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Cloud Computing
Asheem Chandna
January 2011
Agenda

 •  Changing IT landscape
 •  CIO technology priorities
 •  Cloud computing
 •  Underlying infrastructure
    and opportunities
 •  Greylock portfolio
 •  Summary
                                Page 2
Changing IT landscape

• Customer spend growing again
• IT is shifting to a new wave
• New underlying infrastructure technologies
  and approaches
• All the major IT vendors are re-assessing
  and redefining their business boundaries


                                              Page 3
The New IT Landscape




      Existing Apps"                       New Enterprise Apps"                       SaaS Apps"




Source: VMware     Existing Datacenters"                     Public Cloud Services"
                                                                                                   Page 4
Cloud Computing - Jan 2011 - Chandna
CIO Technology Priorities
2011 Data Center Infrastructure Priorities




Source: Gartner

                                         Page 7
Cloud – The Next Wave in Enterprise IT

                                       Cloud
                                       2000s

                            Internet
                             1990s

                     PC
                    1980s

            Mini
            1970s

Mainframe
  1960s
Describe The Cloud To Me



         The Cloud
Gartner's	
  Defini-on	
  of	
  Cloud	
  Compu-ng	
  
                                     The	
  Cri-cal	
  A;ributes	
  of	
  Cloud	
  Services	
  
Gartner defines cloud computing as "a style of computing where scalable and
elastic IT-related capabilities are provided 'as a service' to external customers
                          using Internet Technologies."

                                                                 Consumer concerns are abstracted from
5 Attributes that support outcomes




                                     1   Service Based
                                                                 provider concerns through service interfaces

                                                                 Services scale on-demand to add or remove
                                     2   Scalable & Elastic
                                                                 resources as needed.

                                                                 Services share a pool of resources to build
                                     3   Shared
                                                                 economies of scale.

                                                                 Services are tracked with usage metrics to
                                     4   Metered By Use
                                                                 enable multiple payment models.

                                                                 Services are delivered through use of
                                     5   Internet Technologies
                                                                 Internet Identifiers, Formats, and Protocols.
Why	
  Cloud?	
  
Cloud Computing - Jan 2011 - Chandna
Cloud	
  Compu)ng	
  Taxonomy	
  

                                                                      CRM: Salesforce, RightNow
End-user applications
                                 So1ware-­‐as-­‐a-­‐Service	
         ERP: Workday, Netsuite
delivered as a service                                                Point solutions: Concur, Taleo


Application dev platform                                              Salesforce.com Force.com
or middleware as a service;      Pla;orm-­‐as-­‐a-­‐Service	
         Microsoft Azure
Build & operate custom                                                Google AppEngine
applications
Compute, storage or other                                             Amazon EC2/S3
                              Infrastructure-­‐as-­‐a-­‐Service	
     IBM Cloud
infrastructure as a service                                           Rackspace cloudservers
Cloud Computing - Jan 2011 - Chandna
Public vs. Enterprise Cloud
– Is it a Fair Fight?
Comparison of very large service with mid-size: (~1000 servers):
                                      Large Service [$13/Mb/s/mth]: $0.04/GB
                                      Medium [$95/Mb/s/mth]: $0.30/GB (7.1x)

                                Large Service: $4.6/GB/year (2x in 2 Datacenters)
                                Medium: $26.00/GB/year* (5.7x)

                                      Large Service: Over 1,000 servers/admin
                                      Enterprise: ~140 servers/admin (7.1x)

•  Large block h/w purchases significantly more economic
   –  Large weekly purchases offer significant savings
   –  H/W Mmanufacturers willing & able to do custom designs at scale
•  Automation & custom s/w investments amortize well at scale
•  Summary: scale economics strongly in play
All	
  CIOs	
  must	
  answer	
  the	
  ques-on	
  
-­‐	
   Why	
  not	
  run	
  in	
  the	
  cloud? 	
  

                            q 	
  Price?	
  
                            q 	
  Capability	
  level?	
  
                            q 	
  Service	
  level?	
  
                            q 	
  Risk	
  level?	
  	
