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.

1. Cirrus DB
www.cirrusdb.com
The Cloud Effect

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
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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. 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. 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. 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. 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. 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
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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. 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. 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. 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. 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
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CIRRUS DB13
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