why 85% of workloads are not on public cloud, and why they will be

William Toll (@utollwi),

VP Marketing - US, ProfitBricks

June 9 2015 Cloud Expo East

#CloudExpo

Why 85% of workloads are not on the public cloud, and

why they all will be in the cloud by 2020

•  NJ Na%ve, living in Berlin, Germany

•  15 Years working for Internet Infrastructure Companies

•  B2B Product and Marke%ng leader for direct and channel based services for Internet companies

•  Former Employers: ValueWeb, Affinity Internet (now Hostway), NTT/Verio, Intermedia.NET, NaviSite and YoTaa

•  Ac%ve Speaker, Blogger, Community Member and Social Media Networker

WILLIAM TOLL, PROFITBRICKS

William Toll @utollwi

Painless Cloud Infrastructure

•  Founded in 2010, 135 Employees (May - 2015)

•  Global Cloud Computing Service – IaaS (Infrastructure as a Service) – operations in Berlin/Germany, San Antonio/Texas and Boston/MA

•  $38M in funding to date

•  No legacy infrastructure, hardware or provisioning systems

•  Focus on delivering pure Painless Cloud Computing Infrastructure - IaaS services with market leading price/performance ratios

•  Strong roadmap with additional DC’s and Innovative Cloud Computing Infrastructure Services

ABOUT PROFITBRICKS



WE‘VE COME VERY FAR IN IT


1982

1994

2006

IT TRANSFORMATIONS OF THE PAST

We found a need for IT for everyone

We networked the office

We moved from client server to the web browser

THE EVOLUTION OF IT


Compe%%on among IT vendors has always been intense. (Oracle, July 2001)

ENTERPRISE IT OF THE PAST

Digital Equipment Compaq Microsoft Word Perfect Seibel Ashton-Tate PeopleSoft

SAP Lawson JD Edwards Kronos Baan Sage Palm

Novel Netware Netscape Navigator Cold Fusion Borland Delphi Informix

Some vendors transform, others get acquired and some die.


ENTER THE CLOUD

Cloud Compu%ng Arrives in mid-‐2000s


CLOUD’S ROOTS


Virtualiza>on •  Free BSD Jails and some basic virtualiza%on/container technologies

•  1999 VMware worksta%on launches

•  2003 Xen open-‐source virtualiza%on pla_orm is born

•  2007 Virtualbox

Early Automated Infrastructure •  Hos%ng providers like Rackspace and 1&1

•  Enterprise hos%ng pla_orms leveraging Savvis or MediaTemple

•  Amazon’s AWS in 2006

CLOUD COMPUTINGS’ SAAS


Early growth of Cloud Compu%ng was aTributed to SaaS: Email (Office 365, Google Apps), CRM (Salesforce), Payroll (ADP)

CLOUD WASHING

The cloud compu%ng label became ubiquitous in 2010 and remains today


PEAK DATA CENTER


There are 8.6 Million Data Centers, peaking in 2017 and then will decline. IDC 2014

PEAK DATA CENTER


“Over the next five years, a majority of organiza%ons will stop managing their own infrastructure” IDC 2014

PEAK SERVER


Both IDC and Gartner think growth in the server market is being driven primarily by investment in hyperscale data centers. DataCenterKnowledge Dec 2014

PEAK COLO


While retail coloca%on revenue is growing worldwide by 10% in 2015…..


In NA -‐ 60 percent (revenue is) from service providers and just under 40 percent from enterprise. Synergy Research 2014

PEAK COLO

PEAK LEGACY IT

While sooware rarely comes in a box today, the vendors of today’s apps are shioing drama%cally.


MIX OF APPS MOVING IS CHANGING

88 percent of buyers preferred on-‐premise solu%ons in 2008, 87 percent preferred cloud solu%ons in 2014. Everest Group


A DELAY?

Why has cloud compu%ng (non-‐SaaS) taken so long to spread to the other 85% of IT?


THE HYPE & THE SHINY BALL


Developers and startups are always upgrading their toolsets-‐ because they can.

