The document outlines a keynote discussion on cloud providers' impact on traditional data centers at a data center summit. Key topics include the economics of cloud migration, workload selection, and real-life migration stories, as well as the strengths and weaknesses of various hosting models such as public, private, and hybrid clouds. It emphasizes the importance of strategy and expertise in navigating the complexities of cloud solutions for different organizational needs.

1. LUNCHEON KEYNOTE:
HOW CLOUD PROVIDERS ARE PLAYING WITH
TRADITIONAL DATA CENTERS
MAY 15th - 1pm
CAPRE’S 2nd ANNUAL GREATER PORTLAND DATA CENTER SUMMIT
Emil Sayegh, CEO, Hostway Services, Inc.

2. DISCUSSION POINTS
 Economics of the cloud: Should everything move to the Cloud?
 Workload selection: What goes where? What should go to Amazon, Azure, Google, Hybrid, or
remain on premise?
 Analysis of how end-users are approaching the various cloud offerings (public-private-hybrid,
etc)
 What are Google, Azure, Amazon offering to clients that might not be offered otherwise?
 Agility of the cloud coupled with tools: How are cloud solutions making the impossible reality?
 Migration to the Cloud: How do end-users get over regulatory and compliance challenges?
 Security, Compliance & Consolidation: The factors affecting big-picture Cloud Migration
decision making
 Actual stories of cloud migrations. What went right, wrong, and what can be learned along
the way?
 What are the hybrid cloud models that are working in practice in production environments?

3. Classic Two Tiered Architecture
3
CUSTOMER SCENARIO: The Case For Cloud
YOUR
TRAFFIC START UP
Firewall
Server
Server
Server
One DC

4. 4
CUSTOMER SCENARIO: The Case For Cloud
START UP EASY
GROWTH
One DC
Nice Easy Growth Phase
Web Server
Web Server
Web Server
Web Server
Firewall Proxy
YOUR
TRAFFIC

5. 5
CUSTOMER SCENARIO: The Case For Cloud
START UP EASY
GROWTH
DIG
Yikes! People Dig it!
Firewall
One DC
YOUR
TRAFFIC
Web Server
Web Server
Web Server
Web Server
DB Server
DB Server
Proxy

6. 6
CUSTOMER SCENARIO: The Case For Cloud
START UP EASY
GROWTH
DIG CRUNCH
Quick! Fix the Database!
Web Server
Web Server
Web Server
Firewall Proxy
Multiple DCs
YOUR
TRAFFIC
Web Server DB Server DB Server
DB Server
DB Server
DB Server DB Server

7. 7
CUSTOMER SCENARIO: The Case For Cloud
PANIC!!!
START UP EASY
GROWTH
DIG CRUNCH PANIC!!!
DC 1
YOUR
TRAFFIC
DC 2
DB Server
Firewall

8. 8
But Wait…
IT is Hundreds of Applications…
| Mobile Apps | Blogs | Shopping Carts | Forums | CMS | Wikis | Streaming |
| Big Data | Security | Health | Photo Galleries | CRM | ERP | Email/Webmail |
| Databases | Ticket/Support | Accounting | Test Dev | Many More…

9. 9
WITH 100s of REQUIREMENTS

10. MARKET TREND 10
On Premises / Private Off Premises / Private Off Premises / Public

11. THE CHOICES 11
The choices for
Hosting this data
has become
confusing and
daunting.

12. TRADE-OFFs 12
Home Owner
(Own DC)
Rental Home
(Colocation)
Apartment
(Managed Hosting)
Hotel
(Public Cloud)

13. TRADE-OFFs 13
Home Owner
(Own DC)
Rental Home
(Colocation)
Apartment
(Managed Hosting)
Hotel
(Public Cloud)
BACK OFFICE APPS
Legacy ERP, OSS,
Workflow,
SW Apps (custom),
Website (complex
CUSTOM APPS
ERP, OSS, Workflow,
SW Apps (custom),
Website (complex),
Database, Big Data
PACKAGED APPS
Blogs, Wikis, Subversion,
Test/Dev, SaaS, Website,
Regulatory Compliance
STANDARD APPS
Email, Workspaces
Chat, IM, CRM,
Social Media

14. 14
STRENGTHS WEAKNESSES
 Total Control
 Full control over
facility location
 Maximum
customization
 Security can be as
good as you design it
 Scaling can only be
as good as you
design it
 You own it!
 Requires capital
 Requires your own IT team
 Requires significant non-core
in-house expertise
 Requires you to focus real
estate, your application and
your hosting
 Low economies of scale
 Have to design your scaling and
security configuration
 DIY
TRADE-OFFs

15. Co-lo
15
TRADE-OFFs
STRENGTHS WEAKNESSES
 Maximum
customization
 Security can be as
good as you design it
 Scaling can only be
as good as you
design it
 Full control over
facility location
 Requires significant non-core
in-house expertise
 Requires you to focus on both
your application and your
hosting
 Low economies of scale
 Support comes from Google
search
 You actually have to design your
scaling and security
configuration

