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Cloud TCO: Numbers and Lessons
Bernard GoldenCEO, HyperStratus
Who is Bernard Golden?
2
CEO: HyperStratus, A Silicon Valley Cloud Consultancy
20+ years experience in large IT shops, enterprise software, global consultancy, venture capital
Virtualization and Cloud Computing Advisor, CIO Magazine
Author, “Virtualization for Dummies,” two forthcoming books on cloud computing
What’s my cloud TCO?
Silicon Valley Education Foundation
• Purpose: Better education in Silicon Valley• STEM focus
• Key issue: teacher collaboration
Infrastructure Options
External Hosting Provider Virtualization Amazon Cloud
Single machine, subject to outages
Adds redundant hardware, virtual machine migration
Removes hardware from equation
Growth requires additional equipment, still subject to outages
Growth requires additional equipment,
still has SPOF
Growth is accommodated by
additional EC2 instances
No additional skill development required
Significant skill development required
Modest skill development required
Lessonopoly Cloud TCO Savings
Single Server Multi-Tier HorizontallyScaled
55% 57% 55%
Common Challenges in TCO Analysis
• Understanding current IT cost structure
• Forecasting future application load/traffic/storage
• “One version of the truth”
Unexpected Lessons Learned
• “If it’s not one thing, it’s another” -- Emily
Litella
• “It is difficult to get a man to understand
something when his job depends on not understanding it.” -- Upton Sinclair
• Cloud scalability offers real-world benefits
Additional Resources
• Lessonopoly white paper: Card with “LWP”
• HyperStratus “Application Security Best Practices in AWS”: Card with “Security”
• Follow me on twitter: bernardgolden