Cloud Computing

Designing Applications for Efficiency

Geva Perry

General Manager

Cloud Computing

- Confidential -

Global 1000 Companies Rely on GigaSpaces

- Confidential -

Global 1000 Companies Rely on GigaSpaces

- Confidential -

bull Software architecture is undergoing a ldquoonce in a decaderdquo transformation

bull IDC on Cloud Computing This is about the IT industrys new model for the next 20

years

ndash Vernon Turner head of enterprise infrastructure consumer and telecoms

research

Mainframe N-tierClient Server

Virtualized1980s 1990s 2000s

Market Trends

- Confidential -

Volatile and Unpredictable Application Loads

bull Transactions data and user growth - require greater investment

bull Volatile and unpredictable growth rates - add greater risk

bull How do you design and build applications that cost-effectively scale in such

conditions

bull Without compromising reliability performance and time-to-market

0

100000000

200000000

300000000

400000000

500000000

600000000

700000000

800000000

900000000

1000000000

1100000000

1200000000

1300000000

J-04 M-04 M-04 J-04 S-04 N-04 J-05 M-05 M-05 J-05 S-05 N-05 J-06 M-06 M-06 J-06 S-06 N-06 J-07 M-07 M-07 J-07 S-07

- Confidential -

Volatile and Unpredictable Application Loads

bull Transactions data and user growth - require greater investment

bull Volatile and unpredictable growth rates - add greater risk

bull How do you design and build applications that cost-effectively scale in such

conditions

bull Without compromising reliability performance and time-to-market

0

100000000

200000000

300000000

400000000

500000000

600000000

700000000

800000000

900000000

1000000000

1100000000

1200000000

1300000000

J-04 M-04 M-04 J-04 S-04 N-04 J-05 M-05 M-05 J-05 S-05 N-05 J-06 M-06 M-06 J-06 S-06 N-06 J-07 M-07 M-07 J-07 S-07

- Confidential -

Non-Scalable Applications Are Expensive and Risky

bull Non-scalable applications suffer from diminishing returns on added resources

bull As the business grows per transaction costs INCREASE

bull At some point the application will hit a wall leading to

ndash Application crashes (and potential disaster for the business ndash at huge cost)

ndash Expensive process of re-architecting the application every few monthsyears

Non-Linear Scalability (15 Contention)

$0

$200000

$400000

$600000

$800000

$1000000

$1200000

1000 2000 3000 4000 5000 6000 7000 8000 9000 10000

Required Throughput (eg TxSec)

To

tal S

olu

tio

n C

os

t

The Scalability

Wall

Server cost

$20000

Single server throughput

1000 txsec

Contention

15

- Confidential -

Scalability Disasters Are More Common Than Ever

bull Lost customers

bull Lost revenues

bull Brand damage

- Confidential -

Downtime Costs Can Easily Exceed $100K Per Hour

bull According to a 2004 Forrester survey of 235 companies the hourly

cost of downtime was

Percent of Companies Hourly Cost

33 $10K-100K

25 $100K-500K

13 $500K- 1M

4 gt$1M

25 Didnrsquot Know

- Confidential -

Gartner Highlights the Full Impact of Downtime

- Confidential -

Over-Provisioning is Rampant

bull Companies allocate high-end expensive servers to handle future capacity

bull The result average industry server utilization rates are15-20

bull The trend is changing utilization rates are growing due to virtualization

bull Companies that donrsquot achieve higher levels of utilization will be in a

competitive disadvantage

- Confidential -

The Goal Linear Scalability On Demand

bull No diminishing returns on scale

bull No code changes when scaling

bull Drop in another box and increase capacity linearly

1000 txsec2000 txsec3000 txsec4000 txsec

$0

$200000

$400000

$600000

$800000

$1000000

$1200000

1000 2000 3000 4000 5000 6000 7000 8000 9000 10000

Linear Scalability Non-Linear Scalability (15 Contention)

- Confidential -

ldquoUsers really respond to speedrdquo

ndash Marissa Mayer VP Google

bull A brokerage can lose up to $4 million per millisecond of

latency

ndash The Tabb Group

bullAn additional 500 ms latency resulted in -20 traffic

ndash Google

bull An additional 100 ms in latency resulted in -1 sales

ndash Amazon

The Need for Speed

- Confidential -

The Prevailing Model Do You See the Problem

BusinessServices Tier

Back-upBack-up

Back-upBack-up

Data Tier

Messaging

B CA

- Confidential -

An Actual Oracle Press Release No Kidding

bull [Numbers in brackets are COST PER CPU]

bull ldquoQtraxs implementation includes Oracle Database [$175k to $475k]

Oracle Real Application Clusters [$23k] Oracle Enterprise Manager [$35 to

$20k+] and components of Oracle Fusion Middleware [] including Oracle

Application Server [$10k to $30k] and Oracle Coherence [$4k to $25k] With

this software now in place Qtrax will have the ability to support millions of

concurrent users [they better] ldquo

bull Total $58K to $1455k+ per CPU

bull And donrsquot forget 22 annual support feeshellip

- Confidential -

Cloud Computing

- Confidential -

Cloud Computing

bull Key Elements

ndash Architecture Virtualization on demand provisioning distributed computing

(parallel processing data partitioning)

ndash Business model Utility ndash usage-based or subscription

bull Three sub-categories of cloud computing

ndash Software-as-a-Service applications

ndash Platform-as-a-Service middleware databases

ndash Infrastructure-as-a-Service (hardware + OS + virtualization)

bull Economic drivers

ndash Cloud providers benefit from economies of scale and expertise

ndash Only pay for what you need when you need it

ndash Rapid time-to-value

- Confidential -

Amazon Elastic Compute Cloud (EC2)

bull Rent infrastructure with a pay-per-usage model

ndash Compute Bandwidth Storage Messages etc

bull The Amazon Machine Image (AMI)

ndash Virtual resource (Hardware and Memory) which can be rapidly deployed as

needed

ndash Comes in several sizes

bull EC2 is a part of Amazon Web Services

ndash Simple Storage Service (S3)

ndash Simple Queue Service (SQS)

ndash Amazon SimpleDB (SDB)

ndash Flexible Payments Service (FPS)

bull Two unique aspects

ndash Open to third-parties

ndash No human interaction ndash just enter a credit card with no complex contracts

- Confidential -

Reality or Hype

bull Like all big innovative technologies will go through a hype cycle

bull We are definitely nearing the ldquopeak of inflated expectationsrdquo

bull Howeverhellip

bull Gartner ldquoBy 2012 80 percent of Fortune 1000 companies will pay

for some cloud computing service and 30 percent of them will pay

for cloud computing infrastructurerdquo

- Confidential -

Massive Investments in Cloud Computing

bull Amazon Amazon Web Services (EC2 S3 SQS SimpleDB and more)

bull Google Google Apps (SaaS) Google App Engine (APaaS)

bull Intuit $300+ million investment

bull Salesforcecom

bull Microsoft Windows Live (SaaS) SQL Server Data Services (APaaS) Windows

Cloud

bull IBM ldquoBlue Cloudrdquo (APaaS)

bull HP Adaptive Infrastructure as a Service (IaaS) EDS

bull Sun Networkcom (IaaS) Project Caroline (APaaS)

bull EMC Storage cloud

bull Dell

bull ISVs RedHat MySQL Sun Solaris and others on EC2

bull Telcos ATampT BT

bull Start-Ups and Smaller Vendors Joyent Flexiscale GoGrid and more

bull A growing eco-system RightScale Elastra CohesiveFT Eucalyptus 3Tera

- Confidential -

Cloud computing is rapidly becoming serious business

bull ldquoWe expect that over the next several years the operation will

become a major business alongside our retail businessrdquo

ndash Adam Selipsky vice president Amazon Web Services

bull In the last two months of 2007 usage of Amazon Web Services grew

by 40

bull $131 million revenues in Q1 from AWS

bull 60000 customers

bull The majority of usage comes from banks pharmaceuticals and

other large corporations

- Confidential -

Amazon Web Services Traffic Over-Taking Retail Site

Source Amazon

- Confidential -

ldquoAdvancedrdquo Cloud Uses

bull Vertical and Specialized Clouds

ndash Compliance Laws Regulations

ndash Geography

ndash Industry Needs

ndash Technology Platform

bull Hybrid Clouds

ndash Cloudbursting

ndash Disaster Recovery Fail-Over Continuity

ndash Cloud spanning

ndash Cloud hopping

bull Cloud Exchange

- Confidential -

Barriers to Cloud Computing

bull Psychological Barriers

bull Platform Lock-In Dependence

bull Security

bull Compliance

bull Costs

bull Application Architecture

ndash How do we design applications to take advantage of the cloud

ndash Grow and shrink on-demand (scalability)

ndash Data affinity

ndash Portability

ndash Efficiency

ndash Performance

ndash Fault-tolerance and self-healing

- Confidential -

The Prevailing Model Do You See the Problem

BusinessServices Tier

Back-upBack-up

Back-upBack-up

Data Tier

Messaging

B CA

- Confidential -

Analogy Car Wash

- Confidential -

All-In-One ldquoWashing Unitrdquo

- Confidential -

Scalability Through Parallelization

- Confidential -

Virtual Middleware Eliminate All Bottlenecks

Business tier

Co-locate all application components in a single server

Manage data and messaging in memory

- Confidential -

Scale-Out On Demand With No Code Changes

- Confidential -

Write to the Database in the Background

- Confidential -

Achieve Resiliency with Hot Fail-Over

Continuous High-Availability

Single high-availability model for all tiers

Automated failoverredundancy mechanism

ActiveActive ndash efficient use of IT resources

Failure Failover

BackupPrimary

- Confidential -

Supports Common Frameworks amp Languages to

Smooth Adoption and Increase Developer Productivity

C++

- Confidential -

Scalability Disasters Are More Common Than Ever

bull Lost customers

bull Lost revenues

bull Brand damage

- Confidential -

Downtime Costs Can Easily Exceed $100K Per Hour

bull According to a 2004 Forrester survey of 235 companies the hourly

cost of downtime was

Percent of Companies Hourly Cost

33 $10K-100K

25 $100K-500K

13 $500K- 1M

4 gt$1M

25 Didnrsquot Know

- Confidential -

Gartner Highlights the Full Impact of Downtime

- Confidential -

Over-Provisioning is Rampant

bull Companies allocate high-end expensive servers to handle future capacity

bull The result average industry server utilization rates are15-20

bull The trend is changing utilization rates are growing due to virtualization

bull Companies that donrsquot achieve higher levels of utilization will be in a

competitive disadvantage

- Confidential -

The Goal Linear Scalability On Demand

bull No diminishing returns on scale

bull No code changes when scaling

bull Drop in another box and increase capacity linearly

1000 txsec2000 txsec3000 txsec4000 txsec

$0

$200000

$400000

$600000

$800000

$1000000

$1200000

1000 2000 3000 4000 5000 6000 7000 8000 9000 10000

Linear Scalability Non-Linear Scalability (15 Contention)

- Confidential -

ldquoUsers really respond to speedrdquo

ndash Marissa Mayer VP Google

bull A brokerage can lose up to $4 million per millisecond of

latency

ndash The Tabb Group

bullAn additional 500 ms latency resulted in -20 traffic

ndash Google

bull An additional 100 ms in latency resulted in -1 sales

ndash Amazon

The Need for Speed

- Confidential -

The Prevailing Model Do You See the Problem

BusinessServices Tier

Back-upBack-up

Back-upBack-up

Data Tier

Messaging

B CA

- Confidential -

An Actual Oracle Press Release No Kidding

bull [Numbers in brackets are COST PER CPU]

bull ldquoQtraxs implementation includes Oracle Database [$175k to $475k]

