Up in the Clouds


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A comprehensive introduction to Cloud Computing. Learn what it is, how it works, where it might be applicable, and when to avoid it. Presented by C3 / Cloud Computing Concepts Managing Partner, Rick Mancinelli.

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Up in the Clouds

  1. 1. Up In The CloudsAn Introduction to Cloud Computing<br />
  2. 2. Introduction…<br />Presented by Rick Mancinelli<br />Technology Consultant since 1990<br />Background in Software Development, Network Engineering, and Executive Level IT Management<br />Managing Partner in Cloud Computing Concepts, LLC<br />
  3. 3. Cloud Computing Overview<br />
  4. 4. Origins of the term Cloud Computing<br />It has absolutely nothing to do with the weather.<br />The “Cloud” was originally used to represent the network or the Internet on infrastructure diagrams.<br />It was later used as an abstraction of applications and services on similar diagrams.<br />NY<br />LA<br />Internet<br />MIA<br />CHI<br />
  5. 5. Modern Definition of Cloud Computing<br />According to the National Institute of Standards and Technology…<br />“Cloud Computing is a model for enabling convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction.”<br />
  6. 6. Three Components of Cloud Computing<br />Software as a Service (“SaaS”)<br />Platform as a Service (“PaaS”)<br />Infrastructure as a Service (“IaaS”)<br />
  7. 7. Software as a Service<br />Software which is typically accessed via web browser.<br />Initially used for Sales Force Automation (“SFA”) and Customer Relationship Management (“CRM”).<br />Now encompasses many different types of software, including Accounting, Financials, ERP, & Productivity.<br />Most of you probably use some of it today!<br />Examples include Gmail, Salesforce.com,<br />QuickBooks Online, and WebEx.<br />
  8. 8. Platform as a Service<br />Entire software development platform presented as a service.<br />Less common than SaaS, but still critical to Cloud Computing model.<br />Examples include Force.com and the Google App Engine.<br />Allows custom software to be prototyped, built, tested and deployed more rapidly than traditional development approaches.<br />
  9. 9. Infrastructure as a Service<br />All or significant portions of corporate IT systems are moved to the cloud.<br />Enabled by virtualization technologies from companies like VMware.<br />Initially just servers were moved to the cloud, but today desktops are increasingly moving there too.<br />IT systems become accessible from many different types of devices including PC’s, thin clients, smart phones and tablets (such as iPads).<br />
  10. 10. Three Different Types of Clouds<br />
  11. 11. The Private Cloud<br />Essentially one or more corporate owned clusters of servers and storage arrays running a virtualization solution such as VMware’s vSphere.<br />Common in Fortune 500 and other larger organizations.<br />Often too expensive for small and medium sized businesses.<br />Difficult for most organizations to support once built.<br />
  12. 12. The Public Cloud<br />Primarily what people are referring to when they talk about Cloud Computing.<br />All infrastructure (Servers, Storage, Networking) is rented from a provider and accessed online.<br />Client pays only for the resources they require at a given time.<br />
  13. 13. The Hybrid Cloud<br />Somewhat less common, but still relevant.<br />Links a Private Cloud and a Public Cloud together.<br />Should be seamless to end users if properly implemented.<br />
  14. 14. Why Cloud Computing Is Becoming Pervasive<br />
  15. 15. Reduced Capital Expenditures<br />The number one reason cited by users of Cloud Computing.<br />Little or no upfront hardware or software costs required.<br />Popular choice for Startups with limited access to capital or financing.<br />Also popular given recent shortages in funding available for lease financing.<br />
  16. 16. Reduced Management Costs<br />No need to track and manage lifecycle of physical hardware.<br />No need to update BIOS or firmware on servers or network devices.<br />Never again worry about time or costs spent replacing failed equipment.<br />Reduced attack surface for viruses, trojans, and other malware.<br />Provisioning of new services is much quicker and easier.<br />Recovery from failure is faster.<br />Off-site backup is included in most solutions.<br />Upgrade to new servers is handled automatically.<br />
