Enterprise Cloud Myth(s)

Enterprise Cloud MythsRandy Bias @randybiasMarch 8th @cloudscalingCloud Connect 2011

Are Enterprise (IaaS) Clouds a Mistake? Public or Private Clouds Built in the ‘Enterprise’ style

The Myth“We need Enterprise Clouds because ...”

The Myth ContinuedEnterprises need more ... FUD??

The Fundamental Assumption in the Myth vs. Legacy Apps Greenﬁeld Apps

Enterprises Love Commodity Clouds

There Are Two Battles WagingCommodity CloudsEnterprise Clouds

The Battle LinesPublic vs. PublicPublic vs. Private

The Error in Cloud as “Outsourcing” vs. Public Private vs.Where are the cost savings? “multi-tenancy?”

The Enterprise ‘No Clothes’ Moment ...Where is the enterprise cloud business model equivalent of Amazon Web Services?

The Amazon Model is Winning$1.0B$0.5B $0B 2007 2008 2009 2010 2011 $300M $150M $0M 2009 2010 2011 2007 2008 Source: Public estimates from Cloudscaling/UBS & RAX earnings statements

AWS 5-year Projected Revenue at 100-50% CAGR$11B $8B $6B $3B $0B 2009 2010 2011 2012 2013 2014 2015 2016 Source: Public estimates from Cloudscaling & UBS + Cloudscaling estimates

AWS Growth & Momentum is Staggering S3 Published Growth Numbers 700B 655 525B 350B 175B 262 102 0B 3 14 40 Q4’06 Q4’07 Q4’08 Q4’09 Q4’10 Q4’11 Source: Public AWS blog & PR announcements

The Starkest Example Possible (‘Private’ Hosting vs. Public Cloud) Q/Q % growth rates 40% 30% 20% 10% 0%Q4’08 Q1’09 Q2’09 Q3’09 -10% Q4’09 Q1’10 Q2’10 Q3’10 Q4’10 RAX Cloud RAX HostingSource: Public RAX earnings statements

Commodity Cloud as % RAX Total Revenue 20% 13% 7% 0% 2007 2008 2009 2010 2011Source: Public RAX earnings statements

The Punchline?Enterprise Clouds Have Greatest Investment $30B $23B $15B $8B $0B 2009 2010 2011 2012 2013 Commodity Cloud Enterprise Cloud Source: Cloudscaling estimates based on public data (conservative)

What’s Different About Commodity?Attribute Commodity EnterpriseH/W Cost OptimizationHomogeneous &standardizedDesign-for-FailureSelf-service, low frictionScale EngineeringOpen SourceCloud-oriented Biz Model

Initial Capital Expense: Enterprise vs. Commodity Cloud $1,892 $2,000H/W Cost per $1,500Sellable‘VMU’ (1GB $1,000RAM, 1 vCore) $500 Commodity $225 Enterprise $0 Source: Cloudscaling conﬁdential ﬁnancial models for IaaS clouds

Labor Operational Expense Enterprise (300:1) vs. Commodity Cloud (1500:1) Servers : IT Headcount $150M $113M $75M $38M $0MYear 1 Year 2 Year 3 Year 4 Year 5 Commodity Enterprise Source: Cloudscaling estimates based on known IaaS deployments

The Evidence Suggests ...Go CommodityServe Greenﬁeld “Cloud-ready” appsEmbrace the Change

http://cloudscaling.com	545
http://www.cloudscaling.com	117
http://www.cloudbook.net	73
https://jujo00obo2o234ungd3t8qjfcjrs3o6k-a-sites-opensocial.googleusercontent.com	17
http://cloudscaling	9
http://twitter.com	4
http://home.brunswickgroup.com	3
http://irq.tumblr.com	2
http://cloudbook.net	2
http://preacherspen.org	1
http://dev.cloudscaling.com	1
https://cloudscaling.com	1
http://blog.sarathonline.com	1
http://www.mefeedia.com	1
http://cursodepresentaciones.blogspot.com	1
http://www.ewavemd.com	1
http://dashboard.bloglines.com	1

Enterprise Cloud Myth(s)

by Randy Bias on Mar 25, 2011

Accessibility

Categories

Tags

Upload Details

Usage Rights

17 Embeds 780

Statistics

Enterprise Cloud Myth(s) — Presentation Transcript