The document discusses challenges facing the web hosting industry and opportunities presented by cloud computing. It notes that web hosting has become commoditized, while customers increasingly demand hosted web apps (Summary Sentence 1). The author argues hosting providers should focus on monetizing customer data and apps rather than just web space in order to increase revenue (Summary Sentence 2). The author presents a new cloud server infrastructure platform called PRIMERGY CX1000 that is designed for large-scale data centers and aims to significantly reduce costs for hosting providers (Summary Sentence 3).

1. Are the Kids Alright?
Web Hosting in Cloud Computing Era
Glen Koskela
CTO Nordic Region
Copyright 2010 FUJITSU

2. Web Hosting Spells “C-O-M-M-O-D-I-T-Y”
Thousands of hosting companies
competing for your next customer
It costs €4.50 to go up the Eiffel tower
up to the second floor by stairs
The kids are not alright: revenue increase a rising challenge
Glen Koskela, CTO Nordic Region 1 Copyright 2010 FUJITSU

3. Application Context More Into Account
Web sites getting more costly & complicated to run
Rich media, social networking, bidirectional services,
collaboration, ecommerce, IP services, APIs, DBs,
messaging encryption, archiving, security,...
Instead f
I t d of web space, value driven market
b l di k t
is interested in web apps
Customers are getting attracted to novel ways to
benefit from exposing web data – greater interaction,
richer Internet applications, collaboration and social
software – instead of just designing web-sites
web sites
Apps and data are at the centre of emerging web-presence value
Glen Koskela, CTO Nordic Region 2 Copyright 2010 FUJITSU

4. If You Don’t Monetize, Someone Else Will
Identify what motivates customers and increase
your value as web hosting provider, or position
your company for acquisition…
Web hosting that delivers profit
Focus on the monetization of data on a few killer web apps/services
Rely on an adapted and scalable infrastructure
Get more data from user or from other websites through platforms and APIs
websites,
Get more direct revenues by larger exposure bringing additional traffic
Improve core services monetization through the exploitation of new data
p g p
Business cases are made of revenues, not just costs
Glen Koskela, CTO Nordic Region 3 Copyright 2010 FUJITSU

5. Customer Priorities Might Shift Quickly
LAMP is not enough, need to move beyond shared web hosting
pp g
Market demand for hosted web apps and functional web hosting
SaaS based applications
Predominantly commoditized business applications
Typically hosted by software vendor using multi-tenant model
Many web hosting companies are well positioned to innovate
a new economic and technical model for business applications
Innovations that bring new web functionality to current
non-users
non users of advanced enterprise 2 0 software
2.0
Value driven web hosting runs application instances
Glen Koskela, CTO Nordic Region 4 Copyright 2010 FUJITSU

6. Collaborative Enterprise Applications
Traditional on-premise enterprise software is in a phase of consolidation
No dominant design y for web-based enterprise software
g yet p
Collaborative application model not defined yet, no given business model defined yet
No dominant model for technical design yet
The defining characteristics are all core competencies of web hosting
Fully web-based user interface
Hosted deployment, sold in volume, no long commitments
Simplified pricing, subscription business model
Use of a integrated software architectures
Enterprise 2.0 model undefined but an interesting business opportunity
Glen Koskela, CTO Nordic Region 5 Copyright 2010 FUJITSU

7. Develop a Competitive Web Advantage
Ability to power scalable services which competitors find hard to replicate
Ability to let customers monetize data-driven services
y
Ability to let customers use open innovation to
accelerate the development of their services
Technical and financial entry barriers increasing
Diverse use cases drive datacenter requirements
Limited off-the-shelf solutions
Mostly homegrown developments for both closed hw and semi-closed sw
Infrastructure is a key enabler of future programmable webhosting
Glen Koskela, CTO Nordic Region 6 Copyright 2010 FUJITSU

8. Prepare for Clouds
Impact of emerging cloud services to web-based Ability to install any
company web-sites, business processes, web application
application workloads, and information services
To succeed, must help customers to build,
organize and manage new types of IT
infrastructures that meet the needs of web-site
and web scale application hosting
web-scale
And must help them to use agility, flexibility and
efficiency to their market advantage
Evolve towards dynamic infrastructure provisioned on-demand
Glen Koskela, CTO Nordic Region 7 Copyright 2010 FUJITSU

9. The Main Difference Compared to Today
What differentiates programmable web hosting from web hosting?
Turning on the power of the Internet = prepare for multiple value streams
Application management complexity?
Image variations, lifecycle management?
Change management, incident resolution?
Variety of SLAs to offer and new monitoring tools?
Less consolidated sites per server?
Scaling? Provisioning? Automation? Storage?
Correct answer: profit
Glen Koskela, CTO Nordic Region 8 Copyright 2010 FUJITSU