  17. 17. Other Cost Savings<br />Save on the true cost of money. Using an average rate of 11% for an equipment lease, it costs $17,850 to finance $100,000 in equipment for 36 months.<br />Eliminate co-location costs for those clients already paying for space in a hardened facility. This can mean savings of up to $3000 per rack per month, depending upon how it is configured.<br />Reduce power and cooling expenses by replacing servers with Cloud based solutions. More on this in a few slides…<br />
  18. 18. Scalability<br />Management can quickly scale up without additional capital expenditures.<br />Delays related to equipment backorders, shipping, and configuration are eliminated.<br />Entire servers can be provisioned in less than 15 minutes.<br />RAM or Disk Space can be added in as few as 5 minutes.<br />Impossible to match these service levels with physical hardware.<br />
  19. 19. Elasticity<br />The Cloud allows companies to scale down IT operations just as easily as they can scale them up.<br />Cyclical or seasonal businesses can provision additional resources for short period of time.<br />Downsizing companies, a painful reality in today’s economy, can save immediately by eliminating unused resources.<br />Ideal for temporary projects, proof of concepts, upgrades, etc.<br />
  20. 20. High Availability<br />Most reputable providers use enterprise class commercial hardware with highly redundant features.<br />Google is one notable exception – they actually build their own servers, and the Gartner Group estimates that they are actually the 4th largest server manufacturer in the world.<br />Most every Cloud provider maintains their equipment in one or more highly resilient data centers.<br />Most organizations, especially small and medium sized businesses, could not afford to replicate the level of high availability that most Cloud providers offer.<br />
  21. 21. Inherent Remote Access<br />Once in the Cloud, remote access is the ONLY method of access.<br />Eliminates the need for expensive solutions like Citrix or Terminal Services.<br />Remote access can be controlled by user and/or by location as necessary.<br />
  22. 22. Disaster Recovery Features<br />This is a topic that could easily stand on its own.<br />The statistics are scary:<br />Gartner estimates that only 35% of small and medium businesses have a comprehensive DR plan in place.<br />SANS Institute estimates that only 15% of mid-sized data centers would be able to recover more than 30% of their applications given an unlimited time frame.<br />According to Touche Ross, the survival rate for companies without a DR plan is less than 10%.<br />According to an NFIB poll, man-made disasters affect 10% of small businesses whereas natural disasters have impacted more than 30% of small businesses in the US. Hurricanes are the leading cause of loss among all natural disasters.<br />Locating corporate IT infrastructure, applications and data within <br />the Cloud helps mitigate these risks by leveraging highly<br />available systems, rapid data recovery and resilient buildings. <br />
  23. 23. Business Continuity<br />Often confused with or lumped in with Disaster Recovery, Business Continuity is actually the process of enabling critical business operations to continue during the recovery phase of a disaster.<br />Cloud based solutions enable business continuity by isolating applications and data from corporate office(s).<br />During Hurricane Wilma, our office building in Boca Raton had no commercial power for 10 business days in a row yet our phones, servers, and desktops were all available.<br />
  24. 24. Physical Security<br />By moving sensitive data to the Cloud, the risk of data loss due to physical theft is eliminated.<br />Lost, damaged, or stolen computers, laptops, and/or thin clients pose no risk because they contain no sensitive data and no personally identifying information.<br />Ideal for public areas such as kiosks, libraries, and schools where the risk of theft is greater.<br />Also great for construction sites, manufacturing<br />plants, warehouses and other harsh environments<br />where PCs would be easily damaged.<br />
  25. 25. The Green Aspect<br />Simply put, Cloud Computing is a very “Green” method of using technology.<br />Using a Florida average of $0.10 per Kilowatt Hour, replacing a 150 watt PC with a 15 watt Thin Client results in a savings of $118.26 per PC replaced per year.<br />A server with a power draw of 500 watts, when moved to the Cloud, will save $438 per year.<br />PC’s have a life span of 3-4 years versus the 6-8 years of a Thin Client. This results in less landfill impact.<br />Thin Clients are also much smaller and thus have fewer parts. This further reduces the landfill impact.<br />The servers that make up most Cloud environments typically run at utilization rates of between 70% and 80% versus the 15% of the average corporate server. Less Servers = Less Power Draw = Lower Carbon Footprint!<br />
