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Costing The Private Cloud
      Moving the current USAREUR user
        data storage into the “Cloud”
Issues Effecting Present Day Users

Examples of User Data:
My Documents
Pictures                Data Storage
MS Office Documents
PDF’s                     “Users”
PST’s
                         OS Delivery/
                         App Delivery

                         Single Image
The “Private Cloud” = 10X
Improvements for 1000 servers

•   Scalability
•   Reliability
•   Availability
•   Economics
•   Security
Amazon Web Services vs. DISA “RACE”

      Amazon Web Services                                             DISA “RACE”
     Infrastructure As a Service                           Infrastructure As a Service
          Amazon Simple Queue Service                      Production virtual servers may be ordered
                                                          for RACE test servers that you plan to
          Amazon Simple Storage Service
                                                          promote to production, provided that these
          Amazon Elastic Compute Cloud                    servers are on a 'Path-To-Production' and
                                                          pass applicable Gold Disk/SRR and Retina
                                                          scans. Production servers ordered through
Amazon S3 provides a simple web services interface
                                                          RACE are provisioned for a full fiscal year or
that can be used to store and retrieve any amount of
                                                          the remaining number of whole months in
data, at any time, from anywhere on the web. It gives
                                                          the current fiscal and billed quarterly. The
any user access to the same highly scalable,
                                                          first quarterly payment is made through
reliable, secure, fast, inexpensive infrastructure that
                                                          RACE with subsequent quarterly payments
Amazon uses . The service aims to maximize benefits
                                                          billed by your Customer Account
of scale and to pass those benefits on to developers.
                                                          Representative (CAR).
Scalability

•   See Ease of Use
•   Control your infrastructure with your app
•   Nothing to purchase and take delivery on
•   Instant
Reliability


• Based on enterprise grade hardware
• Design for failures:
 ▫ Automatically spin up replacements
 ▫ Use multiple clouds
Availability


•   Access ANYTIME/ANYWHERE (24/7)
•   Quick Processing Time
•   Data Access
•   Data Integrity
Economics
           Based on 1000 Servers available 24/7/365

Amazon Web Services                    DISA “RACE”
 Cost= $1.23 Million                  Cost= $6 Million
   Dollars per Year
                                       Dollars per Year




       * These numbers do not include the cost for local
                       infrastructure
Security
• DISA “RACE”
  ▫ Within the DOD environment and meets all preset Security needs
  ▫ Production virtual servers may be ordered for RACE test servers that you
    plan to promote to production, provided that these servers are on a
    'Path-To-Production' and pass applicable Gold Disk/SRR and Retina
    scans



• Amazon Web Services
   –   Amazon S3 provides a highly durable storage infrastructure designed for mission-critical and
       primary data storage. Objects are redundantly stored on multiple devices across multiple
       facilities in an Amazon S3 Region. To help ensure durability, Amazon S3 PUT and COPY
       operations synchronously store your data across multiple facilities before returning
       SUCCESS. Once stored, Amazon S3 maintains the durability of your objects by quickly
       detecting and repairing any lost redundancy. Amazon S3 also regularly verifies the integrity
       of data stored using checksums. If corruption is detected, it is repaired using redundant data.
       In addition, Amazon S3 calculates checksums on all network traffic to detect corruption of
       data packets when storing or retrieving data.
“Cloud” Comparison

                 Economics
                100
                 80
                 60
                 40
 Security                          Services
                 20
                                              Amazon
                  0
                                              DISA




 Requirements                Availability
Local Requirements

• Tier I helpdesk
• Physical Security
• End-User Training
Pros and Cons

• Pros                           • Cons
 •   Rapid Elasticity              •   Total lack of Ownership
 •   Inter-Operability             •   Security Control Concerns
 •   Measured Service              •   Initial Cost
                                   •   Human Capital
 •   On-Demand Self-Service
                                   •   Cultural Change
 •   Ubiquitous Network Access
                                   •   High Chance of Latency
 •   Resource Pooling
                                   •   Cloud Reliance
 •   Portability                   •   Requires Internet Connection
 •   Integration                   •   Features Could Be Limited
 •   Reduction in Cost             •   Data Lose
 •   Fast Start-up
SLA

This Service Level Agreement (“SLA”) is a policy governing the use of the Simple Storage Service under the
   terms of the services Customer Agreement between Web Services and users of the services . This SLA
   applies separately to each account using data storage. Unless otherwise provided herein, this SLA is
   subject to the terms of the Agreement and capitalized terms will have the meaning specified in the
   Agreement. We reserve the right to change the terms of this SLA in accordance with the Agreement.

