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Cloud 2.0 – What Will It Take?

Chris Janz – Senior Director, Strategic Marketing

March 29, 2011

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The Cloud Imperative

70¢ per $1Spend on IT Maintenance

& Operations

85%Amount of idle computing

capacity in typical data center

1.4xGrowth of IT professionals in

the next 10 years

44xGrowth of information in the

digital universe in the next 10

years

80%Amount of idle capacity in a

storage system

P&C as % of initial CAPEX

10%

75%

Escalating costs, complexity and inflexibility of traditional IT

infrastructure is creating a

Competitive Disadvantage Effect

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Cloud 1.0

Internet

Resiliency,Assured Proximity Provider

Internet

Optical

Provider

SaaS/AaaSPaaSIaaS

2010 Cloud Service Revenues

Business Process Services $57.9B

Application Services (SaaS) $7.6B

PaaS $0.1B

IaaS $2.6B

“What percentage of applicationswould you be comfortable sourcingfrom an external hosting services orhosted application provider?”

~ 75% of enterprises polled said either none, or 1-20%

Gartner – Forecast: Public Cloud Services,Worldwide and Regions, Industry Sectors, 2009-20142 June 2010

TheInfoProIT Roadmap Conference and Expo14 September 2010

Yet…

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Taking It Mainstream: Cloud 2.0

If you don’t want to draw an app from the cloud …

… then you want to run it on your own infrastructure.

The Cloud 2.0 challenge:

Putting “your own infrastructure” into the cloud

“Enterprise-Class IaaS”

Enterprise data center infrastructure, extended seamlessly into the cloud:

- on–demand and pay-per-use

- no infrastructure operational impacts

- no infrastructure performance impacts

- no infrastructure security impacts

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The Analysts Agree

� “IT organizations are stepping up their examination and exploration of cloud infrastructure. A small but growing number are beginning to to put cloud infrastructure components into their more mission-critical IT infrastructures…”

� “Enterprises are looking at cloud solutions that can integrate mission-critical applications in their data centers and private clouds, in a way that provides the processing flexibility of public cloud. Thus the hybrid is becoming the model of choice…”

�

Gartner – Forecast: Public Cloud Services,Worldwide and Regions, Industry Sectors, 2009-20142 June 2010

BTC Logic Ranks: Top Ten Cloud CompaniesQ2 2010

2009-2014 Cloud Service Revenue CAGR

Business Process Services 18%

Application Services (SaaS) 29%

PaaS 45%

IaaS 49%

Gartner – Forecast: Public Cloud Services,Worldwide and Regions, Industry Sectors, 2009-20142 June 2010

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Cloud 2.0 – Driving a New Infrastructure

Cloud 1.0

Internet

Resiliency,Assured Proximity Provider

Provider

Enterprise

Enterprise

Hybrid Cloud (Cloud Bursting)Virtual Private CloudInfrastructure Load Balancing

Internet

Optical

Optical

Provider

= “Cloud Backbone”

SaaS/AaaSPaaSIaaS

Cloud 2.0 Internet

The Key, New Networkfor Cloud 2.0

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Traffic on the Cloud Backbone – Machine Mobility (I)

• Move to new data center for geographic re-location

• Workload balancing of hot spot to less used capacity

• Application migration to higher capacity server• ~ 500 VMs @10 GB, 20 TB storage = 25 TB

• Move to new data center for geographic re-location

• Workload balancing of hot spot to less used capacity

• Application migration to higher capacity server• ~ 500 VMs @10 GB, 20 TB storage = 25 TB

Bulk VM Migration

• Take advantage of processing power for follow sun/moon locations

• End of period, peak load level need

• Burst capacity need

• ~ 100 VMs @ 5 GB, 10 TB storage = 10.5 TB

• Take advantage of processing power for follow sun/moon locations

• End of period, peak load level need

• Burst capacity need

• ~ 100 VMs @ 5 GB, 10 TB storage = 10.5 TB

Frequent, Periodic VM

Migration

• Disaster avoidance

• Reached server capacity limit, need immediate off-load

• Immediate new project

• ~ 50 VMs @ 5 GB, 1 TB storage = 1.25 TB

• Disaster avoidance

• Reached server capacity limit, need immediate off-load

• Immediate new project

• ~ 50 VMs @ 5 GB, 1 TB storage = 1.25 TB

Unplanned VM Move

• Change hardware platform (e.g. Sun to HP)

• ~ 10 VMs @ 2 GB, 500 GB storage = .52 TB

• Change hardware platform (e.g. Sun to HP)

• ~ 10 VMs @ 2 GB, 500 GB storage = .52 TB

Occasional VM Move

Data Time

Amount of …

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Traffic on the Cloud Backbone – Machine Mobility (II)

Bulk VM Migration

Frequent, Periodic

VM Migration

Unplanned VM Move

Occasional VM Move

Data Time

Amount of …

Largest job takes days even with fast networks

Small job still needs 40-100 Mbps network to get done in less than two days

+

+

+

+

Value of fast network to quicklyrespond to urgent needs

Note: assuming 80% of rated speed, no bw degradation

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Defining the Cloud Backbone

� Must support rapidly scaling machine-to-machine traffic with:

Large bandwidths, cost-effectively

High and assured connectivity quality

Low, “managed” connectivity latency

Connections from a “pool of bandwidth” in response to transient drivers

� The ideal paradigm: Dynamic Packet Optical Infrastructure

Large bandwidths at lowest cost: leverage OTN, optical Layers

Best connection quality, latency: leverage OTN, optical Layers

Bandwidth “in a pool” – OTN, optical core mesh

“Cloud OS-driven” connections from the pool

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DC Ethernet & Storage Network

DC Ethernet & Storage Network

Cloud Backbone – Ciena Reference Architecture

CBE - Cloud Backbone Edge

CBA - Cloud Backbone Aggregation

CBC - Cloud Backbone Core

Enterprise Data Center

Enterprise

Office

CBECBE

DC Ethernet & Storage Network

CBE

AccessConnection Any Metro

CBC

CBC

CBC

CBC

CBA

Provider Data Center CBE/

CBA

Provider Data Center

CBE/CBA

CBC

Cloud Backbone Operations Controller

Backbone Connectivity Operations

Enterprise Cloud Operating System

Enterprise DC Infra Operations

Provider Cloud Operating System

Cloud InfraServices

NetworkServices

Provider DC InfraOperations

CBC

Ethernet

OTN / λλλλ

Dynamic OTN / λλλλ

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Come See It Soon!

MW11 – Cloud Network Elasticity

TMForum World Congress, Dublin, May 23-26, 2011

Demonstrate an enterprise-class hybrid cloud computing service and infrastructure.

Run a real, “tier 1” enterprise computing application driving burst demand into the cloud.

Self-serve, on-demand; full order-to-cash process.

Fully coordinated, dynamic infrastructure resources – specifically including a dynamic infrastructure provider

network as cloud backbone.

Load balancing among provider data centers.

Deutsche Telekom T-Systems CienaCommonwealth Bank of Australia InfonovaZimory Layer 7

TMForum Catalyst Project

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Tackling Cloud 2.0 – Attacking the Big CIO $$$

Focus now on the design and operationalization of the

Cloud Backbone

Lay a dynamic and scalable infrastructure foundation for

Cloud 2.0 services

Service providers must:

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Thank You!