1. Future of Cloud: Will Dis-economies
of Scale Break the Silver Lining
Margaret Dawson, Vice President, Product Management

2. It’s all about the data
2

3. Exponential digital data growth . . .
➡ Every second, 58 Terabytes of
digital data are being created
➡ 35 Zettabytes of digitally stored
data by 2020
➡ Storage managed by
a storage administrator grew
from 81TB in 2010 to 126TB in
2011
➡ 15 out of 17 sectors in the US
have more than 235 TB of
data – same as the Library of
Congress
33

4. And it’s all kinds of data
Unstructured
Structured
4 4

5. Even data about the data . . .
“one person’s data is
another person’s
metadata”
5 5

6. And it’s all business or mission critical
Not surprisingly, financial data comes in first, but nearly all data
used by businesses is deemed critical
Financial Data 70%
Customer Records 65%
Email, IM & other Communication 65%
Productivity Files: Excel, PPT, Word, etc 57%
Anything in our Database 56%
Employee Personnel Information 48%
Product Code or Other IP 27%
Anything on Employee Laptops 24%
CAD/CAM Designs or other Schematics 24%
Patient Data or Medical Records 17%
Photos, Images Video or Graphics 10%
Other 5% Source: Symform Data Growth &
Protection Research
March 2012
6

7. But the Cloud will save us!
7 7

8. Well, not exactly . . .
8 8

9. One of the big problems
Cloud is powered by massive centralized infrastructure
9

10. This other side of cloud is getting attention
10

11. Questions are starting to be asked
➡ How Green is Your Cloud?
• Growing concentration of data
centers in key locations is having
significant impact on electricity
grid & sources
• Amazon, Apple & Microsoft are
rapidly expanding without
adequate regard to source of
electricity use dirty energy
• Yahoo & Google lead sector in
prioritizing access to renewable
energy
• Facebook has now committed to
power its platform with renewable
energy
• Akamai first company to report on
its carbon intensity
11

12. The Cloud is driving record build out
122
1

13. Our current footprint is BIG
 500,000+ data centers worldwide
 700 million+ square feet
 Data Center costs of $1.44 Trillion
 2% of North American energy consumption goes to
servers and data centers
 2% of global carbon footprint is data centers used to
power cloud computing
13 13

14. And we are not slowing down . . .
10%+ new capacity is expected to be added
every year for the next five years
14 14

15. So what? Isn’t that good news?
Centralized infrastructure brings economy of scale
15 15

16. But we aren’t really seeing economy of scale
Local storage and commodity servers might be
cheap, but huge costs for:
2% 9%
• Land • Bandwidth 7%
• Construction • Maintenance
• Power • Security
82%
• Cooling • Environmental
impact
Land Core/Shell
Architecture Mech/Elec
16 16

17. Example: the cloud storage model is broken
2TB Hard-drive for $100 but thousands for same data
size in the cloud
Amazon S3
Storage Storage Cost Bandwidth Cost Total Annual
Cost
2TB $2820 $288 $3,108
Google Cloud Storage
Storage Storage Cost Bandwidth Cost Total Annual
Cost
2TB $2700 $288 $2,988
17

18. Cloud Security & SLA Lapses are Expensive
Average cost of downtime per hour is $145,000
Forrester Research
18 18

19. And we can’t build data centers fast enough
35,000
Digital Data Created
Data Center Capacity Available
60% gap
14,000
45% gap
8,000
35% gap
4,400
1,400 1,274
2010 2015 2020
Source: IDC Digital Universe Study, 2011
19
19

20. Even as we look to creative locations
20 20

21. Ironically, we are overbuilding for ―our‖ use
We are oversizing by 5x than capacity at start-up and
more than 1 ½ times ultimate actual capacity
21 Source: ―Avoiding Costs from Oversizing DC & Network Infrastructure,‖ Schneider Electric

22. And not utilizing what we already have
 Utilization of physical and power infrastructure is around 50–60%
 Many co-lo facilities, public cloud data centers and enterprise
centers are woefully under used
What is the cost of white space?
22

23. Same goes for the storage capacity
 We build capacity for peak usage
 Up to 80% of storage capacity is on average idle – Gartner
 $250 to power one server for one year - $62,500 to power
idle servers if your percent idle was just 5%.
23

24. What’s the solution?
1. Improved Data Management
2. More Co-Lo / shared Facilities with higher density
3. Use the public / hybrid cloud when you can
4. Increase use of distributed systems
5. Move toward more decentralized approaches
24

