5. Topics The Future is the Cloud The Future is Cloudy Understanding the Cloud Hosting services Data Centers Colocation Virtualization X as a Service The Weather Report It’s coming – like it or not How big and when? How to weather the storm Adjustments to your business model The Cloud and ScanSource
6. What is “the cloud” ? The Cloud is a concept. Wide Area Network Diagram Cloud Computing is a model for enabling remote network access to a shared pool of computing resources (e.g., servers, storage, applications, and services) 3 Service models software as a service, platform as a service, and infrastructure as aservice 4 Deployment models private cloud, community cloud, public cloud, and hybrid cloud 5 Essential Attributes on-demand self-service, broad network access, resource pooling, rapid elasticity, and measured service Source: CompTIA
7. The Cloud is some of this and some of that. HostingLandscape Unmanaged Managed Colocation On Premises Custom Wholesale Retail Traditional IT Department Hybrid Hybrid Dedicated Standard Shared Shared Hosted
8. The Cloud is everywhere. HostingLandscape “The Cloud” Unmanaged Managed Colocation On Premises Custom Wholesale Retail Traditional IT Department Hybrid Hybrid Dedicated “The Cloud” Standard Shared Shared
9. 3 Service Models The Cloud is Alphabet Soup. Infrastructure as a Service (IaaS) Servers, storage, networks, and other fundamental computing resources required for running applications. Cooling, power, security (P&D), network access - “Ping-Power-Pipe” Platform as a Service (PaaS) Platform or environment upon which ISVs and developers can develop and deploy custom application software Focus on development and innovation without worrying about the infrastructure – hardware, O/S, middleware, web services, databases Build and/or host a web-based application for SaaS delivery Examples of Platforms: Microsoft Azure, Salesforce.com’s Force.com, and Google’s App Engine, Rackspace’sOpenStack Software as a Service (SaaS) Standard application software running remotely through a browser. Examples: Gmail, Google Apps, Microsoft Office 365 Other examples: Broadsoft (voice), Salesforce.com (CRM) Under development: Your Software as a Service End Users SaaS Software Developers PaaS Network Engineers IaaS
10. 4 Deployment Models The Cloud is virtual. Private cloud Private – on-premises or Co-Located build and operate their own private cloud infrastructures virtualized servers and thin client apps (maybe) Virtual Private Cloud may be hosted and/or managed by hosting company Community cloud Cloud resources shared by several organizations that have shared concerns or functions Still emerging Public cloud Provided by Hosting Companies a shared infrastructure accessible over the public Internet for cloud-based and remotely delivered services. Hybrid cloud a combination of two or more of the others – usually Private-on, Private-off and Public Hybrid clouds are the most common form of cloud computing implementation today Virtual Machine Virtual Storage Hypervisor Virtualized Switching Fabric Virtual Machine Virtual Storage Hypervisor Virtualized Switching Fabric
11. 5 Essential Attributes The Cloud is a promise to be fulfilled. On-demand self-service provision computing capabilities as needed Broad network access requires persistent network connectivity Resource pooling servers and storage are shared virtualization, multi-tenancy, load balancing this makes Cloud affordable Rapid elasticity expand and scale their technology consumption at will – more or less Measured service operational expense, recurring, predictable payment model only pay for what you use Tower Server Racks Source: CompTIA
50. Big – still in transitionCollaboration#1 General Ledger Collaboration#2 Compliance Billing Benefits 15% Desktop Payroll Recruiting Partner Portal Inventory Intranet Advertising EMail Web Site Bus.Unit #1 Supply Chain Collaboration Project Mgmt Bus.Unit #2 CRM 40% SaaS 9% Desktop Desktop CRM Blog Bus.Unit #3 Analytics Billing Accounting Bus.Unit #4 E-Commerce Payroll Conferencing Office IndustryApp #1 Server-Based (inhouse) 90% SaaS Presentation Advertising Presentation IndustryApp #2 45% Server Spreadsheet Social Public Co.#1 IndustryApp #3 SaaS 1% Server Document Personal Productivity Public Co. #2 IndustryApp #4 Dozens of Apps Small Firms Hundreds of Apps Big Firms
51. The Cloud is getting big. The Cloud is still small.. Statistics Gartner estimates global market for cloud computing $40.7 billion in 2011 $177 billion by 2015 $241 billion by 2020 Merrill Lynch estimates $160 billion by 2011 AMI Research estimates SMB cloud spending alone will reach $100 billion by 2014. SaaS revenue will grow 5 times faster than traditional packaged product. (which in serious decline) (IDC) 50 million physical servers in the world – as of Oct. 2010 By 2013 10% will be virtualized with 10 VMs per server Half of the 8M servers sold each year go into Data centers (Business Week) Google has 1M servers 10M in 10 years. Data Centers (public) 33,157 Worldwide 23,656 U.S. Regardless of the exact numbers or the exact definitions of what the “Cloud” really is… The Cloud is large and growing fast. Faster than any other area of IT spending. But… if Gartner is even close… Total spend on Cloud in 2010 is 2% of total I.T. spend. In 2015 it will be just 5% Apple’s New Data Center in N.C. 1 million sq ft Google Data Center A C / Chiller units
