The document discusses considerations for cloud adoption and the cloud service models of infrastructure as a service (IaaS), platform as a service (PaaS), and software as a service (SaaS). It addresses barriers to cloud adoption such as security, vendor lock-in, and performance concerns. The document advocates applying an 80/20 approach to determine which workloads are suitable for different cloud deployment options and service providers. It concludes that cloud should be part of an IT strategy through a deliberate choice of delivery platforms to address specific needs.

1. CONSIDERING THE CLOUD?
From IaaS to SaaS and Beyond - Find Your Path to the Cloud
5/29/2012
Christian Teeft – VP, Engineering
Jonathan Sharp – VP, Marketing
Confidential
Tuesday, May 22, 2012

2. Being an IT Leader Takes Heroic Effort
IT -> becoming a builder and broker of services.
Do More with Less | Do it Now | Do it Cheaper
BUILD AND BUY DEPLOY & CONSUME
high performance, secure dedicated & virtual
physical & virtual XaaS resources as needed
SECURE & MANAGE
TRANSFORM
apps & workloads across
legacy apps, infrastructure
all platforms
& processes
2
Confidential 5/29/2012

3. Cloud Can Make Things Easier…
NIST Definition
On-demand | Elastic | Self-service | Rapid provisioning | Pay-as-you-go
Cloud Service Models SaaS
Software as a Service
Applications, business logic, and information
layered on platform or infrastructure services
PaaS
Platform as a Service
App components, middleware and database
layered on infrastructure service
IaaS
Infrastructure as a Service
Standardized, virtualized pools of server,
storage, network and software infrastructure 3
Confidential 5/29/2012

4. Or Quickly Become Very Complicated
Software Providers SaaS
PaaS
IaaS Platform Providers
4
Confidential 5/29/2012

5. Cloud IaaS: The Service Provider Perspective
Hosted
Public
• Credit card swipe
• Shared infrastructure
• No visibility into underlying
technology
On Prem • Limited SLAs & support
Private Private
• Solely tailored to your business Automation • “Members only”
• • Multi-tenant or Dedicated
Dedicated, bare metal Orchestration • More secure
• Most secure option
• Capital and resource-intensive Service Catalog • Greater customization
Enterprise
• Consultative approach / right-
sizing across resource pools
• Bare metal, multi-tenant or
dedicated
• Integration of virtual & dedicated
• Performance tiers
5
Confidential 5/29/2012

6. Where is the real benefit for you?
Cloud is perfect for: variable workloads.
Cloud
Workloads
Dedicated
Workloads
6
Confidential 5/29/2012

7. Where is the real benefit for you?
Cloud is perfect for: rapid growth workloads
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
’09 ’09 ’09 ’09 ’10 ’10 ’10 ’10 ’11 ’11 ’11 ’11
7
Confidential 5/29/2012

8. So Why Isn’t Adoption Happening Faster?
Business is adopting cloud 2.5x faster than IT…
– Speed
– Flexibility
– Economics
…But there are barriers to cloud adoption among CIOs
70% of CIOs say cloud data SECURITY is a major concern
79% concerned about VENDOR LOCK IN
75% worried about cloud PERFORMANCE AND AVAILABILITY
63% concerned about integrating INTERNAL AND EXTERNAL SERVICES
8
Source: 1. Goldman Sachs Equity Research, January 2011; 2. IDC, Enterprise Panel Survey, November 2010
Confidential 5/29/2012

9. Your Next Move…Cloud as Part of Portfolio
COLOCATION COLO + MANAGED PRIVATE PUBLIC
MANAGED HOSTING CLOUD CLOUD
SERVICES
CUSTOMER OPERATING NEEDS
CapEx CUSTOMER EXPENSE TRANSITION OpEx
9
Hardware Configuration CUSTOMER CONTROL TRANSITION Resource Pools & Usage
Confidential 5/29/2012

10. Your Next Move…Cloud as Part of Portfolio
COLOCATION COLO + MANAGED PRIVATE PUBLIC
MANAGED HOSTING CLOUD CLOUD
SERVICES
Mobility & Social Media
CUSTOMER OPERATING NEEDS
Transfer Legacy Enterprise Apps to SaaS
Scrum
Imaging Graphics & Animation
Test & Dev
Email, File Sharing & Collaboration
Pivoting
Hardware End-of-Life
DR & Business Continuity
Server Virtualization
Storage
CapEx CUSTOMER EXPENSE TRANSITION OpEx
10
Hardware Configuration CUSTOMER CONTROL TRANSITION Resource Pools & Usage
Confidential 5/29/2012

11. Your Next Move…Cloud as Part of Portfolio
IT infrastructure as a suite of services, with cloud as the latest tool in your portfolio
COLOCATION COLO + MANAGED PRIVATE PUBLIC
MANAGED HOSTING CLOUD CLOUD
SERVICES
Mobility & Social Media
CUSTOMER OPERATING NEEDS
Transfer Legacy Enterprise Apps to SaaS
Scrum
Imaging Graphics & Animation
Test & Dev
Email, File Sharing & Collaboration
Pivoting
Hardware End-of-Life
DR & Business Continuity
Server Virtualization
Storage
CapEx CUSTOMER EXPENSE TRANSITION OpEx
11
Hardware Configuration CUSTOMER CONTROL TRANSITION Resource Pools & Usage
Confidential 5/29/2012

