Cloud Computing Business Models

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Cloud Computing Business Models

• Antonio Piraino Tier1 Research

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Topics Covered

• What is Cloud Computing?
• Who are the major players Cloud Services?
• What are SMBs and Enterprises asking for?
• What are Managed Hosting Providers doing?
• How Managed Hosters use virtualization
• Top Managed Hosting Cloud Players
• Tomorrows Winners and Losers

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Defining all of this, Cirrus-ly

• Real-time accessible Computing infrastructure
• Access by 3rd party Public Cloud
• Access only by you Private Cloud
• Platform supports apps/services/storage
• Constant availability and SLAs
• Order/provision from anywhere
• Scalable on the fly (up/down)
• Easy Web management interface
• Security/privacy
• Pay per use

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Cloud Computing is IT as a Service
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Cloud Apps Web 2.0, SaaS, Remote apps

• Remote desktop applications
• Run on top of underlying cloud infrastructure
  platforms
• SaaS providers
• Run on top of underlying cloud infrastructure
  platforms
• CRM, ERP, VoIP, BI, supply chain
• Web 2.0
• interconnectivity and interactivity of
• web-delivered content
• New Services exploiting underlying platforms

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Clouds Grid, IaaS or PaaS?

• PaaS
• ERP,DB,XML files, flat files,web services,
• on-demand apps, SaaS hoster, APIs,
• load balancing, DNS configuration, storage
• IaaS providers
• Proxy for buying servers, software,
• data center space or network equipment
• Pay for memory, bandwidth, storage consumed
• Grid has many definitions
• Network of computing clusters
• Resources used in parallel
• as a virtual super-processor

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Topics Covered

• What is Cloud Computing?
• Who are the major players Cloud Services?
• What are SMBs and Enterprises asking for?
• What are Managed Hosting Providers doing?
• How Managed Hosters use virtualization
• Top Managed Hosting Cloud Players
• Tomorrows Winners and Losers

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Amazon Web Services

• Cloud is pricing scheme for developers
• EC2
• Uses Xen, supports open Solaris, and Windows
  Server
• Rely on APIs (REST, SOAP) for developer apps
• User defines resources charged per compute hour
• Wraps into Amazon Web Services
• SimpleDB store, index, query a system
• Simple Queue Service (SQS)
• Simple Storage Service (S3)
• Flexible Payment Service (FPS)
• CloudFront CDN

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Google AppEngine

• Dev tool for Web apps on Google infrastructure
• Does not operate in stand-alone mode like EC2
• Developers hand over code Google checks request
  logs, monitor status of app, push new versions,
  integrate pieces
• Compete with MS/AWS
• BigTable vs. SimpleDB and MS SSDS
• DataStore distributed storage with query engine
• Limited to Python no PHP/Ruby
• Access to Other Apps
• Google Sites (collaboration) and Google Apps
• APIs into Google Earth, Maps, Images, OpenSocial,
  etc

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Azure and Force.com

• Microsoft Azure Service Platform
• Leverages existing Microsoft Services as a bundle
• Live Services, SQL Services, .NET Services,
  Sharepoint Services, Dynamics CRM Services,
  Visual Studio
• Developers build PC, Web and mobile applications
• Run apps between client, Azure, datacenter
• Salesforce.coms developerforce.com
• ISV and Developers Framework
• APIs available but idea is to develop on
  Force.com
• App Exchange rapid onramp objects with
  dragdrop
• Database services, storage, packaging, tools

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Topics Covered

• What is Cloud Computing?
• Who are the major players Cloud Services?
• What are SMBs and Enterprises asking for?
• What are Managed Hosting Providers doing?
• How Managed Hosters use virtualization
• Top Managed Hosting Cloud Players
• Tomorrows Winners and Losers

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Use of cloud computing services
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Cloud computing vendors
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What cloud computing is used for
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Internet Applications

• What does the SMB need?
• Accounting, HR, file server replacement, CRM
• What does the mid-tier enterprise need?
• Custom databases, heavy storage, HR/accounting
  SaaS
• Heavy SaaS use More managed hosting
• What does the large enterprise need?
• More datacenter space
• Heavy storage and virtualization support
• More SaaS use
• Top unmet need managed virtualization

4th Annual Hosting Transformation Summit North
America 15-17 September 2008 The Mirage Hotel
Las Vegas, Nevada
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Top applications overall

• Top SaaS applications, now
• Messaging and Collaboration
• CRM and BI
• BPO and Productivity Apps
• Accounting system / ERP
• Top SaaS applications, 2012
• HR and accounting applications
• File server replacement
• Internet-based NAS/utility storage
• Project management and collaboration
• Shared databases

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Topics Covered

• What is Cloud Computing?
• Who are the major players Cloud Services?
• What are SMBs and Enterprises asking for?
• What are Managed Hosting Providers doing?
• How Managed Hosters use virtualization
• Top Managed Hosting Cloud Players
• Tomorrows Winners and Losers

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Evolution of Managed Hosting Sector
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Hosters Cloud Services Currently Offered
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Hosters Largest users of Cloud services
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Hosters What do Customers need from you
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Hosters Customer challenge to Cloud
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Hosters Your challenges in move to Cloud
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Topics Covered

• What is Cloud Computing?
• Who are the major players Cloud Services?
• What are SMBs and Enterprises asking for?
• What are Managed Hosting Providers doing?
• How Managed Hosters use virtualization?
• Top Managed Hosting Cloud Players
• Tomorrows Winners and Losers

