Cloud services are critical sources of speed and agility, and have evolved beyond the simple benefits of cost reduction. Cloud helps companies profit from disruption by allowing innovation in both the front and back office. This Digital Realty webinar features Michael Bohlig (@bohlig), KC Mares (@kcmares) and Forrester Principal Analyst Dave Bartoletti (@davebartoletti). For more information visit http://www.digitalrealty.com

1. 17 September 2014
State of Cloud and
the Data Center
Where we are, and
where we’re going
September 16, 2014
Featuring Dave Bartoletti,
Forrester Research, Inc.

2. Introducing today’s presenters:
2
KC Mares
Product Marketing,
Digital Realty
@kcmares
Dave Bartoletti
Principal Analyst,
Forrester Research, Inc.
@davebartoletti

3. Q&A Moderator:
3
Michael Bohlig
Director of Strategic Alliances,
Digital Realty
@bohlig

4. © 2014 Forrester Research, Inc. Reproduction Prohibited 4
Cloud Is Now. The Question Is How?
Manage digital disruption or be disrupted

5. © 2014 Forrester Research, Inc. Reproduction Prohibited 5
Cloud is the engine of digital disruption
• Digital disruption means committing to
innovate in both the front and back office
• Cloud services are critical sources of
speed and agility, not just cost reduction.
CLOUD IS A TOOL, NOT A COMPETITOR
CLOUD HELPS COMPANIES
PROFIT FROM DISRUPTION

6. © 2014 Forrester Research, Inc. Reproduction Prohibited 6
Cloud disruption affects every industry
›Led by the “unicorns”… ›But touching everyone.
“Every business is a software business”

7. © 2014 Forrester Research, Inc. Reproduction Prohibited 7
Cloud forecast: hypergrowth for both
IaaS and PaaS thru 2020
$30B in 2018 =
IaaS: $21B
PaaS: $9B
$30B in 2018 =
IaaS: $21B
PaaS: $9B
38% Annual
Growth Rate
38% Annual
Growth Rate
New IaaS+PaaS
Replacement
Source: April 24, 2014, “The Public Cloud Market Is Now In Hypergrowth” Forrester Report

8. © 2014 Forrester Research, Inc. Reproduction Prohibited 8
“What are your firm’s plans to adopt the following as-a-service technologies?”
Base: 2,200 to 2,444 IT software decision-makers US & Europe
Source: Forrsights Software Survey, Q4 2013
Cloud adoption takes off
*Planning to implement in the next 12 months
**Planning to implement in a year or more
50% of companies
using IaaS by end of
2014; 61% using at
least one SaaS app
50% of companies
using IaaS by end of
2014; 61% using at
least one SaaS app

9. © 2014 Forrester Research, Inc. Reproduction Prohibited 9
13%
21%
33%
9%
10%
10%
Public cloud Hosted private cloud Internal private cloud
Implemented Planning in 2014
“What are your firm’s plans to adopt the following forms of
cloud computing infrastructure-as-a-service (IaaS)?”
Base: North American and European IT decision-makers at enterprise firms with 1,000 or more employees
Source: Forrsights Hardware Survey Q3 2013
IT buyers strongly prefer private clouds
33% claim to have
internal private cloud in
place; 43% by the end
of 2014
33% claim to have
internal private cloud in
place; 43% by the end
of 2014

10. © 2014 Forrester Research, Inc. Reproduction Prohibited
10 most popular cloud applications
January 2014 “TechRadar™: Software-As-A-Service, Q1 2014”

11. © 2014 Forrester Research, Inc. Reproduction Prohibited
Cloud is preferred for new apps
34% of companies
already prefer to
deploy new software
in the cloud
34% of companies
already prefer to
deploy new software
in the cloud

12. © 2014 Forrester Research, Inc. Reproduction Prohibited 12
Enterprises are on a cloud journey
OFFER ASSISTANCE AND GUIDANCE TO HELP THEM MATURE
1. CLOUD
EXPERIMENTATION
2. CLOUD
LEVERAGE
3. CLOUD
OPTIMIZATION
“I have to manage
multiple clouds – what
tools do I need?”
“I’m new to
cloud – where
do I start?”
“Am I getting the best
prices and terms in
the cloud?”
• Cloud monitoring
• Account support
• Cloud guidance
• Self-Service
• Standardization
• Automation
• Performance mgmt.
• Hybrid workloads
• Cost & vendor mgmt.
DELIVERY
OPERATIONS
GOVERNANCE
CLOUD
BUILDER
CLOUD
OPERATOR
CLOUD
BROKER

13. © 2014 Forrester Research, Inc. Reproduction Prohibited 13
Hybrid cloud is a reality in 2014-2015
INTEGRATED ON-PREMISES AND CLOUD SERVICES DELIVER HYBRID VALUE
PhysicalVirtual
Internal
cloud
Special-purpose highly
managed clouds
Common
Transient
Metered
Custom
Fixed
Owned
Public
cloud
Virtual
hosting
Traditional
outsourcing
Common
Transient
Metered
Custom
Fixed
Owned
CapEx OpEx
Flexible
OpEx
General-purpose low-touch
commodity clouds
HYBRID

