One of the most over-used terms in technology today, the “Cloud” is being used to describe pretty much any service that works over the Internet. But cloud computing has some specific advantages and some specific concerns. There are also three main areas where cloud computing is making a lot of business sense: in running business applications, in provide storage services, and in providing an alternative to computer servers. In this presentation, I will better define what the cloud is and isn’t and then explore the areas where cloud services are providing value. I also give you tips on evaluating future cloud service providers so that you can continue to understand this new computing paradigm.

2. Agenda
 What is the cloud?
 How did we get here?
 Some sample Cloud applications
 State of the Cloud
 Cloud drives for your computer
 SaaS and PaaS
 Land mines and Gold mines

3. GOAL FOR THE DAY
Not that you walk out with all the solutions (you
should get some…), but that you walk out with a
framework with which to judge future Cloud
offerings and technologies.

4. KEY VOCABULARY
• Hosting
• Storage
• Virtual Server
• Private vs. Public
• Software as a Service (SaaS)
• Infrastructure as a Service (IaaS)
• Platform as a Service (PaaS)

5. S O …
WHAT IS THE CLOUD?

7. CENTRALIZED POWER ADVANTAGES
 Pay for power as you use it
 Share the cost of building the infrastructure
 Quick and easy to get power to your new
building
 Someone else worries about hiring electrical
engineers to keep turbines going
 Flexibility for when you grow or have temporary
needs

8. DISADVANTAGES OF CENTRAL POWER
When it’s hot in town, everyone wants
more
Outages can affect a lot of people
Price doesn’t benefit from a
competitive market

10. CENTRALIZED MONEY STORAGE
Better protection that you can provide
alone
Marketplace provide competitive rates
and services
Insurance provided by the bank
When they fail or get robbed, a lot of
people lose money,
 but insurance can help

20. Microsoft facility in Dublin

21. hot aisle
containment system

22. Some sample Cloud
Applications

52. Why aren’t all of my movies available for Disc-to-Digital
conversion?
The list of movies available for Disc-to-Digital conversion is
comprised of titles that have been legally cleared for digital
distribution from studios participating in the UltraViolet program.
We expect the number of titles available for Disc-to-Digital
conversion to grow over time.
Which studios are supporting UltraViolet™?
The studios supporting UltraViolet include Paramount Home Media
Distribution, Sony Pictures Home Entertainment, Twentieth
Century Fox Home Entertainment, Universal Studios Home
Entertainment and Warner Bros. Home Entertainment.

53. • 40% of companies in
• 60% out or considering
• 50% are worried about security flaws
• 82% of cloud companies saved money
• Biggest reason to move: multi-device access
• 80% of business saw improvements in business
• 93% saw improvements in IT
• 63% of cloud users have multiple providers
STATE OF THE CLOUD

55. “Unfortunately for IT, if this attitude lasts, the IT
department will not”
“The emergence of the cloud has accelerated the
growing rift between IT departments and the senior
executives”
“Where companies have begun using cloud
services, it appears that they will continue to do so”
“Organizations that use the cloud can focus on their
core competencies instead of waiting on IT and
dealing with restrictions”

65. The Key Point
• Traditional model of IT: purchase a capital
investment and maintain and service over
time until you have to replace it
• Cloud model of IT: Spending from
operational expense budget for a service
when you need it

67. For your computer
CLOUD DRIVES

110. CLOUD DRIVE NOTES
 Your data away from your computer (work, business, laptop, home)
 SugarSync will make multiple computer directories the same
 You’ll need to buy special software to backup your computer to the Cloud
 Photos typically get special treatment
 Skydrive shrinks them
 Skydrive and DropBox create galleries
 Sharing might include editing
 Skydrive and Google can edit in the browser
 Google Docs format is special
 Doesn’t count toward your storage quota
 Multiple people can edit at the same time
 Seeing your data on other devices
 SugarSync and DropBox support everything including Blackberry (DropBox: Linux, too!)
 Google works on iPhone and 3rd parties have stepped up for Android apps for SkyDrive
 Searching is not uniform across the platforms
 DropBox indexes filesnames only
 SkyDrive indexes the words inside Microsoft files (Word, Excel, PowerPoint, etc.)
 Google indexes everything!
 SugarSync doesn’t search!

