John Engates - Rackspace - Cloud Computing (Part 1) For Growing Businesses


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John Engates - Rackspace - Cloud Computing (Part 1) For Growing Businesses

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  • Why are more and more businesses choosing Cloud today?It’s benefits make it an often “irresistible choice”Public cloud offerings built on automated, multi-tenant platforms offer incredible access to on-demand compute resource– this means increased speed to deploymentThe pay-per use utility model of cloud allows businesses to make better use of their resources and to save money
  • Touch on the various forms Public, Private, Public is hotel, Private is company that owns hotel
  • Future of cloud?  Get on board, or get run over.-- Almost all computing will be on the cloud in the long run -- as in,say, 50 years.  The cost savings and the gains in productivity and innovation are already compelling.  And adoption will accelerate as some of the technical obstacles around security and reliability get addressed.  But as a famous economist [Keynes] once said, in the long run we're all dead.  What's the future of cloud computing in the next few years?-- Adoption is rising rapidly right now.  At Rackspace, our cloud business grew to $50 million last year, and 60,000 customer, from almost nothing.  Among the SMB customers who are your bread and butter, and ours, I think cloud adoption will reach 90% within five years.  Let's look briefly at what's driving that trend.
  • AnimateLow cost, highly scalable, building block elements of computeVmware based; dedicated hosts; traditional HA architectures
  • For exampleFor SaaS companies, utilizing cloud hosting can offer substantial financial and technological advantages compared with traditional dedicated solutions, especially in this economic climate. The flexibility and instant-infrastructure scaling of Cloud Solutions are ideal for SaaS businesses and enable an almost instant ROI.Only 4 weeks in the year need peak capacity of say 1,000 serversBuying 1,000 servers gives 36,000 server-month capacity over 3 years (assuming server life is 3 years)In 3 years, with Cloud model, Walmart pays per use the equivalent of 3*(400*11 + 1000*1 )=16,200 server-monthsBuying servers…causes capacity over provisioning by a factor of 2Demand from multiple websites seldom goes up and down at same time due to cyclical variability, canceling out fluctuations in aggregate, and resulting in massive economies of scale.
  • Universal Access to Apps and InfoSpeed to MarketEasier ExecutionMinimizes DownsideLarge and Small Companies can Compete EquallyCreates New Business Models
  • Hard to see middle message on first build; can we make build fasterDone.
  • Couple approaches – first and most common – right app for the right toolNew approach – real hybrid – cost and scalability on parts that need it; security and isolation where needed
  • Very common appraoch today – lots of work
  • Glam has 20+ Dedicated Servers in Rackspace Managed HostingThey have 17 additional Rackspace Cloud Servers9 x 256 mb3 x 2GB2 x 4GB1 x 8GB2 x 16GBGlam Media A Rackspace Hybrid Customer-- Managed Colocation + Cloud Servers customer since September 2009A leading Vertical Media company with a network of more than 1,500 lifestyle websites and blogs. Founded in 2007. Sites include, a style website targeting, targeting men Micro-blogger site, founded March 2009#9 in the Top 100 Web properties with 78 million US visitors & 164 million worldwide (comScore)Top 10 AdWeek Display Ad Publisher Fast Company's most innovative media company for 2010. Rackspace hosts, and Tinker.comWe designed a customized solution for Glam Media that allows them to pass traffic between their Cloud and Dedicated Rackspace environments as if on the same network. This helps them save money by scaling into Cloud Servers instead of dedicated servers during peak traffic times.Account Revenue - Started at MRR $15K (Cloud Servers averages MRR $3K)
  • John Engates - Rackspace - Cloud Computing (Part 1) For Growing Businesses