25. Data Management
Know Your Data . . .
• What data exists and what is created
• How much, how often, how long do you need to keep it?
• Where is the data?
• What is business/mission critical data?
• Who needs access to it? and how do they get it today?
• How long can the business function without access to the data?
• Make a plan for improvement management
• Data classification
• SOA
• New polices and access control rules
25 25

26. More Co-Lo / Less Build Out
Do you really need your own data center?
SuperNAP =
Sustainability, Future
Proofing of Design &
Massive Scale
SuperNAP density means One (1)
SuperNAP equals at least three (3)
other Data Center Facilities of equal
floor space
26 26 www.switchlv.com

27. Co-Lo’s are staying ahead of the curve
This is all they do, so the leaders:
➡ Best practices across security, availability, burst scalability, power
efficiency, cooling efficiency, bandwidth optimization, etc.
Source: Eaton
27 27

28. Use someone else’s cloud when you can
28

29. Think Distributed
29 29

30. Internet is inherently distributed
Internet Users by Country
 Billions of devices sitting on the edge
 Data distributed across
devices, networks, data centers, and
30 geos

31. Cloud is driving distributed models & solutions
➡ Multi-tenant architecture
➡ Distributed application
➡ Distributed database
➡ Virtualization
➡ Multi-threading
➡ Multi-core CPUs
➡ Parallel processing
➡ Distributed file system
➡ Distributed Load Balancing
➡ RAID algorithms
31

32. And we’re realizing benefits
➡ System or process optimization
➡ Improved performance - faster
➡ Increased reliability & fault tolerance
➡ Lower costs
➡ Increased efficiencies
➡ Easier scalability or expansion
➡ Continuous or near continuous operations
32

33. But. . . distributed alone is not enough . . .
Distributed only will not keep up with our data growth
Still heavily
based on
centralized
models with
distributed
components
33

34. Need to go beyond distributed to decentralized
Why?
 Unused instances
 Over provisioning
 Under use of reserved instances
 Orphaned services
 Millions of dollars invested and wasted
Contributing source: Mat Ellis
34

35. How to think about Decentralization
➡ No central bottleneck
➡ Power of large numbers
➡ Organic, demand driven growth in capacity
➡ Leverages existing infrastructure and devices on edge
➡ Shared information
➡ Concept of ―Contribution‖ to the community
➡ Assume everyone / every node is ―untrusted‖
➡ Geographic spread of:
• Ownership & participation
• Costs
• Management overhead
• Risks
35 35

36. Decentralized development
Open Source Movement
Programmers who support the
➡ Linux – a Unix-Based operating system open source movement philosophy
contribute to the open
➡ Apache — a leading server software and
scripting language on the web source community by voluntarily
writing and exchanging
➡ MySQL — a database management system
programming code for software
➡ PHP — a widely used open source general- development.
purpose scripting language
➡ Blender — a 3D graphics and animation
software
➡ OpenOffice.org – an office suite software
with word processor, spreadsheet, and
presentation capabilities
➡ Mozilla — a web browser and e-mail client
➡ Perl — a programming/scripting language
➡ Wikipedia — Online encyclopedia open for
anyone to update and revise content
36 36

37. Decentralized cloud systems
37

38. Decentralized communications
Skype is the largest telephone
company in the world but has
almost no centralized infrastructure
38

39. Decentralized cloud storage
What if we aggregated all the unused capacity across
servers, desktops and storage devices on the edge of the Internet to
build a global storage network?
39

40. What Stay’s Centralized?
Doesn’t mean loss of centralized control or IT power
➡ IT Policy and governance ➡ Shared Services
➡ Security and compliance ➡ High volume, low latency
mandates transactions
➡ Definition of ―trust‖ ➡ Data analysis aggregation
(search, e-discovery &
➡ Vendor evaluation reporting)
guidelines
➡ Data warehousing
➡ API management
➡ Search
40 40

41. We are still in early stages
Issues with decentralization
➡Desire for Control
➡Geo-political differences
➡Data security and encryption
➡Need more open API’s
➡Consistent Quality of Service
41 41

42. Look for opportunities
To Leverage Distributed & Decentralized Models
➡ Assumption of ―untrusted‖ should be your security
principle today
➡ Worry less about where the data is and on how to
control access and gain intelligence about it
➡ Be the source of centralized policy and governance
42

43. Today’s Cloud: Centralized Data Centers
Apple
Amazon
Google
43

44. Tomorrow’s Cloud: Decentralized Grids
44

45. Thank You
margaret@symform.com
@seattledawson
CloudNOW
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