  
Cloud Computing - Jan 2011 - Chandna
The Decade Ahead




Source: Cisco
                    Page 18
Opportunities in underlying infrastructure

     INTERNET	
                            MOBILE	
  	
  
    DATA	
  CENTER	
                     ENTERPRISE	
  
      Compute	
                            Laptops	
  
       Storage	
  
                                         Smartphones	
  
       Network	
  
                                             Other	
  


                     Management	
  
                     Virtualiza-on	
  
                        Security	
  
                         Other	
  
Current Greylock Enterprise IT Portfolio
                            So1ware	
             Appliance	
                  Cloud/SaaS	
  
Applica)ons	
               Cloudera	
                                         Workday	
  	
  
                                                                               Rally	
  SoNware	
  
                                                                               Proferi	
  
Data	
  Center	
  and	
     Delphix	
             Xsigo	
  
Virtualiza)on	
  
Storage	
                                         Data	
  Robo-cs	
  
                                                  Pure	
  Storage	
  
Mobile	
  Enterprise	
  
Security	
  and	
                                 Imperva	
  	
                OpenDNS	
  
Networking	
                                      Palo	
  Alto	
  Networks	
   Sumo	
  Logic	
  
                                                  Silver	
  Peak	
             	
  
                                                                               	
  
Management	
                AppDynamics	
  	
                                  App-o	
  
                            Troux	
  


                                                                                                      Page 20
Summary

•  Cloud computing represents a multi-year
   transformational change for enterprise IT
•  New company opportunities"
  –  Cloud-based applications and services"
  –  Enabling IT infrastructure"
•  Focus on best-in-class teams and
   technology approaches that support
   building significant sustainable franchises

                                               Page 21
Cloud Computing - Jan 2011 - Chandna
What is Xsigo?"
  What is Virtualization (Wikipedia)?


        VirtualŸization - virtualization, in
        computing, is the creation of a virtual
        (rather than actual) version of
        something, such as a hardware
        platform, operating system, a storage
        device or network resources.

Source: Wikipedia
                                              Page 23
Virtualization Benefits and Challenges

 BENEFITS                        CHALLENGES
 •  Economic savings"            •  Management"
     –  Consolidation"              –    Visibility"
     –  Elimination of sprawl"      –    Physical and virtual"
     –  Power, cooling"             –    Capacity planning"
 •  Quality of service"             –    Migrating workloads"
     –  Provisioning"            •  Security"
     –  HA / DR"                    –  Obscured visibility"
 •  Agility"                        –  Traditional doesnʼt fit"
     –  Capacity on demand"      •  People"
     –  Workload balancing"         –  Skills"
     –  Automation"                 –  Experience "

                                                                 Page 24
Virtualizing	
  the	
  Data	
  Center:	
  	
  
              From	
  Silos	
  to	
  Clouds	
  
  Sprawled                         Virtualized                        Automated
Component-Orientation               Layer Orientation                 Service Orientation

                                                       • Cloud-                       Policies
                                                         enabled
                                                                                     Optimization




                                                                      Provisioning
                                                                                     Workloads




                                                                                                    Availability
                                                                                        Data
                                                                                     Resources
                                                                                      Identities
                        • Hardware                     • Service
                          costs down,                    levels and
                          flexibility up                 agility up
                                                                                      Services

        2002                               2002-2012                                 2010-2020
From Client/Server to Cloud/SaaS & VDI
Page 27
Desktop Virtualization
– Hosted Virtual Desktops




                            Page 28

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Cloud Computing - Jan 2011 - Chandna

