cisco openstack private cloud partner overview june 2015 ww services partner organization

Cisco OpenStack Private CloudPartner Overview

June 2015

WW Services Partner Organization

2© 2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential

Cisco OpenStack Private Cloud summary (1/2)CUSTOMER OPPORTUNITY

Who are the target customers?

• Customers that are interested in experimenting with OpenStack, focused on private cloud, and price conscious

• Target verticals include Web-Scaling companies, Big Data companies, Retail, Financial Services, Healthcare, Telco, Media, Education

Who is the buying center?

• Primary target: CTO, Enterprise Architect• Primary influencer: CFO• Primary decision maker: CIO

What are customer pain points?How do customers benefit from Cisco OpenStack Private Cloud?

• Customer needs flexible and scalable computing resources; want to pay ‘by the drink’

• Customer is interested in cloud; but public cloud does not serve security, compliance needs and complex workloads

• Customer lacks ability and resources to build out DIY private cloud on their own

• Private cloud which provides scalability of cloud with ‘as-a-service’ consumption model

• As a private cloud created for the customer, it can be built for security and compliance needs

• Cloud is built and managed remotely by COPC, so there is no need for large internal IT department

What are primary drivers for customers’ COPC purchases?

• Customer’s desire to shift to private cloud and changing consumption model.

• Customer interest in experimenting with OpenStack

CISCO COPC OFFER

Offer description:

Cisco OpenStack Private Cloud offers “OpenStack as a Service” where COPC will build customer’s OpenStack based private cloud on-premise and will continue to run and manage the private cloud remotely for the customer

Key features:

• Private cloud on-premise

• Built and managed remotely

Partner roles:

• Reseller of COPC software and cloud infrastructure (e.g., UCS, Nexus) with opportunity to attach TS for infrastructure

Opportunities to sell:

• When customer is upgrading infrastructure (e.g., buying UCS and/or Nexus)

• When customer is considering cloud options such as AWS, Azure, VMware


Cisco OpenStack Private Cloud as part of the Cisco Intercloud Fabric

VM Portability. Application-Centric Policy Control. Open Standards

Intercloud Cisco® Intercloud Fabric

Public Clouds

CloudServices and

Apps

YourPrivate Cloud

PartnerClouds

Cisco OpenStack Private Cloud

Microsoft Azure

Amazon Web Services

Google

Solution overview

Control Choice Compliance Consistency

Offering1


0

10

20

30%

2012

6

2015

9

22

Cloud infrastructure and service as percent of total WW IT spend

2020F

$111B $209B $615BCloud TAM

“55% of CIOs indicated they would source all their critical apps in the cloud by 2020”

Gartner, 2013 CIO Survey

Shift towards cloud will accelerate in next 3-5 years

WORKLOADS ARE INCREASINGLY MOVING TO CLOUD…

…THEREFORE, CLOUD IS A GROWING PERCENTAGE OF OVERALL IT SPEND

0

50

100

150

200M

2012

61%

39%

2013 2014 2015F 2016F 2017F

37%

63%

Installed workloads

6%

30%

(12-17F)

CAGR

Traditional data center

Cloud data center

Source: IDC, Gartner, Cisco Global Cloud Index (GCI)

Market Opportunity2


Cisco OpenStack Private Cloud pricingPricing

SUBSCRIPTION MODEL EXAMPLE PRICING

• Subscription assigned to each availability zone. Two subscription models available:

- Three Month: Covers selected availability zone for 90 days and automatically renews after on a month-to-month basis

- One Year: Covers selected availability zone for 12 months and automatically renews on annual basis

• Price of ongoing monthly fee based on:

- Subscription model (3 month or 1 year)

- Number of sockets

- Amount of block storage (per GB)

• Customers can upgrade subscription at any time by adding additional sockets*, but they cannot reduce until their subscription ends

Note: * If a customer adds additional sockets to their subscription before the end of its term, the price of a new socket license is determined by aggregating the total number of sockets already under all subscriptions and applying the price of the appropriate band

Installation fee $17,000 per Availability Zone (One Time Fee)

Sockets*

Standard Socket

Socket Band 3 month 1 year

Tier 1 40-100 sockets $264 $220

Tier 2 101-200 sockets $211 $176

Tier 3 201-500 sockets $165 $138

Tier 4 501-1,000 sockets $132 $110

Tier 5 1,000+ sockets $106 $88

Operations

Standard operations $0 (included with subscription)

