CloudExpo Cloud Computing IaaS Growth Details 2015 - Why 2014 Was A Turning Point

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 Native, living in Berlin, Germany

• 15 Years working for Internet Infrastructure Companies

• B2B Product and Marketing leader for direct and channel based services for Internet companies

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

• Active 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


Competition 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 Computing Arrives in mid-2000s


CLOUD’S ROOTS


Virtualization• Free BSD Jails and some basic virtualization/container technologies

• 1999 VMware workstation launches

• 2003 Xen open-source virtualization platform is born

• 2007 Virtualbox

Early Automated Infrastructure• Hosting providers like Rackspace and 1&1

• Enterprise hosting platforms leveraging Savvis or MediaTemple

• Amazon’s AWS in 2006

CLOUD COMPUTINGS’ SAAS


Early growth of Cloud Computing was attributed to SaaS: Email (Office 365, Google Apps), CRM (Salesforce), Payroll (ADP)

CLOUD WASHING

The cloud computing 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 organizations 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 colocation 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 ITWhile software rarely comes in a box today, the vendors of today’s apps are shifting dramatically.


MIX OF APPS MOVING IS CHANGING88 percent of buyers preferred on-premise solutions in 2008, 87 percent preferred cloud solutions in 2014. Everest Group


A DELAY?Why has cloud computing (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 Computing 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 Computing’s Early Years

Cloud Computing2006+

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. Traditional IT

2014: GENERAL IT WANTS IN

World IT Cloud Infrastructure Market is Growing by 21% year over year to $32 billion in 2015, accounting 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 Computing’s Early Years

Cloud Computing2006-2014

2014 & 2015:GENERAL IT IS NOW READY

• Security• Budgets• C-Level Acceptance• Early SaaS Projects Had Great Results• Cloud Computing Has Matured and now applications

can be moved to the cloud with adaption or re-writing 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 applications to the cloud is far easier with new and more mature Cloud Computing Infrastructure.

1st Generation Cloud Computing Platforms

2006-2014 2nd Generation Cloud Computing Platforms

2014+

C-LEVEL & LOB VS. IT

C-Level Pushing cloud for agility, and innovation with and against IT. Avanade 2014


GENERAL IT’S CHALLENGES

• People (Training)• Processes (Change & Documentation)• Finance (CAPEX vs. OPEX)• Cloud Migration Planning & Prioritization• DevOps & Automation


PEOPLE

Manage expectations, assess team readiness and schedule training


PROCESSES

Cloud migration planning is critical to a successful cloud transition, plan accordingly.


FINANCE

The CapEx to OpEx transition difficulty is compounded by complex pricing and the changes in depreciation and financing.


CLOUD MIGRATION PLANNING

Prioritize migrations based on Application Architectures, Application Lifecycle, Application licensing, Data Security, ROI on Migration


MONITORING & AUTOMATION

APIs and the tools from the ecosystem are multiplying 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 Migration Planning: • Which apps go first

• DevOps & Automation:• APIs & Tools


RALLY THE TEAM

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


Public cloud platforms will rival traditional 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

Start a 14-Day Free Trial or contact a ProfitBricks Cloud Executive:

www.ProfitBricks.com

or Call:1-866-852-8229

Learn about Cloud Pricing in our White Paper:

Secret World of Cloud Computing IaaS Pricing

As Seen In

VP, MarketingProfitBricks USA

Phone: 866-852-5229Twitter: @utollwi


http://www.ProfitBricks.com/

http://info.profitbricks.com/Compare-Cloud-Computing-Pricing.html



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CloudExpo Cloud Computing IaaS Growth Details 2015 - Why 2014 Was A Turning Point