Cloud Management

Cloud Strategy Dos and Don’tsOctober 30, 2012

Watch the video of this webinar

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Cloud Management

Your Panel TodayPresenting• William Fellows, VP of Research, 451 Research• Josh Fraser, SVP of Business Development, RightScale

Q&A • Greg Goodwin, Account Manager, RightScale

Please use the “Questions” window to ask questions any time!

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Agenda

1. Current Trends in the Cloud Landscape – William Fellows

2. Cloud Strategy Dos and Don’ts – Josh Fraser

3. Interactive Q&A Discussion

Unique combination of research, analysis & data

Published syndicated research on emerging markets

Daily qualitative & quantitative insight Analyst advisory, support Global events Go-to-market support

4

Early-Adopter Program

12 years working with early adopters and innovators Cloud is a logical endpoint Shining a light on the arc of adoption 250+ enterprises have participated across many verticals

Profound economic uncertaintyDo more with less

Consumerization of ITNew models around IT-as-a-Service

A Perfect Storm

What is happening?

Faster, more flexibly, more devices Virtual first cloud first? Proxy for IT transformation The new normal CIO: Chief Innovation Officer

Proliferation of monolithic

clouds

Vertically integratedand cloud ecosystems

Horizontally federated –brokering,

marketplaces

Cloud Computing Evolution

Internet of Things

Cloud Market Evolution

So Where’s it Raining?Growth trends, market forecast

Cloud Market Overview – Revenue ($bn)

2010 2011 2012 2013 2014 2015$0.0

$5.0

$10.0

$15.0

$20.0

$25.0

$30.0

$35.0

$1.7 $3.0$4.8

$7.1$9.7

$12.8 $9.4

$12.4

$15.9

$20.1

$24.5

$29.3

Cloud Computing Cloud Computing + Enterprise Apps SaaS

CAGR44%

CAGR44%

Estimated 2012 Cloud Revenue Breakdown by Subsector – Total $4.8bn (260+ vendors)

Source: 451 Research Market Monitor (Data Cut 8/20/12)

51%

21%

28%

IaaSPaaSSaaS - Infrastructure

Segment Vendor CountIaaS 129

Compute & Storage-as-a-Service 123Stand-Alone Cloud Storage 9

PaaS 73PaaS from SaaS 12Stand-Alone PaaS 33Application Lifecycle Management as a Service

31

Pre-Producion/Testing 18Integration as a Service 13

SaaS-I 87Online Backup 20Cloud Achiving 10IT Management as a Service 64

Systems & Network Monitoring & Management

44

Resource Utilization, Capacity Planning & Billing

16

IT Service Management 10

IaaS Market Overview ($m)

Amazon’s market to lose 2011-2015 CAGR: 49%

Source: 451 Research Market Monitor (Data Cut 8/20/12)

AmazonRackspace Verizon BusinessCSCSoftLayer TechnologiesOthers

2010 2011 2012 2013 2014 2015

$681$1,397

$2,444

$3,755

$5,169

$6,826

Cloud As-a-Service 2012 Revenue by Vertical: 260+ vendors

Source: 451 Research Market Monitor (Data Cut 8/20/12)

29%

16%16%9%

6%

7%

17%Technology & Telecom

Financial

Government & Education

Healthcare

Manufacturing & Automotive

Retail & Consumer

Other (Media, Transportation Food & Beverage, Oil and Gas, Real Estate)

Where We Are with Cloud Adoption

Corporate cloud computing: current cloud usage

Corporate Market: Current Public Cloud Computing UsePercentage of Respondents Whose Companies Currently Use Application that Run on Cloud Computing Services

Jul 2010

Oct 2010

Jan 2011

Apr2011

Jul 2011

Oct 2011

Jan 2012

Apr2012

Jul 2012

0%

5%

10%

15%

20%

25%

30%

35%

11%

14%

17%17%

19%

22%22%

29%32%

Development and Test

Application Servers (Non-ERP, Non-email)

CRM

Custom-built Applications

Business Continuity and/or Disaster Recovery

Human Capital Management

IT Systems Management

Productivity/Collaboration

Unstructured Data and Storage Retrieval

Online Transaction Processing (OLTP)

Batch Workload Execution

Structured Data Storage and Retrieval

Financial Management Software

ERP

34%

39%

41%

43%

48%

49%

49%

50%

52%

54%

55%

57%

61%

64%

58%

53%

34%

49%

35%

30%

44%

41%

44%

39%

36%

38%

29%

26%

5%

5%

10%

6%

16%

12%

5%

6%

5%

7%

9%

5%

8%

8%

3%

3%

14%

2%

1%

8%

1%

2%

1%

2%

2%

Dedicated Physical Private Cloud ITO/Hosting Public Cloud

Current State of Application Deployment

For each of the following, what percentage is deployed on the different service delivery platforms?