14. The bottom line: Cloud in 2015
1. Public cloud adoption continues to be driven by the business, not IT
• Empowered developers and business units are driving public cloud use
• Majority of cloud platform apps are elastic “systems of engagement”
• High developer adoption of IaaS; IaaS and PaaS markets merging
2. Top cloud challenges for 2015:
• Reliable, fast network performance for cloud applications
• Security and compliance (data sovereignty) concerns
• Cost optimization and cloud service brokerage models - rightsourcing
3. Hybrid cloud is now, not the future
• Most enterprise cloud apps will not be 100% in the public cloud
• The focus must be on integration and data sharing across locations

15. Digital
Realty

16. Solve for the three C’s with a mixture of
Data center solutions
• Capacity
– Public cloud solutions can
provide the quickest method
to serving short-term and
peak-capacity needs.
• Control
– Private clouds can provide
high security.
• Costs
– A mixture of public and
private cloud solutions can
meets the business needs at
the lowest costs over time.

17. Public clouds provide
17
• Ability to quickly add capacity
• New and alternate back up and disaster recovery options
• Scale up to meet peak loads with minimal cost
• Packaged apps such as SaaS and Desktop as a Service
• Extending your virtual network

18. Private and internal
Clouds provide
18
• Lowest costs for base loads
• Most control of security
and privacy
• Greatest control over
redundancy and uptime
• Customized solutions
• Highest management,
responsibility and resources

19. Hybrid clouds
Balance costs and benefits
19
• Netflix grew with a large public cloud than merged into
hybrid solutions
• ESPN uses public cloud solutions for extreme peak
demands and private solutions to meet everyday
customer demands
• Development platforms on public clouds gain the benefits
of a larger platform for short-term testing and converted
to private for production
– Security is a keystone decision between public and
private platforms

20. Hybrid clouds
Provide flexibility
20
• As workloads change, they can move between public and
private platforms
• Hybrid solutions can provide the lowest cost across all
geographies
• Hybrid solutions often balance lowest cost and flexibility
• Hybrid solutions evolve to meet changing data and
privacy laws and security requirements

21. When deploying
clouds
21
• Create a solution for the
application and how it will be
utilized
• Think about the network and
how to achieve it at lowest
cost
• Determine how to Integrate
all systems
– Don’t rely only on SaaS
for your back up solutions

22. Look for strong SLAs for your
Mission-critical applications
• Uptime is critical for these apps
– Today, “always up” matters more than even a few
years ago
• Evaluate which applications are suitable for the cloud
and protect them with adequate SLAs
• Public cloud SLAs are often weak or nonexistent
• Create the right architecture and right level of
redundancy
• Consider private cloud instead

23. Plan for the management of all
Systems and applications
23
• Set up systems to remotely
and centrally manage
different infrastructure
• Automate tasks, migrations,
back ups and redundancies
• Use same governance,
compliance and security
tools for internal and
external cloud solutions

24. Security of data and
network is critical
• Utilize platforms to minimize security risks and breaches
of essential data and operations
• Think about which solution(s) will best prevent and
recover from security breaches
– Consider on-site data backed up off-site, and off-site
data backed up to an on- and/or another off-site data
center
• Utilize solutions to meet country specific data sovereignty
requirements

25. Plan for movement
of big data
25
• Moving data into and out of
cloud platforms and storing it in
cloud platforms can be more
costly
• Open-IX enables additional
peering and connectivity
• 10 US Internet Exchange
points are in DLR data centers.
– Global, networked data
centers allow anyone in a
DLR data center to connect
with nearly any cloud and
network provider for lowest
cost and latencies

26. Digital Realty cloud
Connectivity options
• Direct
Connect
• VPN
• Ethernet

27. Global
Alliances
27
• Build faster with
less risk
• Scale globally
• Boost your skills
• Connect

28. Digital Realty
Hybrid cloud universe
28

29. Summary
• Consider combinations of public and private cloud
solutions plus dedicated data centers to create
comprehensive solutions that provide:
– Scalability and the opportunity for growth
– Higher performance and highest availability at the
lowest total cost
– More performance yet less complexity and a higher
quality of service

30. Q&A
30
Presenters: Q&A Moderator:
KC Mares
Product Marketing,
Digital Realty
@kcmares
Dave Bartoletti
Principal Analyst,
Forrester Research, Inc.
@davebartoletti
Michael Bohlig
Director of Strategic Alliances,
Digital Realty
@bohlig

31. Thank you for participating in the
webinar.
Dave Bartoletti
dbartoletti@forrester.com
@davebartoletti
KC Mares
kcmares@digitalrealty.com
@kcmares