Oracle Real Application Clusters [$23k] Oracle Enterprise Manager [$35 to

$20k+] and components of Oracle Fusion Middleware [] including Oracle

Application Server [$10k to $30k] and Oracle Coherence [$4k to $25k] With

this software now in place Qtrax will have the ability to support millions of

concurrent users [they better] ldquo

bull Total $58K to $1455k+ per CPU

bull And donrsquot forget 22 annual support feeshellip

- Confidential -

Cloud Computing

- Confidential -

Cloud Computing

bull Key Elements

ndash Architecture Virtualization on demand provisioning distributed computing

(parallel processing data partitioning)

ndash Business model Utility ndash usage-based or subscription

bull Three sub-categories of cloud computing

ndash Software-as-a-Service applications

ndash Platform-as-a-Service middleware databases

ndash Infrastructure-as-a-Service (hardware + OS + virtualization)

bull Economic drivers

ndash Cloud providers benefit from economies of scale and expertise

ndash Only pay for what you need when you need it

ndash Rapid time-to-value

- Confidential -

Amazon Elastic Compute Cloud (EC2)

bull Rent infrastructure with a pay-per-usage model

ndash Compute Bandwidth Storage Messages etc

bull The Amazon Machine Image (AMI)

ndash Virtual resource (Hardware and Memory) which can be rapidly deployed as

needed

ndash Comes in several sizes

bull EC2 is a part of Amazon Web Services

ndash Simple Storage Service (S3)

ndash Simple Queue Service (SQS)

ndash Amazon SimpleDB (SDB)

ndash Flexible Payments Service (FPS)

bull Two unique aspects

ndash Open to third-parties

ndash No human interaction ndash just enter a credit card with no complex contracts

- Confidential -

Reality or Hype

bull Like all big innovative technologies will go through a hype cycle

bull We are definitely nearing the ldquopeak of inflated expectationsrdquo

bull Howeverhellip

bull Gartner ldquoBy 2012 80 percent of Fortune 1000 companies will pay

for some cloud computing service and 30 percent of them will pay

for cloud computing infrastructurerdquo

- Confidential -

Massive Investments in Cloud Computing

bull Amazon Amazon Web Services (EC2 S3 SQS SimpleDB and more)

bull Google Google Apps (SaaS) Google App Engine (APaaS)

bull Intuit $300+ million investment

bull Salesforcecom

bull Microsoft Windows Live (SaaS) SQL Server Data Services (APaaS) Windows

Cloud

bull IBM ldquoBlue Cloudrdquo (APaaS)

bull HP Adaptive Infrastructure as a Service (IaaS) EDS

bull Sun Networkcom (IaaS) Project Caroline (APaaS)

bull EMC Storage cloud

bull Dell

bull ISVs RedHat MySQL Sun Solaris and others on EC2

bull Telcos ATampT BT

bull Start-Ups and Smaller Vendors Joyent Flexiscale GoGrid and more

bull A growing eco-system RightScale Elastra CohesiveFT Eucalyptus 3Tera

- Confidential -

Cloud computing is rapidly becoming serious business

bull ldquoWe expect that over the next several years the operation will

become a major business alongside our retail businessrdquo

ndash Adam Selipsky vice president Amazon Web Services

bull In the last two months of 2007 usage of Amazon Web Services grew

by 40

bull $131 million revenues in Q1 from AWS

bull 60000 customers

bull The majority of usage comes from banks pharmaceuticals and

other large corporations

- Confidential -

Amazon Web Services Traffic Over-Taking Retail Site

Source Amazon

- Confidential -

ldquoAdvancedrdquo Cloud Uses

bull Vertical and Specialized Clouds

ndash Compliance Laws Regulations

ndash Geography

ndash Industry Needs

ndash Technology Platform

bull Hybrid Clouds

ndash Cloudbursting

ndash Disaster Recovery Fail-Over Continuity

ndash Cloud spanning

ndash Cloud hopping

bull Cloud Exchange

- Confidential -

Barriers to Cloud Computing

bull Psychological Barriers

bull Platform Lock-In Dependence

bull Security

bull Compliance

bull Costs

bull Application Architecture

ndash How do we design applications to take advantage of the cloud

ndash Grow and shrink on-demand (scalability)

ndash Data affinity

ndash Portability

ndash Efficiency

ndash Performance

ndash Fault-tolerance and self-healing

- Confidential -

The Prevailing Model Do You See the Problem

BusinessServices Tier

Back-upBack-up

Back-upBack-up

Data Tier

Messaging

B CA

- Confidential -

Analogy Car Wash

- Confidential -

All-In-One ldquoWashing Unitrdquo

- Confidential -

Scalability Through Parallelization

- Confidential -

Virtual Middleware Eliminate All Bottlenecks

Business tier

Co-locate all application components in a single server

Manage data and messaging in memory

- Confidential -

Scale-Out On Demand With No Code Changes

- Confidential -

Write to the Database in the Background

- Confidential -

Achieve Resiliency with Hot Fail-Over

Continuous High-Availability

Single high-availability model for all tiers

Automated failoverredundancy mechanism

ActiveActive ndash efficient use of IT resources

Failure Failover

BackupPrimary

- Confidential -

Supports Common Frameworks amp Languages to

Smooth Adoption and Increase Developer Productivity

C++

- Confidential -

Downtime Costs Can Easily Exceed $100K Per Hour

bull According to a 2004 Forrester survey of 235 companies the hourly

cost of downtime was

Percent of Companies Hourly Cost

33 $10K-100K

25 $100K-500K

13 $500K- 1M

4 gt$1M

25 Didnrsquot Know

- Confidential -

Gartner Highlights the Full Impact of Downtime

- Confidential -

Over-Provisioning is Rampant

bull Companies allocate high-end expensive servers to handle future capacity

bull The result average industry server utilization rates are15-20

bull The trend is changing utilization rates are growing due to virtualization

bull Companies that donrsquot achieve higher levels of utilization will be in a

competitive disadvantage

- Confidential -

The Goal Linear Scalability On Demand

bull No diminishing returns on scale

bull No code changes when scaling

bull Drop in another box and increase capacity linearly

1000 txsec2000 txsec3000 txsec4000 txsec

$0

$200000

$400000

$600000

$800000

$1000000

$1200000

1000 2000 3000 4000 5000 6000 7000 8000 9000 10000

Linear Scalability Non-Linear Scalability (15 Contention)

- Confidential -

ldquoUsers really respond to speedrdquo

ndash Marissa Mayer VP Google

bull A brokerage can lose up to $4 million per millisecond of

latency

ndash The Tabb Group

bullAn additional 500 ms latency resulted in -20 traffic

ndash Google

bull An additional 100 ms in latency resulted in -1 sales

ndash Amazon

The Need for Speed

- Confidential -

The Prevailing Model Do You See the Problem

BusinessServices Tier

Back-upBack-up

Back-upBack-up

Data Tier

Messaging

B CA

- Confidential -

An Actual Oracle Press Release No Kidding

bull [Numbers in brackets are COST PER CPU]

bull ldquoQtraxs implementation includes Oracle Database [$175k to $475k]

Oracle Real Application Clusters [$23k] Oracle Enterprise Manager [$35 to

$20k+] and components of Oracle Fusion Middleware [] including Oracle

Application Server [$10k to $30k] and Oracle Coherence [$4k to $25k] With

this software now in place Qtrax will have the ability to support millions of

concurrent users [they better] ldquo

bull Total $58K to $1455k+ per CPU

bull And donrsquot forget 22 annual support feeshellip

- Confidential -

Cloud Computing

- Confidential -

Cloud Computing

bull Key Elements

ndash Architecture Virtualization on demand provisioning distributed computing

(parallel processing data partitioning)

ndash Business model Utility ndash usage-based or subscription

bull Three sub-categories of cloud computing

ndash Software-as-a-Service applications

ndash Platform-as-a-Service middleware databases

ndash Infrastructure-as-a-Service (hardware + OS + virtualization)

bull Economic drivers

ndash Cloud providers benefit from economies of scale and expertise

ndash Only pay for what you need when you need it

ndash Rapid time-to-value

- Confidential -

Amazon Elastic Compute Cloud (EC2)

bull Rent infrastructure with a pay-per-usage model

ndash Compute Bandwidth Storage Messages etc

bull The Amazon Machine Image (AMI)

ndash Virtual resource (Hardware and Memory) which can be rapidly deployed as

needed

ndash Comes in several sizes

bull EC2 is a part of Amazon Web Services

ndash Simple Storage Service (S3)

ndash Simple Queue Service (SQS)

ndash Amazon SimpleDB (SDB)

ndash Flexible Payments Service (FPS)

bull Two unique aspects

ndash Open to third-parties

ndash No human interaction ndash just enter a credit card with no complex contracts

- Confidential -

Reality or Hype

bull Like all big innovative technologies will go through a hype cycle

bull We are definitely nearing the ldquopeak of inflated expectationsrdquo

bull Howeverhellip

bull Gartner ldquoBy 2012 80 percent of Fortune 1000 companies will pay

for some cloud computing service and 30 percent of them will pay

for cloud computing infrastructurerdquo

- Confidential -

Massive Investments in Cloud Computing

bull Amazon Amazon Web Services (EC2 S3 SQS SimpleDB and more)

bull Google Google Apps (SaaS) Google App Engine (APaaS)

bull Intuit $300+ million investment

bull Salesforcecom

bull Microsoft Windows Live (SaaS) SQL Server Data Services (APaaS) Windows

Cloud

bull IBM ldquoBlue Cloudrdquo (APaaS)

bull HP Adaptive Infrastructure as a Service (IaaS) EDS

bull Sun Networkcom (IaaS) Project Caroline (APaaS)

bull EMC Storage cloud

bull Dell

bull ISVs RedHat MySQL Sun Solaris and others on EC2

bull Telcos ATampT BT

bull Start-Ups and Smaller Vendors Joyent Flexiscale GoGrid and more

bull A growing eco-system RightScale Elastra CohesiveFT Eucalyptus 3Tera

- Confidential -

Cloud computing is rapidly becoming serious business

bull ldquoWe expect that over the next several years the operation will

become a major business alongside our retail businessrdquo

ndash Adam Selipsky vice president Amazon Web Services

bull In the last two months of 2007 usage of Amazon Web Services grew

by 40

bull $131 million revenues in Q1 from AWS

bull 60000 customers

bull The majority of usage comes from banks pharmaceuticals and

other large corporations

- Confidential -

Amazon Web Services Traffic Over-Taking Retail Site

Source Amazon

- Confidential -

ldquoAdvancedrdquo Cloud Uses

bull Vertical and Specialized Clouds

ndash Compliance Laws Regulations

ndash Geography

ndash Industry Needs

ndash Technology Platform

bull Hybrid Clouds

ndash Cloudbursting

ndash Disaster Recovery Fail-Over Continuity

ndash Cloud spanning

ndash Cloud hopping

bull Cloud Exchange

- Confidential -

Barriers to Cloud Computing

bull Psychological Barriers

bull Platform Lock-In Dependence

bull Security

bull Compliance

bull Costs

bull Application Architecture

ndash How do we design applications to take advantage of the cloud

ndash Grow and shrink on-demand (scalability)

ndash Data affinity

ndash Portability

ndash Efficiency

ndash Performance

ndash Fault-tolerance and self-healing

- Confidential -

The Prevailing Model Do You See the Problem

BusinessServices Tier

Back-upBack-up

Back-upBack-up

Data Tier

Messaging

B CA

- Confidential -

Analogy Car Wash

- Confidential -

All-In-One ldquoWashing Unitrdquo

- Confidential -

Scalability Through Parallelization

- Confidential -

Virtual Middleware Eliminate All Bottlenecks

Business tier

Co-locate all application components in a single server

Manage data and messaging in memory

- Confidential -

Scale-Out On Demand With No Code Changes

- Confidential -

Write to the Database in the Background

- Confidential -

Achieve Resiliency with Hot Fail-Over

Continuous High-Availability

Single high-availability model for all tiers

Automated failoverredundancy mechanism

ActiveActive ndash efficient use of IT resources

Failure Failover

BackupPrimary

- Confidential -

Supports Common Frameworks amp Languages to

Smooth Adoption and Increase Developer Productivity

C++

- Confidential -

Gartner Highlights the Full Impact of Downtime

- Confidential -

Over-Provisioning is Rampant

bull Companies allocate high-end expensive servers to handle future capacity

bull The result average industry server utilization rates are15-20

bull The trend is changing utilization rates are growing due to virtualization

bull Companies that donrsquot achieve higher levels of utilization will be in a

competitive disadvantage

- Confidential -

The Goal Linear Scalability On Demand

bull No diminishing returns on scale

bull No code changes when scaling

bull Drop in another box and increase capacity linearly

1000 txsec2000 txsec3000 txsec4000 txsec

$0

$200000

$400000

$600000

$800000

$1000000

$1200000

1000 2000 3000 4000 5000 6000 7000 8000 9000 10000

Linear Scalability Non-Linear Scalability (15 Contention)

