RightScale User Conference NYC 2011 - More than 400 RightScale customers and partners met for the RightScale User Conference in conjunction with the Cloud Computing Expo in New York City. The daylong event included a product demo of the latest RightScale multi-cloud features as well as customer and analyst presentations plus breakout sessions led by our own RightScale cloud experts and several of our partners. We continued the networking over cocktails on the rooftop of the Hotel Gansevoort with scenic sunset views of the Hudson River.

1. Welcome! RIGHTSCALE USER CONFERENCE June 2011

3. Announcements & reminders

4. #RightScale #CCExpo on Twitter

5. Morning agenda

6. 9:30-12:15pm - RightScale, Forrester Research, RightScale customers

7. Agenda for afternoon

8. 1:30-5:30pm - 16 breakout sessions from RightScale and partners

9. Evening cocktail at Gansevoort Hotel

12. Good sense of where cloud market stands

13. Clear understanding of RightScale – demos

14. Learn & share what’s working in cloud infrastructures

15. When & where cloud works best

16. Ask questions in the community

18. Cloud Growth

19. Cloud Revenues

20. Trend: ‘cloud computing’

21. Trend: ‘IaaS’

23. New IT Stack (replacing LAMP)

24. Third Revolution

25. ‘Cloud is unstoppable’

27. New IT Stack (replacing LAMP)

28. Third Revolution

29. ‘Cloud is unstoppable’

30. CTO – Thorsten von Eicken

31. Cloud is still in its early years

32. Will be growing faster & faster to 2020 and beyond

34. Number of servers launched

35. Number of servers running in steady state

36. ServerTemplates created by customers

37. Scale of individual customers

39. Server Type Distribution Over Time July 2008 – average cost $0.18/hr

40. Server Type Distribution Over Time January 2009 – average cost $0.20/hr

41. Server Type Distribution Over Time July 2009 – average cost $0.25/hr

42. Server Type Distribution Over Time October 2009 – average cost $0.32/hr

43. Server Type Distribution Over Time April 2010 – average cost $0.50/hr

44. Server Type Distribution Over Time June 2011 – average cost $0.67/hr

45. What’s Driving Cloud? Four horsemen Cut costs Improve agility Increase scale & reliability Leverage best practices Highly effective layers of abstraction SaaS – cloaked below the browser PaaS – cloaked below the code IaaS – cloaked below the OS Each layer achieves scalability & reliability through uniformity True clouds are API-driven!

46. Public IaaS Vendors

47. Public Cloud FabrizioGagliardi, Microsoft Research

48. On-Premise Cloud Yankee Group, 2010

49. Public, Private, Hybrid False cloud or false debate? Cloud definitions differ in focus Cloud as business model Cloud as operational model

50. Public, Private, Hybrid False cloud or false debate? Cloud definitions differ in focus Cloud as business model Cloud as operational model “Clouds are like buses: Public isn’t always better.” Sinclair Schuller, Apprenda

51. Challenges & Blockers Security Reliability Lock-in

53. Reality: Multi-tiered approach required

54. Distinguish between

55. Security, compliance & trust

56. Security is shared responsibility

57. Certifications increase all the time

58. SAS 70 Type 2

59. PCI DSS

60. ISO 27001

61. FISMA Low

62. HIPAA solutions

63. Private cloud is a new answer

65. Reality: Everything fails

66. Operational excellence at scale is impressive

67. Compare to most enterprise data centers

68. But public cloud failures can be big

69. Business continuity = redundancy & failover

70. How much do you want to spend?

71. With multiple cloud options, costs lower than ever!

73. Reality: It’s up to you

74. Data has mass

75. Vendor contracts

76. Vendor features & APIs

77. What you can do

78. Preserve multiple choices for any service

79. Keep contracts to length you can predict

80. Avoid unique services & APIs

81. Anticipate moving – set up small footprints elsewhere

82. Pilot a private cloud

84. 70% plan to implement cloud

85. 70% did not have confidence in managing performance of cloud

86. Sciencelogic.com

87. Using cloud != designing for cloud

88. Accidental tourist in cloud

89. Sign up, launch servers, sit back

90. Good cloud design

91. Secure

92. Reliable

93. No lock-in

95. Operational Efficiency 51% deployment & incident management Source: Deepak Patil, GFS 2006

96. Operational Efficiency 51% deployment & incident management Server-to-admin ratio is an indicator of admin costs Inefficient operations as low as 20:1 Above average ratio 150:1 (enterprises typically in the 70 to 140 range) Best practices over 2,000:1 Savings on admin costs of easily 50% Source: Deepak Patil, GFS 2006

98. What cloud management offers out of the box

99. Single user scenario

100. Growing to larger organization with disaster recovery

102. MultiCloud API 2.0

103. Security Tools & Certifications

104. Usability Improvements

105. Full Hybrid Web Stack for Rackspace, Cloud.com, Eucalyptus, AWS

106. Microsoft SQL Server HA

107. Windows Active Directory + join Domain scripts

109. VPC v2, Red Hat RHEL

110. OpenStack

112. Automation

113. Failure resilient designs

114. Easy on-ramp

115. Portability

120. Integral R and D Trip to RightScale HQ in Santa Barbara!

121. Frank GillettVice President, Principal Analyst Forrester Research, Inc.

122. Why motivations and app architecture matter for understanding and using cloud IaaS Frank E. Gillett, Vice President and Principal Analyst June 8, 2011

