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Content In The Cloud An extension of the human nervous system Jonathan H. King SVP Business Development.

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1 Content In The Cloud An extension of the human nervous system Jonathan H. King SVP Business Development

2 2 How should one think about the cloud?

3 3 The Medium itself, not the content it carries, should be the focus of study.

4 4 Mediums Change Vinyl Cassettes CDs Digital Singles

5 Marshall McLuhan on the Medium "the book is an extension of the eye… clothing, an extension of the skin… electric circuitry, an extension of the central nervous system” The Medium is the Massage: An Inventory of Effects (1967) Understanding Media: The Extensions of Man (1964) "the medium is the message…”

6 The Medium is the Message Massage I can order it online and have it delivered to my devices instantly The Book is an extension of the eye – Internet era The Book is an extension of the eye – Cloud era I can order it online and have it delivered to my door in a day I can read on one device and “the cloud” knows whichever page I am As I read I can see popular highlights from other readers I can write the book as I tweet …

7 The Medium is the Message Massage “Clothing an extension of the skin” - Internet “Clothing an extension of the skin” - Cloud I can order it online and have it delivered to my door in a day By deploying our infrastructure on Joyent, Gilt Groupe spends less than one percent of revenue on its total infrastructure investment. This is more than 70% better than the average company. MIKE BRYZEK, Founder and CTO GILT Groupe

8 “The Internet” Is Not “The Cloud” “In the Nineteenth Century there were no televisions, airplanes, computers, or spacecraft; nor were there antibiotics, credit cards, microwave ovens, compact discus, or mobile phones. There was, however, an Internet. During Queen Victoria’s reign, a new communications technology was developed that allowed people to communicate almost instantly across great distances, in effect shrinking the world faster and further than ever before.” The Victorian Internet by Tom Standage (1998)

9 9 “The Internet” is the network for the cloud Two telephones can make only one connection Five can make 10 connections Twelve can make 66 connections. … N 2

10 10 “Electric Circuitry, an extension of the central nervous system”

11 ,,,, 2020 … Moore’s law states that the number of transistors on a chip will double about every two years. Intel has kept that pace for over 40 years, providing more functions on a chip at significantly lower cost per function. Physical limits of atomic structures or power density could be reached by Moore’s Law and Ones Like It

12 12 What used to be the computer is now the mobile device 1984 Apple, the computer company 2010 Apple, the mobile device company

13 Devices Overtake PCs in 2011 Smartphones and Tablets pass Desktops and Notebooks in 2011.

14 Verizon won the most prized spectrum in the 2008 auction: the Upper 700 MHz C block. This particular slice of spectrum is valuable for two reasons: geography and bandwidth. What used to be TV is now Mobile “Beachfront” Verizon Wireless’ deployment of LTE in the beachfront 700 MHz spectrum provides coverage and in-building penetration advantages over existing 3G technologies (and other 4G competitive implementations).


16 What used to be server is now data center “Joyent’s Jason Hoffman likes to talk about the data center being the new box. The analogy goes that, with more organizations hosting applications in the cloud and data volumes skyrocketing, the cloud data center takes the place of the on-premise server. And if the data center is the server, the cloud computing management software, atop which applications run, must be the new operating system. Much like there was Wintel (Windows-Intel) in the client- server world, Hoffman thinks there can be Joytel (Joyent-Intel) in the cloud world. I think he’s onto something.” November 2010

17 17 The medium to study is Cloud Computing

18 18 Joyent, the cloud computing company

19 Cloud Software Public Cloud 6 years operating a cloud Smart Data Center 6.0 Three Cloud Computing Divisions developer tools & hosting node.js Open Source Initiative ( & Commercial Offering professional services & license program

20 20 6 Years Operating a Public Cloud targeting Gaming, Media and Social

21 21 Gartner defines cloud computing as "a style of computing where scalable and elastic IT-related capabilities are provided 'as a service' to external customers using Internet Technologies“. Internet Technologies Services are delivered through use of Internet Identifiers, Formats, and Protocols. 5 Metered By Use Services are tracked with usage metrics to enable multiple payment models. 4 Shared Services share a pool of resources to build economies of scale. 3 Scalable & Elastic Services scale on-demand to add or remove resources as needed. 2 Service Based Consumer concerns are abstracted from provider concerns through service interfaces 1 5 Attributes that support outcomes Cloud Computing Defined

22 22 Metered By Use 4 Shared 3 Scalable & Elastic 2 Service Based 1 Wall Street Journal February 15, 2011

23 SuperNAP + Internet Technologies Services are delivered through use of Internet Identifiers, Formats, and Protocols. 5

24 Gaming: Kabam Kabam is a leading developer of social games on Facebook, connecting millions of sports and TV fans through its extensive network of online fan communities, and has extended that social product expertise to create innovative and engaging social games. Social networking based games can be a real headache to scale from an infrastructure point of view. The Joyent Cloud has virtually eliminated this problem for us. JOHN HIGGINSDir. Web OperationsKabam Inc.

