A comprehensive introduction to Cloud Computing. Learn what it is, how it works, where it might be applicable, and when to avoid it. Presented by C3 / Cloud Computing Concepts Managing Partner, Rick Mancinelli.

1. Up In The CloudsAn Introduction to Cloud Computing

2. Introduction… Presented by Rick Mancinelli Technology Consultant since 1990 Background in Software Development, Network Engineering, and Executive Level IT Management Managing Partner in Cloud Computing Concepts, LLC

3. Cloud Computing Overview

4. Origins of the term Cloud Computing It has absolutely nothing to do with the weather. The “Cloud” was originally used to represent the network or the Internet on infrastructure diagrams. It was later used as an abstraction of applications and services on similar diagrams. NY LA Internet MIA CHI

5. Modern Definition of Cloud Computing According to the National Institute of Standards and Technology… “Cloud Computing is a model for enabling convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction.”

6. Three Components of Cloud Computing Software as a Service (“SaaS”) Platform as a Service (“PaaS”) Infrastructure as a Service (“IaaS”)

7. Software as a Service Software which is typically accessed via web browser. Initially used for Sales Force Automation (“SFA”) and Customer Relationship Management (“CRM”). Now encompasses many different types of software, including Accounting, Financials, ERP, & Productivity. Most of you probably use some of it today! Examples include Gmail, Salesforce.com, QuickBooks Online, and WebEx.

8. Platform as a Service Entire software development platform presented as a service. Less common than SaaS, but still critical to Cloud Computing model. Examples include Force.com and the Google App Engine. Allows custom software to be prototyped, built, tested and deployed more rapidly than traditional development approaches.

9. Infrastructure as a Service All or significant portions of corporate IT systems are moved to the cloud. Enabled by virtualization technologies from companies like VMware. Initially just servers were moved to the cloud, but today desktops are increasingly moving there too. IT systems become accessible from many different types of devices including PC’s, thin clients, smart phones and tablets (such as iPads).

10. Three Different Types of Clouds

11. The Private Cloud Essentially one or more corporate owned clusters of servers and storage arrays running a virtualization solution such as VMware’s vSphere. Common in Fortune 500 and other larger organizations. Often too expensive for small and medium sized businesses. Difficult for most organizations to support once built.

12. The Public Cloud Primarily what people are referring to when they talk about Cloud Computing. All infrastructure (Servers, Storage, Networking) is rented from a provider and accessed online. Client pays only for the resources they require at a given time.

13. The Hybrid Cloud Somewhat less common, but still relevant. Links a Private Cloud and a Public Cloud together. Should be seamless to end users if properly implemented.

14. Why Cloud Computing Is Becoming Pervasive

15. Reduced Capital Expenditures The number one reason cited by users of Cloud Computing. Little or no upfront hardware or software costs required. Popular choice for Startups with limited access to capital or financing. Also popular given recent shortages in funding available for lease financing.

16. Reduced Management Costs No need to track and manage lifecycle of physical hardware. No need to update BIOS or firmware on servers or network devices. Never again worry about time or costs spent replacing failed equipment. Reduced attack surface for viruses, trojans, and other malware. Provisioning of new services is much quicker and easier. Recovery from failure is faster. Off-site backup is included in most solutions. Upgrade to new servers is handled automatically.

17. Other Cost Savings Save on the true cost of money. Using an average rate of 11% for an equipment lease, it costs $17,850 to finance $100,000 in equipment for 36 months. Eliminate co-location costs for those clients already paying for space in a hardened facility. This can mean savings of up to $3000 per rack per month, depending upon how it is configured. Reduce power and cooling expenses by replacing servers with Cloud based solutions. More on this in a few slides…

18. Scalability Management can quickly scale up without additional capital expenditures. Delays related to equipment backorders, shipping, and configuration are eliminated. Entire servers can be provisioned in less than 15 minutes. RAM or Disk Space can be added in as few as 5 minutes. Impossible to match these service levels with physical hardware.

19. Elasticity The Cloud allows companies to scale down IT operations just as easily as they can scale them up. Cyclical or seasonal businesses can provision additional resources for short period of time. Downsizing companies, a painful reality in today’s economy, can save immediately by eliminating unused resources. Ideal for temporary projects, proof of concepts, upgrades, etc.

20. High Availability Most reputable providers use enterprise class commercial hardware with highly redundant features. Google is one notable exception – they actually build their own servers, and the Gartner Group estimates that they are actually the 4th largest server manufacturer in the world. Most every Cloud provider maintains their equipment in one or more highly resilient data centers. Most organizations, especially small and medium sized businesses, could not afford to replicate the level of high availability that most Cloud providers offer.

21. Inherent Remote Access Once in the Cloud, remote access is the ONLY method of access. Eliminates the need for expensive solutions like Citrix or Terminal Services. Remote access can be controlled by user and/or by location as necessary.

22. Disaster Recovery Features This is a topic that could easily stand on its own. The statistics are scary: Gartner estimates that only 35% of small and medium businesses have a comprehensive DR plan in place. SANS Institute estimates that only 15% of mid-sized data centers would be able to recover more than 30% of their applications given an unlimited time frame. According to Touche Ross, the survival rate for companies without a DR plan is less than 10%. According to an NFIB poll, man-made disasters affect 10% of small businesses whereas natural disasters have impacted more than 30% of small businesses in the US. Hurricanes are the leading cause of loss among all natural disasters. Locating corporate IT infrastructure, applications and data within the Cloud helps mitigate these risks by leveraging highly available systems, rapid data recovery and resilient buildings.

