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Developing Your Cloud Strategy
March 15, 2012




Adam Weissmuller
Director of Product Management, Managed Hosting and Cloud
Services, Internap

Michael Carman
Business Development, VMware
Agenda




     Introductions

     Cloud definitions

     Latest cloud trends

     Developing your cloud strategy

     Key considerations when choosing an infrastructure provider




2
Our intelligent IT
          Infrastructure solutions
          can take your business
          to a higher level.



3,700+ Enterprise Customers   500 Employees   2011 Revenue: $245M   NASDAQ: INAP




3
End user
              to the
    Performance
                                               IT Vendor

                                                                   IT Vendor
                                  IT Vendor




                                                                IT Vendor
                                        IT Vendor


                                                    IT Vendor
                                                                               IT Vendor


                   Platform
                         Flexibility



                                                                                           4
4
Performance
    to the End user
                                          Platform
                                          Flexibility
          IP Connectivity                    Colocation
          • Enterprise IP                    • Space, Power, Cooling
          • TCP Acceleration                 • Interconnection


          Content Delivery Network           Hosting
          • Media Delivery, Transparent      • Managed Hosting
            Caching, Mobile Delivery         • Dedicated Hosting
          • Analytics

                                             Cloud
                                             • Private Cloud
                                             • Public Cloud
                                             • Cloud Storage
    We live and breathe a full
    range of intelligent IT
    Infrastructure services




5
Cloud Definitions
Increased Customization




                                      “SaaS”
                                         =
                                    Turnkey App




                                                          Increased Agility
                                 “PaaS” = Code
                                   and Load


                             “IaaS” = OSaaS/FSaaS


                          “HWaaS” = Dedicated Hosting /
                               Managed Hosting


                                 “DCaaS” = Colo


6
VMware is the Customer-proven Market Leader

  Company Overview
    • $2.9 billion in 2010 revenues
    • Over $3 billion in cash
    • ~9,000 employees worldwide
    • 5th largest infrastructure software
     company in the world
  Proven in the Trenches
    • 250,000+ VMware customers
    • 100% of Fortune 100
    • 100% of Fortune Global 100
    • 97% of Fortune Global 500
    • Leader in Gartner Magic Quadrant
    • 84% of all virtualized applications



7
Historic Dilemma: Over or Under Invest in IT

                                Changing and
                            Unpredictable Business
     Under Invest                  Demand
        in IT

                                                                 Over Invest
                                                                    in IT




         Missed business opportunity                Write-offs for unused capacity
         Outages and major disruptions              High IT costs

           Cloud is a new IT approach to achieve the right investment balance
             to quickly respond to changing business demands & efficiently
                               manage to actual demand

 8
The Many Paths to Cloud Adoption




            Public Cloud             Public Cloud Adoption
            Experimentation          and Commitment




                                                                 Hybrid Cloud
                                                Mature Private
                                                Cloud
                                Early Private
                                Cloud

                        Cloud
                        Ready


           Cloud
           Interested




9
Cloud Adoption Top Driver is Business Agility

  88% Rate Cloud Computing as Priority Over the Next 18 Months




 10
Enterprise Cloud Requirements Aligned with VMware

Recent global study among CIOs and top IT decision makers


Key findings:
 Requirements for Enterprise Hybrid cloud are clear; (high performance, enterprise-level
  security and Quality Of Service, application portability)
 Business Agility is the top driver for cloud (75%)
 Highest deployments in private clouds today; ~ 20% (and growing) using hybrid cloud today
 88% would use cloud more if they could achieve the same or better security as their internal
  datacenter
 88% rate cloud computing as priority over the next 18 months
 Adoption is maturing quickly; 2/3 of respondents planning or adopting cloud today, 22%
  already in department and enterprise-wide deployments
 95% agree that virtualization is critical to cloud
 93% agree with VMware’s definition of cloud computing



      Base: 636 Total respondents; 234 US respondents; 202EMEA respondents; 200 APAC respondents
      Source: CIO Global Cloud Computing Adoption Survey January 2011


 11
Cloud Starting Points
                          Which of the following best describes your
                             organization’s starting point for cloud computing?

