Cloud Computing Disruptive Innovation & Enabling Technology Authors: John Keagy (CEO & Co-Founder of GoGrid/ServePath) Michael Sheehan (Technology Evangelist of GoGrid/ServePath) Paul Lancaster (Business Development Manager for GoGrid/ServePath) August 2008

The “Cloud” = 10X Improvements Ease of Use Scalability Risk Reliability Cost

Ease of Use Deploy infrastructure with a mouse or API –No cabling, screwdrivers, racking, unboxing, buying –Middle of the night –Do it yourself remotely from anywhere anytime

Scalability See Ease of Use Control your infrastructure with your app Nothing to purchase and take delivery on Instant

Risk Nothing to buy Cancel immediately Change instantly, even operating systems Throw it out Rebuild it instantly after testing RISK

Reliability Based on enterprise grade hardware Design for failures: –Automatically spin up replacements –Use multiple clouds

Cost “Turn off the lights” = turn off servers you aren’t using –Ex: Turn off development and test environments Pay for only what you use No need to buy in advance Zero Capital Outlay No contracts

Colo Managed “Breaking the Dam(n!)” Colocation – 1 st step to outsourcing Managed Hosting – dedicated servers managed by 3 rd party take some pain away Cloud Hosting – Lower cost, easier, lower risk, more reliable

Traditional Hosting Costs Continue to Grow High CapEx Low facility asset utilization (55%) High Depreciation (42-50%) Power/Cooling costs > Server Costs Not “Green” 30% hardware obsolescence - Source: Forbes.com, Kenneth Brill, “Servers: Why Thrifty Isn’t Nifty” Source: Forbes.com, “Servers: Why Thrifty Isn’t Nifty”

Trending Away from the “Pain” Source: Google Insight for Search

MULTIPLE DEFINITIONS Understanding how others view “Cloud Computing”

Forrester Research “A pool of abstracted, highly scalable, and managed compute infrastructure capable of hosting end-customer applications and billed by consumption 1 ” 1- “Is Cloud Computing Ready for The Enterprise?” Forrester Research, Inc.

Forrester Research (cont’d) Different than SaaS –Prescripted & Abstracted Infrastructure –Fully Virtualized –Dynamic Infrastructure Software –Pay by Consumption –Free of Long-Term Contracts –Application and OS Independent –Free of Software or Hardware Installation “Cloud computing has all the earmarks of being a potential disruptive innovation that all infrastructure and operations professionals should heed.”

Other Definitions “Cloud computing is an emerging approach to shared infrastructure in which large pools of systems are linked together to provide IT services.” – IBM press release on “Blue Cloud” “…a hosted infrastructure model that delivers abstracted IT resources over the Internet” – Thomas Weisel Partners LLC from “Into the Clouds: Leveraging Data Centers and the Road to Cloud Computing” “Cloud computing describes a systems architecture. Period. This particular architecture assumes nothing about the physical location, internal composition or ownership of its component parts.” – James Urquhart blog post

Multiple Graphic Descriptions of the “Cloud”

REDEFINING THE DEFINITION Our view of “Cloud Computing”

Defining the Segments SaaS –Software as a Service –Storage as a Service PaaS – Platform as a Service IaaS – Infrastructure as a Service

Colo vs. Managed vs. Cloud Hosting ColocationManagedCloud TimeWeeks to MonthsDays to WeeksMinutes ScalabilitySlowest, Rigid & Costly Slower, somewhat flexible, Costly Instant, Flexible, Pay-per-usage CostHigh CapExCostly, sometimes month/year contracts, no CapEx No contracts, usage based, no upfront costs “Green”Low High - virtualized Pricing modelBuy Servers & Colo costs whether used or not Rent Servers & Hosting costs whether used or not Rent based on usage only

Hosting Industry Ripe for Change Technology has evolved People demand more control Instant gratification In-house too costly from CapEx and Human Capital Colocation for those who want to be physically there Managed is not dynamic enough Cloud Computing -“Enabling Technology” to move from Traditional Hosting to Cloud Hosting

The Cloud’s “Snowball Effect” Maturation of Virtualization Technology Virtualization enables Compute Clouds Compute Clouds create demand for Storage Clouds Storage + Compute Clouds create Cloud Infrastructure Cloud Infrastructure enables Cloud Platforms & Applications Multiple Cloud types lead to Cloud Aggregators Niche requirements enable Cloud Extenders

The “Cloud Pyramid” Build upon a foundation Layers equate structure Building blocks: Infrastructure, Platforms, Applications Breadth vs. Niche

The “Cloud Pyramid” Inversed 1000’s of Cloud Applications currently Handful of Cloud Platforms Elite group of Cloud Infrastructure providers # of Marketplace providers

Cloud Computing is… … virtualized compute power and storage delivered via platform-agnostic infrastructures of abstracted hardware and software accessed over the Internet. These shared, on-demand IT resources, are created and disposed of efficiently, are dynamically scalable through a variety of programmatic interfaces and are billed variably based on measurable usage.

Cloud “Applications” SaaS resides here Most common Cloud / Many providers of different services Examples: SalesForce, Gmail, Yahoo! Mail, Quicken Online Advantages: Free, Easy, Consumer Adoption Disadvantages: Limited functionality, no control or access to underlying technology

Cloud “Platforms” “Containers” “Closed” environments Examples: Google App Engine, Heroku, Mosso, Engine Yard, Joyent or Force.com (SalesForce Dev Platform) Advantages: Good for developers, more control than “Application” Clouds, tightly configured Disadvantages: Restricted to what is available, other dependencies

Cloud “Infrastructure” Provide “Compute” and “Storage” clouds Virtualization layers (hardware/software) Examples: Amazon EC2, GoGrid, Amazon S3, Nirvanix, Linode Advantages: Full control of environments and infrastructure Disadvantages: premium price point, limited competition

Cloud “Extenders” (Wild Card) Provides extension to Cloud Infrastructure and Platforms with basic functionality Examples: Amazon SimpleDB, Amazon SQS, Google BigTable Advantages: Extends functionality of Compute & Storage Clouds to integrate with legacy system or other clouds Disadvantages: Sometimes requires use of specific Platforms or Infrastructure

Cloud “Aggregators” (Wild Card) Sits on top of various Cloud Infrastructures for management Examples: RightScale, Appistry Advantages: Provides more options for Cloud environments Disadvantages: Dependent on Cloud Providers

The NEW “Cloud Pyramid”

Hosting Heads to the Clouds Static  Dynamic = Quick & Easy Scalability Cost Prohibitive  Cost Effective = Cost Efficiencies Predictable  Unpredictable = Innovations Stagnant  Growth = Evolution Traditional Hosting  Cloud Hosting = FUTURE!

Contact Information Paul Lancaster –Business Development Manager, GoGrid – –Mobile: Site: Blog: