This document discusses how cloud services are driving new requirements for IT solutions as more users, devices, and data come online by 2015. It introduces Intel's hybrid cloud vision to help channel partners offer cloud-like flexibility to customers while keeping their data on-premise for security and control. Examples are given of how partners can generate recurring revenue through managed service offerings that leverage Intel's hybrid cloud platform and catalog of applications.
1. Staying Relevant
in the new era of
Cloud Services
Vikas Aditya
Director of Strategy and Partnerships
Intel® Hybrid Cloud
May 6th, 2011
2. By 2015…
More Users More Devices More Data
>1 Billion More >15 Billion >1 Zetabyte
Netizen’s1 Connected Internet Traffic3
Devices2
Internet and device expansion drives new requirements
for IT solutions
1. IDC “Server Workloads Forecast” 2009. 2.IDC “The Internet Reaches Late Adolescence” Dec 2009, extrapolation by Intel for 2015 2.ECG “Worldwide Device Estimates Year 2020 - Intel One Smart Network Work” forecast 3.
Source: http://www.cisco.com/assets/cdc_content_elements/networking_solutions/service_provider/visual_networking_ip_traffic_chart.html extrapolated to 2015
3. India: Changing face of Internet Use
17.9M Internet 274M Wireless
Subscribers1 300
Subscribers1
20 274.05
Subscriber Base (M)
Subscriber Base (M)
250
213.81
15
7.6
200
7.25
7.41
177.87
7.42
7.42
150 149.03
10 127.04
100
10.31
9.47
8.77
7.82
5
7.21
50
0 0
Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10
Quarter ending Quarter ending
Narrowband (< 256Kbps)2
Broadband (>= 256Kbps)
• Digital music sales @ CAGR of 24%. Rs. 3B in 2013
• Online advertising @ CAGR of 32%. Rs 20B in 2013 India at an
• Mobile gaming @ CAGR of 36%. Rs 12B in 2013
• Mobile banking > Rs.340 M by 2015 Inflection Point
1. TRAI-Jan 2011
4. “Cloud” to play a major role in growth
$44B
Global IT
spending
“#1 Technology
on cloud Trend for 2010”
(IDC estimates, 2009) Gartner
$17B “Cloud computing + Services
in India = $1B by 2012”
Gartner, Zinnov Consulting
2008 2013
Cloud Computing is Here … But How to benefit from it?
5. What is Holding Back the Cloud Today?
Technology Maturation Acceptance of Risk
Lack of control for
Security
sensitive data
Availability of Availability and
Applications QoS guarantees
Broadband speeds Interoperability
and costs and lock in
6. What does market want?
I want to utilize
IT for improving
productivity.
I want to control
costs. Pay as
you go is good.
I am worried
about security
in the cloud.
I don’t have My business is I have
differentiated transactional, recurring
products, mar margins are revenue but
gins are very declining cost of delivery
low is very high
Break/Fix Provider Managed Service SMB End
Reseller Provider Customer
7. Intel® Hybrid Cloud Vision
SMB End Customers
Customers get cloud like flexibility with
peace of mind of on-premise data
Software Partners
Able to deliver software on a subscription
basis with no costs and w/o software rewrite
Channel Partners/MSPs
Remain in control of their customers while
increasing their revenue and margins
8. Intel® Hybrid Cloud Platform
Services ↘ Entire solution offered on a monthly
subscription basis
Break Fix Help Desk Cloud Backup ↘ Usage based pricing enabled by Intel
secure activation & usage monitoring
Intel® Hybrid Cloud Catalog
Microsoft Tally Intuit ↘ Growing catalog of software
applications from industry leaders
Astaro Vembu GFI
Fonality LPI … ↘ Indirect Sales model
Intel® Hybrid Cloud Server
Offer cloud advantage with confidence
Multiple Xeon® based
hardware options with
Intel® VT, TXT, AMT • Generate profitable recurring revenue streams
technologies • Sell multiple offerings from rich catalog
• Enhance/Differentiate with your own services
8
10. What Users are Saying
“The solution is “fantastic & slick.” Love “The solution is the reason we won our
the remote access and monitoring with new customer, CA Tax Education Agency.
