CloudExpo 2018 - Emil Sayegh speaking on Economics of the Cloud: Don't Aim for the Sky on Everything

1. DON'T AIM FOR THE SKY ON
EVERYTHING
ECONOMICS OF THE CLOUD:
November 13, 2018
CloudEXPO 2018
Emil Sayegh, CEO, Hostway Services, Inc.
@esayegh | @Hostway
© 2018 Hostway

2. 2
Discussion Points
1
ECONOMICS OF THE CLOUD: SHOULD
EVERYTHING MOVE?
2 WORKLOAD SELECTION: WHAT GOES WHERE?
3
ANALYSIS OF HOW END-USERS APPROACH
VARIOUS CLOUD OFFERINGS
5 AGILITY OF THE CLOUD COUPLED WITH TOOLS
6
MANEUVERING THROUGH REGULATORY AND
COMPLIANCE CHALLENGES
7
DECISION-MAKING: SECURITY, COMPLIANCE &
CONSOLIDATION
8 CASE STUDIES

3. Economics of the Cloud
3
83% of enterprise workloads
will be in the cloud by 2020.1
41% of surveyed organizations anticipate
overspending on public cloud services
over the next 90 days.2
1. LogicMonitor, 2018. 2. 451 Research, 2018.
41%
Overspending
on Public Cloud
Services
83%
Workloads
in the Cloud
by 2020
© 2018 Hostway

4. Misuse of the Cloud Leads to Waste
4
Organizations estimate
30% of wasted public cloud spend,
but experts estimate an additional 15% is wasted.1
1. RightScale, 2017.
Estimated
Wasted Spend
15%
30%
© 2018 Hostway

5. A Cautionary Note From the Pundits
5
…business leaders may fall
into the trap of believing
that public cloud (IaaS) will
always be better and less
expensive than running
their own data centers.
Don't assume you will save
money unless you have
done the hard work of
honestly analyzing the
situation.
Lydia Leong
VP & Distinguished Analyst, Gartner
David Smith
VP & Distinguished Analyst, Gartner
© 2018 Hostway

6. What Started It All: The Case For Cloud (Circa 2008)
Classic, two-tiered architecture
6
YOUR TRAFFIC
Firewall
Server
Server
Server
One DC
START UP
© 2018 Hostway

7. 7
One DC
Web Server
Web Server
Web Server
Web Server
Firewall Proxy
YOUR TRAFFIC
Nice, Easy Growth Phase
START UP EASY
GROWTH
© 2018 Hostway

8. The App is Trending!
8
Firewall
One DC
Web Server
Web Server
Web Server
Web Server
DB Server
DB Server
Proxy
YOUR TRAFFIC
START UP EASY
GROWTH
TRENDING
© 2018 Hostway

9. 9
Web Server
Web Server
Web Server
Firewall Proxy
Multiple DCs
Web Server DB Server DB Server
DB Server
DB Server
DB Server DB Server
YOUR
TRAFFIC
Quick! Fix the Database!
START UP EASY
GROWTH
TRENDING CRUNCH
© 2018 Hostway

10. Panic!
10
START UP EASY
GROWTH
TRENDING CRUNCH PANIC!!!
DC 1
DC 2
DB Server
Firewall
YOUR TRAFFIC
© 2018 Hostway

11. But…IT is Hundreds of Applications…
11
Mobile Apps
Blogs
Shopping Carts
Forums
CMS
Wikis
Streaming
Big Data
Security
Health Data
Crypto
CRM
ERP
Email/Webmail
Databases
Ticket/Support
Photo Galleries
Accounting
Test Dev
Many More…
© 2018 Hostway

12. With Hundreds of Requirements
12
PIPEDA
© 2018 Hostway

13. Market Trend
13
ON PREMISES OFF PREMISES PRIVATE, PUBLIC,
HYBRID CLOUD
© 2018 Hostway

14. Cost Optimization is Essential…But Still Hard!
Where and how do you start?
14
© 2018 Hostway

15. The choices for
hosting this data
have become
confusing and
daunting.
Still, Too Many Choices
15
© 2018 Hostway

16. The Public Cloud Has Lots of
Strengths
 Easy to get started
 No systems expertise required
 Pay per use
 Retain cash
 Scalability built-in
 Lets customer focus on application
 Unique ancillary services available
 Technologies are always up to date
 Greater agility and speed
 Strong ecosystem emerging
16
© 2018 Hostway