CLOUD IS ALL WE HEAR

Cloud Compu%ng growth among startups and developers soared from 2009 to 2014


IN HOUSE REMAINS KING

Companies deliver an average of only 18% of their workloads from the cloud today. (Bain & Company 2015)


CLOUD EARLY ADOPTERS


Innovators and Early Adopters Drove Cloud Compu%ng’s Early Years

Cloud Compu>ng 2006+

THE DELAY: WE WERE NOT READY

Outages

Security

Early Cloud Complexity and Inflexibility


C-Level Fear

Migration & Adaptation

WHY SUCH A BIG GAP


Developers vs. Tradi%onal IT

2014: GENERAL IT WANTS IN

World IT Cloud Infrastructure Market is Growing by 21% year over year to $32 billion in 2015, accoun%ng for approximately 33% of all IT infrastructure spending, which will be up from about 28% in 2014 IDC April 2015


CLOUD 2014: EARLY MAJORITY ARRIVES


Innovators and Early Adopters Drove Cloud Compu%ng’s Early Years

Cloud Compu>ng 2006-‐2014

2014 & 2015: GENERAL IT IS NOW READY

•  Security •  Budgets •  C-‐Level Acceptance •  Early SaaS Projects Had Great Results •  Cloud Compu>ng Has Matured and now applica>ons

can be moved to the cloud with adap>on or re-‐wri>ng them

•  DevOps Processes & Tools Maturing


CLOUD SECURITY

Cloud Security concerns are decreasing rapidly. RightScale 2015


IT BUDGETS IN 2015

IT Budgets are back in growth mode. Computerworld Survey 2014


CLOUD MIGRATIONS


Moving applica%ons to the cloud is far easier with new and more mature Cloud Compu%ng Infrastructure.

1st Genera>on Cloud Compu>ng PlaXorms

2006-‐2014 2nd Genera>on Cloud Compu>ng PlaXorms 2014+

C-LEVEL & LOB VS. IT

C-‐Level Pushing cloud for agility, and innova%on with and against IT. Avanade 2014


GENERAL IT’S CHALLENGES

•  People (Training) •  Processes (Change & Documenta>on) •  Finance (CAPEX vs. OPEX) •  Cloud Migra>on Planning & Priori>za>on •  DevOps & Automa>on


PEOPLE

Manage expecta%ons, assess team readiness and schedule training


PROCESSES

Cloud migra%on planning is cri%cal to a successful cloud transi%on, plan accordingly.


FINANCE

The CapEx to OpEx transi%on difficulty is compounded by complex pricing and the changes in deprecia%on and financing.


CLOUD MIGRATION PLANNING

Priori%ze migra%ons based on Applica%on Architectures, Applica%on Lifecycle, Applica%on licensing, Data Security, ROI on Migra%on


MONITORING & AUTOMATION

APIs and the tools from the ecosystem are mul%plying and becoming more capable and easier to implement as they mature.


WHAT TO LOOK FOR IN A CLOUD PROVIDER

•  Training: •  Easy to use cloud and on-‐premise like servers, storage &

networks

•  Change & Document: •  Architect & Support

•  CAPEX vs. OPEX: •  Easy to understand pricing

•  Cloud Migra>on Planning: •  Which apps go first

•  DevOps & Automa>on: •  APIs & Tools


RALLY THE TEAM

Be sure to have a top down and boTom up approach – the Cloud offers an opportunity to transform IT.


Public cloud pla_orms will rival tradi%onal infrastructure deployments by 2020 (Forrester April 2014)

CLOUD IN 2020


Cloud 1.0 Architecture

●  Born from dedicated servers & VPS

●  Server based, over subscribed

●  Designed around slow Ethernet network technology – 1 or 10 Gb/s and often throttled

Cloud 2.0 Architecture

InfiniBand

Dedicated CPU Cores

Dedicated RAM

Redundant Storage x2

80 Gb/s 80 Gb/s 80 Gb/s

PAINLESS CLOUD INFRASTRUCTURE


Migration without adaptation – ProfitBricks cloud infrastructure behaves like physical hardware with all the advantages of the cloud

No learning curve needed– ProfitBricks lets existing teams’ knowledge sets and processes be used to achieve rapid success with the cloud

24/7 Local Phone support – USA and EU based Cloud Architects and SysAdmins always on standby

Price/Performance Guarantee: “We guarantee that any workload deployed on ProfitBricks will cost less than the same workload running at the same performance level on the IaaS platforms of Amazon, Google or Microsoft.”

PROFITBRICKS: PAINLESS CLOUD INFRASTRUCTURE

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PROFITBRICKS DATA CENTER DESIGNER


THANK YOU + QUESTIONS

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VP, Marke%ng ProfitBricks USA Phone: 866-‐852-‐5229 TwiTer: @utollwi


why 85% of workloads are not on public cloud, and why they will be

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