A talk detailing how and why elastic cloud infrastructure emerged in the marketplace. NOTE: For current Cloudscaling messaging and presentations, please refer to http://www.slideshare.net/randybias and www.cloudscaling.com

1. Why Enterprises Need Two
(or more) Clouds
presented to
Cloud Expo, San Francisco
November 8, 2012
Troy Angrignon
VP, BD & Partnering
troy@cloudscaling.com
@troyangrignon
Why Most Organizations Will Need Two Clouds 1
Cloud Expo, November 8, 2012, San Francisco

2. Market Drivers
Two Cloud Theory
EIC Design principles
Real-world scenarios
Why Most Organizations Will Need Two Clouds 2
Cloud Expo, November 8, 2012, San Francisco

3. Market Drivers
Why Most Organizations Will Need Two Clouds 3
Cloud Expo, November 8, 2012, San Francisco

4. 2B+ people online but...
Why Most Organizations Will Need Two Clouds
http://www.businessinsider.com/state-of-internet-slides-2012-10?op=1
4
Cloud Expo, November 8, 2012, San Francisco

5. 2B+ people online but...
Why Most Organizations Will Need Two Clouds
http://www.businessinsider.com/state-of-internet-slides-2012-10?op=1
5
Cloud Expo, November 8, 2012, San Francisco

6. 2B+ people online but...
Why Most Organizations Will Need Two Clouds
http://www.businessinsider.com/state-of-internet-slides-2012-10?op=1
6
Cloud Expo, November 8, 2012, San Francisco

7. App usage is swamping web usage
Why Most Organizations Will Need Two Clouds
http://www.businessinsider.com/state-of-internet-slides-2012-10?op=1
7
Cloud Expo, November 8, 2012, San Francisco

8. Macro Market Trends
The application portfolio is expanding.
Mobile matters.
Application teams are embracing the agility
benefits of public cloud.
Time to market pressures are accelerating.
Why Most Organizations Will Need Two Clouds 8
Cloud Expo, November 8, 2012, San Francisco

9. Applications are changing. And so are the
approaches we use to create them
Applications Development Approaches
Why Most Organizations Will Need Two Clouds 9
Cloud Expo, November 8, 2012, San Francisco

10. The way we build code is changing...fast
Why Most Organizations Will Need Two Clouds 10
Cloud Expo, November 8, 2012, San Francisco

11. App Developers are Flocking to AWS
• Tremendous growth for market leader
• 1 trillion objects in S3
• ~$1.5B business run rate for Amazon
• ~ 450,000 servers in seven data center hubs around the globe
• 100s of servers per admin ratio
• 20 price reductions in 5 years
• Fast scale and prominent companies running production workloads on AWS
• Zynga, Pinterest and Dropbox are a few
• AWS allow app developers to self serve and assume control
• DevOps centric
• Auto-scaling
• Manage data replication
• Ensure server & data redundancy
• Geo-distribution
IT infrastructure teams are under increasing pressure to compete
with highly elastic, on-demand, self-service public cloud offerings.
Why Most Organizations Will Need Two Clouds 11
Cloud Expo, November 8, 2012, San Francisco

12. A wave of new apps requiring new infra
Why Most Organizations Will Need Two Clouds 12
Cloud Expo, November 8, 2012, San Francisco

13. Two Clouds
Why Most Organizations Will Need Two Clouds 13
Cloud Expo, November 8, 2012, San Francisco

14. This has led to a bifurcation in infra & apps
Elastic Infrastructure
Clouds
Enterprise
Virtualization Cloud
Why Most Organizations Will Need Two Clouds 14
Cloud Expo, November 8, 2012, San Francisco

15. These are entirely different classes of apps
App
Cloud Apps
Location of complexity
Existing Apps
Infra
Primary scaling dimension
Up Out
Why Most Organizations Will Need Two Clouds 15
Cloud Expo, November 8, 2012, San Francisco

16. These apps require different architectures
App
Elastic
Infrastructure
Location of complexity
Cloud
“Enterprise”
Cloud
Infra
Primary scaling dimension
Up Out
Why Most Organizations Will Need Two Clouds 16
Cloud Expo, November 8, 2012, San Francisco

17. Two Clouds for Two Needs
Enterprise Elastic
Virtualization Infrastructure
Cloud Cloud
Uptime in Infrastructure Uptime in Apps
Data mgmt in Infra Data mgmt in Apps
InfraOps centric DevOps centric
IT Ticket Requests App Developer Self Serve
Default to H/W redundancy Minimal H/W redundancy
Custom H/W Arch Template H/W Arch
Scale Up Scale Out
Why Most Organizations Will Need Two Clouds 17
Cloud Expo, November 8, 2012, San Francisco