10. Web Facing Apps Fit Web Hosting
VM-ready applications are New web + apps sites – three-tier
similar to volatile web sites architectures with minimal DB tiers
Multi-tenant compute farms Modular mashups + web apps –
loose coupling services;
On-demand build scale via load balancing and
g
Dynamic capacity app-level caching
Underlying layers can be
y g y Highly parallelized workloads – HPC
w/o close coupling, H d
/ l li Hadoop
designed horizontally and
replicated across customers Apps that fit within a single VM –any
type of self-contained x86 app
What would a cloud infrastructure mean for your revenue growth?
Glen Koskela, CTO Nordic Region 9 Copyright 2010 FUJITSU

11. Performance = Bottom Line
Horizontal scaling applications must perform well, or users click-away…
Glen Koskela, CTO Nordic Region 10 Copyright 2010 FUJITSU

12. Options for Cloud Infrastructure
$$$ + Energy efficient
Industry
Rack Blade Proprietary + Facility efficient
servers Densityy standard
servers
-CapEx
Lock-in mnt sw - OpEx
Software
Standard Blocks Proprietary hw
in-a-box System design independent Internet
Incremental
Decouple storage Datacenters
Complex and
No COTS
Smaller Managed
Megasize Massive volume
deployments Low cost units web/apps hosting
Inexpensive way to scale business is required
Glen Koskela, CTO Nordic Region 11 Copyright 2010 FUJITSU

13. Focus on the Cost of Doing Business
Future hosting opportunities all are made more cost-efficient by on-demand
(web) server infrastructures – limited off-the-shelf solutions
Allows to combine a cost-effective architecture Freedom of management
with high-quality customer experience software preferred
Make use of more
Reduction of both OPEX and CAPEX virtualization,
needs new breakthrough technologies! dynamic provisioning,
automation,…
More commodity hardware preferred
Concrete need for specialized servers,
purposefully developed for hosting business
Hosted web apps delivery fabric excels in cost-efficiency
Glen Koskela, CTO Nordic Region 12 Copyright 2010 FUJITSU

14. Cloud-Server Infrastructure Platform
Objectives
Optimize 19” rack and server standards for massive
scale-out d
l datacenters and Cl d
d Clouds
Remove “hw overhead” of classical datacenter infrastructure
Address the needs for
High scaling and lowest power consumption by utilizing
shared cooling & simplified design
Double DC density with innovative cooling & minimized “working footprint”
Cut down CAPEX by rip & replace server node design
Simplicity for management maintenance and operation by customer replaceable server
management,
(CRS)
Cloud eXtension
Glen Koskela, CTO Nordic Region 13 Copyright 2010 FUJITSU

15. Fujitsu’s Announcement
Designed for service providers ”Cloud eXtension”
PRIMERGY CX1000
Cloud infrastructure platform for IaaS
p
Scale-out platform for Web2.0 applications
For large scale out data centers with
scale-out
100s or 1000s of server nodes
Energy savings
Anyone facing p
y g power, cooling or
, g Low cost infrastructure
density problems with current facilities Space savings
Environmental control
Cool-Central architecture
Server infra designed for clouds, managed hosting and web hosting
Glen Koskela, CTO Nordic Region 14 Copyright 2010 FUJITSU

16. New Economics @ Critical Cost Drivers
OPEX cuts
Energy costs
~20 % off
Cooling costs
~20 % less
20
DC space
up to 40 % less
p
CAPEX gain
up to 20%
Cuts down cost of doing web business: OPEX and CAPEX
Glen Koskela, CTO Nordic Region 15 Copyright 2010 FUJITSU

17. What is PRIMERGY CX1000?
Back-to-back setup
38 nodes in each unit Compute
Innovative shared cooling infrastructure
Simple, very energy efficient
I/O at front +
Standard server board Compute
Future-proof flexibility nodes
Rip & replace design
IPMI server management +
Switch agnostic Standard
St d d
Standard switches in 5 bays switches
Shared or dedicated mnt LAN
Ideal platform for web applications, VM server farms, apps farms, IaaS
Glen Koskela, CTO Nordic Region 16 Copyright 2010 FUJITSU

18. Richness in Simplicity, Value in Customizing
Reducing overall costs of doing web
hosting business
Better balance between space, power,
cooling and capacity
Adding value to customer specific
line of services, web and apps
Highly customizable, integration for off-the-shelf
x86 nodes to fit with real workload patterns
We looked for the complexity in servers – and removed it
Glen Koskela, CTO Nordic Region 17 Copyright 2010 FUJITSU

19. Facility Efficiency
Rack servers PRIMERGY CX1000
p
100s of fans per rack enclosure p
2 fans per enclosure
Hot aisle & Cold aisles No Hot aisles, Back-to-back
Front to back
Front-to-back airflow Front to top
Front-to-top airflow
Cool-Central architecture
Glen Koskela, CTO Nordic Region 18 Copyright 2010 FUJITSU

20. In the Midst of a Significant Transformation
MSP clouds
Public (tier 2)
Mega clouds
Enterprise
E t i
clouds
Driving the hosting industry toward new cloud infrastructure space
Glen Koskela, CTO Nordic Region 19 Copyright 2010 FUJITSU

21. Glen Koskela, CTO Nordic Region Copyright 2010 FUJITSU