The VIRTUAL DATA CENTRE Company. Craig McLellan CEO and Founder
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1 The VIRTUAL DATA CENTRE Company Craig McLellan CEO and Founder 1
2 Agenda General IT Market Trends Cloud The good the bad and the ugly Opportunity ThinkOn Where we fit into the Cloud opportunity Questions/Comments 2
3 A quick Background Check Early Technology Entrepreneur Deployed first wholesale on-line backup service across North America and Europe ( ) 6 Technology acquisitions and 2 divestitures Latest effort as CTO of Hosting.com (3 deals > $ 85M in rev) Operated SunGard Hosting from Published ebook Essential Guide to Disaster Recovery and Business Continuity Planning There are two things I think about every day How do I make things simpler & Its all about the DATA 3
4 The Trend is Shifting Back Towards IT Taking Control of Cloud Initiatives (KPMG) Until recently end user departments were bypassing IT 65% of the time when buying cloud based services (network world) 4
5 The CIO is Under Significant Pressure Control: End user departments are bypassing IT departments 65% of the time when buying cloud based services (network world) Capacity: 90% of budgets are allocated to keeping the lights on with operations and maintenance Relevance: Very few IT Leaders are viewed as partners to the organization So What: This trend is starting to shift back in the US and UK due to data leakage and the affect of end-user turn-over. 5
6 Enterprise Virtualized vs. Cloudy Workload Today (2012) Cloud Based Virtualized Greater than 75% Greater than 50% Greater than 25% None Less than 25% 0% 5% 10% 15% 20% 25% 30% The GAP is Significant 6
7 Obstacles to Cloud Adoption Security is still a large obstacle. Sovereignty is a looming consideration Integration is the silent killer to large adoption 7
8 What Stimulates Cloud Adoption Today Data Explosion Organizations want value from their data instead of destroying it. Where do they store all this data? So What: Customers consider this data a valuable enough to keep but not valuable enough to consume production storage Equipment Refresh Window Average age of servers in SME today exceeds 3.5 years IT Budgets are not coming back Outsourcing where possible So What: A Hardware refresh is the most logical time to present the option 8
9 What Stimulates Cloud Adoption Today New Applications are Giving Way to Brown Field 1 in 3 mission critical applications outsourced to the cloud today. 1 in 2 by 2015 (network world). So What: Customers that have embraced Virtualization are most open to considering the option High Availability Many companies lack the second site necessary to enable real-time data protection. So What: Single site customers have no alternative to building high-availability solutions for their critical applications 9
10 Common Themes for Enterprises CHALLENGES MARKET TRENDS Lean IT Staff Lack of Internal IT Skills Tight IT Budgets Data Explosion Business Analytics Consumerization of IT Mobile Computing Virtualization and Cloud Computing Willing to sacrifice on some features to keep costs in line with budget expectations Buyer Preference towards providers with a simple portfolio of Services 10 Manifest Plainness. Embrace simplicity. Lao-Tzu ( BC)
11 But, As With Most Technologies There is no Single way to Deliver or Consume Cloud Services > 120,000 Customers & 12,000 other providers > 9.0M instances and growing 11
12 Public IaaS as Share of Hosting Market Cloud will Represent 53% of the Growth Through 2015 Total CDN Hosting Market, 2011 = $743 Million Public IaaS (3%) $ 22M Total CDN Hosting Market, 2015 = $977 Million Public IaaS (15%) $ 147M Remainder of market 97% Remainder of market 85% Source: IDC ICT Forecast, April 2012 Highlights By 2015, Cloud will represent most of the growth in the Infrastructure Outsourcing Market Public IaaS will account for 15% of the Hosting Market (though some dollars will be driven by larger ISO outsourcing activity) Private IaaS will carve out a significant portion of the Infrastructure Outsourcing Market 12
13 Canadian Public IaaS Forecast 65% CAGR Through 2015 $160.0 $140.0 $120.0 $100.0 $80.0 $60.0 $40.0 $20.0 $0.0 C$ millions Source: IDC ICT Forecast, March, IaaS Public Compute IaaS Public Storage 13
14 Criteria in Selecting a Hosting Vendor Lessons to Learn for Public IaaS Primary Reason for Selecting Your Hosting Provider Price Flexibility of service packages and options Technical expertise and certifications of the provider Service level agreement Provider's ability to integrate with our backend Provider's ability to bundle hosting with other Data center locations Large Medium Small Source: IDC, 2012 ITAP n7, N=302 Financial viability of the provider Percent Highlights Price remains key, but beginning to share the table with other factors Top 3 criteria, price, flexibility & expertise, far outweigh others Each segments has their own priority with mid market wanting expertise & large needing flexibility 14
15 Top Enterprise Opportunities for Cloud Disaster Recovery Best use case for real Infrastructure on Demand Shift majority of Costs to Post Event Dramatically simplify Effort to Test Data Archiving Single consolidation point for all Company Data Indexing/Searching workload is very bursty and well suited to on-demand capacity 15
16 What Really is Infrastructure as a Service 16
17 Its important to Understand Where this Service Fits Relative to Other Offerings 17
18 What s Under the Sheets COMPUTE HP Blade Chassis with Gx blades VMware ESXi 5.1 with vcloud PRODUCTION STORAGE Hitachi Data Systems Storage 10Gbit iscsi fabric OBJECT STORE Array of Servers with internal Storage Clustered using Scality s Object Storage Software NETWORK Juniper 10Gbit core network switching Edge Services is 1Gbit fabric ORCHESTRATION vcloud Director Think On Compass Meta Portal merges object store and vcloud into one Portal FACILITIES SSAE 16 Certified facilities Redundant Locations Multi-homed Internet feed with up to 10Gb of network throughput 18
19 To Summarize Cloud Infrastructure is in its Infancy in Canada You haven t missed anything and we can avoid a lot of the pitfalls experienced in the US and UK Vendor Jargon is going to Continue to Create Confusion Position yourself as a knowledge leader Cloud is About Flexibility, Responsiveness and Cost Control Yes, flexibility and Responsiveness can translate into lower TCO but not always Storage is the fastest growing component of the cloud eco-system 19
20 The VIRTUAL DATA CENTRE Company 20
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