Cloud 101: The Basics of Cloud Computing

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1 Cloud 101: The Basics of Cloud Computing

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This webinar is being recorded and an on-demand version will be available at the same URL. Please submit questions via the button on your screen. On Twitter? Join the conversation: #HOSTINGspeaks, #Cloud101, @HOSTINGdotcom 2 HOUSEKEEPING

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Cloud Overview Cloud Infrastructure Migration Strategies & Best Practices HOSTING – Your Partner to the Cloud 3 CLOUD 101 AGENDA

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5 IMPORTANCE OF THE CLOUD 71% Do not have a virtual desktop deployed 75% Manage their own servers 83% Using in-house applications 54% Take a day or more to deploy a new server 60% Backup their data locally 79% of Mid-Size companies do not have a roadmap to the cloud Mid-sized company perceptions: 92% - Business Advantage 63% - Cost Savings 29% - Increased Flexibility Source: Armada Group

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6 IMPORTANCE OF THE CLOUD 87% 94% 74% Are using public cloud Are running applications or experimenting with IaaS Have hybrid cloud strategy; more than half use both public and private cloud Sources: RightScale, 2014 and Tech Poll/Tech Priorities Survey 51% 29% CIOs plan to increase 2014 IT budget; focus on cloud CIOs are actively researching cloud computing services 18% CIOs are currently piloting cloud computing services RS RS RS Tech Tech Tech

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7 SURVEYING THE CLOUD ENVIRONMENT “Cloud computing will be a $107 billion industry by 2017; up from $47.4 billion in 2013…The cloud’s 23.5% CAGR is 5x faster than that of the broader technology market.” IDC “The global cloud computing market is forecast to grow 22% annually to US$241 billion by 2020.” Forrester “End-user spending on public cloud services is likely to grow 18% in 2013 to hit a global figure of $131 billion.” Gartner “The cloud market is expected to grow to $121 billion by 2015: a 26% CAGR from $37 billion value in 2010.”

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8 HOW DID WE GET HERE? MAINFRAMES PCs CLIENT/ SERVER INTERNET CLOUD 1970s Pro – Efficient Con – Slow to Change 1980s Pro – Quick to change Con – Expensive, loss of control of data 1990s Pro – Quick to change and better data control Con – Expensive to support 2000s Pro – Quick to change Con – Tough to support Today Pro – Efficient, quick to change Con – Paradigm shift Persistent Goal: Efficient systems that respond to the business “If you think you’ve seen this movie before, you are right. Cloud computing is based on the time-sharing model we leveraged years ago before we could afford our own computers. The idea is to share computing power among many companies and people, thereby reducing the cost of that computing power to those who leverage it. The value of time share and the core value of cloud computing are pretty much the same, only the resources these days are much better and more cost effective.” – David Linthicum

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9 DEFINING THE CLOUD Cloud computing is Internet-based computing, whereby shared resources, software and information are provided to computers and other devices on-demand, like electricity… Computing in which services and storage are provided over the Internet (or "cloud")… A technology used to access services offered on the Internet cloud. Everything an informatics system has to offer is provided as a service, so users can access these services available on the “Internet cloud” without having any previous know-how (or at least not as an expert) on managing On-demand self-service Internet infrastructure where you pay-as-you-go and use only what you need, all managed by a browser, application or API. Cloud computing is broken up into multiple segments including: Cloud Infrastructure, Cloud Platforms and Cloud Applications. (see "Cloud Pyramid") The use of a Web services such as Flickr, Google Docs, Jing (video screencapture service) to perform the functions that were traditionally done with software installed on an individual computer… A new generation of computing that utilizes distant servers for data storage and management, allowing the device to use smaller and more efficient chips that consume less energy than standard Refers to accessing computing resources that are typically owned and operated by a third-party provider on a consolidated basis in data center Computing in “the cloud” may refer to a company's own network, but it typically refers to the Internet and the use of Web browser-based or rich client applications. In these applications, the software comes from the Web Servers, and the data may be saved on the servers as

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10 KEY ELEMENTS OF CLOUD SERVICES ACCESSED OVER A NETWORK RUNNING ON SHARED RESOURCES EASY TO SET UP PAY AS YOU GO GROW OR SHRINK AND NO IDEA HOW… “There was a time when every household, town, farm or village had its own water well. Today, shared public utilities give us access to clean water by simply turning on the tap; cloud computing works in a similar fashion. Just like water from the tap in your kitchen, cloud computing services can be turned on or off quickly as needed. Like at the water company, there is a team of dedicated professionals making sure the service provided is safe, secure and available on a 24/7 basis. When the tap isn't on, not only are you saving water, but you aren't paying for resources you don't currently need.” Vivek Kundra, CIO, US Federal Government 

