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Getting The ROI Out


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Presentation by Yosu Cadilla at CloudCamp-in-the-Cloud about Cloud Computing ROI

Published in: Technology, Business
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Getting The ROI Out

  1. 1. Getting the ROI out of Cloud Computing Yosu Cadilla
  2. 2. Getting the ROI out of Cloud Computing How many people will I need? What are the necessary resources? Will it take long to deploy? How much is Cloud Computing going to cost?
  3. 3. The Premium and the Price Is this model really going to succeed? <ul><li>Massive hardware, economy of scale. </li></ul><ul><li>Less intermediary companies </li></ul><ul><li>Very effective management, reduced maintenance costs. </li></ul><ul><li>Specialized workforce, brings better service at a lower cost. </li></ul><ul><li>Reduced electricity bill. </li></ul><ul><li>Greener companies, less carbon balance. </li></ul><ul><li>Less &quot;under usage&quot; due to total virtualization. </li></ul><ul><li>From less than 30% usage to over 70% usage of resources. </li></ul><ul><li>Costs of Cloud Computing vs traditional computing are cut up to 50% </li></ul><ul><li>Amazon´s EC2 Reserved Instances cost less than comparable virtual machines on regular hosting companies. </li></ul><ul><li>Rackspace, launched Cloud Servers last July, starts at 7$/month per virtual machine. </li></ul>
  4. 4. ROI out on Deployment <ul><li>Deployment costs are ZERO. </li></ul><ul><li>Deployment is instant. </li></ul><ul><li>Lower IT Budget. Up to zero IT staff. </li></ul><ul><li>A company called Mashery, shared on a CloudCamp that they were able to build out their IT infrastructure up to 1000 machines without a single system administrator; the CEO indicated that they operated for two years on a total IT investment of less than US$100,000. </li></ul>
  5. 5. Risk Free <ul><li>Risk transfer back to the provider. </li></ul><ul><li>ZERO long-term upfront commitment. </li></ul><ul><li>If you are not satisfied with the results of your project, You can </li></ul><ul><li>just shut down the whole operation in one minute . </li></ul><ul><li>No hardware to relocate, no monthly fees due, </li></ul><ul><li>no renting debits are cumulated. </li></ul><ul><li>. </li></ul>
  6. 6. Cap-EX, Op-Ex and Capital availability <ul><li>The harder (or the more expensive) it is for you to acquire capital, the more beneficial payment over time becomes. </li></ul><ul><li>Moving from a capital expense to an operational expense can cut initial capital needs by 90%. </li></ul><ul><li>Depending on the internal financial processes a business unit may have easier access to expense or capital or even no access at all. </li></ul><ul><li>Now these beautiful and valuable projects can be funded with a credit card. </li></ul><ul><li>IT departments are more auto dependant. less dependant on the company quarter results and the stock drops. </li></ul>
  7. 7. ELASTICITY! <ul><li>Cloud Computing Platforms are elastic. </li></ul><ul><li>From development to production. </li></ul><ul><li>Real time response to demand. </li></ul><ul><li>Sharethis, had been picked up by a very popular website and had to scale from 100 to 3500 machines in a single day . Using Amazon's EC2 service, that was achieved easily. The next day, when things had quieted down, they took down many of these instances. Total investment in meeting this transitory spike was less than $200. </li></ul>
  8. 8. Massive Scalability <ul><li>Any number of servers can be ready, NOW! </li></ul><ul><li>Vastly accelerate your decision-making, </li></ul><ul><li>Just for the exact same cost. </li></ul><ul><li>The New York Times, needed to process 11 million articles; estimates outlined that hundreds of servers and about 4 Tb of storage would be necessary. With Amazon Web Services, with 100 EC2 instances and 4 terabytes of S3 storage. </li></ul><ul><li>The job was finished the next day with a total cost of $240. </li></ul><ul><li>IBM offers “Stream Computing” can analyze thousand of simultaneous data streams in real-time. </li></ul><ul><li>Offers: &quot;The ability to manage and analyze incoming data in real time. </li></ul>
  9. 9. Cloud is Liquid <ul><li>Cloud Computing infrastructure is LIQUID. </li></ul><ul><li>You can “cut and paste” your IT infrastructure. </li></ul><ul><li>You can actually move your full IT infrastructure from one cloud provider to another in just 10 minutes, while cloning it to 3 more datacenters at the same time. </li></ul><ul><li>99.999999 Reliability at no cost. </li></ul><ul><li>The reliability of a system with n redundant components, each with reliability r, is 1-(1-r)n. So if the reliability of a single data center is 99 percent, two data centers provide four nines (99.99 percent) and three data centers provide six nines (99.9999 percent) and so on… </li></ul><ul><li>A few minutes downtime can cost your business as much as a year of IT budget. </li></ul><ul><li>Now you can have 3 extra cloud datacenters “on stand by” (zero costs). </li></ul><ul><li>You don’t have to put all your eggs just in one basket anymore. </li></ul>
  10. 10. Let’s talk about it... <ul><li>Let’s build some ROI aware cloud </li></ul><ul><li>solutions... </li></ul>