23. Business Continuity Often confused with or lumped in with Disaster Recovery, Business Continuity is actually the process of enabling critical business operations to continue during the recovery phase of a disaster. Cloud based solutions enable business continuity by isolating applications and data from corporate office(s). During Hurricane Wilma, our office building in Boca Raton had no commercial power for 10 business days in a row yet our phones, servers, and desktops were all available.

24. Physical Security By moving sensitive data to the Cloud, the risk of data loss due to physical theft is eliminated. Lost, damaged, or stolen computers, laptops, and/or thin clients pose no risk because they contain no sensitive data and no personally identifying information. Ideal for public areas such as kiosks, libraries, and schools where the risk of theft is greater. Also great for construction sites, manufacturing plants, warehouses and other harsh environments where PCs would be easily damaged.

25. The Green Aspect Simply put, Cloud Computing is a very “Green” method of using technology. Using a Florida average of $0.10 per Kilowatt Hour, replacing a 150 watt PC with a 15 watt Thin Client results in a savings of $118.26 per PC replaced per year. A server with a power draw of 500 watts, when moved to the Cloud, will save $438 per year. PC’s have a life span of 3-4 years versus the 6-8 years of a Thin Client. This results in less landfill impact. Thin Clients are also much smaller and thus have fewer parts. This further reduces the landfill impact. The servers that make up most Cloud environments typically run at utilization rates of between 70% and 80% versus the 15% of the average corporate server. Less Servers = Less Power Draw = Lower Carbon Footprint!

26. Situations Where Cloud Computing Is Recommended

27. Cloud Computing is an EXCELLENT fit for… Businesses that operate 24x7 and require the maximum uptime available. Telecommuting based businesses. Startups with limited access to cash or financing. Established businesses with credit trouble that limits financing options.

28. We Recommend the Cloud to a Client That Is… Nearing the end of their current equipment’s lifecycle. About to undergo an expansion or open a new office. Expressing a need for Disaster Recovery and/or Business Continuity planning. Considering an investment in Remote Access technologies and infrastructure. In need of additional storage or computing resources. About to undertake a major software upgrade. Deploying a temporary or proof of concept service or application.

29. The Cloud is NOT For Everyone….Yet

30. Users of Graphically Intensive Applications Architects Designers Graphic Artists Video Editors Photographers Others which require dedicated GPU resources …should currently avoid the Cloud.

31. Clients With New Equipment Moving wholesale to the Cloud after a recent upgrade to internal equipment would be wasteful and against the spirit of the Cloud. These clients should keep the Cloud in mind if the need arises to augment internal equipment, software, or services. Off-site backup is a great example.

32. Clients Where Broadband Access is Not Available This is an increasingly rare occurrence. Bandwidth requirements for server virtualization will vary by client. Bandwidth requirements for desktop virtualization are currently 500kbps (0.5mbps) per desktop of download speed and 50kbps (0.05mbps) of uploadspeed. Current 3G wireless is adequate. 4G will be even better.

33. Clients That Require Apple Mac OSX Virtualization Apple has not (yet) fully embraced the Cloud. Part of the Mac OSX profit model relies on the sale of proprietary hardware. There is a lot of pressure on Apple to allow virtualization of the Mac OSX platform. Most industry pundits believe it will be just a matter of time.

34. Summary

35. The Current State of Cloud Computing The single fastest growing segment in all of technology. Consumer adoption is already very high given solutions like Facebook, Twitter, NetFlix on Demand, Flickr, Slideshare, Vimeo, Mozy, Pandora and others. Enterprise adoption is being pushed by many notable players including Microsoft, Google, Cisco, Intuit, Amazon, and Salesforce.com. In 2009, Gartner calculated that enterprise spending on Cloud Computing and related services was $58.6B. According to Steve Ballmer, CEO of Microsoft, 70% of their employees are currently involved in Cloud related projects. This will jump to 90% in 2011. The time to begin studying the Cloud’s impact on your business is NOW!

36. The Future of Cloud Computing IDC projects a CAGR for Cloud Computing of 26% over the next 4 years versus 4% for traditional IT related spending. Gartner predicts Cloud Services spending to reach $148.8B in 2014. High speed connectivity will continue to become cheaper, faster, and more ubiquitous. Applications will continue to improve and the so-called “feature gap” between SaaS applications and their desktop counterparts will narrow significantly or disappear altogether. Mobile devices such as the iPhone, iPad, and Android powered tablets and smart phones will drive further adoption of Cloud related services. The next “killer app” is just around the corner.

37. Quotable Quotes “By 2012, 20% of businesses will own no IT assets.” – Gartner Group, January 13, 2010. “Almost every startup we invest in either offers cloud services or uses components of Platform as a Service or Infrastructure as a Service.” – HabibKairouz, Rho Capital Partners, June 6, 2010. “People ask me why do I think cloud computing will be the next phase of Enterprise IT? I don’t think it. I know it.” – Bill McCracken, Chairman and CEO of CA Technologies, May 16, 2010. “We are betting our company on the Cloud.” – Steve Ballmer, Microsoft CEO, March 4, 2010.

38. Questions & Answers

39. THANK YOU for Your Time! Email: rmancinelli@c3office.com Web: www.bisginc.com Phone: 561-939-4035 x4012 Linked In: www.linkedin.com/in/rickmancinelli Twitter: @c3office