The document outlines a presentation on the transformative impact of cloud computing on business operations, featuring insights from industry leaders and examples of successful cloud adoption. It discusses the disruptive nature of cloud technology, the growth of various cloud models (SaaS, PaaS, IaaS), and emphasizes the shift toward cloud-native applications and hybrid cloud strategies. Furthermore, it highlights the increasing importance of agility, operational discipline, and the urgency for enterprises to adapt to evolving technological landscapes.

1. @randybias
The Cloud Revolution
Business Transformation with Cloud Computing!
Randy Bias, Founder & CEO, Cloudscaling!
PH Cloud Summit!
September 25th, 2014
CCA - NoDerivs 3.0 Unported License - Usage OK, no modifications, full attribution*!
* All unlicensed or borrowed works retain their original licenses

2. Introduction

3. Who
Scale Builder!
3 * 100k+ sq ft datacenters @ 14MW each!
1000s of servers, 100s of switches!
Leader in Production Cloud Deployments!
1st OpenStack Public Compute Cloud in U.S.!
1st Public Compute Cloud Korea for KT uCloud!
(CloudStack)!
1st Public Storage Cloud in Korea and 2nd in U.S.!
OpenStack Foundation Board of Directors!
Top 10 Cloud Computing Pioneer
3

4. Today’s Goals
The Cloud Revolution!
Cloud and the Enterprise!
Cloud and the Philippines (+APAC)
4
1
2
3

5. What is Cloud?

6. What is Cloud Computing?
?
On demand
services?
Self-service
Web Apps?
IT-as-a-
Service? Virtualization?
6

7. ... could it be something else?
?
On demand
services?
Self-service
Web Apps?
Disruption?
IT-as-a-
Service? Virtualization?
7

8. Enterprise Computing Approach
8

9. Cloud Computing Approach
9

10. Cloud Computing’s Real Pioneers
10

11. Cloud is Fundamentally Disruptive
Enterprise
Computing
"Client-Server"
Cloud
Computing
"Web"
Mainframe
Computing
"Big Iron"
1960 1980 2000 2020
Disruption Disruption Disruption
11

12. Example Cloud Technology
Google’s MapReduce!
re-written from scratch as open source!
Google's hardware reference architecture!
Enterprise’s wouldn’t consider 10yrs ago!
Hadoop market is destroying traditional BI!
21B by 2018 w/ 54% CAGR!
OpenStack on a similar trajectory!
… for private cloud!
Many others:!
Cassandra, Riak, Mesosphere, Docker, and many more
12

13. Hadoop Reference Architecture
13

14. Google’s Hidden Power? Map Reduce
14

15. The Simplified Model of Cloud
15

16. Cloud Comes in Many Forms
SaaS for end users
PaaS for app developers
IaaS for dev/ops
Public Private
16

17. IaaS Growth

18. Enterprises Love AWS
18

19. AWS Still A Juggernaut*
* SOURCE: Huan Liu http://huanliu.wordpress.com/2014/02/26/amazon-ec2-grows-62-in-2-years/
19

20. Yes, That’s a Log Scale
20

21. AWS Revenue Run Rate - Feb’14
21
Math:!
2.97M VMs * $1512/year == 4.5B!
(for EC2 alone)
Assumptions:!
• $.175/hr avg cost based on m1.large!
• 720 hours in a month (keeping it simple)!
• EC2 is probably ~70% of all AWS revenues!
• http://huanliu.wordpress.com/2014/02/26/amazon-ec2-grows-62-in-2-
years/
$6.4B

22. Cloud & Enterprise

23. What do Enterprises Care About?
ACCELERATING!
TIME TO VALUE!
DevOps Data Center &
23
Cloud
Computing!
Agile
Development!
Business !
Agility!
Operational
Discipline!
Agile
Methodologies
Continuous
Integration
Continuous
Testing &
Delivery
IaaS / PaaS
!!
Public / Private /
Hybrid
!!
Big Data /
Analytics
!!
Public APIs
Continuous
Deployment
App Automation
Line of
Business
Enablement
New App
Initiatives
(Mobile, SaaS,
etc.)
Data Center
Modernization

24. Path to Greater Agility? DevOps!
DevOps
24
Software
Development
Quality
Assurance
Technology
Operations

25. DevOps Explained
25
Application
Automation
Continuous
Integration
Continuous
Deployment
Operations
OODA Loop
Agile SW
Development
Continuous Delivery Cycle
Feedback and Learning

26. DevOps Simplified
Application Automation!
Apps Scale Themselves Up / Down!
Apps “Route Around Failures” In Infrastructure!
Apps Are Infrastructure-Aware!
Apps Manage Their Own Data Replication/Redundancy!
Continuous App Delivery Methodology!
Continuous Integration!
Continuous Deployment!
Continuous Delivery!
Net Result: Cloud-Native Applications!
26

27. Ops OODA Loop
27

28. Cloud-Native Shifts Uptime Responsibility
Enterprise Model Cloud Model
28
99.9%!
Applications!
(8h46m down)
99.999%!
Infrastructure!
($$$$)
99.999%
Applications!
(5m down)
99%
Infrastructure!
($$)