  • 2. Agenda •  Changing IT landscape •  CIO technology priorities •  Cloud computing •  Underlying infrastructure and opportunities •  Greylock portfolio •  Summary Page 2
  • 3. Changing IT landscape • Customer spend growing again • IT is shifting to a new wave • New underlying infrastructure technologies and approaches • All the major IT vendors are re-assessing and redefining their business boundaries Page 3
  • 4. The New IT Landscape Existing Apps" New Enterprise Apps" SaaS Apps" Source: VMware Existing Datacenters" Public Cloud Services" Page 4
  • 7. 2011 Data Center Infrastructure Priorities Source: Gartner Page 7
  • 8. Cloud – The Next Wave in Enterprise IT Cloud 2000s Internet 1990s PC 1980s Mini 1970s Mainframe 1960s
  • 9. Describe The Cloud To Me The Cloud
  • 10. Gartner's  Defini-on  of  Cloud  Compu-ng   The  Cri-cal  A;ributes  of  Cloud  Services   Gartner defines cloud computing as "a style of computing where scalable and elastic IT-related capabilities are provided 'as a service' to external customers using Internet Technologies." Consumer concerns are abstracted from 5 Attributes that support outcomes 1 Service Based provider concerns through service interfaces Services scale on-demand to add or remove 2 Scalable & Elastic resources as needed. Services share a pool of resources to build 3 Shared economies of scale. Services are tracked with usage metrics to 4 Metered By Use enable multiple payment models. Services are delivered through use of 5 Internet Technologies Internet Identifiers, Formats, and Protocols.
  • 13. Cloud  Compu)ng  Taxonomy   CRM: Salesforce, RightNow End-user applications So1ware-­‐as-­‐a-­‐Service   ERP: Workday, Netsuite delivered as a service Point solutions: Concur, Taleo Application dev platform Salesforce.com Force.com or middleware as a service; Pla;orm-­‐as-­‐a-­‐Service   Microsoft Azure Build & operate custom Google AppEngine applications Compute, storage or other Amazon EC2/S3 Infrastructure-­‐as-­‐a-­‐Service   IBM Cloud infrastructure as a service Rackspace cloudservers
  • 15. Public vs. Enterprise Cloud – Is it a Fair Fight? Comparison of very large service with mid-size: (~1000 servers): Large Service [$13/Mb/s/mth]: $0.04/GB Medium [$95/Mb/s/mth]: $0.30/GB (7.1x) Large Service: $4.6/GB/year (2x in 2 Datacenters) Medium: $26.00/GB/year* (5.7x) Large Service: Over 1,000 servers/admin Enterprise: ~140 servers/admin (7.1x) •  Large block h/w purchases significantly more economic –  Large weekly purchases offer significant savings –  H/W Mmanufacturers willing & able to do custom designs at scale •  Automation & custom s/w investments amortize well at scale •  Summary: scale economics strongly in play
  • 16. All  CIOs  must  answer  the  ques-on   -­‐   Why  not  run  in  the  cloud?   q   Price?   q   Capability  level?   q   Service  level?   q   Risk  level?    
  • 18. The Decade Ahead Source: Cisco Page 18
  • 19. Opportunities in underlying infrastructure INTERNET   MOBILE     DATA  CENTER   ENTERPRISE   Compute   Laptops   Storage   Smartphones   Network   Other   Management   Virtualiza-on   Security   Other  
  • 20. Current Greylock Enterprise IT Portfolio So1ware   Appliance   Cloud/SaaS   Applica)ons   Cloudera   Workday     Rally  SoNware   Proferi   Data  Center  and   Delphix   Xsigo   Virtualiza)on   Storage   Data  Robo-cs   Pure  Storage   Mobile  Enterprise   Security  and   Imperva     OpenDNS   Networking   Palo  Alto  Networks   Sumo  Logic   Silver  Peak       Management   AppDynamics     App-o   Troux   Page 20
  • 21. Summary •  Cloud computing represents a multi-year transformational change for enterprise IT •  New company opportunities" –  Cloud-based applications and services" –  Enabling IT infrastructure" •  Focus on best-in-class teams and technology approaches that support building significant sustainable franchises Page 21
  • 23. What is Xsigo?" What is Virtualization (Wikipedia)? VirtualŸization - virtualization, in computing, is the creation of a virtual (rather than actual) version of something, such as a hardware platform, operating system, a storage device or network resources. Source: Wikipedia Page 23
  • 24. Virtualization Benefits and Challenges BENEFITS CHALLENGES •  Economic savings" •  Management" –  Consolidation" –  Visibility" –  Elimination of sprawl" –  Physical and virtual" –  Power, cooling" –  Capacity planning" •  Quality of service" –  Migrating workloads" –  Provisioning" •  Security" –  HA / DR" –  Obscured visibility" •  Agility" –  Traditional doesnʼt fit" –  Capacity on demand" •  People" –  Workload balancing" –  Skills" –  Automation" –  Experience " Page 24
  • 25. Virtualizing  the  Data  Center:     From  Silos  to  Clouds   Sprawled Virtualized Automated Component-Orientation Layer Orientation Service Orientation • Cloud- Policies enabled Optimization Provisioning Workloads Availability Data Resources Identities • Hardware • Service costs down, levels and flexibility up agility up Services 2002 2002-2012 2010-2020
  • 26. From Client/Server to Cloud/SaaS & VDI
  • 28. Desktop Virtualization – Hosted Virtual Desktops Page 28