Cloud Computing Realities - Getting past the hype and setting your cloud strategy Webinar hosted by Gomez, Savvis, & Forrester Research

Imad Mouline CTO, Gomez Bryan Doerr CTO, Savvis James Staten Principal Analyst, Forrester Research

Cloud Computing Realities: Getting Past The Hype And Setting Your Cloud Strategy James Staten Principal Analyst Forrester Research

“ Enough with the cloud-washing! What’s for real in the cloud?”

Definition: cloud computing
A standardized IT capability (services, software, or infrastructure) delivered via the Internet in a pay-per-use, self-service way

Three layers of cloud computing Software as a Service (SaaS) Finished applications that you rent and customize Platform as a Service (PaaS) Developer platform that abstracts the infrastructure, OS and middleware to drive developer productivity Infrastructure as a Service (IaaS) Deployment platform that abstracts the infrastructure

Enterprises cite flexibility and on demand over cost reasons

Three types of IaaS cloud platforms Source: See the April 2009 “Which Cloud Computing Platform Is Right For You?” report.

The first customers of cloud are not typical IT ops
Startups — developers using Web at scale
Web-based business, SaaS, collaboration services, widget providers, mobile services, and social networking
Small businesses — using SaaS
Online businesses, online presence, collaboration, and enterprise integration
Enterprises — developers and one-off projects
R&D projects, quick promotions, widgets, online collaboration, partner integration, social networking, and new business ventures
Firms — with compute intensive tasks
Overnight ad placement or transportation calculations

Development is ahead if IT ops on adoption

Security and maturity top list of concerns for IaaS cloud services

Cloud use trends
Web hosting — leveraging IaaS, PaaS elasticity to lower costs, accommodate spikiness
Application hosting — beyond Web pages; match the service consumption to the revenue line.
Test and development — function and scalability testing, some QA
HPC/technical computing — grid-based and similar workloads that need temporary scale
Collaborative computing — collaborative access to shared services, repositories, massive data sets
B2B, internal, shared service, commercial info services

What fits best
Best use: temporary capacity, elastic capacity
Web sites — three-tier architectures with minimal DB tiers.
SOA applications — with loose coupling of Web services; scale via load balancing and app-level caching.
Highly parallelized workloads — HPC w/o close coupling; grids, Hadoop
Applications that fit within a single VM — can be any type of self-contained x86 application

Early cloud examples
Indy500.com — streams live race footage and statistics
Wendy’s — Short-term, interactive promotional site for $0.99 menu.
USA.gov — Govt. information web site elastically scales
NASDAQ — Market Replay service
US Army — Testing troop vulnerability application on cloud platform
Eli Lilly — drug research
Harvard Medical School — developing genetic testing models
Sources: www.NASDAQ.com, www.espnfanzone.com, Indy500.com

What doesn’t fit in IaaS clouds today?
Anything subject to compliancy
Wait for best practices to evolve.
Includes PCI-compliant applications
Anything performance sensitive (other than Web)
Apps that call back to performance sensitive services in your data center
Apps that require tight coupling between instances
Sensitive clusters — Oracle RAC
Large applications — that don’t fit inside VMs

A game plan to consider The next 90 days
Start experimenting with public cloud platforms.
Endorse one or two public clouds and craft a “work-in-progress” policy for cloud use.
Start with non-critical applications, and move up the stack as you gain experience
Entire contents © 2009 Forrester Research, Inc. All rights reserved.
Start evolving towards an internal cloud
Shift to Strategic Right-Sourcing
Longer term

Applications to start with
Test and development
Functional and performance testing
But choose Web-, VM-ready applications.
Temporary and/or volatile Web sites
Marketing, collaboration sites are easiest
Take responsibility for security yourself.
Grid-class technical/HPC projects
Loosely coupled applications work best
Anonymize any customer/sensitive data.

Then: Move to Strategic Right-Sourcing
Segment your IT portfolio into:
Key services that drive profitability, efficiency of the business.
Services that are undifferentiated but unique to the business.
Commodity services.
Identify outsource options for commodity services.
SaaS, ASP, Cloud services, MSP, traditional outsource, etc.
Build in-house expertise in outsource contract management.
Incorporate right-sourcing into enterprise architecture.

Recommended Forrester research
October 9, 2009, “The Top 15 Technology Trends EA Should Watch”
October 2, 2009, “TechRadar™ For Infrastructure & Operations Pros: Cloud Computing, Q3 2009”
September 25, 2009, “Case Study: USA.gov Achieves Cloud Bursting Efficiency Using Terremark's Enterprise Cloud”
September 9, 2009, “Best Practices: Infrastructure-As-A-Service”
September 9, 2009, “Case Study: CryoPort Turns To Cloud Computing To Develop Tomorrow's New Vaccines”
August 14, 2009, “Q&A: By 2011, CIOs Must Answer The Question, "Why Not Run In The Cloud?””