Advanced operations 10% of monthly subscription fee

Unlimited CEPH

Storage$0.017 per GB

Offering1


IaaS Manager & Hypervisor

Cisco OpenStack Private Cloud Cisco OpenStack Private Cloud offering

Compute UCS B-seriesUCS C-series Partner Cisco:

monitoring services

Network Nexus 9000 Partner

Storage

Partner

Cisco OpenStack Private Cloud CEPH Cisco CEPH storage offering

IaaS stackPlan Build / Implement Manage

Products to sell

Cisco:capacity planning for server needs

Cisco:capacity planning for storage needs

Partner

Partner

Cisco:capacity planning for network needs

Vendor:capacity planning for storage needs

Partner roles exist across stack Partner Program4 Partner role


Partner profitability business casesBusiness casePartner Program4

Scenario 1:

Customer purchases COPC and COPC CEPH along with necessary infrastructure, such as Nexus 5300

and UCS servers

Scenario 2:

Customer only purchases COPC and COPC CEPH and uses existing

infrastructure resources


Scenario 2: One year partner profitability business caseBusiness case

DEAL SIZE

• 40 sockets on COPC

• 544TB of CEPH Storage

• 1 year deal size

PARTNER RESPONSIBILITIES

• Partner sells COPC subscription without hardware

Customer price $194,592

Partner cost $162,432

Partner Gross Margin (could vary depending on discount

passed on to customer)

$21,733

11%

OVERALL DEAL ECONOMICS

Partner Program4

DIRECTIONAL

COPC $105,600 18% $86,592 7% $79,200 3% $2,376 $9,768CEPH $110,976 18% $91,000 7% $83,232 3% $2,496 $10,265

One-time installation fee $17,000 $17,000 10% $1,700

TOTAL $194,592 $162,432 $21,733

SERVICES/ SOFTWARE LICENSES

PRODUCT TOTAL LIST

PRICECUSTOMER

PRICEPARTNER

UPLIFTPARTNER

BUY PRICEPARTNER REBATE

PARTNER REBATE

PARTNER GROSS MARGIN

CUSTOMER DISCOUNT


Scenario 1: One year partner profitability business caseBusiness case

DEAL SIZE

• 40 sockets on COPC

• 20 UCS servers

• 544 TB of CEPH storage

• 2 Nexus 5300 top of rack switches

• 1 year COPC subscription

PARTNER RESPONSIBILITIES

• Partner sells COPC subscription and associated hardware

Customer price $747,490

Partner cost $647,702

Partner Gross Margin (could vary depending on discount

passed on to customer)

$96,188

13%

OVERALL DEAL ECONOMICS

DIRECTIONAL

COPC $105,600 18% $86,592 7% $79,200 3% $2,376 $9,768CEPH $110,976 18% $91,000 7% $83,232 3% $2,496 $10,265

One-time installation fee $17,000 $17,000 10% $1,700

TOTAL $194,592 $162,432 $21,733

Nexus $150,000 50% $75,000 5% $67,500 4% $2,700 $10,200UCS* $1,179,120 60% $477,898 5% $417,770 1% $4,127 $64,257

TOTAL

$552,898

$485,270

$74,457

SERVICES/ SOFTWARE LICENSES

PRODUCT TOTAL LIST

PRICECUSTOMER

PRICEPARTNER

UPLIFTPARTNER


PARTNER REBATE


HARDWARE

Partner Program4

PRODUCT TOTAL LIST

PRICECUSTOMER

PRICEPARTNER

UPLIFTPARTNER


PARTNER REBATE


Note: (*) Includes UCS service price of $6.25K per year

CUSTOMER DISCOUNT

CUSTOMER DISCOUNT


Cisco OpenStack Private CloudPartner rolesPartner Program4

• Available to:- All partners who have a purchasing entity in their region

- Requires new compensation model

- Consistent with CSPP performance management policies

• Compensation model:- 25% discount (off globally consistent list price)

- 3% premium rebate

- Up-front discounts are applied to transactions:‣ After COPC is installed at the customer site, partners receive an invoice from Cisco for the full term of the

subscription‣ The standard 25% discount is applied to the invoice

• No performance metrics associated with this offer- Offers in this new category are value-added subscription services that can be purchased at any time with no

delivery

Enhanced Managed Services within CSPP

Partner required to sign terms and conditions which include Service Level Agreements (SLAs) for customer


