Parallels APAC Summit 2011 Lance Crosby Keynote


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SoftLayer CEO Lance Crosby presents his keynote, "Hosting is Dead, Long Live Hosting," at 2011 Parallels APAC Summit.

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  • 1972This is Arpanet. Before Google, Facebook, Twitter, BitTorrent etc…18 insitutions sending email back and forth. That was more or less it.
  • 2010Google, Facebook,BitTorrent, YouTube etc..
  • Exhaustion of the IPv4 pool does not mean that the internet stops – all the IPv4 addresses in use will continue to operate. Began looking at IPv6 in 2008Received ARIN allocation of /32IPv6 initiative driven by long term planning, SoftLayer is an early adopterBeta tested IPv6 customers in fall 2008, plus hardware and firmware upgradesJanuary 21, 2009 - GA is currently a top 50 IPv6 website by both www host and raw domain
  • Exhaustion of the IPv4 pool does not mean that the internet stops – all the IPv4 addresses in use will continue to operate. Began looking at IPv6 in 2008Received ARIN allocation of /32IPv6 initiative driven by long term planning, SoftLayer is an early adopterBeta tested IPv6 customers in fall 2008, plus hardware and firmware upgradesJanuary 21, 2009 - GA is currently a top 50 IPv6 website by both www host and raw domain
  • Enough about SoftLayer….I came across this chart in Wired magazine in the fall of last year. I thought it was an astonishing graphic and really spoke to where I see the world going. The net of this chart is that the nature of traffic flowing over the internet has changed dramatically. We are moving from a world that was web dominant to one the is dominated by internet based applications. Consider the following:Facebook received nearly 9% of all internet visitors between January and November of 2010 and Youtube received 2.7% of all visitors over the same time period.Netflix, by some estimates makes up to 20% of all internet traffic during peak hours in the US. That is a staggering number.iTunes has ‘shipped’ over 10 billion songs. It rents over 50,000 movies daily. The iTunes app store tells a similar story - it has shipped over 7 billion applications and it has just opened its new specialty shop, selling applications for Mac laptops and desktops.Add to this the Android Market and another 2.5 billions apps.The interesting thing about android and Itunes is the fact that a lot of this traffic is moving over wireless networks.
  • Not only is the mix changing, but it is forecast to grow at a crazy rate over the next 4 years. Cisco has the world finishing 2014 with 63.9 exabytes of traffic per month. And in case you did not know, 1 exabyte is equivalent to 1 BILLION gigabytes. Man, I remember the days of 2400 baud modems and bulletin boards. And that was not that long ago… in today’s world I am constantly plugged in where ever I am, and often with multiple devices at hand – iPhone, iPad and PC are all at my fingertips. My nieces and nephews are more adept at most of this stuff than I am and they are mostly under 10. I am excited to see what direction they pull us in.
  • This is a global thing – the so-called ‘developed world’ is not the only place where this is going on. While we might still be driving most of the traffic, the rest of the world is catching up.
  • Consider some of these stats that were pulled from the World Bank…India and China paint very interesting pictures and I think that the key driver in those countries will be the mobile device. There are already 707 million wireless subscribers in India and another 833 million in China. Today many of these users are getting by with what we would likely consider to be rudimentary devices featuring a flashlight as the killer app. I think that is going to change as we begin to see less expensive and more powerful mobile services begin to penetrate the market place. This will drive significant traffic over the next 5 years. And you can be guaranteed that there is an Indian Facebook or Twitter out there. We are constantly looking for companies like this – not to invest in, but to help grow by providing a sold, scalable infrastructure for their efforts.
  • Accelerate new product launches: the Planet brought us much more than revenue and people. We have been able to fill out our service portfolio, but with a SoftLayer twist…speak to Managed and Customer Owned Devices?Continued enhancement of existing products and features: We continue to make life better for our customers by improving what we already do. The marketplace is innovating along with us and we constantly look for new ways to incorporate this innovation into our product offerings. This week’s announcement to introduce Parallels Automation into our product set is a great example of this. As is??? Automate, automate, automate: If we are doing things more than once, we need to automate and streamline them. The end result is that we place more power in the hands of our customers and we are better able to run our business. We do this better than anyone else in the business.Expand our footprint: We continue to expand operations in the US – our Seattle and Washington, DC locations have expanded and we are opening (have just opened) a data center in San Jose. A quick look at our customer base shows that we are not only a provider of service to North American businesses. Over 35% of our business is generated in Europe, Asia and South America and we believe that opening operations in region is a great move for us. We are finalizing dates at present, but we will be opening the doors in Asia and Europe this year. South America will follow next year.Network, network, network: The network is as important to us as the data center. The DC is a pretty meaningless asset if we do not have a rock solid public/private network infrastructure in place. We spend a lot of time thinking about how we can make the network better for our customer – this philosophy will guide our efforts in Europe and Asia going forward.
  • Parallels APAC Summit 2011 Lance Crosby Keynote