123. Ignore the confusing industry conversation on IaaS and focus on optimizing your workload to the right cloud IaaS options

124. Agenda

125. Virtualization use is high – 76% of enterprises – so firms are ready for cloud IaaS, right? Source: Forthcoming, “Navigating The Shifts In Computing Infrastructure Markets” Forrester report

126. No, they aren’t very ready for IaaS — firms with 100+ x86 servers have only virtualized 15% of OS instances.But they are virtualizing fast - 50% by summer 2012! Source: Forthcoming, “Navigating The Shifts In Computing Infrastructure Markets” Forrester report

127. IT managers prioritize server virtualization (80%) much more than internal (29%) or public (28%) cloud Source: Forthcoming, “Navigating The Shifts In Computing Infrastructure Markets” Forrester report

128. Only 6% of firms will reach Forrester’s concept of server virtualization maturity this year – help wanted! Source: Forthcoming, “Navigating The Shifts In Computing Infrastructure Markets” Forrester report

129. Only 13% of enterprise IT will implement IaaS by Q3, 2011 – many are interested but lack plans Source: March 2011, “Navigating The Shifts In Computing Infrastructure Markets” Forrester report

130. IT infrastructure buyers are not representative of today’s users of cloud IaaS IT infrastructure buyers focus on typical back office workloads Today’s popular IaaS workloads are different: Test and development Web and consumer services, such as web sites and games Grid computing and compute intensive calculations Engineering and scientific workloads So how to make sense of the industry conversation about IaaS?  It’s really two different conversations....

131. Agenda

132. There are two distinct types of cloud IaaS buyer — informal buyers and formal buyers Source: Forthcoming, “Navigating The Shifts In Computing Infrastructure Markets” Forrester report

133. Formal buyers (IT infrastructure) identify informal buyers as having the most interest in cloud IaaS Source: Forthcoming, “Navigating The Shifts In Computing Infrastructure Markets” Forrester report

134. Informal software buyers use or plan for IaaS at twice to almost 3x the rate for formal hardware buyers Source: Forthcoming, “Navigating The Shifts In Computing Infrastructure Markets” Forrester report

135. According to IT, most IaaS workloads are session and compute-intensive, not transaction apps – and they use for production as much as test/dev Source: Forthcoming, “Navigating The Shifts In Computing Infrastructure Markets” Forrester report

136. There are two kinds of IaaS workloads – very different

137. Early customers of cloud try new apps, not back office “Web businesses at scale” “SaaS for speedy & flex” “Experiments & projects” “Compute & collab”

138. Early cloud examples Indy500.com — streams live race footage and statistics Wendy’s— Short-term, interactive promotional site for $0.99 menu. ESPN —FanZone message boards NASDAQ — Market Replay service US Army — Testing troop vulnerability application on cloud platform Eli Lilly— drug research Harvard Medical School — developing genetic testing models Sources: www.NASDAQ.com, www.espnfanzone.com, Indy500.com

140. GSA migrated the site to Terremark’s The Enterprise Cloud to leverage burst capacity.Baseline of systems on a 12-month contract (reserved capacity); all use above is pay per use Migrated to the cloud in 10 days Govt.-certified data center and govt.-ready security, monitoring, and management Integrated their own security above this Source: http://www.USA.gov

141. Agenda

142. Why aren’t all startups using IaaS, as hype suggests? Because the specifics matter For the base workload, some find that it’s cheaper to own the hardware So they use IaaS for the variable and growth part of the workload demand Optimizing the app to specific infrastructure can yield big cost saving I get feedback of 50% lower costs than IaaS – in specific, optimized cases Think of online backup, highly optimized for writes, not reads Some simply prefer to have a balance of IaaS and owned hardware Migration risk – some started on hardware and don’t see big enough payoff yet So they wait until the economics are compelling enough

143. The basics of cloud economics are clear

144. Turning cloud economics to your favor is the key

145. Recommendations Know your motivations for using IaaS Outsourced-style cost savings or business flexibility? Know your workload Single instance traditional or web scale? Works well on general purpose infrastructure or benefits from optimization? Must be in one data center or can it split across on premise and IaaS provider? Get help Talk to your peers and partners about their experiences with apps, hardware, management service providers, and IaaS providers Consider IaaS management service providers that have deep experience with a variety of workloads, business needs, and IaaS providers

146. Thank you Frank E. Gillett +1 617.613.6017 fgillett@forrester.com Twitter: @frankgillett LinkedIn: frankgillett www.forrester.com

147. Thank You!

148. Afternoon Breakout Sessions

149. We hope to see you at our next RightScale User Conference! See all presentations and videos at RightScale.com/Conference.