Navigating the World ofCloud Computing

Mike KleinPresident, Online Techwww.onlinetech.com

Growth in Cloud Computing

Source: Tier1 Research

Cloud Computing: Threat or Opportunity?

Key Business Drivers1. Application Availability2. Disaster Recovery3. Speed (Time to Market)4. CapEx Free IT5. Lower Total Cost of Ownership

What Does This Mean?Real Life Examples:

• Survival of a server failure• Zero maintenance windows• Complete offsite disaster recovery in hours• Spin up new SaaS servers in minutes• Testing new releases on production server snapshot

Cloud Computing Spectrum PrivateCloud

PublicCloud

HybridCloud

ManagedCloud

Cloud Computing Spectrum PrivateCloud

PublicCloud

HybridCloud

ManagedCloud

• Dedicated/Single Tenant

• High Availability Model

• Monthly Pricing

• Dedicated/Auditable Security

• Compliant – SOX, PCI, HIPAA

• Complete Architectural Control

• Plug & Play

• One-Click DR (Disaster Recovery)

• Multi-Tenant

• Cost-Driven Utility Model

• Hourly Pricing

• Limited/Shared Security

• Compliance?

• No Architectural Control

• Programming APIs

• Extensive Programming DR

Private CloudSingle Tenant Dedicated Cloud• High Availability (N+1) Architecture

– Zero maintenance windows• Automatic failover & resource balancing• Dedicated data & network security• Hybrid with non-virtualized servers • PCI, HIPAA, SOX Compliance

Drawbacks:• No hourly pricing, API access• Less elastic than public clouds

SAN

Dedicated DB Server

Internet

Public Cloud (e.g. Amazon)

Compute as Utility Model• Shared, non-redundant hosts • Local, non-persistent storage• Configure & pay online• Pay by the hour with “spot demand”• API access

Drawbacks:• Availability often not guaranteed• Complex pricing model• No failover - If host crashes, data is lost• Not PCI or HIPPA compliant

Internet

Amazon EC2 Cloud is most likely running on lousy hardware... an instance

mysteriously crashed loosing data

kaczoanoker on Twitter

Managed Cloud

More Secure Multi-Tenant Option• “Slice” of a High Availability Private Cloud• Automatic failover & resource balancing• Dedicated data & network security• Hybrid with non-virtualized servers • PCI, HIPAA, SOX Compliance

Drawbacks:• No hourly pricing, API access• No architectural control vs. private cloud

SAN

Internet

Which Cloud is Right?PrivateCloud

PublicCloud

HybridCloud

ManagedCloud

• Large Enterprises

• Single Tenant Req’t

• Highest Security Req’t

• PCI/HIPAA/SOX

• Need Arch Control

• I/O Intensive Apps• Integrate Legacy Systems (w/ Colo)• Critical + NonCritical Apps

• Enterprise Apps

• Enterprise Security

• PCI/HIPAA/SOX

• SaaS applications

• Test & Dev Systems

• Short Life Cycle

• Noncritical Apps

• Compute Intensive

• Highly Elastic Apps

2011 Cloud Trends

2011 Cloud Trends

1. More Confusion (Not Less)2. Computing as a Utility on the Low End3. Managed Clouds Address Application Availability4. Enterprises Adopting Private Clouds5. Bar is Raising for Hosting Standards6. Security & Compliance7. Disaster Recovery

More Confusion (Not Less)

Opportunity: Educate Your Clients

Low End Compute as UtilityPublic Cloud Computing• Amazon Leading Change• Designed for Commodity Pricing

– Non-Redundant Hosts– Non-Persistent Storage – No Failover/Availability

• Programming req’d for availability & DR• Complex Costing Model• Spot Pricing Market

Opportunity: Programmers & System Designers

Managed Cloud EmergingManaged Cloud Computing• High Availability, N+1 Infrastructure• “Slice” of a Private Cloud

– VMware Enterprise version– N+1 Hosts, Storage & Security– Automatic Failover

• Full Mix of Managed Services

Opportunity: Differentiate vs Commodity

Enterprises Adopting Private CloudsSingle Tenant, Dedicated Private Cloud• Yankee Group: 67% Prefer Private Cloud• Security & Compliance Are Major Drivers• More Cost-Effective for Most Enterprises• Complete Architectural Control• Dedicated Data & Network Security• PCI, HIPAA, SOX Compliance

Opportunity: Enterprise Computing for SMB

Raising the Bar on Hosting Standards• Auditing Standards Are Getting Tougher

– SAS 70 -> SSAE 16 -> SOC 2/SOC 3– SOC 2/SOC 3 Separates Men from Boys– HIPAA & PCI

• Expect Shake Out in Public Cloud Market– 100’s + Amazon, Google, Microsoft, Rackspace …

• Regional Players Lead in Private & Managed Clouds– Hands-on, Face-to-Face Support– High Trust Business

Security & Compliance• Security Concerns Are Significant

– 51%: Security #1 Reason Not to Cloud

• Highlighted by Recent Breaches– Google, Sony– $1.5M/incident HIPAA fines

• #1 Driver to Private Cloud– Single Tenant, Dedicated Network & Data Security– SOX, HIPAA & PCI are Key Drivers

Opportunity: Solve HIPAA, SOX, PCI Pain

Disaster Recovery

Conventional Backup & D/R Trade-offs

The Cloud Shifts the D/R Curve

Navigating the World of Cloud Computing

• Which Cloud is Right for Your Clients?– Private Cloud– Public Cloud– Managed Cloud

• Key Issues to Consider:– Security– Compliance– Availability– Disaster Recovery

Navigating the World ofCloud Computing

Mike KleinPresident, Online Techwww.onlinetech.com