This document discusses the evolution of data centers and cloud computing. It notes that the workforce is increasingly mobile, the nature of work is transforming to be more collaborative both within and outside organizations, and budgets are under pressure. It discusses how colocation services and cloud computing address these trends by providing scalable, on-demand infrastructure and applications at lower costs. The basic building blocks of cloud services are software as a service (SaaS), platform as a service (PaaS), and infrastructure as a service (IaaS). Enterprises see potential benefits but also have concerns that need to be addressed for cloud adoption.

1. The Evolution of the Data Center
June 7, 2011
© 2011 Windstream Communications, Inc.

2. Introduction
Zeus Kerravala, Yankee Group
Senior Vice President and Distinguished Research Fellow
As head of the Research Council, Mr. Kerravala provides thought leadership and drives the
strategic thinking of the research organization. Much of his expertise involves working with
customers to solve their business issues through the deployment of infrastructure technology.
Rob Carter, Windstream Hosted Solutions
Director of Managed Hosting Services
Rob Carter serves as Director of Managed Hosting Services for Windstream Hosted Solutions. In
this role he is responsible for overseeing Cloud Computing, Engineering, Hosting Services
Implementation and Support, as well as Pre-Sales Solutions Engineering.
2

3. The CIO Headache
Speed to market remains
a top business priority.
Distributed enterprises drive
a collaborative culture.
Line-of-business executives
want better control over IT
IT.
Consumer technology is heavily
influencing orker behavior.
infl encing worker beha ior
IT needs greater agility to
respond to the business faster.

4. Proof Point 1: Workforce Is Increasingly Mobile
40% of employees
More than 50%
have high speed
have high‐speed
of organizations
f i ti
data cards
spend more than 40%
of their day away
from their desk
4% of workers
use tablets
business
38% of purpose
enterprises identify
a cellular phone or
smart phone 45 % of
as their primary corporations
device are interested
in mobile
applications

5. Proof Point 2: The Nature of Work Is
Transforming
• Collaboration across the enterprise • Collaboration outside the enterprise
• Speeds innovations, makes best use • Consumer technology is heavily
of (expensive) human resources influencing the way users work
Channel Partner
EMEA Sales
Manager
Global Director
APAC Sales
Manager
US Office
Manager
Remote Worker

6. Proof Point 3: Budgets Are Under Fire
How will the economic outlook for 2010 impact your organization’s
technology investments? Would you say, you expect…
Base: Asked everybody

7. 2010 Was a Watershed Year in IT
Workers Demand a WiFi Becomes
Better Experience Preferred Access
Cloud Computing
Matured Wireline Speed
Jump
Device Evolution
Takes a Leap

8. Data Center Delivery Addresses The Mobile World
Mobile Computing = 10 billion units
Internet Computing Era ~ 1 Billion units
PC Computing Era ~ 100M units
Minicomputer Era ~ 10M units
Mainframe Era ~ 1M units
1960s 1970s 1980s 1990s 2000s 2010s 2020s

9. Key Trends Impacting the Data Center
Reduce Cost and Raise IT as a service Applications Green IT—power,
Productivity availability cooling and space
Server virtualization — Network and VM-Level Workload
higher performance storage awareness provisioning
convergence

10. Colocation Services
• Includes third party management of servers, networking, storage,
application delivery controllers and other infrastructure
• Provides infrastructure driven management solutions
g
• Can be used as a part of a long term cloud strategy
• Strong BCDR value proposition
• Similar to cloud, provides buy versus build and shifting Capex to Opex
10

11. Top Drivers of Colo Services
• Scalability and performance of IT
infrastructure
• Cost red ction
reduction
• Improved BCDR capabilities
4000 Users
3000 Users
• Faster technology 2000 Users
1000 Users
upgrades/migration
• Meeting compliance and
regulatory requirements
• Time to market
• IT infrastructure consolidation
• Lack of internal IT resources
11

