May 19 -20 l Washington DC l Omni

May 19 -20 l Washington, DC l Omni Shoreham Cloud Computing, Virtualization, and on-demand Services: Trends in the Managed Hosting Space Daniel Golding Vice President, Tier 1 Research

Managed Hosting Technology Trends Managed Hosting Services Evolution Application layer management Time and Revenue growth push Managed Hosting Providers upward and outward Amazon S 3 Amazon EC 2 Nirvanix Google App. Eng Layered Tech Mosso Verizon VUC PAAS, Saa. S Provisioning, Integration, billing Managed Hosting Shared Hosting Managed Virtualization Evolving Technologies VMWare Parallels Denali XEN MS Trango Sun Hosting Infrastructure & OS level Colocation Network & Datacenter DR Protection Managed Security e. Discovery Managed Mail Managed Database Managed Storage On-Demand Storage Utility Computing

Evolution of Managed Hosting Sector > Major technology Trends Investment in Managed Services > > Application Management – CRM, SAP, messaging Saa. S facilitation – billing and back-end, app-exchange Managed security, compliance, e-discovery, consoles Managed Database, storage, load balancing, DR Infrastructure and Cloud Computing > Virtualization, Utility computing, on-demand storage > Not application isolation nor desktop virtualization > Platforms as a Service – hosting the applications/Saa. S Range from social networking, to CRM-centric, to functional

Hypervisor Virtualization Technologies > Bare Metal/Hypervisor/x 86 Server virtualization Best for dev/testing, virtual desktop, legacy server consolidation Virtualize access to hardware SAAS Pre Each VM has a guest OS Production Apps less server sprawl Platform As a Service > VMARE ESX > Citrix XENserver (Linux) Guest OS > Parallels Server Virtual Machines > Microsoft Hyper-V Bare Metal Virtualization Technology > Trango > Sun x. VM X 86 Hardware

OS Virtualization Technologies > OS Virtualization Users run just one Kernel/OS at a time – virtualize access to single OS – meaning less OS sprawl Good for well powered datacenters, sensitive and numerous apps, workloads, Saa. S Quick provisioning > Parallels Virtuozzo Containers > Sun Solaris Containers > Open. VZ > Unix chroot command > Linux V-Server SAAS Apps Pre Production Apps Platform As a Service Virtual Machines OS Virtualization Technology Operating System Management X 86 Hardware

Evolution of Managed Hosting Sector End-user Application Layer utilization SAAS Apps Pre Production Apps Platform As a Service Middleware Traditional Managed Hosting Services Operating System Management X 86 Hardware c Data SAN /NAS /DAS

Virtualization Trends > Virtualization is helping to expand cloud computing Virtualization for on-Demand Storage Virtualization for Utility Computing > includes authorization services for particular users or apps > mapping dependencies between services > enforcing policies for how services can be used > monitoring performance levels Automation features > Centralized consoles for orchestration > provisioning, billing and multi-platform management

VIRTUALIZATION: USER PROFILES > VMware users offering virtual hosting products Verizon Bus. , BT AT&T, IBM, Savvis, Terremark, Rackspace > shared infrastructure, Utility computing, cloud computing > Struggling with flexible pricing, automation upscale/downscale Sun. Gard > data protection and disaster recovery > Parallels - automation tools and virtualization Rackspace, The Planet, Server. Beach, Dedipower, Hostway > Fewer licenses in datacenters, but many desktop users > UK-based Xcalibre – Flexiscale: utility/shared infrastructure startup Enigmatec – policy based process automation

Virtualization & Cloud Computing > Virtualization in full swing Can be dedicated virtual server Can be shared grid Automation is key component ? ? Is this real or perceived? ? ? > Cloud Computing Is a direction rather than an absolute Managed Hosters are gradually transitioning to new services Gap exists between commercial and technical offerings

CLOUD or GRID COMPUTING? > Not to be confused with Saa. S/Apps Google. Apps, Windows Office. Live, Zoho > run on top of underlying platforms > Grid has many definitions Network of computing clusters whose resources can be used in parallel; as needed; as a virtual super-processor Intel, Compaq, Sun, IBM - university and medical projects > Cloud Computing Tends to be much more commercial in nature > On demand infrastructure for small/med apps > SLA driven > Pay by the drink

Cloud Computing Defined > Cloud Computing is highly available infrastructure Public Infrastructure composed of computing power, storage, security > Platforms, software, applications, services reside on top Immediate availability, ordering, provisioning on the web > Easier and cheaper than deploying it in-house Easily manageable from a single web interface > Partition, synchronize, distribute, secure, store data/apps Run from centralized deployments/datacenters > Supports Platforms as a Service Real-time accessible and usable across the web > Many (often smaller) applications run off more consistently available resources

Cloud Computing Defined > Cloud Computing: attractive to businesses Pay by the drink - Credit card billable SLA driven > defined response times, immediate recreation of instances, consistent service for all users Providing easy integration with back-end services Should always be available and self-healing Unobstructive/transparent: client only sees end workload Multi-tenant infrastructure with complete security/privacy Linearly scalable on the fly (up/down) – cost reducing Note: Enterprise clouds are not included in this discussion

