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The Economics of Cloud Computing

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The Economics of Cloud Computing

  1. 1 Addresses unpredictable application demand2 Fuels top-line growth3 Improves bottom-line economics Reduce Time to Market and Roll Out Capabilities for Less: Faster Provisioning Reduce TCO by Up to 50%+ ~$3,500/ - 54% 3 Months month Average From 90 days to minutes (Savvis) ~$1,610/ month Sources: Cisco IBSG, CBA, SMO, Commercial Sales, CSG, 2011 C97-706069-00 © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 1
  2. At least 12% of enterprise workloads will run on Flexibility and economics provide clouds globally by 20131 certainty in uncertain times - transition Workload Shift by 2013 (by Vertical) from CapEx to OpEx New business and technology2 20% capabilities for emerging digital workforce 15%3 Increasing adoption of cloud services 10% 5% 0% Professional Public Retail, Whol Healthcare Financial Manufacturing Services Sector esale, Services and Distribution SaaS IaaS Sources: Cisco IBSG, CBA, SMO, Commercial Sales, CSG, 2011 C97-706069-00 © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 2
  3. Data Center Traffic Quadruples from 2010 to 2015 5.0 4.5 4.8 ZB 4.0 3.5 Zettabytes / Year 3.7 ZB 3.0 2.5 2.9 ZB 2.0 2.1 ZB 1.5 1.5 ZB 1.0 1.1 ZB 0.5 0.0 2010 2011 2012 2013 2014 2015 33% CAGR 2010–2015C97-706069-00 © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 3
  4. Majority of Data Center Traffic Stays within the Data Center 5.0 Data Center-to-User 4.5 Data Center-to-Data Center 17% 4.0 Within Data Center 7% 3.5 Zettabytes / Year 3.0 2.5 76% 2.0 1.5 18% 1.0 5% 0.5 77% 0.0 2010 2011 2012 2013 2014 2015 33% CAGR 2010–2015C97-706069-00 © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 4
  5. Cloud DC Traffic Will Account for Over One-Third of Total DC Traffic by 2015 5.0 Cloud Data Center 4.5 4.0 Traditional Data Center 34% 3.5 Zettabytes / Year 29% 3.0 2.5 66% 2.0 1.5 11% 71% 1.0 89% 0.5 0.0 2010 2011 2012 2013 2014 2015 33% CAGR 2010–2015C97-706069-00 © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 5
  6. By 2014, >50% of All Workloads Will Be Processed in the Cloud 180 Cloud Datacenter Installed Workloads in Millions 160 Traditional Datacenter 140 57% 120 51% 100 80 60 21% 40 79% 49% 43% 20 0 2010 2011 2012 2013 2014 2015 22% CAGR 2010-15Source: Independent Analyst Shipment Data, Cisco AnalysisC97-706069-00 © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 6
  7. • For more information on Cisco’s cloud platform, visit: www.cisco.com/go/cloud• Riding the Cloud To Improve Your Top- and Bottom-Line Economics Download the Point-of-View Paper: www.cisco.com/web/about/ac79/docs/Cloud-Computing-Economics_IBSG.pdf• Economic Benefits of Cisco CloudVerse Download the White Paper: http://www.acgresearch.net/knowledge-insights/reports-whitepapers/economic-benefits-of-cisco-cloudverse.aspx• Media Alert : http://newsroom.cisco.com/press-release-content?type=webcontent&articleId=818098• On Twitter, follow @CiscoDC and the #CiscoCloud hash tag C97-706069-00 © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 7

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