Groth data of-cloud

Groth data of-cloud

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  Cloud Computing Andy Bechtolsheim Chairman& Co-founder, Arista Networks November 12th, 2008
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  What is CloudComputing? The Fifth Generation of Computing (after Mainframe, Personal Computer, Client-Server Computing, and the web) 2
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  What is CloudComputing? The biggest thing since the web? 3
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  How big isCloud Computing? $42B Estimated size of the cloud computing Infrastructure market in 2012, up from $16B in 2008, IDC October 2008 4
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  Projected Cloud Spending(IDC 2008) Year 2008 2012 Growth Cloud IT Spending $16B $42B 27% Total IT Spending $383B $494B 7% Total – Cloud Spend $367B $452B 4% Cloud / Total Spend 4% 9% Cloud Spending is growing 6X faster than traditional IT spending 5
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  Worldwide IT CloudSpending 2012 Source: IDC October 2008 6
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  What is DrivingCloud Computing? Customer Perspective • In one word: economics • Faster, simpler, cheaper to use cloud apps • No upfront capital required for servers and storage • No ongoing operational expenses for running datacenter • Applications can be accessed from anywhere, anytime 7
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  What is DrivingCloud Computing? Vendor Perspective • Easier for application vendors to reach new customers • Lowest cost way of delivering and supporting applications • Ability to use commodity server and storage hardware • Ability to drive down data center operational cots • In one word: economics 8
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  Quote of theDay Over the long term, absent of other barriers, economics always win! 9
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  What are theBarriers to Cloud Computing? Customer Perspective • #1 Data Security •  Many customers don’t wish to trust their data to “the cloud” •  Data must be locally retained for regulatory reasons • #2 Latency •  The cloud can be many milliseconds away •  Not suitable for real-time applications • #3 Application Availability •  Cannot switch from existing legacy applications •  Equivalent cloud applications do not exist Not all applications work on public clouds 10
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  What are theBarriers to Cloud Computing? Vendor Perspective • #1 Service Level Agreements •  What if something goes wrong? •  What is the true cost of providing SLAs? • #2 Business Models •  SaaS/PaaS models are challenging •  Much lower upfront revenue • #3 Customer Lock-in •  Customers want open/standard APIs •  Need to continuously add value Each applications is unique 11
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  The Private EnterpriseCloud • Harness the advantages of clouds for the enterprise •  Cost-effective datacenter infrastructure •  Server and storage resource pools • High Availability and Reliability in Software •  Virtual application environment •  Separation of processing and storage • On-demand Application Deployment •  Greatly increases server utilization •  Prioritization based on business requirements 12
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  Private Cloud ArchitectureElements • Server Virtualization •  Enable any app to run on any server anytime • Highly Available Storage •  Network block and file servers • Low latency, high-bandwidth network •  Enable application mobility in the cloud • Pre-emptive application scheduler •  Implements business rules and priorities • Low-cost industry standard servers •  Transcend hardware failures with software 13
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  Traditional Enterprise DatacenterUtilization 100 90 80 70 60 50 40 30 20 10 0 Traditional Enterprise Datacenter utilization is often below 20% 14
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  Virtualized Enterprise DatacenterUtilization 100 90 80 70 60 50 40 30 20 10 0 Virtualization significantly improves average server utilization 15
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  Cloud Enterprise DatacenterUtilization 100 90 80 70 60 50 40 30 20 10 0 Cloud computing further increases average server utilization 16
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  Enterprise Private Clouds • Significantly improves average server utilization •  Driving corresponding reductions in CAPEX and OPEX •  Allows the use of low-cost server and software hardware •  Further reducing CAPEX •  Reduces power consumption •  Further reducing OPEX •  Increases control over resource allocation •  Scheduler implements business priorities •  Improves application and data availability •  Consistent mechanisms to deal with HW failure 17
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  Cloud Computing Summary • Move the application to “the cloud” •  Decouple the user and datacenter location •  Software as a service business models •  Google/Yahoo/Amazon/Facebook/etc •  Similar benefits with enterprise applications •  Salesforce, Netsuite, SugarCRM •  Similar benefits for internally developed applications •  Makes software easy to deploy across multiple sites 18
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  Conclusions (cont) • Cloud Computingis the fastest growing part of IT • Tremendous benefits to customers of all sizes • Cloud services are simpler to acquire and scale up or down • Key opportunity for application and infrastructure vendors • Public clouds work great for some but not all applications • Private clouds offer many benefits for internal applications • Public and private clouds can be used in combination Economic environment is accelerating adoption of cloud solutions 19