  26. 26. Situations Where Cloud Computing Is Recommended<br />
  27. 27. Cloud Computing is an EXCELLENT fit for…<br />Businesses that operate 24x7 and require the maximum uptime available.<br />Telecommuting based businesses.<br />Startups with limited access to cash or financing.<br />Established businesses with credit trouble that limits financing options.<br />
  28. 28. We Recommend the Cloud to a Client That Is…<br />Nearing the end of their current equipment’s lifecycle.<br />About to undergo an expansion or open a new office.<br />Expressing a need for Disaster Recovery and/or Business Continuity planning.<br />Considering an investment in Remote Access technologies and infrastructure.<br />In need of additional storage or computing resources.<br />About to undertake a major software upgrade.<br />Deploying a temporary or proof of concept service or application.<br />
  29. 29. The Cloud is NOT For Everyone….Yet<br />
  30. 30. Users of Graphically Intensive Applications<br />Architects<br />Designers<br />Graphic Artists<br />Video Editors<br />Photographers<br />Others which require dedicated GPU resources<br />…should currently avoid the Cloud.<br />
  31. 31. Clients With New Equipment<br />Moving wholesale to the Cloud after a recent upgrade to internal equipment would be wasteful and against the spirit of the Cloud.<br />These clients should keep the Cloud in mind if the need arises to augment internal equipment, software, or services. Off-site backup is a great example.<br />
  32. 32. Clients Where Broadband Access is Not Available<br />This is an increasingly rare occurrence.<br />Bandwidth requirements for server virtualization will vary by client.<br />Bandwidth requirements for desktop virtualization are currently 500kbps (0.5mbps) per desktop of download speed and 50kbps (0.05mbps) of uploadspeed.<br />Current 3G wireless is adequate. 4G will be even better.<br />
  33. 33. Clients That Require Apple Mac OSX Virtualization<br />Apple has not (yet) fully embraced the Cloud.<br />Part of the Mac OSX profit model relies on the sale of proprietary hardware.<br />There is a lot of pressure on Apple to allow virtualization of the Mac OSX platform.<br />Most industry pundits believe it will be just a matter of time.<br />
  34. 34. Summary<br />
  35. 35. The Current State of Cloud Computing<br />The single fastest growing segment in all of technology.<br />Consumer adoption is already very high given solutions like Facebook, Twitter, NetFlix on Demand, Flickr, Slideshare, Vimeo, Mozy, Pandora and others.<br />Enterprise adoption is being pushed by many notable players including Microsoft, Google, Cisco, Intuit, Amazon, and Salesforce.com.<br />In 2009, Gartner calculated that enterprise spending on Cloud Computing and related services was $58.6B.<br />According to Steve Ballmer, CEO of Microsoft, 70% of their employees are currently involved in Cloud related projects. This will jump to 90% in 2011.<br />The time to begin studying the Cloud’s impact on your business is NOW!<br />
  36. 36. The Future of Cloud Computing<br />IDC projects a CAGR for Cloud Computing of 26% over the next 4 years versus 4% for traditional IT related spending.<br />Gartner predicts Cloud Services spending to reach $148.8B in 2014.<br />High speed connectivity will continue to become cheaper, faster, and more ubiquitous.<br />Applications will continue to improve and the so-called “feature gap” between SaaS applications and their desktop counterparts will narrow significantly or disappear altogether.<br />Mobile devices such as the iPhone, iPad, and Android powered tablets and smart phones will drive further adoption of Cloud related services.<br />The next “killer app” is just around the corner.<br />
  37. 37. Quotable Quotes<br />“By 2012, 20% of businesses will own no IT assets.” – Gartner Group, January 13, 2010.<br />“Almost every startup we invest in either offers cloud services or uses components of Platform as a Service or Infrastructure as a Service.” – HabibKairouz, Rho Capital Partners, June 6, 2010.<br />“People ask me why do I think cloud computing will be the next phase of Enterprise IT? I don’t think it. I know it.” – Bill McCracken, Chairman and CEO of CA Technologies, May 16, 2010.<br />“We are betting our company on the Cloud.” – Steve Ballmer, Microsoft CEO, March 4, 2010.<br />
  38. 38. Questions & Answers<br />
  39. 39. THANK YOU for Your Time!<br />Email: rmancinelli@c3office.com<br />Web: www.bisginc.com<br />Phone: 561-939-4035 x4012<br />Linked In: www.linkedin.com/in/rickmancinelli<br />Twitter: @c3office<br />