17. But Ignore Challenges at
Your Own Risk!
 More expensive for constant workloads
 Ancillary services may be expensive
 Hidden expenses compromise cost savings
 Migration costs may be high
 Cloud pricing discounts may be short-lived
 Cost agility and benefits difficult to quantify
 Regulatory and compliance limitations
 Limited software flexibility
 Less maturity and control than dedicated
 Security tied to the platform
 Must trust provider uptime, performance &
scale
17
© 2018 Hostway

18. 18
It’s All About Trade-Offs
Home Owner Rental Home Apartment Hotel
Own DC, DIY Colocation Managed Hosting Public Cloud

19. It’s All About Trade-Offs
Putting the right app in the right place
19
SCALE (LTD)
Only Large Scale and
Highly Confidential
CUSTOM APPS
ERP, OSS, Workflow,
SW Apps (custom),
Website (complex),
Database, Big Data
PACKAGED APPS
Blogs, Wikis, Subversion,
Test/Dev, SaaS, Website,
Regulatory Compliance
COMMODITY (SAAS)
Email, Workspaces
Chat, IM, CRM,
NEW / BURST
Test/Dev, AI/ML,
Highly Variable IOPS
© 2018 Hostway
Home Owner
(Own DC, DIY)
Rental Home
(Colocation)
Apartment
(Managed Hosting)
Hotel
(Public Cloud)

20. Expertise, Maturity, and Scale Matter
20
Ideal
Avoid
OK
Startup SMB &
Departments
Hyper Growth
Company
Large Scale
COMPANY TYPE
EXPERTISE
Cloud  Dedicated
 Cloud
 Dedicated
 Cloud
 In-House
 Colo
 Dedicated
 Cloud
 In-House
 Colo
 In-House
 Colo
 In-House
 Colo
 Colo
 Dedicated
 Cloud
 Dedicated
 Cloud
Software
Development
Sys-Admin
Large
Infrastructure
Expertise
+
+
 Dedicated
 Cloud
 Dedicated
 Cloud
 Dedicated
 Cloud
SCALE
© 2018 Hostway

21. Needs Can Change!
21
Cloud Cloud &
Dedicated
DIY
START-UP
“More flexibility
and save
money,” says
the CEO!
“Find
economies
of scale,”
says the CFO!
Cloud &
Dedicated
Dedicated Cloud &
Dedicated
ESTABLISHED
“More
scalability,”
says the CRO!
Colo/DIY
Managed
Hosting /
Dedicated
Cloud &
Dedicated
DEPARTMENT
“Less CAPEX,”
says the CFO!
“More
scalability,” says
the CTO!
© 2018 Hostway

22. The Five Pillars of Cost Optimization
• Track / tag all systems to
ensure usage
• Set benchmark KPIs and
compare usage daily,
weekly, monthly
• Establish budget
enforcement
• Adjust solutions
regularly
• Get help. Don’t have to
do this alone!
• Automation to
dynamically adjust
VMs
• Use spot compute for
additional cost
savings
• Use multiple cloud
and hosting providers
• Architect for hybrid
cloud and to enable
portability
22
• Use reserved &
dedicated
Infrastructure for
predictable, long-
term use
• Place high IOPS /
bandwidth
applications on
dedicated
infrastructure
Reserving Capacity
• Monitor utilization
and size compute and
storage accordingly
• Based on cost, select
type of IAAS, cloud, &
region
• Optimize Code
• Shutdown temporary
workloads
• Consolidate storage
islands
Right-Sizing Increase Elasticity
Carefully
Automate, Measure,
Improve
• Minimize bandwidth
charges by tuning
architecture to
eliminate outside calls
• Investigate moving
certain RDS
workloads to a
dedicated data base
• Move media rich
workloads to bare
metal
Optimize Ancillary
Services
© 2018 Hostway

