1. Perspectives on Cloud Computing
A Tongue in Cheek Look at Cloud
And
Maybe Some Insight for Action
5/7/2010 Copyright: Crocus Hill Associates, All rights reserved

2. Clouds have had significant impact in our thinking and
philosophy forever – we all remember these great thinkers
Judy Collins* Simon and Garfunkel**
Bows and flows of angel hair and ice cream Cloudy
castles in the air The sky is gray and white and cloudy,
And feather canyons everywhere, I've looked Sometimes I think it's hanging down on me.
And it's a hitchhike a hundred miles.
at clouds that way I'm a rag-a-muffin child.
But now they only block the sun they rain and Pointed finger-painted smile.
snow on everyone I left my shadow waiting down the road for me a
So many things I would have done, but clouds while.
got in my way
Cloudy
I've looked at clouds from both sides now My thoughts are scattered and they're cloudy,
They have no borders, no boundaries.
From up and down and still somehow They echo and they swell
It's cloud's illusions I recall From Tolstoy to Tinker Bell.
I really don't know clouds at all Down from Berkeley to Carmel.
Got some pictures in my pocket and a lot of time to
kill.
* From ‘Both Sides Now’ * From ‘Cloudy’

3. They are now on the minds of this century’s
greatest business and IT thinkers
And thus the jumping off point for this presentation…

4. So what is this thing about Clouds anyway?
 Is it a way for Google and Amazon to get some money back from really poor
capacity planning and over buying hardware?
 Is it the next-failed, over-hyped thing; promising low entry costs and infinite easy
expansion of capacity ….
You know great innovations like:
– Bandwidth on Demand and the ‘Grid’
– SAAS
 Is it a new Buzz word for stuff that old codgers like me would remember as ‘Time
Sharing’ or ‘VM/CMS’?
 Is it the yellow-brick road to go back to the good ole days – you remember
Mainframe computing, shared resources and chargeback – Hot darn…
OR
 Is it a really new paradigm that optimizes our use of capital, simplifies our
operating environment and provides the ability to manage our applications and
infrastructure in a way that makes business and technical sense?

5. Is the Cloud a new way?
Does it provide some of the best of both ways?
The Mainframe Way The Server – Farm Way The Cloud Way?
 Shared resources  Dedicated resources  Shared resource pools
 Complex charge back  Straight forward  Fairly straight forward
 Big capacity chargeback acct.
increments  Small capacity increments  Small capacity
 Optimized capacity  Underutilized capacity increments
 Complex capacity and  Complex security, network  Better utilization of
performance and performance capacity
management management  Simplified capacity and
 Straight forward  Hideous disaster recovery performance
disaster recovery management ?
 Hope for more straight
forward disaster
recovery

6. So then the great debate –
Public Cloud vs. Private Cloud
Public cloud Private Cloud
 Pro’s  Pro’s
– Low entry cost – Extension and potential re use of
– Near infinite capacity existing resources
– Easy cloning – Better control / reduced exposure
– Global replication / distribution – Leverages current practices / expertise
 Worries  Worries
– Security / privacy – We still have data centers
– PCI / SOX / HIPPA . . . – Incremental improvement – not really
– Reliability / back up break out
– Performance management – Getting there: Conversions / limited
options
– Future pricing / lock in

7. Saas vs. Cloud vs. Traditional Model
Own
Private
Cloud
Cloud Traditional
Software Licensing
On premise
Perpetual license
Saas
Lease
Lease Own
Infrastructure
5/7/2010 7 Copyright: Crocus Hill Associates, All rights reserved

8. Saas vs. Cloud vs. Traditional – Pro / Con
Saas Cloud Traditional
 Pro  Pro  Pro
– Low entry cost - Total – Low cost entry point for – Lowest cost for high
variable expense
infrastructure scale requirement
– Software / Infrastructure
bundled – Larger sourcing options – Best sourcing options
– Evolving partner eco for software for software
system – Ability to exploit – Ability to exploit
– Lowest need for IT perpetual license perpetual license
Support advantages advantages
 Con – Easier path to Perpetual – Ability to ‘cap costs’*
– TCO high as usage climbs / premise model
– High exit barriers
 Con
– Low need for IT – Highest need for IT
– Limited best of breed
options infrastructure support support
– Limited but evolving  Con – High fixed / capital
integration capabilities – Limiting technology costs
– Limited option to convert (Linux, Windows)
to perpetual / premis – Integration burden on
model – No partner eco system the buyer
– Integration burden on
the buyer
5/7/2010 8 Copyright: Crocus Hill Associates, All rights reserved

9. How to Choose Depends on Where You Are
 Small business with no internal IT
– Consider Saas model but:
• Pick software with large eco system that will cover your needs
• Assure that you have the ability to ‘in source’ if you grow
• Be careful to stay away from multiple Saas agreements, integration will be a killer
– Move to cloud as costs rise and TCO rises in favor software ownership
 Medium sized growing business
– Develop application architecture for full business
• Pick integrated suites of packages for best integration
– Implement in cloud to lower entry costs
– As costs rise, move to traditional model – host where there are cost / service
advantages
 Large companies with legacy applications and infrastructure
– Consider moving applications with ‘high seasonality’ to the cloud
– Implement applications with uncertain capacity requirements in the cloud
– Consider moving test and certification environments to cloud if security / privacy
risks allow
5/7/2010 9 Copyright: Crocus Hill Associates, All rights reserved

10. For More Information
Additions, arguments, corrections?
Contact us:
Craig Bickel
craig629@comcast.net
612 978 3737 – Cell
612 216 2403 – Direct
5/7/2010 10 Copyright: Crocus Hill Associates, All rights reserved

11. For more information
Additions, arguments,
corrections or for a copy of this
presentation:
Contact us:
Craig Bickel
craig629@comcast.net
612 978 3737 – Cell
612 216 2403 – Direct
5/10/2010 11 Copyright: Crocus Hill Associates, All rights reserved