May 19-20 l Washington, DC l Omni Shoreham

Cloud Computing, Virtualization, and on-demand Services: Trends in the Managed Hosting Space

Daniel Golding

Vice President, Tier 1 Research

Managed Hosting Technology Trends

Managed Hosting Services Evolution

Infrastructure & OS level

Application layer

management

ManagedVirtualization

PAAS, SaaS Provisioning,Integration,

billing

Network& Datacenter

Time and Revenue growth push Managed Hosting Providers upward and outward

eDiscovery Managed Storage

DRProtection Utility

ComputingOn-Demand

Storage

ManagedSecurity

ManagedMail

Amazon S3

Nirvanix

Layered Tech

Evolving Technologies

Evolving Technologies

Managed Database

VMWare Parallels Denali XEN MS Trango Sun

Amazon EC2

Google AppEng

Mosso

Verizon VUC

Colocation

Hosting

Shared Hosting

Managed Hosting

Evolution of Managed Hosting Sector

Major technology Trends Investment in Managed Services

Application Management – CRM, SAP, messaging SaaS facilitation – billing and back-end, app-exchange Managed security, compliance, e-discovery, consoles Managed Database, storage, load balancing, DR

Infrastructure and Cloud Computing Virtualization, Utility computing, on-demand storage Not application isolation nor desktop virtualization Platforms as a Service – hosting the applications/SaaS

Range from social networking, to CRM-centric, to functional

Hypervisor Virtualization Technologies

Bare Metal/Hypervisor/x86Server virtualization Best for dev/testing, virtual desktop, legacy server

consolidation Virtualize access to hardware Each VM has a guest OS less server sprawl

VMARE ESX Citrix XENserver (Linux) Parallels Server Microsoft Hyper-V Trango Sun xVM

Virtual Machines

Bare Metal Virtualization Technology

Platform As a Service

AppsPre -

Production Apps

Virtual Machines

SAAS SAAS

X86 Hardware

Guest OS Guest OS

OS Virtualization Technologies

OS Virtualization Users run just one Kernel/OS at

a time – virtualize access to single OS – meaning less OS sprawl

Good for well powered datacenters, sensitive and numerous apps, workloads, SaaS

Quick provisioning Parallels Virtuozzo

Containers Sun Solaris Containers OpenVZ Unix chroot command Linux V-Server

Operating System Management

OS Virtualization Technology

Platform As a Service

AppsPre -

Production Apps

Virtual MachinesVirtual Machines

SAAS SAAS

X86 Hardware

Evolution of Managed Hosting Sector

End-userApplication

Layerutilization

Traditional

Managed Hosting Services

AppsPre-

Production Apps

Standalone SaaS

SAAS

Virtualization Technology

Utility Computing, On-Demand Storage, PAAS

Integrated SAAS

X86 Hardware

Operating System Management

Middleware

Platform As a Service

AppsPre-

Production Apps

SAAS SAAS

c Data

SAN/NAS/DAS

Operating System Management

Virtualization Technology

Platform As a Service

AppsPre-

Production Apps

Virtual MachinesVirtual Machines

SAAS SAAS

X86 Hardware

c Data

SAN/NAS/DAS

Virtualization Trends

Virtualization is helping to expand cloud computing Virtualization for on-Demand Storage Virtualization for Utility Computing

includes authorization services for particular users or apps

mapping dependencies between services enforcing policies for how services can be

used monitoring performance levels

Automation features Centralized consoles for orchestration provisioning, billing and multi-platform management

VIRTUALIZATION: USER PROFILES

VMware users offering virtual hosting products Verizon Bus., BT AT&T, IBM, Savvis, Terremark, Rackspace

shared infrastructure, Utility computing, cloud computing Struggling with flexible pricing, automation upscale/downscale

SunGard data protection and disaster recovery

Parallels - automation tools and virtualization Rackspace, The Planet, ServerBeach, Dedipower, Hostway

Fewer licenses in datacenters, but many desktop users

UK-based Xcalibre – Flexiscale: utility/shared infrastructure startup Enigmatec – policy based process automation

Virtualization & Cloud Computing

Virtualization in full swing Can be dedicated virtual

server Can be shared grid Automation is key component

Cloud Computing Is a direction rather than

an absolute Managed Hosters are

gradually transitioning to new services

Gap exists between commercial and technical offerings

AppsPre-

Production Apps

Standalone SaaS

SAAS

Virtualization Technology

Utility Computing, On-Demand Storage, PAAS

Integrated SAAS

Is this real or perceived?

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CLOUD or GRID COMPUTING?

Not to be confused with SaaS/Apps GoogleApps, Windows OfficeLive, Zoho

run on top of underlying platforms

Grid has many definitions Network of computing clusters whose resources can be

used in parallel; as needed; as a virtual super-processor Intel, Compaq, Sun, IBM - university and medical projects

Cloud Computing Tends to be much more commercial in nature

On demand infrastructure for small/med apps SLA driven Pay by the drink

Cloud Computing Defined

Cloud Computing is highly available infrastructure Public Infrastructure composed of computing power,

storage, security Platforms, software, applications, services reside on

top Immediate availability, ordering, provisioning on the web

Easier and cheaper than deploying it in-house Easily manageable from a single web interface