12. Colo/Hosting Segmentation
• Shared Web Hosting
• Private Virtual Servers
• Dedicated Hosting
• Managed Hosting
• Private Colocation
• Hybrid Colocation
12

13. Why cloud? Why now?
• Maturity of virtualization
• D li
Delivers a fl ibl IT model
flexible d l
• The most cost effective,
scalable way to deliver
applications and services
• Network speed evolution
p
makes cloud a reality
• Various consumption models
• It’s the computing model that
best fits our IT strategy and
worker profiles

14. Cloud Computing:
A Not So New Kid On The Block
What cloud offers:
• Resources on demand
• Instant provisioning
• Pay-as-you-use
• Online access
What is debatable:
• It’s outsourcing by another name
• Cheap
• Secure
A new operational model for enterprise IT

15. Basic Building Blocks For Cloud Services
Application layer delivering
productivity, collaboration and
SaaS: Software as a Service
ance
business applications on a
subscription basis
urity and Complia
Management platform & tools
to develop, deploy and
PaaS: Platform as a Service
d
integrate cloud-based
applications.
Secu
Pool f
P l of computing resources
ti
IaaS: Infrastructure as a Service (servers, storage) helping IT
staff & developers to scale
requirements in real-time,
on a per-usage basis.
Virtualization
of physical infrastructure
Using private
gp
or public
resources

16. Bright Future For Clouds In The Minds
of Enterprises
• Aligns well with new CIO mandate
• Overall, enterprises are optimistic about cloud computing
• General concepts of elasticity, on-demand, capex-to-opex conversion of IT all
resonate with decision-makers at a high level
• Enterprises recognize the value proposition of cloud but need to see some
barriers/concerns addressed
Opinion about cloud computing

17. Top use cases for cloud computing
SaaS
PaaS
IaaS
Base: Organizations that have already deployed PaaS or IaaS

18. Lower support costs lead SaaS drivers
Top drivers are based
on reducing cost and
complexity
Considering larger
organizations have
been more likely to
adopt SaaS, they
have learned from
experience the hidden
costs of premises
premises-
based
implementations
Base: Organizations that already deployed or plan to deploy SaaS
within 24 months

19. Infrastructure, people costs drive IaaS interest
On-demand storage and
virtualized
backup/recovery options
are of great interest to
enterprises
p
Base: Organizations that already deployed or plan to deploy IaaS
within 24 months

20. Status check: IT assets shifting to cloud
Last year Today In 3 Years
Less than a third of IT assets
89% software apps (n=214) 73% 32%
86% server platforms (n=97) 76% 23%
88% storage (n=113) 73% 43%
More than half of IT assets
8% software apps (n=214) 11% 38%
5% server platforms (n=97) 7% 48%
4% storage (n=113) 12% 39%

21. Data Center Vision: Connected Clouds
Businesses Have Freedom of Choice
Public Cloud
Private Cloud
Colocation
• A Federation of Clouds
Based on Open Standards
• Application Fluidity
• IT service mobility

22. Summary
Consumerization, virtualization and mobility are transforming IT
Data Center delivery is the only scalable, cost effective method of meeting
D t C t d li i th l l bl t ff ti th d f ti
current IT challenges
Allows for multi OS, device independent solutions
Vision of the data center includes private cloud, public cloud computing and
managed / colocation services
Cloud computing is a new operating model that can offer on demand
Cloud computing is a new operating model that can offer on demand
compute resources to scale IT and provide faster time to market
Colocation services can augment a companies cloud computing strategy
Colocation services can augment a companies cloud computing strategy

23. Windstream Hosted Solutions
Rob Carter
Director of Managed Hosting Services
Windstream Hosted Solutions
23

24. Windstream Snapshot
S&P 500 company with full suite of IP-based voice and data services, MPLS
networking, data center and managed hosting services and communication
systems to businesses and government agencies
• $4 billion in annual revenues
• 10,000 employees
• 29 states and District of Columbia
• Data centers: 13
• 60 000 route miles of l
60,000 t il f local
l
and long-haul fiber network
24

