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Building Great Companies on the Cloud
 

Building Great Companies on the Cloud

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    Building Great Companies on the Cloud Building Great Companies on the Cloud Presentation Transcript

    • Building Great Companies on the Cloud Roman Stanek Founder, CEO Good Data
    • Promise This presentation contains no “every cloud has silver lining” joke :-|
    • Who am I Roman - quot;Stanquot; at Starbuck's Technologist Entrepreneur (NetBeans, Systinet) Blogger (roman.stanek.org) Czech
    • What is happening to computing today is a revolution, the biggest upheaval since the invention of the PC in the 1970s. Nicholas Carr
    • quot;It's stupidity. It's worse than stupidity: it's a marketing hype campaign Richard Stallman Founder, Free Software Foundation
    • But we all struggle with the cloud definition...
    • Most of all the graphics artists...
    • Definition: Clouds are hardware-based services offering compute, network and storage capacity where: Hardware management is highly abstracted from the buyer Buyers incur infrastructure costs as variable OPEX Infrastructure capacity is highly elastic (up or down) McKinsey & Company
    • No, you cannot install cloud on your notebook.
    • Security & control
    • By a 5‐to‐1 ratio, companies trust internal IT systems over cloud‐ based technologies due to fear about security threats and loss of control of data and systems. Avanade Inc.
    • They are right... Streamload: On June 15, 2007 system administrator's script accidentally misidentified and deleted quot;good dataquot; along with the quot;dead dataquot; of some 3.5 million former user accounts and files.
    • Or are they? LAX Los Angeles 1,200 MIA Miami 1,000 JFK New York 900 ORD Chicago 825 EWR Newark 750 0 300 600 900 1200 10 U.S. airports with the highest weekly frequency of laptop loss Airport Insecurity: The Case of Missing & Lost Laptops, Ponemon Institute LLC
    • This get scary... Did not protect sensitive 65% information contained on laptop 57% Worry about losing their laptop Laptop contains 53% confidential company information 42% Data on laptop is not backed up 0 0.175 0.35 0.525 0.7 Airport Insecurity: The Case of Missing & Lost Laptops, Ponemon Institute LLC
    • Most likely causes of data breach? Negligent insiders 75% Outsourced data 42% Malicious insiders 26% Social engineering 2% Hackers 1% 0 0.2 0.4 0.6 0.8 2008 Study on the Uncertainty of Data Breach Detection,Ponemon Institute LLC
    • IT environment where data breaches occur Off-network devices 58% Networks 50% Mainframes 41% Paper files 39% Backups 18% 0 0.15 0.3 0.45 0.6 2008 Study on the Uncertainty of Data Breach Detection,Ponemon Institute LLC
    • Ability to detect the loss or theft of confidential information 31% 25% 18% 16% 10% Somehow Very confident Confident confident Not confident Unsure 2008 Study on the Uncertainty of Data Breach Detection,Ponemon Institute LLC
    • Amazon Security/ SLAs Multiple redundant sites SAS70 Amazon EC2 SLA - 99.95% 4 hrs, 22 min/year Amazon S3 SLA - 99.9%
    • Control: Plenty of startups solving this problem already
    • Cloud or No Cloud? For SMBs, data is safer in the cloud Secure, auditable, fully compliant Pick your cloud provider carefully
    • Technology
    • Acronyms don’t matter: Caches, bloom filters, bitmap indexes, column stores, distributed key/value stores and document databases
    • MapReduce law: If It Can Be Done in Parallel, It Will Be
    • ACID -> BASE Traditional approaches don’t scale BASE - basically available, soft state, eventually consistent: BigTable, SimpleDB, Cassandra, Dynamo
    • GoodData: Innovate vs. leverage? Processing Power Cloud makes ROLAP approach possible Elastic Scale IT builds for peak load, we don’t have to Multi-Tenancy Single instance across 1000s of customers Stateless Massive load balancing (shared nothing)
    • TechCrunch Effect
    • Public cloud classes AWS MS Azure Google AE Predefined CPU x86 .Net framework EBS, S3, SQL, Azure Storage SimpleDB store BigTable Network Declarative Automatic Fixed
    • Cloud APIs True SOA Loosely coupled - REST, Atom Encapsulate cloud services: Control APIs Data APIs Application Functionality APIs
    • Open Cloud Manifesto Prevent vendor lock-in “or” Limit innovation
    • Cloud economics
    • If you want to change the game, change the economics of how the game is played Alan M. Webber
    • Startups in the cloud Infrastructure labor savings No CAPEX: Less equity goes to VCs Unpredictable demand (up and down)
    • Succeed (or fail) faster $500k to start technology company Big bets aren't as big anymore Easier for startups to adapt to shifts Level playing field for startups
    • IT vs. Clouds Losing their monopoly on the infrastructure It’s all about economics
    • 1 email message $0.0001
    • Fixed pricing Most widely used pricing No supply/demand Simple, predictable AWS, Google App Engine: CPU, Storage, network traffic
    • Variable pricing Reserved instance price (AWS): “I have 10 instances running 24x7” Spot price/future price: “I want 1,000 instances at the end of the quarter” Off-peak pricing: “Run my MapReduce app 10 hours every day”
    • Cloud providers Economies of scale Utilization and efficiency SLAs Question: Long-term viability?
    • Private clouds Violate #2 of our cloud definition: Buyers incur infrastructure costs as CAPEX Virtualization on top of traditional enterprise IT stack Encapsulation of IT infrastructure Scale?
    • Economies of scale Technology Medium-sized DC Very Large DC Ratio $95 per Mbit/sec/ $13 per Mbit/sec/ Network 7.1 month month $2.20 per GByte / $0.40 per GByte / Storage 5.7 month month 140 Servers / >1000 Servers / Administration 7.1 Administrator Administrator HAMILTON, J. Internet-Scale Service Efficiency. In Large-Scale Distributed Systems and Middleware (LADIS) Workshop (September 2008)
    • 5 Public clouds + 500 Private clouds 505 Clouds in 2015
    • Business impact
    • Winners Google, Amazon.com Cisco SaaS vendors
    • Losers Big server vendors (HP, Sun, Dell) Monolithic app providers Microsoft
    • Real winners Innovation SMBs, Startups The little guy wins
    • Good Data: On Demand Business Intelligence Cloud + Web 2.0 metaphors Flickr for Data Simplicity & Collaboration
    • Company status 30 employees Development in Prague Sales & marketing in San Francisco Funded by industry luminaries www.gooddata.com
    • Thank you!