Additional opportunity to build value-added services on top of Cisco OpenStack Private Cloud

Partner Program4 Partner roles

Note: * Network includes opportunity for security, firewall and load balances

IaaS Manager & Hypervisor

Compute

Network*

Storage

Managed services

Big Dataas-a-Service

Backupas-a-Service

SAPas-a-Service

Etc…

Cisco OpenStack Private Cloud offering

Nexus 9000

CEPH

UCS

Partner can plan, implement, manage all services on top of COPC

Value-add services

On top of solution, partner can provide:Agile application development, application re-engineering, workload migration, DevOps, ITSM


Cisco OpenStack Private Cloud Bundle(MetaPod)

NEW!

Fast Path to OpenStack Private Cloud

Customers

• Agile IaaS for Developers

• Remote SaaS Delivery Model

• Alternative to Public IaaS for Developing Cloud-native Applications

3rd Party PaaS, SaaS, Database, etc.

Private Cloud Management & Orchestration

Identity & Security

Compute Services

Storage Services

Network Services

Compute & Storage

2 ASR Routers, 2 Nexus 9000, 3 UCS C-SeriesSupports 500 Nodes of Capacity


Not For Resale - Proposal

Installation Fee ($17,500) Waived

MYAZ1


• Solution for Agile and Fast IT • Ready to go – Proven Solution• Professional Services and Pull

Through Opportunities

COPC Summary

Thank you.


Appendix: Technical overview


Cisco OpenStack Private Cloud How Is It Deployed?

West AZOPENSTACK & AWS APIs

OPENSTACK UNIFIED CLI

HA SERVICE ORCHESTRATION

UPDATE SERVICE

24X7 CLOUD OPERATIONS SUPPORT

HARDWARE

Compute Networking Storage Identity

Dashboard

East AZOPENSTACK & AWS APIs



UPDATE SERVICE


HARDWARE


Dashboard

Europe AZOPENSTACK and AWS APIs



UPDATE SERVICE


HARDWARE


Dashboard

Self-Contained Managed Set of Resources- Computing- Storage- Network- Identity

Geographic dispersed or same location

On demand multitenant platform

Availability Zone (AZ)


Cisco OpenStack Private Cloud Availability ZoneWhat Is “in” an Availability Zone (AZ)

User Access, Control, Orchestration, Management over Virtual Cloud Infrastructure

Control Tier

Hypervisor TierHosts pools of on-demand “elastic” virtual resources

Virtual Networks

Users and Access Enforcement

Projects, Users, and Instances

Virtual Volumes

vm vm vmvm vm vm


AZ Logical ArchitectureCisco OpenStack Private Cloud Architecture

Controller 1 Controller 2 Controller 3

Hypervisor

Hypervisor

Hypervisor

Hypervisor

Hypervisor

Hypervisor

Hypervisor

Hypervisor

Hypervisor

Controller Nodes (Controller Tier)- User and Admin Dashboard- OpenStack® Service and

Orchestration - OpenStack API Endpoint- Instance Security- Networking- Monitoring, Metrics, Live Stats

Hypervisor Nodes (Computing Tier)- Managed by Cloud Controllers- Host Projects or Tenants- Run the VM Workload- Utilizes Virtual Networking- Consumes Cloud Storage- Scales to 100s of Nodes

Controllers Nodes


Cloud Controller ArchitectureFeatures and Benefits

Controller 1 Controller 2 Controller 3

Stateful Services - 3 way HA cluster - Databases, Messaging System, Metrics System

Core HA Support Services - Corosync, Pacemaker, HA Proxy, Keep-alive

Stateless Services - 3 way active - Dashboard, APIs, Nova Conductor, Nova Cert, Cinder

Network Infrastructure

HA Hardware Design- 3-Node HA Standard Cluster- Scalable (+2)- HA Core Services

HA Software Services Design- Clustered Databases- Clustered Message Bus- Stateless Services Are 3-Way Active - Failover of Key Services

Controllers Nodes


Computing Architecture Computing Features

Full Control over Instance Type Definition- OS type, VM size (number of CPUs, RAM, and disk)- Cloud volumes- Security