    1. 1. Hosting is Dead; Long Live Hosting<br />Lance Crosby, CEO SoftLayer Technologies<br />
    2. 2. History of Hosting<br />c. 1995 – Shared Hosing<br />c. 1998 – VPS Hosting<br />c. 2000 – Dedicated Hosting<br />c. 2002 – Managed Hosting<br />c. 2005 – Virtualized Hosting<br />Current – Cloud Hosting<br />
    3. 3. Cloud Hosting<br />Cloud is NOT a technology - Cloud is a marketing term<br />Cloud is – On-demand delivery with consumptive billing<br />On-Demand? <br />Weeks<br />Hours<br />Minutes<br />Real-time<br />Consumptive Billing?<br />Years<br />Hours<br />Minutes<br />Seconds<br />
    4. 4. So Cloud is………<br />The single greatest ecosystem in the world. A combination of <br />Shared Hosting<br />VPS Hosting<br />Dedicated Hosting<br />Managed Hosting<br />Virtualized Hosting<br />
    5. 5. Cloud Fundamentals<br />On-Demand<br />Consumptive Billing<br />Automated<br />Scalable<br />Real time – no down time<br />Flexible<br />API Driven<br />Global<br />
    6. 6. Future of Hosting / Cloud<br />Hosting MUST shift and adapt to the customer needs and demands<br />Existing technologies will continue to be the foundation<br />New technologies will emerge and be adapted quickly<br />Successful Businesses (end users) will use a hybrid of technologies<br />Successful Hosts – shift from simple hosting to being the fundamental platform<br />What technology wins? - all of them<br />
    7. 7. The Internet Then…<br />Source:<br />
    8. 8. The Internet Now….<br />
    9. 9. SoftLayer Then (circa 2009)<br />
    10. 10. SoftLayer Now (2011)<br />
    11. 11. How We Use the Internet is Changing<br />Source: Wired Magazine August, 2010<br />Source: Wired Magazine, September 2010<br />
    12. 12. Usage Continues to Grow at Great Pace<br />Global IP traffic grew 45% in 2009 to reach an annual run rate of 176 exabytes per year or 15 exabytes per month.<br />The average monthly traffic in 2014 will be equivalent to 32 million people streaming Avatar in 3D continuously for a month.<br />Mobile data traffic will double every year through 2014, increasing by 39 times between 2009 and 2014.<br />Video on demand traffic will double every two and a half years through to 2014. Internet video alone will account for 57& of all consumer traffic in 2014.<br />Global IP traffic will quadruple from 2009 to 2014 at a CAGR of 34%.<br />1 exabyte = 1 billion gigabytes<br />
    13. 13. Without Respect for Geography<br />IP traffic in the Middle East and Africa will reach 1 exabyte per month at a CAGR of 35%.<br />IP traffic in Latin America will reach 3.5 exabytes per month by 2014 at a CAGR of 51%.<br />IP traffic in Central and Eastern Europe will reach 2.5 exabytes per month by 2014 art a CAGR of 38%<br />IP traffic in Japan will reach 4 exabytes per month by 20124 at a CAGR of 32%.<br />IP traffic in Western Europe will reach 16 exabytes per month by 2101 ata CAGR of 36%.<br />IP traffic in APAC will reach 17 exabytes per month by 2014 at a CAGR of 35 %.<br />IP traffic in North America will reach 19 exabytes per month by 2014 at a CAGR of 19 %.<br />1 exabyte = 1 billion gigabytes<br />
    14. 14. International Statistics<br />Country<br />Pop (M)<br />GDP ($B)<br />GDP/ Capita ($)<br />Internet Penetration<br />Mobile Devices(M)<br />Europe<br />East. Europe<br />Asia/Oceania<br />S.<br /> America<br />Source: World Bank, various others<br />
    15. 15. The Opportunity Ahead is Immense<br /> Source: IDC (2011)<br />15<br />
    16. 16. What Does 2012 Hold for SoftLayer?<br /><ul><li>Accelerate new product launches
    17. 17. Innovate or die!
    18. 18. Automate, automate, automate
    19. 19. Expand our controls (API, mobile apps, control panel)
    20. 20. Network, network, network</li></li></ul><li>Hosting is dead; long live Hosting…<br />17<br />
    21. 21. Who is SoftLayer?<br /><ul><li>SoftLayer is the world’s largest privately held hybrid hosting company
    22. 22. SoftLayer and The Planet merged in the second half of 2010
    23. 23. 320+ million in revenue, 130+ million in EBITDA
    24. 24. More than 100,000 physical servers with capacity for 150,000 servers
    25. 25. More than 23,000 customers in 140 countries
    26. 26. Data centers in 5 US cities, Singapore and Amsterdam on an 16-node global MPLS redundant network
    27. 27. Everything we sell is Cloud – dedicated, virtualized, cloud, ancillary services
    28. 28. SoftLayer is a global platform for on-demand compute resources</li></li></ul><li>Q&A<br />19<br />