Dedicated Physical

Private Cloud

ITO/ Hosting

Public Cloud

90% of Workloads Remain In-House…

Planning

Phase in Journey to the Cloud

n=68

Implementa-tion

Operational Strategy

Assessment of Cost/Benefit

IT Audit Identification No Plans

47%

21%16%

6% 6% 4%

38%

4%

35%

4% 3%

15%

Internal Private CloudExternal Public Cloud

Pain Points Moving to the Cloud

Internal Private Cloud Pain Points*

OtherNone

Legacy ApplicationsMaturity

Migration/IntegrationNetwork

ComplianceLicensing

StorageAutomated Provisioning

AutomationLack of Internal Process

Reliability/AvailabilitySecurity

ComplexityInternal Resources/Expertise

Pricing/BudgetPerception and Internal Resistance

Management

16%2%2%2%2%2%3%3%3%5%5%5%5%5%6%6%

18%19%

42%

External Public Cloud Pain Points*

Other

Internal Resources/Expertise

Interoperability

Licensing

Hybrid Cloud – Lack of Interoperability

Pricing/Budget

Reliability/Availability

Lack of Control

Compliance

Management

Network

Perception and Internal Resistance

Security

12%

2%

2%

2%

3%

7%

8%

10%

12%

12%

12%

12%

69%

Left Chart, n=62; Right Chart, n=59. *Note that due to multiple responses per interview, total may exceed 100%.

As you move to an internal private cloud infrastructure what are the two greatest pain points?

As you move out to the external public cloud, what is or what do you expect to be the two greatest pain points?

Cloud ComputingIndustry Profile - 1H ‘12

What does Multi-Cloud look like?

On-premise, DIY

Co-location

Managed Hosting

Multi-tenant Public Cloud

Private Cloud

Multi-Cloud, Hybrid Cloud

Where are we with Hybrid Cloud?

ChangeWave – July 2012:32% report their company currently uses Public cloud Software as a Service (SaaS) – 66% Infrastructure as a Service (IaaS) – 32% Platform as a Service (PaaS) – 32%23% report their company currently uses Private Cloud

8% report their company currently uses Hybrid Cloud

TheInfoPro: Top Cloud-related Projects

What are your organization's top two cloud-related projects in the next 12 months?*

n=62. *Note that due to multiple responses per interview, total may exceed 100%.

OtherDisaster Recovery

Internal Hardware ExpansionMigration

New Data CentersCloud StorageHybrid Cloud

Internal Cloud MigrationManagement

Internal ManagementInternal Storage

Public Cloud ImplementationCloud Email

SaaSPublic Cloud Assessment

Internal Cloud

15%2%2%2%2%

3%3%3%3%

5%5%

8%10%

15%27%

42%

Is your company incorporating a multi-cloud strategy into your cloud choices and usage?

RightScale Cloud Market Survey, May 2012

Plumbing in a Multi and Hybrid Cloud World

CloudburstingBest Execution VenueCloud services brokeringCloud brokerage, marketplaceCloud federation – vertical markets, PaaS ecosystemsAvoiding lock-in, de-risking – portability, standards, integration

PaaSification

ISVs get it – packaging, integration, mobility Marketplaces, value creation Polygot programming: developers Continuous development/delivery vs traditional models Private PaaS = benefits of PaaS avoiding the business and

technical risks that come with public cloud computing. Black Box: Private PaaS allows IT departments to retain control

of security and performance characteristics and provide developers with an agile environment

Enterprises look to private PaaS as a lever to standardize application infrastructure.

PaaS as the underlying model for apps built for cloud?

But

Hosted PaaS is automated vendor lock-in

Too many aaS Way down CIO’s ‘to do’ list

IT as a Service - what could happen?

IT departments won’t be needed IT costs will diminish Less complexity Technology will become perpetual services,

not sell and forget Dominant players will change Incumbents will be forced into acts of

desperation The IT vending machine: providing a self-

service utility to your users is entirely possible

Cost Center to Service Provider

Enterprise IT Journey: Cost Center to Service Provider

Life sciences: Amazon IaaS, hybrid cloud

Goal: To become an internal cloud hoster and service provider using public/private clouds, featuring self service, best execution venue

Business challenges: Save money. Not build new

datacenters More predictable cost model Time to results, market Get benefit of public clouds

internally

Cloud solution: Multiple apps, users and groups

for near-term, raw capacity on EC2 Using VPC tactically for massive

scale Testing cloud on-ramps to EC2

and others clouds (IT ops) Testing private cloud (IT ops)

Trader Media: Cloud service delivery template

Goals: Project Spitfire to drive service delivery model Develop new revenue lines faster Reduce datacenter requirement Replace with OpenStack, Citrix hybrid

within 3 years

Business challenge: Provisioning is slow so use RightScale

and Amazon to spin up new sites Remain agnostic PaaS? Looking at roll-your own rather

than hosted lock-in Got burned in Amazon’s Dublin 2011

outage

Business benefit: Cost management Scale up/back and in multiple geos DevOps – no versioning Consolidate management ops