18. The network design is different
EC2
Cloud
Cloud Apps
FLAT
networking model
VPC
Traditional Apps
Enterprise
VLAN
Enterprise Virtualization Elastic Infrastructure
Cloud
cloud type Cloud
Why Most Organizations Will Need Two Clouds 18
Cloud Expo, November 8, 2012, San Francisco

19. And so we end up with this:
Traditional apps Cloud Apps
APPS
INFRA
Why Most Organizations Will Need Two Clouds 19
Cloud Expo, November 8, 2012, San Francisco

20. Elastic Infrastructure Cloud
Design Principles
Why Most Organizations Will Need Two Clouds 20
Cloud Expo, November 8, 2012, San Francisco

21. EICs have Open APIs and protocols
Why Most Organizations Will Need Two Clouds 21
Cloud Expo, November 8, 2012, San Francisco

22. EICs use commodity / ODM hardware
AMZN, GOOG, and
Facebook buy direct
without a middleman.
ODMs operate their
businesses on 3-10%
margins.
Only a few enterprise
vendors are pivoting to
compete.
Why Most Organizations Will Need Two Clouds 22
Cloud Expo, November 8, 2012, San Francisco

23. EICs use open source software
Open Cloud System 2.0
Why Most Organizations Will Need Two Clouds 23
Cloud Expo, November 8, 2012, San Francisco

24. EICs force software to be responsible for
uptime, not the hardware
Hardware fails.
Software fails.
People fail.
Only software can
measure itself &
respond to failure in
near real-time.
Applications designed
for 99.999% uptime
can run anywhere
Why Most Organizations Will Need Two Clouds 24
Cloud Expo, November 8, 2012, San Francisco

25. EICs are inherently scale-out in nature
A B
A B C D N
A B
Scale-up - Make boxes Scale-out - Make more
bigger (usually an HA pair) boxes
Why Most Organizations Will Need Two Clouds 25
Cloud Expo, November 8, 2012, San Francisco

26. EICs help you stop hugging servers and
start shooting them instead
You name them
and when they get
VMs are your pets sick, you nurse
them back to
health
garfield.company.com
You number them
and when they get
Servers are cattle
sick, you shoot
them
web001.company.com
*thanks to Bill Baker, Distinguished Engineer, Microsoft for this
attrib: Bill Baker, Distinguished
Why Most Organizations Will Need Two Clouds Engineer, Microsoft
26
* added by yours truly ...
Cloud Expo, November 8, 2012, San Francisco

27. EICs use open networking approaches, and
are moving to commodity networking eqpt
Why Most Organizations Will Need Two Clouds 27
Cloud Expo, November 8, 2012, San Francisco

28. Summary of EVC vs. EIC
Enterprise Virtualization Cloud Elastic Infrastructure Cloud
Applications Traditional & Legacy Dynamic
Scaling Architecture Up Out
Technology Stack Heavy & Proprietary Distributed & Open
Price/Performance 4x-8x 1x
Failure Domains Large Small
Provisioning Slower & Manual Faster & 100% API
Server consolidation and lower On-demand, scale-out
Best For:
datacenter mgmt costs infrastructure for new apps
Why Most Organizations Will Need Two Clouds 28
Cloud Expo, November 8, 2012, San Francisco

29. Real-world scenarios
Why Most Organizations Will Need Two Clouds 29
Cloud Expo, November 8, 2012, San Francisco

30. Your app portfolio is spreading out...
Public Hosted Public
Public Elastic
Hosted Bare Enterprise
Virtualized Virtualization
Infrastructure PaaS SaaS
Metal Cloud
Infrastructure Cloud
Traditional inelastic client/server type applications
Dynamic applications
Private Private
Private Bare Metal Virtualized Enterprise Elastic
Virtualization Infrastructure
Infrastructure Infrastructure
Cloud Cloud
Why Most Organizations Will Need Two Clouds 30
Cloud Expo, November 8, 2012, San Francisco

31. Building a public or private EIC
Public Hosted Public
Public Elastic
Hosted Bare Enterprise
Virtualized Virtualization
Infrastructure PaaS SaaS
Metal Cloud
Infrastructure Cloud
Traditional inelastic client/server type applications
Dynamic applications
Open
Private Bare Metal Virtualized
Private
Enterprise
Private
Elastic Cloud
System
Virtualization Infrastructure
Infrastructure Infrastructure
Cloud Cloud
2.0
Why Most Organizations Will Need Two Clouds 31
Cloud Expo, November 8, 2012, San Francisco

