AskLance

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Crosby’s "Profit from the Cloud" presentation will specifically address important questions asked by those in the industry while providing some insight into creating and building a high growth hosting company.

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AskLance

  1. 1. Parallels Summit: Innovate, Optimize, Grow<br />Feb ‘10<br />Lance Crosby, CEO<br />SoftLayer® Technologies<br />lcrosby@softlayer.com<br />http://twitter.com/lavosby<br />http://twitter.com/softlayer_news<br />
  2. 2. Access the presentation on:<br />www.slideshare.net/SoftLayer_news/asklance<br />
  3. 3. Innovate, Optimize, Grow<br />A quick look at the last 12 months in the hosting industry. <br />The worst recession and economic collapse in history.<br />Survived<br />Changed our offerings, pricing, and business models to meet market needs.<br />Evolved<br />Brought many new products to market, including leading the charge into cloud services.<br />Innovated<br />As individual companies and as an industry we have excelled in a time of panic.<br />Grew<br />
  4. 4. Innovate, Optimize, Grow<br />So, what does the future hold?<br />If you can’t be good at everything, what should you be good at? <br />Eco-systems<br />90% of all servers sold are NOT hosted!! Stop competing against each other. <br />Opportunity<br />How can we (as individuals and an industry) stay ahead of the market and increase awareness?<br />Innovation<br />How do I scale my business to take advantage of the opportunity in the market? <br />Scale<br />
  5. 5. SoftLayer® Value Statement<br />SoftLayer Delivers Innovative World Class, On-demand, Infrastructure Services.<br />We lead the industry, bringing solutions to market before others realize the need for them.<br />Innovation<br />We push complete control to the end user to create the virtual data center experience.<br />Empowerment<br />We automate every single facet of the data center environment to bring efficiency and standardization.<br />Automation<br />We bring together hardware, software, security, networking, and storage in a single easy to use on-demand service.<br />Integration<br />
  6. 6. SoftLayer® Difference<br />Automated Services and Standardized Solutions<br />Customer-controlled, automated management of core functions including OS installs and reloads, reboots, software installs, network management, monitoring, load balancing, firewall management, and more.<br />Industry-Leading Customer Portal and Open API<br />Direct access to more than 150 backend systems and activities, executed without any human intermediation. Mature API – over 1500 and growing<br />Industry Exclusive Private Network<br />Server-to-server communication, out-of-band management, and unlimited data transfer via VPN over dedicated carriers segregated from our Public Network.<br />Integrated Geographical Diversity<br />Three data centers connected via private, 10G point-to-point connections, and integrated through proprietary automated tools. Customers Choose<br />True Virtual Data Center Services<br />Innovative infrastructure, solutions, and automation capabilities provide unique advantages for virtualized solutions and a truly virtual data center.<br />
  7. 7. Innovate: Fully Integrated Environments<br />SoftLayer Provides the Only Completely Integrated Solution in the Industry.<br />Dedicated servers, virtualized environments, and cloud solutions all operate together seamlessly to create an on-demand solution that can be scaled in real time.<br />
  8. 8. Optimize: Automation is the Key<br />The Physical Server is the Fundamental Building Block to All Technologies.<br />
  9. 9. Grow: AKA SoftLayer® History<br />
  10. 10. Results: After 4 Years of Operations…<br /><ul><li>$52 million in revenue for 2008
  11. 11. $83.5 million for 2009
  12. 12. $110 million annualized run rate (Feb 10)