12. You’ve Already Started…
• CRM
Software as a Service • Hosted email
Applications, business logic, and information • Accounting
layered on platform or infrastructure services
• Big data & analytics
• Backup & Recovery Services
• Ticketing Systems
Platform as a Service • Portals
App components, middleware and database • Work Productivity Suites
layered on infrastructure service • Widget Applications
• “Business-in-a-Box”
• Test & Dev
• Staging & Pre-Production
Infrastructure as a Service • Beta & Alpha Testing
Standardized, virtualized pools of server,
storage, network and software infrastructure • Static Websites
• Marketing Campaigns
12
• Media & Entertainment
Confidential 5/29/2012

13. The Enterprise Cloud
1. Self-service, speed & automation of the public cloud
2. Consultative expertise, hand-holding & end-to-end IT solutions
3. Performance, SLAs & Integration of Virtual/Dedicated resources
vCPUs
RAM Solution Design
Storage & Migration
5/29/2012
Network
IP Addresses Consultative
OS Expertise
Service Delivery
& SLAs
Confidential
Greater Performance & QoS
13

14. But this gets you halfway there…
Different companies have different resources, capabilities, ability to
outsource….
5/29/2012
Confidential
14

15. Applying the 80/20 Rule to the Cloud
Effort Value
0%
0%
20% 80%
80% 20%
5/29/2012
0%
0%
• 80% of all IT work represents only 20% of IT value.
Confidential
• 20% of all IT work represents 80% of IT value.
15

16. Applying the 80/20 Rule to the Cloud
Effort Value
The low-value 80% The high-value
5/29/2012
is the same 20%
from company is different
to company. from company
to company.
Confidential
16

17. 80% Work vs 20% Work
20% Work:
•App Configuration
•User Management
•Budgeting and Planning
5/29/2012
80% Work:
•Managing Email Servers
•Deploying Apps and Desktops
•File Storage and Backup
•Server Maintenance
•Security/Anti-Virus
•Firewalls/Load Balancing
Confidential
•Payroll
17

18. “Build It vs. Buy It” meets The Cloud.
SaaS
• Companies with highly-specialized needs must build their own.
5/29/2012
Fortunately, there are many good providers.
• For companies without highly-specialized needs, there are also providers
who can recreate most or all services in one comprehensive package.
• Applying the 80/20 rule is crucial to intelligently choosing between
Confidential
Services and Providers.
18

19. 80/20 Cloud Matrix
Effort Value
Installation, Licensing,
Software Providers High Functionality
Upgrading, Security
Research, Configuration of Lower Cost and
Software As A Service
Multiple Vendors Maintenance, Scalability
5/29/2012
Installation, Configuration, High Performance, On-Site
Platform Providers
Customization Security, Reliability
Research, Configuration of Lower Cost and
Platform As A Service Multiple Vendors, Maintenance, Scalability,
Writing/Maintaining Code Integration
SLAs, Flexibility and
Confidential
Vendor Evaluation,
Infrastructure As A Service Customization of Capacity,
Contractual Obligations
Optimization 19

20. Managing A Cloud Installation
• IT Managers are finding that moving to the cloud does not
relieve them of burden of managing users, apps, and data.
• Same problems. Different infrastructure.
• Cloud providers can’t go the final mile.
• No SLAs on Excel performance.
5/29/2012
• No SLAs on Windows legacy apps.
Confidential
20

21. Premium Cloud Services
• Microsoft, Citrix, and other enterprise players are investing
heavily in premium cloud services
(i.e., Office365, Exchange, etc.)
• Premium Cloud handles the 80% services that provide 20%
of IT value, thus offloading the low value activities from IT
5/29/2012
professionals
• This is very good news for IT professionals who add value
through creativity, insight and expertise because…
• All low-value services can be delivered via the Cloud from a
Confidential
single interface. 21

22. What Premium Cloud looks like
5/29/2012
Confidential
22

23. Cloud Vendors Who Make It Possible
• Latisys – Foundation for infrastructure
• Citrix - Quality of Service, Cloud Platform
• Microsoft - Office Automation Suite, Servers through Office
5/29/2012
• Horizon Private Cloud brings it all together with vDesktop
and vStorage
Confidential
23

24. Where Do We Go from Here?
Cloud must be part of your IT strategy….
…but cloud is an evolution…not a revolution.
Update for final “conclusion” / call to
Choose your delivery platform deliberately
action that incorporates both
• Security & compliance requirements drive public vs. private
solutions…
• Cloud is almost always workload and application-specific
• Don’t ignore cloud politics—get out in front
• Performance matters!! QoS just as critical as in a “classic” deployment
• Do you have the expertise to right-size, deploy and migrate?
(and if not, does your service provider?)
• Integration with the rest of your IT infrastructure – do you really want to
manage silos of components…or multiple vendors? 24
Confidential 5/29/2012

25. Questions?
25
Confidential 5/29/2012

26. Thank You
Robert Christiansen
CEO – Horizon Private Cloud
robert.christiansen@horizonprivatecloud.com
Christian Teeft
VP, Engineering – Latisys
christian.teeft@latisys.com
Jonathan Sharp
VP, Marketing – Latisys
jonathan.sharp@latisys.com
26
Confidential 5/29/2012