This document summarizes trends in managed hosting and cloud computing technologies. It discusses the evolution of managed hosting services towards more advanced virtualization, platform as a service (PaaS), and cloud computing models. Specific technologies covered include hypervisor virtualization (VMware, Xen, Hyper-V), OS virtualization (Parallels Virtuozzo, Solaris Containers, OpenVZ), and cloud platforms from Amazon (EC2), Mosso, Savvis, and Sun Network.com. Utility computing and on-demand storage services from Amazon S3, Nirvanix, Layered Technologies, and Rackspace are also profiled. The document concludes that future winners in this space will be those able to offer full virtual hosting

1. May 19-20 l Washington, DC l Omni Shoreham
Cloud Computing, Virtualization,
and on-demand Services: Trends
in the Managed Hosting Space
Daniel Golding
Vice President, Tier 1 Research

2. Managed Hosting Technology Trends
Managed Hosting Services Evolution
Infrastructure &
OS level
Application
layer
management
Managed
Virtualization
PAAS, SaaS
Provisioning,
Integration,
billing
Network
& Datacenter
Time and Revenue growth
push Managed Hosting
Providers upward and outward
eDiscovery Managed
Storage
DR
Protection Utility
Computing
On-Demand
Storage
Managed
Security
Managed
Mail
Amazon S3
Nirvanix
Layered Tech
Evolving
Technologies
Evolving
Technologies
Managed
Database
VMWare Parallels Denali XEN MS Trango Sun
Amazon EC2
Google AppEng
Mosso
Verizon VUC
Colocation
Hosting
Shared Hosting
Managed Hosting

3. Evolution of Managed Hosting Sector
> Major technology Trends
− Investment in Managed Services
> Application Management – CRM, SAP, messaging
> SaaS facilitation – billing and back-end, app-exchange
> Managed security, compliance, e-discovery, consoles
> Managed Database, storage, load balancing, DR
− Infrastructure and Cloud Computing
> Virtualization, Utility computing, on-demand storage
> Not application isolation nor desktop virtualization
> Platforms as a Service – hosting the applications/SaaS
− Range from social networking, to CRM-centric, to
functional

4. Hypervisor Virtualization Technologies
> Bare Metal/Hypervisor/x86Server virtualization
− Best for dev/testing, virtual desktop, legacy server
consolidation
− Virtualize access to hardware
− Each VM has a guest OS
− less server sprawl
> VMARE ESX
> Citrix XENserver (Linux)
> Parallels Server
> Microsoft Hyper-V
> Trango
> Sun xVM
Virtual Machines
Bare Metal Virtualization Technology
Platform As a Service
Apps
Pre -
Production
Apps
Virtual Machines
SAAS SAAS
X86 Hardware
Guest OS Guest OS

5. OS Virtualization Technologies
> OS Virtualization
− Users run just one Kernel/OS at a
time – virtualize access to single
OS – meaning less OS sprawl
− Good for well powered
datacenters, sensitive and
numerous apps, workloads,
SaaS
− Quick provisioning
> Parallels Virtuozzo Containers
> Sun Solaris Containers
> OpenVZ
> Unix chroot command
> Linux V-Server
Operating System Management
OS Virtualization Technology
Platform As a Service
Apps
Pre -
Production
Apps
Virtual MachinesVirtual Machines
SAAS SAAS
X86 Hardware

6. Evolution of Managed Hosting Sector
End-user
Application
Layer
utilization
Traditional
Managed
Hosting
Services X86 Hardware
Operating System Management
Middleware
Platform As a Service
Apps
Pre-
Production
Apps
SAAS SAAS
c Data
SAN/NAS/DAS

7. Virtualization Trends
> Virtualization is helping to expand cloud computing
− Virtualization for on-Demand Storage
− Virtualization for Utility Computing
> includes authorization services for particular
users or apps
> mapping dependencies between services
> enforcing policies for how services can be used
> monitoring performance levels
− Automation features
> Centralized consoles for orchestration
> provisioning, billing and multi-platform management

