Navigating the World of Cloud Computing Mike Klein President, Online Tech

Growth in Cloud Computing Source: Tier1 Research

Cloud Computing: Threat or Opportunity?

Key Business Drivers 1.Application Availability 2.Disaster Recovery 3.Speed (Time to Market) 4.CapEx Free IT 5.Lower Total Cost of Ownership

What Does This Mean? Real Life Examples: Survival of a server failure Zero maintenance windows Complete offsite disaster recovery in hours Spin up new SaaS servers in minutes Testing new releases on production server snapshot

Cloud Computing Spectrum Private Cloud Public Cloud Hybrid Cloud Managed Cloud

Cloud Computing Spectrum Private Cloud Public Cloud Hybrid Cloud Managed Cloud Dedicated/Single Tenant High Availability Model Monthly Pricing Dedicated/Auditable Security Compliant – SOX, PCI, HIPAA Complete Architectural Control Plug & Play One-Click DR (Disaster Recovery) Multi-Tenant Cost-Driven Utility Model Hourly Pricing Limited/Shared Security Compliance? No Architectural Control Programming APIs Extensive Programming DR

Private Cloud Single Tenant Dedicated Cloud High Availability (N+1) Architecture – Zero maintenance windows Automatic failover & resource balancing Dedicated data & network security Hybrid with non-virtualized servers PCI, HIPAA, SOX Compliance Drawbacks: No hourly pricing, API access Less elastic than public clouds SAN Dedicated DB Server Internet

Public Cloud (e.g. Amazon) Compute as Utility Model Shared, non-redundant hosts Local, non-persistent storage Configure & pay online Pay by the hour with “spot demand” API access Drawbacks: Availability often not guaranteed Complex pricing model No failover - If host crashes, data is lost Not PCI or HIPPA compliant Internet Amazon EC2 Cloud is most likely running on lousy hardware... an instance mysteriously crashed loosing data kaczoanoker on Twitter

Managed Cloud More Secure Multi-Tenant Option “Slice” of a High Availability Private Cloud Automatic failover & resource balancing Dedicated data & network security Hybrid with non-virtualized servers PCI, HIPAA, SOX Compliance Drawbacks: No hourly pricing, API access No architectural control vs. private cloud SAN Internet

Which Cloud is Right? Private Cloud Public Cloud Hybrid Cloud Managed Cloud Large Enterprises Single Tenant Req’t Highest Security Req’t PCI/HIPAA/SOX Need Arch Control I/O Intensive Apps Integrate Legacy Systems (w/ Colo) Critical + NonCritical Apps Enterprise Apps Enterprise Security PCI/HIPAA/SOX SaaS applications Test & Dev Systems Short Life Cycle Noncritical Apps Compute Intensive Highly Elastic Apps

2011 Cloud Trends

1.More Confusion (Not Less) 2.Computing as a Utility on the Low End 3.Managed Clouds Address Application Availability 4.Enterprises Adopting Private Clouds 5.Bar is Raising for Hosting Standards 6.Security & Compliance 7.Disaster Recovery

More Confusion (Not Less) Opportunity: Educate Your Clients

Low End Compute as Utility Public Cloud Computing Amazon Leading Change Designed for Commodity Pricing – Non-Redundant Hosts – Non-Persistent Storage – No Failover/Availability Programming req’d for availability & DR Complex Costing Model Spot Pricing Market Opportunity: Programmers & System Designers

Managed Cloud Emerging Managed Cloud Computing High Availability, N+1 Infrastructure “Slice” of a Private Cloud – VMware Enterprise version – N+1 Hosts, Storage & Security – Automatic Failover Full Mix of Managed Services Opportunity: Differentiate vs Commodity

Enterprises Adopting Private Clouds Single Tenant, Dedicated Private Cloud Yankee Group: 67% Prefer Private Cloud Yankee Group: 67% Prefer Private Cloud Security & Compliance Are Major Drivers Security & Compliance Are Major Drivers More Cost-Effective for Most Enterprises More Cost-Effective for Most Enterprises Complete Architectural Control Complete Architectural Control Dedicated Data & Network Security Dedicated Data & Network Security PCI, HIPAA, SOX Compliance PCI, HIPAA, SOX Compliance Opportunity: Enterprise Computing for SMB

Raising the Bar on Hosting Standards Auditing Standards Are Getting Tougher – SAS 70 -> SSAE 16 -> SOC 2/SOC 3 – SOC 2/SOC 3 Separates Men from Boys – HIPAA & PCI Expect Shake Out in Public Cloud Market – 100’s + Amazon, Google, Microsoft, Rackspace … Regional Players Lead in Private & Managed Clouds – Hands-on, Face-to-Face Support – High Trust Business

Security & Compliance Security Concerns Are Significant – 51%: Security #1 Reason Not to Cloud Highlighted by Recent Breaches – Google, Sony – $1.5M/incident HIPAA fines #1 Driver to Private Cloud – Single Tenant, Dedicated Network & Data Security – SOX, HIPAA & PCI are Key Drivers Opportunity: Solve HIPAA, SOX, PCI Pain

Disaster Recovery

Conventional Backup & D/R Trade-offs

The Cloud Shifts the D/R Curve

Navigating the World of Cloud Computing Which Cloud is Right for Your Clients? – Private Cloud – Public Cloud – Managed Cloud Key Issues to Consider: – Security – Compliance – Availability – Disaster Recovery

Navigating the World of Cloud Computing Mike Klein President, Online Tech