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Making the Cloud Concrete Cloud Computing and the SMB Market Robert Keahey, Principal/Founder SummaLogic LLC July, 2011 Making the Cloud Concrete

Making the Cloud Concrete

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Presented in July 2011 at a IBM-sponsored Focus.com webinar, this presentation describes the state of cloud computing in the SMB market and outlines considerations and challenges facing SMBs as they move to this new service model.

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Page 1: Making the Cloud Concrete

Making the Cloud Concrete

Cloud Computing and the SMB Market

Robert Keahey, Principal/Founder – SummaLogic LLC

July, 2011

Making the

Cloud Concrete

Page 2: Making the Cloud Concrete

Page 2 © 2011 Focus, Inc. All rights reserved.

“Cloud for the SMB – That

ship has sailed…”

Blog post on bitcurrent.com – July 2008

Page 3: Making the Cloud Concrete

Page 3 © 2011 Focus, Inc. All rights reserved.

The SMB Market for Cloud Services

Market Grows to $49B by 2015(1)

(2) (2)

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Page 4 © 2011 Focus, Inc. All rights reserved.

Benefits and Drivers

Top Business Benefits of

Implementing Cloud Computing

Top Ten Technology Focus Areas

Cost, Security and Customer Management are Key

But so is Workforce Mobility

(3)

(3)

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Page 5 © 2011 Focus, Inc. All rights reserved.

What’s Being Consumed?

3.3 Mean number of paid

applications in cloud by

2014 (5)

44% Have at least 1

application in cloud

today(4)

70% Will have at least 1

application in cloud in

next 12 months (4)

Paid Applications in the Cloud (5)

IaaS, PaaS, SaaS & Storage(6)

Page 6: Making the Cloud Concrete

Page 6 © 2011 Focus, Inc. All rights reserved.

Cloud Preferences – Today/Tomorrow

Private

24%

Hybrid

39%

Public

37%

• gCloud3

• VMware vSphere for SMBs / Go Pro

• Citrix CloudStack

• Eucalyptus Systems

• IBM WebSphere CloudBurst

Appliance

• Nebula

• RYO

• …

• BTP TeraCare

• Intel AppUp Small Business

Service Catalog

• Egnyte/Netgear ReadyNAS

• Amazon Virtual Private Cloud

• EMC Mozy

• CA ARCserve D2D on Demand

• SkyTap

• …

• Amazon AWS

• Rackspace

• Microsoft

• IBM SmartCloud

• Zoho

• Hostway

• Google Apps

• NetSuite

• Salesforce.com

• … Convergence

& Cross-over

12% 21% (7)

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Page 7 © 2011 Focus, Inc. All rights reserved.

• Getting what you want

• Watching what you’ve got

• Making things work together

• Keeping stuff secure

• Managing your data

• Dealing with mobility

With Opportunity There is Challenge

Page 8: Making the Cloud Concrete

Page 8 © 2011 Focus, Inc. All rights reserved.

• The rise of the “Four Nines” (And even 100% SLAs…)

• Understand the fine print

• Think “preservation” vs “agreement”

• Where to focus • Responsibilities

• Availability

• Accessibility

• Data consistency and integrity

• Security

• Performance

• Recovery

• Then pay attention…

SLAs

Suggested reading: How to Establish Service Level Agreements,

A Handbook by Naomi Karten

(8)

Good

Not

so G

ood

Page 9: Making the Cloud Concrete

Page 9 © 2011 Focus, Inc. All rights reserved.

• You can’t live in a “Ronco” world

• Market is continually catching up

• Keys for SMBs • Don’t erase economic benefits

• Focus on mission critical

• Monitor performance and consumption

• Err on the side of too much data

• Choose SaaS-based and third party

solutions

Monitoring (and Metering)

Raw Infrastructure

Hypervisors

Virtual Machines

Middleware

Applications

Data

Security

SaaS/PaaS

Page 10: Making the Cloud Concrete

Page 10 © 2011 Focus, Inc. All rights reserved.

