1. 1 © 2009 Cisco Systems, Inc. All rights reserved.Cisco Confidential Cloud Computing – The Value Proposition Wayne Clark Architect, Intelligent Network Services Cisco Systems, Inc. North Carolina Digital Government Summit September 3, 2009

2. 2 © 2009 Cisco Systems, Inc. All rights reserved.Cisco Confidential The Evolution of Computing Architectures © 2009 Cisco Systems, Inc. All rights reserved.Cisco Confidential 2  Service bureaus  Time sharing services  ASPs  Grid Computing 

3. 3 © 2009 Cisco Systems, Inc. All rights reserved.Cisco Confidential IT resources and services that are abstracted from the underlying infrastructure and provided “on-demand” and “at scale” in a multi-tenant environment Today, clouds are associated with an off-premise, hosted model © 2009 Cisco Systems, Inc. All rights reserved.Cisco Confidential 3

4. 4 © 2009 Cisco Systems, Inc. All rights reserved.Cisco Confidential Source: IDC, 10/2008 Cloud Services projected to grow at 5x the rate of current Enterprise IT spending How Big is the Cloud Opportunity? 27% CAGR Total Spending on Cloud-Based Services $16B $42B © 2009 Cisco Systems, Inc. All rights reserved.Cisco Confidential 4

5. 5 © 2009 Cisco Systems, Inc. All rights reserved.Cisco Confidential Source: Gartner, 2008 Hype Cycle for Emerging Technologies: 2008 © 2009 Cisco Systems, Inc. All rights reserved.Cisco Confidential 5

6. 6 © 2009 Cisco Systems, Inc. All rights reserved.Cisco Confidential Source: Gartner, 2009 Hype Cycle for Emerging Technologies: 2009 © 2009 Cisco Systems, Inc. All rights reserved.Cisco Confidential 6

7. 7 © 2009 Cisco Systems, Inc. All rights reserved.Cisco Confidential Architectural Service Layers of Cloud Computing © 2009 Cisco Systems, Inc. All rights reserved.Cisco Confidential 7 Each layer encapsulates on-demand resources Each layer comes with its own application development model Three service layers: Software as a Service (SaaS) Platform as a Service (PaaS) Infrastructure as a Service (IaaS)

8. 8 © 2009 Cisco Systems, Inc. All rights reserved.Cisco Confidential Software as a Service (SaaS) © 2009 Cisco Systems, Inc. All rights reserved.Cisco Confidential 8 Cloud provider offers software services that are of potential interest to a wide variety of users Users (optionally) buy subscription to software products Software implemented by cloud provider on their own infrastructure Instances of the software run on cloud provider infrastructure and serve multiple client organizations Some or all of the data resides remotely Examples: SalesForce.com, Google Mail, Google Docs

9. 9 © 2009 Cisco Systems, Inc. All rights reserved.Cisco Confidential Platform as a Service (PaaS) © 2009 Cisco Systems, Inc. All rights reserved.Cisco Confidential 9 Cloud provider offers a platform upon which developers provide services that are of potential interest to a wide variety of users Users (optionally) buy subscription to software products Software implemented by developers to run on the cloud provider infrastructure Instances of the software run on cloud provider infrastructure and serve multiple client organizations Some or all of the data resides remotely Examples: Google Apps Engine, Amazon Web Services (w/ basic web stack)

10. 10 © 2009 Cisco Systems, Inc. All rights reserved.Cisco Confidential Infrastructure as a Service (IaaS) © 2009 Cisco Systems, Inc. All rights reserved.Cisco Confidential 10 Cloud provider offers IT infrastructure (compute, storage, network, etc.) to customers Virtualization is leveraged to dynamically combine resources in order to build and deliver ad hoc systems to the customer Customers deploy their own software environment (i.e. virtual machine images) to run on these systems Resources used by customers can grow and shrink on demand Some or all of the data resides remotely Examples: Amazon Web Services (EC2 and S3)

11. 11 © 2009 Cisco Systems, Inc. All rights reserved.Cisco Confidential Who Are the Major Cloud Players? APPLICATION (SaaS) INFRASTRUCTURE AS A SERVICE (IaaS) PLATFORM AS A SERVICE (PaaS) IT FOUNDATION © 2009 Cisco Systems, Inc. All rights reserved.Cisco Confidential 11

12. 12 © 2009 Cisco Systems, Inc. All rights reserved.Cisco Confidential Phased Evolution of Cloud Stand-alone Clouds Private Clouds Inter-Cloud  Security  SLAs  Interoperability Key Challenges:  Federation  Portability  Market Key Challenges: External, Off-Premise Internal, On-Premise © 2009 Cisco Systems, Inc. All rights reserved.Cisco Confidential 12

13. 13 © 2009 Cisco Systems, Inc. All rights reserved.Cisco Confidential