Thank you
James Staten
[email_address]
Twitter: Staten7
www.forrester.com

Cloud Computing Realities Getting Past the Hype and Setting your Cloud Strategy November 17, 2009 Webinar
Bryan Doerr Chief Technology Officer

Agenda
The Benefits of Cloud Infrastructure
Cloud Types – Current and Future
Sample Cloud Use-Cases
Cloud Deployment and Performance

Cloud Computing When Is It a Good Fit for the Enterprise?
Applications and processes have highly variable demand
Internal data center capacity limits are being reached
Hardware is at the end of its serviceable life
Speed of provisioning is constraining business execution
Your data center no longer offers a competitive advantage to the organization
No longer provides a differentiation
Competitors’ time to market surpasses yours
In-house application development

The Infrastructure Balancing Act SAVINGS  Cloud Flexibility Cloud Used Time Capacity  Do It Yourself Used Time Capacity Cost Delta  Traditional Hosting deployment models demand capital or acceptance of risk  Deploying compute resources through the cloud offers greater flexibility, reduced risk and improved cost savings  The flexibility of cloud brings enhanced business agility, simplified capacity planning and a more efficient operating model for the interactive channel Purchased Used Time Capacity Traditional Hosting 

What Cloud is Right for your Business? Cloud Models And Cost Structure Hosted Dedicated Clouds Additional 15-40% TCO Savings (Workload Dependent) Current Customer Costs Avoided Capex Internal “Cloud” Personnel Hardware MTC Streamlined Opex Personnel Software MTC Hardware MTC Facilities & Power Server Capex Storage Capex Software MTC Facilities & Power Server Capex Storage Capex Dedicated Private Cloud Avoided Opex Software MTC* Avoided Capex Avoided Opex Software MTC* Public Cloud 15-40% TCO Savings (Solution Dependent) Internal “Clouds” Public Clouds

Savvis Cloud Services Portfolio Dedicated Cloud Compute Open Cloud Compute Project Spirit * Future Summary Cloud Computing Cloud Computing Cloud Data Center Management Service Tiers Fully Managed Fully Managed & Pre-Production* Enterprise, Balanced & Essential Virtual Services Available Compute Applications Storage (Security & Network addressed on separate Savvis platforms) Compute Applications Storage (Security & Network addressed on separate Savvis platforms) Compute Applications Storage Network Security Billing Terms Monthly + 1/2/3yr Terms Monthly+ 1/2/3yr Terms Hourly & Monthly Connectivity Hosting Area Network (HAN) Hosting Area Network (HAN) Application Transport Network (ATN) Geography Any Managed HAN IDC Select Savvis Internet Data Centers (IDCs) Regional Virtual IDCs Service Architecture Dedicated Multi-tenant Multi-tenant Capacity Management Customer Savvis Savvis Interface Secure Portal Secure Portal Secure Portal XML API*

Multiple Service Grades with Scalable Capacity, Cost, Security, Support, and Performance
Simple Drag-and-Drop Data Center Configuration
Enterprise-Grade Platform Technologies
Enhanced Cloud Security
Suitable for Development, Production and Mission-Critical Applications
The Future of Cloud Savvis Project Spirit Industry’s first enterprise-class VPDC with multi-tiered QoS capabilities

Savvis Cloud Offerings Early Use Cases
Analytics Company (Data Analysis Workload)
Burst compute to run large projects fast
Retail Company (Web Serving Workload)
Capacity to flex Web site
Banking SaaS Company (Web Serving Workload)
Selected Savvis for security and enterprise attributes
Granular growth with increased users
Unified Comm’s Company (Workgroup Workload)
Evaluating for conversion to a SaaS model
Financial Organization (App Dev Workload)
Time Compute Instances Granular growth Burst Data Analysis Time Compute Instances Runtime (000)

Spirit Services
Enterprise
7 mission critical web facing applications
1 Virtual Private Data Center (VPDC) with 41 instances
15 TB of storage
99.999% SLA, Guaranteed resources, Enterprise grade perimeter and application firewalls, 1G highest class network QOS, Load balancing, SSL off-loading, 3 tier storage
Essential
One “shrink wrapped” application – development environment
Additional servers used for shared infrastructure
1 Virtual Private Data Center (VPDC) with 37 instances
14 TB of storage
99.9% SLA, 100M best effort class network QOS
Utility Back-up
44 TB per month

