Reed Smith October 17, 2012

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1 What Your Cloud Provider Won t Tell You Critical questions to ask when selecting a cloud provider Reed Smith October 17, 2012

2 Agenda 1. Introduction 2. Points to Remember 3. Use Cases 4. Savvis Cloud Savvis Proprietary & Confidential 2

3 Introductions Who am I? Reed Smith Savvis, Director of Cloud Services Who is Savvis? Global Cloud, Managed Hosting, Colocation and Network provider A division of Centurylink Founded global data centers including Toronto, Montreal and Vancouver Hosting enterprise-class workloads in all industries Financial, Consumer Brands, Government, Manufacturing, Software and SaaS, Life Sciences, etc. Savvis Proprietary & Confidential 3

4 The Cloud Revolution Cloud computing isn t revolutionary because it s changing the mode of technology delivery. The real revolution that is underway is that it is opening up new lines of business in information technology or service delivery even among non-it businesses. The biggest line item in [software startup] companies now is rent and food A decade ago, I don t think you could write a line of code for less than $1 million.... This applies to departments of larger organizations as well, by the way. Designing new products, without the need to go through corporate finance and IT approvals definitely is a great way to instill entrepreneurial spirit. Forbes, Cloud Computing May be a Shot in the Arm our Economy Needs, Bold added for emphasis Savvis Proprietary & Confidential 4

5 Leading Cloud Providers The Gartner Magic Quadrant for Managed Hosting The Gartner Magic Quadrant for Public Cloud Infrastructure as a Service Gartner, Inc., Magic Quadrant for Managed Hosting, Lydia Leong, Ted Chamberlin, March 5, Gartner, Inc., Magic Quadrant for Public Cloud Infrastructure as a Service, Lydia Leong, Ted Chamberlin, December 8, Gartner does not endorse any vendor, product or service depicted in our research publications, and does not advise technology users to select only those vendors with the highest ratings. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose. This Magic Quadrant graphic was published by Gartner, Inc. as part of a larger research note and should be evaluated in the context of the entire report. The Gartner report is available upon request from Savvis. Savvis Proprietary & Confidential 5

6 Why are you here today? What concept makes cloud appealing to you? Fast get computing resources fast Cheap only pay cents per hour Curious about this cloud fad Next Big Thing don t want to miss the boat Corporate Mandate Leadership telling you to look into cloud Flexibility easily manage and reconfigure vservers and storage Endless Capacity sick of running of capacity and long install times Other? Savvis Proprietary & Confidential 6

7 Cloud computing Cloud computing is like online music vs. CDs Not a new technology Usage-based billing Automatic delivery Minimal/no commitment Customer controlled service provisioning/ modification/termination Flexibility, low cost and instant scalability A new way to consume data center services Savvis Proprietary & Confidential 7

8 What Type of Cloud? SaaS pay for seats PaaS pay for transactions Hosted App or User Level Service Shared App Execution Environment Dedicated App Execution Environment Dynamic Control IaaS pay for usage Broad Infrastructure Abstraction Dynamic Sizing & Billing Management & Monitoring VM Service on Shared Infrastructure Lifecycle Control Granular Sizing Utility pay for resources Managed Hosting Fast Provisioning and Granular Billing Dedicated Blade in Shared Infrastructure Managed Servers Colocation Faster Provisioning Shared Infrastructure Savvis Proprietary & Confidential 8

9 Different kinds of clouds High Performing Clouds Highly reliable and available Wide range of security features Ease-of-use Monthly and hourly billing Full support available Multiple service level options Different service levels, bursting, verticals Hybrid hosting and cloud solutions Mass Market Clouds Developer image stacks and tools Minimal security features Lower SLAs Self-service/online support Single service levels, commodity platforms Savvis Proprietary & Confidential 9

10 Points to Remember 1. Add up all the costs (cheap means cheap) 2. Security matters 3. One size does not fit all 4. Do DIY right avoid unseen pitfalls Savvis Proprietary & Confidential 10

11 Mobile Phone Manufacturer Case 1 Add Up All The Costs Mobile Phone manufacturer wanted Cloud to enable test/dev workloads. Idle developers due to server downtime was expensive Deliver IT resources faster Grow Apps aligned with business demand Reliable cloud Billing varied with use Save money Savvis Proprietary & Confidential 11

12 Use Case 1 What They Found Some providers could build a cloud server fast, but difficult to build the environment around the server Read SLA s Had to buy double servers from some cloud prominent providers, due to no failover Some cloud providers could not reduce the size of a cloud server, once built or enlarged Many cloud providers will not pause billing Total cost adds up: bandwidth, scalable storage, IP addresses, OS license Savvis Proprietary & Confidential 12

