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3 Just as there are different segments of cloud computing, there are also 4 different types of PaaS. There may actually be more in the future. There are new developments in cloud computing every day. But we can narrow down most PaaS services to four different types of platforms right now, today. Computing Platforms Traditional computing needs have not gone away. Businesses still need bandwidth, storage and data processing services. Instead of buying bundled services, you can contract for individual applications for your computing needs. Flickr is an example of photo storage that allows you to store your photos in one location and it is delivered as a PaaS. Web applications Some services allow you to use applications through APIs. For instance, YouTube and Twitter would be two popular examples of web applications as PaaS. Business applications More and more we are seeing business applications showing up to handle the computing needs of clients in a variety of ways. These could include industry-specific applications or generic business applications such as database technology, web conferencing or voice over internet telephony. Social applications Did you really think we d leave out social media? There are a number of social applications that allow you to integrate into your websites, either on the public end or the back end. Examples include Facebook, Ning and BuddyPress. PaaS is a powerful way to manage your company technological needs and it allows small businesses to compete on a level playing field with large corporation 3

4 Like platform-as-a-service, infrastructure-as-a-service (IaaS) comes in all different shapes, sizes and colors. There are at least 8 different types of IaaS providers, maybe more. Here are the types of IaaS providers that I can count off the top of my head. Computing IaaS providers that providing computing services give you the ability to compute via remote hook ups and other types of over-the-net connectivity services. Enterprise IT - Many large companies with gynamic computing needs look at enterprise solutions. Rather than own their own hardware they can outsource the infrastructure to house their internal applications. Cloud Storage This may include storage, backup and continuous data protection. Test/Development Some IaaS providers specialize in delivering the ability to test and develop new applications. They provide the space you need for your testing. It s a lot like a virtual lab. Resource Sharing Becoming more common, resource sharing allows companies with similar goals or computing needs to share the expense, the maintenance and the infrastructure. Telecom Virtual PBX, VOIP and other Internet telephony services. High Performance Computing Also called supercomputing, HPC refers to using computers for large scale statistical computations. It s no coincidence that the 10 largest HPCs in 2010 all run on Linux. Wholesale Vending Also called reselling or affiliate marketing. One company resells the infrastructure-as-a-service offerings of another. IaaS is a growing segment of cloud computing and more and more service providers are entering the playing field every day 4

5 Global spending on SaaS (software as a service) will rise 17.9 percent this year to $14.5 billion, according to figures released Tuesday by analyst firm Gartner. SaaS market growth will remain strong through 2015, when spending on the software is expected to hit $22.1 billion, according to Gartner. The spending rise is attributable to greater familiarity with how SaaS works, growth in related PaaS (platform as a service) offerings, and IT budgeting considerations, Gartner research director Sharon Mertz said in a statement. SaaS products are typically sold via subscription, allowing companies to avoid large up-front licensing fees and capital costs. North America is the most mature and largest SaaS market, expected to generate $9.1 billion in revenue this year, compared to $7.8 billion last year. Western Europe's SaaS spending will generate more than $3.2 billion in 2012, up from $2.7 billion in In the Asia-Pacific region, for which Gartner excludes Japan, SaaS revenue will jump from $730.9 million in 2011 to $934.1 million this year. Japanese companies will spent $495.2 million on SaaS this year, compared to $427 million last year, Gartner said. SaaS sales in Japan will be driven by CRM (customer relationship management) and collaboration software, "which already have actual demand," Gartner said. The 2011 earthquake has also raised interest in SaaS there as a possible defense against such natural disasters, according to the analyst firm. SaaS spending in Latin America this year will be $419.7 million, compared to $331.1 million in 2011, Brazilian and Mexican companies will account for the majority of sales, with CRM, procurement and ERP (enterprise resource planning) applications the most popular choices, Gartner said. Meanwhile, Eastern Europe, the Middle East and Africa remain "small and emerging markets overall" with "ongoing infrastructure challenges," Gartner said. 5

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8 Emergent Complementary to Focussed Broad Integrated Single focussed solution; new to market Supply complementary technologies or services cloud providers e.g. Most IaaS providers are either complements of Amazon or direct competitors Have limited (one or two) service offerings Three or more solutions, supporting multiple programming languages, deploy multiple O/S tends to be traditional providers, e.g. HP, IBM, CSC, CapGemini, Accenture, etc Enterprise customer cloud solutions that enable the customer to create a seamless, integrated architecture 8

9 Community Successful vendors will develop and nurture a community around their public clouds. A community is critical to build the tools, software and knowledge required to enable broader adoption. Communities will typically drive the creation of critical bindings for different languages, and build the knowledge base (e.g. books, articles, blogs, forum discussions) that will be used by the subsequent waves who follow them into the cloud. 9

10 Community Successful vendors will develop and nurture a community around their public clouds. A community is critical to build the tools, software and knowledge required to enable broader adoption. Communities will typically drive the creation of critical bindings for different languages, and build the knowledge base (e.g. books, articles, blogs, forum discussions) that will be used by the subsequent waves who follow them into the cloud. 10

11 innovating everything from services, features, pricing, and go to market models. Innovate or die is the mantra in the battle for the public cloud, and playing catch up in sure way to lose. Many Cloud providers offer a SaaS service that quite frankly end up being a loss leader for them, particulary if tey bring in large global providers where the revenue share could be as low as 20% of the action. Autonomy The public cloud represents a disruptive innovation which will need independence to grow and thrive. In larger companies, this will require incubation with autonomy and P&L responsibility. Value Added Services Once public cloud vendors achieve the basic building blocks - elastic compute, block storage, object storage, load balancers, databases - differentiation will be based on their ability to deliver new value-add services. The initial services will likely focus on value-add services on top of the IaaS compute and storage infrastructure, that can be used as higher level building blocks in applications (e.g. distributed memory caches, search, storage as a service). This is where vendors will achieve their greatest differentiation, as well as their largest margins. 11

12 Cisco sees cloud adoption as a journey The journey starts with increasingly capable pubic cloud services and private cloud platforms for the enterprise From there, new APIs and protocols, virtual private clouds services, hybrid cloud capabilities and open standards for cloud will appear and evolve over time The eventual goal, from Cisco s perspective, is an open, public cloud networking infrastructure, which we call the Inter-Cloud 12

13 As we look to the future, Unified Computing will help you lay the foundation for cloud computing technologies and architectures that will enable increasingly portable workloads and handle IT resources as a dynamic, automated utility that can be provisioned across all platforms. These abilities are the foundation that will enable you to offer robust, pay-asyou-go utility services and, eventually, cloud computing services. 13

14 As we look to the future, Unified Computing will help you lay the foundation for cloud computing technologies and architectures that will enable increasingly portable workloads and handle IT resources as a dynamic, automated utility that can be provisioned across all platforms. These abilities are the foundation that will enable you to offer robust, pay-asyou-go utility services and, eventually, cloud computing services. 14

15 Why are Customers Adopting Cloud? 15

16 Exercise : Business Drivers This is a quick brainstorming session for everyone together to identify business drivers and reasons why their customer s might want to adopt cloud services. Page 16

17 Exercise : Business Drivers Sample answer. 17

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