1. 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

2. Managed Hosting Technology Trends Managed Hosting Services Evolution Infrastructure & OS level Application layer management Managed Virtualization PAAS, SaaS Provisioning, Integration, billing Network & Datacenter Time and Revenue growth push Managed Hosting Providers upward and outward eDiscovery Managed Storage DR Protection Utility Computing On-Demand Storage Managed Security Managed Mail Amazon S3 Nirvanix Layered Tech Evolving Technologies Managed Database VMWare Parallels Denali XEN MS Trango Sun Amazon EC2 Google AppEng Mosso Verizon VUC Colocation Hosting Shared Hosting Managed Hosting

3. Evolution of Managed Hosting Sector  Major technology Trends  Investment in Managed Services  Application Management – CRM, SAP, messaging  SaaS 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/SaaS  Range from social networking, to CRM-centric, to functional

4. Hypervisor Virtualization Technologies  Bare Metal/Hypervisor/x86Server virtualization  Best for dev/testing, virtual desktop, legacy server consolidation  Virtualize access to hardware  Each VM has a guest OS  less server sprawl  VMARE ESX  Citrix XENserver (Linux)  Parallels Server  Microsoft Hyper-V  Trango  Sun xVM Virtual Machines Bare Metal Virtualization Technology Platform As a Service Apps Pre- Production Apps Virtual Machines SAAS X86Hardware Guest OS

5. 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, SaaS  Quick provisioning  Parallels Virtuozzo Containers  Sun Solaris Containers  OpenVZ  Unix chroot command  Linux V-Server Operating System Management OS Virtualization Technology Platform As a Service Apps Pre- Production Apps Virtual Machines SAAS X86Hardware

6. Evolution of Managed Hosting Sector End-user Application Layer utilization Traditional Managed Hosting Services X86 Hardware Operating System Management Middleware Platform As a Service Apps Pre- Production Apps SAAS c Data SAN/NAS/DAS

7. 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

8. 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  SunGard  data protection and disaster recovery  Parallels - automation tools and virtualization  Rackspace, The Planet, ServerBeach, Dedipower, Hostway  Fewer licenses in datacenters, but many desktop users  UK-based  Xcalibre – Flexiscale: utility/shared infrastructure startup  Enigmatec – policy based process automation

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

10. CLOUD or GRID COMPUTING?  Not to be confused with SaaS/Apps  GoogleApps, Windows OfficeLive, 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

11. 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

12. 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

13. 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

14. UTLITY COMPUTING PLATFORM  Amazon EC2 (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 (EC2)  Uses Xen hypervisor for virtualization  Supports open Solaris but not windows (no licensing)  Elastic Migration toolkit for migrating virtual images to remote Amazon EC2  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

15. UTLITY COMPUTING PLATFORM  EC2 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 (S3)  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)

16. 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

17. 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)

18. ON-DEMAND STORAGE FOR DEVELOPERS  Amazon Simple Storage Solution (S3)  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)

19. ON-DEMAND STORAGE FOR DEVELOPERS  Layered Technologies (DynaVol)  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 CloudSF  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 S3. Good access speeds within datacenter..

20. ON-DEMAND STORAGE FOR OTHERS  Savvis Utility Storage  SAN, NAS, 50GB increments, Utility Backup and Vaulting  SunGard Availability Services  “always on” RAID-protected SAN  AT&T, Verizon Business, SunGard, Peer1, 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

21. Where are we today

22. FUTURE WINNERS  Those that virtualize or offer virtual hosting  Those Service Providers that can offer Cloud Services to SMB’s, Enterprises, ISV’s, SaaS provider and the like  Fully integrated Platform as a Service (security, analytics, billing, DB, OS, storage, DR, compute power, troubleshooting of apps) to SaaS, 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 VoIP platform)

23. Questions ?