John Engates - Rackspace - Cloud Computing (Part 1) For Growing Businesses
1. No Servers and No Software: What is Cloud and How to Leverage it for Your Business John Engates CTO, Rackspace Hosting Renée Schmidt Co-founder, Madison Technology
2. No Servers and No Software: Part 1 - What is Cloud Computing
3. About Me jengates@rackspace.com Office: (210) 312-4197 Twitter: @jengates www.rackspace.com 3,000 employees, or Rackers 100,000+ customers and growing Listed NYSE 2008 (RAX) Chief Technology Officer Joined Rackspace in August 2000 From San Antonio, TX 2009 Hosting Revenue
5. Rackspace – Some Facts About US Founded in 1998 Headquartered in San Antonio, Texas 9 worldwide data centers 3,500 employees (“Rackers”) 142,000 customers 70,000 servers $920 million revenue run rate Listed NYSE: RAX
9. What is Cloud Hosting? ACCESSIBILITY SPEED MULTI-TENANT AUTOMATED PAY AS YOU GO COST
10. Cloud Computing: Definition and Characteristics 10 A style of computing where dynamically scalable and often virtualized resources are provided as a service, over the Internet. 3 Applications (SaaS) - “Unlimited” processing and storage - Abstracted/pooled resources - Elastic: scale up or down - On demand, Self-service - Highly automated - Consumption-based billing 2 3 Broad Categories of Services App. Infra. (PaaS) 1 System Infra. (IaaS)
11. SaaS, PaaS, IaaS - Explained Software as a Service SaaS End Users PaaS Platform as a Service Perceived Value by End User Developers IaaS Infrastructure as a Service Architects and Sys Admins
20. Cloud Growth Cannot be Denied Benefits Customers and Partners “58 percent say cloud computing will cause a radical shift in IT and 47 percent say they are already using it or actively researching it.” “By 2012, 20% of businesses will own no IT assets.” CIO Magazine (From IDC Report) October 2008 Gartner Key Predictions, January 2010 “The current U.S. economic woes will only drive more enterprises to consider and adopt cloud offerings. Spending on IT cloud services will hit $42 billion by 2012.” “The bulk of business computing will shift out of private data centers to the cloud.” IDC, March 2009 Nicholas Carr, Author
21. It’s Happening Today 100,000 Customers in 120 Countries 80% are Cloud Customers 125% Growth in 2009 * 2008 vs. 2009 Net Revenue
28. Key Drivers of the Transition Time Flexibility Security Reliability
29. FOR EVERYONE, NOT EVERYTHING The Right Tool for the Job Legacy Apps Custom Apps Standard Apps In House Managed Cloud Website Ecommerce New Backoffce Apps Web Applications ERP OSS Workflow Email Wikis Blog Test/Dev
30. Hybrid Model Gaining Traction Managed AND Cloud Two independent applications APP 1 APP 2 APP 3 MANAGED HOSTING CLOUD HOSTING HYBRID HOSTING Single application using both Managed PLUS Cloud
31. Using Cloud: FreshBooks Website and Archiving Core App/Commerce Managed AND Cloud 26
32. Using Cloud: Glam Media Database and core infrastructure on dedicated servers Content nodes scale up and down through the use of Cloud Servers Same data center for low latency and high bandwidth connections Managed PLUS Cloud
33. What You Should Look for in a Cloud Provider Service and Support Focus Broad Portfolio Open Approach
Notas del editor
Why are more and more businesses choosing Cloud today?It’s benefits make it an often “irresistible choice”Public cloud offerings built on automated, multi-tenant platforms offer incredible access to on-demand compute resource– this means increased speed to deploymentThe pay-per use utility model of cloud allows businesses to make better use of their resources and to save money
Touch on the various forms Public, Private, Public is hotel, Private is company that owns hotel
Future of cloud? Get on board, or get run over.-- Almost all computing will be on the cloud in the long run -- as in,say, 50 years. The cost savings and the gains in productivity and innovation are already compelling. And adoption will accelerate as some of the technical obstacles around security and reliability get addressed. But as a famous economist [Keynes] once said, in the long run we're all dead. What's the future of cloud computing in the next few years?-- Adoption is rising rapidly right now. At Rackspace, our cloud business grew to $50 million last year, and 60,000 customer, from almost nothing. Among the SMB customers who are your bread and butter, and ours, I think cloud adoption will reach 90% within five years. Let's look briefly at what's driving that trend.
AnimateLow cost, highly scalable, building block elements of computeVmware based; dedicated hosts; traditional HA architectures
For exampleFor SaaS companies, utilizing cloud hosting can offer substantial financial and technological advantages compared with traditional dedicated solutions, especially in this economic climate. The flexibility and instant-infrastructure scaling of Cloud Solutions are ideal for SaaS businesses and enable an almost instant ROI.Only 4 weeks in the year need peak capacity of say 1,000 serversBuying 1,000 servers gives Walmart.com 36,000 server-month capacity over 3 years (assuming server life is 3 years)In 3 years, with Cloud model, Walmart pays per use the equivalent of 3*(400*11 + 1000*1 )=16,200 server-monthsBuying servers…causes capacity over provisioning by a factor of 2Demand from multiple websites seldom goes up and down at same time due to cyclical variability, canceling out fluctuations in aggregate, and resulting in massive economies of scale.
Universal Access to Apps and InfoSpeed to MarketEasier ExecutionMinimizes DownsideLarge and Small Companies can Compete EquallyCreates New Business Models
Hard to see middle message on first build; can we make build fasterDone.
Couple approaches – first and most common – right app for the right toolNew approach – real hybrid – cost and scalability on parts that need it; security and isolation where needed
Very common appraoch today – lots of work
Glam has 20+ Dedicated Servers in Rackspace Managed HostingThey have 17 additional Rackspace Cloud Servers9 x 256 mb3 x 2GB2 x 4GB1 x 8GB2 x 16GBGlam Media A Rackspace Hybrid Customer-- Managed Colocation + Cloud Servers customer since September 2009A leading Vertical Media company with a network of more than 1,500 lifestyle websites and blogs. Founded in 2007. Sites include Glam.com, a style website targeting womenBrash.com, targeting men Micro-blogger site Tinker.com, founded March 2009#9 in the Top 100 Web properties with 78 million US visitors & 164 million worldwide (comScore)Top 10 AdWeek Display Ad Publisher Fast Company's most innovative media company for 2010. Rackspace hosts Glam.com, Brash.com and Tinker.comWe designed a customized solution for Glam Media that allows them to pass traffic between their Cloud and Dedicated Rackspace environments as if on the same network. This helps them save money by scaling into Cloud Servers instead of dedicated servers during peak traffic times.Account Revenue - Started at MRR $15K (Cloud Servers averages MRR $3K)