Partition, synchronize, distribute, secure, store data/apps

Run from centralized deployments/datacenters Supports Platforms as a Service

Real-time accessible and usable across the web Many (often smaller) applications run off more

consistently available resources

Cloud Computing Defined

Cloud Computing: attractive to businesses Pay by the drink - Credit card billable SLA driven

defined response times, immediate recreation of instances, consistent service for all users

Providing easy integration with back-end services Should always be available and self-healing Unobstructive/transparent: client only sees end workload Multi-tenant infrastructure with complete security/privacy Linearly scalable on the fly (up/down) – cost reducing

Note: Enterprise clouds are not included in this discussion

Utility Computing & On-Demand Storage

Two developer driven components of the Cloud Utility computing

Range from minute to monthly provisioning/billing Target is web based ordering + instant provisioning

Should be pay by the drink & include an SLA Should be desktop mountable & immediately available Should have back-end storage and other web services

On-demand Storage Range from Managed hosters offering on-demand

SAN,NAS and DAS - orders possible with seasonal billing Back-up/Protection wins when on-demand storage fails

UTLITY COMPUTING PLATFORM

Amazon EC2 (and Amazon Web Services) Believe cloud is a pricing scheme that packages

storage, compute capacity, database, queuing, messaging services and payment methods to developers

2006 launched elastic cloud computing (EC2) Uses Xen hypervisor for virtualization Supports open Solaris but not windows (no licensing) Elastic Migration toolkit for migrating virtual images

to remote Amazon EC2 Rely on API’s for developer apps User dictates hard drive, memory, and charged per

compute hour Accounting system tracks and manages virtual

resource usage

UTLITY COMPUTING PLATFORM

EC2 wraps nicely into other Amazon Web Services Flexible payment services (FPS)

parameters that govern payment conditions Only in US$ currently – need worldwide currency’s

Simple DB covers 80% of DBA needs - store, index, query a

system Simple queue Service (SQS)

whenever 2 computers need to talk in an asynchronous manner – they can be loosely coupled

Simple storage Service (S3)

Animato (Amazon poster child) Launched on Facebook: 25,000 new users an hour From 50 to 3,500 servers in 2 days (for (750,000 users)

UTLITY COMPUTING: COMPANY PROFILES

SAVVIS' Utility Compute App. platform delivering availability, scalability, flexibility Blade-based servers dedicated to a specific customer Multi-tenant chassis provides provisioning within 5 days Production servers have access to pool of failover servers

Joyent (Startup) Free hosting to Facebook app developers via direct link

Mosso (A Rackspace company) Supports Linux dev languages, Windows platforms, mail Scalable storage, bandwidth, utility compute and requests

UTLITY COMPUTING: COMPANY PROFILES

XCalibre (UK based) Dedicated hoster with Xen based Flexiscale – utility

billable infrastructure for ISV’s – provisioning in <1 min

Sun’s Network.com Pay per use compute utility, with access to published

apps

EMC’s recently launched cloud service SAP – software available on EMC storage over the web

IBM – Blue Cloud Developing hardware/software/service for finance market

AT&T, Verizon Business, Navisite 5 day provisioning for business (security/backend tied in)

ON-DEMAND STORAGE FOR DEVELOPERS

Amazon Simple Storage Solution (S3) Competes on price and brand - Works well with AWS’s Includes desktop backup software, file sharing, flash drive UK 20% more price. Charges for GET/PUT/LIST. Accessible thru APIs (REST and SOAP) No credit cards services. No VMWare support. DDOS attack in Feb.

Nirvanix Charges more, higher-quality offering, better features Includes desktop backup software, file sharing, flash drive Popular Internet Media File System -transcoding media and image

manipulation + good search capabilities New funding = European and Asian expansion data accessible to developers thru APIs (REST & SOAP)

ON-DEMAND STORAGE FOR DEVELOPERS

Layered Technologies (DynaVol) Supplemented by utility computing No credit card sign-up. Aggregated fixed monthly fee. Strong security like the others. NB: Mounts as a File share on a Mac, Linux or BSD

Client Uses existing industry control panels to ftp backup files Not facilities based; Narrower footprint

Rackspace CloudSF In beta; No SLA. Renown for support. Low pricing No gigabyte storage. Access data via API (not http) No file system access = non mountable on desktops. Similar to S3. Good access speeds within datacenter..

ON-DEMAND STORAGE FOR OTHERS

Savvis Utility Storage SAN, NAS, 50GB increments, Utility Backup and Vaulting

SunGard Availability Services “always on” RAID-protected SAN

AT&T, Verizon Business, SunGard, Peer1, etc. Supports, install, configure, manage, monitor the

system All offer on-demand storage from a commercial pricing

perspective. Orderable days/weeks in advance.

EMC - acquired Mozy for backup services Google – back-up services for desktop users Yahoo - elementary briefcase offering

Where are we today

7/10

Storage on Demand

6/10

Utility Computing

8/10

Virtualization

5/10

Cloud ComputingPAAS

6/10

FUTURE WINNERS

Those that virtualize or offer virtual hosting

Those Service Providers that can offer Cloud Services to SMB’s, Enterprises, ISV’s, SaaS provider and the like Fully integrated Platform as a Service (security,

analytics, billing, DB, OS, storage, DR, compute power, troubleshooting of apps) to SaaS, ISVs, SMBs, Enterprises

Or niche specialists in a raw component thereof On Demand Storage to developers and beyond Utility Computing to developers and beyond Other (mobile or VoIP platform)

Questions ?