32. Building a hybrid Elastic Infra Cloud?
Public Hosted Public
Public Elastic
Hosted Bare Enterprise
Virtualized Virtualization
Infrastructure PaaS SaaS
Metal Cloud
Infrastructure Cloud
Traditional inelastic client/server type applications
Dynamic applications
Private Private
Private Bare Metal Virtualized Enterprise Elastic
Virtualization Infrastructure
Infrastructure Infrastructure
Cloud Cloud
Why Most Organizations Will Need Two Clouds 32
Cloud Expo, November 8, 2012, San Francisco

33. App Architecture: Split-tier
Public Hosted Public
Web-Tier
Public Elastic
Hosted Bare Enterprise
Virtualized Virtualization
Infrastructure PaaS SaaS
Metal Cloud
Infrastructure Cloud
Traditional inelastic client/server type applications
Dynamic applications
Private Private
Private
DB Tier
Bare Metal Virtualized Enterprise Elastic
Virtualization Infrastructure
Infrastructure Infrastructure
Cloud Cloud
Why Most Organizations Will Need Two Clouds 33
Cloud Expo, November 8, 2012, San Francisco

34. Hybrid app portfolio (Gaming-model)
UN
Public Hosted Public
Public Elastic
Hosted Bare Enterprise
Virtualized Virtualization
Infrastructure PaaS SaaS
Known
Metal Cloud
Infrastructure Cloud
Traditional inelastic client/server type applications
Dynamic applications
Private Private
Private
Known
Bare Metal Virtualized Enterprise Elastic
Virtualization Infrastructure
Infrastructure Infrastructure
Cloud Cloud
Why Most Organizations Will Need Two Clouds 34
Cloud Expo, November 8, 2012, San Francisco

35. Building new legacy-style apps?
Public Hosted Public
Public Elastic
Hosted Bare Enterprise
Virtualized Virtualization
Infrastructure PaaS SaaS
Metal Cloud
Infrastructure Cloud
Traditional inelastic client/server type applications
Dynamic applications
Private Private
Private Bare Metal Virtualized Enterprise Elastic
Virtualization Infrastructure
Infrastructure Infrastructure
Cloud Cloud
Why Most Organizations Will Need Two Clouds 35
Cloud Expo, November 8, 2012, San Francisco

36. Building new dynamic cloud apps?
Public Hosted Public
Public Elastic
Hosted Bare Enterprise
Virtualized Virtualization
Infrastructure PaaS SaaS
Metal Cloud
Infrastructure Cloud
Traditional inelastic client/server type applications
Dynamic applications
Private Private
Private Bare Metal Virtualized Enterprise Elastic
Virtualization Infrastructure
Infrastructure Infrastructure
Cloud Cloud
Why Most Organizations Will Need Two Clouds 36
Cloud Expo, November 8, 2012, San Francisco

37. Full dev/test/production lifecycle in the cloud
Public Hosted Public
Public Elastic
Hosted Bare Enterprise
Virtualized Virtualization
Infrastructure PaaS SaaS
Metal Cloud
Infrastructure Cloud
Traditional inelastic client/server type applications
Dynamic applications
Private Private
Private Bare Metal Virtualized Enterprise Elastic
Virtualization Infrastructure
Infrastructure Infrastructure
Cloud Cloud
Why Most Organizations Will Need Two Clouds 37
Cloud Expo, November 8, 2012, San Francisco

38. Develop out, production in
Public Hosted Public
Development
Public Elastic
Hosted Bare Enterprise
Virtualized Virtualization
Infrastructure PaaS SaaS
Metal Cloud
Infrastructure Cloud
Traditional inelastic client/server type applications
Dynamic applications
Private Private
Private
Production
Bare Metal Virtualized Enterprise Elastic
Virtualization Infrastructure
Infrastructure Infrastructure
Cloud Cloud
Why Most Organizations Will Need Two Clouds 38
Cloud Expo, November 8, 2012, San Francisco

39. Or the reverse.
Public Public
Production
Hosted Public Elastic
Hosted Bare Enterprise
Virtualized Virtualization
Infrastructure PaaS SaaS
Metal Cloud
Infrastructure Cloud
Traditional inelastic client/server type applications
Dynamic applications
Private Private
Private Bare Metal
Infrastructure
Virtualized
Infrastructure Development
Enterprise
Virtualization
Cloud
Elastic
Infrastructure
Cloud
Why Most Organizations Will Need Two Clouds 39
Cloud Expo, November 8, 2012, San Francisco

40. Traditional “large data” + “big data”
Large
Public Structured Hosted Public
Public Elastic
Data;
Hosted Bare Enterprise
Virtualized Virtualization
Infrastructure PaaS SaaS
BIG Data
Metal Cloud
Infrastructure Cloud
Traditional inelastic client/server type applications Unstructured
Data Dynamic applications
Hadoop
Warehouse;
Private Private
Private Bare Metal Virtualized Enterprise Elastic
BI
Virtualization Infrastructure
Infrastructure Infrastructure
Cloud Cloud
Why Most Organizations Will Need Two Clouds 40
Cloud Expo, November 8, 2012, San Francisco