29. Cloud-Native is a Mindset Change
29
bowzer.company.com!
(scale-up)
Attribution: Bill Baker, Distinguished Engineer, Microsoft
web001.company.com!
(scale-out)
(Virtual) Servers *are* cattle

30. Cloud-Native is the Opportunity
30
Traditional Applications
2012 89M
2015 139M
+56%
New Scale-Out Applications
2012 5M
2015 32M
+540%
Source: EMC, IDC, Gartner, AWS

31. Cloud-Native is the Future
31
500M
375M
250M
125M
0M
2012 2015 2018

32. These New Apps Require New Infra
32
LEGACY & TRADITIONAL
APPLICATIONS
CLOUD-NATIVE
APPLICATIONS
Silos
Physical
Clusters
Virtualized
App App App
APIs
Scale-Out
Elastic
App
HW
HW HW HW
HW HW HW
HW HW HW
App
HW
App
HW
App
HW

33. Matching Apps to Infrastructure
33
Don’t
Migrate
Could
Migrate
Enterprise Virtualization
NEW SCALE-OUT APPS
(ELASTIC)
Cloud
Possible
Cloud
Native
$4-8x $1x
Legacy
Custom
Apps
Websites,
Dev/Test, Collaboration Apps,
Packaged Software (ERP/CRM)
Scale-out Web Apps,
Apps Hosted on PaaS,
Big Data, Mobile Apps, etc
Cloud Infrastructure
LEGACY APPS
(INELASTIC)

34. Where is the Urgency for Enterprises?
“Seventy percent of the companies that
were on the Fortune 1000 list a mere 10
years ago have now vanished – unable to
adapt to change,” states Forrester analyst
Craig Le Clair
34

35. Enterprise & Public
IaaS

36. Essential Understandings
36
“The cloud lets its
users focus on
delivering
differentiating
business value ... ”
!
-- Werner Vogels, Amazon CTO
“... get into the [Google] mind-set
... robustness ... has to be
designed into your software ...
assume that the hardware
[is] ... unreliable and broken ...
at any point.”
!
-- Adrian Cockcroft, Netflix Chief Cloud
Architect

37. Netflix in Detail
4.3B, 2000 employees!
100% bet on AWS!
Transitioned from legacy enterprise DC
model to “cloud native” model!
Entered entirely new markets!
EU, APAC, South America!
No boots on ground, no investment!
37

38. Samsung in Detail
320B, 400,000 employees!
Samsung global mobile services!
Using AWS EC2 globally and in U.S.!
Using KT uCloud in South Korea!
Example Apps!
ChatOn messaging application embedded in all Galaxies!
Other mobile applications developed on EC2
38

39. Cloud, Philippines,
and APAC

40. Microsoft Philippines Cloud Report*
Top 3 reasons for cloud adoption!
Supporting unpredictable workloads!
Increasing business / IT flexibility!
Reducing hardware costs!
Interest primarily in private and hybrid!
Security still top cloud adoption concern!
Source: Microsoft Accelerating Cloud in the Philippines Infographic
40

41. KT uCloud
First public cloud in KR; one of first in APAC!
Early adoption was *very* slow!
Ultimately, modern apps drove adoption:!
Online gaming, web startups, mobile applications!
Took 2-3 years to ramp up!
Impediments to adoption:!
Server hugging!
Government regulation (KISA audit standards)
41

42. Public Cloud Service Growth > 23%
5 times that of the overall IT industry
42
http://www.idc.com/getdoc.jsp?containerId=prUS24298013

43. IaaS is $4B and Growing Fastest
43
http://www.idc.com/getdoc.jsp?containerId=prUS24977214

44. Emerging Markets are Growing Fastest
44
http://www.idc.com/getdoc.jsp?containerId=prUS24977214
http://www.idc.com/getdoc.jsp?containerId=prUS24298013

45. IDC’s APEJ Cloud End-User Survey
73% of all companies are already using or
planning to use cloud services within the next
12 months.!
!
More than 25% of organizations expect
that within five years, the majority of their
IT capability will be delivered through public cloud
services and that within three years, they will
access 55% of IT resources through some form of
cloud — public, private, or hybrid.
45
http://www.idc.com/getdoc.jsp?containerId=AP6684423V

46. Brief Word on Hybrid
Cloud

47. Hybrid-first Cloud Strategy
Private Clouds Must be Interoperable with Public Cloud Leaders
HYBRID CLOUD
PRIVATE CLOUD PUBLIC CLOUD
47
OCS
Interoperability means: SLAs, QoS, TCO, Feature Parity, & Same Behavior

48. Hybrid is the Future
Unfortunately … it’s largely IN the future!
Application portability driving hybrid cloud!
No standards yet or ability to have interop.!
Hybrid success stories are hard to find!
OpenStack has best chance to fix this
48

49. Wrapping Up

50. Cloud Fundamentally Transformative
Business Agility
50
DevOps
Enablement
Cloud Native Apps
Hybrid to Public
Elastic Cloud
Architecture

51. Q & A