Startups are huge fan of IaaS/PaaS providers such as AWS, Rackspace, New Relic etc. even smaller VPS providers are growing fast. Beside the obsession of using these easily deployable infrastructure components, we would like to provide you a showdown about the necessity and sense, when and whether to use them. The plus: we will provide numbers !

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Going Cloud !
IaaS/SaaS/PaaS and VC funding
4/22/2016

2. Copyright © 2016 by Gravity R&D Zrt. All rights reserved.
Tibor Sándor Nagy
DevOps Engineer – huge fan of cloud
Gábor Vincze
Head of Global Service – likes to eat

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Going Cloud !!!
IaaS - Infrastructure as a Service [commonly called: "Cloud“]
PaaS - Platform as a Service
SaaS - Software as a Service
?

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Why IaaS ?

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Benefits
• On-demand
• Easy operations
through APIs:
 Easy deployment of new resources
 Easier orchestration
 Geographically diverse
(low latency,
strong redundancy)
• Service provider specific
advantages (S3, Amazon RDS and spot instances)
• Less traditional operations manpower cost

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Trade-offs
• Price/performance ratio 4-12x
worse (for common applications)
• Loss of guaranteed
performance
• Limited options for
sophisticated
networking
• SLA (availability) - most providers give no guarantee
• Cannot really leave vendor (cloud specific APIs)

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Provider for Life
• Demand needs scaling (slow site = churn)
• Massive scaling need cloud (IaaS + SaaS)
• Tied to a provider Technology (specific API, topology,
type of virtualization)
• Long commitment for lowering cost
• Converting to lower cost (bare metal, in-house
solution) = Investment

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Do you REALLY need Cloud ?
• Typical Series A investment $2M-$10M for 10-30%
• Our infrastructure cost in on-demand would be:
2.06 M USD / annual
• (1/3 - 3yrs partial upfront)
• On-demand instance
<10%/month worth
• SaaS vs IaaS
• Hybrid
 Softlayer vs Leaseweb

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Now REALLY go cloud :)
SaaS can be the answer for common business processes
 Security
 Building infrastructure vs using a small portion of a bigger one
 Retail version is unavailable
Examples
• Off-site monitoring (Uptrends, Pingdom, Site24x7)
• DNS (DnsMadeEasy)
• Email, collaboration (Google Apps for business)
• Alerting (Pagerduty)
• Recommendation Engine and Personalization (Gravity R&D, Yusp)
Typical SaaS huge price trade-off example
New Relic ? - 17 000 USD / annual for 10 hosts

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Bud wut 'bout IaaS ?
Real world examples
• Parallel commit tests
 50-500 instances in a few minutes
• External monitoring hosts
• Fallback servers
• Burst traffic
• Synthetic load tests

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Thank you for your attention