LotusLive

Workday

NetSuite

HyperOffice

Zoho

Google Apps

Office365

SMB Suite

All Business Web

Industry Specific

REST

SOA

XML

XPDL

XBRL

RYO

Apigee

Mashery

Layer7 Technologies

Delta Cloud (Apache)

Programmable Web

Vendor Specific

Netflix

Facebook

PayPal

Google

Kayak

Amazon

Queplix

Boomi

Vordel

Cast Iron

MuleSoft

SnapLogic

Jitterbit

--------------------

WebSphere MQ

BizTalk Server

Sterling Commerce B2B

Tibco ESB

JBOSS ESB

CORDYS/iWay

Jive Software

SocialText

GXSRollStream

Central Desktop

AppsOnCloud

Integration

“All-in” “Connect the Dots” “Alphabet Soup” “Get on the Bus” “Aggregate”

Consistency

Lower Maintenance

Vendor Lock-In

Vendor Survivability

Flexibility

Portability

Higher Maintenance

Technology Survivability

Trade-Offs

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Page 11 © 2011 Focus, Inc. All rights reserved.

Security

“Who is most responsible for ensuring the security of

cloud resources provided by cloud providers?” (9)

• Interesting dichotomy • Cloud = better protection!

• Who is responsible?

• Key challenges for SMBs • Adjusting corporate policy

• Defining roles and responsibilities

• Landing on a strategy for identity

management and access control

• Establishing a risk mitigation and

damage control process

• Picking the right tool(s)/service(s)

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Page 12 © 2011 Focus, Inc. All rights reserved.

• Slower adoption rate (3%-12%) • Growing to 30% in 2011

• Average of 4 data protection

tools(10)

• Key challenges with data in the

cloud: • One more data management solution

• Real time data performance

• Exacerbation of unstructured data

problem (e.g., email retention)

• Data (im)mobility

• TCO Alert

Data Management

Page 13: Making the Cloud Concrete

Page 13 © 2011 Focus, Inc. All rights reserved.

“Within 2-3 years, 25%-35% of business users

will employ a mobile smart phone device

exclusively and abandon use of a fixed line

phone.”

J.Gold Associates, Technology Trends for 2011

Mobility

• The “mobile enterprise” = IT architecture “reboot”

• Smart (or desperate) IT managers will push this

problem to the cloud

• Enterprise sales are still product focused

• Reaction time will be short

• TCO Alert

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Page 14 © 2011 Focus, Inc. All rights reserved.

• Positive impact on TCO for SMB FOBO

• Product and engineering deployments still unknown

• Lots of solutions

• It’s not rocket science

• But it’s not “set it and forget it” either

• Gaps between expectations and reality

• Still some “gotchas” waiting out there

• Focus on what serves your business, not micro-analysis

In Summary…

Page 15: Making the Cloud Concrete

Page 15 © 2011 Focus, Inc. All rights reserved.

(1) AMI Partners – Worldwide Cloud Services Study

(2) SpiceWorks – State of SMB IT April 2011 Report (n=3,000+)

(3) IBM - Inside the Midmarket: A 2011 Perspective (n=2,112)

(4) MarketBridge – Customer Cloud Adoption Report – January 2011 (n=1,000)

(5) Microsoft/Edge Strategies – SMB Cloud Adoption Study December 2010 (n=3,258)

(6) Baseline Magazine, May/June 2011 – Speeding to the Cloud (n=757)

(7) Future of Cloud Computing – 2011 Survey (n=417)

(8) Baseline Magazine, May/June 2011 – Speeding to the Cloud (n=757)

(9) Ponemon Institute LLC - Security of Cloud Computing Providers Study – April 2011 (n=127)

(10) STS Associates – Small Companies, Big Challenges: Data Protection in the SMB Market (n=58)

(11) SpiceWorks – State of SMB IT April 2011 Report (n=3,000+)

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