Every Cloud Has a Silver Lining Marketing “The Cloud” John Pozadzides Chief Marketing Officer Layered Tech [email_address]

Brief Introduction

Marketing “The Cloud” Today we’ll focus on 3 key questions:

Today we’ll focus on 3 key questions:

Before We Get Started… I’m not just the CMO… I’m also a client! Sy Sterling – President Hair Club for Men

I’m not just the CMO…

A Glimpse at What I’ve Got Pozadzides.com OneMansBlog.com Woopra.com HTMLHelp.com

Where is all of this heading?

Gartner’s Picks for 2008 Gartner’s top 10 technologies for 2008: Green IT Universal communications Business process modeling Metadata management Virtualization “2.0” Mashup and composite Web Web platforms and “WOA” Computing fabric “ Real World” web Social software

Gartner’s top 10 technologies for 2008:

Green IT

Universal communications

Business process modeling

Metadata management

Virtualization “2.0”

Mashup and composite Web

Web platforms and “WOA”

Computing fabric

“ Real World” web

Social software

Cloud as a Growth Engine “ Infrastructure is on an inevitable shift from components that are physically integrated by vendors (for example, monolithic servers) or manually integrated by users to logically composed “fabrics” of computing, I/O and storage comments” . Gartner Publication Number: G00156488

“ Infrastructure is on an inevitable shift from components that are physically integrated by vendors (for example, monolithic servers) or manually integrated by users to logically composed “fabrics” of computing, I/O and storage comments” .

Gartner Publication Number: G00156488

Forrester Trends Forrester’s IT to business technology (BT) transformation vision identifies 5 trends: Virtualization everywhere . The consolidation of everything . Standardization and simplification of IT. Business continuity and disaster recovery (BC/DR) are at the heart of major IT initiatives. A new wave of technology refresh will kick in.

Forrester’s IT to business technology (BT) transformation vision identifies 5 trends:

Virtualization everywhere .

The consolidation of everything .

Standardization and simplification of IT.

Business continuity and disaster recovery (BC/DR) are at the heart of major IT initiatives.

A new wave of technology refresh will kick in.

IDC’s Virtualization Market Worldwide Physical and Logical Servers ( Millions per year) Source: Server Virtualization Market Forecast and Analysis, 2006 – 2011 ; IDC; (January 2008)

Cloud Computing Goes Mainstream Google is In! April 7, 2008: App Engine service to power developer applications. June 10, 2008: Google’s focus is on the Cloud. " The next 10 years of innovations are going to be in the cloud . Enterprise software is not going away, but there is a transition taking place.” - Rishi Chandra, Product Manager Google Enterprise

Google is In!

April 7, 2008: App Engine service to power developer applications.

June 10, 2008: Google’s focus is on the Cloud.

" The next 10 years of innovations are going to be in the cloud .

Enterprise software is not going away, but there is a transition taking place.”

- Rishi Chandra, Product Manager Google Enterprise

Cloud Computing Goes Mainstream IBM is In! Nov. 15, 2007: IBM unveils Blue Cloud for banking and other distributed applications. The first Blue Cloud deployments already appearing. Yahoo is in! March 24, 2008: Yahoo announces an agreement with Computational Research Laboratories (CRL) to support cloud computing. Initial support for research, later to make it’s way into production environments

IBM is In!

Nov. 15, 2007: IBM unveils Blue Cloud for banking and other distributed applications.

The first Blue Cloud deployments already appearing.

Yahoo is in!

March 24, 2008: Yahoo announces an agreement with Computational Research Laboratories (CRL) to support cloud computing.

Initial support for research, later to make it’s way into production environments

Cloud Computing Goes Mainstream Even Microsoft is getting in! Windows Live Mesh incorporates cloud storage technology (Most computing is still handled on the desktop.) And of course, Amazon: Amazon Elastic Compute Cloud (EC2) provides resizable compute capacity in the cloud. Amazon Simple Storage Service (Amazon S3) provides data storage for the Web.

Even Microsoft is getting in!

Windows Live Mesh incorporates cloud storage technology

(Most computing is still handled on the desktop.)

And of course, Amazon:

Amazon Elastic Compute Cloud (EC2) provides resizable compute capacity in the cloud.

Amazon Simple Storage Service (Amazon S3) provides data storage for the Web.

The Big Question “ As the gap widens between enterprise and Web giant economics, it may get to the point that it no longer makes financial sense for many businesses to run their own servers. When this happens, will you be a cloud or a cloud customer ?” - James Staten, Forrester Research

“ As the gap widens between enterprise and Web giant economics, it may get to the point that it no longer makes financial sense for many businesses to run their own servers. When this happens, will you be a cloud or a cloud customer ?”

