introduction, product demo & roadmap and industry analyst

RIGHTSCALE USER CONFERENCEJune 2011

Welcome!

• Thanks to everyone here, thanks to CCExpo• Announcements & reminders

• #RightScale #CCExpo on Twitter• Morning agenda

• 9:30-12:15pm - RightScale, Forrester Research, RightScale customers• Agenda for afternoon

• 1:30-5:30pm - 16 breakout sessions from RightScale and partners• Evening cocktail at Gansevoort Hotel

• Shuttle buses running at 5:30pm

Welcome

Gold Sponsors

Silver Sponsors

Thank you to our partners!

• Who’s here today• Good sense of where cloud market stands• Clear understanding of RightScale – demos • Learn & share what’s working in cloud infrastructures

• When & where cloud works best• Ask questions in the community• Take away actionable information for your cloud projects

Real Cloud Experience. Shared.

Cloud Growth

Cloud Revenues

Trend: ‘cloud computing’

Trend: ‘IaaS’

Beginning of a Tidal Shift• Big Switch – electricity grid• New IT Stack (replacing LAMP)• Third Revolution

• ‘Cloud is unstoppable’• CTO – Thorsten von Eicken

Beginning of a Tidal Shift• Big Switch – electricity grid• New IT Stack (replacing LAMP)• Third Revolution

• ‘Cloud is unstoppable’• CTO – Thorsten von Eicken

• Cloud is still in its early years• Will be growing faster & faster to 2020 and beyond

• You are the innovators and pacesetters!

RightScale Growth

RightScale roughly doubling each year:

• CPU cycles used• Number of servers launched• Number of servers running in steady state• ServerTemplates created by customers• Scale of individual customers

• Larger than most enterprises – e.g. over 100M daily users

Server Type Distribution Over TimeOctober 2007 – average cost $0.10/hr

100.0%

Server Type Distribution Over TimeJuly 2008 – average cost $0.18/hr

79.9%

2.6%

11.4%

6.1%

Server Type Distribution Over TimeJanuary 2009 – average cost $0.20/hr

70.1%

8.5%

14.8%

6.6%

Server Type Distribution Over TimeJuly 2009 – average cost $0.25/hr

58.2%14.7%

15.0%

12.1%

Server Type Distribution Over TimeOctober 2009 – average cost $0.32/hr

48.1%

14.3%

14.2%

23.4%

Server Type Distribution Over TimeApril 2010 – average cost $0.50/hr

27.0%

12.2%

13.1%

45.7%

1.9%

Server Type Distribution Over TimeJune 2011 – average cost $0.67/hr

16.2%

6.2%

11.7%

58.9%

4.0%

What’s Driving Cloud?Four horsemen

Cut costsImprove agilityIncrease scale & reliabilityLeverage best practicesHighly effective layers of abstractionSaaS – cloaked below the browserPaaS – cloaked below the codeIaaS – cloaked below the OSEach layer achieves scalability & reliability

through uniformityTrue clouds are API-driven!

Public IaaS Vendors

Public Cloud

Fabrizio Gagliardi, Microsoft Research

On-Premise Cloud

Yankee Group, 2010

Public, Private, Hybrid

False cloud or false debate?

Cloud definitions differ in focusCloud as business modelCloud as operational model

Public, Private, Hybrid

False cloud or false debate?

Cloud definitions differ in focusCloud as business modelCloud as operational model

“Clouds are like buses:Public isn’t always better.”

Sinclair Schuller, Apprenda

Challenges & Blockers

Security Reliability Lock-in

Security• Myth: “The Cloud is not secure”• Reality: Multi-tiered approach required• Distinguish between

• Security, compliance & trust• Security is shared responsibility• Certifications increase all the time

• SAS 70 Type 2• PCI DSS• ISO 27001• FISMA Low• HIPAA solutions

• Private cloud is a new answer• Security team at RightScale

Reliability• Myth: “The Cloud is not reliable”• Reality: Everything fails

• Operational excellence at scale is impressive• Compare to most enterprise data centers• But public cloud failures can be big

• Business continuity = redundancy & failover• How much do you want to spend?