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13 APPROACHING THE CLOUD Cost to Business Number of Users Set Up Costs Hardware, Software, Consultants, Internal Labor Variable Costs The Old Way… Provider Cost Cost to Business Number of Users Set Up Costs Variable Costs The New Way…

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14 CLOUD IN ACTION – A CRM SOLUTION The Old Way… Pick a software solution Order the equipment and write a large check Install the software Migrate your data Upgrade the sofware Upgrade your system when you run out of juice Negotiate a multiyear licensing contract and write a large check Configure the equipment Customize the software Patch the software Re-apply your customizations The New Way… Pick a software solution Negotiate a service contract Access the software Migrate your data Customize the software

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Speed to Implement Affordability Continuous Improvement Availability Fewer Technical Resources Customization Integration 15 BUSINESS VALUE OF CLOUD OFFERINGS

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16 WHY SHOULD YOU CARE? Managing Risk Financial Risk – Pay as you go Business Risk – Hosted model, common applications Availability Risk – Professional management reduces downtime Maximizing Opportunity Enter new business areas Respond to client requirements React to competitive activity Understand your business more intimately

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Security among top 5 reasons mid-size firms choose the cloud Most cloud data centers offer high levels of security especially when compared to mid-size data centers HTTPs, password protection, encryption help to keep data secure Audits and reviews still necessary 17 KEEPING DATA SAFE

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19 DELIVERY MODELS Public Cloud Services delivered on shared resources, with appropriate security and data isolation Private Cloud Services are delivered on dedicated resources, generally on client premises Hybrid Cloud Constant and/or data-sensitive demand is met with a private cloud that can be extended into public cloud capacity Community Cloud Private cloud with smaller number of participants Traditional/ On-Premises Hosting or Co-Lo Iaas PaaS SaaS XaaS Business Value The Business of IT The Business

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DELIVERY MODELS, CONT’D HOSTING OR COLO What is it? Generally, dedicated capacity, owned by the client (colo) or the vendor (hosted), charged on a fixed month fee. Managed and provisioned by the vendor. INFRASTRUCTURE aaS 20 When Should You Use It? Known workload Little or no availability in growth Little or no changes Strong support infrastructure What is it? Access to operating system platforms on a pay-as-you-go basis When Should You Use It? When you don’t have the ability to support hardware locally When you have varying workloads

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DELIVERY MODELS, CONT’D IaaS - SERVER What is it? Access to operating system platforms (Windows, Linux, Unix) on a play-as-you-go basis, provisioned and managed remotely STORAGE aaS 21 When Should You Use It? Don’t want hardware locally Don’t have hardware admin support Want to avoid capital expense When you have varying workloads What is it? Access to storage on a pay-as-you-go basis, provisioned and managed remotely When Should You Use It? Don’t want hardware locally Don’t have hardware admin support Want to avoid capital expense When you have varying storage needs

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DELIVERY MODELS, CONT’D CLOUD DESKTOP (DaaS) What is it? Desktop operating system (typically Windows) and applications, delivered securely via remote infrastructure PLATFORM aaS 22 When Should You Use It? Lots of “average” PC users No remote PC support “Work from Home” users High number of short-term or contract workers What is it? Generally, a development platform upon which you can develop (and host) applications without needing knowledge of the underlying infrastructure When Should You Use It? No technical support for the underlying platform Core focus is on the application created, not on the platform itself

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DELIVERY MODELS, CONT’D SOFTWARE aaS What is it? The delivery of a complete application via the web Accessible from anywhere, no local server, pay-per-use or monthly fee, rapid scalability, system maintenance included, reliability INTEGRATION aaS 23 When Should You Use It? Common business processes (e.g. sales, HR) Desire for ongoing improvements without expense Desire for predictable payments Few or no unique business needs What is it? The ability to connect information from individual SaaS applications together to implement a complete business process When Should You Use It? You are heavily invested in SaaS No single SaaS application meets your needs

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26 CLOUD SERVICE TYPES Business Value Business Risk

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HOSTING builds and operates high-performance clouds for business-critical operations. 28 HOSTING’S APPROACH

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When moving to a cloud-based infrastructure, consider: Cost Current Staff Customization to Business Need Security 29 BOTTOM LINE

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The worldwide cloud computing industry is rapidly gaining value Cloud computing represents infrastructure, platforms and software that are sold “as a service” via the Internet Moving to the cloud affords many benefits to business-critical applications HOSTING offers custom managed cloud solutions to meet your unique business needs 30 IN SUMMARY

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THANK YOU! View on-demand webinar here. 31

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Bill Santos | [email protected] | 720.389.3831 President, HOSTING Advanced Solutions 32 QUESTIONS?