- Confidential -

ldquoUsers really respond to speedrdquo

ndash Marissa Mayer VP Google

bull A brokerage can lose up to $4 million per millisecond of

latency

ndash The Tabb Group

bullAn additional 500 ms latency resulted in -20 traffic

ndash Google

bull An additional 100 ms in latency resulted in -1 sales

ndash Amazon

The Need for Speed

- Confidential -

The Prevailing Model Do You See the Problem

BusinessServices Tier

Back-upBack-up

Back-upBack-up

Data Tier

Messaging

B CA

- Confidential -

An Actual Oracle Press Release No Kidding

bull [Numbers in brackets are COST PER CPU]

bull ldquoQtraxs implementation includes Oracle Database [$175k to $475k]

Oracle Real Application Clusters [$23k] Oracle Enterprise Manager [$35 to

$20k+] and components of Oracle Fusion Middleware [] including Oracle

Application Server [$10k to $30k] and Oracle Coherence [$4k to $25k] With

this software now in place Qtrax will have the ability to support millions of

concurrent users [they better] ldquo

bull Total $58K to $1455k+ per CPU

bull And donrsquot forget 22 annual support feeshellip

- Confidential -

Cloud Computing

- Confidential -

Cloud Computing

bull Key Elements

ndash Architecture Virtualization on demand provisioning distributed computing

(parallel processing data partitioning)

ndash Business model Utility ndash usage-based or subscription

bull Three sub-categories of cloud computing

ndash Software-as-a-Service applications

ndash Platform-as-a-Service middleware databases

ndash Infrastructure-as-a-Service (hardware + OS + virtualization)

bull Economic drivers

ndash Cloud providers benefit from economies of scale and expertise

ndash Only pay for what you need when you need it

ndash Rapid time-to-value

- Confidential -

Amazon Elastic Compute Cloud (EC2)

bull Rent infrastructure with a pay-per-usage model

ndash Compute Bandwidth Storage Messages etc

bull The Amazon Machine Image (AMI)

ndash Virtual resource (Hardware and Memory) which can be rapidly deployed as

needed

ndash Comes in several sizes

bull EC2 is a part of Amazon Web Services

ndash Simple Storage Service (S3)

ndash Simple Queue Service (SQS)

ndash Amazon SimpleDB (SDB)

ndash Flexible Payments Service (FPS)

bull Two unique aspects

ndash Open to third-parties

ndash No human interaction ndash just enter a credit card with no complex contracts

- Confidential -

Reality or Hype

bull Like all big innovative technologies will go through a hype cycle

bull We are definitely nearing the ldquopeak of inflated expectationsrdquo

bull Howeverhellip

bull Gartner ldquoBy 2012 80 percent of Fortune 1000 companies will pay

for some cloud computing service and 30 percent of them will pay

for cloud computing infrastructurerdquo

- Confidential -

Massive Investments in Cloud Computing

bull Amazon Amazon Web Services (EC2 S3 SQS SimpleDB and more)

bull Google Google Apps (SaaS) Google App Engine (APaaS)

bull Intuit $300+ million investment

bull Salesforcecom

bull Microsoft Windows Live (SaaS) SQL Server Data Services (APaaS) Windows

Cloud

bull IBM ldquoBlue Cloudrdquo (APaaS)

bull HP Adaptive Infrastructure as a Service (IaaS) EDS

bull Sun Networkcom (IaaS) Project Caroline (APaaS)

bull EMC Storage cloud

bull Dell

bull ISVs RedHat MySQL Sun Solaris and others on EC2

bull Telcos ATampT BT

bull Start-Ups and Smaller Vendors Joyent Flexiscale GoGrid and more

bull A growing eco-system RightScale Elastra CohesiveFT Eucalyptus 3Tera

- Confidential -

Cloud computing is rapidly becoming serious business

bull ldquoWe expect that over the next several years the operation will

become a major business alongside our retail businessrdquo

ndash Adam Selipsky vice president Amazon Web Services

bull In the last two months of 2007 usage of Amazon Web Services grew

by 40

bull $131 million revenues in Q1 from AWS

bull 60000 customers

bull The majority of usage comes from banks pharmaceuticals and

other large corporations

- Confidential -

Amazon Web Services Traffic Over-Taking Retail Site

Source Amazon

- Confidential -

ldquoAdvancedrdquo Cloud Uses

bull Vertical and Specialized Clouds

ndash Compliance Laws Regulations

ndash Geography

ndash Industry Needs

ndash Technology Platform

bull Hybrid Clouds

ndash Cloudbursting

ndash Disaster Recovery Fail-Over Continuity

ndash Cloud spanning

ndash Cloud hopping

bull Cloud Exchange

- Confidential -

Barriers to Cloud Computing

bull Psychological Barriers

bull Platform Lock-In Dependence

bull Security

bull Compliance

bull Costs

bull Application Architecture

ndash How do we design applications to take advantage of the cloud

ndash Grow and shrink on-demand (scalability)

ndash Data affinity

ndash Portability

ndash Efficiency

ndash Performance

ndash Fault-tolerance and self-healing

- Confidential -

The Prevailing Model Do You See the Problem

BusinessServices Tier

Back-upBack-up

Back-upBack-up

Data Tier

Messaging

B CA

- Confidential -

Analogy Car Wash

- Confidential -

All-In-One ldquoWashing Unitrdquo

- Confidential -

Scalability Through Parallelization

- Confidential -

Virtual Middleware Eliminate All Bottlenecks

Business tier

Co-locate all application components in a single server

Manage data and messaging in memory

- Confidential -

Scale-Out On Demand With No Code Changes

- Confidential -

Write to the Database in the Background

- Confidential -

Achieve Resiliency with Hot Fail-Over

Continuous High-Availability

Single high-availability model for all tiers

Automated failoverredundancy mechanism

ActiveActive ndash efficient use of IT resources

Failure Failover

BackupPrimary

- Confidential -

Supports Common Frameworks amp Languages to

Smooth Adoption and Increase Developer Productivity

C++

- Confidential -

Over-Provisioning is Rampant

bull Companies allocate high-end expensive servers to handle future capacity

bull The result average industry server utilization rates are15-20

bull The trend is changing utilization rates are growing due to virtualization

bull Companies that donrsquot achieve higher levels of utilization will be in a

competitive disadvantage

- Confidential -

The Goal Linear Scalability On Demand

bull No diminishing returns on scale

bull No code changes when scaling

bull Drop in another box and increase capacity linearly

1000 txsec2000 txsec3000 txsec4000 txsec

$0

$200000

$400000

$600000

$800000

$1000000

$1200000

1000 2000 3000 4000 5000 6000 7000 8000 9000 10000

Linear Scalability Non-Linear Scalability (15 Contention)

- Confidential -

ldquoUsers really respond to speedrdquo

ndash Marissa Mayer VP Google

bull A brokerage can lose up to $4 million per millisecond of

latency

ndash The Tabb Group

bullAn additional 500 ms latency resulted in -20 traffic

ndash Google

bull An additional 100 ms in latency resulted in -1 sales

ndash Amazon

The Need for Speed

- Confidential -

The Prevailing Model Do You See the Problem

BusinessServices Tier

Back-upBack-up

Back-upBack-up

Data Tier

Messaging

B CA

- Confidential -

An Actual Oracle Press Release No Kidding

bull [Numbers in brackets are COST PER CPU]

bull ldquoQtraxs implementation includes Oracle Database [$175k to $475k]

Oracle Real Application Clusters [$23k] Oracle Enterprise Manager [$35 to

$20k+] and components of Oracle Fusion Middleware [] including Oracle

Application Server [$10k to $30k] and Oracle Coherence [$4k to $25k] With

this software now in place Qtrax will have the ability to support millions of

concurrent users [they better] ldquo

bull Total $58K to $1455k+ per CPU

bull And donrsquot forget 22 annual support feeshellip

- Confidential -

Cloud Computing

- Confidential -

Cloud Computing

bull Key Elements

ndash Architecture Virtualization on demand provisioning distributed computing

(parallel processing data partitioning)

ndash Business model Utility ndash usage-based or subscription

bull Three sub-categories of cloud computing

ndash Software-as-a-Service applications

ndash Platform-as-a-Service middleware databases

ndash Infrastructure-as-a-Service (hardware + OS + virtualization)

bull Economic drivers

ndash Cloud providers benefit from economies of scale and expertise

ndash Only pay for what you need when you need it

ndash Rapid time-to-value

- Confidential -

Amazon Elastic Compute Cloud (EC2)

bull Rent infrastructure with a pay-per-usage model

ndash Compute Bandwidth Storage Messages etc

bull The Amazon Machine Image (AMI)

ndash Virtual resource (Hardware and Memory) which can be rapidly deployed as

needed

ndash Comes in several sizes

bull EC2 is a part of Amazon Web Services

ndash Simple Storage Service (S3)

ndash Simple Queue Service (SQS)

ndash Amazon SimpleDB (SDB)

ndash Flexible Payments Service (FPS)

bull Two unique aspects

ndash Open to third-parties

ndash No human interaction ndash just enter a credit card with no complex contracts

