Cloud Computing Trends, Examples & What s Ahead

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1 Cloud Computing Trends, Examples & What s Ahead Mike Klein President, Online Tech June 21, 2010

2 Cloud Computing Defined One Definition: On-Demand Computing Elastic & Scalable Rapidly Provisioned Virtualized Resources

3 What Does This Mean? Real Life Examples: Testing OTPortal Snapshot production server in minutes DB Server Add resources w/ no maintenance window RAM, CPU, Disk becomes mouse clicks vs. hours SaaS clients spin up new servers in minutes vs. hours days on physical servers Recover backed up servers in minutes Full disaster recovery test in <1 hour vs. days

4 Cloud Computing Spectrum Private Cloud Hybrid Cloud Managed Cloud Public Cloud Dedicated/Single Tenant High Availability Dedicated/Auditable Security Compliant SOX, PCI, HIPAA Plug & Play Multi-Tenant Cost Driven Utility Model Limited/Shared Security Compliance? Programming APIs

5 2011 Cloud Trends 1. More Confusion (Not Less) 2. Computing as a Utility on the Low End 3. Managed Clouds Emerge 4. Enterprises Adopting Private Clouds 5. Security & Compliance 6. Disaster Recovery

6 More Confusion (Not Less)

7 Low End Compute as Utility Amazon Leading Charge for Cheap Computing Public Cloud Computing Designed for Commodity Pricing Non-Redundant Hosts Non-Persistent Storage No Failover/Availability Support Only Programming to Leverage Lock in vs. Open API s Spot Pricing Market

8 Managed Cloud Emerges A More Secure, High Availability Option High Availability Managed Cloud Computing High Availability, N+1 Infrastructure Slice of a Private Cloud VMware Enterprise version N+1 Hosts, Storage & Security Automatic Failover Full Mix of Managed Services

9 Enterprises Adopt Private Clouds Single Tenant, Dedicated Private Cloud Yankee Group: 67% Prefer Private Cloud Security & Compliance Are Major Drivers More Cost Effective for Most Enterprises Complete Architectural Control Dedicated Data & Network Security PCI, HIPAA, SOX Compliance

10 Security & Compliance Security Concerns Are Significant 51%: Security #1 Reason Not to Cloud Highlighted by Recent Breaches Google Gmail Sony Play Station Cignet Health Care - $4.3M HIPAA fine #1 Driver to Private Cloud Single Tenant, Dedicated Network & Data Security

11 Disaster Recovery

12 Private Cloud Example Secure PCI Compliant Cloud High Volume Financial Processing & Consumer Bill Payment Application Self-Service Payment Kiosks High Growth Company National Customer Base Security if Paramount Requirements: PCI Compliance Highly Secure Network & Data Control Dedicated Hardware 27 Servers Scalable Add Servers with New Clients

13 Pay-Ease Private Cloud The Pay-Ease Kiosk Payment Cloud Municipalities rely on Pay-Ease to manage transactions with a high level of security, privacy, and compartmentalization Secure private cloud manages routing of payment transactions from kiosks Real-time monitoring of each kiosk Interfaces with multiple payment gateways, and other private clouds Compliant to the Payment Card Industry Data Security Standard (PCI DSS)

14 Pay-Ease Private Cloud Solution: OT Private Cloud PCI Certified Hardware Stack 2 Hosts with 25 Virtual Servers 2 Dedicated Servers Dedicated SAN Storage HA Threat Mgmt & Cisco Firewalls New Servers Online in <1 hour Offsite Backup for D/R 38% Less than Dedicated Servers 79% Less for Each Additional Server Cisco Firewalls (HA) Threat Mgmt (HA) Network Inspection & Logging Web Application Firewall 2 Server Hosts 25 Virtual Servers SAN

15 What s Ahead? 1. Continued Growth in Cloud Computing 2. Separation between Men & Boys in Hosting 3. Compliance moves to the Shared Cloud 4. Growth in Outsourced Private Clouds 5. Colo isn t going away

16 Growth in Cloud Computing Source: Tier1 Research

17 Cloud Growth Drivers Lower Total Cost of Ownership Higher resource utilization No Capital Expenses Provided by Cloud provider Deploy Projects Faster Provisioning in minutes vs. weeks Scale as Needed Add resources when needed Sea Change in DR Options Faster RTOs, Lower Cost

18 Raising Hosting Standards Auditing Standards Are Getting Tougher SAS 70 -> SSAE 16 -> SOC2/SOC 3 SOC 2/SOC 3 Separates the Serious Players Expect Shake Out in Public Cloud Market 100 s + Amazon, Google, Microsoft, Rackspace, Regional Players Lead in Private & Managed Clouds Hands-on, Face-to-Face Support High Trust Business

19 Shared Cloud Compliance Private Clouds are Compliant 100% dedicated 100% architectural control Auditors Will Get Comfortable with Shared Clouds Virtualization Shared SAN Managed Clouds will Win Here Dedicated Firewall Options Higher Control than Public Clouds

20 Growth in Outsourced Private Clouds Cap-Ex Free Clouds Hardware Refresh Shared Expertise Free Resources for Higher Value Add

21 Colo Still Growing Colocation isn t going away Strong underlying value proposition Toe in the Water Test Trust & Comfort

22 Wrap Up Welcome to the World of Cloud Computing Which Cloud is Right for You? Private Cloud Public Cloud Managed Cloud Key Issues to Consider: Security Compliance Availability The Cloud Changes Disaster Recovery Rules