                                                                                                                                            10%
               25%                                                                                                                     Business case,
      • 43% Email
                                                                                                                                       strategy & plan
      • 40% Collaboration
      • 39% Human Resource
                                            Business apps                                     Business transformation: large
                                        accessed by users as a                                org. impact, multi-million dollar
                                               service                                           budgets, multiple phases




                                         IT services for isolated                             IT transformation: re-architect
                                         environments/projects,                              infrastructure services for cloud
                                       limited scope and budget                                         computing


                  26%                                                                                                                   39%
         • 69% Test & Dev                                                                                                        Roadmap, service
         • 51% Pre-Production                                                                                                    catalog, reference
         • 50% Quality Testing
                                                                                                                                    architecture

        Base: 271Total respondents; 110 US respondents; 82EMEA respondents; 79 APAC respondents currently using or piloting services or applications via the cloud
        Source: CIO Global Cloud Computing Adoption Survey January 2011 (For Internal Use Only)

 12
VMware vCloud Solution


               Agility with Reliable Performance
               • On-demand provisioning of virtual servers
               • Fast scale up at reasonable cost
               • Predictable, consistent SLAs


               Security
               • Secure & auditable cloud infrastructure
               • Secure apps and user access



               Application Portability
               • Compatible with existing workloads
               • Globally consistent service across providers




13
VMware vCloud Services Enhance Your Cloud Deployment

                                      Enterprise Hybrid Cloud
            Private Cloud                                                   Public Cloud



      Service Consumption
        vCloud Request Manager
          vCenter Chargeback
                                                                              vCloud Datacenter
                                                Portability                    Security & performance
                                                                              for enterprises
          Service Delivery
             vCloud Director
                                         Cross-Cloud Standards
                                                vCloud API                      vCloud Express
                                          Open Virtualization Format              Rapid, credit card payment
     Security and Compliance                                                    for developers
         vShield Security Family
      vCenter Configuration Manager
                                        Cross-Cloud Management
                                              vCloud Connector              vCloud Powered
     Resource Management                                                       Broad array of
               vSphere                                                   VMware-compatible clouds
                                                                           for any business need
      vCenter Management Family



                                                                       Internap is vCloud Powered

14
Internap Defines IaaS as a Continuum


                                               IaaS


                    Private Cloud                             Public Cloud


        App   App       App       App    App           App   App    App      App   App
                                               Instances


                                            Hypervisor




                              Decreasing Cost, Increasing Capacity
                              Increasing Control and Customization

                                        Cloud Storage




15
Questions to Consider When Selecting a Cloud
     Service Provider:




                                                     What about
                        How much
                                                    performance
                        security?
                                                     to the end-
                                     How much           user?
        What level of                support is
        customization                 needed?
        do you need?


16
Is Everything Moving to the Cloud?



          Enterprises tend to migrate
          their infrastructure toward
          the cloud




       Colocation   Managed     Enterprise   Dedicated      Public
                    Hosting       Cloud       Hosting       Cloud




                                                         Internet start-ups tend to
                                                         migrate toward more
                                                         dedicated infrastructure


17
Questions?




18

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Nyc lunch and learn 03 15 2012 final