- James Staten, Forrester Research

Everyone Is Talking About It! A Google Search for “cloud computing” found 28,000 results one week! Gizmodo Fortune GigaOM ReadWriteWeb

Virtualization is the Highest Impact Trend “ Virtualization will be the highest-impact trend changing infrastructure and operations through 2012” “ Virtualization will transform how IT is managed , what is bought , how it is deployed , how companies plan and how they are charged” “ Analysts predict that more than 4 million virtual machines will be installed on x86 servers by 2009 ” Business Wire, Wednesday, April 2, 2008

“ Virtualization will be the highest-impact trend changing infrastructure and operations through 2012”

“ Virtualization will transform how IT is managed , what is bought , how it is deployed , how companies plan and how they are charged”

“ Analysts predict that more than 4 million virtual machines will be installed on x86 servers by 2009 ”

Business Wire, Wednesday, April 2, 2008

The Bottom Line “ Virtualization is hot. It changes and touches nearly everything in the IT portfolio. If affects what you buy, how you buy and how you implement it.” Gartner Special Report by Phillip Dawson, Thomas J. Bittman

“ Virtualization is hot. It changes and touches nearly everything in the IT portfolio. If affects what you buy, how you buy and how you implement it.”

Gartner Special Report

by Phillip Dawson, Thomas J. Bittman

What are we up against?

What You Can Expect to Hear

Fear, Uncertainty and Doubt! A few responses to concerns raised regarding Clouds: “ One of the ways to go truly insane is to read the terms of service for these clouds.” OK. Amazon has the right to terminate an account at any time, for any reason It doesn’t mean those terms apply to the entire industry. Mosso, LT, and others provide terms similar to those of dedicated servers “ What happens if a server or a hard disk crashes in the middle of an operation?” Depending on the service, it’s the same as a dedicated server. However, if this is a concern, the option is a Grid or Cluster.

A few responses to concerns raised regarding Clouds:

“ One of the ways to go truly insane is to read the terms of service for these clouds.”

OK. Amazon has the right to terminate an account at any time, for any reason

It doesn’t mean those terms apply to the entire industry.

Mosso, LT, and others provide terms similar to those of dedicated servers

“ What happens if a server or a hard disk crashes in the middle of an operation?”

Depending on the service, it’s the same as a dedicated server.

However, if this is a concern, the option is a Grid or Cluster.

Fear, Uncertainty and Doubt! (Continued) “… you can’t even write a file in your own directory with the (Google) app engine...” Google’s service fits a particular niche, it simply can’t be compared to others like Mosso, GoGrid or The Grid Layer Every other service allows for this functionality “ (Go Grid’s) only way to stop paying for a server is to delete it, and that means losing all of the data on it.” With no commitment and no minimums they can’t have apps sitting on their gear hogging space for free. Plans from Mosso or Layered Tech offer a fixed price so you don’t have to worry about the cost of deploying VPS.

(Continued)

“… you can’t even write a file in your own directory with the (Google) app engine...”

Google’s service fits a particular niche, it simply can’t be compared to others like Mosso, GoGrid or The Grid Layer

Every other service allows for this functionality

“ (Go Grid’s) only way to stop paying for a server is to delete it, and that means losing all of the data on it.”

With no commitment and no minimums they can’t have apps sitting on their gear hogging space for free.

Plans from Mosso or Layered Tech offer a fixed price so you don’t have to worry about the cost of deploying VPS.

Fear, Uncertainty and Doubt! (Continued) “ No vertical scaling (you get a 1.7Ghz CPU and 1 GB of RAM, that’s it)” Layered Tech’s AppLogic based system gives full control over this. “ Support is non-existent.” Mosso and Layered Tech both offer 24/7 helpdesk support. LT even offers full management. “ You can’t build VM images.” Amazon allows images based on their standard Linux kernels LT’s platform allows this.

(Continued)

“ No vertical scaling (you get a 1.7Ghz CPU and 1 GB of RAM, that’s it)”

Layered Tech’s AppLogic based system gives full control over this.

“ Support is non-existent.”

Mosso and Layered Tech both offer 24/7 helpdesk support.

LT even offers full management.

“ You can’t build VM images.”

Amazon allows images based on their standard Linux kernels

LT’s platform allows this.

Fear, Uncertainty and Doubt! (Continued) “ Do you owe sales tax if your application touches down in a part of the cloud that’s in New York?” This issue would be identical to simply hosting on a dedicated server in NY “ It’s hard to know what things will end up costing.” Expect to pay a premium if you opt for no minimums and no commitment. Amazon, Google and GoGrid may be a bit difficult to predict initially, but should settle into a pattern over time. Mosso offers a flat rate plan good for many people. LT’s is also fixed cost.

(Continued)

“ Do you owe sales tax if your application touches down in a part of the cloud that’s in New York?”

This issue would be identical to simply hosting on a dedicated server in NY

“ It’s hard to know what things will end up costing.”

Expect to pay a premium if you opt for no minimums and no commitment.

Amazon, Google and GoGrid may be a bit difficult to predict initially, but should settle into a pattern over time.

Mosso offers a flat rate plan good for many people.

LT’s is also fixed cost.