Service Commitment
SLA will use commercially reasonable efforts to make data storage available with a Monthly Uptime
   Percentage (defined below) of at least 99.9% during any monthly billing cycle (the “Service
   Commitment”). In the event the vendor does not meet the Service Commitment, you will be eligible to
   receive a Service Credit.

Definitions
“Error Rate” means: (i) the total number of internal server errors returned by vendors error status
   “InternalError” or “ServiceUnavailable” divided by (ii) the total number of requests during that five
   minute period. We will calculate the Error Rate for each account as a percentage for each five minute
   period in the monthly billing cycle. The calculation of the number of internal server errors will not
   include errors that arise directly or indirectly as a result of any of the vendor SLA Exclusions.
“Monthly Uptime Percentage” is calculated by subtracting from 100% the average of the Error Rates from
   each five minute period in the monthly billing cycle.
A “Service Credit” is a dollar credit, calculated as set forth below, that we may credit back to an eligible
   vendor account.
Cost Analysis

$30

$25

$20

                                           Present Support
$15
                                           DISA
$10                                        Amazon

 $5

$0
                                                  *Cost by
      Year 1    Year 2   Year 3   Year 4          the Millions
Proposed Strategy
                   Presentation
                   and Proposal
                     Funding
                    Request for
                       Pilot




    Full Cloud                      Private Cloud
    Production                          Pilot




                                    Private Cloud
    Testing and
                                     Review and
      Review
                                      Approval




                  Implementation
                   and Evaluation
Example : Proven Case Study

With infrastructure flexibility at the
 foundation, US General Services Administration
 has found both cost savings and capability
 improvement with its new cloud platform.
Forecast
Changing our IT business model will take
a cultural change but outcome will:

• Dramatically reduce cost if we move to the cloud
• Timely access and implementation will increase
  considerably
• Data access will become world wide and provided in real
  time
• Increased Mobility
• Greatly increase scalability to current IT infrastructure
Recommendation

• Create Pilot User data storage private cloud with
  20 users by fully migrating the user storage to a
  private cloud provider
• Depending on the outcome, fully migrating the
  HQUSAREUR data storage to the private cloud
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USAREUR Cloud Computing Training Class Heidelberg 3

