Topics: Cloud computing fundamentals SaaS, PaaS, IaaS, and managed services State of cloud infrastructure in 2017 Current Market Key differentiators of market leaders Emerging trends

1. CLOUD INFRASTRUCTURE IN 2017

2. Topics
• Cloud computing
fundamentals
• State of cloud infrastructure
in 2017
• Current Market
• Key differentiators of market
leaders
• Emerging trends

3. • Ran the product team that grew the VMware
private cloud at Rackspace from $300M to
$600M
• Led the Dell/EMC/VMware alliance for
Rackspace
• Invented an automated testing platform for
HP servers
• 22 computer architecture patents
About me
Convergent Founder
and CEO:
Creates software for
integration of rich data,
analytics, IoT and AI
across legacy and cloud
environments

4. Cloud computing –
Who cares?
Cloud is
the
foundation
for digital
businesses
Systems of
Engagement
Systems of
Intelligence
Systems of
Record
Cloud

5. Credit: flickr/jenny-pics/
Cloud computing –
What is it?
Technology delivered in a new
way
• Over the Internet
• Capacity provided on an “as
needed basis” or utility
• Resources provided
programmatically (API)
• Some (or all) IT systems now
owned and operated by a Cloud
Service Provider (CSP)

6. Cloud computing –
What is it?
Company
Cloud Service
Provider Company
Traditional IT model Cloud IT model
Hardware
Datacenter
USERS
Applications
Operating Systems
Hardware
Datacenter
Users
Applications
OS

7. Cloud computing –
What is it NOT?
• Virtualization
• Not automated via API
• Hosting
• Off-premise (Colocation)
• IT Outsourcing

8. Types of cloud
computing
•“Unlimited” number of users
•Share a common platform, e.g. Google, Amazon AWS,
Microsoft Azure, etc.
Public Cloud
•Limited number of users linked by special interests, i.e.
“government cloud”Community Cloud
•Integrated combination of on-premise, private, public
and/or community cloud services from different
providers
Hybrid Cloud
•User self service, highly automated
•Could be on premise or hosted
•Used by one or more internal organizations
Private Cloud

9. Cloud ecosystem
• Software as a
Service
SaaS
• Platform as a
Service
PaaS
• Infrastructure
as a Service
IaaS
• Applications
• Middleware
• Databases Integration &
Applications
• Virtual
Machines
• Hardware
• Datacenter
Applications
Databases
Middleware
OS
CompaniesService Providers
Users &
IntegrationManaged
services
• Professional
services
• Service
desk

10. Why are there so many flavors
of cloud?
Proliferation
• Many application types
• New business use cases drive
new architectures
• Companies have different
internal skillsets

11. Pricing models in the cloud
• Resource per hour, minute, second
• Server per hour
• GB per hour
• Inbound/Outbound Bandwidth
• Data Migration services (ex.Snowball)
• Per API call (data transaction)

12. Methods cloud providers use to maximize profits
• Fremium
• Proprietary APIs
• Data Gravity
• Sticky proprietary features
• Google Big Query
• AWS OpsWorks Stacks

13. Infrastructure cost – public vs. private cloud
Unit $
Consumption Workload Variability
Public Cloud
Private Cloud
Source: Author

14. The cloud is a confusing place
• The answer is – yes, to both
• You can consume the platform
offerings, or just consume the
infrastructure and do the rest
yourself
• Many combinations of service
providers are possible (and
common)
Is Amazon
Web Services
(AWS) a
IaaS or
PaaS?

15. 2017 State of the cloud – Your mileage varies
Sources:
IDC Press Release http://www.idc.com/getdoc.jsp?containerId=prUS42321417
Forbes: https://www.forbes.com/sites/louiscolumbus/2017/04/29/roundup-of-cloud-
computing-forecasts-2017/#5b554cd731e8
“Worldwide spending on
public cloud services and
infrastructure will reach
$122.5 billion in 2017,
an increase of 24.4% over
2016. ”
-IDC
Gartner predicts the
worldwide public market
will grow 18% in 2017 to
$246.8B up from
$209.2B in 2016.
-Forbes

16. Why?
• Different analyst
taxonomies
• Different vendor product
categories
• Products that span
categories
• Many private companies
(startups), especially in
SaaS

17. How to think about growth in cloud - Overall
• Lots of headroom
• Only 5-7% of addressable overall IT
spend
• Even by 2020, still less than 15%
• Growing 5-7 times as fast as overall IT
spend
• New workloads primarily going to
cloud
• Servicing legacy IT will continue to be
a cash cow (but declining gradually
over time)

18. How to think about growth in cloud - SaaS
• 2/3 of cloud revenue but only
5-10% growth
• Most software providers are
already using a SaaS model
but may still get significant
revenue from traditional model

19. How to think about growth in cloud - PaaS
• Smallest segment but growing
at 30-40%, especially with
large enterprise
• Most relevant with Fortune 250

20. How to think about growth in cloud - IaaS
• $35-80B segment and growing
at 30-50%
• Moving from Rogue IT to
Central IT
• New SaaS startups - Primary
customer for IaaS providers

21. State of the cloud 2017
Source: http://www.rightscale.com/lp/2017-state-of-the-cloud-report

22. Top 3 cloud players - Strategies
• AWS
• Quickly adding sticky enhancements
• Developer focused (ex. devops tools)
• Strongest with startups and cloud natives,
growing in the Enterprise
• Azure
• Quickest growth
• Making good use of enterprise sales, direct
and channel, free cloud credits
• Strongest in the enterprise
• Google
• Robust growth
• Focused on Analytics and Big data to drive
adoption
• Growth in eCommerce (AdWords)

23. Emerging trends
• Hybrid Cloud/Multicloud
• Containers
• Big Data/Data Lake
• Hybrid Applications –
Microservices, APIs, SOA,
Data integration
• Opensouce

24. Q & A