8. VIRTUALIZATION: USER PROFILES
> VMware users offering virtual hosting products
− Verizon Bus., BT AT&T, IBM, Savvis, Terremark, Rackspace
> shared infrastructure, Utility computing, cloud computing
> Struggling with flexible pricing, automation upscale/downscale
− SunGard
> data protection and disaster recovery
> Parallels - automation tools and virtualization
− Rackspace, The Planet, ServerBeach, Dedipower, Hostway
> Fewer licenses in datacenters, but many desktop users
> UK-based
− Xcalibre – Flexiscale: utility/shared infrastructure startup
− Enigmatec – policy based process automation

9. Virtualization & Cloud Computing
> Virtualization in full swing
− Can be dedicated virtual server
− Can be shared grid
− Automation is key component
> Cloud Computing
− Is a direction rather than an
absolute
− Managed Hosters are gradually
transitioning to new services
− Gap exists between
commercial and technical
offerings
Is this real or
perceived?
??
??
??
??

10. CLOUD or GRID COMPUTING?
> Not to be confused with SaaS/Apps
− GoogleApps, Windows OfficeLive, Zoho
> run on top of underlying platforms
> Grid has many definitions
− Network of computing clusters whose resources can be
used in parallel; as needed; as a virtual super-processor
− Intel, Compaq, Sun, IBM - university and medical projects
> Cloud Computing
− Tends to be much more commercial in nature
> On demand infrastructure for small/med apps
> SLA driven
> Pay by the drink

11. Cloud Computing Defined
> Cloud Computing is highly available infrastructure
− Public Infrastructure composed of computing power,
storage, security
> Platforms, software, applications, services reside on top
− Immediate availability, ordering, provisioning on the web
> Easier and cheaper than deploying it in-house
− Easily manageable from a single web interface
> Partition, synchronize, distribute, secure, store data/apps
− Run from centralized deployments/datacenters
> Supports Platforms as a Service
− Real-time accessible and usable across the web
> Many (often smaller) applications run off more
consistently available resources

12. Cloud Computing Defined
> Cloud Computing: attractive to businesses
− Pay by the drink - Credit card billable
− SLA driven
> defined response times, immediate recreation of
instances, consistent service for all users
− Providing easy integration with back-end services
− Should always be available and self-healing
− Unobstructive/transparent: client only sees end workload
− Multi-tenant infrastructure with complete security/privacy
− Linearly scalable on the fly (up/down) – cost reducing
Note: Enterprise clouds are not included in this discussion

13. Utility Computing & On-Demand Storage
> Two developer driven components of the Cloud
> Utility computing
− Range from minute to monthly provisioning/billing
> Target is web based ordering + instant provisioning
− Should be pay by the drink & include an SLA
− Should be desktop mountable & immediately available
− Should have back-end storage and other web services
> On-demand Storage
− Range from Managed hosters offering on-demand
SAN,NAS and DAS - orders possible with seasonal billing
− Back-up/Protection wins when on-demand storage fails

14. UTLITY COMPUTING PLATFORM
> Amazon EC2 (and Amazon Web Services)
− Believe cloud is a pricing scheme that packages storage,
compute capacity, database, queuing, messaging
services and payment methods to developers
− 2006 launched elastic cloud computing (EC2)
> Uses Xen hypervisor for virtualization
> Supports open Solaris but not windows (no licensing)
> Elastic Migration toolkit for migrating virtual images to
remote Amazon EC2
> Rely on API’s for developer apps
> User dictates hard drive, memory, and charged per
compute hour
> Accounting system tracks and manages virtual
resource usage

