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Presentation given at HostingCon 2008 in Chicago for the Marketing tract. Designed to explain the differences between various Cloud Computing models as well as dispel myths and illustrate the features and benefits of Clouds.
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Every Cloud Has a Silver Lining
Marketing “The Cloud”
John PozadzidesChief Marketing Officer
Layered [email protected]
Brief Introduction
Marketing “The Cloud”
Today we’ll focus on 3 key questions:
Before We Get Started…
I’m not just the CMO…
I’m also a client!
Sy Sterling – President Hair Club for Men
A Glimpse at What I’ve Got
Pozadzides.com
OneMansBlog.com
Woopra.comHTMLHelp.com
Where is all of this heading?
Gartner’s Picks for 2008
Gartner’s top 10 technologies for 2008:1. Green IT2. Universal communications3. Business process modeling4. Metadata management5. Virtualization “2.0”6. Mashup and composite Web7. Web platforms and “WOA”8. Computing fabric9. “Real World” web10. Social software
Cloud as a Growth Engine
“Infrastructure is on an inevitable shift from components that are physically integrated by vendors (for example, monolithic servers) or manually integrated by users to logically composed “fabrics” of computing, I/O and storage comments”.
Gartner Publication Number: G00156488
Forrester Trends
Forrester’s IT to business technology (BT) transformation vision identifies 5 trends:
• Virtualization everywhere.• The consolidation of everything.• Standardization and simplification of IT.• Business continuity and disaster recovery (BC/DR) are
at the heart of major IT initiatives.• A new wave of technology refresh will kick in.
Worldwide Physical and Logical Servers (Millions per year)
Source: Server Virtualization Market Forecast and Analysis, 2006 – 2011; IDC; (January 2008)
IDC’s Virtualization Market
Cloud Computing Goes Mainstream
Google is In!April 7, 2008: App Engine service to power developer
applications.
• June 10, 2008: Google’s focus is on the Cloud. "The next 10 years of innovations are going to be in the cloud. Enterprise software is not going away, but there is a transition
taking place.” - Rishi Chandra, Product Manager Google Enterprise
Cloud Computing Goes Mainstream
IBM is In!• Nov. 15, 2007: IBM unveils Blue Cloud for banking and
other distributed applications. • The first Blue Cloud deployments already appearing.
Yahoo is in!• March 24, 2008: Yahoo announces an agreement with
Computational Research Laboratories (CRL) to support cloud computing.• Initial support for research, later to make it’s way into
production environments
Cloud Computing Goes Mainstream
Even Microsoft is getting in!Windows Live Mesh incorporates cloud storage
technology• (Most computing is still handled on the desktop.)
And of course, Amazon:• Amazon Elastic Compute Cloud (EC2) provides
resizable compute capacity in the cloud.
• Amazon Simple Storage Service (Amazon S3) provides data storage for the Web.
The Big Question
“As the gap widens between enterprise and Web giant economics, it may get to the point that it no longer makes financial sense for many businesses to run their own servers. When this happens, will you be a cloud or a cloud customer?”
- James Staten, Forrester Research
A Google Search for “cloud computing” found 28,000 results one week!
A Google Search for “cloud computing” found 28,000 results one week!
Everyone Is Talking About It!
Gizmodo Fortune GigaOM ReadWriteWeb
Virtualization is the Highest Impact Trend
• “Virtualization will be the highest-impact trend changing infrastructure and operations through 2012”
• “Virtualization will transform how IT is managed, what is bought, how it is deployed, how companies plan and how they are charged”
• “Analysts predict that more than 4 million virtual machines will be installed on x86 servers by 2009”
• Business Wire, Wednesday, April 2, 2008
The Bottom Line
“Virtualization is hot. It changes and touches nearly everything in the IT portfolio. If affects what you
buy, how you buy and how you implement it.”
Gartner Special Reportby Phillip Dawson, Thomas J. Bittman
What are we up against?
What You Can Expect to Hear
Fear, Uncertainty and Doubt!
A few responses to concerns raised regarding Clouds:
“One of the ways to go truly insane is to read the terms of service for these clouds.”
• OK. Amazon has the right to terminate an account at any time, for any reason
• It doesn’t mean those terms apply to the entire industry.
• Mosso, LT, and others provide terms similar to those of dedicated servers
“What happens if a server or a hard disk crashes in the middle of an operation?”
• Depending on the service, it’s the same as a dedicated server.
• However, if this is a concern, the option is a Grid or Cluster.
Fear, Uncertainty and Doubt!