41. Hybrid Big Data (in/out)?
Public
Hosted Bare
Hosted
Virtualized
Public
Enterprise Public
Public Elastic
Infrastructure PaaS SaaS
Big Data
Metal Virtualization
Infrastructure Cloud
Cloud
Traditional inelastic client/server type applications
Dynamic applications
Private
Private
Private
Private Bare Metal Virtualized Enterprise Elastic
Virtualization Infrastructure
Infrastructure Infrastructure
Cloud Big Data
Cloud
Why Most Organizations Will Need Two Clouds 41
Cloud Expo, November 8, 2012, San Francisco

42. Private or Public PaaS
Public Hosted Public
Public Elastic
Hosted Bare Enterprise
Virtualized Virtualization
Infrastructure PaaS SaaS
Metal Cloud
Infrastructure Cloud
Traditional inelastic client/server type applications
Dynamic applications
Private Private
Private Bare Metal Virtualized Enterprise Elastic
Virtualization Infrastructure
Infrastructure Infrastructure
Cloud Cloud
Why Most Organizations Will Need Two Clouds 42
Cloud Expo, November 8, 2012, San Francisco

43. Hybrid PaaS
Public Hosted Public
Public Elastic
Hosted Bare Enterprise
Virtualized Virtualization
Infrastructure PaaS SaaS
Metal Cloud
Infrastructure Cloud
Traditional inelastic client/server type applications
Dynamic applications
Private Private
Private Bare Metal Virtualized Enterprise Elastic
Virtualization Infrastructure
Infrastructure Infrastructure
Cloud Cloud
Why Most Organizations Will Need Two Clouds 43
Cloud Expo, November 8, 2012, San Francisco

44. Traditional Systems Mgmt: Tivoli, etc.
Public Hosted Public
Public Elastic
Hosted Bare Enterprise
Virtualized Virtualization
Infrastructure PaaS SaaS
Metal Cloud
Infrastructure Cloud
Traditional inelastic client/server type applications
Dynamic applications
Private Private
Private Bare Metal Virtualized Enterprise Elastic
Virtualization Infrastructure
Infrastructure Infrastructure
Cloud Cloud
Why Most Organizations Will Need Two Clouds 44
Cloud Expo, November 8, 2012, San Francisco

45. Application Mgmt: Cloudscaling OCS
Public Hosted Public
Public Elastic
Hosted Bare Enterprise
Virtualized Virtualization
Infrastructure PaaS SaaS
Metal Cloud
Infrastructure Cloud
Traditional inelastic client/server type applications
Dynamic applications
Private Private
Private Bare Metal Virtualized Enterprise Elastic
Virtualization Infrastructure
Infrastructure Infrastructure
Cloud Cloud
Why Most Organizations Will Need Two Clouds 45
Cloud Expo, November 8, 2012, San Francisco

46. Application Mgmt: RightScale
Public Hosted Public
Public Elastic
Hosted Bare Enterprise
Virtualized Virtualization
Infrastructure PaaS SaaS
Metal Cloud
Infrastructure Cloud
Traditional inelastic client/server type applications
Dynamic applications
Private Private
Private Bare Metal Virtualized Enterprise Elastic
Virtualization Infrastructure
Infrastructure Infrastructure
Cloud Cloud
Why Most Organizations Will Need Two Clouds 46
Cloud Expo, November 8, 2012, San Francisco

47. Application Mgmt: enStratus
Public Hosted Public
Public Elastic
Hosted Bare Enterprise
Virtualized Virtualization
Infrastructure PaaS SaaS
Metal Cloud
Infrastructure Cloud
Traditional inelastic client/server type applications
Dynamic applications
Private Private
Private Bare Metal Virtualized Enterprise Elastic
Virtualization Infrastructure
Infrastructure Infrastructure
Cloud Cloud
Why Most Organizations Will Need Two Clouds 47
Cloud Expo, November 8, 2012, San Francisco

48. Homework
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Cloud Expo, November 8, 2012, San Francisco

49. Your Homework
•Share this more defined worldview / language to your team
•Look at your business and where you create value
•Analyze your upcoming app dev and existing apps
•Clearly bucket them into EVC / EIC candidates
•Build out your EVC and EIC
•Create and deploy the apps
•Accrue the business value
Why Most Organizations Will Need Two Clouds 49
Cloud Expo, November 8, 2012, San Francisco

50. THANK YOU
Troy Angrignon
VP, BD & Partnering
troy@cloudscaling.com
@troyangrignon
Why Most Organizations Will Need Two Clouds 50
Cloud Expo, November 8, 2012, San Francisco