Today’s buzz centres on cloud computing. What is it exactly? Will it dent your revenues or does it have potential to add capabilities to your business? How do you deliver value when you don’t “install” anything? Learn how to use this new approach to delivering IT services in your business, what to consider and where it makes sense – and where it doesn’t! Dave Sobel, CEO of Evolve Technologies, talks to you about how to develop cloud offerings and how you position your business for growth around online services. Strategies come from real life experience, industry data, and collaboration with other solution providers to give you the best way to take on the big, bad cloud.

1. Trepidation in Moving to
the Cloud
Dave Sobel
CEO, Evolve Technologies

2. www.comptia.org/emea2010
From http://geekandpoke.typepad.com 1

3. www.comptia.org/emea2010
Trepidation in Moving to the Cloud
Dave Sobel
CEO, Evolve Technologies

4. About Dave
• CEO, Evolve Technologies
– Washington DC IT Solution
Provider
– Microsoft Certified Partner
– Small Business Specialist
• HTG Member and Facilitator
• Author, “Virtualization: Defined. A
Primer for the SMB Consultant”
• Biz Blog:
www.evolvetech.com/blog
• Virtualization Blog:
www.smbvirtualization.net
• Microsoft MVP, Virtualization
• Columnist, Channel Insider
• Columnist, CRN

5. Today, more than ever, CIOs and their
organizations are under pressure…
VOLUME OF DIGITAL DATA
VARIETY OF INFORMATION
ECONOMIC PRESSURES THE DEMANDING CONSUMER
IT INTEGRATION
LAWS, REGULATIONS AND
STANDARDS
GROWTH OPPORTUNITIES
AVAILABILITY
RISING COST PRESSURES
HIGHER SERVICE EXPECTATIONS
EMERGING TECHNOLOGIES

6. 5
IT infrastructure is reaching a breaking point.
85% idle
In distributed computing
environments, up to
85% of computing
capacity sits idle.
Consumer product and retail
industries lose about $40
billion annually, or 3.5 percent
of their sales, due to supply
chain inefficiencies.
33% of consumers notified
of a security breach will
terminate their relationship
with the company they
perceive as responsible.
33%$40 billion
Explosion of information
driving 54% growth in
storage shipments
every year.
1.5x 70¢ per $1
70% on average is spent
on maintaining current IT
infrastructures versus
adding new capabilities.

7. There are major forces of change at work,
affecting business and IT
Our world is smaller and flatter but it’s about to become more…
INSTRUMENTED
INTERCONNECTED
INTELLIGENT
Increasing access, globalization
and risk
Increasing devices and opportunity
for innovation
Increasing data and the use of technology
to capitalise on change
CEOs see an environment of unrelenting change, as well as opportunities to think
smarter - - economically, socially and technically.

8. 7
Cloud spending to grow six times faster than traditional IT spending
USD 16.2 billion (2008)
57%
11%
18%
5%
9%
Storage Server
App Dev & Deployment Infrastructure
Bussiness Application
USD 42.3 billion (2012)
52%
9%
18%
13%
8%
Storage Server
App Dev & Deployment Infrastructure
Bussiness Application
• IDC forecasts the cloud computing services market to grow at a CAGR of 27 percent from USD 16.2 billion in 2008
to USD 42 billion in 2012. On the other hand, Gartner expects the worldwide cloud services revenue to cross USD 56.3
billion in 2009 to USD 150 billion by 2013.
• IDC estimates the traditional IT spending to grow at a CAGR of 7 percent to USD 494 billion in 2012 from USD 383
billion in 2008. Thus, the forecasted growth rate of cloud spending is six times that of traditional IT spending.
Size and Growth

9. By 2011, the world will be 10 times more instrumented then it was in 2006.
Internet connected devices will leap from 500M to 1 Trillion.
2005 2006 2007 2008 2009 2010 2011
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
Exabytes
RFID,
Digital TV,
MP3 players,
Digital cameras,
Camera phones, VoIP,
Medical imaging, Laptops,
smart meters, multi-player games,
Satellite images, GPS, ATMs, Scanners,
Sensors, Digital radio, DLP theaters, Telematics,
Peer-to-peer, Email, Instant messaging, Videoconferencing,
CAD/CAM, Toys, Industrial machines, Security systems, Appliances
10x
growth in
five years

10. Continuum of services overview
Time
Responsibilities/Risks
TransferedtoServiceProvider
“Do it yourself”
Bodyshopping
Out-tasking
Managed Services
Outsourcing

