1. Cloud Computing Business Models
Antonio Piraino – Tier1 Research

2. Topics Covered What is Cloud Computing?
Who are the major players Cloud Services?
What are SMB’s and Enterprises asking for?
What are Managed Hosting Providers doing?
How Managed Hosters use virtualization
Top Managed Hosting Cloud Players
Tomorrow’s Winners and Losers

3. Defining all of this, Cirrus-ly
Real-time accessible Computing infrastructure
Access by 3rd 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

4. Cloud Computing is IT as a Service

5. Cloud Apps: Web 2.0, SaaS, Remote apps
Remote desktop applications
Run on top of underlying cloud infrastructure platforms
SaaS providers
CRM, ERP, VoIP, BI, supply chain
Web 2.0
interconnectivity and interactivity of
web-delivered content
New Services exploiting underlying platforms

6. Clouds: Grid, IaaS or PaaS?
ERP,DB,XML files, flat files,web services,
on-demand apps, SaaS hoster, API’s,
load balancing, DNS configuration, storage
IaaS 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

7. Topics Covered What is Cloud Computing?
Who are the major players Cloud Services?
What are SMB’s and Enterprises asking for?
What are Managed Hosting Providers doing?
How Managed Hosters use virtualization
Top Managed Hosting Cloud Players
Tomorrow’s Winners and Losers

8. Amazon Web Services Cloud is pricing scheme for developers EC2
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
SimpleDB – store, index, query a system
Simple Queue Service (SQS)
Simple Storage Service (S3)
Flexible Payment Service (FPS)
CloudFront CDN

9. Google AppEngine Dev tool for Web apps on Google infrastructure
Does not operate in stand-alone mode like EC2
Developers hand over code; Google checks request logs, monitor status of app, push new versions, integrate pieces
Compete with MS/AWS:
BigTable vs. SimpleDB and MS SSDS
DataStore: 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, OpenSocial, etc

10. 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

11. Topics Covered What is Cloud Computing?
Who are the major players Cloud Services?
What are SMB’s and Enterprises asking for?
What are Managed Hosting Providers doing?
How Managed Hosters use virtualization
Top Managed Hosting Cloud Players
Tomorrow’s Winners and Losers

12. Use of cloud computing services

13. Cloud computing vendors

14. What cloud computing is used for

15. 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 SaaS
Heavy SaaS use & More managed hosting
What does the large enterprise need?
More datacenter space
Heavy storage and virtualization support
More SaaS use
Top unmet need: managed virtualization
4th Annual Hosting Transformation Summit North America
15-17 September 2008 • The Mirage Hotel • Las Vegas, Nevada

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

17. Topics Covered What is Cloud Computing?
Who are the major players Cloud Services?
What are SMB’s and Enterprises asking for?
What are Managed Hosting Providers doing?
How Managed Hosters use virtualization
Top Managed Hosting Cloud Players
Tomorrow’s Winners and Losers

18. Evolution of Managed Hosting Sector

19. Hosters: Cloud Services Currently Offered

20. Hosters: Largest users of Cloud services

21. Hosters: What do Customers need from you

22. Hosters: Customer challenge to Cloud

23. Hosters: Your challenges in move to Cloud

24. Topics Covered What is Cloud Computing?
Who are the major players Cloud Services?
What are SMB’s and Enterprises asking for?
What are Managed Hosting Providers doing?
How Managed Hosters use virtualization?
Top Managed Hosting Cloud Players
Tomorrow’s Winners and Losers

25. Virtualization Technologies
Type 1/Bare Metal/Hypervisor/x86 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 XenServer (Linux)
Parallels Server
Trango
Sun xVM

26. OS Virtualization Technologies
Type 2/OS/Hosted
Virtual access to a single-kernel OS = less OS sprawl
Good for well-powered datacenters, numerous apps, high workloads and SaaS
Quick provisioning
Parallels Virtuozzo Containers
Sun Solaris Containers
OpenVZ
Unix chroot command
Linux-VServer

27. Virtualization Deployments
Parallels
Rackspace, ThePlanet, Enigmatec, Dedipower
VMware
Verizon, BT, ATT, Savvis, Terremark, SunGard, Mosso (Rackspace)
XEN-based
FlexiScale, Novell’s Suse, Neocleus, Citrix, Amazon AWS
Microsoft HyperV
Layeredtech, SoftLayer, CrystalTech, HostMySite

28. The Rackspace experience
VMs
Typical
deployment
Profitability
Live
Migration use
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

29. Type 2 Virtualization Impact

30. Type 2 Virtualization Impact

31. 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.
LifeCycle 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

32. Type2 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

33. Topics Covered What is Cloud Computing?
Who are the major players Cloud Services?
What are SMB’s and Enterprises asking for?
What are Managed Hosting Providers doing?
How Managed Hosters use virtualization?
Top Managed Hosting Cloud Players
Tomorrow’s Winners and Losers

34. Top Managed Hosting Cloud Players
OpSource On-Demand & Connect
Mosso (Rackspace) CloudFS, CloudFiles
StrataScale’s Ironscale (RagingWire)
FlexiScale (XCalibre)
Terremark Infinistructure & Enterprise Cloud
Savvis Utility Services (Compute & Storage)
AT&T Synaptic Hosting platform
Layeredtech on-demand storage
Peer1, SunGard Availability Services, NaviSite, Verizon Business, The Planet working on new services

35. Mosso (RackScale)

36. Flexiscale (XCalibre)

37. IronScale (RagingWire)

38. Topics Covered What is Cloud Computing?
Who are the major players Cloud Services?
What are SMB’s and Enterprises asking for?
What are Managed Hosting Providers doing?
How Managed Hosters use virtualization?
Top Managed Hosting Cloud Players
Tomorrow’s Winners and Losers

39. Hosters: PaaS opportunities
The Symbiotic Friend
Utilize your PaaS/managed hosting services
Integrated Security, Network, DB, Storage, SLAs, etc
A higher level PaaS 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, PaaS for you

40. 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

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

42. Questions? Antonio Piraino antonio@t1r.com www.tier1research.com