Monetizing Cloud Apps

Monetizing Your Use of the Cloud, One
Application at a Time

Sam Somashekar
Vice President, Marketing and Business Development
July 2011

Copyright © 2011 Kaavo. All rights reserved. 0

Cloud Computing Adoption is Rising
By 2020, Forrester
estimates*:
► Public cloud market
size: USD 159.3B
(USD 25.5B in 2011)
► Virtual private cloud
market: USD 66.4B
(USD 7.5B in 2011)
► Private cloud market
at USD 15.9B (USD
7.8B in 2011)
* Source: InformationWeek News Network, April 26, 2011


MSPs Can Capitalize on Cloud Revenue Streams
► Infrastructure-as-a-Service (IaaS)
• Rent out excess capacity on top of shared infrastructure
► Operations Management Services
• Stand up development / test environments at will
► Application Deployment Services
• Migrate/deploy customer applications into production cloud
environments
► Application Load Management Services
• Throttle cloud resources based upon application load
► Disaster Recovery / High Availability Services
• Application recovery testing
• Application re-deployment, dynamic recovery
► All services are preconfigured, tested, and repeatable


Operational Challenges to Cloud Monetization
MSP Concerns

• How can I group infrastructure usage costs
Accounting on a per application basis?

• How do I secure customer applications in
the cloud?
Security and Data Privacy • How do I secure application data in the
cloud?

• How do I know which applications are
accessing my cloud resources?
Transparency • How are customer applications consuming
my cloud resources?

• How do I deploy/re-deploy customer
applications after I obtain VMs?
Ease of Deployment • How can I migrate legacy customer
applications to my cloud?

• How do I ensure customer applications are
Performance, Run-Time Service Level
meeting usage demands?
Management • How do I recover from and prevent failures?


Adopting the Cloud Involves Manual Work
Software-as-a-
Service
SaaS • Salesforce.com
Kaavo Manual
Application and • Gmail

Simplifies Deployment Steps Custom
Workload Management
Cloud Apps
Adoption (Kaavo) Platform-as-a-Service

PaaS • Force.com
• Google AppEng
• Heroku

Public Cloud Private Cloud
• Amazon EC2 • Abiquo
• GoGrid • Cloud.com
• IBM Infrastructure as a Service (IaaS) • Eucalyptus
• Rackspace • IBM
• Terremark • VMWare
• Verizon

Datacenter
• Cisco Datacenter with
• Dell
• EMC Virtualization Datacenter with
• HP
• VMWare Virtualization


Kaavo – The Missing Piece for Complete Cloud
Lifecycle Management
Application-centric cloud
management solutions deliver
single-click deployment
automation and unified service
level management of complex
applications across public,
private, and hybrid clouds.

Benefits
•Lower Costs
•Speed Time-to-Market
•Raise Service Quality


MSPs Gain Advantage with Kaavo-Enabled Value-
Added Managed Services
Preconfigured and Tested Managed Services
► Application-Aware High Availability: Actively maintains uptime based upon
the requirements of the covered application
► Enhanced Remote Failover: Integrated automation and third-party tools
provide reliable application-aware failover to remote datacenters
► Fully Automated Disaster Recovery: Orchestrates failover from onsite
datacenter to MSP cloud, taking into account application and service
requirements
► Application-Aware Automatic Scaling: Scale application deployment and
performance based on service level objectives rather than infrastructure
loading
► Run-Time Service Level Management: Automate scheduled and unscheduled
application production management tasks to guarantee high service levels
(e.g. add or remove cloud-based resources dynamically)
► Application Accounting and Security: Map accounting to cloud resource
utilization per application or workload; auditing and access control


Application Deployment & Management
VM Middleware Post-
Deployment VM Acquisition
Configuration Deployment Configuration

Run-Time Scheduled Events
Dynamic Workflow Maintenance
Events Responses Tasks
Management

Amazon Abstracts the nuances of
each cloud provider, while
Rackspace exposing provider features
System
Definition
IBM
File

MSP IaaS
IMOD VMware
Offering

VCD

Cloud.com
Eucalyptus


Kaavo Removes Operational Challenges
MSP Concerns Kaavo Solution

Accounting Application-centric metering

Encryption for cloud-based application
Security and Data Privacy data; secure connectivity setup; best-
practice security design; access control

Audits; application-centric multi-cloud
Transparency
resource visibility

Single-click best practice migration and
Ease of Deployment deployment of applications; offsets lack
of organizational IT knowledge

Performance, Run-Time Service Level Autopilot; application-centric
Management accounting; best practice tuning


Kaavo – Real Value to MSPs
 Lower the deployment cost, risk, and time of applications in the cloud
Lower Costs, – Up to 30% reduction in administration costs
Improve Time To Market – Up to 40% reduction in production support efforts
– Up to 30% reduction in time-to-market

 Dynamically manage run-time service levels and improve service
quality by up to 20%
Improve Quality of Service
 Higher SLA levels than through either self-management or outsourced
operations

 Higher application, data and user security
 Unambiguous implementation of customer processes
Security
 Guaranteed and verifiable certification of adherence for compliance
audits

 High application availability, improved disaster response rates
Process Automation  Improved business agility
 Lower service contract pricing


Why Kaavo? – Customer Success Stories

"We have begun to deploy and manage our own mission-
critical applications (CapCal, Cloud Lab and Browser Lab) on
Kaavo and it solves a whole bunch of issues for us while
opening up some amazing new possibilities. I've been waiting
for something like this for a long time, I just didn't expect it to
be so awesome." Randy Hayes, Founder CapCal
http://webinars.kaavo.com/Cloud-Testing-01-25-2011/Reduce-Costs-and-
Maximize-Efficiency-with-Virtual-Test-Lab-25-Jan-2011.html

