ProfitBricks CloudCamp Hybrid Clouds no Future

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Andreas Gauger, Gründer und CMO vor ProfitBricks, zeigt auf den CloudCamp Frankfurt, warum Hybrid Cloud nicht die Zukunft des Cloud Computing und für Unternehmens IT ist. Die Zukunft der IT liegt im Bezug von Rechenpower wie aus der Steckdose. Aber: Die Cloud Preise müssen runter.

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  • Hi everyone, my name is Andreas Gauger, I am with ProfitBricks an Infrastructure as a Service company out of Berlin.
  • couple of hundred million dollar revenue
  • Today I want to share two statements with you that you would not expect to come from a leader of an IaaS company
  • Drawbacks
  • Possibility to start small and scale easily was a clear factor of success
  • Drawbacks are mostly solved with modern cloud providers
  • And that is my second statement for today…
  • … nobody likes me talking about
    That is a price at ten times the original cost
    Like PaaS providers tripling IaaS pricing easily
  • It should be like energy from an outlet you do not care how much the device needs that you plug in always the right amount gets delivered and you pay only what you use.
  • ProfitBricks CloudCamp Hybrid Clouds no Future

    1. 1. Hybrid Clouds are not the future, better IaaS pricing is Andreas Gauger @gaugi
    2. 2. Introduction • Andreas Gauger • 18 years in the hosting/cloud industry • Founded and led the 1&1 hosting business from 1995 to 2008 • Started ProfitBricks in 2010 together with Achim Weiß who was CTO at 1&1 and responsible for all development and all datacenters
    3. 3. Two statements…
    4. 4. When I saw the first cloud computing products I thought they would never be a success
    5. 5. First cloud computing • Only pretty small instances • performance fluctuation due to bad neighbor problems • No that reliable • Lot’s of things you could not do (no networking, load balancing etc.) • 2 to 4 times more expensive than dedicated servers
    6. 6. But it was a success… • Very low starting cost • No investments • No long term contract, no unused capacity • Once the workload was adapted to the cloud it was easily scalable, no (wrong) pre planning of capacity was necessary any more • No management of hardware, datacenter or connectivity any more
    7. 7. Today cloud is different • Small to very big instances available • Performance of modern clouds can be very high • Reliability can be very good due to more redundancy • Software defined datacenters offer all the possibilities of „real hardware“ data centers
    8. 8. But…
    9. 9. The cloud is still overpriced
    10. 10. It’s the elephant in the room • Typical public cloud IaaS offerings have gross margins as high as 80% to 90% • Cloud pricing is dominated by big players that set the standards nearly all the competitors use as orientation • Sadly also most companies that offer services on top of IaaS do the same
    11. 11. Why do I tell you? • I should shut up and be happy about the margins • But I think the artificially high pricing has started to hinder the adoption of IaaS • Hybrid clouds emerge, and one of the main reasons for this is - the too high price of IaaS • Companies with large workloads pull them from IaaS providers out of cost reasons
    12. 12. Old technology is happy • The too high pricing leaves the door open for old technology • Hardware vendors tell their customers to use „hybrid clouds“ that are a combination of a „private cloud“ where they can sell the good old servers and storage systems and public cloud • Dedicated server hosters do the same thing but there the „private cloud“ is rented not bought
    13. 13. Even IaaS providers go back in time • Some IaaS providers have „indecent proposals“ • The more more we take away from the flexibility the cloud promised, the better pricing you will get • „Sign a three year fixed contract on an instance. Pay a high setup fee and a fixed monthly fee (no matter if you use the instance) and you get a 66% discount“ (actual offer of Amazon)
    14. 14. And why is this bad? • Cloud computing is a promise. • It is a very elegant form of resource allocation and it takes away a lot of burdens from the user • Hybrid clouds and „lock-in“ pricing schemes take away these advantages and even add an additional layer of complexity to the management (hybrid clouds)
    15. 15. So what should you do? • Look out for the new and modern IaaS companies out there. • They didn’t have the burden of older technology and existing revenue streams to protect • They offer modern, high performant virtual datacenters at much more reasonable pricing than the big players
    16. 16. Another secret • If you want to know your cost of a certain IaaS provider for you there is ONLY ONE WAY to find out: • • Run your actual workload on that provider. The real one. Then find out what bang you get for your buck. If you try to compare IaaS provider pricing on paper you have a high chance to be factors off.
    17. 17. Conclusion • Don’t go hybrid cloud for cost reasons • Just find and test cost efficient IaaS providers and live happy ever after

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