CirrusDB Cloud Effect

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Cloud computing helps start up companies get off the ground quickly without any capital investment with the ability to scale as the business grows. Established companies can cut cost with cloud computing.

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CirrusDB Cloud Effect

  1. 1. Cirrus DB www.cirrusdb.com The Cloud Effect
  2. 2. Trends during current recession IBM Gives Cloud Computing a Seal of Approval “As the recession puts pressure on tech spending, many companies are turning to open-source software to handle more IT tasks” – Business Week Growth in U.S. tech spending may contract to 0.9% in 2009. IT slow down helps new technologies like cloud computing – IDC Open source providers like “Sugar CRM”, “Digium” and “Zenoss” have posted record profits in 2008 – Business Week 2 CIRRUS DB
  3. 3. Flexible financial models are emerging in IT Off Premises Dedicated Off Premises Shared DeliveryModels Managed Operations Utility Services Fixed Mixed Variable On Premises On Premises Utility DeliveryModels Financial Models Traditional IT Capacity on Demand 3 CIRRUS DB Source: IBM
  4. 4. Hardware prices are rapidly declining, making labor and software key cost saving lever through outsourcing X86 Servers $6,789 $6,685 $4,108 $3,950 Average Selling price in $ -42% 70 60 38 Estimated Total Cost of Ownership per Server in $ Labor Non Labor 100% = $9,900 $6,500 $4,700 Wintel Servers $9,405 $6,449 $4,116 $3,850 1995 2000 2005 2008 1995 2000 2005 2008 -59% 70 62 30 40 2000 2008 2010 forecast Without Virtualization With Virtualization 4 CIRRUS DB Source: IDC
  5. 5. According to McKinsey & Company only a sliver(~7%) of the Managed Infrastructure services market has been tapped 34% of the 141 CIOs surveyed expect to outsource some infrastructure services over the next three years Improved IT effectiveness Increase utilization of data Peace of mind Advantages Does your organization currently offshore or plan to offshore any of the following infrastructure work? Currently Offshore Currently Offshore and/or plan to Offshore Respondents who have off shored a fraction of their infrastructure 10 27 Stabilization Secure Optimization Reduced labor costs 24 22 18 17 15 13 45 45 41 41 36 33 Help Desk Networks Servers End User Devices Mainframe s Storage Respondents who have planned to off shore within the next three years 2006 2007 2006 2007 19 34 5 CIRRUS DB Source: IDC
  6. 6. Cloud computing facilitates service on demand for IT organizations Complex Infrastructure Physical Virtualization CloudInfrastructure Sprawl IT assets & datacenters kept growing Desperate system tools Inconsistent processes Soaring IT & energy costs Physical Consolidation Consolidate IT assets & datacenters Standardize and centralize management Streamline processes with ITIL best practices Energy saving – Phase out inefficient HW Virtualization Virtualize infrastructure - increased system utilization Unify virtual & physical mgmt Promote resource sharing across organization Energy saving – maximize effective use Cloud Service oriented architecture infrastructure Rapid provisioning of IT resources, massive scaling Dynamic service mgmt Energy saving via auto workload distribution 6 CIRRUS DB Source:IBM
  7. 7. Cloud computing adds flexibility and cost effective models for IT and is experiencing tremendous growth Amazon’s Cloud services has far surpassed traditional offerings Eliminates infrastructure constraints Turns upfront Cap-Ex into Op-Ex Brings software to market faster Applications run unchanged in a virtual lab Enables global team collaboration with a shared virtual data center Accelerates provisioning time with a self- Advantages CIRRUS DB7 Accelerates provisioning time with a self- service model Increases software quality and predictability Reduces server sprawl Creates pre-production 'sandboxes' to test the impact of production changes Allows IT operations teams to focus on production uptime Source: AMAZON
  8. 8. In-house Vs Cloud Traditional in-house model Database in a cloud Time to Terabyte Weeks to purchase, install and configure hardware and software Immediately available - Hours from sign-up to data loading Start-up Costs/Risk Server hardware, SAN, DBMS software (>$200,000USD) 1 month fee ($500+) On-going costs Maintenance fees, depreciation expense, manual administration overhead Monthly fee Data Center Floor and rack space, cooling and power None CIRRUS DB8 Data Center Overhead Floor and rack space, cooling and power costs None Scalability Scale painfully by migrating to new hardware or DBMS. Must often over-buy up front to accommodate future growth. Scale seamlessly, as needed, by adding instances to cluster (or removing them) Purchase Approval Complex process; funded via capital expenditure budget and requiring a 3- year ROI model Funded via departmental operating expenditure budget requiring a 1- month ROI model
  9. 9. Open Source adoption is growing and 26% of them have more than 25% of their apps running on open source Lower software costs — Open source solutions generally require no licensing fees. The logical extension is no maintenance fees. The only expenditures are for media, documentation, and support, if required. Simplified license management — Obtain the software once and install it as many times and in as many locations as you need. There’s no need to count, track, or monitor for license compliance. Lower hardware costs — In general, Linux and open source solutions are elegantly compact and portable, and as a result require less hardware power to accomplish the same tasks as on conventional servers (Windows, Solaris) or workstations. The result is you can get by with less expensive or older hardware. Escape vendor lock-in — Frustration with vendor lock-in is a reality for all IT managers. In addition to ongoing license fees, there is lack of portability and the inability to customize software to meet specific needs. Open source exists as a declaration of freedom of choice. Advantages of using Open Source Databases 9 CIRRUS DB Source: IDC
  10. 10. Open Source databases has been projected to grow and is widely implemented with good performance & TCO Google Lufthansa NASA Caterpillar Sabre Holdings Texas Instruments UPS Sunpower Zappos Booking.com Shannon Medical Center Open Source DB Success Stories Database Growth Projection 10 CIRRUS DB Source: Forrester
  11. 11. Managed Services and Cloud Database saves 13.5% and 29% over Internal IT respectively Internal IT Managed Services The Cloud Capital Investment $40,000 $0 $0 Setup Costs $10,000 $5,000 $1000 Monthly Services $0 $4,000 $2,400 Monthly Labor $3,200 $0 $1,000 CIRRUS DB11 Monthly Labor $3,200 $0 $1,000 Cost Over 3 Years $149,000 $129,000 $106,000 Assumptions I assume fairly baseline, server-class systems with a good amount of RAM and on-board RAID5 such as a Dell 2950 and a good load balancer. The 3-year cost assumes a 10% cost of capital. I also assume a very cost-efficient managed services provider.
  12. 12. What more? Forrester estimates that 80% of application requirements can be met using only 25% of the features and functionality that closed source commercial databases offer, which equates to about 60% of the feature set of a typical open source database. Therefore, open source databases are ready to support approximately 80% of business applications 12 CIRRUS DB
  13. 13. Visit www.cirrusdb.com for CIRRUS DB13 Visit www.cirrusdb.com for more information

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