- Confidential -

Reality or Hype

bull Like all big innovative technologies will go through a hype cycle

bull We are definitely nearing the ldquopeak of inflated expectationsrdquo

bull Howeverhellip

bull Gartner ldquoBy 2012 80 percent of Fortune 1000 companies will pay

for some cloud computing service and 30 percent of them will pay

for cloud computing infrastructurerdquo

- Confidential -

Massive Investments in Cloud Computing

bull Amazon Amazon Web Services (EC2 S3 SQS SimpleDB and more)

bull Google Google Apps (SaaS) Google App Engine (APaaS)

bull Intuit $300+ million investment

bull Salesforcecom

bull Microsoft Windows Live (SaaS) SQL Server Data Services (APaaS) Windows

Cloud

bull IBM ldquoBlue Cloudrdquo (APaaS)

bull HP Adaptive Infrastructure as a Service (IaaS) EDS

bull Sun Networkcom (IaaS) Project Caroline (APaaS)

bull EMC Storage cloud

bull Dell

bull ISVs RedHat MySQL Sun Solaris and others on EC2

bull Telcos ATampT BT

bull Start-Ups and Smaller Vendors Joyent Flexiscale GoGrid and more

bull A growing eco-system RightScale Elastra CohesiveFT Eucalyptus 3Tera

- Confidential -

Cloud computing is rapidly becoming serious business

bull ldquoWe expect that over the next several years the operation will

become a major business alongside our retail businessrdquo

ndash Adam Selipsky vice president Amazon Web Services

bull In the last two months of 2007 usage of Amazon Web Services grew

by 40

bull $131 million revenues in Q1 from AWS

bull 60000 customers

bull The majority of usage comes from banks pharmaceuticals and

other large corporations

- Confidential -

Amazon Web Services Traffic Over-Taking Retail Site

Source Amazon

- Confidential -

ldquoAdvancedrdquo Cloud Uses

bull Vertical and Specialized Clouds

ndash Compliance Laws Regulations

ndash Geography

ndash Industry Needs

ndash Technology Platform

bull Hybrid Clouds

ndash Cloudbursting

ndash Disaster Recovery Fail-Over Continuity

ndash Cloud spanning

ndash Cloud hopping

bull Cloud Exchange

- Confidential -

Barriers to Cloud Computing

bull Psychological Barriers

bull Platform Lock-In Dependence

bull Security

bull Compliance

bull Costs

bull Application Architecture

ndash How do we design applications to take advantage of the cloud

ndash Grow and shrink on-demand (scalability)

ndash Data affinity

ndash Portability

ndash Efficiency

ndash Performance

ndash Fault-tolerance and self-healing

- Confidential -

The Prevailing Model Do You See the Problem

BusinessServices Tier

Back-upBack-up

Back-upBack-up

Data Tier

Messaging

B CA

- Confidential -

Analogy Car Wash

- Confidential -

All-In-One ldquoWashing Unitrdquo

- Confidential -

Scalability Through Parallelization

- Confidential -

Virtual Middleware Eliminate All Bottlenecks

Business tier

Co-locate all application components in a single server

Manage data and messaging in memory

- Confidential -

Scale-Out On Demand With No Code Changes

- Confidential -

Write to the Database in the Background

- Confidential -

Achieve Resiliency with Hot Fail-Over

Continuous High-Availability

Single high-availability model for all tiers

Automated failoverredundancy mechanism

ActiveActive ndash efficient use of IT resources

Failure Failover

BackupPrimary

- Confidential -

Supports Common Frameworks amp Languages to

Smooth Adoption and Increase Developer Productivity

C++

- Confidential -

The Goal Linear Scalability On Demand

bull No diminishing returns on scale

bull No code changes when scaling

bull Drop in another box and increase capacity linearly

1000 txsec2000 txsec3000 txsec4000 txsec

$0

$200000

$400000

$600000

$800000

$1000000

$1200000

1000 2000 3000 4000 5000 6000 7000 8000 9000 10000

Linear Scalability Non-Linear Scalability (15 Contention)

- Confidential -

ldquoUsers really respond to speedrdquo

ndash Marissa Mayer VP Google

bull A brokerage can lose up to $4 million per millisecond of

latency

ndash The Tabb Group

bullAn additional 500 ms latency resulted in -20 traffic

ndash Google

bull An additional 100 ms in latency resulted in -1 sales

ndash Amazon

The Need for Speed

- Confidential -

The Prevailing Model Do You See the Problem

BusinessServices Tier

Back-upBack-up

Back-upBack-up

Data Tier

Messaging

B CA

- Confidential -

An Actual Oracle Press Release No Kidding

bull [Numbers in brackets are COST PER CPU]

bull ldquoQtraxs implementation includes Oracle Database [$175k to $475k]

Oracle Real Application Clusters [$23k] Oracle Enterprise Manager [$35 to

$20k+] and components of Oracle Fusion Middleware [] including Oracle

Application Server [$10k to $30k] and Oracle Coherence [$4k to $25k] With

this software now in place Qtrax will have the ability to support millions of

concurrent users [they better] ldquo

bull Total $58K to $1455k+ per CPU

bull And donrsquot forget 22 annual support feeshellip

- Confidential -

Cloud Computing

- Confidential -

Cloud Computing

bull Key Elements

ndash Architecture Virtualization on demand provisioning distributed computing

(parallel processing data partitioning)

ndash Business model Utility ndash usage-based or subscription

bull Three sub-categories of cloud computing

ndash Software-as-a-Service applications

ndash Platform-as-a-Service middleware databases

ndash Infrastructure-as-a-Service (hardware + OS + virtualization)

bull Economic drivers

ndash Cloud providers benefit from economies of scale and expertise

ndash Only pay for what you need when you need it

ndash Rapid time-to-value

- Confidential -

Amazon Elastic Compute Cloud (EC2)

bull Rent infrastructure with a pay-per-usage model

ndash Compute Bandwidth Storage Messages etc

bull The Amazon Machine Image (AMI)

ndash Virtual resource (Hardware and Memory) which can be rapidly deployed as

needed

ndash Comes in several sizes

bull EC2 is a part of Amazon Web Services

ndash Simple Storage Service (S3)

ndash Simple Queue Service (SQS)

ndash Amazon SimpleDB (SDB)

ndash Flexible Payments Service (FPS)

bull Two unique aspects

ndash Open to third-parties

ndash No human interaction ndash just enter a credit card with no complex contracts

- Confidential -

Reality or Hype

bull Like all big innovative technologies will go through a hype cycle

bull We are definitely nearing the ldquopeak of inflated expectationsrdquo

bull Howeverhellip

bull Gartner ldquoBy 2012 80 percent of Fortune 1000 companies will pay

for some cloud computing service and 30 percent of them will pay

for cloud computing infrastructurerdquo

- Confidential -

Massive Investments in Cloud Computing

bull Amazon Amazon Web Services (EC2 S3 SQS SimpleDB and more)

bull Google Google Apps (SaaS) Google App Engine (APaaS)

bull Intuit $300+ million investment

bull Salesforcecom

bull Microsoft Windows Live (SaaS) SQL Server Data Services (APaaS) Windows

Cloud

bull IBM ldquoBlue Cloudrdquo (APaaS)

bull HP Adaptive Infrastructure as a Service (IaaS) EDS

bull Sun Networkcom (IaaS) Project Caroline (APaaS)

bull EMC Storage cloud

bull Dell

bull ISVs RedHat MySQL Sun Solaris and others on EC2

bull Telcos ATampT BT

bull Start-Ups and Smaller Vendors Joyent Flexiscale GoGrid and more

bull A growing eco-system RightScale Elastra CohesiveFT Eucalyptus 3Tera

- Confidential -

Cloud computing is rapidly becoming serious business

bull ldquoWe expect that over the next several years the operation will

become a major business alongside our retail businessrdquo

ndash Adam Selipsky vice president Amazon Web Services

bull In the last two months of 2007 usage of Amazon Web Services grew

by 40

bull $131 million revenues in Q1 from AWS

bull 60000 customers

bull The majority of usage comes from banks pharmaceuticals and

other large corporations

- Confidential -

Amazon Web Services Traffic Over-Taking Retail Site

Source Amazon

- Confidential -

ldquoAdvancedrdquo Cloud Uses

bull Vertical and Specialized Clouds

ndash Compliance Laws Regulations

ndash Geography

ndash Industry Needs

ndash Technology Platform

bull Hybrid Clouds

ndash Cloudbursting

ndash Disaster Recovery Fail-Over Continuity

ndash Cloud spanning

ndash Cloud hopping

bull Cloud Exchange

- Confidential -

Barriers to Cloud Computing

bull Psychological Barriers

bull Platform Lock-In Dependence

bull Security

bull Compliance

bull Costs

bull Application Architecture

ndash How do we design applications to take advantage of the cloud

ndash Grow and shrink on-demand (scalability)

ndash Data affinity

ndash Portability

ndash Efficiency

ndash Performance

ndash Fault-tolerance and self-healing

- Confidential -

The Prevailing Model Do You See the Problem

BusinessServices Tier

Back-upBack-up

Back-upBack-up

Data Tier

Messaging

B CA

- Confidential -

Analogy Car Wash

- Confidential -

All-In-One ldquoWashing Unitrdquo

- Confidential -

Scalability Through Parallelization

- Confidential -

Virtual Middleware Eliminate All Bottlenecks

Business tier

Co-locate all application components in a single server

Manage data and messaging in memory

- Confidential -

Scale-Out On Demand With No Code Changes

- Confidential -

Write to the Database in the Background

- Confidential -

Achieve Resiliency with Hot Fail-Over

Continuous High-Availability

Single high-availability model for all tiers

Automated failoverredundancy mechanism

ActiveActive ndash efficient use of IT resources

Failure Failover

BackupPrimary

- Confidential -

Supports Common Frameworks amp Languages to

Smooth Adoption and Increase Developer Productivity

C++

- Confidential -

ldquoUsers really respond to speedrdquo

ndash Marissa Mayer VP Google

bull A brokerage can lose up to $4 million per millisecond of

latency

ndash The Tabb Group

bullAn additional 500 ms latency resulted in -20 traffic

ndash Google

bull An additional 100 ms in latency resulted in -1 sales

ndash Amazon

The Need for Speed

- Confidential -

The Prevailing Model Do You See the Problem

BusinessServices Tier

Back-upBack-up

Back-upBack-up

Data Tier

Messaging

B CA

- Confidential -

An Actual Oracle Press Release No Kidding

bull [Numbers in brackets are COST PER CPU]

bull ldquoQtraxs implementation includes Oracle Database [$175k to $475k]

Oracle Real Application Clusters [$23k] Oracle Enterprise Manager [$35 to

$20k+] and components of Oracle Fusion Middleware [] including Oracle

Application Server [$10k to $30k] and Oracle Coherence [$4k to $25k] With

this software now in place Qtrax will have the ability to support millions of

concurrent users [they better] ldquo

bull Total $58K to $1455k+ per CPU

bull And donrsquot forget 22 annual support feeshellip

- Confidential -

Cloud Computing

- Confidential -

Cloud Computing

bull Key Elements

ndash Architecture Virtualization on demand provisioning distributed computing

(parallel processing data partitioning)

ndash Business model Utility ndash usage-based or subscription

bull Three sub-categories of cloud computing

ndash Software-as-a-Service applications

ndash Platform-as-a-Service middleware databases

ndash Infrastructure-as-a-Service (hardware + OS + virtualization)

bull Economic drivers

ndash Cloud providers benefit from economies of scale and expertise

ndash Only pay for what you need when you need it

ndash Rapid time-to-value

- Confidential -

Amazon Elastic Compute Cloud (EC2)

bull Rent infrastructure with a pay-per-usage model

ndash Compute Bandwidth Storage Messages etc

bull The Amazon Machine Image (AMI)

ndash Virtual resource (Hardware and Memory) which can be rapidly deployed as

needed

ndash Comes in several sizes

bull EC2 is a part of Amazon Web Services

ndash Simple Storage Service (S3)

ndash Simple Queue Service (SQS)

ndash Amazon SimpleDB (SDB)

ndash Flexible Payments Service (FPS)

bull Two unique aspects

ndash Open to third-parties

ndash No human interaction ndash just enter a credit card with no complex contracts