  13. 13. $1M in annualized revenue added every 10 days</li></ul>Financial<br /><ul><li>175 employees</li></ul>Employees<br />Data Centers<br /><ul><li>Dallas: 18,500 square feet raised floor
  14. 14. Seattle: 15,000 square feet raised floor
  15. 15. Washington DC: 10,000 square feet raised floor
  16. 16. Capacity of 45,000 servers across current facilities
  17. 17. More than 5,800 in over 110 countries
  18. 18. More than 25,000 deployed servers
  19. 19. Average of 4 servers per customer
  20. 20. Revenue of ~$1,600 per customer</li></ul>Customers<br /><ul><li>300+ GB of connectivity
  21. 21. 8+ network providers and hundreds of peers
  22. 22. Sustained traffic of over 80Gbps</li></ul>Network<br />
  23. 23. SoftLayer® 2009 Product Launches<br /><ul><li>CDN Enhancements
  24. 24. Cloud Storage
  25. 25. Native IPv6
  26. 26. SUSE O/S
  27. 27. SSD as Storage Option</li></ul>Q1 – 2009<br /><ul><li>Cloud Computing
  28. 28. Image Management
  29. 29. Storage Network
  30. 30. WAN Acceleration</li></ul>Q2 – 2009<br /><ul><li>SSL Certificates
  31. 31. API Enhancements
  32. 32. Evault Bare Metal Restores
  33. 33. NetScaler
  34. 34. WebsiteSpark (Microsoft)</li></ul>Q3 – 2009<br /><ul><li>Private and Bare Metal Cloud
  35. 35. Data Center Expansion in DAL, SEA, WDC</li></ul>Q4 – 2009<br />
  36. 36. Our Plan to Innovate, Optimize & Grow<br />Innovate<br /><ul><li>Accelerate new product launches
  37. 37. Enhance existing products with new features and capabilities</li></ul>Optimize<br /><ul><li>Drive automation across all business functions
  38. 38. The only way to scale is to eliminate redundant processes through automation</li></ul>Grow<br /><ul><li>Bring all of our services closer to customers
  39. 39. Expand our geographical footprint
  40. 40. Network, network, network</li></li></ul><li>SoftLayer® 2010 Product Roadmap<br />Q1 – 2010<br /><ul><li>2-Factor Authentication
  41. 41. XenServer Essentials
  42. 42. VMWare ESX
  43. 43. Cloudkick Integration
  44. 44. Data Center Expansion – San Jose, CA
  45. 45. Nationwide Network Expansion
  46. 46. VPN & DNS Geographic Expansion
  47. 47. Public API
  48. 48. Parallels Bare Metal Server
  49. 49. White Label Portal
  50. 50. Mobile Applications – iPhone, Android, BlackBerry</li></ul>Q2 – 2010<br /><ul><li>Automated Managed Services
  51. 51. Automated Colocation
  52. 52. AutoScaling Cloud
  53. 53. Portal Refresh</li></ul>Q3 – 2010<br /><ul><li>Cloud Appliances
  54. 54. PCI Compliance Services
  55. 55. Enterprise Software Integration
  56. 56. Data Center Expansion - Europe</li></ul>Q4 – 2010<br />
  57. 57. Question / Answer<br />
  58. 58. Ask Lance<br />What’s the secret to building a high growth start-up?<br />Question<br />Answer<br /><ul><li>Write your business plan
  59. 59. Create scalable systems
  60. 60. Diversify your personnel
  61. 61. Stop and look for mistakes</li></li></ul><li>Ask Lance<br />What’s going to happen to pricing in hosting? <br />Will the current high margins in cloud turn hosting into<br />into a commodity?<br />Question<br />Answer<br /><ul><li>It’s too early to head into price competition
  62. 62. New market with lots of growth ahead
  63. 63. And it is critical to understand CapExvs Margin trade-offs
  64. 64. Understand the trade-off between building and buying your own cloud</li></li></ul><li>With the Right Tools, Cloud Can Be Profitable<br />Don’t Rush to Lower Prices – Rush to Raise Margins<br />Dedicated Server<br />Hardware<br />$4,000 in fully loaded CapEx<br />$300 in MRR<br />13 month payback<br />Cloud Server<br />Hardware<br />$1,200 in MRR<br />5 month payback<br />$6,000 in fully loaded CapEx<br />
  65. 65. Ask Lance<br />What’s the internal mantra at SoftLayer regarding<br />growth?<br />Question<br />Answer<br /><ul><li>Challenging, but not overwhelming</li></li></ul><li>Ask Lance<br />How do you accurately guess what customers want?<br />Question<br />Answer<br /><ul><li>Put yourself in the position of the customer and then build a menu that will satisfy that appetite.
