Gold rush, what gold rush?

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1 Gold rush, what gold rush? The truth about the cloud... Ditlev Bredahl, Linkedin.com/in/ditlev/ Facebook.com/ditlev/

2 My Hosting CV Been in the hosting/service provider biz since 96 Last 6 years as CEO of UK2Group Built several large hosting brands: VPS.NET, 100tb.com, Resell.biz and others Made 10+ acquisitions in the industry Been through 3 exits Latest one: UK2Group sold for ~$77 million Now founder and CEO of OnApp.com Largest cloud platform provider in the industry

3 OnApp in 5 mins Cloud, CDN and Storage software platform 110% service provider focus (hosts, telcos, MSPs) ~2,000 deployments across +500 service providers +30% market share +1,000 VMs set up every day on OnApp 120 people, 80% with background from ISPs HQ in London, Support in USA, Dev in EU+Asia Spin-out of UK2 Group in 2011, after exit to Lloyds Solid base: +$20m in funding from external investors

4 Our products

5 a complete cloud platform for service providers

6 fully-featured turnkey platform Public, private, VPS Utility & plan billing Autoscaling Load Balancing Tiered storage DNS Users Self-service Failover IOPS Free support VMs Smart servers Bare metal One CP

7 instant global scale for your clients Build your own CDN No CAPEX Monetize capacity 160+ locations more than Amazon & Microsoft CDNs

8 federated marketplace clouds 600+ providers 160+ PoPs 50+ countries No commits, no infrastructure required

9 distributed SAN for cloud providers Uses local storage in HVs VM-aware, smart disk Optimized for cloud workloads Cloud storage, solved. SANity at last!

10 OnApp product range Server deployment SAN platform VM & Cloud Management DC management DNS platform Chargeback & Billing CDN platform

11 Midsize/Large hosters, xsps, telcos Concerned about AWS Focus on: Time to market OnApp typical client case Low entry barriers, both financially and resource wise Compatibility and interoperability with existing products/workflows Initial deployment = cloud Eventually full DC management

12 A few of our clients

13

14 The 3 phases Phase 1 Cloud was for early adopters Cloud was not sold on features or use cases, but on hype Quite often, cloud was not cloud but just rebranded old technology Phase 2 Cloud is commoditizing Cloud providers are being squeezed on margins, with lower pricing and higher CPAs Cloud product now defined, and scale becomes important Phase 3 Cloud is no longer the cloud, but just how stuff is done... Cloud is the underlying infrastructure below most public/private service offerings Battles for clients are fought outside of the cloud - cloud is boring...

15 Phase 1

16 My colleague, Carlos Rego, at WHD 2011: Start your cloud today you ll make millions!!

17 Some of you did.

18 Phase 2

19 My keynote last year: Cloud is commoditizing think about CDN as well

20 We kind of helped commoditize it. Sorry. But we ll make it up to you

21 Phase 3 You can take your cloud and smurf it!

22 The 3 phases Phase 1 Cloud was for early adopters Cloud was not sold on features or use cases, but on hype Quite often, cloud was not cloud but just rebranded old technology Phase 2 Cloud is commoditizing Cloud providers are being squeezed on margins, with lower pricing and higher CPAs Cloud product now defined, and scale becomes important

23 Today (random order) Think workload, not infrastructure Go beyond cloud Be afraid of AWS Don t be afraid of being cannibalized Build partnerships, work with ecosystems Find your niche, and be best at it

24 Setting the scene

25 Gold panners Early adopters First mining operations No more easy pickings Gold companies Diversified into other minerals 1849 Gold rush Service providers Industries built around the rush

26 Who got rich? Same opportunity Same beard Most people made very little A small number got very rich

27 The first movers and the smart movers

28

29 Cloud IaaS market 70% CAGR

30 Dedicated server market 5% CAGR

31 Shared hosting market 7-9% CAGR

32 So, why no cloud gold rush? #1...

33

34 AWS vs. YOU 4,5 4 3,5 3 2,5 2 1,5 1 0,5 0 AWS Everyone else Rackspace 2013 IaaS revenue ($bn)

35 Cloud is probably the largest commercial opportunity in the history of our industry. And we left it to a bookshop?

36 What is key to your offering? Pricing? Support? Ease of use? Uptime?

37 Amazon sucks at all that Support: best efforts or pay up Pricing: download a spreadsheet and use newvem.com to ensure you are not loosing out Ease of use: Go ahead and use our API or pay rightscale for a GUI

38 Amazon sucks at all that

39 Books are written about it!!

40 AWS even ruined Rachel s Christmas

41 And they re still stealing your clients. Why?

42 Scale

43 Geographic reach

44 Product breadth

45 Why no cloud gold rush? #2...

46 Why did you build a cloud? (It s what everyone else was doing?)

47

48 Just do what you do best.

49 So, why no cloud gold rush? #3...

50 Did you treat cloud as a new business?

51 If so, you re thinking in

52 Cloud is still a small factor Cloud (IaaS) out of total SP/Hosting Everything else IaaS

53 Your typical clients spend Clients usage of IaaS vs. other services Everything else IaaS

54 So If your cloud only does this You re losing out on up/cross sales for all of these services

55 Time for a rethink.

56 Workloads don t care about your infrastructure! They just want to work

57 Design infrastructure around what matters most - your client workloads. Not the other way around.

58 Cloud Servers

59 CDN and traffic management Application/Workload layers UI / API layer Shared Servers Dedicated Servers Smart Servers Cloud Servers External OnApp clouds via OnApp federation market Your OnApp clouds External IaaS providers External software stacks

60 Imagine if

61 You could deploy anything, anywhere at anytime.

62 Cloud Smart Dedicated Shared CDN PaaS SaaS Anything

63 Across your own DCs Anywhere Across other OnApp powered DCs Across other non-onapp powered DCs Across AWS/Azure/Softlayer/etc

64 Anytime Let your workloads redistribute automatically to match usage Autoscale across DCs, cities, countries and continents Without worries about CAPEX, reserved infrastructure etc

65 One pane of glass

66 Sidenote: Cannibalism not a problem!

67 OnApp helps service providers become successful cloud providers The SAN designed for cloud providers Instant global scale for your customers A complete platform for cloud providers

68 OnApp powers clouds in a third of the world s countries 600 customers 67 countries 2,000+ clouds deployed Hosters, telcos, xsps

69 And we re building the world s largest federated cloud Global scale for your clients Fully managed service No capex pay as you go 157 PoPs, 40 countries

70 Our vision Your Cloud

71 Thanks! Come to the OnApp stand and chat. Ditlev Bredahl, Linkedin.com/in/ditlev/ Facebook.com/ditlev/

72

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