16. Managed Hosting
16
TRADE-OFFs
STRENGTHS WEAKNESSES
 Mature, well
understood platform
that works
 Security compliance
and consulting
services
 Best support
 Customization to
match needs
 Uptime
 On-demand costing in non-
standard
 Works best when combined with
some expertise
 Scale on a per-server basis;
requires foresight and lead-time
 Limited control over facility
location
 Can be some trouble for start-
ups

17. 17
STRENGTHS WEAKNESSES
 Flexible costing
 Scalability built-in
 Easy to get started
 Lets customer focus
on application
 No systems expertise
required
 Overpaying 3X for constant
workloads
 Regulatory and compliance
limitations
 Limited software flexibility
 Security tied to the platform
 Some control over facility location
 Support for only what’s included in
the system
 Less maturity than Dedicated
 Must trust the cloud for uptime,
performance, and scale
Cloud, Elastic Computing, On-Demand
TRADE-OFFs

18. 18
EXPERTISE & SCALE MATTER
Startup SMB &
Departments
Hyper Growth
web 2.0
Company
Enterprise/Large
Scale
COMPANY TYPE
EXPERTISE
Cloud Managed &
Cloud
Managed &
Cloud
In-House/
Colo/
Dedicated
/Cloud
In-House/ColoIn-House/ColoIn-House/Colo
Colo,
Dedicated &
Cloud
Dedicated
&/or Cloud
Software
Development
Sys-Admin
Large
Infrastructure
+
+
Dedicated
&/or Cloud
Dedicated &
Cloud
Managed &
Cloud
SCALE

19. 19
YOUR NEEDS CHANGE!
Cloud Cloud +
Dedicated
DIY
Start-up
Require More
Flexibility or to
Save Money
Grow to Find
Economies
of Scale
Cloud +
Dedicated
Dedicated Cloud +
Dedicated
Established
Require More
Scalability
Colo/DIY Dedicated
Cloud +
Dedicated
Start-up
Require Less
Capex
Require More
Scalability

20. 20
MEET THE HYBRID CLOUD
Hybrid Cloud
Reduces
costs
Delivers
choice
Increases
flexibility
Accelerates
deployment
Improves
reusability
Speeds
innovation

21. 21
SAMSUNG SMART TV
On-Prem Colo Managed
Private
Cloud
Public
Cloud
SecurityHybrid

22. 22
SAMSUNG SMART TV
Vancouver
Hanover,
Germany
Seoul, S KoreaAustin
Tampa
On-Prem Colo Managed
Private
Cloud
Public
Cloud
SecurityHybrid

23. 23
EXPLORE.ORG
On-Prem Colo Managed
Private
Cloud
Public
Cloud
Hybrid Security

24. 24
EXPLORE.ORG
On-Prem Colo Managed
Private
Cloud
Public
Cloud
Hybrid Security

25. 25
WHY HYBRID IS THE ANSWER

26. 26
HYBRID CLOUD:
BEST OF BOTH WORLDS
Choice & Scalability
Flexibility
Right Tool, Right Workload
Cost

27. 27
HYBRID ELIMINATES
PUBLIC CLOUD CONCERNS
OVER PAYING
DATA ISOLATION
PERFORMANCE
CUSTOMIZATION
REGULATORY

28. HYBRID CLOUD IS THE THIRD
GENERATION CLOUD
28
Colocation
Public Cloud Hybrid Cloud

29. 29
DEVELOPING YOUR STRATEGY
TOO EASY TO GET LOST BY:
► Not focusing on where you deliver value
► Not partnering with experts across technologies
► Overspending based on cloud hype
► Locking into false choices
► Spending valuable time on wrong details
► Delayed thinking about scale & architecture
IT IS CRITICAL TO FIND THE RIGHT HOME WHERE YOUR
APPLICATIONs CAN GROW SAFELY and CONOMICALLY

30. 500k Customers
Across Diverse
Service Offerings
40% of Fortune 500 Service
Providers Resell Hostway
Service to SMBs
76 Million Emails
Processed Daily
10 Data Centers Worldwide
Geographically Dispersed
Across The World
20,000+
Managed Servers
Online
600,000+
Websites Hosted
Backed by Marquis Investors
LittleJohn Company, Centre Lane
Partners; Solar Capital; Stellus
Capital; Main Street Capital
Deep knowledge
across technologies
and platforms
Trusted Cloud Expertise and
Infrastructure for Over 20 Years
30

31. 31
Q&A

32. 32
BASIC HYBRID ARCHITECTURE
EXAMPLE
SWEET!
COOL!
NICE!

33. 33
ADVANCE HYBRID ARCHITECTURE
EXAMPLE
WICKED!
GNARLY!
AMAZING!