Randy Bias - Presentation at Emerging Communications Conference & Awards (eComm 2011)
1.
2. The Public Cloud Has Won
Web-scale clouds are happening now ...
don’t be left in the cold
Randy Bias @randybias
Jun 27th, 2011 @cloudscaling
eComm - SFO
19. First Gen Carrier Clouds
“Enterprise” not “web-scale”
Expensive & Complex
20. First Gen Carrier Clouds
“Enterprise” not “web-scale”
Expensive & Complex
NOT Agile
21. First Gen Carrier Clouds
“Enterprise” not “web-scale”
Expensive & Complex
NOT Agile
Focus on IT buyer
22. First Gen Carrier Clouds
“Enterprise” not “web-scale”
Expensive & Complex
NOT Agile
Focus on IT buyer
Virtualization 2.0, not cloud
23. First Gen Carrier Clouds
“Enterprise” not “web-scale”
Expensive & Complex
NOT Agile
Focus on IT buyer
Virtualization 2.0, not cloud
Bottom Line Focus
24. First Gen Carrier Clouds
“Enterprise” not “web-scale”
Expensive & Complex
NOT Agile
Focus on IT buyer
Virtualization 2.0, not cloud
Bottom Line Focus
Looking back, not forward
34. Bookseller in Top 10 IT services by 2016?
1 IBM $37,347
2 HP $34,678
3 Fujitsu $26,935
4 CSC $16,281
5 Accenture $15,555
6 Capgemini $11,255
7 Hitachi $11,050
8 Ericsson $11,031
9 AWS $10,465
10 NTT Data Corporation $10,425
Source: servicestop100.org - 2010 top 100 IT services businesses by service revenue
36. Capital Expense (Initial)
Web-scale vs. Legacy Cloud
$4,000
Cost per Sellable $3,216
‘VMU’ $3,000
(m1.small, 1.7GB $2,000
RAM, 1 vCore)
$1,000
Web-scale $382
Legacy $0
Source: Cloudscaling confidential financial models for IaaS clouds
37. Operational Expense (Labor)
Web-scale (1500:1) vs. Legacy (300:1)
Servers : IT Headcount
$150M
$113M
$75M
$38M
$0M
Year 1 Year 2 Year 3 Year 4 Year 5
Web-scale Legacy
Source: Cloudscaling estimates of VM:admin based on known IaaS deployments
74. Bottom Line
Massive Disruption
Legacy cloud biz model is stillborn
Carriers have inherent advantages
Web-scale + Carrier advantage = Win!
Carpe Diem