• With multiple cloud options, costs lower than ever!• Comes down to design, automation and management

Lock-In• Myth: “The Cloud locks you in”• Reality: It’s up to you

• Data has mass• Vendor contracts• Vendor features & APIs

• What you can do• Preserve multiple choices for any service

• Keep contracts to length you can predict• Avoid unique services & APIs

• Anticipate moving – set up small footprints elsewhere• Pilot a private cloud• Design for portability: architecture choices matter

Pay Attention to Design• Survey at Interop in May 2011

• 70% plan to implement cloud• 70% did not have confidence in managing performance of cloud

• Sciencelogic.com• Using cloud != designing for cloud• Accidental tourist in cloud

• Sign up, launch servers, sit back• Good cloud design

• Secure• Reliable• No lock-in

• Also more efficient…

IDC - Virtualization 2.0 - Dec 2006

Operational Efficiency

Architectural Engineering To-tal8%

Deployment Management To-

tal31%

Incident Man-agement Total

19%Problem En-gineering To-

tal10%

Overhead Total11%

Requests Total6%

Software De-velopment Total

7%

Site Management Total7%

51% deployment & incident management

Source: Deepak Patil, GFS 2006

Operational Efficiency

Architectural Engineering Total8%

Deployment Management

Total31%

Incident Management Total19%

Problem En-gineering To-

tal10%

Overhead Total11%

Requests Total6%

Software De-velopment Total

7%

Site Management Total7%

51% deployment & incident management

Source: Deepak Patil, GFS 2006

Server-to-admin ratio is an indicator of admin costsInefficient operations as low as 20:1Above average ratio 150:1 (enterprises typically in the 70 to 140 range)

Best practices over 2,000:1

Savings on admin costs of easily 50%

Live Demo• Let’s take a tour of what this actually looks like in RightScale

• What cloud management offers out of the box• Single user scenario• Growing to larger organization with disaster recovery• Freedom of choice

Roadmap Preview

• Community Localization• MultiCloud API 2.0• Security Tools & Certifications• Usability Improvements

• Full Hybrid Web Stack for Rackspace, Cloud.com, Eucalyptus, AWS

• Microsoft SQL Server HA• Windows Active Directory +

join Domain scripts• Advanced Workflow

MultiCloud Management Configuration and Operations

• Amazon new features• VPC v2, Red Hat RHEL

• OpenStack• TATA (India, Singapore)

Cloud Support

Key Takeaways• Dynamic runtime configuration with control• Automation• Failure resilient designs• Easy on-ramp• Portability• Visibility – from resources to users to actions

MultiCloud Marketplace“RightScale the Latest to Provide App Store for Infrastructure” By Derrick Harris

ServerTemplate™ Showdown WinnersMost Innovative

•Hadoop CDH2•So-net Entertainment Corporation

Most Popular Practical•Drupal v7.0 All-In-One Nginx Edition•Practical IT Consulting (PITCON)

Most Useful and Best in Show•Joomla 1.6 LAMP All-In-One• Integral R and D Trip to RightScale HQ

in Santa Barbara!

Frank Gillett

Vice President, Principal Analyst Forrester Research, Inc.

© 2011 Forrester Research, Inc. Reproduction Prohibited40 © 2009 Forrester Research, Inc. Reproduction Prohibited

Why motivations and app architecture matter for understanding and using cloud IaaS

Frank E. Gillett, Vice President and Principal Analyst

June 8, 2011

Ignore the confusing industry conversation on IaaS and focus on optimizing your workload to the right cloud IaaS options

© 2011 Forrester Research, Inc. Reproduction Prohibited42

What does traditional IT’s adoption of cloud IaaS look like?

Why are there two kinds of IaaS buyers and workloads?

Why should you optimize your IaaS strategy by workload?

Agenda


Virtualization use is high – 76% of enterprises – so firms are ready for cloud IaaS, right?

Source: Forthcoming, “Navigating The Shifts In Computing Infrastructure Markets” Forrester report


No, they aren’t very ready for IaaS — firms with 100+ x86 servers have only virtualized 15% of OS instances.But they are virtualizing fast - 50% by summer 2012!



IT managers prioritize server virtualization (80%) much more than internal (29%) or public (28%) cloud



Only 6% of firms will reach Forrester’s concept of server virtualization maturity this year – help wanted!



Only 13% of enterprise IT will implement IaaS by Q3, 2011 – many are interested but lack plans

Source: March 2011, “Navigating The Shifts In Computing Infrastructure Markets” Forrester report


IT infrastructure buyers are not representative of today’s users of cloud IaaS

IT infrastructure buyers focus on typical back office workloads

Today’s popular IaaS workloads are different:

– Test and development

– Web and consumer services, such as web sites and games

– Grid computing and compute intensive calculations

– Engineering and scientific workloads

So how to make sense of the industry conversation about IaaS?

It’s really two different conversations....