  • 1. Developing Your Cloud Strategy March 15, 2012 Adam Weissmuller Director of Product Management, Managed Hosting and Cloud Services, Internap Michael Carman Business Development, VMware
  • 2. Agenda Introductions Cloud definitions Latest cloud trends Developing your cloud strategy Key considerations when choosing an infrastructure provider 2
  • 3. Our intelligent IT Infrastructure solutions can take your business to a higher level. 3,700+ Enterprise Customers 500 Employees 2011 Revenue: $245M NASDAQ: INAP 3
  • 4. End user to the Performance IT Vendor IT Vendor IT Vendor IT Vendor IT Vendor IT Vendor IT Vendor Platform Flexibility 4 4
  • 5. Performance to the End user Platform Flexibility IP Connectivity Colocation • Enterprise IP • Space, Power, Cooling • TCP Acceleration • Interconnection Content Delivery Network Hosting • Media Delivery, Transparent • Managed Hosting Caching, Mobile Delivery • Dedicated Hosting • Analytics Cloud • Private Cloud • Public Cloud • Cloud Storage We live and breathe a full range of intelligent IT Infrastructure services 5
  • 6. Cloud Definitions Increased Customization “SaaS” = Turnkey App Increased Agility “PaaS” = Code and Load “IaaS” = OSaaS/FSaaS “HWaaS” = Dedicated Hosting / Managed Hosting “DCaaS” = Colo 6
  • 7. VMware is the Customer-proven Market Leader  Company Overview • $2.9 billion in 2010 revenues • Over $3 billion in cash • ~9,000 employees worldwide • 5th largest infrastructure software company in the world  Proven in the Trenches • 250,000+ VMware customers • 100% of Fortune 100 • 100% of Fortune Global 100 • 97% of Fortune Global 500 • Leader in Gartner Magic Quadrant • 84% of all virtualized applications 7
  • 8. Historic Dilemma: Over or Under Invest in IT Changing and Unpredictable Business Under Invest Demand in IT Over Invest in IT  Missed business opportunity  Write-offs for unused capacity  Outages and major disruptions  High IT costs Cloud is a new IT approach to achieve the right investment balance to quickly respond to changing business demands & efficiently manage to actual demand 8
  • 9. The Many Paths to Cloud Adoption Public Cloud Public Cloud Adoption Experimentation and Commitment Hybrid Cloud Mature Private Cloud Early Private Cloud Cloud Ready Cloud Interested 9
  • 10. Cloud Adoption Top Driver is Business Agility  88% Rate Cloud Computing as Priority Over the Next 18 Months 10
  • 11. Enterprise Cloud Requirements Aligned with VMware Recent global study among CIOs and top IT decision makers Key findings:  Requirements for Enterprise Hybrid cloud are clear; (high performance, enterprise-level security and Quality Of Service, application portability)  Business Agility is the top driver for cloud (75%)  Highest deployments in private clouds today; ~ 20% (and growing) using hybrid cloud today  88% would use cloud more if they could achieve the same or better security as their internal datacenter  88% rate cloud computing as priority over the next 18 months  Adoption is maturing quickly; 2/3 of respondents planning or adopting cloud today, 22% already in department and enterprise-wide deployments  95% agree that virtualization is critical to cloud  93% agree with VMware’s definition of cloud computing Base: 636 Total respondents; 234 US respondents; 202EMEA respondents; 200 APAC respondents Source: CIO Global Cloud Computing Adoption Survey January 2011 11
  • 12. Cloud Starting Points Which of the following best describes your organization’s starting point for cloud computing? 10% 25% Business case, • 43% Email strategy & plan • 40% Collaboration • 39% Human Resource Business apps Business transformation: large accessed by users as a org. impact, multi-million dollar service budgets, multiple phases IT services for isolated IT transformation: re-architect environments/projects, infrastructure services for cloud limited scope and budget computing 26% 39% • 69% Test & Dev Roadmap, service • 51% Pre-Production catalog, reference • 50% Quality Testing architecture Base: 271Total respondents; 110 US respondents; 82EMEA respondents; 79 APAC respondents currently using or piloting services or applications via the cloud Source: CIO Global Cloud Computing Adoption Survey January 2011 (For Internal Use Only) 12
  • 13. VMware vCloud Solution Agility with Reliable Performance • On-demand provisioning of virtual servers • Fast scale up at reasonable cost • Predictable, consistent SLAs Security • Secure & auditable cloud infrastructure • Secure apps and user access Application Portability • Compatible with existing workloads • Globally consistent service across providers 13
  • 14. VMware vCloud Services Enhance Your Cloud Deployment Enterprise Hybrid Cloud Private Cloud Public Cloud Service Consumption vCloud Request Manager vCenter Chargeback vCloud Datacenter Portability Security & performance for enterprises Service Delivery vCloud Director Cross-Cloud Standards vCloud API vCloud Express Open Virtualization Format Rapid, credit card payment Security and Compliance for developers vShield Security Family vCenter Configuration Manager Cross-Cloud Management vCloud Connector vCloud Powered Resource Management Broad array of vSphere VMware-compatible clouds for any business need vCenter Management Family Internap is vCloud Powered 14
  • 15. Internap Defines IaaS as a Continuum IaaS Private Cloud Public Cloud App App App App App App App App App App Instances Hypervisor Decreasing Cost, Increasing Capacity Increasing Control and Customization Cloud Storage 15
  • 16. Questions to Consider When Selecting a Cloud Service Provider: What about How much performance security? to the end- How much user? What level of support is customization needed? do you need? 16
  • 17. Is Everything Moving to the Cloud? Enterprises tend to migrate their infrastructure toward the cloud Colocation Managed Enterprise Dedicated Public Hosting Cloud Hosting Cloud Internet start-ups tend to migrate toward more dedicated infrastructure 17

