? 2. Who are the major players Cloud Services? 3. What are SMB’s and Enterprises asking for? 4. What are Managed Hosting Providers doing? 5. How Managed Hosters use virtualization 6. Top Managed Hosting Cloud Players 7. Tomorrow’s Winners and Losers 7 Parallels – Optimized Computing. TM

Amazon Web Services • Cloud is pricing scheme for developers • EC 2 – Uses Xen, supports open Solaris, and Windows Server – Rely on APIs (REST, SOAP) for developer apps – User defines resources – charged per compute hour • Wraps into Amazon Web Services – Simple. DB – store, index, query a system – Simple Queue Service (SQS) – Simple Storage Service (S 3) – Flexible Payment Service (FPS) – Cloud. Front CDN 8 Parallels – Optimized Computing. TM

Google App. Engine • Dev tool for Web apps on Google infrastructure – Does not operate in stand-alone mode like EC 2 – Developers hand over code; Google checks request logs, monitor status of app, push new versions, integrate pieces • Compete with MS/AWS: – Big. Table vs. Simple. DB and MS SSDS – Data. Store: distributed storage with query engine • Limited to Python – no PHP/Ruby • Access to Other Apps – Google Sites (collaboration) and Google Apps – APIs into Google Earth, Maps, Images, Open. Social, etc 9 Parallels – Optimized Computing. TM

Azure and Force. com Microsoft Azure Service Platform • Leverages existing Microsoft Services as a bundle – Live Services, SQL Services, . NET Services, Sharepoint Services, Dynamics CRM Services, Visual Studio – Developers build PC, Web and mobile applications – Run apps between client, Azure, datacenter Salesforce. com’s developerforce. com • ISV and Developers Framework – API’s available but idea is to develop on Force. com – App Exchange – rapid onramp objects with drag&drop – Database services, storage, packaging, tools 10 Parallels – Optimized Computing. TM

Topics Covered 1. What is Cloud Computing? 2. Who are the major players Cloud Services? 3. What are SMB’s and Enterprises asking for? 4. What are Managed Hosting Providers doing? 5. How Managed Hosters use virtualization 6. Top Managed Hosting Cloud Players 7. Tomorrow’s Winners and Losers 11 Parallels – Optimized Computing. TM

Use of cloud computing services 12 Parallels – Optimized Computing. TM

Cloud computing vendors 13 Parallels – Optimized Computing. TM

What cloud computing is used for 14 Parallels – Optimized Computing. TM

Internet Applications • What does the SMB need? – Accounting, HR, file server replacement, CRM • What does the mid-tier enterprise need? – Custom databases, heavy storage, HR/accounting Saa. S – Heavy Saa. S use & More managed hosting • What does the large enterprise need? – More datacenter space – Heavy storage and virtualization support – More Saa. S use – Top unmet need: managed virtualization 15 Parallels – Optimized Computing. TM Hosting Transformation Summit North America 4 th Annual 15 -17 September 2008 • The Mirage Hotel • Las Vegas, Nevada

Top applications overall • Top Saa. S applications, now – Messaging and Collaboration – CRM and BI – BPO and Productivity Apps – Accounting system / ERP • Top Saa. S applications, 2012 – HR and accounting applications – File server replacement – Internet-based NAS/utility storage – Project management and collaboration – Shared databases 16 Parallels – Optimized Computing. TM

Topics Covered 1. What is Cloud Computing? 2. Who are the major players Cloud Services? 3. What are SMB’s and Enterprises asking for? 4. What are Managed Hosting Providers doing? 5. How Managed Hosters use virtualization 6. Top Managed Hosting Cloud Players 7. Tomorrow’s Winners and Losers 17 Parallels – Optimized Computing. TM

Evolution of Managed Hosting Sector 18 Parallels – Optimized Computing. TM

Hosters: Cloud Services Currently Offered 19 Parallels – Optimized Computing. TM

Hosters: Largest users of Cloud services 20 Parallels – Optimized Computing. TM

Hosters: What do Customers need from you 21 Parallels – Optimized Computing. TM

Hosters: Customer challenge to Cloud 22 Parallels – Optimized Computing. TM

Hosters: Your challenges in move to Cloud 23 Parallels – Optimized Computing. TM

Topics Covered 1. What is Cloud Computing? 2. Who are the major players Cloud Services? 3. What are SMB’s and Enterprises asking for? 4. What are Managed Hosting Providers doing? 5. How Managed Hosters use virtualization? 6. Top Managed Hosting Cloud Players 7. Tomorrow’s Winners and Losers 24 Parallels – Optimized Computing. TM

Virtualization Technologies Type 1/Bare Metal/Hypervisor/x 86 Server • Best for dev/testing, virtual desktop, legacy server consolidation • Virtualize access to hardware • Each VM has a guest OS • Less server sprawl – Microsoft Hyper-V – VMware ESX – Citrix Xen. Server (Linux) – Parallels Server – Trango – Sun x. VM 25 Parallels – Optimized Computing. TM

OS Virtualization Technologies Type 2/OS/Hosted • Virtual access to a singlekernel OS = less OS sprawl • Good for well-powered datacenters, numerous apps, high workloads and Saa. S • Quick provisioning – Parallels Virtuozzo Containers – Sun Solaris Containers – Open. VZ – Unix chroot command – Linux-VServer 26 Parallels – Optimized Computing. TM