Wide Variety of Image Types, Including AMI- AMI - Amazon Machine Image- RAW, QCOW2 - KVM- VMDK - VMware

Optimized KVM Hypervisor- Live migration of VM instances (CLI)

VM Memory Deduplication (KSM)- Allowing full hypervisor memory utilization

Modular Instance Scheduler (Filter)- CPU oversubscription (custom)- Advanced placement algorithms

Linux and KVM

Project 1

Project 3 Project 4

Linux and KVM

Project 3

Linux and KVMx64 Server – Multicore, Large Memory,

VT-Enabled Processor

Project 1vm vm vm vm




Hypervisor Node(s)


Multiproject or Tenant Capable Projects and Tenant Are Separate Groups in the Platform

Layer 2 Isolation (via 802.1Q VLANs)

Layer 3 Segregation- Each project has one or more

distinct IP subnets- Additional IP subnets are allocated

on demand automatically

Users Control Security Resource Within Their Own Project(s)- Public IP addresses- Firewall security rules and groups- Public and private keys- VM access and control

Project and Tenant Features

Hypervisor Hypervisor

Project 1 - VLAN AProject 2 - VLAN B

Project 3 - VLAN C

vm1

Project 1

Project 2

Project 3

vm2

vm3

vm1

vm2 vm3

vm2

vm1 vm4

Project 1

Project 2

Project 3

vm5

vm6

vm3

vm4 vm4

vm5

vm6


Networking Options

Cisco OpenStack Private Cloud Gateway Model- VM traffic flows thru gateway

controller nodes

Hardware Gateway Model- VM traffic flows through gateway in

switches

VLAN + Network Manager- Auto-extend VLANs- Support for VXLAN on pure Layer

3 networkOn-demand floating IPs (Cisco OpenStack Private Cloud gateway model) Integrated firewall and NATCapabilities virtualized load balancing Hypervisor Hypervisor

Project 1 - VLAN A (H/W)

Project 2 - VLAN B (OpenStack)Project 3 - VLAN C (MC)

vm1

Project 1 Project 2 Project 3

vm2

vm3

vm1

vm2 vm3

vm2

vm1 vm4

Project 1 Project 2 Project 3

vm5

vm6

vm3

vm4

Controller Tier

Gateway

Service Provider

Hardware Gateway

vm4

vm5

vm6

Cisco OpenStack Gateway

Service Network

Multiple Network Architectures


Enhanced Dashboard

User and Admin Access

Self-Service Provisioning

Identity

Integration of Live Statistics and Historical Statistics

Cloud Metrics

Custom Branded

Cisco® OpenStack Private Cloud Enhanced Dashboard


Support Options

Standard and Advanced Operations Support

Feature Description Standard Operations Advanced Operations

Support help center

Cloud administrator access to support portal, product documentation, and support engineers 24x7x365

Website and phone Website and phone

Service-level agreement (SLA) guarantee

Response-time SLA and uptime guarantee Emergency request ticket response time of 2 hours or less

Emergency request ticket response time of 30 minutes or less, and 99.95% Cisco OpenStack Private Cloud platform availability guarantee

Maintenance and upgrades

Proactive troubleshooting, including operating system, cloud software patches, upgrades, and virtual machine migrations

Yes Yes; includes customer-defined maintenance windows

24x7 proactive monitoring

Proactive monitoring of cloud servers and private cloud platform Yes Yes

Capacity planning consultation

We work with you on your cloud performance and scaling to meet both current and future needs; includes help with server, storage, and networking equipment choices and architecture

Available through Cisco® Professional Services

Yes; up to 4 hours a month

Additional support available through Cisco Professional Services

Capacity additions

Support for when you need to add to your existing cloud controllers, hypervisors, storage, or networking resources

Yes Yes

Hardware replacement and refresh support

Support for when you want to refresh or replace your cloud controllers, storage, or networking resources (Note: Support for replacing defective hardware is included.)

Available through Cisco Professional Services

Yes; up to 2 projects per year

Additional support available through Cisco Professional Services

Price Included 10% of monthly recurring fees

cisco openstack private cloud partner overview june 2015 ww services partner organization

Documents

cloud infrastructure

diy private cloud

cloud options

scalability of cloud

private cloud onpremise

cisco andor

compliance needs cloud

customers openstack