AMT. It is very clear how our clients will Same day deployment, pay as you
benefit from the Hybrid Cloud offering.” go, data in the office. No one else could
do that.”
Eric Johnson, co-founder Vital Networks MSP
Chris Jackson, President, Rowy Networks MSP
We found this solution a great fit for our target customer base and that
we can provision the entire solution remotely keeping our costs of IT
delivery low”
Kamlesh Patil, Ockam India
10
11. Tally Office Appliance
on Intel® Hybrid Cloud
Harsha Vardhan
Head Strategic Alliances.
Tally Solutions
11 Intel Confidential
12. POWER OF SIMPLICITY
• Market leader in ERP solutions in India with 92% market segment share
• Strong Base of 2M+ Users
• Target market of 8M+ users with Tally ERP 0.9 Gold
Tally customers are looking for
Complete Solution that is Simple
Tally Office Appliance
Managed remotely by solution provider with
Intel® Hybrid Cloud
Secure and keeps my data protected
12
13. Summary
• Growth in Cloud computing is transforming business models while some
concerns remain for partners and end users alike
• Intel delivering hybrid cloud platform to enable channel partners to offer
profitable services and generating recurring revenue
• Join the Intel® Hybrid Cloud program to get early mover advantage
www.intel.com/go/hybridcloud
13
In the next 5 years, there is significant growth expected in the number of connected users, range of devices, and explosion in data. We will add a billion more people to the internet (total of 2.5B). We estimate 15 billion connected devices and visual data growth over 10 times in size increasing the data footprint across the internet to >1000Exabytes!This will create exciting new experiences. What those new experiences will mean for you as a consumer and employee is that everything you want your technology to do “just works.” The impact for leaders of the IT business and developers of those new services will be opportunities to deliver business capabilities around those “just works” experiences for users and customers.But that “Just works” experience with data and services will pose some daunting infrastructure challenges in terms of efficiency, security and resource capability that need to be addressed.
100 m Internet User in India.India – 4th Largest Internet Using Country in the World.
Slide Purpose: Discuss the Trend of Cloud Computing … Address any concerns of HypeKey Messages: According to a 2009 IDC report, global IT spending on cloud is expected to grow from $17B (2008) to $44B (2013). The growth of the cloud infrastructure expected to grow at a 25%+ CAGR over the next 3 years (IDC 2009). Gartner has identified Cloud Computing as the Number 1 Technology Trend for 2010. Cloud Computing and the usage models it brings is changing the way we inside Intel IT look at our architecture: from the client technology to the data center infrastructure. As a result, we have adopted a multi-year enterprise cloud computing strategy within Intel Information Technology to build an enterprise private cloud architecture to support Intel’s business However, many IT professionals talk to consider it hype. Others are not sure what to think. Regardless, the Cloud is on the top of our minds and the confusion around it begs the question … “What, exactly is Cloud Computing?” “Is It Important?” “Is It Real?” “What Does It Mean to Me?” “ Is It Beneficial?” we will explore these questions throughout this material today. Additional optional speaking points: Cloud computing is an evolution of IT that delivers IT resources in a flexible, pay as you go model. From an end user perspective, cloud-based services need to provide the illusion of infinite resources, sense of ownership and security and dictate a pay-as-you model. Both internal (behind corporate firewall) and external (via public internet) clouds offer the potential for highly flexible computing and storage resources, provisioned on demand, at theoretically lower cost than buying, provisioning, and maintaining more fixed equivalent capacity. The core element that makes something a “cloud” is the architecture of the underlying compute, network and storage in the datacenter. Cloud architecture - cloud services & data reside in shared, dynamically scalable resource pools, often times being virtualized (e.g. Amazon EC2), and/or based on scale out applications (e.g. Google search). Some visible examples/usages of cloud computing are listed below: Rapid deployment: rather than spending days or weeks deploying an infrastructure / new service, be up and running in a matter of hours. One example is New York Times. Using Amazon EC2 and S3, the newspaper processed and published >11 million public articles in <1 day. For more info - http://open.blogs.nytimes.com/2007/11/01/self-service-prorated-super-computing-fun/Scalability: End users expect cloud services to scale based on their