Utility Computing & On-Demand Storage > Two developer driven components of the Cloud > Utility computing Range from minute to monthly provisioning/billing > Target is web based ordering + instant provisioning Should be pay by the drink & include an SLA Should be desktop mountable & immediately available Should have back-end storage and other web services > On-demand Storage Range from Managed hosters offering on-demand SAN, NAS and DAS - orders possible with seasonal billing Back-up/Protection wins when on-demand storage fails

UTLITY COMPUTING PLATFORM > Amazon EC 2 (and Amazon Web Services) Believe cloud is a pricing scheme that packages storage, compute capacity, database, queuing, messaging services and payment methods to developers 2006 launched elastic cloud computing (EC 2) > Uses Xen hypervisor for virtualization > Supports open Solaris but not windows (no licensing) > Elastic Migration toolkit for migrating virtual images to remote Amazon EC 2 > Rely on API’s for developer apps > User dictates hard drive, memory, and charged per compute hour > Accounting system tracks and manages virtual resource usage

UTLITY COMPUTING PLATFORM > EC 2 wraps nicely into other Amazon Web Services Flexible payment services (FPS) > parameters that govern payment conditions > Only in US$ currently – need worldwide currency’s Simple DB > covers 80% of DBA needs - store, index, query a system Simple queue Service (SQS) > whenever 2 computers need to talk in an asynchronous manner – they can be loosely coupled Simple storage Service (S 3) > Animato (Amazon poster child) Launched on Facebook: 25, 000 new users an hour From 50 to 3, 500 servers in 2 days (for (750, 000 users)

UTLITY COMPUTING: COMPANY PROFILES > SAVVIS' Utility Compute App. platform delivering availability, scalability, flexibility Blade-based servers dedicated to a specific customer Multi-tenant chassis provides provisioning within 5 days Production servers have access to pool of failover servers > Joyent (Startup) Free hosting to Facebook app developers via direct link > Mosso (A Rackspace company) Supports Linux dev languages, Windows platforms, mail Scalable storage, bandwidth, utility compute and requests

UTLITY COMPUTING: COMPANY PROFILES > XCalibre (UK based) Dedicated hoster with Xen based Flexiscale – utility billable infrastructure for ISV’s – provisioning in <1 min > Sun’s Network. com Pay per use compute utility, with access to published apps > EMC’s recently launched cloud service SAP – software available on EMC storage over the web > IBM – Blue Cloud Developing hardware/software/service for finance market > AT&T, Verizon Business, Navisite 5 day provisioning for business (security/backend tied in)

ON-DEMAND STORAGE FOR DEVELOPERS > Amazon Simple Storage Solution (S 3) Competes on price and brand - Works well with AWS’s Includes desktop backup software, file sharing, flash drive UK 20% more price. Charges for GET/PUT/LIST. Accessible thru APIs (REST and SOAP) No credit cards services. No VMWare support. DDOS attack in Feb. > Nirvanix Charges more, higher-quality offering, better features Includes desktop backup software, file sharing, flash drive Popular Internet Media File System -transcoding media and image manipulation + good search capabilities New funding = European and Asian expansion data accessible to developers thru APIs (REST & SOAP)

ON-DEMAND STORAGE FOR DEVELOPERS > Layered Technologies (Dyna. Vol) Supplemented by utility computing No credit card sign-up. Aggregated fixed monthly fee. Strong security like the others. NB: Mounts as a File share on a Mac, Linux or BSD Client Uses existing industry control panels to ftp backup files Not facilities based; Narrower footprint > Rackspace Cloud. SF In beta; No SLA. Renown for support. Low pricing No gigabyte storage. Access data via API (not http) No file system access = non mountable on desktops. Similar to S 3. Good access speeds within datacenter. .

ON-DEMAND STORAGE FOR OTHERS > Savvis Utility Storage SAN, NAS, 50 GB increments, Utility Backup and Vaulting > Sun. Gard Availability Services “always on” RAID-protected SAN > AT&T, Verizon Business, Sun. Gard, Peer 1, etc. Supports, install, configure, manage, monitor the system All offer on-demand storage from a commercial pricing perspective. Orderable days/weeks in advance. > EMC - acquired Mozy for backup services > Google – back-up services for desktop users > Yahoo - elementary briefcase offering

Where are we today

FUTURE WINNERS > Those that virtualize or offer virtual hosting > Those Service Providers that can offer Cloud Services to SMB’s, Enterprises, ISV’s, Saa. S provider and the like Fully integrated Platform as a Service (security, analytics, billing, DB, OS, storage, DR, compute power, troubleshooting of apps) to Saa. S, ISVs, SMBs, Enterprises > Or niche specialists in a raw component thereof On Demand Storage to developers and beyond Utility Computing to developers and beyond Other (mobile or Vo. IP platform)

Questions ?