52. Disruptive Technology The Cloud is disruptive and scary. End User Customers see cloud as a means to disrupt… software licensing status quo hardware acquisition patterns obsolescence / replacement and upgrade schedules OpEx is advantageous to CapEx in many ways. Standardized Servers
53. Business Transformation The Cloud is sticky and viral. Make a business plan and write it down Begin to talk to your customers about it now Shift your customer base gradually As customers learn about Cloud applications they will expect you to respond. Don’t give it away – (WTMTM) Cloud Services tend to: Be “sticky” - they stay over time Be “viral” - they lead to other Cloud services Be commoditized more rapidly – the mystery goes out faster because of an abundance of hype and information. Wholesale Colocation Facility
54. Business Transformation There is money in the Cloud “Can I make money?” Consider a Cloud-based solution for certain businesses Change / grow / shrink rapidly Have a hosted offering for customers who ask Voice – Video Conferencing – Video Surveillance Remember, the Cloud is a service model, so… Sell Solutions that include Cloud Services along with your other services. Embrace a monthly billing model. You can charge more if you bill monthly. MSPs do this. Create a recurring revenue stream. Healthy MSP model: 30-40% or revenue should come from monthly services So, start with one customer and build a practice “How do I pay my sales people?” Think Agent model or Life Insurance model Year 1 – 10% / Year 2 – 5% / Year 3 – 0% Network Operations Centers
55. Business Transformation “I am the Cloud.” Own the relationship Don’t let your customers connect to the Cloud Provider directly Private Label your Cloud Product Offerings Don’t sell “The Cloud” The Cloud is just a new and (still) optional delivery method. You have new messages for your customers: “I can save you money.” “I can improve your business communications.” “I can provide system redundancy / data backup / data security / business continuity.” “My services include scalable resources – seasonal / project related.” “I am your Cloud provider.” Retail Colocation Facilities
56. Business Transformation The Cloud is [Your name here] “Be” the Cloud (to your customers) Don’t have to compete with Amazon or RackSpace When your customers think of the Cloud, they should think of [__Fill in your company name here __] To your customers, you ARE THE CLOUD. Sell the Cloud (Cloud Services) Basics – backup and recovery, raw data storage, e-mail by the seat, collaboration, synchronized “Drop Box” type service, Advanced – IaaS - Website hosting, Cloud Servers, … As a Service – Hosted VoIP, Video conferencing, Unified Communications, Video surveillance, others… Your Cloud Services – SaaS version of your App. implementation, training, MAC, on demand services, etc… Sell to the Cloud (Data Center)
57. Business Transformation The Cloud is in the building. “Be” the Cloud Don’t compete with Amazon or RackSpace When your customers think of the Cloud, they should think of you. To your customers, you ARE THE CLOUD. Sell the Cloud Basics – e-mail by the seat, collaboration, synchronized “Drop Box” type service, raw data storage, backup and redundancy Advanced – Website hosting, “Cloud” Servers, content delivery, As a Service – Hosted VoIP, Video conferencing, Unified Communications, Video surveillance, others… Your Cloud Services – implementation, training, MAC, add/remove resources on demand, Sell to the Data Center Most of “the Cloud” is still inside the enterprise’s four walls… or placed in a Colo by the Enterprise Get to know the market Learn from Vendor’s Data Center message Develop a specialty Switching, security, compliance,… Develop a Solution Set Virtualization/Server/Switching/Storage 95%
58. Business Transformation The Future is the Cloud, like it or not So, be nimble – be prepared Change is inevitable – so is Cloud Computing It will affect each of us differently You can weather the storm if you are prepared! We can help…
59. Your Cloud Distributor The Cloud is Channel Ready. We are your connection to Cloud Vendors. Education and understanding of the technology, solution sets and opportunity. Consolidate resources for Cloud-based Solutions Hardware, software, cloud services, professional services, etc… Cloud Solution Set Virtualization/Server/Switching/Storage Storage/backup/recovery Synchronized drop box E-mail by the seat Software as a Service “Solution as a Service”
Be the Cloud I’m not suggesting that you compete with Amazon or RackSpace. But you also don’t want to be the cobblers children who had no shoes. Embrace this technology in your own company. Sell the CloudSell to the Cloud
Be the Cloud I’m not suggesting that you compete with Amazon or RackSpace. But you also don’t want to be the cobblers children who had no shoes. Embrace this technology in your own company. Sell the CloudSell to the Cloud