Cloud Service Providers – Opportunity or Threat?Suresh Vasudevan – CEO, Nimble StorageFebruary 2013
Are Cloud Service Providers a Threat?   Nimble Storage is a vendor of enterprise storage systems   Enterprises are movin...
We Believe: The opportunity is larger than the threat             1. Deployments by cloud service providers are one of t...
Different Kinds of Service Providers Each segment has different requirements:            – Consumer SaaS providers       ...
Consumer SaaS Providers Aggregate consumer-spend into centralized shared  enterprise infrastructure Consumer application...
Enterprise SaaS Providers Aggregate SMB requirements into centralized shared  enterprise infrastructure Key customer seg...
Modern Hosting Companies Aggregate SMB spend into centralized shared  enterprise infrastructure Traditional hosting comp...
Rethinking Traditional Approaches   Cloud delivered IT solutions and applications create an opportunity   With regard to...
Efficiency   For end customers, making IT efficient is important as a way to    manage costs for the Enterprise   For se...
Flexibility in Scaling   The storage industry has traditionally deployed incremental    storage performance and storage c...
Rapid Recoverability   Service providers operate against stringent SLAs (Service    Level Agreements)   The notion of ni...
Dramatic Simplicity Service providers must manage the administrative cost of  operating large-scale multi-tenant data cen...
Integrated Security Gaining the trust of Enterprises through robust security  becomes a foundation for persuading them to...
Multi-Tenancy Always focused on optimizing efficiency Must be able to share infrastructure across multiple  users while ...
Conclusions Rapid increase in the number of deployments of Nimble  Storage arrays by service providers The key drivers: ...
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Cloud Service Providers: Opportunity or Threat?

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Over the last few months, numerous financial analysts and industry analysts have asked whether or not cloud service providers pose a threat to product manufacturers. They are surprised when we describe how deployments by cloud service providers are one of the fastest growing segments of our business. Not only are we acquiring dozens of customers in this segment, they are also some of our largest customers! Here's why Nimble Storage considers Cloud Service Providers as a great opportunity for our business.

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Cloud Service Providers: Opportunity or Threat?

  1. 1. Cloud Service Providers – Opportunity or Threat?Suresh Vasudevan – CEO, Nimble StorageFebruary 2013
  2. 2. Are Cloud Service Providers a Threat?  Nimble Storage is a vendor of enterprise storage systems  Enterprises are moving from on-premises IT to third-party providers of infrastructure – to “the cloud”  So lately we’ve been hearing questions like:  “Are cloud service providers a threat to your business, or an opportunity?”© 2013 Nimble Storage. 2
  3. 3. We Believe: The opportunity is larger than the threat  1. Deployments by cloud service providers are one of the fastest growing segments of our business  2. Given their significant storage and performance requirements, these are some of our largest customers  3. We’re at the very early stages of leveraging this opportunity Why?  Different kinds of service providers  Centralized shared infrastructure requires rethinking traditional approaches© 2013 Nimble Storage 3
  4. 4. Different Kinds of Service Providers Each segment has different requirements: – Consumer SaaS providers – Enterprise SaaS providers – Modern hosting companies© 2013 Nimble Storage 4
  5. 5. Consumer SaaS Providers Aggregate consumer-spend into centralized shared enterprise infrastructure Consumer applications that consumed end user equipment (PCs, PC applications, etc.) moving to the cloud – triggering a need for Enterprise infrastructure Some service providers build their own infrastructure (e.g., gmail), others leverage product manufacturers – Example: Yahoo Mail© 2013 Nimble Storage 5
  6. 6. Enterprise SaaS Providers Aggregate SMB requirements into centralized shared enterprise infrastructure Key customer segment – small businesses that would otherwise never invest in enterprise IT infrastructure SaaS companies end up aggregating SMB spend into centralized shared enterprise infrastructure Some build it on their own, most deploy best-of-breed infrastructure from product manufacturers – Examples: ServiceNOW, Salesforce© 2013 Nimble Storage 6
  7. 7. Modern Hosting Companies Aggregate SMB spend into centralized shared enterprise infrastructure Traditional hosting companies thrived on renting real estate, power and cooling Now they’re renting hypervisors (and the associated servers, networking, storage and other infrastructure) or renting virtual desktops, or renting DR infrastructure – Examples: Virtacore, Desktone© 2013 Nimble Storage 7
  8. 8. Rethinking Traditional Approaches  Cloud delivered IT solutions and applications create an opportunity  With regard to storage infrastructure, some of the dimensions that matter more are:  Efficiency  Flexibility in scaling  Rapid recoverability  Dramatic simplicity  Integrated security  Multi-tenancy© 2013 Nimble Storage 8
  9. 9. Efficiency  For end customers, making IT efficient is important as a way to manage costs for the Enterprise  For service providers, on the other hand, efficient IT infrastructure is the very essence of their business success  Lowering the cost of infrastructure allows them to price their services more competitively to gain market share and improve profitability© 2013 Nimble Storage 9
  10. 10. Flexibility in Scaling  The storage industry has traditionally deployed incremental storage performance and storage capacity in big “capital intensive” chunks at a time  What is needed is an approach that allows service providers to scale performance and capacity in small, low-cost increments  Thus making IT equipment costs more variable and aligned with revenues  Perhaps, an even more critical requirement is to avoid fork-lift upgrades of hardware and to be able to perform “rolling hardware upgrades” that are non-disruptive© 2013 Nimble Storage 10
  11. 11. Rapid Recoverability  Service providers operate against stringent SLAs (Service Level Agreements)  The notion of nightly backups and backup windows is simply not good enough  What is needed is the ability to provide hundreds of recovery points and rapid recovery from any such point for applications© 2013 Nimble Storage 11
  12. 12. Dramatic Simplicity Service providers must manage the administrative cost of operating large-scale multi-tenant data centers Most rely on extensive in-house automation that requires extensive APIs, deep integration with hypervisor vendors Traditional support model (hierarchical organization of level-1, level-2 and escalation engineers) will not suffice Vendors need sophisticated remote monitoring tools that recognize problems as they occur, and tools that allow for rapid problem diagnosis and problem resolution© 2013 Nimble Storage 12
  13. 13. Integrated Security Gaining the trust of Enterprises through robust security becomes a foundation for persuading them to move their data and applications to a third party This requires a much deeper investment in integrated security (as opposed to security as a separate layer) on the part of product manufacturers, even if they are not building security products© 2013 Nimble Storage 13
  14. 14. Multi-Tenancy Always focused on optimizing efficiency Must be able to share infrastructure across multiple users while simultaneously maintaining good quality of service Only way to drive superior economics© 2013 Nimble Storage 14
  15. 15. Conclusions Rapid increase in the number of deployments of Nimble Storage arrays by service providers The key drivers: – Unparalleled efficiency in simultaneously lowering the cost of capacity and cost of performance – Ability to scale in low-cost increments and scale non-disruptively – Superior data recoverability – Simplicity and remote support automation© 2013 Nimble Storage 15
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