“At Sellpoint we use Kaavo’s IMOD application for managing
our complex mission critical infrastructure. IMOD makes it
easy for us to manage and support our cloud infrastructure."
Sudhir Kulkarni, CTO and VP Engineering, SellPoint
http://demos.kaavo.com/SellPoint/Kaavo-Customer-Success-Story.html


Why Kaavo? – Accolades from Leading Media Sources

► 6 Cloud Computing Rising Stars – SIIA
► 15 Cloud Computing Firms to Watch – internet.com
► Cool Vendor in Cloud Management – Gartner
► Top 20 Cloud Computing Startup – InformationWeek
► 15 Cloud Computing Companies to Watch – NetworkWorld
► Top 10 Cloud Computing Startup – TechTarget


Why Kaavo? – Competitive Position / Differentiation

► Top-down approach for the deployment and management of an entire
application or workload, with guaranteed order of execution
• A “controller” approach not impeded by application, server image, or deployment
model changes
► Standardized application deployment across clouds, enabling “cloud
balancing” and facilitating migration to the cloud and between clouds
• Supports all major public and private cloud providers
• Abstracts the nuances of each cloud provider from the user while exposing individual
features
• OMG Cloud Standards Customer Council (CSCC) founding sponsor
► Monitoring of application deployments for defined events and automates
responses with complex actions
► An enterprise solution for specifically deploying and managing cloud-based
applications, and is not a “cloud-washed” datacenter automation tool for
cloud lifecycle management
► Application deployment and management with other orchestration tools are
complex and limiting


THANK YOU


APPENDIX


Company Background
► Headquartered in Stamford, CT
► Founded in November 2007 by enterprise IT veterans with significant
experience in delivering and managing secure, mission critical IT
applications
► Since the launch of Kaavo’s flagship product, IMOD, in January 2009,
Kaavo has received many accolades from leading industry sources,
customers and partners
► Key partnerships and customers include:
• IT Services providers: Cloud Optimization Group, IBM, NIIT, Wipro
• Cloud Infrastructure Partners: Amazon, Cloud.com, Eucalyptus, IBM,
Rackspace, Terremark
• Cloud Technology Partners: Citrix, VMWare
• ISVs: Canonical, Grid Robotics
• Users: small and large across industries such as government, education,
online media, insurance and IT service providers


Application Deployment & Management
VM Middleware Post-
Deployment VM Acquisition
Configuration Deployment Configuration

Run-Time Scheduled Events
Dynamic Workflow Maintenance
Events Responses Tasks
Management

Best-practice methodology
captured in a single XML file


Kaavo Enables Customer Scenarios
Kaavo provides application-centric cloud management software to deliver
single-click deployment automation and unified service level management
of complex applications across public, private and hybrid clouds
Single System Definition File captures all information regarding
Unified Management
application deployment and run-time management

Cross platform (OS) support for dynamically creating and executing code
Cross Platform Support
in any programming language in response to events

Deployment of an application across multiple clouds (public, private, or
Distributed Deployment
hybrid) and ability to manage complex custom distributed deployments

Intuitive, central interface for single-click deployment and lifecycle
Ease of Use
management of complex multi-tier applications

Automatic Resource Automated resource management for planned/unplanned events (i.e.
Management adding/removing resources)

Security and Workflow Encryption of persisted data in the cloud; workflow automation to handle
Automation run-time exceptions


Representative Kaavo Customers
► Enterprise
• US Government
• Large US insurance company
• Large media company
• Education (school district)
• Finance
• Technology service providers
► Channel partners: IBM, NIIT, Wipro
► ISVs: Canonical, CapCal
► Online (SMB)
• Website traffic rose 100% in 2010 from 2009
• Registered users rose 50% in 2010 from 2009
• 60-80 new online sign-ups per month
► Overall revenues rose more than 500% in 2010 from 2009
• 2011 is looking even better


SellPoint
Help real people sell real properties FAST!


SellPoint Infrastructure Description

► 4 Million hits/day and 8 TB/month peak
► Proprietary SaaS application: Apache / Tomcat
► Application re-architecture: Hybrid (cloud and hosted)
► Each cloud instance self-sufficient: data pushed hourly
Active Product Tour Engagement Trend
5,000,000

4,000,000

3,000,000

2,000,000

1,000,000

-
Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09

Opens Minutes


Kaavo Helps SellPoint Manage in the Cloud
► Capacity: On-Demand scaling and dynamic provisioning
• Holiday shopping: Peak in Q4, cliff in Q1
• New manufacturer clients
• New products
► Automated order-of-operations deployment and management within test and
production environments
• Keep costs down: Paying for usage, and IT team size (reduction by 30% of manpower
costs)
► 60% fixed-cost savings using elasticity
► Time-to-Market
• Customized to about 160 retail sites and go-live schedules
• Rapid releases and change management
► Security
• Only public domain data on cloud
• Confidential data on private hosting
► Reliability: Leverage redundancy and cloud-to-cloud
► Runtime management and monitoring


For More Information…

► Technical Documentation: http://wiki.kaavo.com
► Overview of Cloud Space and how Kaavo fits in:
http://demos.kaavo.com/Cloud-Architecture/End-to-End-Cloud-
Solution.swf (less than 5 minutes)
► High Level Kaavo Technology Overview:
http://demos.kaavo.com/IMOD-Tech/IMOD-Tech-
Overview_controller.swf (less than 5 minutes)
► Demo of Kaavo Solution:
http://demos.kaavo.com/Short-
Demo/Kaavo_IMOD_Demo.swf (less than 3 minutes)
► Training webinars and demos: http://www.youtube.com/kaavoinfo


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