Cloud Computing Business Models Antonio Piraino – Tier1 Research

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

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

Cloud Computing is IT as a Service

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

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

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

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

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

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

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

Use of cloud computing services

Cloud computing vendors

What cloud computing is used for

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

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

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

Evolution of Managed Hosting Sector

Hosters: Cloud Services Currently Offered

Hosters: Largest users of Cloud services

Hosters: What do Customers need from you

Hosters: Customer challenge to Cloud

Hosters: Your challenges in move to Cloud

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

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

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

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

The Rackspace experience 1 2 3 4 5 6 7 8 9 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

Type 2 Virtualization Impact

Type 2 Virtualization Impact

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

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

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

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

Mosso (RackScale)

Flexiscale (XCalibre)

IronScale (RagingWire)

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

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

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

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

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