25 Socializing: LinkedIn With over a billion page views per month bumper sticker from LinkedIn is one of the largest Ruby applications on the web. It runs on SmartMachines in the Joyent Public Cloud. One engineer, one week, and a few Joyent SmartMachines later and bumper sticker was born. The bet was we’d get to a million users in 45 days, we got there in 46. Jim Meyer, Light Engineering at LinkedIn

26 26 Services

27 27 SmartDataCenter 6.0 Software for Service Providers

28 28 Market Disruption = Market Opportunity Service Providers Telecoms Managed Service Providers Data Center Operators Hardware Manufactures Servers Enterprise Storage Networking Gear System Integrators

29 When designing their Cloud Solution for Web Application, Dell chose Joyent Smart Technologies as their software because it provided unique value to enterprise developers building web apps. Along with Dell DCS services and hardware, we chose to incorporate Joyent software because it provides a proven architecture for scaling Web applications. Forrest Norod General Manager for Servers at Dell Hardware Manufacturers See It Coming

30 30 “to illustrate... what kind of computational solutions will be required in the data center to power this new age of digital devices used on the Internet, look at Joyent. This is second generation cloud computing to suit the connected digital world.”Joyent (Andy Mulholland, Capgemini CTO) Sis See It Coming

31 31 Cloud Software For Service Providers x86 - Platform from Intel SmartKernel - Cloud Engineered Kernel Programmable Hypervisor with Full Introspection SmartDataCenter 6 Complete Solution to Operate a Cloud IaaS, PaaS Virtual Machines Admin and Operations Portal Self Provisioning Portal Cloud Telemetry & Analytics Extensibility (APIs) Billing Existing Software Ecosystem Integrates w/ Routers, Switches Node.js Service ISV Virtual Appliances GNU Tool Chain SmartOS KVM - Linux KVM - WindowsPHP SmartOS Java SmartOS Rails SmartOS SmartMachines - Container Based Virtual Machines

32 Why did Joyent build its own Cloud OS?

33 Why does Apple build its own Chips? In the cellphone world, a chip is a chip. Most of them are ARM-based but there are a few outliers. Most importantly, however, each has a similar power profile. Therefore, by controlling the entire chip themselves, Apple can handle its own graphics, video, and audio output as well optimize for power control – a huge concern with devices like the iPhone.

34 Cloud Computing Optimized Performance = I/O Acceleration App VCPU Emulation CPU Disk App CPU Disk ARC Cache + I/O QOS No VCPU means 5× faster on CPU benchmarks ARC Cache + I/O QOS means 14x faster on Disk IO benchmarks Emulation of CPUs slows performance No Global Disk Caching means non-optimize Disk IO Can’t support web/mobile: Interactive, mobile, real-time, games, social, machine-to-machine apps. Supports web/mobile, data- intensive real-time apps. Note: Improving I/O, not CPU or memory, is the key to fast web apps. Hypervisor

35 Joyent’s Higher Performance 3x more Database Requests per Sec 5× faster on CPU benchmarks 20× faster Word Press response 14× faster Disk I/O benchmarks Joyent vs. Amazon (EC2) For more details, read OR

36 Higher performance = higher margin In Q4 2010, the iPhone had 4.2% market share and took 51% of the profit

37 37 Joyent’s Higher Margin rackspace/ rackspace/ Rackspace Joyent at Rackspace Pricing Joyent at Joyent Pricing 4× Revenue per sq ft (See graph) 7× EBITDA margin reported by Amazon (Forbes)

38 Better Analytics: Real Time Visualization


40 Joyent’s node.js

41 41 “Electric Circuitry, an extension of the central nervous system”

42 Joyent’s node.js Joyent’s Ryan Dahl Node.js Creator


44 44




48 48 The Medium to study is cloud computing. Good places to start your studies:

49 Thank you for your time Jonathan H. King #jhk24 Joyent, Inc. SVP Business Development (Books referenced reviewed on my personal blog

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