    1. 1. No Servers and No Software:<br />What is Cloud and How to Leverage it for Your Business<br />John Engates CTO, Rackspace Hosting<br />Renée Schmidt Co-founder, Madison Technology<br />
    2. 2. No Servers and No Software:<br />Part 1 - What is Cloud Computing<br />
    3. 3. About Me<br /><br />Office: (210) 312-4197<br />Twitter: @jengates<br /><br />3,000 employees, or Rackers<br />100,000+ customers and growing<br />Listed NYSE 2008 (RAX)<br />Chief Technology Officer<br />Joined Rackspace in August 2000<br />From San Antonio, TX<br />2009 Hosting Revenue<br />
    4. 4. Rackspace – What We Do<br />
    5. 5. Rackspace – Some Facts About US<br />Founded in 1998<br />Headquartered in <br />San Antonio, Texas<br />9 worldwide data centers<br />3,500 employees (“Rackers”)<br />142,000 customers<br />70,000 servers<br />$920 million revenue run rate<br />Listed NYSE: RAX<br />
    6. 6. The Evolution: 70’s – 80’s Mainframe Era<br />
    7. 7. 90’s – 2000: The Client Server Era<br />
    8. 8. Cheaper, more accessible, more powerful<br />The Cloud: Truly a New Era in Computing<br />
    9. 9. What is Cloud Hosting?<br />ACCESSIBILITY<br />SPEED<br />MULTI-TENANT<br />AUTOMATED<br />PAY AS YOU GO<br />COST<br />
    10. 10. Cloud Computing: Definition and Characteristics<br />10<br />A style of computing where dynamically scalable and often virtualized resources are provided as a service, over the Internet. <br />3<br />Applications (SaaS)<br />- “Unlimited” processing and storage<br />- Abstracted/pooled resources<br />- Elastic: scale up or down<br />- On demand, Self-service<br />- Highly automated<br />- Consumption-based billing<br />2<br />3 Broad Categories of Services<br />App. Infra. (PaaS)<br />1<br />System Infra. (IaaS)<br />
    11. 11. SaaS, PaaS, IaaS - Explained<br />Software<br />as a <br />Service<br />SaaS<br />End Users<br />PaaS<br />Platform<br />as a <br />Service<br />Perceived Value by End User<br />Developers<br />IaaS<br />Infrastructure <br />as a <br />Service<br />Architects and Sys Admins<br />
    12. 12. Public Cloud<br /><ul><li>Multi-tenant
    13. 13. Consumed over the web
    14. 14. “Infinite” Scale
    15. 15. Utility Billing
    16. 16. Zero Capex</li></li></ul><li>Private Cloud<br /><ul><li>Single-tenant
    17. 17. Consumed over private network
    18. 18. Limited Scale
    19. 19. Capital expenditure</li></li></ul><li>Cloud Hosting Options – An Analogy<br />In House<br />Managed<br />Hosting<br />Cloud Hosting<br />HOUSE<br />CONDO<br />HOTEL<br />
    20. 20. Cloud Growth Cannot be Denied<br />Benefits Customers and Partners<br />“58 percent say cloud computing will cause a radical shift in IT and 47 percent say they are already using it or actively researching it.”<br />“By 2012, 20% of businesses will own no IT assets.”<br />CIO Magazine (From IDC Report) October 2008 <br />Gartner Key Predictions, January 2010<br />“The current U.S. economic woes will only drive more enterprises to consider and adopt cloud offerings. Spending on IT cloud services will hit $42 billion by 2012.”<br />“The bulk of business computing will shift out of private data centers to the cloud.”<br />IDC, March 2009<br />Nicholas Carr, Author<br />
    21. 21. It’s Happening Today<br />100,000 Customers in 120 Countries<br />80% are <br />Cloud Customers<br />125% Growth<br /> in 2009<br />* 2008 vs. 2009 Net Revenue<br />
    22. 22. WHY?<br />
    23. 23. Instant Access<br />
    24. 24. Scalability<br />PLANNED SCALING<br />ON-DEMAND SCALING<br />
    25. 25. Cost Savings<br />40% LEss<br />In House<br />Cloud<br />
    26. 26. It Drives Innovation<br />
    27. 27. The Transition to Cloud<br />TODAY<br />Cloud<br />50%<br />2015<br />In House<br />90%<br />
    28. 28. Key Drivers of the Transition<br />Time<br />Flexibility<br />Security<br />Reliability<br />
    29. 29. FOR EVERYONE, NOT EVERYTHING<br />The Right Tool for the Job<br />Legacy Apps<br />Custom Apps<br />Standard Apps<br />In House<br />Managed<br />Cloud<br />Website<br />Ecommerce<br />New Backoffce Apps<br />Web Applications<br />ERP<br />OSS<br />Workflow<br />Email<br />Wikis<br />Blog<br />Test/Dev<br />
    30. 30. Hybrid Model Gaining Traction<br />Managed AND Cloud<br />Two independent applications<br />APP 1<br />APP 2<br />APP 3<br />MANAGED<br />HOSTING<br />CLOUD<br />HOSTING<br />HYBRID<br />HOSTING<br />Single application using both<br />Managed PLUS Cloud<br />
    31. 31. Using Cloud: FreshBooks<br />Website and Archiving<br />Core App/Commerce<br />Managed AND Cloud<br />26<br />
    32. 32. Using Cloud: Glam Media<br />Database and core infrastructure on dedicated servers<br />Content nodes scale up and down through the use of Cloud Servers<br />Same data center for low latency and high bandwidth connections<br />Managed PLUS Cloud<br />
    33. 33. What You Should Look for in a Cloud Provider<br />Service and Support Focus<br />Broad Portfolio<br />Open Approach<br />