RightScale Conference Santa Clara 2011: RightScale powers the world’s leading cloud deployments – both public and private – and has broad visibility into how real companies continue to leverage cloud in their IT strategies every day. Michael will give an overview of where RightScale sees the cloud market heading as of late-2011 into 2012 and will cover: · Statistics regarding cloud usage and adoption · Market drivers and blockers and industry trends · What’s new on the multi-cloud/hybrid cloud front · What to expect in 2012 Building on the theme of real cloud experience, this introduction will provide a framework for the day’s discussions among customers, partners, and analysts.

1. Introduction – The State of the Cloud
Michael Crandell – CEO, RightScale
Watch the video of this presentation

2. Welcome
• Thanks to everyone here, thanks to CCExpo
• Announcements & reminders
• #RightScale #CCExpo on Twitter
• Agenda
• 9:15a-12:15p – State of the Cloud, Stephen O’Grady, Customer Stories
• 12:15p-1:30p – LUNCH
• 1:30p-5:15p – 20 breakout sessions from RightScale and partners
• Evening reception at Parcel 104
• Shuttle buses running at 5:30pm

3. Thank You Partner Sponsors!
codeFutures

4. Real Cloud Experience. Shared.

5. Social, Mobile, Cloud

6. Social, Mobile, Cloud
“Three interdependent forces that power the biggest
wave of growth, change, and destruction … in the
high tech industry.”
– Jean-Louis Gassée

7. State of the Cloud
• Big Switch
• New IT Stack
• Third Revolution

8. State of the Cloud
• Big Switch
• New IT Stack
• Third Revolution
Cloud is not a fad. Cloud is not a trend.
Cloud is a requirement.

9. Cloud circa 2006
• Amazon EC2 – Public IaaS cloud
• Technical:
– Agility
– Infinite scale
– Automation underlying everything
• Business:
– On-demand
– Op-ex vs. Cap-ex
– Cost benefits of scale

10. Cloud circa 2008
From 50 to 3500 servers

11. Cloud Today
• Private internal / private hosted / public / hybrid
• Business benefits vary with deployment models
– No simple rule of what costs less, op-ex not always preferred
– Sometimes control is paramount
• Technical benefits same:
– Automation + API to allocate, manage and decommission resources
on-demand, from compute to storage to network
– Even in-house clouds offer near infinite scale if supply chain pipeline
keeps ahead – standardization of resources allows pre-provisioning
w/o knowing exact consumer

12. What is a Cloud?
Automated, scalable, on-demand
compute, storage, network resources
• Highly effective layers of abstraction
• Each layer achieves scalability &
reliability through uniformity
• True clouds are API-driven
Virtualization alone does not a cloud make

13. Journey to Cloud
Cloud Computing
Dynamic/Elastic/Pay per Use
Resource Pooling
Shared workloads
Automation
Rapid Provisioning
Virtualization
Increase utilization
Standardization
Improve efficiency
Consolidation
Physical infrastructure
Traditional IT
Siloed/over capacity/server sprawl

14. Goodbye SPI
• SaaS/PaaS/IaaS definition of cloud is outdated
• More a definition of logical layers than market reality

15. New Model
• New reality is a blending of all these cloud models
• Examples: AWS, Google, Azure, Zend, CloudFoundry

17. One ‘Cloud’ – Many Resource Pools
London Amsterdam
Chicago Beijing
Shanghai
Dublin
Seattle
Seoul
NYC Area
SF Area
Tokyo
DC Area
Fukuoka
Dallas Hong Kong
Hyderabad
Singapore
Houston
Private Clouds Public & Managed Clouds
Amazon Web Services Rackspace
Datapipe SoftLayer
Yahoo! Japan / IDCF Tata
Korea Telecom UnGeo
Logicworks

18. RightScale Customers

19. RightScale Growth

20. Users Demand Flexibility
• ServerTemplates = 67,000 (2.5X ’09)
• RightScripts = 976,000 (10X ‘07)
• 83% increase in users-per-account since ‘08
• Average cost today = $0.61/hr.
3% 17%
8%
57% 13%

21. Nov-06
Dec-06
Jan-07
Feb-07
Mar-07
Apr-07
May-07
Jun-07
Jul-07
Aug-07
Sep-07
Oct-07
Nov-07
Dec-07
Jan-08
Feb-08
Mar-08
Apr-08
May-08
Jun-08
Jul-08
Aug-08
Sep-08
Oct-08
Nov-08
Dec-08
All Rightscale Users
Jan-09
Distinct Cloud Providers
Feb-09
Multiple Resource Pools
Mar-09
Apr-09
May-09
Jun-09
Jul-09
MultiCloud Dominates
Aug-09
Sep-09
Oct-09
Nov-09
Dec-09
Jan-10
Feb-10
Mar-10
Apr-10
May-10
more than one cloud resource pool = 84%
Jun-10
Jul-10
Aug-10
Sep-10
Oct-10
Nov-10
Dec-10
Compute power managed by companies utilizing
Jan-11
Feb-11
Mar-11
Apr-11
May-11
Jun-11
Jul-11
Aug-11
Sep-11

22. Challenges You Face
• Visibility
• Standardization
• Self-Service

23. Visibility
• Shadow IT / Rogue IT / IT leakage
– For every cloud project you know about, there
may be 3-5 others you don’t know about
(Forrester)
• Not rebellion, but revenue & productivity
• You can give up on trying to stop it
• Why you should be concerned:
– Quality? E.g. high availability & BCDR
– Security & compliance
– Billing issues – what are you spending?
– Account sprawl, user sprawl
• Throw in multiple clouds & it gets worse

24. Standardization
• Cloud builds are everywhere
– Machine image & workload sprawl
– Config language smorgasbord
– Puppet, Chef, DIY open source provisioning
– Almost limitless cloud deployment options
• Accidental tourist in cloud
• How can IT support this?
• Heading down track of dev meets ops train wreck.

25. Self-Service
• IT can be the hero, agility with control
• Provide standardized builds with
operational excellence
• Legacy management approaches are not
designed for cloud
• Need cloud management that provides:
– Automation
– Library of solutions that can be shared
– Visibility & governance

26. Conference Campaign
• Build social media/twitter micro-site
• Get people talking - twitter integrated
• 10 days before conference
• Boost with advertising campaign
What we need:
• A microsite with twitter integrated
• Scalable and we need it….
• FAST!