This document summarizes Canada's Compute and Storage Utility cloud computing service. It notes that typically 70% of IT budgets are spent on maintaining existing infrastructure rather than new capabilities. It then outlines the benefits of cloud computing for users, managers, and enterprises. These include automatic scaling, updating, backup, and pay-per-use models. The document discusses VrStorm cloud services including public, private and hybrid cloud options built on Red Hat Enterprise Linux for security and compliance. It analyzes cloud adoption trends and challenges organizations may face in transitioning to cloud services.

1. Canada’s Compute and Storage Utility October 2010 1

3. Types of IaaS

4. VrStorm Cloud Architecture

5. VrStorm Experience

6. Questions/Discussion2

7. 70¢ per $1 70% on average is spent on maintaining current IT infrastructures versus adding new capabilities. A Crisis of Complexity Exists The Need for Progress is Clear 1.5x Explosion of information driving 54% growth in storage shipments every year. 85% idle In most typical computing environments, up to 85% of computing capacity sits idle. 3

11. operating expense tied to lines of business rather than large capital expendituresJust like a utility – Turn on the tap when needed – off when not 4

12. The Cloud Computing Solution HIGH PERFORMANCE Compute, Storage, Network, Security REDUCE CAPITAL EXPENSES and LOWER OPERATING COSTS Less Expensive, Superior Solution 5

14. By 2011, early technology adopters will forgo capital expenditures and instead purchase 40 percent of their IT infrastructure as a service - Gartner Group.

15. By 2013, 12 percent of the world software market will be Internet-based form of SaaS and Cloud Computing - Merrill Lynch.2008 $46B 6

17. Japan: Digital Japan Creation Project - 100 trillion yen in 5 years

18. Korea: Part of Government Green Initiatives

19. European Union: RESERVOIR project

20. Government of Canada: Cloud Roadmap http://isacc.ca/isacc/_doc/ArchivedPlenary/ISACC-10-43305.pdfCloud Computing is Green IT 7

22. avoiding vendor lock-inBuilt on Red Hat Enterprise Linux 8

23. SpectrumVisor Advantage TM “Best of breed” Virtual Machine provisioning software for optimal performance without vendor lock-in Performance, Flexible, Scalable 9

24. VrStorm Cloud Compliant with Canadian Privacy Laws U.S. companies with Canadian Subsidiaries are exposed to the U.S. Patriot Act See http://www.forrester.com/cloudprivacyheatmap for Privacy regulation. U.S. is “Caution due to government surveillance” 10

25. Types of Infrastructure as a Service Low-cost Self-serve Closed e.g. Amazon On Internet VrStorm Cost-effective Multi-platform (Linux, Windows) Customer Focus Customizable Open Same technology Can be used for Private or Hybrid Solutions Off Internet High-cost Single-vendor Closed e.g. VMWare, Citrix Microsoft Azure Ref: Cloud Codex 451 Group 11

26. VrStorm’s Interoperable Cloud Architecture 12

27. VrStormcloud – Red Hat “under the hood” Red Hat RHEL – most robust, flexible, scalable operating system Red Hat KVM virtualization is highest performance 13

28. VrStormcloud – enhancements VrStorm customizable cloud user interface Use other methods of virtualization if desired Callouts to other public clouds 14

29. VrSTORM Cloud Interface Windows and Linux VMs running Multiple users can create VMs Remote Desktop to Windows image Creating a new VM Remote ssh to Linux image User Interface with Windows and Unix images and remote logins 15

32. Retiring Co-los

33. Render, Compute, Test Farms

34. Backup, Disaster Recovery16

35. Challenges Standards - What system should I use? Confusion - So many options Complexity - How do I start? Transition - What training is needed?  Solution: Pick a pilot project now 17

36. Questions/Discussion? VrStorm – Your Cloud Partner Lynn Sutherland, Vice President & COO lynn.sutherland@vrstorm.com 18

37. Cloud Computing Adoption Model From: The Pragmatist’s Guide to Cloud Computing; rPath 19