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Virtualization Technologies

• Type 1/Bare Metal/Hypervisor/x86 Server
• Best for dev/testing, virtual desktop, legacy
  server consolidation
• Virtualize access to hardware
• Each VM has a guest OS
• Less server sprawl
• Microsoft Hyper-V
• VMware ESX
• Citrix XenServer (Linux)
• Parallels Server
• Trango
• Sun xVM

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OS Virtualization Technologies

• Type 2/OS/Hosted
• Virtual access to a single-kernel OS less OS
  sprawl
• Good for well-powered datacenters, numerous apps,
  high workloads and SaaS
• Quick provisioning
• Parallels Virtuozzo Containers
• Sun Solaris Containers
• OpenVZ
• Unix chroot command
• Linux-VServer

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Virtualization Deployments

• Parallels
• Rackspace, ThePlanet, Enigmatec, Dedipower
• VMware
• Verizon, BT, ATT, Savvis, Terremark, SunGard,
  Mosso (Rackspace)
• XEN-based
• FlexiScale, Novells Suse, Neocleus, Citrix,
  Amazon AWS
• Microsoft HyperV
• Layeredtech, SoftLayer, CrystalTech, HostMySite

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The Rackspace experience

• VMWare ( Parallels Virtuozzo)
• Overall Rationale for paying for
  Virtualization
• Significantly speedier provisioning
• Better restoration times
• Better uptime for end users
• Demand for qualitative features, flexibility and
  uptime
• Rackspace invested in training and certification

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Type 2 Virtualization Impact
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Type 2 Virtualization Impact
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New Virtualization features

• VMWare Lab Manager
• library of common configs for setup, capture,
  storage
• Site Recovery Manager
• Automated help to build, manage, execute DR
  plans.
• LifeCycle Manager
• Virtual Center
• Provision VMs, monitor performance, optimize
  resources
• Stage Manager
• Integration, testing, staging, UA testing, to
  production  
• VMware VMotion
• Live migration away from failing/underperforming
  servers
• B-Hive Conductor
• VCLOUD

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Type2 Automation

• Parallels Operations Automation
• OSS for server provisioning App management
  Service plan creation and management task
  delegation etc.
• Parallels Business Automation
• Storefront control panel for orders, accounts,
  billing, invoicing, trouble tickets, fraud
  control, Chargebacks
• Parallels Virtuozzo Containers 4.0
• Parallels Infrastructure Manager
• add-on web-based tool for Virtuozzo
• Parallels Plesk Control Panel
• Plesk Billing Software
• Signups Process Payments Provision Recurring
  Bill

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Topics Covered

• What is Cloud Computing?
• Who are the major players Cloud Services?
• What are SMBs and Enterprises asking for?
• What are Managed Hosting Providers doing?
• How Managed Hosters use virtualization?
• Top Managed Hosting Cloud Players
• Tomorrows Winners and Losers

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Top Managed Hosting Cloud Players

• OpSource On-Demand Connect
• Mosso (Rackspace) CloudFS, CloudFiles
• StrataScales Ironscale (RagingWire)
• FlexiScale (XCalibre)
• Terremark Infinistructure Enterprise Cloud
• Savvis Utility Services (Compute Storage)
• ATT Synaptic Hosting platform
• Layeredtech on-demand storage
• Peer1, SunGard Availability Services, NaviSite,
  Verizon Business, The Planet working on new
  services

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Mosso (RackScale)
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Flexiscale (XCalibre)
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IronScale (RagingWire)
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Topics Covered

• What is Cloud Computing?
• Who are the major players Cloud Services?
• What are SMBs and Enterprises asking for?
• What are Managed Hosting Providers doing?
• How Managed Hosters use virtualization?
• Top Managed Hosting Cloud Players
• Tomorrows Winners and Losers

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Hosters PaaS opportunities

• The Symbiotic Friend
• Utilize your PaaS/managed hosting services
• Integrated Security, Network, DB, Storage, SLAs,
  etc
• A higher level PaaS provider
• Offering API for automated application hosting
• Provide library of images and stacks
• Take away the pain of fostering startups that
  fail
• Other Partner Opportunities
• Storage (Nirvanix) Includes desktop backup
  software, file sharing, flash drive,Internet
  media file system
• ISV/Developers Front end, Back end, PaaS for you

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Pitfalls to watch for in Cloud Play

• Red tape
• Security
• Regulatory compliance
• SLA
• Availability
• Cost vs. in-house
• Legacies, appetite for change
• Hostile software licensing regime
• Hype, risk aversion
• Power, ownership, control, job security

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Future Winners

• Providers that Understand their target audience
• Cloud Services to SMBs, Enterprises, ISVs, or
  SaaS?
• Ride the new wave of Virtualization solutions
• Migrations, business process automation, consuls
• Chose to be an IaaS
• Appropriate visibility, analytics, OS, storage,
  DR, compute power, security, on demand billing,
• Or a Fully integrated Platform as a Service
• IaaS and billing modules, app troubleshooting,
  integration, ERP, Databases, XML files, flat
  files, web services, API availability, load
  balancing, DNS
• Or niche specialists
• Mobile or VoIP platforms

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Questions?Antonio Pirainoantonio_at_t1r.comwww.ti
er1research.com