The Bottom Line People throw out a ton of “generic” objections that only apply to one or two services. The Industry needs to do a better job of educating!

People throw out a ton of “generic” objections that only apply to one or two services.

The Industry needs to do a better job of educating!

How do I explain it to the masses?

In Very Simple Terms Cloud Computing Dedicated Hosting Chuck Norris Mini Me IS TO IS TO

Cloud Computing

Dedicated Hosting

Clouds and Virtualization Think of Cloud Computing as a sub-set of Virtualization. All Routinely called “Clouds”

Virtualization Options Abound Virtualization technologies are everywhere: Microsoft Hyper-V and Virtual PC 2007 Sun VirtualBox (Windows, Linux, Mac, OpenSolaris) VMware ESX, Server (GSX), Workstation, Fusion Parallels Workstation, Desktop And customers want hosted support for all of them!

Virtualization technologies are everywhere:

Microsoft Hyper-V and Virtual PC 2007

Sun VirtualBox (Windows, Linux, Mac, OpenSolaris)

VMware ESX, Server (GSX), Workstation, Fusion

Parallels Workstation, Desktop

And customers want hosted support for all of them!

Reasons to Virtualize Single or multiple dedicated machines can be virtualized: Add snapshots and backups Instantaneous provisioning of VMs Easy migration and upgrade paths Simplified management of multiple machines Automated fail-over

Single or multiple dedicated machines can be virtualized:

Add snapshots and backups

Instantaneous provisioning of VMs

Easy migration and upgrade paths

Simplified management of multiple machines

Automated fail-over

Virtual Machines Can Be Clustered! Clusters offer: Dedicated resources Fixed costs Enterprise grade (VMware, Microsoft, Sun) Limited Scalability Tightly coupled systems Single system image Centralized Job management & scheduling system

Clusters offer:

Dedicated resources

Fixed costs

Enterprise grade (VMware, Microsoft, Sun)

Limited Scalability

Tightly coupled systems

Single system image

Centralized Job management & scheduling system

Example of VM Clustering

Servers Can Be Combined In a Grid IBM defines grid computing as: "….all or some of a group of computers , servers and storage across an enterprise, virtualized as one large computing system .”

IBM defines grid computing as:

"….all or some of a group of computers , servers and storage across an enterprise, virtualized as one large computing system .”

Grid Computing Characteristics Grids offer: Dedicated resources Fixed costs High availability High scalability Multiple / independent Operating Systems

Grids offer:

Dedicated resources

Fixed costs

High availability

High scalability

Multiple / independent Operating Systems

Load Balancer ½ CPU / 64MB Ram / 20 MB Disk 3. Spare resources are used for redundancy and scalability. 4. Performance, reliability and value all improve. Grid Computing Example Treats multiple servers as a single “pool” of resources. Firewall ½ CPU / 64MB Ram / 20 MB Disk 2. Applications are allocated the exact hardware required. WWW 1 CPU 512 MB Ram 20 MB Disk WWW 1 CPU 512 MB Ram 20 MB Disk WWW 1 CPU 512 MB Ram 20 MB Disk Database 2 CPUs 4GB Ram 1 TB Hard Disk

Treats multiple servers as a single “pool” of resources.

Utility Computing Characteristics Can be built on dedicated, cluster or grid systems. Billing model based on resources consumed No minimums, no maximums Pay-as-you-go model One size fits all Generally little / no support No guarantees / SLA It’s just like the electric company!

Can be built on dedicated, cluster or grid systems.

Billing model based on resources consumed

No minimums, no maximums

Pay-as-you-go model

One size fits all

Generally little / no support

No guarantees / SLA

It’s just like the electric company!

Benefits of “Cloud” Technologies Cost savings are nice, but the real benefits come from the Virtualization features: Low barriers to entry Rapid deployment Increased functionality (ie – disaster recovery) Elasticity (rapid scalability) Simple exit strategy (switchability) As a result, 25% of new applications are being deployed in VMs, as compared to only 7% historically.

Cost savings are nice, but the real benefits come from the Virtualization features:

Low barriers to entry

Rapid deployment

Increased functionality (ie – disaster recovery)

Elasticity (rapid scalability)

Simple exit strategy (switchability)

As a result, 25% of new applications are being deployed in VMs, as compared to only 7% historically.

Summary Virtualization will rule the world. Grid, Cluster and Utility platforms are just large iterations of Virtualized infrastructure. Most complaints about Clouds are generalizations. Education is the key to channeling customers toward the right vendor. If you aren’t selling Cloud services yet, you need to strike a deal with a partner so you can!

Virtualization will rule the world.

Grid, Cluster and Utility platforms are just large iterations of Virtualized infrastructure.

Most complaints about Clouds are generalizations.

Education is the key to channeling customers toward the right vendor.

If you aren’t selling Cloud services yet, you need to strike a deal with a partner so you can!

Questions? Marketing “The Cloud” John Pozadzides Chief Marketing Officer Layered Tech [email_address]