needs. To address this requirement, cloud service providers are deploying and provisioning a vast number of new servers and infrastructure. A notable example is Facebook. Facebook has grown to >350M users, serves up 600k photos/second, and 3.5 billion pieces of content are shared per week among users. They have scaled to 30k servers total, ramping up 20k servers in <18 months.. More info check out - http://www.datacenterknowledge.com/archives/2009/10/13/facebook-now-has-30000-servers/Efficiency: Efficiency is a key focus of cloud service providers as they need to balance power & operational, along with capex costs with the need to ramp quickly to enable new services. In fact, today power consumption alone is about 25% of the TCO costs of the internet datacenter. One example of a company driving extreme efficiencies is Microsoft. Microsoft has driven several initiatives to improve datacenter efficiencies. Microsoft has been able to scale their server utilization rates from 20 to 80 percent while not quadrupling their power consumption. Their infrastructure scales without driving massive power consumption increases. Learn more - http://www.globalfoundationservices.com/documents/MSFTTop10BusinessPracticesforESDataCentersApril09.pdf
But there are several challenges to the ramp of cloud services and environments, both technology related and also business and IP related. Technology maturationSecurity / privacy is a major concern– once data is off premise in the cloud, it may be easier to access by criminals, spies or competitors. Today’s cloud services providers do not offer extensive guarantees or remedy in case of data breachLack of automation – to drive greater efficiencies and there is a need for more flexible, automated resource pools that scale dynamically to manage service level agreements, enable workload migration from server to server, and be more power aware to migrate workloads based on power consumption. This level of automation is still evolving. Power efficiency – IDC is projecting datacenter power and cooling costs to grow at 8X faster than spend on new servers. Even greater levels of power efficiency are needed - across servers, racks, and entire datacenters - to improve TCO and keep a lid on power costs. Acceptance of risk IP protection – relating back to security, the need to protect core intellectual property, a company’s “crown jewels”, is of paramount importance to many companies. Interoperability and lock in – for cloud to be truly realized to provide for more automation, shared and dynamic resources and federation of multiple cloud environments together in a seamless way requires interoperability and standards based hardware and software. There is a lack of standards today to address the needs for interoperability. Governance may be an issue – public clouds are the least transparent externally sourced service delivery method, storing and processing data externally in multiple unspecified locations, often sourced from other unnamed providers and containing data from multiple customersQuality of service is not guaranteed – few public cloud providers offer any reassurances on continuity of service, mean time to repair or data recovery, meaning services are unreliable for mission-critical applicationsCompliance/audit becomes complex - For example, public cloud service providers could migrate data to another country where power is cheaper, but regulation laxer. Who will own the legal responsibilities for data management, data retention, record transparency and accounting accuracy as required by many regulatory agencies? To date, no major cloud offering company is willing (or financially able) to provide the kind of assurance and insurance that would be required for large companies to take this risk
5.4m SMBS in urban areas alone and looking for growth in productivity using IT. 26M unregistered SMEs. Low IT penetration
Intel will evolve our products and technologies over time to address usage requirements from organizations like the Open Data Center Alliance among other IT end users. We will collaborate with our OEM and ISV fellow travelers to enable solutions to address key challenges as IT transforms to next generation cloud datacenters. The overall goal is to enable more secure, efficient, and simplified cloud datacenters built on open, flexible platforms and solutions. Here are some examples of usage models and technologies we are already working on for our future roadmap:Efficient Performance:Better Performance/$/Watt – Cloud is all about gaining efficiencies from scale and increased utilization. Intel will continuously improve the cost/performance and energy efficiency of our platform as we understand this is a fundamental part of IT purchase criteria.Improved Instrumentation and Control – New hardware instrumentation and controls for utilization, performance, power, thermal, and