Spirit Value Proposition
Flexible, Global Support & Service Delivery Model
Scale Rapidly – Provision instances on demand, increase your speed to market and gain the competitive advantage
Optimize - Scale up or down based on seasonality, market changes or other business requirements
Align with Industry Proven Practices – ITIL based model gives you operational efficiency, enhanced productivity and a robust IT service management toolset
Bring Focus Back to the Core
Reduce Risk - Using a Public Cloud reduces the risk of achieving target savings - Public Cloud does not require upfront capital outlay and development costs
“ Get out of the hardware business” - Repurpose your financial and personnel resources to the business’ efforts to get customers to connect and engage with target audiences worldwide
3 Year Cost Optimization* * Example Only Business Impact Strategic Impact Financial Impact

Don’t Forget Performance - The Connection between Cloud and User Experience
Your applications are in the cloud / your end-users are not
Not all clouds are equal – QoS in the Cloud will play a vital role to ensuring end-user experience
And performance, including end-user connectivity, needs to be monitored to fully benefit from cloud deployment capabilities
Your Cloud

Cloud Computing Realities: Getting Past the Hype And Setting Your Cloud Strategy Imad Mouline, CTO, Gomez

Not all clouds are created equal Performance variations exist across geographies
Average response time and availability are almost equal
5x variation in response times across key markets
How does this inconsistency impact end-user behavior?

The promise of elasticity Traditional Capacity Requirement Ideal Cloud Capacity Throttling Capability

The promise of flexibility No revenue coming in… Why Pay? Weekend lulls… Why Pay?

The challenge of a shared infrastructure What does your ‘neighbors’ traffic look like? For applications with shared infrastructures, end-user performance is the best measure of overall system health

Best Practice – Define your goals and build a plan
Align goals across your organization Why are we moving to the cloud?
Common goals include:
Additional Capacity – How much capacity do we need during normal and peak times?
Improved End-User Experience – What performance goals are we trying to deliver against?
Greater Elasticity – How quickly can the provider we select ramp up to meet our needs?
Flexible Bursting – How fast do we need to be able to access additional capacity?
If only there was a button to push!

Best Practice – Keep your end-users in mind
How was that experience for your customers?
Test your cloud applications the same way your customers use it:
What they do?
Customers care about completing tasks NOT whether the homepage is available
Where they do it from?
Your customers don’t live in the cloud, test from their perspective
When they do it?
Test at peak and normal traffic levels, to find all the problems
What expectations do customers have?
Is 4 seconds fast enough or does it have to be quicker?
Find configuration, capacity, and performance problems before end-users do with pre-production testing and production monitoring
Geographic disparities 4 sec’s 22 sec’s

Best Practice – Performance testing cloud capabilities
Evaluate vendors based on your goals…
Capacity
Test vendors to 15-20% above estimated capacity goals
Elasticity
Baseline end-user performance before, during & after testing
Test configuration settings explicitly
Ramp elasticity testing to peak levels
Burstability
Isolate the cloud elements from other infrastructure to test
Test the “failover process”

Best Practice – Set SLAs & objectives to match your needs
Set SLAs based on your goals…
End-user availability and response times
Capacity & elasticity objectives
Burstability goals
Set SLAs based on how you are using the cloud…
SaaS PaaS IaaS
Transactional Success Rate
Fast end-user experience across key geographies
Availability and performance of key components, services, and API’s
Hardware & OS availability / performance
Network connectivity
Capacity and elasticity requirements
Consistency across key markets

Putting your plan in action – How Gomez can help Gomez Capabilities Vendor Evaluation Deployment Testing Production Monitoring Service Level Management Validate the burstability & elasticity of cloud solutions Identify application performance bottlenecks Measure performance under normal and peak conditions Baseline and monitor service level objectives Measure how end-user performance impacts behavior Monitor performance & availability from the end-users’ perspective

Testing cloud applications with world’s most comprehensive performance and testing network Web Performance Management and Load Testing 100+ locations Backbone Web Performance Management and Load Testing 100,000+ locations Last Mile Your Actual Users Real User Monitoring Worldwide, wherever your users are

For more information visit www.gomez.com or contact us at [email_address] or +1 781.778.2700 Gomez Customers Enjoy Measurable Benefits
Reduced downtime 45%
Reduced seven-step transaction time by 50%
Increased conversions 10%
Validated decision to consolidate three data centers
Achieved under 3 second response time and 99%+ availability
Reduced homepage load time from 11.3 seconds to 3.4 seconds
Improved page load times 23%
Saved 50%+ in staff and fees

Questions? Imad Mouline CTO, Gomez Bryan Doerr CTO, Savvis James Staten Principal Analyst, Forrester Research

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Cloud Computing Realities - Getting past the hype and setting your cloud strategy Webinar hosted by Gomez, Savvis, & Forrester Research Presentation Transcript