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CloudExpo Cloud Computing IaaS Growth Details 2015 - Why 2014 Was A Turning Point

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Cloud Computing and IaaS are growing rapidly and now we are entering the age of the Early Majority. We've reached Peak Data Center, Peak Colocation and Peak Enterprise software - IT teams are embracing public cloud infrastructure from companies like ProfitBricks, Amazon AWS, Microsoft Azure and IBM SoftLayer. 2014 was a turning point where cloud computing infrastructure services transitioned from being the playground of developers and startups to the primary deployment option of IT teams that are tasked with upgrading and scaling on-premise applications and workloads. In this standing room only talk at CloudExpo, I shared insight into why 2015 and beyond is a turning point for IaaS..

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CloudExpo Cloud Computing IaaS Growth Details 2015 - Why 2014 Was A Turning Point

  1. 1. William Toll (@utollwi), VP Marketing - US, ProfitBricks June 9 2015 Cloud Expo East #CloudExpo Why 85% of workloads are not on the public cloud, and why they all will be in the cloud by 2020
  2. 2. • NJ Native, living in Berlin, Germany • 15 Years working for Internet Infrastructure Companies • B2B Product and Marketing leader for direct and channel based services for Internet companies • Former Employers: ValueWeb, Affinity Internet (now Hostway), NTT/Verio, Intermedia.NET, NaviSite and Yottaa • Active Speaker, Blogger, Community Member and Social Media Networker WILLIAM TOLL, PROFITBRICKS William Toll @utollwi Painless Cloud Infrastructure
  3. 3. • Founded in 2010, 135 Employees (May - 2015) • Global Cloud Computing Service – IaaS (Infrastructure as a Service) – operations in Berlin/Germany, San Antonio/Texas and Boston/MA • $38M in funding to date • No legacy infrastructure, hardware or provisioning systems • Focus on delivering pure Painless Cloud Computing Infrastructure - IaaS services with market leading price/performance ratios • Strong roadmap with additional DC’s and Innovative Cloud Computing Infrastructure Services ABOUT PROFITBRICKS Painless Cloud Infrastructure
  4. 4. Painless Cloud Infrastructure WE‘VE COME VERY FAR IN IT
  5. 5. Painless Cloud Infrastructure 1982 1994 2006 IT TRANSFORMATIONS OF THE PAST We found a need for IT for everyone We networked the office We moved from client server to the web browser
  6. 6. THE EVOLUTION OF IT Painless Cloud Infrastructure Competition among IT vendors has always been intense. (Oracle, July 2001)
  7. 7. ENTERPRISE IT OF THE PAST Digital Equipment Compaq Microsoft Word Perfect Seibel Ashton-Tate PeopleSoft SAP Lawson JD Edwards Kronos Baan Sage Palm Novel Netware Netscape Navigator Cold Fusion Borland Delphi Informix Some vendors transform, others get acquired and some die. Painless Cloud Infrastructure
  8. 8. ENTER THE CLOUD Cloud Computing Arrives in mid-2000s Painless Cloud Infrastructure
  9. 9. CLOUD’S ROOTS Painless Cloud Infrastructure Virtualization • Free BSD Jails and some basic virtualization/container technologies • 1999 VMware workstation launches • 2003 Xen open-source virtualization platform is born • 2007 Virtualbox Early Automated Infrastructure • Hosting providers like Rackspace and 1&1 • Enterprise hosting platforms leveraging Savvis or MediaTemple • Amazon’s AWS in 2006
  10. 10. CLOUD COMPUTINGS’ SAAS Painless Cloud Infrastructure Early growth of Cloud Computing was attributed to SaaS: Email (Office 365, Google Apps), CRM (Salesforce), Payroll (ADP)
  11. 11. CLOUD WASHING The cloud computing label became ubiquitous in 2010 and remains today Painless Cloud Infrastructure
  12. 12. PEAK DATA CENTER Painless Cloud Infrastructure There are 8.6 Million Data Centers, peaking in 2017 and then will decline. IDC 2014
  13. 13. PEAK DATA CENTER Painless Cloud Infrastructure “Over the next five years, a majority of organizations will stop managing their own infrastructure” IDC 2014
  14. 14. PEAK SERVER Painless Cloud Infrastructure Both IDC and Gartner think growth in the server market is being driven primarily by investment in hyperscale data centers. DataCenterKnowledge Dec 2014
  15. 15. PEAK COLO Painless Cloud Infrastructure While retail colocation revenue is growing worldwide by 10% in 2015…..
  16. 16. Painless Cloud Infrastructure In NA - 60 percent (revenue is) from service providers and just under 40 percent from enterprise. Synergy Research 2014 PEAK COLO
  17. 17. PEAK LEGACY IT While software rarely comes in a box today, the vendors of today’s apps are shifting dramatically. Painless Cloud Infrastructure
  18. 18. MIX OF APPS MOVING IS CHANGING 88 percent of buyers preferred on-premise solutions in 2008, 87 percent preferred cloud solutions in 2014. Everest Group Painless Cloud Infrastructure
  19. 19. A DELAY? Why has cloud computing (non-SaaS) taken so long to spread to the other 85% of IT? Painless Cloud Infrastructure
  20. 20. THE HYPE & THE SHINY BALL Painless Cloud Infrastructure Developers and startups are always upgrading their toolsets- because they can.