- Confidential -

Reality or Hype

bull Like all big innovative technologies will go through a hype cycle

bull We are definitely nearing the ldquopeak of inflated expectationsrdquo

bull Howeverhellip

bull Gartner ldquoBy 2012 80 percent of Fortune 1000 companies will pay

for some cloud computing service and 30 percent of them will pay

for cloud computing infrastructurerdquo

- Confidential -

Massive Investments in Cloud Computing

bull Amazon Amazon Web Services (EC2 S3 SQS SimpleDB and more)

bull Google Google Apps (SaaS) Google App Engine (APaaS)

bull Intuit $300+ million investment

bull Salesforcecom

bull Microsoft Windows Live (SaaS) SQL Server Data Services (APaaS) Windows

Cloud

bull IBM ldquoBlue Cloudrdquo (APaaS)

bull HP Adaptive Infrastructure as a Service (IaaS) EDS

bull Sun Networkcom (IaaS) Project Caroline (APaaS)

bull EMC Storage cloud

bull Dell

bull ISVs RedHat MySQL Sun Solaris and others on EC2

bull Telcos ATampT BT

bull Start-Ups and Smaller Vendors Joyent Flexiscale GoGrid and more

bull A growing eco-system RightScale Elastra CohesiveFT Eucalyptus 3Tera

- Confidential -

Cloud computing is rapidly becoming serious business

bull ldquoWe expect that over the next several years the operation will

become a major business alongside our retail businessrdquo

ndash Adam Selipsky vice president Amazon Web Services

bull In the last two months of 2007 usage of Amazon Web Services grew

by 40

bull $131 million revenues in Q1 from AWS

bull 60000 customers

bull The majority of usage comes from banks pharmaceuticals and

other large corporations

- Confidential -

Amazon Web Services Traffic Over-Taking Retail Site

Source Amazon

- Confidential -

ldquoAdvancedrdquo Cloud Uses

bull Vertical and Specialized Clouds

ndash Compliance Laws Regulations

ndash Geography

ndash Industry Needs

ndash Technology Platform

bull Hybrid Clouds

ndash Cloudbursting

ndash Disaster Recovery Fail-Over Continuity

ndash Cloud spanning

ndash Cloud hopping

bull Cloud Exchange

- Confidential -

Barriers to Cloud Computing

bull Psychological Barriers

bull Platform Lock-In Dependence

bull Security

bull Compliance

bull Costs

bull Application Architecture

ndash How do we design applications to take advantage of the cloud

ndash Grow and shrink on-demand (scalability)

ndash Data affinity

ndash Portability

ndash Efficiency

ndash Performance

ndash Fault-tolerance and self-healing

- Confidential -

The Prevailing Model Do You See the Problem

BusinessServices Tier

Back-upBack-up

Back-upBack-up

Data Tier

Messaging

B CA

- Confidential -

Analogy Car Wash

- Confidential -

All-In-One ldquoWashing Unitrdquo

- Confidential -

Scalability Through Parallelization

- Confidential -

Virtual Middleware Eliminate All Bottlenecks

Business tier

Co-locate all application components in a single server

Manage data and messaging in memory

- Confidential -

Scale-Out On Demand With No Code Changes

- Confidential -

Write to the Database in the Background

- Confidential -

Achieve Resiliency with Hot Fail-Over

Continuous High-Availability

Single high-availability model for all tiers

Automated failoverredundancy mechanism

ActiveActive ndash efficient use of IT resources

Failure Failover

BackupPrimary

- Confidential -

Supports Common Frameworks amp Languages to

Smooth Adoption and Increase Developer Productivity

C++

- Confidential -

The Prevailing Model Do You See the Problem

BusinessServices Tier

Back-upBack-up

Back-upBack-up

Data Tier

Messaging

B CA

- Confidential -

An Actual Oracle Press Release No Kidding

bull [Numbers in brackets are COST PER CPU]

bull ldquoQtraxs implementation includes Oracle Database [$175k to $475k]

Oracle Real Application Clusters [$23k] Oracle Enterprise Manager [$35 to

$20k+] and components of Oracle Fusion Middleware [] including Oracle

Application Server [$10k to $30k] and Oracle Coherence [$4k to $25k] With

this software now in place Qtrax will have the ability to support millions of

concurrent users [they better] ldquo

bull Total $58K to $1455k+ per CPU

bull And donrsquot forget 22 annual support feeshellip

- Confidential -

Cloud Computing

- Confidential -

Cloud Computing

bull Key Elements

ndash Architecture Virtualization on demand provisioning distributed computing

(parallel processing data partitioning)

ndash Business model Utility ndash usage-based or subscription

bull Three sub-categories of cloud computing

ndash Software-as-a-Service applications

ndash Platform-as-a-Service middleware databases

ndash Infrastructure-as-a-Service (hardware + OS + virtualization)

bull Economic drivers

ndash Cloud providers benefit from economies of scale and expertise

ndash Only pay for what you need when you need it

ndash Rapid time-to-value

- Confidential -

Amazon Elastic Compute Cloud (EC2)

bull Rent infrastructure with a pay-per-usage model

ndash Compute Bandwidth Storage Messages etc

bull The Amazon Machine Image (AMI)

ndash Virtual resource (Hardware and Memory) which can be rapidly deployed as

needed

ndash Comes in several sizes

bull EC2 is a part of Amazon Web Services

ndash Simple Storage Service (S3)

ndash Simple Queue Service (SQS)

ndash Amazon SimpleDB (SDB)

ndash Flexible Payments Service (FPS)

bull Two unique aspects

ndash Open to third-parties

ndash No human interaction ndash just enter a credit card with no complex contracts

- Confidential -

Reality or Hype

bull Like all big innovative technologies will go through a hype cycle

bull We are definitely nearing the ldquopeak of inflated expectationsrdquo

bull Howeverhellip

bull Gartner ldquoBy 2012 80 percent of Fortune 1000 companies will pay

for some cloud computing service and 30 percent of them will pay

for cloud computing infrastructurerdquo

- Confidential -

Massive Investments in Cloud Computing

bull Amazon Amazon Web Services (EC2 S3 SQS SimpleDB and more)

bull Google Google Apps (SaaS) Google App Engine (APaaS)

bull Intuit $300+ million investment

bull Salesforcecom

bull Microsoft Windows Live (SaaS) SQL Server Data Services (APaaS) Windows

Cloud

bull IBM ldquoBlue Cloudrdquo (APaaS)

bull HP Adaptive Infrastructure as a Service (IaaS) EDS

bull Sun Networkcom (IaaS) Project Caroline (APaaS)

bull EMC Storage cloud

bull Dell

bull ISVs RedHat MySQL Sun Solaris and others on EC2

bull Telcos ATampT BT

bull Start-Ups and Smaller Vendors Joyent Flexiscale GoGrid and more

bull A growing eco-system RightScale Elastra CohesiveFT Eucalyptus 3Tera

- Confidential -

Cloud computing is rapidly becoming serious business

bull ldquoWe expect that over the next several years the operation will

become a major business alongside our retail businessrdquo

ndash Adam Selipsky vice president Amazon Web Services

bull In the last two months of 2007 usage of Amazon Web Services grew

by 40

bull $131 million revenues in Q1 from AWS

bull 60000 customers

bull The majority of usage comes from banks pharmaceuticals and

other large corporations

- Confidential -

Amazon Web Services Traffic Over-Taking Retail Site

Source Amazon

- Confidential -

ldquoAdvancedrdquo Cloud Uses

bull Vertical and Specialized Clouds

ndash Compliance Laws Regulations

ndash Geography

ndash Industry Needs

ndash Technology Platform

bull Hybrid Clouds

ndash Cloudbursting

ndash Disaster Recovery Fail-Over Continuity

ndash Cloud spanning

ndash Cloud hopping

bull Cloud Exchange

- Confidential -

Barriers to Cloud Computing

bull Psychological Barriers

bull Platform Lock-In Dependence

bull Security

bull Compliance

bull Costs

bull Application Architecture

ndash How do we design applications to take advantage of the cloud

ndash Grow and shrink on-demand (scalability)

ndash Data affinity

ndash Portability

ndash Efficiency

ndash Performance

ndash Fault-tolerance and self-healing

- Confidential -

The Prevailing Model Do You See the Problem

BusinessServices Tier

Back-upBack-up

Back-upBack-up

Data Tier

Messaging

B CA

- Confidential -

Analogy Car Wash

- Confidential -

All-In-One ldquoWashing Unitrdquo

- Confidential -

Scalability Through Parallelization

- Confidential -

Virtual Middleware Eliminate All Bottlenecks

Business tier

Co-locate all application components in a single server

Manage data and messaging in memory

- Confidential -

Scale-Out On Demand With No Code Changes

- Confidential -

Write to the Database in the Background

- Confidential -

Achieve Resiliency with Hot Fail-Over

Continuous High-Availability

Single high-availability model for all tiers

Automated failoverredundancy mechanism

ActiveActive ndash efficient use of IT resources

Failure Failover

BackupPrimary

- Confidential -

Supports Common Frameworks amp Languages to

Smooth Adoption and Increase Developer Productivity

C++

- Confidential -

An Actual Oracle Press Release No Kidding

bull [Numbers in brackets are COST PER CPU]

bull ldquoQtraxs implementation includes Oracle Database [$175k to $475k]

Oracle Real Application Clusters [$23k] Oracle Enterprise Manager [$35 to

$20k+] and components of Oracle Fusion Middleware [] including Oracle

Application Server [$10k to $30k] and Oracle Coherence [$4k to $25k] With

this software now in place Qtrax will have the ability to support millions of

concurrent users [they better] ldquo

bull Total $58K to $1455k+ per CPU

bull And donrsquot forget 22 annual support feeshellip

- Confidential -

Cloud Computing

- Confidential -

Cloud Computing

bull Key Elements

ndash Architecture Virtualization on demand provisioning distributed computing

(parallel processing data partitioning)

ndash Business model Utility ndash usage-based or subscription

bull Three sub-categories of cloud computing

ndash Software-as-a-Service applications

ndash Platform-as-a-Service middleware databases

ndash Infrastructure-as-a-Service (hardware + OS + virtualization)

bull Economic drivers

ndash Cloud providers benefit from economies of scale and expertise

ndash Only pay for what you need when you need it

ndash Rapid time-to-value

- Confidential -

Amazon Elastic Compute Cloud (EC2)

bull Rent infrastructure with a pay-per-usage model

ndash Compute Bandwidth Storage Messages etc

bull The Amazon Machine Image (AMI)

ndash Virtual resource (Hardware and Memory) which can be rapidly deployed as

needed

ndash Comes in several sizes

bull EC2 is a part of Amazon Web Services

ndash Simple Storage Service (S3)

ndash Simple Queue Service (SQS)

ndash Amazon SimpleDB (SDB)

ndash Flexible Payments Service (FPS)

bull Two unique aspects

ndash Open to third-parties

ndash No human interaction ndash just enter a credit card with no complex contracts