11. Source: www.google.com/trends

12. Customers’ expectations today and in perspective ?

13. Evolution Over The YearsAdoption
Time
1961
John McCarthy proposed
'computer time-sharing
technology' to be sold
through utility business
model (like electricity) in a
lecture at MIT
Mid 90’s
ASP (Application Service
Provider) model with
single tenant hosting of
applications
Early 00’s
SaaS (Software as a
Service) model with
multi-tenant hosting of
applications
Late 00’s
Cloud Computing with pay
as you go model, leveraging
virtualization for data center
efficiencies and faster
networks

14. 13 Security and Cloud Computing
Customization, efficiency,
availability, resiliency,
security and privacy …
Standardization, capital
preservation, flexibility and
time to deploy …
Public …
• Access open to everybody,
subject to subscription
• Shared resources
• Multiple tenants
• Delivers select set of
standardized business process,
application and/or
infrastructure services on a
flexible price per use basis
• Always managed and hosted
by 3rd party
Private …
• Access limited to enterprise
and its partner network
• Dedicated resources
• Single tenant
• Drives efficiency,
standardization and best
practices while retaining
greater customization and
control
• Might be managed or hosted
by third party
Cloud Computing
Model
Cloud Services
Cloud Computing Delivery Models
Hybrid …
• Private infrastructure,
integrated with public cloud
Community …
• Several organizations with
similar needs and policies
share a private cloud

15. Public vs Private Cloud
Cloud Choices
Exclusive environment
Limited on-demand
capabilities
Private Cloud
On-demand resources,
scalability
Shared environment
Public Cloud
Requires Initial Capital Investment
Cloud setup within Org’s data center
Control on security and audit
Based on basic virtualization
Limited on-demand scaling
On-Premise Private Cloud
Exclusive, but hosted by a third party
Limited on-demand scaling
Expensive than public cloud
Cheaper than on-premise private cloud
Possibility of co-location
Externally Hosted Private Cloud
Hybrid Cloud
Public + Private
cloud
Source: TorryHarris Business Solutions on slideshare.net

16. USE CASES

17. USE CASES

18. 17 Security and Cloud Computing
Compliance
Complying with PCI DSS
and other regulations may
prohibit the use of clouds for
some applications.
Reliability
High availability will be a key concern. IT
departments will worry about a loss of
service should outages occur.
Control
Many companies and governments
are uncomfortable with the idea of
their information located on systems
they do not control.
Security Management
Even the simplest of tasks may be behind
layers of abstraction or performed by
someone else.
Data
Migrating workloads to a shared
network and compute infrastructure
increases the potential for
unauthorized exposure.
Categories of Cloud Computing Risks
Providers must offer a high degree of
security transparency to help
put customers at ease.
Authentication and access
technologies become increasingly
important.
Mission critical applications may
not run in the cloud without
strong availability guarantees.
Comprehensive auditing
capabilities are essential.
Providers must supply easy controls to
manage security settings for application and
runtime environments.

19. 18 Security and Cloud Computing
Of enterprises consider security
the #1 inhibitor to cloud adoptions
80%
Of enterprises are concerned
about the reliability of clouds
48%
Of respondents are concerned with cloud
interfering with their ability
to comply with regulations
33%
Source: Driving Profitable Growth Through Cloud Computing, IBM Study (conducted by Oliver Wyman)
“I prefer internal cloud to IaaS. When the service is
kept internally, I am more comfortable with the
security that it offers.”
“Security is the biggest concern. I don’t worry
much about the other “-ities” – reliability,
availability, etc.”
“How can we be assured that our data will not be
leaked and that the vendors have the technology
and the governance to control its employees from
stealing data?”
Security Remains the Top Concern for Cloud
Adoption

20. 19 Security and Cloud Computing
Specific Customer Concerns Related to Security
Protection of intellectual property and data
Ability to enforce regulatory or contractual obligations
Unauthorized use of data
Confidentiality of data
Availability of data
Integrity of data
Ability to test or audit a provider’s environment
Other
30%
21%
15%
12%
9%
8%
6%
3%
Source: Deloitte Enterprise@Risk: Privacy and Data Protection Survey

21. USE CASES – and where the £’s are

22. USE CASES –
and where
the £’s are

27. dave@evolvetech.com
+44 (0)20 8002 9740 x111
www.smbvirtualization.net