  66. 66. Example… </li></li></ul><li>Give the People What They Want<br />Think Like a Customer.<br />
  67. 67. Ask Lance<br /><ul><li>As hosting companies, we generate a lot of revenue from bandwidth. What’s the future of that as an offering?</li></ul>Question<br />Answer<br /><ul><li>Are you a telco? Or are you a hosting or managed services company?
  68. 68. We see bandwidth becoming both relevant and irrelevant in the next 24 months
  69. 69. Relevant… because customers will drive bandwidth requirements through the roof
  70. 70. Irrelevant… because it’s going to become the handle not the blade</li></li></ul><li>Ready for “Free” Bandwidth?<br />Addition of 7 PoPs and a New Data Center in San Jose<br />
  71. 71. Ask Lance<br />What’s the deal with IPv4 and IPv6?<br />As a hosting company, should this concern me?<br />Question<br />Answer<br /><ul><li>IPv4 is a limited resource and we are about to run out. Sometime in the next 12-24 months allocations will be reduced.
  72. 72. Shifting to IPv6 is possible, but it take planning and effort.
  73. 73. Why would you launch cloud without IPv6?</li></li></ul><li>Ask Lance<br />How do I scale my business to take advantage of the<br />opportunity in the market?<br />Is debt for capex a good idea?<br />Question<br />Answer<br /><ul><li>2010 looks to be a solid year. IT spending is rising. Projects are accelerating, but capex is still very limited
  74. 74. Build an opex oriented business and leverage partners to create scale</li></li></ul><li>Ask Lance<br /><ul><li>Why do anything? I’ve built a good business over the past 10 years, so why change now?</li></ul>Question?<br />Answer<br /><ul><li>Traditional hosting isn’t dead (yet)
  75. 75. The hype of cloud in late 2008 was turned into a reality by the collapse of the global economy
  76. 76. The pace of change in hosting has never been faster than what we will see in the next 24 months</li></li></ul><li>Ask Lance<br />How can small hosting companies stay ahead of the<br />market and larger competitors?<br />Question<br />Answer<br /><ul><li>Define your customers and strategic advantage and then focus on that
  77. 77. Smaller companies move faster than larger ones
  78. 78. Come together as an industry and work together
  79. 79. Our focus should be servers in closets not each other</li></li></ul><li>Ask Lance<br />As a business leader, how do you prepare for change<br />that may be hard to predict?<br />Question<br />Answer<br /><ul><li>Start with a great team and study everything around you.
  80. 80. And ask yourself how far ahead of the curve you want to be in delivering services
  81. 81. Trend-spotting is not easy and has high risk.</li></li></ul><li>Ask Lance<br />Is cloud for real? <br />Or is this just another buzzword fad?<br />Question<br />Answer<br /><ul><li>The word may change meaning, but the concept is here for good.
  82. 82. It doesn’t matter if you are an _aaS, a Grid, a Utility, or a Cloud, just understand the implication for your business and find a way to participate.</li></li></ul><li>Ask Lance<br /> How do I make big revenue from hosting? What should I do if I am already a SoftLayer customer and have a web hosting business?<br />Twitter Q#1<br /> How does SL see themselves in a year or 2, ahead of the competition technology wise, or are there any massive things planned?<br />Twitter Q#2<br />
  83. 83. Thank You!<br />Lance Crosby, CEO<br />SoftLayer® Technologies<br />lcrosby@softlayer.com<br />http://twitter.com/lavosby<br />http://twitter.com/softlayer_news<br />

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