The keynote presentation discusses how cloud providers are impacting traditional data centers. It notes that as companies grow from startups to established enterprises, their hosting needs change from fully public cloud to hybrid models. The presentation outlines the tradeoffs of different hosting options like owning your own data center, colocation, managed hosting, and public cloud. It argues that a hybrid multi-cloud approach combining on-premises, dedicated, managed, public and other specialty clouds provides the most flexibility, cost savings, and ability to put the right workload in the right environment. Case studies are presented showing how hybrid cloud delivered major cost reductions and performance gains for Explore.org and enabled critical security and compliance requirements for Samsung. The presentation concludes that

1. HOW CLOUD PROVIDERS ARE PLAYING
WITH TRADITIONAL DATA CENTERS
MORNING KEYNOTE:
October 2, 2018
October 2nd
CAPRE’S 6TH ANNUAL TEXAS DATA CENTER SUMMIT
Emil Sayegh, CEO, Hostway Services, Inc.

2. The Case For Cloud
Classic, two-tiered architecture
2
YOUR TRAFFIC
Firewall
Server
Server
Server
One DC
START UP

3. 3
One DC
Web Server
Web Server
Web Server
Web Server
Firewall Proxy
YOUR TRAFFIC
Nice, Easy Growth Phase
START UP EASY GROWTH

4. The App is Trending!
4
Firewall
One DC
Web Server
Web Server
Web Server
Web Server
DB Server
DB Server
Proxy
YOUR TRAFFIC
START UP EASY GROWTH TRENDING

5. 5
Web Server
Web Server
Web Server
Firewall Proxy
Multiple DCs
Web Server DB Server DB Server
DB Server
DB Server
DB Server DB Server
YOUR
TRAFFIC
Quick! Fix the Database!
START UP EASY GROWTH TRENDING CRUNCH

6. Panic!
6
START UP EASY GROWTH TRENDING CRUNCH PANIC!!!
DC 1
DC 2
Web Server
DB Server
Web Server
DB
Server
DB Server
DB Server
DB
Server
DB Server
DB Server
DBServer
Firewall
Proxy
DB
Server
DB Server
DB Server
YOUR TRAFFIC

7. But…IT is Hundreds of Applications…
7
Databases
CRM
ERP
Websites
Blogs
Shopping Carts
Forums
CMS
Wikis
Big Data
Streaming
Security
Photo Galleries
Email/Webmail
Ticket/Support
Accounting
Test Dev
Mobile Apps
Many More…

8. With Hundreds of Requirements
8
SLAs
SLAs SLAs
Regulations
Reliability
Revenue
C
USTO
M
ER
EXPERIENC
ESecurity
Costs
HIPAA
PCI
Speed to
Market
COMPLIANCE
Performance
Performance
Performance
Security
DDOS Protection
HITRUST
FISM
A
FEDRAM
P
GDPR

9. Market Trend
9
ON PREMISES /
PRIVATE
OFF PREMISES /
PRIVATE
OFF PREMISES / PUBLIC

10. The choices for
hosting have
become
confusing and
daunting.
Too Many Choices
10

11. It Is All About Trade-Offs
11
Home Owner
(Own DC, DIY)
Rental Home
(Colocation)
Apartment
(Managed Hosting)
Hotel
(Public Cloud)

12. It Is All About Trade-Offs
12
Home Owner
(Own DC, DIY)
Rental Home
(Colocation)
Apartment
(Managed Hosting)
Hotel
(Public Cloud)
LEGACY BACK OFFICE
APPS
Legacy ERP, OSS,
Workflow,
Custom SW Apps
CUSTOM APPS
ERP, OSS, Workflow,
Custom SW Apps,
Complex Websites,
Regulatory,
Compliance, Crypto
PACKAGED APPS
SaaS Applications,
Websites, Regulatory,
Compliance, Databases,
Big Data, Blogs, Wikis
STANDARD APPS
Transient Workloads,
Test/Dev, Social Media
Aps, Workspaces, CRM,
Email
Putting the Right App In the Right Place

13. 13
Own DC/DIY
• You own it and it requires lots of capital
• IT staffing is your problem now (24x7x365)
• Spending Opex and Capex on non-core
in-house expertise
• Pulls focus to real estate, instead of your
application
• Low economies of scale
• Must design your scaling and security
configuration
• You have to keep up with obsolesce risks
Weaknesses
• Total control, including facility location
• Maximum customization
• Security and scaling are as good as you
design them
Strengths

14. 14
Co-Location
• Requires significant non-core,
in-house IT expertise (24x7X365)
• Pulls focus away from your application
• Low economies of scale
• Long-term contracts
• Must design your scaling and security
configuration
• Your support comes from Google search
sometimes
Weaknesses
• Maximum customization and control of
Servers, Network, and Storage
• Control over vendors
• Security and scaling can be as good as
you design it
• Full control over facility location
Strengths

15. 15
Managed Hosting
• On-demand billing is non-standard on
compute
• Scale on a per-server basis; requires
foresight and lead-time
• Limited control over facility location,
types of hardware, and network
providers
• Can be difficult financially for start-ups
• Works best when combined with some
expertise
• Mature, well-understood platform that
works
• Uptime is no longer your responsibility
with 24x7 application support
• Security compliance and consulting
services available
• Customization to match needs
WeaknessesStrengths

16. 16
Cloud, Elastic Computing, On-Demand
• Must trust cloud for uptime, performance,
and scale
• Overpaying 3X for constant workloads, or
running legacy application
• Limited software flexibility
• Regulatory and compliance limitations
• Security tied to the platform
• Limited control over facility location
• Support for only what’s included in the
system
• Flexible billing
• Scalability built-in
• Easy to get started
• Lets customer focus on their application
• No system administration expertise
required
WeaknessesStrengths