Virtualization Deployments • Parallels – Rackspace, The. Planet, Enigmatec, Dedipower • VMware – Verizon, BT, ATT, Savvis, Terremark, Sun. Gard, Mosso (Rackspace) • XEN-based – Flexi. Scale, Novell’s Suse, Neocleus, Citrix, Amazon AWS • Microsoft Hyper. V – Layeredtech, Soft. Layer, Crystal. Tech, Host. My. Site 27 Parallels – Optimized Computing. TM

The Rackspace experience VMs 1 2 Live Migration use 3 4 Typical deployment 5 6 7 8 Profitability • VMWare (& Parallels Virtuozzo) • Overall Rationale for paying $$ for Virtualization – Significantly speedier provisioning – Better restoration times – Better uptime for end users – Demand for qualitative features, flexibility and uptime • Rackspace invested in training and certification 28 Parallels – Optimized Computing. TM 9

Type 2 Virtualization Impact 29 Parallels – Optimized Computing. TM

Type 2 Virtualization Impact 30 Parallels – Optimized Computing. TM

New Virtualization features • VMWare Lab Manager – library of common configs for setup, capture, storage • Site Recovery Manager – Automated help to build, manage, execute DR plans. • Life. Cycle Manager • Virtual Center – Provision VMs, monitor performance, optimize resources • Stage Manager – Integration, testing, staging, UA testing, to production • VMware VMotion – Live migration away from failing/underperforming servers • B-Hive Conductor • VCLOUD 31 Parallels – Optimized Computing. TM

Type 2 Automation Parallels Operations Automation – OSS for server provisioning; App management; Service plan creation and management; task delegation; etc. • Parallels Business Automation – Storefront control panel for orders, accounts, billing, invoicing, trouble tickets, fraud control, Chargebacks • Parallels Virtuozzo Containers 4. 0 • Parallels Infrastructure Manager – add-on web-based tool for Virtuozzo • Parallels Plesk Control Panel • Plesk Billing Software – Signups; Process Payments; Provision; Recurring Bill 32 Parallels – Optimized Computing. TM

Topics Covered 1. What is Cloud Computing? 2. Who are the major players Cloud Services? 3. What are SMB’s and Enterprises asking for? 4. What are Managed Hosting Providers doing? 5. How Managed Hosters use virtualization? 6. Top Managed Hosting Cloud Players 7. Tomorrow’s Winners and Losers 33 Parallels – Optimized Computing. TM

Top Managed Hosting Cloud Players • Op. Source On-Demand & Connect • Mosso (Rackspace) Cloud. FS, Cloud. Files • Strata. Scale’s Ironscale (Raging. Wire) • Flexi. Scale (XCalibre) • Terremark Infinistructure & Enterprise Cloud • Savvis Utility Services (Compute & Storage) • AT&T Synaptic Hosting platform • Layeredtech on-demand storage • Peer 1, Sun. Gard Availability Services, Navi. Site, Verizon Business, The Planet working on new services 34 Parallels – Optimized Computing. TM

Mosso (Rack. Scale) 35 Parallels – Optimized Computing. TM

Flexiscale (XCalibre) 36 Parallels – Optimized Computing. TM

Iron. Scale (Raging. Wire) 37 Parallels – Optimized Computing. TM

Topics Covered 1. What is Cloud Computing? 2. Who are the major players Cloud Services? 3. What are SMB’s and Enterprises asking for? 4. What are Managed Hosting Providers doing? 5. How Managed Hosters use virtualization? 6. Top Managed Hosting Cloud Players 7. Tomorrow’s Winners and Losers 38 Parallels – Optimized Computing. TM

Hosters: Paa. S opportunities • The Symbiotic Friend – Utilize your Paa. S/managed hosting services ▪ Integrated Security, Network, DB, Storage, SLAs, etc – A higher level Paa. S provider ▪ Offering API for automated application hosting ▪ Provide library of images and stacks ▪ Take away the pain of fostering startups that fail • Other Partner Opportunities – Storage (Nirvanix): Includes desktop backup software, file sharing, flash drive, Internet media file system – ISV/Developers: Front end, Back end, Paa. S for you 39 Parallels – Optimized Computing. TM

Pitfalls to watch for in Cloud Play • ‘Red tape: ’ – Security – Regulatory compliance – SLA – Availability – Cost vs. in-house – Legacies, appetite for change – Hostile software licensing regime – Hype, risk aversion • Power, ownership, control, job security 40 Parallels – Optimized Computing. TM

Future Winners • Providers that Understand their target audience – Cloud Services to SMB’s, Enterprises, ISV’s, or Saa. S? • Ride the new wave of Virtualization solutions – Migrations, business process automation, consuls • Chose to be an Iaa. S – Appropriate visibility, analytics, OS, storage, DR, compute power, security, on demand billing, • Or a Fully integrated Platform as a Service – Iaa. S and: billing modules, app troubleshooting, integration, ERP, Databases, XML files, flat files, web services, API availability, load balancing, DNS • Or niche specialists – Mobile or Vo. IP platforms 41 Parallels – Optimized Computing. TM

Questions? Antonio Piraino antonio@t 1 r. com www. tier 1 research. com 42 Parallels – Optimized Computing. TM