Cloud Management

Cloud Strategy Dos and Don’tsJosh Fraser – SVP of Business Development, RightScale

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Strategy Decision, not a Purchase Decision

• Do understand the new imperatives

• Don’t limit your thinking to just one cloud – deploy

your app on the resource pool best-fit for its specific

set of requirements

• Do focus on what you do best – avoid cloud DIY

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RightScale: Our background

More Applications

More than 4.5 million servers launched

At Production Scale

Cloud deployments with 10K+ servers

On More Clouds

12 supported public and private cloud providers, now including Windows Azure

Since IaaS began

Managing cloud deployments globally for 6 years

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Our A-Z Roster of Customers

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Shifting Expectations Drive New IT Imperatives

Increasing Agility

• Internal customers expect instant on• Driving use of public cloud outside of IT No-Wait IT

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Shifting Expectations Drive New IT Imperatives

Increasing Agility

Rapidly Evolving Landscape

• Internal customers expect instant on• Driving use of public cloud outside of IT

• Shift to cloud shakes up vendor landscape• Heterogeneity is the norm• Vendor lock-in drives SW prices up

No-Wait IT

Workload Liberation

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Shifting Expectations Drive New IT Imperatives

Increasing Agility

Rapidly Evolving Landscape

Unprecedented Scale

• Internal customers expect instant on• Driving use of public cloud outside of IT

• Shift to cloud shakes up vendor landscape• Heterogeneity is the norm• Vendor lock-in drives SW prices up

• Explosion in apps, data, users• Mobile, social and big data increase scale• IT needs to do more with less

No-Wait IT

Workload Liberation

IT at Scale

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No-Wait IT Expands Market Opportunities

Business Opportunity

Market Window

Time to Market

$£¥€

✖

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No-Wait IT at QuestRequirements: • Compliance and BAA• Self Service, API driven• Hybrid Cloud

Solution:• Built self-service HashBang UI on

RightScale • Use multiple clouds to power

Quest apps

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Workload Liberation Preserves ChoiceMulti-Cloud filters

• Geography• Cost• Performance• Features• Compliance• Security• Existing vendors

Internal Private

ExternalPrivate

Public

"Hybrid IT is the new IT and it is here to stay.”

Gartner

Cloud Management Platform

App

App

App

App

App

App

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Workload Liberation at IHG

Solution: • Host Chinese customer website• Rapid elasticity using auto-scaling• Consistent configurations for

development, test, and production

Requirements: • Public and private clouds• Geographic reach• Scalable provisioning

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Users

IT at Scale Requires Curating Chaos

Data Apps

More users on more devices

More interconnected applications

More data collected, stored and analyzed

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Requirements: • Rapid provisioning• Unknown demands• PCI compliance

Solution:• Reproducible artist sites• Scalable architectures• Ecosystem of ISV vendors

IT at Scale at Sony Music

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Don’t Fall Into the DIY Trap

• Most clouds are a set of APIsand/or a simple UI to launchservers – is that what you need?

• These are basic building blocks, not a management system• How should you spend your time?

• Managing multiple users with different levels of access• Configuration management and app lifecycle management• Track usage and costs across applications and business units• All the general purpose things you need to do like: Monitoring, Alarms,

Auto-scaling, etc

What do you do about IT or development personnel unilaterally opening a cloud account and deploying an environment?

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RightScale Cloud Management

MultiCloud PlatformManage public, private, and hybrid

clouds

Configuration FrameworkProvision servers and execute scripts

with consistency

Automation EngineMonitor, alert, auto-scale, and

automate operations

MultiCloud Marketplace™Access cloud-ready, customizable

ServerTemplates™

Governance ControlsControl access and security, track

usage, and access logs

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Automate previously labour intensive tasks, helping to reduce IT operation costs and deliver faster

Empower users to “serve themselves”— removing IT from the critical path of the service delivery

Reduces complexity and variability by using standard workloads which ensures consistency with each application and service deployment

Self Service

Management Automation

Workload StandardizationW

ork

forc

e L

evera

ge

Increased server/admin ratio and delivers benefits of scale— even if deployed globally

Drives reduced capital requirements

Centralized Management

Smarter VirtualizationC

apit

al Le

vera

ge Retains visibility into resource allocation and

line of business usage on a real-time levelUsage Metering

Cloud Management Gives the CIO “Leverage”

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Cloud Management

Worldwide

Geo-Redundant

GuaranteedReliability

Diverse OS Support

Governance

Multi-Cloud

One-click Deployment

Templatized Workload

Low Cost

Automation

Better Together

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Getting Started and Q&A

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RightScale.com/Azure

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