security credentials to provide better visibility into server status and health and help improve operational efficiency of datacenters with Intel-based servers. Automation:Dynamic workload placement – Intel is working with leading cloud service providers and ISVs to integrate our new instrumentation & controls into their cloud operating environments to facilitate more intelligent workload placement decisions based on real-time performance, power, and thermal data.Common policy & asset management – IT wants to be able to manage their infrastructure using the same tools and polices regardless of the system vendor. Intel will continue to work with our industry partners to address this as we have done in the past with standards like IPMI and DCMI.Trust and Compliance: Trusted Compute Pools – Security is one of the top concerns from enterprise customers holding them back from embracing cloud services. We will provide technology solutions they can trust to give them the confidence to embrace cloud. Secure migration & federation – Protecting virtual machine integrity as they migrate across and between data centers.Networking:Unified fabrics – Intel believes that every server should have access to networked storage for free. That’s why Intel® Ethernet 10G adapters support NFS, iSCSI, and OpenFCoE as standard features starting today.Cost-effective network scaling – With distributed applications and virtualization, compute is increasingly done across many server nodes. Intel is expanding our platform architecture to address how server nodes cost-effectively communicate with each other, storage, and the network.Storage:Scale-out storage – Low-cost, high-capacity storage tier focused on lower $/GB for archival data sets like old photos, videos, documents.Proximity based storage – Performance oriented Storage in or near the Compute Node (DAS, SAN or NAS) focused on fast retrieval of hot datasets and active VM images.
Intel will evolve our products and technologies over time to address usage requirements from organizations like the Open Data Center Alliance among other IT end users. We will collaborate with our OEM and ISV fellow travelers to enable solutions to address key challenges as IT transforms to next generation cloud datacenters. The overall goal is to enable more secure, efficient, and simplified cloud datacenters built on open, flexible platforms and solutions. Here are some examples of usage models and technologies we are already working on for our future roadmap:Efficient Performance:Better Performance/$/Watt – Cloud is all about gaining efficiencies from scale and increased utilization. Intel will continuously improve the cost/performance and energy efficiency of our platform as we understand this is a fundamental part of IT purchase criteria.Improved Instrumentation and Control – New hardware instrumentation and controls for utilization, performance, power, thermal, and security credentials to provide better visibility into server status and health and help improve operational efficiency of datacenters with Intel-based servers. Automation:Dynamic workload placement – Intel is working with leading cloud service providers and ISVs to integrate our new instrumentation & controls into their cloud operating environments to facilitate more intelligent workload placement decisions based on real-time performance, power, and thermal data.Common policy & asset management – IT wants to be able to manage their infrastructure using the same tools and polices regardless of the system vendor. Intel will continue to work with our industry partners to address this as we have done in the past with standards like IPMI and DCMI.Trust and Compliance: Trusted Compute Pools – Security is one of the top concerns from enterprise customers holding them back from embracing cloud services. We will provide technology solutions they can trust to give them the confidence to embrace cloud. Secure migration & federation – Protecting virtual machine integrity as they migrate across and between data centers.Networking:Unified fabrics – Intel believes that every server should have access to networked storage for free. That’s why Intel® Ethernet 10G adapters support NFS, iSCSI, and OpenFCoE as standard features starting today.Cost-effective network scaling – With distributed applications and virtualization, compute is increasingly done across many server nodes. Intel is expanding our platform architecture to address how server nodes cost-effectively communicate with each other, storage, and the network.Storage:Scale-out storage – Low-cost, high-capacity storage tier focused on lower $/GB for archival data sets like old photos, videos, documents.Proximity based storage – Performance oriented Storage in or near the Compute Node (DAS, SAN or NAS) focused on fast retrieval of hot datasets and active VM images.