23. 23
Putting It All Together
© 2018 Hostway

24. © 2018 Hostway
24
Decreasing Spend While
Improving Performance
About Explore.org
• Multimedia organization that provides
live nature cams, wildlife photos, and
educational films
The Situation
• Very high costs ($160K/month)
• Growth limitations
• Public cloud only
• Multiple countries
• Application performance challenges
© 2018 Hostway

25. © 2018 Hostway
25
Decreasing Spend While
Improving Performance
The Solution
• Hybrid solution managed globally across
three continents
• Managed dedicated GPU servers
The Results
• Decreased IT spend with 69% lower costs
• Increased business agility
• 20% performance improvement
• On-demand scale architecture
• Embedded advertisement capabilities
© 2018 Hostway

26. © 2018 Hostway
26
Making History Via Smart Security
and Compliance Strategies
About Samsung
• Leading provider of Smart TVs
The Situation
• One of the largest IoT deployments
• Needed a solution that could scale based on
unique traffic patterns
• Needed a global security and compliance
solution to enable PCI accreditation and safely
sell content through the Smart TV app
Image from Samsung© 2018 Hostway

27. © 2018 Hostway
27
Making History Via Smart Security
and Compliance Strategies
The Solution
• Fully-managed hybrid cloud
• Fully-managed security and compliance
The Results
• Decreased IT spend and improved performance
• Enabled PCI accreditation—a first for any Smart
TV; announced at CES in January 2018
• 3 billion packets inspected and 600 cases
reviewed with zero escalations to Samsung
Image from Samsung© 2018 Hostway

28. The Experts Favor Hybrid Cloud
28
The landscape of cloud adoption is
one of hybrid clouds and
multiclouds. By 2020, 75% of
organizations will have deployed a
multicloud or hybrid cloud model.*
Using both public and private
infrastructure,…are the endgame for
most organizations today. This
approach avoids vendor lock-in and
enables enterprises to leverage the
best attributes of each platform…
*Gartner: Making Lots of Money in the New World of Hybrid Cloud
and Multicloud Published: 7 September 2018© 2018 Hostway

29. 29
for digital business.”
“Hybrid cloud is the foundation
$317 billion
will be spent on hybrid cloud in 2022
Source: Gartner, 2018.© 2018 Hostway
$209 billion
will be spent on hybrid cloud in 2019

30. Meet the Hybrid Multi-Cloud
30
PRIVATE
PUBLIC
ON PREMISES
DEDICATED
MANAGED
COLOCATION
 Decreases Spend
 Delivers Choice
 Increases Flexibility
 Accelerates Deployment
 Improves Reusability
 Speeds Innovation
SPECIALTY
PUBLIC
HYBRID
© 2018 Hostway

31. Why is Hybrid the Answer?
31
© 2018 Hostway

32. The Best of Both Worlds
32
Choice & Scalability
Flexibility
Right Tool, Right Workload
Cost
© 2018 Hostway

33. Hybrid Eliminates Public
Cloud Concerns
OVER PAYING
DATA ISOLATION
PERFORMANCE
CUSTOMIZATION
REGULATORY
33
© 2018 Hostway

34. 34
Developing Your Strategy
TOO EASY TO GET LOST BY:
► Not focusing on where you deliver value
► Overspending based on cloud hype
► Locking into false choices
► Spending valuable time on wrong details
► Delayed thinking about scale & architecture
► Not partnering with experts across technologies
It is critical to find the right home where your
applications can grow safely and economically.
© 2018 Hostway

35. 20
years of technology
experience
10
state-of-the-art data
centers across the globe
Proven global leader in managed Hybrid IT
infrastructure for compliant, mission-critical
applications, serving thousands of top brands
with solutions that:
• Decrease IT Spend
• Mitigate Risk
• Increase Business Agility
Brands Worldwide Trust Hostway
for Compliant, Mission-Critical Hosting
Recognized by Gartner for Managed Hybrid Cloud Hosting
© 2018 Hostway

36. Questions?
36
© 2018 Hostway
Come See Us in Booth 220