17. Expertise, Maturity, and Scale Matter
17
Startup SMB &
Departments
Hyper Growth
web 2.0
Company
Enterprise/
Large Scale
COMPANY TYPE
EXPERTISE
Cloud Managed &
Cloud
Managed &
Cloud
In-House/
Colo/
Dedicated
/Cloud
In-House/ColoIn-House/ColoIn-House/Colo
Colo,
Dedicated &
Cloud
Dedicated
&/or Cloud
Software
Development
Sys-Admin
Large
Infrastructure
+
+
Dedicated
&/or Cloud
Dedicated &
Cloud
Managed &
Cloud
SCALE

18. Needs Can Change!
18
Cloud Cloud +
Dedicated
DIY
START-UP
Require More
Flexibility or to
Save Money
Grow to Find
Economies
of Scale
Cloud +
Dedicated
Dedicated Cloud +
Dedicated
ESTABLISHED
Require More
Scalability
Colo/DIY Dedicated
Cloud +
Dedicated
START-UP
Require Less
Capex
Require More
Scalability

19. Meet the Hybrid Multi-Cloud
19
PRIVATE
PUBLIC
ON PREMISES
DEDICATED
MANAGED
COLOCATION
ü Decreases Spend
ü Delivers Choice
ü Increases Flexibility
ü Accelerates Deployment
ü Improves Reusability
ü Speeds Innovation
SPECIALTY
PUBLIC
HYBRID

20. © 2018 Hostway
20
Decreasing Spend While
Improving Performance
About Explore.org
• Multimedia organization that
provides live nature cams, wildlife
photos, and educational films
The Situation
• Very high costs ($160K/month)
• Growth limitations
• Public cloud only
• Multiple countries
• Application performance challenges
© 2018 Hostway

21. © 2018 Hostway
21
Decreasing Spend While
Improving Performance
The Solution
• Hybrid solution managed globally across
three continents
• Managed dedicated GPU servers
The Results
• Decreased IT spend with 69% lower costs
• Increased business agility
• 20% performance improvement
• On-demand scale architecture
• Embedded advertisement capabilities
© 2018 Hostway

22. © 2018 Hostway
22
Making History Via Smart Security
and Compliance Strategies
About Samsung
• Leading provider of Smart TVs
The Situation
• One of the largest IoT deployments
• Needed a solution that could scale based
on unique traffic patterns
• Needed a global security and compliance
solution to enable PCI accreditation and
safely sell content through the Smart TV
app
Image from Samsung© 2018 Hostway

23. © 2018 Hostway
23
Making History Via Smart Security
and Compliance Strategies
The Solution
• Fully-managed hybrid cloud
• Fully-managed security and compliance
The Results
• Decreased IT spend and improved
performance
• Enabled PCI accreditation—a first for any
Smart TV; announced at CES in January 2018
• 3 billion packets inspected and 600 cases
reviewed with zero escalations to Samsung
Image from Samsung© 2018 Hostway

24. Why is Hybrid the Answer?
24

25. The Best of Both Worlds
25
Choice & Scalability
Flexibility
Right Tool, Right Workload Placement
Cost

26. 26
Hybrid Eliminates
Public Cloud Concerns
OVER PAYING
DATA ISOLATION
PERFORMANCE
CUSTOMIZATION
REGULATORY

27. The Third-Generation Cloud
27
CO-LOCATION PUBLIC CLOUD HYBRID MULTI-
CLOUD

28. The Experts Favor Hybrid Cloud
28
The landscape of cloud adoption is one
of hybrid clouds and multiclouds. By
2020, 75% of organizations will have
deployed a multicloud or hybrid cloud
model.*
Using both public and private
infrastructure,…are the endgame for
most organizations today. This
approach avoids vendor lock-in and
enables enterprises to leverage the best
attributes of each platform…”
*Gartner: Making Lots of Money in the New World of Hybrid Cloud and Multicloud Published: 7 September 2018

29. 29
Developing Your Strategy
TOO EASY TO GET LOST BY:
▶ Not focusing on where you deliver value
▶ Not partnering with experts for non-core technologies
▶ Overspending based on cloud hype
▶ Locking into false choices
▶ Spending valuable time on wrong details
▶ Delayed thinking about scale & architecture
It is critical to design the right workload placement so
your applications can grow safely and economically.

30. © 2018 Hostway
30
20
years of technology
experience
10
state-of-the-art data
centers across the globe
Proven leader in managed IT infrastructure
for compliant, mission-critical applications,
serving thousands of top brands with
solutions that:
• Decrease IT Spend
• Mitigate Risk
• Increase Business Agility
Brands Worldwide Trust Hostway
for Compliant, Mission-Critical Hosting
Recognized by Gartner for Managed Hybrid Cloud Hosting
© 2018 Hostway

31. Questions?
31

32. Basic Hybrid Architecture Example
32

33. Advance Hybrid Architecture Example
33

34. Discussion Points
• Economics of the cloud: Should everything move to the cloud?
• Workload placement: Amazon, Azure, Google, Hybrid, or remain on premise?
• How companies are approaching the various cloud offerings (public, private, hybrid, etc)
• Google, Azure, Amazon client offerings that might not be otherwise offered
• Cloud Agility Making the impossible a reality
• Migration to the cloud: Getting over regulatory and compliance challenges
• Actual cloud migrations: What went right, missteps, and key takeaways
• What hybrid cloud models work in production environments?