Editor's Notes

  1. The answer is that we differentiate our solutions along two business-critical dimensions:Unparalleled performance to the end user: through our enterprise IP, TCP acceleration and CDN services, we ensure that your online applications and websites deliver the best possible end-user experience. Complete IT platform flexibility: with IT deployment platform options ranging from colocation and managed hosting to private and public cloud services, we give enterprises the flexibility to meet all their distinctive IT needs.
  2. VMware is the fastest growing software company that continues to grow and lead the market based on a compelling value proposition to a broad set of IT customers, from small to large global enterprises. The pioneer in x86 virtualization, VMware continues to redefine the scope of virtualization for the new era of Cloud Computing.
  3. In today’s marketplace, businesses face economic and market changes that often prove difficult if not impossible to forecast. This leaves companies vulnerable to swings in demand and either under-investment or over-investment in IT. Underestimating demand can lead to missed opportunities, or even outages and other major disruptions to your business. Overestimating demand, on the other hand, can result in write-offs for unused capacity and facilities.As you learn more about the application demand pattern, you can rapidly make economical decisions such as moving applications out to a public cloud or taking them back in-house. With cloud computing, you pay only for the IT resources you useCustomer quotes2x DC for the future 2 yr project – over investQuote “With cloud computing, if you underestimate, you can borrow from the cloud; if you overestimate, you can give back to the cloud—not just in aggregate across the company but also in specific areas. You could be correct in sales and trading, but wrong in finance, but either way, you‘re covered.”
  4. We know cloud computing adoption is maturing. Often, cost reduction is talked about as the benefit for cloud computing but to put that in context, according to the IDG survey for VMware and most industry experts, the benefits for business agility are far greater.The top driver for cloud computing is Business Agility at 75%. Reducing IT investment is secondary at 56%.
  5. The characteristics of enterprise hybrid cloud emerge:business agility for quick procurement and consumption of cloud resources, high performance by eliminating “noisy neighbor” problem, [click]multi-tier security that meets enterprise security criteria,industry and corporate compliance audits and,[click]infrastructure compatibility that allows easy and no-rework application portability, unparalleled choice of payment models and service providers.
  6. Key points:1) We have a comprehensive solution for private cloud2) We build on the same core platform (vSphere, vShield, vCloud Director) for our public cloud offerings3) We focus heavily on compatibility between the public and private, so that apps are portal, management is based on common interfaces4) We enable 3rd party partners to connect via the vCloud APIvCloud Powered services are built on the same architecture as your VMware virtualized infrastructure and/or private cloud deployment. They support application mobility and portability between private and public cloud environments.A key point is that you don’t have to have already deployed a private cloud internally (e.g. with vCloud Director) to make use of a vCloud Powered service. You can simply take a workload in the Open Virtualization Format (OVF) and deploy it to a service that’s vCloud powered.
  7. Our enterprise cloud solutions include flexible private cloud and public cloud services to address your different use cases and requirements. Internap’s cloud services offer enterprises unmatched flexibility, with the ability to choose VMware hypervisors for enterprise-class features and reliability or open source hypervisors for superior cost profiles. This approach also allows customers to “future-proof” cloud investments, enabling the transition from one cloud platform to another as priorities and business needs shift over time.Available today, our private cloudsolution enables organizations to maintain the levels of control and security inherent in a dedicated platform. A VMware-based service, our private cloud provides a seamless next step for enterprises that are already using VMware internally for server consolidation.Our public cloud service will be generally available at the end of the third quarter. Built on the open source OpenStack platform and supporting both VMware and Xen hypervisors, Internap’s public cloud will provide the flexibility and performance inherent in our other solutions.Our cloud storage service provides unlimited storage capacity, on-demand access and utility billing.[The OpenStack™ open source platform was developed by an international community to promote interoperability and eliminate vendor “lock-in.”]
  8. Internap is simple to understand. We enable the industry’s best performance and broadest platform flexibility. All complemented by superior customer support. That’s IT IQ. Let ‘s discuss how our capabilities can take your business to a higher level.