  • 1. Costing The Private Cloud Moving the current USAREUR user data storage into the “Cloud”
  • 2. Issues Effecting Present Day Users Examples of User Data: My Documents Pictures Data Storage MS Office Documents PDF’s “Users” PST’s OS Delivery/ App Delivery Single Image
  • 3. The “Private Cloud” = 10X Improvements for 1000 servers • Scalability • Reliability • Availability • Economics • Security
  • 4. Amazon Web Services vs. DISA “RACE” Amazon Web Services DISA “RACE” Infrastructure As a Service Infrastructure As a Service Amazon Simple Queue Service Production virtual servers may be ordered for RACE test servers that you plan to Amazon Simple Storage Service promote to production, provided that these Amazon Elastic Compute Cloud servers are on a 'Path-To-Production' and pass applicable Gold Disk/SRR and Retina scans. Production servers ordered through Amazon S3 provides a simple web services interface RACE are provisioned for a full fiscal year or that can be used to store and retrieve any amount of the remaining number of whole months in data, at any time, from anywhere on the web. It gives the current fiscal and billed quarterly. The any user access to the same highly scalable, first quarterly payment is made through reliable, secure, fast, inexpensive infrastructure that RACE with subsequent quarterly payments Amazon uses . The service aims to maximize benefits billed by your Customer Account of scale and to pass those benefits on to developers. Representative (CAR).
  • 5. Scalability • See Ease of Use • Control your infrastructure with your app • Nothing to purchase and take delivery on • Instant
  • 6. Reliability • Based on enterprise grade hardware • Design for failures: ▫ Automatically spin up replacements ▫ Use multiple clouds
  • 7. Availability • Access ANYTIME/ANYWHERE (24/7) • Quick Processing Time • Data Access • Data Integrity
  • 8. Economics Based on 1000 Servers available 24/7/365 Amazon Web Services DISA “RACE” Cost= $1.23 Million Cost= $6 Million Dollars per Year Dollars per Year * These numbers do not include the cost for local infrastructure
  • 9. Security • DISA “RACE” ▫ Within the DOD environment and meets all preset Security needs ▫ Production virtual servers may be ordered for RACE test servers that you plan to promote to production, provided that these servers are on a 'Path-To-Production' and pass applicable Gold Disk/SRR and Retina scans • Amazon Web Services – Amazon S3 provides a highly durable storage infrastructure designed for mission-critical and primary data storage. Objects are redundantly stored on multiple devices across multiple facilities in an Amazon S3 Region. To help ensure durability, Amazon S3 PUT and COPY operations synchronously store your data across multiple facilities before returning SUCCESS. Once stored, Amazon S3 maintains the durability of your objects by quickly detecting and repairing any lost redundancy. Amazon S3 also regularly verifies the integrity of data stored using checksums. If corruption is detected, it is repaired using redundant data. In addition, Amazon S3 calculates checksums on all network traffic to detect corruption of data packets when storing or retrieving data.
  • 10. “Cloud” Comparison Economics 100 80 60 40 Security Services 20 Amazon 0 DISA Requirements Availability
  • 11. Local Requirements • Tier I helpdesk • Physical Security • End-User Training
  • 12. Pros and Cons • Pros • Cons • Rapid Elasticity • Total lack of Ownership • Inter-Operability • Security Control Concerns • Measured Service • Initial Cost • Human Capital • On-Demand Self-Service • Cultural Change • Ubiquitous Network Access • High Chance of Latency • Resource Pooling • Cloud Reliance • Portability • Requires Internet Connection • Integration • Features Could Be Limited • Reduction in Cost • Data Lose • Fast Start-up
  • 13. SLA This Service Level Agreement (“SLA”) is a policy governing the use of the Simple Storage Service under the terms of the services Customer Agreement between Web Services and users of the services . This SLA applies separately to each account using data storage. Unless otherwise provided herein, this SLA is subject to the terms of the Agreement and capitalized terms will have the meaning specified in the Agreement. We reserve the right to change the terms of this SLA in accordance with the Agreement. Service Commitment SLA will use commercially reasonable efforts to make data storage available with a Monthly Uptime Percentage (defined below) of at least 99.9% during any monthly billing cycle (the “Service Commitment”). In the event the vendor does not meet the Service Commitment, you will be eligible to receive a Service Credit. Definitions “Error Rate” means: (i) the total number of internal server errors returned by vendors error status “InternalError” or “ServiceUnavailable” divided by (ii) the total number of requests during that five minute period. We will calculate the Error Rate for each account as a percentage for each five minute period in the monthly billing cycle. The calculation of the number of internal server errors will not include errors that arise directly or indirectly as a result of any of the vendor SLA Exclusions. “Monthly Uptime Percentage” is calculated by subtracting from 100% the average of the Error Rates from each five minute period in the monthly billing cycle. A “Service Credit” is a dollar credit, calculated as set forth below, that we may credit back to an eligible vendor account.
  • 14. Cost Analysis $30 $25 $20 Present Support $15 DISA $10 Amazon $5 $0 *Cost by Year 1 Year 2 Year 3 Year 4 the Millions
  • 15. Proposed Strategy Presentation and Proposal Funding Request for Pilot Full Cloud Private Cloud Production Pilot Private Cloud Testing and Review and Review Approval Implementation and Evaluation
  • 16. Example : Proven Case Study With infrastructure flexibility at the foundation, US General Services Administration has found both cost savings and capability improvement with its new cloud platform.
  • 17. Forecast Changing our IT business model will take a cultural change but outcome will: • Dramatically reduce cost if we move to the cloud • Timely access and implementation will increase considerably • Data access will become world wide and provided in real time • Increased Mobility • Greatly increase scalability to current IT infrastructure
  • 18. Recommendation • Create Pilot User data storage private cloud with 20 users by fully migrating the user storage to a private cloud provider • Depending on the outcome, fully migrating the HQUSAREUR data storage to the private cloud