Building Great Companies on the Cloud

Roman StanekFounder, CEO Good Data

Building Great Companies

on the Cloud

Promise

This presentation contains no “every

cloud has silver lining” joke:-|

Who am I

Roman - "Stan" at Starbuck's

Technologist

Entrepreneur (NetBeans, Systinet)

Blogger (roman.stanek.org)

Czech

What is happening to computing today is a revolution, the biggest upheaval since the invention of the PCin the 1970s.

Nicholas Carr

"It's stupidity. It's worse than stupidity: it's a marketing hype campaign

Richard StallmanFounder, Free Software

Foundation

But we all struggle with the cloud definition...

Most of all the graphics artists...

Definition:Clouds are hardware-based services offering compute, network and storage capacity where:

Hardware management is highly abstracted from the buyer

Buyers incur infrastructure costs as variable OPEX

Infrastructure capacity is highly elastic (up or down)

McKinsey & Company

No, you cannot install cloud on your notebook.

Security & control

By a 5‐to‐1 ratio, companies trust internal

IT systems over cloud‐based technologies due to

fear about security threats and loss of control

of data and systems.

Avanade Inc.

They are right...Streamload: On June 15, 2007 system administrator's script accidentally misidentified and deleted "good data" along with the "dead data" of some 3.5 million former user accounts and files.

Or are they?

10 U.S. airports with the highest weekly frequency of laptop loss

LAX Los Angeles

MIA Miami

JFK New York

ORD Chicago

EWR Newark

0 300 600 900 1200

750

825

900

1,000

1,200

Airport Insecurity: The Case of Missing & Lost Laptops, Ponemon Institute LLC

This get scary...Did not protect sensitive information contained on laptop

Worry about losing their laptop

Laptop containsconfidential company information

Data on laptop is not backed up

0 0.175 0.35 0.525 0.7

42%

53%

57%

65%

Airport Insecurity: The Case of Missing & Lost Laptops, Ponemon Institute LLC

Most likely causes of data breach?

Negligent insiders

Outsourced data

Malicious insiders

Social engineering

Hackers

0 0.2 0.4 0.6 0.8

1%

2%

26%

42%

75%

2008 Study on the Uncertainty of Data Breach Detection,Ponemon Institute LLC

IT environment where data breaches occur

Off-network devices

Networks

Mainframes

Paper files

Backups

0 0.15 0.3 0.45 0.6

18%

39%

41%

50%

58%

2008 Study on the Uncertainty of Data Breach Detection,Ponemon Institute LLC

Ability to detect the loss or theft of confidential

information

Very confident ConfidentSomehowconfident Not confident Unsure

18%

31%

25%

16%

10%

2008 Study on the Uncertainty of Data Breach Detection,Ponemon Institute LLC

Amazon Security/SLAs

Multiple redundant sites

SAS70

Amazon EC2 SLA - 99.95%4 hrs, 22 min/year

Amazon S3 SLA - 99.9%

Control: Plenty of startups solving this problem already

Cloud or No Cloud?

For SMBs, data is safer in the cloud

Secure, auditable, fully compliant

Pick your cloud provider carefully

Technology

Acronyms don’t matter:

Caches, bloom filters, bitmap indexes, column stores,

distributed key/value stores and document databases

MapReduce law:

If It Can Be Done in Parallel, It Will Be

ACID -> BASE

Traditional approaches don’t scaleBASE - basically available, soft state, eventually consistent:

BigTable, SimpleDB, Cassandra, Dynamo

GoodData: Innovate vs. leverage?

Processing Power Cloud makes ROLAP approach possible

Elastic Scale IT builds for peak load, we don’t have to

Multi-TenancySingle instance across 1000s of customers

StatelessMassive load balancing (shared nothing)

TechCrunch Effect

Public cloud classes

AWS MS Azure Google AE

CPU

Storage

Network

x86 .Net Predefined framework

EBS, S3, SimpleDB

SQL, Azure store

BigTable

Declarative Automatic Fixed

Cloud APIs

True SOALoosely coupled - REST, AtomEncapsulate cloud services:

Control APIs

Data APIs

Application Functionality APIs

Open Cloud Manifesto

Prevent vendor lock-in“or”

Limit innovation

Cloud economics

If you want to change the game, change the economics of how the game is played

Alan M. Webber

Startups in the cloudInfrastructure labor savings

No CAPEX: Less equity goes to VCs

Unpredictable demand (up and down)

Succeed (or fail) faster

$500k to start technology company

Big bets aren't as big anymore

Easier for startups to adapt to shifts

Level playing field for startups

IT vs. Clouds

Losing their monopoly on the infrastructureIt’s all about economics

1 email message

$0.0001

Fixed pricing

Most widely used pricing

No supply/demand

Simple, predictable

AWS, Google App Engine:

CPU, Storage, network traffic

Reserved instance price (AWS):

“I have 10 instances running 24x7”

Spot price/future price:

“I want 1,000 instances at the end of the quarter”

Off-peak pricing:

“Run my MapReduce app 10 hours every day”

Variable pricing

Cloud providers

Economies of scale

Utilization and efficiency

SLAs

Question: Long-term viability?

Private cloudsViolate #2 of our cloud definition:

Buyers incur infrastructure costs as CAPEX

Virtualization on top of traditional enterprise IT stack

Encapsulation of IT infrastructure

Scale?

Economies of scale

Technology Medium-sized DC Very Large DC Ratio

Network

Storage

Administration

$95 per Mbit/sec/month

$13 per Mbit/sec/month 7.1

$2.20 per GByte / month

$0.40 per GByte / month 5.7

140 Servers / Administrator

>1000 Servers / Administrator 7.1

HAMILTON, J. Internet-Scale Service Efficiency. In Large-Scale Distributed Systems and Middleware (LADIS) Workshop (September 2008)

5 Public clouds+500 Private clouds

505 Clouds in 2015

Business impact

Winners

Google, Amazon.com

Cisco

SaaS vendors

Losers

Big server vendors

(HP, Sun, Dell)

Monolithic app providers

Microsoft

Real winners

Innovation

SMBs, Startups

The little guy wins

Good Data: On Demand Business Intelligence

Cloud + Web 2.0 metaphors

Flickr for Data

Simplicity & Collaboration

Company status30 employees

Development in Prague

Sales & marketing in San Francisco

Funded by industry luminaries

www.gooddata.com

Thank you!