13 Use Case 1 What They Did Chose a provider with a resilient platform and high SLA s Started small grew and shrank cloud server size and count with business application demand Parked cloud servers when not in use, only paid for storage when parked Ran in the cloud, refined configurations and cost along the way Savvis Proprietary & Confidential 13

14 Financial Services SaaS Provider Case 2 Security Matters Financial Services SaaS provider needed secure cloud they could segregate for each customer while still saving money Deliver IT resources faster Flexibility to scale with demand Security and compliance imperative 24x7 monitoring and support Save money Savvis Proprietary & Confidential 14

15 Use Case 2 What They Found Most dedicated cloud solutions required longer lead times Some providers term commit option has little flexibility commit to a specific config for years Less traditional security, no enterprise firewall, hardened hypervisor, network separation, security infrastructure transparency Support was reactive or just reading from a script Saving money was difficult once all costs were added in Savvis Proprietary & Confidential 15

16 Use Case 2 What They Did Chose a securely separated multi-tenant option with fewer fixed costs and real-time initial build Pursued a spend-level term commit option, to save money Selected a cloud with clearly defined Cisco security components along with next-gen security features Demanded proactive monitoring and support Designed a global solution in North America, Asia and Europe Savvis Proprietary & Confidential 16

17 Cable TV Content Provider Case 3 One Size Does Not Fit All Cable TV content provider needed general test/dev environment and production environment for bursts based on online content promotions, experiencing cloud sprawl Lower cost test/dev environment Cloning and parking Reliability key for online content Burstability for online content marketing promotions Savvis Proprietary & Confidential 17

18 Use Case 3 What They Found Low cost test/dev cloud becoming a commodity, performance and reliability vary, developers are not IT experts Many cloud providers will not park or pause billing Parking also nice option for burstability SLAs, platform stability and track records varying, reliability and consistency increased cost and complexity Support level must be homogenous with some cloud providers Term commits come with trade-offs Savvis Proprietary & Confidential 18

19 Use Case 3 What They Did Chose an affordable, easy-to-use intuitive interface for developers with cloning and parking Built a hybrid dedicated cloud for steady-state, public cloud for burst Deploying varying performance, SLA and support levels within the same cloud provider Spend-level term commit saves them 30% monthly Savvis Proprietary & Confidential 19

20 Systems Integrator Case 4 DIY, Avoid the Pitfalls Systems integrator considering building cloud for internal use and sale to end customers Next gen server virtualization Cut out cloud provider middleman Take advantage of planned scale Save money Savvis Proprietary & Confidential 20

21 Use Case 4 What They Found Competing platforms of cloud technologies causes confusion and uncertainty of standards Cloud requires extensive expertise in infrastructure hosting, systems integration and GUI/API management In-house clouds lack SLAs and third-party support Purpose built in-house clouds can save money In-house clouds require Capex spend vs service provider Opex Savvis Proprietary & Confidential 21

22 Use Case 4 What They Did Chose dedicated hardware running within a public cloud framework Building global locations with private network connectivity Exploring building a cloud portal using cloud APIs Save money vs capital investment to build out global sites Savvis Proprietary & Confidential 22

23 Don t Forget the Storage Look for flexible storage increments Understand use cases for different classes of cloud storage: Local storage SAN/Network storage Object stores Archival storage Snapshots Backup Storage performance also depends on cloud server performance Savvis Proprietary & Confidential 23

24 Points to Remember 1. Add up all the costs (cheap means cheap) 2. Security matters 3. One size does not fit all 4. Do DIY right avoid unseen pitfalls Savvis Proprietary & Confidential 24

25 Cloud Interface Example (Savvis VPDC) Savvis Proprietary & Confidential 25

26 Pulling It All Together Persistent cloud servers backed by an industry leading SLA Some mass market providers require buying 2 vservers in separate availability zones and more expensive storage to get an SLA and persistent images With a higher performing cloud your apps can do more with less, sometimes 3 or 4 times more Match your cloud performance and cost with application needs Some clouds give performance options from mass market cloud performance to enterprise-class cloud product performance Performance factors: storage ILM, network QoS, SLA, support, etc Mass Market clouds just force you to buy a bigger machine Some clouds bundle fundamental components eliminating nickel and diming Included: 95 th percentile bandwidth, scalable storage amounts, IP Addresses, ACLs, OS SLA/support, etc Savvis Proprietary & Confidential 26

27 PRESENTATION RESOURCES Gartner Case Study: Securing the Cloud Vanson Bourne Executive Research Report CloudHarmony Performance Benchmark Presenter Contacts: Reed Smith Florence Le Goff Savvis Proprietary & Confidential 27

28 Thank You Savvis, Inc. All rights reserved. Savvis is the registered trademark of Savvis Communications Corporation. 28

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