25. Data Center Footprint
25

26. So What’s Next?
One size
Make the right does not
d t
decision for fit all
your business
now that
Colocation to
makes sense
Cloud,
Cloud they all
in the future
have their place
depending on
p g
technical /
business
requirements
26

27. Windstream Data Center Approach
27

28. Cloud Flexibility
28

29. It’s the Cloud; Who Cares?
Cloud infrastructure still relies on the same power cooling
power, cooling,
and connectivity as physical infrastructure, therefore it’s
important to partner with a reliable, experienced provider
29

30. Selecting the Right Cloud
30

31. Uptime SLAs
• Understand what you’re buying:
Uptime Allowable Downtime per Allowable Downtime per
SLA month year
99.5% 3.6 hours 43.8 hours
99.9% 43.7 minutes 8.8 hours
99.95% 21.8 minutes 4.4 hours
99.99%
99 99% 4.4
4 4 minutes 52.6
52 6 minutes
• SLAs generally apply to infrastructure and not the
application
• Adjust accordingly
31

32. Managed Hosting Offerings
32

33. Managed Services Benefits
Augment existing staff for critical projects
• B kl d of revenue d t i bilit t get
Backload f due to inability to t
implementations completed
• Freezes on hiring left a small internal talent pool and
caused a rush to hire qualified candidates
Leverage a large pool of resources for the price of one
FTE
• Multi-vendor benefits
• 24x7 Coverage
• SLA’s
33

34. Why Data Center?
Hurricane Katrina, 2005: The 2005 hurricane season was the most active Atlantic
hurricane season in recorded history with 27 named storms, seven making landfall in the
U.S., causing billions of dollars in damages. Hurricane Katrina was the most destructive
of these. For nearly 30 days, downtown New Orleans was without full power, and
therefore unable to maintain business operations. Many communications providers were
unable to serve their communities during this time, but Windstream customers were in
service for the duration. Businesses with equipment in Windstream’s New Orleans
collocation site were still able to serve their customers, locally and globally.
Nashville Floods of 2010: On May 3, 2010 the Cumberland River reached 51 ½ feet in
Nashville, TN, 12 feet above flood stage. Hundreds of businesses were closed due to
flooding and power loss. When other service providers’ data centers became flooded,
Windstream was able to provide emergency service in its Nashville Data Center to get these
businesses back in operation. Longtime Windstream customers were able to ride out the
disaster with the peace of mind that their equipment and end users’ experiences were safe.
USA Tornadoes of 2011:
875 tornadoes with current damage estimates of roughly $9 billion (Estimate as of May
24) and 499 fatalities.
Some Windstream data centers were within miles of tornado destruction, but no
customers were impacted due to robust redundant facilities, solid preventative
maintenance programs, practiced emergency response procedures, and great vendor /
supplier relationships
34

35. Enterprise-Class Colocation
• Tier II and III, SAS 70 Type II compliant data centers
• System + System uninterruptible power supply (“UPS”) systems, and carrier
neutral network connections
• Heating, ventilation and air conditioning (“HVAC”) systems to maintain
temperature and humidity within strict tolerances
• Hardened facilities with automated facility management tools
• Fire control with early warning smoke detection, clean agent suppression and/or
dry-pipe sprinkler system
• 24 x 365 NOC & facilities staff provide for high security externally and internally
• Service Level Agreement (“SLA”) backed guarantee of 100% power availability
• Modular builds - most expansions are less than four y
p years old (
(10k sf or larger)
g )
• 24-36 in raised floor no open systems or racks
35

36. Summary
Pick a partner that you can trust and will
pa a a u a d
adjust as your needs change
Have solid requirements and know what
you are buying
Focus on what you do well and outsource
where it makes sense
36

37. Question and Answer
Session
37

38. Thank
Th k you!
!
Presentation and replay will be available at XXXXX
© 2011 Windstream Communications, Inc.