113. SAAS AND PAAS
And IaaS, too!

118.  Elastic Cloud Compute (EC2)
 Amazon’s virtual server shop. Create and upgrade and
expand server instances.
 Simple Storage Service (S3)
 Amazon’s cloud drive service. If you wanted to store
videos or photos or files on your website (regardless of
where it’s hosted), you can store them here.
 Elastic Block Storage (EBS)
 Amazon’s storage service for your virtual server that you
house there. You put the operating system (Windows,
Linux, etc.) here along with other files the server uses.

149. Benefits for IT
OImmediate 24/7
ODelivery of applications on multiple
device platforms
OImmediate provisioning for better
service
OBetter backup and disaster recovery
plans
OImmediate multi-platform access
OReduced staff

150. Tricky Stuff for IT
O Integration between platforms
O Credentialing in general and Single-sign-on in
particular
O Predicting and maintaining performance and
bandwidth needs
O Regulatory management and control
O Does our software work there? Licensed properly?
O From managing staff to managing vendors
O Reporting and KPIs for Executives
O Reduced staff

151. Benefits for the Business
O Flexibility is better than forecasting
O It’s good to be able to capture the
revenue from a peak
O Utility costing “plains” are preferred to
“mountains and valleys” of capital costing
O Agility in creation and delivery of new
digital products and services
O Probable cost reduction
O Probable over-all technology
improvements

152. Tricky Stuff for the Business
O Change is hard – migrations and cut-
overs and outages and training and new
(important) partners can all present
challenges
O Multi-year contracts are sometimes hard
to commit to
O Difficult to properly weigh risk profiles and
scenarios
O Another batch of layers between the
business and IT

153. A definition:
Cloud computing is a model for enabling convenient, on-
demand network access to a shared pool of configurable
computing resources (e.g., networks, servers, storage,
applications, and services) that can be rapidly provisioned
and released with minimal management effort or service
provider interaction.
National Institute of Standards and Technology

154. What it Boils Down to…
Better Control
• Your gear – your responsibility
• You’re in charge of your own
response to problems
• You know the capabilities of
your staff and can direct them
• You just have to manage
YOUR threats, not everyone’s
Advanced Functionality
• Quick to market
• Quick to upgrade or
downgrade as needed
• Service-based metered pricing
• 24/7
• Newer technology faster

156. Risk Mitigation
• Cloud providers want predictable, multi-
year, enterprise-wide agreements
• Customers want PAYG add (and subtract)
services as needed
• Neither party can assume all of the risk
o Vendors will go out of business
o Customers will never put mission critical in the Cloud

157. Service Level Agreements
• Is there an up-time guarantee and what are the
penalties? Push for more than fee returns.
o Consider Business Interruption Insurance
• Understand where to go for support or to report a
problem and what is the response time?
• Do they have a DR plan in place?
• Are your regulatory needs met (PCI, Cobit, etc.)?
• Make sure you understand (or eliminate)
“suspension of service” situations
• Verify no data sharing with your private
information.

158. STANDARD PATH TO THE CLOUD
• experiment with unimportant service or software and with
multiple providers
• when something gets old, rent a cloud server
• use for development and test, then deploy to owned gear
• get comfortable and continue to migrate
• experiment and migrate to PaaS/IaaS and SaaS
• deploy new services on the cloud
• consider reductions in technology support staff

159. “STARTUP” PATH TO THE CLOUD
• Find SaaS providers for office applications
• Develop and host web presence through partners
• Hire technical people in year 5 to manage partners

160. Recommendations
 Nothing longer than a 2-3 year
commitment if you have to commit
 You have to do your homework before you
commit
 Integration with existing applications
 Network surveys to determine bandwidth
needs
 Understand the SLA completely
 If you have an IT department, they need to
be on-board (even excited) in order for this
to work

161. Recommendations (con’t)
 Understand and practice your exit
strategy (just another part of your BCP)
 If you have existing good relationships
with hardware vendors, start with them