Ten Myths of Cloud Computing. Gene Eun Sr. Director Product Marketing, Cloud September 29, 2014

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2 Ten Myths of Cloud Computing Gene Eun Sr. Director Product Marketing, Cloud September 29, 2014 Oracle Confidential Internal/Restricted/Highly Restricted

3 Safe Harbor Statement The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described for Oracle s products remains at the sole discretion of Oracle. Oracle Confidential Internal/Restricted/Highly Restricted 3

4 Understanding Cloud We ve Come a Long Way Or Maybe Not In a recent survey of over 1,000 adult Americans: 51% believe stormy weather can interfere with cloud computing 54% think they hardly or never use the cloud, but 95% use online shopping, banking, file sharing 22% admit that they ve pretended to know what the cloud is 59% believe the workplace of the future will exist entirely in the cloud Source: Wakefield Research

5 Myth #1: Everything Will Go to the Public Cloud

6 Private Cloud: Fastest growing! % of company computing workload 52% 37% 35% 47% Now Two Years 12% 15% Non-Cloud Private Cloud Public Cloud Source: Computerworld Strategic Marketing Services, February-March 2014 Cloud Survey 6

7 Myth #2: You re Either Cloud or You re Not

8 Cloud Is an Evolution Traditional Silos Consolidated Private Cloud Public Cloud Hybrid Cloud Physical Dedicated Heterogeneous Virtual Shared Standardized Self-service Auto-scaling Metering & chargeback Specialized Shared Standardized Federation across public & private Interoperability Cloudbursting Start with consolidation Extend to private cloud Use public cloud where appropriate

9 Myth #3: Clouds Are One Size Fits All

10 Service Provider Service Provider Consumer Consumer Service Types: IaaS, PaaS, SaaS Different Users IT Professional Developer Business End User Customizations Customizations Customizations Application Application Platform IaaS Cloud PaaS Cloud SaaS Cloud Key Driver Consolidation Cost Savings App Development Focus New Capability Speed

11 Deployment Models: Private, Public, Hybrid, Managed Hybrid Cloud Private Cloud Public Cloud Managed Cloud

12 Myth #4: Virtualization = Cloud =

13 Virtualization vs. Cloud What s the Difference? Virtualization = Software that manipulates infrastructure, enabling one server or network act like many Cloud = Service-based computing model providing selfservice, elasticity, shared resources, and pay-as-you-go

14 Consolidation at PaaS and IaaS Layers Consolidate onto standard, shared and elastically scalable PaaS App App App App App App PaaS PREFERRED: Reduced operational cost, complexity and application development time Consolidate onto shared IaaS without standardization App App App IaaS Unchanged operational cost and complexity Reduced cost of hardware, power, cooling

15 Oracle Database 12c First Database Designed for Cloud Multiple Pluggable Databases in shared Container Database Isolation and multitenancy More efficient resource utilization More efficient administration manage many as one Easy to provision, move, clone, upgrade No application changes

16 Myth #5: Reducing Cost Is the Biggest Benefit of Cloud

17 Cloud Benefits Cost Savings Elasticity Speed

18 The Promise of Enterprise Cloud Which benefits of cloud are most important to your organization? 88% Better Use of Resources 87% Lower Capital Expense 89% Greater Business Agility 87% Rapid implementation of Business Models 81% Fewer Operational Issues Source: Computerworld Strategic Marketing Services, February-March 2014 Cloud Survey

19 Myth #6: Clouds Run on Commodity Components

20 From Best-of-Breed to Engineered Systems Best-of-Breed System Elements Optimized Solutions Engineered Systems Customer integrated Predictable, lower risk guided deployments Extreme performance, efficiency

21 Myth #7: Cloud Will Lock You In

22 Cloud Is About Choice, Value and Flexibility It was important for us to work with a vendor that offered Whether it's onpremise, or whether it's a managed service, or whether it's software as a service, depending on our business circumstances, that answer changes. And it might change over time, as well. - Mark Schissel, SVP and CIO Herbalife

23 Complete Deployment Choice Deploy Anywhere Same Architecture On Premises (Private Cloud) Same Standards Same Products Oracle Cloud (Public Cloud ) Transparently move workloads between On premises and Public Cloud 23

24 Cloud and the Challenge of Lock-In Does Your Cloud Stack Up? Built on industry standards Applications available across public and private clouds and onpremises No application code changes when moving between clouds Open, robust APIs for easy data access Look for standards-based solutions, portability of apps, and data accessibility

25 Myth #8: Cloud Is All Pay-Per-Use

26 Cloud Pricing Varies Widely Sample Metric Pay Per Use (Variable Cost) Per compute hour Per GB stored Per API request Per GB bandwidth etc. Subscription (Fixed Cost) Per seat per month Pros/Cons More flexible, less predictable cost More predictable costs, less flexible Best For Temporary environments (e.g. Dev/Test) Significant workload fluctuations Long-lived applications Steady-state workloads Use Cases Dev/Test environments, retail websites, social apps Core business apps (ERP, CRM, HCM, etc.) Choose a pricing model that best fits your situation

27 Myth #9: Public Clouds Are Not Secure

28 Organizations Can Often Improve Security With Enterprise-Grade Public Clouds Do It Yourself Limited security resources & expertise Challenges meeting regulatory requirements Security audits & assessments not performed regularly, if at all Outdated hardware/software Oracle Cloud Dedicated team of cloud security experts Compliance with global regulatory & industry standards Regular third-party security audits & assessments Automatic hardware/software updates Not all cloud security is equal Understand your cloud provider s security practices

29 Myth #10: Choose Best of Breed Clouds for Every Need ERP IaaS (custom app) CRM HCM

30 Integration with Multiple Specialized Clouds Know the Potential Challenges Survey of 1,355 business managers: 54% experienced staff downtime due to integration problems with their cloud apps 52% missed business deadlines because of poor integration of cloud apps from multiple vendors 75% had innovation initiatives stunted by integration problems with cloud apps and related workflows 64% were unable to integrate their cloud apps with other enterprise apps Consider the challenges of integrating multiple clouds Source: Independent market research conducted by Dynamic Markets in May 2013; Cloud for Business Managers: the Good, the Bad and the Ugly.

31 Oracle Cloud: Complete Suite of Integrated Services Data Services DaaS for Sales DaaS for Marketing DaaS for Social Social Data & Insight Application Services Global Human Resources Talent Management Sales Marketing Service Enterprise Resource Planning Enterprise Performance Management Platform Services Database Database Java Developer Mobile Documents Analytics Integration Backup Infrastructure Services Storage Compute Messaging Identity

32 10 Cloud Myths 1. Everything will go to the public cloud 2. You re either cloud or you re not 3. Clouds are one size fits all 4. Virtualization = Cloud 5. Reducing cost is the biggest benefit of cloud 6. Clouds run on commodity components 7. Cloud will lock you in 8. Cloud is all pay-per-use 9. Public clouds are not secure 10. Choose best of breed clouds for every need

33 Summary Myths about cloud computing continue to abound don t buy into them! Do your homework and understand your cloud options and how each impacts your business By making the right choices, cloud computing can offer your business choice, value and flexibility

34 Join the Conversation #OracleCloud Learn more: Try now: oracle.com/cloud cloud.oracle.com/tryit

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