(Continued)“…you can’t even write a file in your own directory with the (Google) app
engine...”• Google’s service fits a particular niche, it simply can’t be compared to others like
Mosso, GoGrid or The Grid Layer
• Every other service allows for this functionality
“(Go Grid’s) only way to stop paying for a server is to delete it, and that means losing all of the data on it.”
• With no commitment and no minimums they can’t have apps sitting on their gear hogging space for free.
• Plans from Mosso or Layered Tech offer a fixed price so you don’t have to worry about the cost of deploying VPS.
Fear, Uncertainty and Doubt!
(Continued)“No vertical scaling (you get a 1.7Ghz CPU and 1 GB of RAM, that’s it)”• Layered Tech’s AppLogic based system gives full control over this.
“Support is non-existent.”• Mosso and Layered Tech both offer 24/7 helpdesk support.
• LT even offers full management.
“You can’t build VM images.”• Amazon allows images based on their standard Linux kernels
• LT’s platform allows this.
Fear, Uncertainty and Doubt!
(Continued)“Do you owe sales tax if your application touches down in a part of the
cloud that’s in New York?”• This issue would be identical to simply hosting on a dedicated server in NY
“It’s hard to know what things will end up costing.”• Expect to pay a premium if you opt for no minimums and no commitment.
• Amazon, Google and GoGrid may be a bit difficult to predict initially, but should settle into a pattern over time.
• Mosso offers a flat rate plan good for many people.
• LT’s is also fixed cost.
The Bottom Line
People throw out a ton of “generic” objections that only apply to one or two services.
The Industry needs to do a better job of educating!
How do I explain it to the masses?
In Very Simple Terms
Cloud Computing Dedicated Hosting
Chuck Norris Mini Me
IS TOIS TO
IS TOIS TO
Clouds and Virtualization
Think of Cloud Computing as a sub-set of Virtualization.
All Routinely called “Clouds”
All Routinely called “Clouds”
Virtualization Options Abound
Virtualization technologies are everywhere:• Microsoft Hyper-V and Virtual PC 2007• Sun VirtualBox (Windows, Linux, Mac, OpenSolaris)• VMware ESX, Server (GSX), Workstation, Fusion• Parallels Workstation, Desktop
And customers want hosted support for all of them!
Reasons to Virtualize
Single or multiple dedicated machines can be virtualized:• Add snapshots and backups• Instantaneous provisioning of VMs• Easy migration and upgrade paths• Simplified management of multiple machines• Automated fail-over
Virtual Machines Can Be Clustered!
Clusters offer:
• Dedicated resources
• Fixed costs
• Enterprise grade (VMware, Microsoft, Sun)
• Limited Scalability
• Tightly coupled systems
• Single system image
• Centralized Job management & scheduling system
Example of VM Clustering
Servers Can Be Combined In a Grid
IBM defines grid computing as:
"….all or some of a group of computers, servers and storage across an enterprise, virtualized as one
large computing system.”
Grid Computing Characteristics
Grids offer:
• Dedicated resources
• Fixed costs
• High availability
• High scalability
• Multiple / independent Operating Systems
1. Treats multiple servers as a single “pool” of resources.
Firewall½ CPU / 64MB Ram / 20 MB Disk
2. Applications are allocated the exact hardware required.WWW
1 CPU512 MB Ram20 MB Disk
WWW1 CPU
512 MB Ram20 MB Disk
WWW1 CPU
512 MB Ram20 MB Disk
Database2 CPUs
4GB Ram1 TB Hard Disk
Load Balancer½ CPU / 64MB Ram / 20 MB Disk
3. Spare resources are used for redundancy and scalability.
4. Performance, reliability and value all improve.
Grid Computing Example
Utility Computing Characteristics
Can be built on dedicated, cluster or grid systems.• Billing model based on resources consumed• No minimums, no maximums• Pay-as-you-go model• One size fits all• Generally little / no support• No guarantees / SLA
It’s just like the electric company!
Benefits of “Cloud” Technologies
Cost savings are nice, but the real benefits come from the Virtualization features:– Low barriers to entry– Rapid deployment– Increased functionality (ie – disaster recovery)– Elasticity (rapid scalability)– Simple exit strategy (switchability)
As a result, 25% of new applications are being deployed in VMs, as compared to only 7% historically.
Summary
Virtualization will rule the world.
Grid, Cluster and Utility platforms are just large iterations of Virtualized infrastructure.
Most complaints about Clouds are generalizations.
Education is the key to channeling customers toward the right vendor.
If you aren’t selling Cloud services yet, you need to strike a deal with a partner so you can!