15. UTLITY COMPUTING PLATFORM
> EC2 wraps nicely into other Amazon Web Services
− Flexible payment services (FPS)
> parameters that govern payment conditions
> Only in US$ currently – need worldwide currency’s
− Simple DB
> covers 80% of DBA needs - store, index, query a system
− Simple queue Service (SQS)
> whenever 2 computers need to talk in an
asynchronous manner – they can be loosely coupled
− Simple storage Service (S3)
> Animato (Amazon poster child)
− Launched on Facebook: 25,000 new users an hour
− From 50 to 3,500 servers in 2 days (for (750,000 users)

16. UTLITY COMPUTING: COMPANY PROFILES
> SAVVIS' Utility Compute
− App. platform delivering availability, scalability, flexibility
− Blade-based servers dedicated to a specific customer
− Multi-tenant chassis provides provisioning within 5 days
− Production servers have access to pool of failover servers
> Joyent (Startup)
− Free hosting to Facebook app developers via direct link
> Mosso (A Rackspace company)
− Supports Linux dev languages, Windows platforms, mail
− Scalable storage, bandwidth, utility compute and requests

17. UTLITY COMPUTING: COMPANY PROFILES
> XCalibre (UK based)
− Dedicated hoster with Xen based Flexiscale – utility billable
infrastructure for ISV’s – provisioning in <1 min
> Sun’s Network.com
− Pay per use compute utility, with access to published apps
> EMC’s recently launched cloud service
− SAP – software available on EMC storage over the web
> IBM – Blue Cloud
− Developing hardware/software/service for finance market
> AT&T, Verizon Business, Navisite
− 5 day provisioning for business (security/backend tied in)

18. ON-DEMAND STORAGE FOR DEVELOPERS
> Amazon Simple Storage Solution (S3)
− Competes on price and brand - Works well with AWS’s
− Includes desktop backup software, file sharing, flash drive
− UK 20% more price. Charges for GET/PUT/LIST.
− Accessible thru APIs (REST and SOAP)
− No credit cards services. No VMWare support.
− DDOS attack in Feb.
> Nirvanix
− Charges more, higher-quality offering, better features
− Includes desktop backup software, file sharing, flash drive
− Popular Internet Media File System -transcoding media
and image manipulation + good search capabilities
− New funding = European and Asian expansion
− data accessible to developers thru APIs (REST & SOAP)

19. ON-DEMAND STORAGE FOR DEVELOPERS
> Layered Technologies (DynaVol)
− Supplemented by utility computing
− No credit card sign-up. Aggregated fixed monthly fee.
− Strong security like the others.
− NB: Mounts as a File share on a Mac, Linux or BSD Client
− Uses existing industry control panels to ftp backup files
− Not facilities based; Narrower footprint
> Rackspace CloudSF
− In beta; No SLA. Renown for support. Low pricing
− No gigabyte storage. Access data via API (not http)
− No file system access = non mountable on desktops.
− Similar to S3. Good access speeds within datacenter..

20. ON-DEMAND STORAGE FOR OTHERS
> Savvis Utility Storage
− SAN, NAS, 50GB increments, Utility Backup and Vaulting
> SunGard Availability Services
− “always on” RAID-protected SAN
> AT&T, Verizon Business, SunGard, Peer1, etc.
− Supports, install, configure, manage, monitor the system
− All offer on-demand storage from a commercial pricing
perspective. Orderable days/weeks in advance.
> EMC - acquired Mozy for backup services
> Google – back-up services for desktop users
> Yahoo - elementary briefcase offering

21. Where are we today

22. FUTURE WINNERS
> Those that virtualize or offer virtual hosting
> Those Service Providers that can offer Cloud Services
to SMB’s, Enterprises, ISV’s, SaaS provider and the like
− Fully integrated Platform as a Service (security, analytics,
billing, DB, OS, storage, DR, compute power,
troubleshooting of apps) to SaaS, ISVs, SMBs, Enterprises
> Or niche specialists in a raw component thereof
− On Demand Storage to developers and beyond
− Utility Computing to developers and beyond
− Other (mobile or VoIP platform)

23. Questions ?