- Confidential -

Reality or Hype

bull Like all big innovative technologies will go through a hype cycle

bull We are definitely nearing the ldquopeak of inflated expectationsrdquo

bull Howeverhellip

bull Gartner ldquoBy 2012 80 percent of Fortune 1000 companies will pay

for some cloud computing service and 30 percent of them will pay

for cloud computing infrastructurerdquo

- Confidential -

Massive Investments in Cloud Computing

bull Amazon Amazon Web Services (EC2 S3 SQS SimpleDB and more)

bull Google Google Apps (SaaS) Google App Engine (APaaS)

bull Intuit $300+ million investment

bull Salesforcecom

bull Microsoft Windows Live (SaaS) SQL Server Data Services (APaaS) Windows

Cloud

bull IBM ldquoBlue Cloudrdquo (APaaS)

bull HP Adaptive Infrastructure as a Service (IaaS) EDS

bull Sun Networkcom (IaaS) Project Caroline (APaaS)

bull EMC Storage cloud

bull Dell

bull ISVs RedHat MySQL Sun Solaris and others on EC2

bull Telcos ATampT BT

bull Start-Ups and Smaller Vendors Joyent Flexiscale GoGrid and more

bull A growing eco-system RightScale Elastra CohesiveFT Eucalyptus 3Tera

- Confidential -

Cloud computing is rapidly becoming serious business

bull ldquoWe expect that over the next several years the operation will

become a major business alongside our retail businessrdquo

ndash Adam Selipsky vice president Amazon Web Services

bull In the last two months of 2007 usage of Amazon Web Services grew

by 40

bull $131 million revenues in Q1 from AWS

bull 60000 customers

bull The majority of usage comes from banks pharmaceuticals and

other large corporations

- Confidential -

Amazon Web Services Traffic Over-Taking Retail Site

Source Amazon

- Confidential -

ldquoAdvancedrdquo Cloud Uses

bull Vertical and Specialized Clouds

ndash Compliance Laws Regulations

ndash Geography

ndash Industry Needs

ndash Technology Platform

bull Hybrid Clouds

ndash Cloudbursting

ndash Disaster Recovery Fail-Over Continuity

ndash Cloud spanning

ndash Cloud hopping

bull Cloud Exchange

- Confidential -

Barriers to Cloud Computing

bull Psychological Barriers

bull Platform Lock-In Dependence

bull Security

bull Compliance

bull Costs

bull Application Architecture

ndash How do we design applications to take advantage of the cloud

ndash Grow and shrink on-demand (scalability)

ndash Data affinity

ndash Portability

ndash Efficiency

ndash Performance

ndash Fault-tolerance and self-healing

- Confidential -

The Prevailing Model Do You See the Problem

BusinessServices Tier

Back-upBack-up

Back-upBack-up

Data Tier

Messaging

B CA

- Confidential -

Analogy Car Wash

- Confidential -

All-In-One ldquoWashing Unitrdquo

- Confidential -

Scalability Through Parallelization

- Confidential -

Virtual Middleware Eliminate All Bottlenecks

Business tier

Co-locate all application components in a single server

Manage data and messaging in memory

- Confidential -

Scale-Out On Demand With No Code Changes

- Confidential -

Write to the Database in the Background

- Confidential -

Achieve Resiliency with Hot Fail-Over

Continuous High-Availability

Single high-availability model for all tiers

Automated failoverredundancy mechanism

ActiveActive ndash efficient use of IT resources

Failure Failover

BackupPrimary

- Confidential -

Supports Common Frameworks amp Languages to

Smooth Adoption and Increase Developer Productivity

C++

- Confidential -

Cloud Computing

- Confidential -

Cloud Computing

bull Key Elements

ndash Architecture Virtualization on demand provisioning distributed computing

(parallel processing data partitioning)

ndash Business model Utility ndash usage-based or subscription

bull Three sub-categories of cloud computing

ndash Software-as-a-Service applications

ndash Platform-as-a-Service middleware databases

ndash Infrastructure-as-a-Service (hardware + OS + virtualization)

bull Economic drivers

ndash Cloud providers benefit from economies of scale and expertise

ndash Only pay for what you need when you need it

ndash Rapid time-to-value

- Confidential -

Amazon Elastic Compute Cloud (EC2)

bull Rent infrastructure with a pay-per-usage model

ndash Compute Bandwidth Storage Messages etc

bull The Amazon Machine Image (AMI)

ndash Virtual resource (Hardware and Memory) which can be rapidly deployed as

needed

ndash Comes in several sizes

bull EC2 is a part of Amazon Web Services

ndash Simple Storage Service (S3)

ndash Simple Queue Service (SQS)

ndash Amazon SimpleDB (SDB)

ndash Flexible Payments Service (FPS)

bull Two unique aspects

ndash Open to third-parties

ndash No human interaction ndash just enter a credit card with no complex contracts

- Confidential -

Reality or Hype

bull Like all big innovative technologies will go through a hype cycle

bull We are definitely nearing the ldquopeak of inflated expectationsrdquo

bull Howeverhellip

bull Gartner ldquoBy 2012 80 percent of Fortune 1000 companies will pay

for some cloud computing service and 30 percent of them will pay

for cloud computing infrastructurerdquo

- Confidential -

Massive Investments in Cloud Computing

bull Amazon Amazon Web Services (EC2 S3 SQS SimpleDB and more)

bull Google Google Apps (SaaS) Google App Engine (APaaS)

bull Intuit $300+ million investment

bull Salesforcecom

bull Microsoft Windows Live (SaaS) SQL Server Data Services (APaaS) Windows

Cloud

bull IBM ldquoBlue Cloudrdquo (APaaS)

bull HP Adaptive Infrastructure as a Service (IaaS) EDS

bull Sun Networkcom (IaaS) Project Caroline (APaaS)

bull EMC Storage cloud

bull Dell

bull ISVs RedHat MySQL Sun Solaris and others on EC2

bull Telcos ATampT BT

bull Start-Ups and Smaller Vendors Joyent Flexiscale GoGrid and more

bull A growing eco-system RightScale Elastra CohesiveFT Eucalyptus 3Tera

- Confidential -

Cloud computing is rapidly becoming serious business

bull ldquoWe expect that over the next several years the operation will

become a major business alongside our retail businessrdquo

ndash Adam Selipsky vice president Amazon Web Services

bull In the last two months of 2007 usage of Amazon Web Services grew

by 40

bull $131 million revenues in Q1 from AWS

bull 60000 customers

bull The majority of usage comes from banks pharmaceuticals and

other large corporations

- Confidential -

Amazon Web Services Traffic Over-Taking Retail Site

Source Amazon

- Confidential -

ldquoAdvancedrdquo Cloud Uses

bull Vertical and Specialized Clouds

ndash Compliance Laws Regulations

ndash Geography

ndash Industry Needs

ndash Technology Platform

bull Hybrid Clouds

ndash Cloudbursting

ndash Disaster Recovery Fail-Over Continuity

ndash Cloud spanning

ndash Cloud hopping

bull Cloud Exchange

- Confidential -

Barriers to Cloud Computing

bull Psychological Barriers

bull Platform Lock-In Dependence

bull Security

bull Compliance

bull Costs

bull Application Architecture

ndash How do we design applications to take advantage of the cloud

ndash Grow and shrink on-demand (scalability)

ndash Data affinity

ndash Portability

ndash Efficiency

ndash Performance

ndash Fault-tolerance and self-healing

- Confidential -

The Prevailing Model Do You See the Problem

BusinessServices Tier

Back-upBack-up

Back-upBack-up

Data Tier

Messaging

B CA

- Confidential -

Analogy Car Wash

- Confidential -

All-In-One ldquoWashing Unitrdquo

- Confidential -

Scalability Through Parallelization

- Confidential -

Virtual Middleware Eliminate All Bottlenecks

Business tier

Co-locate all application components in a single server

Manage data and messaging in memory

- Confidential -

Scale-Out On Demand With No Code Changes

- Confidential -

Write to the Database in the Background

- Confidential -

Achieve Resiliency with Hot Fail-Over

Continuous High-Availability

Single high-availability model for all tiers

Automated failoverredundancy mechanism

ActiveActive ndash efficient use of IT resources

Failure Failover

BackupPrimary

- Confidential -

Supports Common Frameworks amp Languages to

Smooth Adoption and Increase Developer Productivity

C++

- Confidential -

Cloud Computing

bull Key Elements

ndash Architecture Virtualization on demand provisioning distributed computing

(parallel processing data partitioning)

ndash Business model Utility ndash usage-based or subscription

bull Three sub-categories of cloud computing

ndash Software-as-a-Service applications

ndash Platform-as-a-Service middleware databases

ndash Infrastructure-as-a-Service (hardware + OS + virtualization)

bull Economic drivers

ndash Cloud providers benefit from economies of scale and expertise

ndash Only pay for what you need when you need it

ndash Rapid time-to-value

- Confidential -

Amazon Elastic Compute Cloud (EC2)

bull Rent infrastructure with a pay-per-usage model

ndash Compute Bandwidth Storage Messages etc

bull The Amazon Machine Image (AMI)

ndash Virtual resource (Hardware and Memory) which can be rapidly deployed as

needed

ndash Comes in several sizes

bull EC2 is a part of Amazon Web Services

ndash Simple Storage Service (S3)

ndash Simple Queue Service (SQS)

ndash Amazon SimpleDB (SDB)

ndash Flexible Payments Service (FPS)

bull Two unique aspects

ndash Open to third-parties

ndash No human interaction ndash just enter a credit card with no complex contracts

- Confidential -

Reality or Hype

bull Like all big innovative technologies will go through a hype cycle

bull We are definitely nearing the ldquopeak of inflated expectationsrdquo

bull Howeverhellip

bull Gartner ldquoBy 2012 80 percent of Fortune 1000 companies will pay

for some cloud computing service and 30 percent of them will pay

for cloud computing infrastructurerdquo

- Confidential -

Massive Investments in Cloud Computing

bull Amazon Amazon Web Services (EC2 S3 SQS SimpleDB and more)

bull Google Google Apps (SaaS) Google App Engine (APaaS)

bull Intuit $300+ million investment

bull Salesforcecom

bull Microsoft Windows Live (SaaS) SQL Server Data Services (APaaS) Windows

Cloud

bull IBM ldquoBlue Cloudrdquo (APaaS)

bull HP Adaptive Infrastructure as a Service (IaaS) EDS

bull Sun Networkcom (IaaS) Project Caroline (APaaS)

bull EMC Storage cloud

bull Dell

bull ISVs RedHat MySQL Sun Solaris and others on EC2

bull Telcos ATampT BT

bull Start-Ups and Smaller Vendors Joyent Flexiscale GoGrid and more

bull A growing eco-system RightScale Elastra CohesiveFT Eucalyptus 3Tera

- Confidential -

Cloud computing is rapidly becoming serious business

bull ldquoWe expect that over the next several years the operation will

become a major business alongside our retail businessrdquo

ndash Adam Selipsky vice president Amazon Web Services

bull In the last two months of 2007 usage of Amazon Web Services grew

by 40

bull $131 million revenues in Q1 from AWS

bull 60000 customers

bull The majority of usage comes from banks pharmaceuticals and

other large corporations

- Confidential -

Amazon Web Services Traffic Over-Taking Retail Site

Source Amazon

- Confidential -

ldquoAdvancedrdquo Cloud Uses

bull Vertical and Specialized Clouds

ndash Compliance Laws Regulations

ndash Geography

ndash Industry Needs

ndash Technology Platform

bull Hybrid Clouds

ndash Cloudbursting

ndash Disaster Recovery Fail-Over Continuity

ndash Cloud spanning

ndash Cloud hopping

bull Cloud Exchange

- Confidential -

Barriers to Cloud Computing

bull Psychological Barriers

bull Platform Lock-In Dependence

bull Security

bull Compliance

bull Costs

bull Application Architecture

ndash How do we design applications to take advantage of the cloud

ndash Grow and shrink on-demand (scalability)

ndash Data affinity

ndash Portability

ndash Efficiency

ndash Performance

ndash Fault-tolerance and self-healing

- Confidential -

The Prevailing Model Do You See the Problem

BusinessServices Tier

Back-upBack-up

Back-upBack-up

Data Tier

Messaging

B CA

- Confidential -

Analogy Car Wash

- Confidential -

All-In-One ldquoWashing Unitrdquo

- Confidential -

Scalability Through Parallelization

- Confidential -

Virtual Middleware Eliminate All Bottlenecks

Business tier

Co-locate all application components in a single server

Manage data and messaging in memory

- Confidential -

Scale-Out On Demand With No Code Changes

- Confidential -

Write to the Database in the Background

- Confidential -

Achieve Resiliency with Hot Fail-Over

Continuous High-Availability

Single high-availability model for all tiers

Automated failoverredundancy mechanism

ActiveActive ndash efficient use of IT resources

Failure Failover

BackupPrimary

- Confidential -

Supports Common Frameworks amp Languages to

Smooth Adoption and Increase Developer Productivity

C++

- Confidential -

Amazon Elastic Compute Cloud (EC2)

bull Rent infrastructure with a pay-per-usage model

ndash Compute Bandwidth Storage Messages etc

bull The Amazon Machine Image (AMI)

ndash Virtual resource (Hardware and Memory) which can be rapidly deployed as

needed

ndash Comes in several sizes

bull EC2 is a part of Amazon Web Services

ndash Simple Storage Service (S3)

ndash Simple Queue Service (SQS)

ndash Amazon SimpleDB (SDB)

ndash Flexible Payments Service (FPS)

bull Two unique aspects

ndash Open to third-parties

ndash No human interaction ndash just enter a credit card with no complex contracts