Agenda


Click icon to add chart

There are two distinct types of cloud IaaS buyer — informal buyers and formal buyers




Formal buyers (IT infrastructure) identify informal buyers as having the most interest in cloud IaaS




Informal software buyers use or plan for IaaS at twice to almost 3x the rate for formal hardware buyers




According to IT, most IaaS workloads are session and compute-intensive, not transaction apps – and they use for production as much as test/dev




There are two kinds of IaaS workloads – very different

Single instance Scale-out

Workload size Single instance often smallMassive, spans across tens

to thousands of servers

Software architecture

Tightly coupled, single-instance apps that need a bigger server to handle more demand

Loosely coupled multi-instance apps built on app frameworks that allow scaling across many servers

Fault tolerance Only in hardware Built in to app architecture

State management

Traditional, app-centric database transaction processing, with one definitive record

App is stateless, with state maintained in multiple content stores for redundancy

Use of server virtualization

A required element, it provides machine sharing to maximize server hardware utilization.

An optional element, it offers flexible, rapid provisioning across heterogeneous servers; not needed for server sharing.



Early customers of cloud try new apps, not back office

“Web

businesses at

scale”

“SaaS for

speedy & flex”

“Experiments

& projects”

“Compute &

collab”


Early cloud examples

Indy500.com — streams live race

footage and statistics

Wendy’s — Short-term, interactive

promotional site for $0.99 menu.

ESPN — FanZone message boards

NASDAQ — Market Replay service

US Army — Testing troop

vulnerability application on cloud

platform

Eli Lilly — drug research

Harvard Medical School —

developing genetic testing models

Sources: www.NASDAQ.com, www.espnfanzone.com, Indy500.com


Unpredictable traffic flows

– Baseline of systems on a 12-

month contract (reserved

capacity); all use above is pay

per use

– Migrated to the cloud in 10 days

– Govt.-certified data center and

govt.-ready security, monitoring,

and management

– Integrated their own security

above this

• Millions of visitors/month, content constantly changing, what’s popular is unpredictable.

• GSA migrated the site to Terremark’s The Enterprise Cloud to leverage burst capacity.

Source: http://www.USA.gov





Agenda


Why aren’t all startups using IaaS, as hype suggests? Because the specifics matter

For the base workload, some find that it’s cheaper to own the hardware

– So they use IaaS for the variable and growth part of the workload

demand

Optimizing the app to specific infrastructure can yield big cost saving

– I get feedback of 50% lower costs than IaaS – in specific, optimized

cases

– Think of online backup, highly optimized for writes, not reads

Some simply prefer to have a balance of IaaS and owned hardware

Migration risk – some started on hardware and don’t see big enough payoff

yet

– So they wait until the economics are compelling enough


The basics of cloud economics are clear


Turning cloud economics to your favor is the key


Recommendations

Know your motivations for using IaaS

– Outsourced-style cost savings or business flexibility?

Know your workload

– Single instance traditional or web scale?

– Works well on general purpose infrastructure or benefits from optimization?

– Must be in one data center or can it split across on premise and IaaS

provider?

Get help

– Talk to your peers and partners about their experiences with apps, hardware,

management service providers, and IaaS providers

– Consider IaaS management service providers that have deep experience

with a variety of workloads, business needs, and IaaS providers


Thank you

Frank E. Gillett

+1 617.613.6017

[email protected]

Twitter: @frankgillett

LinkedIn: frankgillett

www.forrester.com

Thank You!

Afternoon Breakout SessionsFoundations Multi-Cloud Best Practices Hot Topics

1:30 PMParadigm Shifts in the Cloud: Taking Advantage of the Third Revolution

Impact of the Cloud on the IT Landscape

Achieving Massive Scalability and High Availability for PHP Applications in the Cloud (Zend)

Optimizing Your Cloud Applications in RightScale

2:30 PMAdvancing Cloud Initiatives and Removing Barriers to Adoption

Enterprise-Ready Private and Hybrid Cloud Computing Today (Eucalyptus)

Rolling Your Own ServerTemplates

Delivering Enterprise-Grade SaaS and Application Management in the Cloud: A Case Study (Virtual Ark)

3:30 PMWhy Cloud Management Makes Sense

Architecting forHigh-Availability and Multi-Cloud Environments

Scaling SQL and NoSQL Databases in the Cloud (CodeFutures)

Launch .NET Applications in the Cloud

4:30 PMAmazon Web Services Security and Compliance

Multi-Cloud Roadmap: Architecting Hybrid Environments for Maximum Results (Cloud.com)

Zero to Cloud in Less Than 60 Minutes

Load-Balancing Solutions for Scalable Web Applications (Zeus)

We hope to see you at our next RightScale User Conference!

See all presentations and videos at RightScale.com/Conference.

http://www.rightscale.com/conference

http://www.rightscale.com/conference

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