  21. 21. CLOUD IS ALL WE HEAR Cloud Computing growth among startups and developers soared from 2009 to 2014 Painless Cloud Infrastructure
  22. 22. IN HOUSE REMAINS KING Companies deliver an average of only 18% of their workloads from the cloud today. (Bain & Company 2015) Painless Cloud Infrastructure
  23. 23. CLOUD EARLY ADOPTERS Painless Cloud Infrastructure Innovators and Early Adopters Drove Cloud Computing’s Early Years Cloud Computing 2006+
  24. 24. THE DELAY: WE WERE NOT READY Outages Security Early Cloud Complexity and Inflexibility Painless Cloud Infrastructure C-Level Fear Migration & Adaptation
  25. 25. WHY SUCH A BIG GAP Painless Cloud Infrastructure Developers vs. Traditional IT
  26. 26. 2014: GENERAL IT WANTS IN World IT Cloud Infrastructure Market is Growing by 21% year over year to $32 billion in 2015, accounting for approximately 33% of all IT infrastructure spending, which will be up from about 28% in 2014 IDC April 2015 Painless Cloud Infrastructure
  27. 27. CLOUD 2014: EARLY MAJORITY ARRIVES Painless Cloud Infrastructure Innovators and Early Adopters Drove Cloud Computing’s Early Years Cloud Computing 2006-2014
  28. 28. 2014 & 2015: GENERAL IT IS NOW READY • Security • Budgets • C-Level Acceptance • Early SaaS Projects Had Great Results • Cloud Computing Has Matured and now applications can be moved to the cloud with adaption or re- writing them • DevOps Processes & Tools Maturing Painless Cloud Infrastructure
  29. 29. CLOUD SECURITY Cloud Security concerns are decreasing rapidly. RightScale 2015 Painless Cloud Infrastructure
  30. 30. IT BUDGETS IN 2015 IT Budgets are back in growth mode. Computerworld Survey 2014 Painless Cloud Infrastructure
  31. 31. CLOUD MIGRATIONS Painless Cloud Infrastructure Moving applications to the cloud is far easier with new and more mature Cloud Computing Infrastructure. 1st Generation Cloud Computing Platforms 2006-2014 2nd Generation Cloud Computing Platforms 2014+
  32. 32. C-LEVEL & LOB VS. IT C-Level Pushing cloud for agility, and innovation with and against IT. Avanade 2014 Painless Cloud Infrastructure
  33. 33. GENERAL IT’S CHALLENGES • People (Training) • Processes (Change & Documentation) • Finance (CAPEX vs. OPEX) • Cloud Migration Planning & Prioritization • DevOps & Automation Painless Cloud Infrastructure
  34. 34. PEOPLE Manage expectations, assess team readiness and schedule training Painless Cloud Infrastructure
  35. 35. PROCESSES Cloud migration planning is critical to a successful cloud transition, plan accordingly. Painless Cloud Infrastructure
  36. 36. FINANCE The CapEx to OpEx transition difficulty is compounded by complex pricing and the changes in depreciation and financing. Painless Cloud Infrastructure
  37. 37. CLOUD MIGRATION PLANNING Prioritize migrations based on Application Architectures, Application Lifecycle, Application licensing, Data Security, ROI on Migration Painless Cloud Infrastructure
  38. 38. MONITORING & AUTOMATION APIs and the tools from the ecosystem are multiplying and becoming more capable and easier to implement as they mature. Painless Cloud Infrastructure
  39. 39. WHAT TO LOOK FOR IN A CLOUD PROVIDER • Training: • Easy to use cloud and on-premise like servers, storage & networks • Change & Document: • Architect & Support • CAPEX vs. OPEX: • Easy to understand pricing • Cloud Migration Planning: • Which apps go first • DevOps & Automation: • APIs & Tools Painless Cloud Infrastructure
  40. 40. RALLY THE TEAM Be sure to have a top down and bottom up approach – the Cloud offers an opportunity to transform IT. Painless Cloud Infrastructure
  41. 41. Public cloud platforms will rival traditional infrastructure deployments by 2020 (Forrester April 2014) CLOUD IN 2020 Painless Cloud Infrastructure
  42. 42. Cloud 1.0 Architecture ● Born from dedicated servers & VPS ● Server based, over subscribed ● Designed around slow Ethernet network technology – 1 or 10 Gb/s and often throttled Cloud 2.0 Architecture InfiniBand Dedicated CPU Cores Dedicated RAM Redundant Storage x2 80 Gb/s 80 Gb/s 80 Gb/s PAINLESS CLOUD INFRASTRUCTURE Painless Cloud Infrastructure
  43. 43. Migration without adaptation – ProfitBricks cloud infrastructure behaves like physical hardware with all the advantages of the cloud No learning curve needed– ProfitBricks lets existing teams’ knowledge sets and processes be used to achieve rapid success with the cloud 24/7 Local Phone support – USA and EU based Cloud Architects and SysAdmins always on standby Price/Performance Guarantee: “We guarantee that any workload deployed on ProfitBricks will cost less than the same workload running at the same performance level on the IaaS platforms of Amazon, Google or Microsoft.” PROFITBRICKS: PAINLESS CLOUD INFRASTRUCTURE 1 2 3 4 Painless Cloud Infrastructure
  44. 44. PROFITBRICKS DATA CENTER DESIGNER Painless Cloud Infrastructure
  45. 45. THANK YOU + QUESTIONS Start a 14-Day Free Trial or contact a ProfitBricks Cloud Executive: or Call: 1-866-852-8229 Learn about Cloud Pricing in our White Paper: Secret World of Cloud Computing IaaS Pricing As Seen In VP, Marketing ProfitBricks USA Phone: 866-852-5229 Twitter: @utollwi Painless Cloud Infrastructure