- Confidential -

Reality or Hype

bull Like all big innovative technologies will go through a hype cycle

bull We are definitely nearing the ldquopeak of inflated expectationsrdquo

bull Howeverhellip

bull Gartner ldquoBy 2012 80 percent of Fortune 1000 companies will pay

for some cloud computing service and 30 percent of them will pay

for cloud computing infrastructurerdquo

- Confidential -

Massive Investments in Cloud Computing

bull Amazon Amazon Web Services (EC2 S3 SQS SimpleDB and more)

bull Google Google Apps (SaaS) Google App Engine (APaaS)

bull Intuit $300+ million investment

bull Salesforcecom

bull Microsoft Windows Live (SaaS) SQL Server Data Services (APaaS) Windows

Cloud

bull IBM ldquoBlue Cloudrdquo (APaaS)

bull HP Adaptive Infrastructure as a Service (IaaS) EDS

bull Sun Networkcom (IaaS) Project Caroline (APaaS)

bull EMC Storage cloud

bull Dell

bull ISVs RedHat MySQL Sun Solaris and others on EC2

bull Telcos ATampT BT

bull Start-Ups and Smaller Vendors Joyent Flexiscale GoGrid and more

bull A growing eco-system RightScale Elastra CohesiveFT Eucalyptus 3Tera

- Confidential -

Cloud computing is rapidly becoming serious business

bull ldquoWe expect that over the next several years the operation will

become a major business alongside our retail businessrdquo

ndash Adam Selipsky vice president Amazon Web Services

bull In the last two months of 2007 usage of Amazon Web Services grew

by 40

bull $131 million revenues in Q1 from AWS

bull 60000 customers

bull The majority of usage comes from banks pharmaceuticals and

other large corporations

- Confidential -

Amazon Web Services Traffic Over-Taking Retail Site

Source Amazon

- Confidential -

ldquoAdvancedrdquo Cloud Uses

bull Vertical and Specialized Clouds

ndash Compliance Laws Regulations

ndash Geography

ndash Industry Needs

ndash Technology Platform

bull Hybrid Clouds

ndash Cloudbursting

ndash Disaster Recovery Fail-Over Continuity

ndash Cloud spanning

ndash Cloud hopping

bull Cloud Exchange

- Confidential -

Barriers to Cloud Computing

bull Psychological Barriers

bull Platform Lock-In Dependence

bull Security

bull Compliance

bull Costs

bull Application Architecture

ndash How do we design applications to take advantage of the cloud

ndash Grow and shrink on-demand (scalability)

ndash Data affinity

ndash Portability

ndash Efficiency

ndash Performance

ndash Fault-tolerance and self-healing

- Confidential -

The Prevailing Model Do You See the Problem

BusinessServices Tier

Back-upBack-up

Back-upBack-up

Data Tier

Messaging

B CA

- Confidential -

Analogy Car Wash

- Confidential -

All-In-One ldquoWashing Unitrdquo

- Confidential -

Scalability Through Parallelization

- Confidential -

Virtual Middleware Eliminate All Bottlenecks

Business tier

Co-locate all application components in a single server

Manage data and messaging in memory

- Confidential -

Scale-Out On Demand With No Code Changes

- Confidential -

Write to the Database in the Background

- Confidential -

Achieve Resiliency with Hot Fail-Over

Continuous High-Availability

Single high-availability model for all tiers

Automated failoverredundancy mechanism

ActiveActive ndash efficient use of IT resources

Failure Failover

BackupPrimary

- Confidential -

Supports Common Frameworks amp Languages to

Smooth Adoption and Increase Developer Productivity

C++

- Confidential -

Reality or Hype

bull Like all big innovative technologies will go through a hype cycle

bull We are definitely nearing the ldquopeak of inflated expectationsrdquo

bull Howeverhellip

bull Gartner ldquoBy 2012 80 percent of Fortune 1000 companies will pay

for some cloud computing service and 30 percent of them will pay

for cloud computing infrastructurerdquo

- Confidential -

Massive Investments in Cloud Computing

bull Amazon Amazon Web Services (EC2 S3 SQS SimpleDB and more)

bull Google Google Apps (SaaS) Google App Engine (APaaS)

bull Intuit $300+ million investment

bull Salesforcecom

bull Microsoft Windows Live (SaaS) SQL Server Data Services (APaaS) Windows

Cloud

bull IBM ldquoBlue Cloudrdquo (APaaS)

bull HP Adaptive Infrastructure as a Service (IaaS) EDS

bull Sun Networkcom (IaaS) Project Caroline (APaaS)

bull EMC Storage cloud

bull Dell

bull ISVs RedHat MySQL Sun Solaris and others on EC2

bull Telcos ATampT BT

bull Start-Ups and Smaller Vendors Joyent Flexiscale GoGrid and more

bull A growing eco-system RightScale Elastra CohesiveFT Eucalyptus 3Tera

- Confidential -

Cloud computing is rapidly becoming serious business

bull ldquoWe expect that over the next several years the operation will

become a major business alongside our retail businessrdquo

ndash Adam Selipsky vice president Amazon Web Services

bull In the last two months of 2007 usage of Amazon Web Services grew

by 40

bull $131 million revenues in Q1 from AWS

bull 60000 customers

bull The majority of usage comes from banks pharmaceuticals and

other large corporations

- Confidential -

Amazon Web Services Traffic Over-Taking Retail Site

Source Amazon

- Confidential -

ldquoAdvancedrdquo Cloud Uses

bull Vertical and Specialized Clouds

ndash Compliance Laws Regulations

ndash Geography

ndash Industry Needs

ndash Technology Platform

bull Hybrid Clouds

ndash Cloudbursting

ndash Disaster Recovery Fail-Over Continuity

ndash Cloud spanning

ndash Cloud hopping

bull Cloud Exchange

- Confidential -

Barriers to Cloud Computing

bull Psychological Barriers

bull Platform Lock-In Dependence

bull Security

bull Compliance

bull Costs

bull Application Architecture

ndash How do we design applications to take advantage of the cloud

ndash Grow and shrink on-demand (scalability)

ndash Data affinity

ndash Portability

ndash Efficiency

ndash Performance

ndash Fault-tolerance and self-healing

- Confidential -

The Prevailing Model Do You See the Problem

BusinessServices Tier

Back-upBack-up

Back-upBack-up

Data Tier

Messaging

B CA

- Confidential -

Analogy Car Wash

- Confidential -

All-In-One ldquoWashing Unitrdquo

- Confidential -

Scalability Through Parallelization

- Confidential -

Virtual Middleware Eliminate All Bottlenecks

Business tier

Co-locate all application components in a single server

Manage data and messaging in memory

- Confidential -

Scale-Out On Demand With No Code Changes

- Confidential -

Write to the Database in the Background

- Confidential -

Achieve Resiliency with Hot Fail-Over

Continuous High-Availability

Single high-availability model for all tiers

Automated failoverredundancy mechanism

ActiveActive ndash efficient use of IT resources

Failure Failover

BackupPrimary

- Confidential -

Supports Common Frameworks amp Languages to

Smooth Adoption and Increase Developer Productivity

C++

- Confidential -

Massive Investments in Cloud Computing

bull Amazon Amazon Web Services (EC2 S3 SQS SimpleDB and more)

bull Google Google Apps (SaaS) Google App Engine (APaaS)

bull Intuit $300+ million investment

bull Salesforcecom

bull Microsoft Windows Live (SaaS) SQL Server Data Services (APaaS) Windows

Cloud

bull IBM ldquoBlue Cloudrdquo (APaaS)

bull HP Adaptive Infrastructure as a Service (IaaS) EDS

bull Sun Networkcom (IaaS) Project Caroline (APaaS)

bull EMC Storage cloud

bull Dell

bull ISVs RedHat MySQL Sun Solaris and others on EC2

bull Telcos ATampT BT

bull Start-Ups and Smaller Vendors Joyent Flexiscale GoGrid and more

bull A growing eco-system RightScale Elastra CohesiveFT Eucalyptus 3Tera

- Confidential -

Cloud computing is rapidly becoming serious business

bull ldquoWe expect that over the next several years the operation will

become a major business alongside our retail businessrdquo

ndash Adam Selipsky vice president Amazon Web Services

bull In the last two months of 2007 usage of Amazon Web Services grew

by 40

bull $131 million revenues in Q1 from AWS

bull 60000 customers

bull The majority of usage comes from banks pharmaceuticals and

other large corporations

- Confidential -

Amazon Web Services Traffic Over-Taking Retail Site

Source Amazon

- Confidential -

ldquoAdvancedrdquo Cloud Uses

bull Vertical and Specialized Clouds

ndash Compliance Laws Regulations

ndash Geography

ndash Industry Needs

ndash Technology Platform

bull Hybrid Clouds

ndash Cloudbursting

ndash Disaster Recovery Fail-Over Continuity

ndash Cloud spanning

ndash Cloud hopping

bull Cloud Exchange

- Confidential -

Barriers to Cloud Computing

bull Psychological Barriers

bull Platform Lock-In Dependence

bull Security

bull Compliance

bull Costs

bull Application Architecture

ndash How do we design applications to take advantage of the cloud

ndash Grow and shrink on-demand (scalability)

ndash Data affinity

ndash Portability

ndash Efficiency

ndash Performance

ndash Fault-tolerance and self-healing

- Confidential -

The Prevailing Model Do You See the Problem

BusinessServices Tier

Back-upBack-up

Back-upBack-up

Data Tier

Messaging

B CA

- Confidential -

Analogy Car Wash

- Confidential -

All-In-One ldquoWashing Unitrdquo

- Confidential -

Scalability Through Parallelization

- Confidential -

Virtual Middleware Eliminate All Bottlenecks

Business tier

Co-locate all application components in a single server

Manage data and messaging in memory

- Confidential -

Scale-Out On Demand With No Code Changes

- Confidential -

Write to the Database in the Background

- Confidential -

Achieve Resiliency with Hot Fail-Over

Continuous High-Availability

Single high-availability model for all tiers

Automated failoverredundancy mechanism

ActiveActive ndash efficient use of IT resources

Failure Failover

BackupPrimary

- Confidential -

Supports Common Frameworks amp Languages to

Smooth Adoption and Increase Developer Productivity

C++

- Confidential -

Cloud computing is rapidly becoming serious business

bull ldquoWe expect that over the next several years the operation will

become a major business alongside our retail businessrdquo

ndash Adam Selipsky vice president Amazon Web Services

bull In the last two months of 2007 usage of Amazon Web Services grew

by 40

bull $131 million revenues in Q1 from AWS

bull 60000 customers

bull The majority of usage comes from banks pharmaceuticals and

other large corporations

- Confidential -

Amazon Web Services Traffic Over-Taking Retail Site

Source Amazon

- Confidential -

ldquoAdvancedrdquo Cloud Uses

bull Vertical and Specialized Clouds

ndash Compliance Laws Regulations

ndash Geography

ndash Industry Needs

ndash Technology Platform

bull Hybrid Clouds

ndash Cloudbursting

ndash Disaster Recovery Fail-Over Continuity

ndash Cloud spanning

ndash Cloud hopping

bull Cloud Exchange

- Confidential -

Barriers to Cloud Computing

bull Psychological Barriers

bull Platform Lock-In Dependence

bull Security

bull Compliance

bull Costs

bull Application Architecture

ndash How do we design applications to take advantage of the cloud

ndash Grow and shrink on-demand (scalability)

ndash Data affinity

ndash Portability

ndash Efficiency

ndash Performance

ndash Fault-tolerance and self-healing

- Confidential -

The Prevailing Model Do You See the Problem

BusinessServices Tier

Back-upBack-up

Back-upBack-up

Data Tier

Messaging

B CA

- Confidential -

Analogy Car Wash

- Confidential -

All-In-One ldquoWashing Unitrdquo

- Confidential -

Scalability Through Parallelization

- Confidential -

Virtual Middleware Eliminate All Bottlenecks

Business tier

Co-locate all application components in a single server

Manage data and messaging in memory

- Confidential -

Scale-Out On Demand With No Code Changes

- Confidential -

Write to the Database in the Background

- Confidential -

Achieve Resiliency with Hot Fail-Over

Continuous High-Availability

Single high-availability model for all tiers

Automated failoverredundancy mechanism

ActiveActive ndash efficient use of IT resources

Failure Failover

BackupPrimary

- Confidential -

Supports Common Frameworks amp Languages to

Smooth Adoption and Increase Developer Productivity

C++

- Confidential -

Amazon Web Services Traffic Over-Taking Retail Site

Source Amazon

- Confidential -

ldquoAdvancedrdquo Cloud Uses

bull Vertical and Specialized Clouds

ndash Compliance Laws Regulations

ndash Geography

ndash Industry Needs

ndash Technology Platform

bull Hybrid Clouds

ndash Cloudbursting

ndash Disaster Recovery Fail-Over Continuity

ndash Cloud spanning

ndash Cloud hopping

bull Cloud Exchange

- Confidential -

Barriers to Cloud Computing

bull Psychological Barriers

bull Platform Lock-In Dependence

bull Security

bull Compliance

bull Costs

bull Application Architecture

ndash How do we design applications to take advantage of the cloud

ndash Grow and shrink on-demand (scalability)

ndash Data affinity

ndash Portability

ndash Efficiency

ndash Performance

ndash Fault-tolerance and self-healing

- Confidential -

The Prevailing Model Do You See the Problem

BusinessServices Tier

Back-upBack-up

Back-upBack-up

Data Tier

Messaging

B CA

- Confidential -

Analogy Car Wash

- Confidential -

All-In-One ldquoWashing Unitrdquo

- Confidential -

Scalability Through Parallelization

- Confidential -

Virtual Middleware Eliminate All Bottlenecks

Business tier

Co-locate all application components in a single server

Manage data and messaging in memory

- Confidential -

Scale-Out On Demand With No Code Changes

- Confidential -

Write to the Database in the Background

- Confidential -

Achieve Resiliency with Hot Fail-Over

Continuous High-Availability

Single high-availability model for all tiers

Automated failoverredundancy mechanism

ActiveActive ndash efficient use of IT resources

Failure Failover

BackupPrimary

- Confidential -

Supports Common Frameworks amp Languages to

Smooth Adoption and Increase Developer Productivity

C++

- Confidential -

ldquoAdvancedrdquo Cloud Uses

bull Vertical and Specialized Clouds

ndash Compliance Laws Regulations

ndash Geography

ndash Industry Needs

ndash Technology Platform

bull Hybrid Clouds

ndash Cloudbursting

ndash Disaster Recovery Fail-Over Continuity

ndash Cloud spanning

ndash Cloud hopping

bull Cloud Exchange

- Confidential -

Barriers to Cloud Computing

bull Psychological Barriers

bull Platform Lock-In Dependence

bull Security

bull Compliance

bull Costs

bull Application Architecture

ndash How do we design applications to take advantage of the cloud

ndash Grow and shrink on-demand (scalability)

ndash Data affinity

ndash Portability

ndash Efficiency

ndash Performance

ndash Fault-tolerance and self-healing

- Confidential -

The Prevailing Model Do You See the Problem

BusinessServices Tier

Back-upBack-up

Back-upBack-up

Data Tier

Messaging

B CA

- Confidential -

Analogy Car Wash

- Confidential -

All-In-One ldquoWashing Unitrdquo

- Confidential -

Scalability Through Parallelization

- Confidential -

Virtual Middleware Eliminate All Bottlenecks

Business tier

Co-locate all application components in a single server

Manage data and messaging in memory

- Confidential -

Scale-Out On Demand With No Code Changes

- Confidential -

Write to the Database in the Background

- Confidential -

Achieve Resiliency with Hot Fail-Over

Continuous High-Availability

Single high-availability model for all tiers

Automated failoverredundancy mechanism

ActiveActive ndash efficient use of IT resources

Failure Failover

BackupPrimary

- Confidential -

Supports Common Frameworks amp Languages to

Smooth Adoption and Increase Developer Productivity

C++

- Confidential -

Barriers to Cloud Computing

bull Psychological Barriers

bull Platform Lock-In Dependence

bull Security

bull Compliance

bull Costs

bull Application Architecture

ndash How do we design applications to take advantage of the cloud

ndash Grow and shrink on-demand (scalability)

ndash Data affinity

ndash Portability

ndash Efficiency

ndash Performance

ndash Fault-tolerance and self-healing

- Confidential -

The Prevailing Model Do You See the Problem

BusinessServices Tier

Back-upBack-up

Back-upBack-up

Data Tier

Messaging

B CA

- Confidential -

Analogy Car Wash

- Confidential -

All-In-One ldquoWashing Unitrdquo

- Confidential -

Scalability Through Parallelization

- Confidential -

Virtual Middleware Eliminate All Bottlenecks

Business tier

Co-locate all application components in a single server

Manage data and messaging in memory

- Confidential -

Scale-Out On Demand With No Code Changes

- Confidential -

Write to the Database in the Background

- Confidential -

Achieve Resiliency with Hot Fail-Over

Continuous High-Availability

Single high-availability model for all tiers

Automated failoverredundancy mechanism

ActiveActive ndash efficient use of IT resources

Failure Failover

BackupPrimary

- Confidential -

Supports Common Frameworks amp Languages to

Smooth Adoption and Increase Developer Productivity

C++

- Confidential -

The Prevailing Model Do You See the Problem

BusinessServices Tier

Back-upBack-up

Back-upBack-up

Data Tier

Messaging

B CA

- Confidential -

Analogy Car Wash

- Confidential -

All-In-One ldquoWashing Unitrdquo

- Confidential -

Scalability Through Parallelization

- Confidential -

Virtual Middleware Eliminate All Bottlenecks

Business tier

Co-locate all application components in a single server

Manage data and messaging in memory

- Confidential -

Scale-Out On Demand With No Code Changes

- Confidential -

Write to the Database in the Background

- Confidential -

Achieve Resiliency with Hot Fail-Over

Continuous High-Availability

Single high-availability model for all tiers

Automated failoverredundancy mechanism

ActiveActive ndash efficient use of IT resources

Failure Failover

BackupPrimary

- Confidential -

Supports Common Frameworks amp Languages to

Smooth Adoption and Increase Developer Productivity

C++

- Confidential -

Analogy Car Wash

- Confidential -

All-In-One ldquoWashing Unitrdquo

- Confidential -

Scalability Through Parallelization

- Confidential -

Virtual Middleware Eliminate All Bottlenecks

Business tier

Co-locate all application components in a single server

Manage data and messaging in memory

- Confidential -

Scale-Out On Demand With No Code Changes

- Confidential -

Write to the Database in the Background

- Confidential -

Achieve Resiliency with Hot Fail-Over

Continuous High-Availability

Single high-availability model for all tiers

Automated failoverredundancy mechanism

ActiveActive ndash efficient use of IT resources

Failure Failover

BackupPrimary

- Confidential -

Supports Common Frameworks amp Languages to

Smooth Adoption and Increase Developer Productivity

C++

- Confidential -

All-In-One ldquoWashing Unitrdquo

- Confidential -

Scalability Through Parallelization

- Confidential -

Virtual Middleware Eliminate All Bottlenecks

Business tier

Co-locate all application components in a single server

Manage data and messaging in memory

- Confidential -

Scale-Out On Demand With No Code Changes

- Confidential -

Write to the Database in the Background

- Confidential -

Achieve Resiliency with Hot Fail-Over

Continuous High-Availability

Single high-availability model for all tiers

Automated failoverredundancy mechanism

ActiveActive ndash efficient use of IT resources

Failure Failover

BackupPrimary

- Confidential -

Supports Common Frameworks amp Languages to

Smooth Adoption and Increase Developer Productivity

C++

- Confidential -

Scalability Through Parallelization

- Confidential -

Virtual Middleware Eliminate All Bottlenecks

Business tier

Co-locate all application components in a single server

Manage data and messaging in memory

- Confidential -

Scale-Out On Demand With No Code Changes

- Confidential -

Write to the Database in the Background

- Confidential -

Achieve Resiliency with Hot Fail-Over

Continuous High-Availability

Single high-availability model for all tiers

Automated failoverredundancy mechanism

ActiveActive ndash efficient use of IT resources

Failure Failover

BackupPrimary

- Confidential -

Supports Common Frameworks amp Languages to

Smooth Adoption and Increase Developer Productivity

C++

- Confidential -

Virtual Middleware Eliminate All Bottlenecks

Business tier

Co-locate all application components in a single server

Manage data and messaging in memory

- Confidential -

Scale-Out On Demand With No Code Changes

- Confidential -

Write to the Database in the Background

- Confidential -

Achieve Resiliency with Hot Fail-Over

Continuous High-Availability

Single high-availability model for all tiers

Automated failoverredundancy mechanism

ActiveActive ndash efficient use of IT resources

Failure Failover

BackupPrimary

- Confidential -

Supports Common Frameworks amp Languages to

Smooth Adoption and Increase Developer Productivity

C++

- Confidential -

Scale-Out On Demand With No Code Changes

- Confidential -

Write to the Database in the Background

- Confidential -

Achieve Resiliency with Hot Fail-Over

Continuous High-Availability

Single high-availability model for all tiers

Automated failoverredundancy mechanism

ActiveActive ndash efficient use of IT resources

Failure Failover

BackupPrimary

- Confidential -

Supports Common Frameworks amp Languages to

Smooth Adoption and Increase Developer Productivity

C++

- Confidential -

Write to the Database in the Background

- Confidential -

Achieve Resiliency with Hot Fail-Over

Continuous High-Availability

Single high-availability model for all tiers

Automated failoverredundancy mechanism

ActiveActive ndash efficient use of IT resources

Failure Failover

BackupPrimary

- Confidential -

Supports Common Frameworks amp Languages to

Smooth Adoption and Increase Developer Productivity

C++

- Confidential -

Achieve Resiliency with Hot Fail-Over

Continuous High-Availability

Single high-availability model for all tiers

Automated failoverredundancy mechanism

ActiveActive ndash efficient use of IT resources

Failure Failover

BackupPrimary

- Confidential -

Supports Common Frameworks amp Languages to

Smooth Adoption and Increase Developer Productivity

C++

- Confidential -

Supports Common Frameworks amp Languages to

Smooth Adoption and Increase Developer Productivity

C++