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Cloud Computing Trends,

Examples & What’s Ahead

Mike Klein

(2)

Cloud Computing Defined

One Definition:

• On-Demand Computing

• Elastic & Scalable

(3)

What Does This Mean?

Real Life Examples:

• Testing OTPortal – Snapshot production server in minutes

• DB Server – Add resources w/ no maintenance window

– RAM, CPU, Disk – becomes mouse clicks vs. hours

• SaaS clients spin up new servers in minutes

– vs. hours – days on physical servers

• Recover backed up servers in minutes

(4)

Cloud Computing Spectrum

Private

Cloud

Public

Cloud

Hybrid

Cloud

Managed

Cloud

• Dedicated/Single Tenant

• High Availability

• Dedicated/Auditable Security

• Compliant – SOX, PCI, HIPAA

• Plug & Play

• Multi-Tenant

• Cost Driven Utility Model

• Limited/Shared Security

• Compliance?

(5)

2011 Cloud Trends

1. More Confusion (Not Less)

2. Computing as a Utility on the Low End

3. Managed Clouds Emerge

4. Enterprises Adopting Private Clouds

5. Security & Compliance

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Low End Compute as Utility

Public Cloud Computing

• Designed for Commodity Pricing

• Non-Redundant Hosts

• Non-Persistent Storage

• No Failover/Availability

• Email Support Only

• Programming to Leverage

• Lock in vs. Open API’s

• Spot Pricing Market

(8)

Managed Cloud Computing

• High Availability, N+1 Infrastructure

• “Slice” of a Private Cloud

– VMware Enterprise version

– N+1 Hosts, Storage & Security

– Automatic Failover

• Full Mix of Managed Services

A More Secure, High Availability Option

High Availability

(9)

Enterprises Adopt Private Clouds

Single Tenant, Dedicated Private Cloud

• Yankee Group: 67% Prefer Private Cloud

• Security & Compliance Are Major Drivers

• More Cost Effective for Most Enterprises

• Complete Architectural Control

(10)

Security & Compliance

• Security Concerns Are Significant

• 51%: Security #1 Reason Not to Cloud

• Highlighted by Recent Breaches

• Google Gmail

• Sony Play Station

• Cignet Health Care - $4.3M HIPAA fine

• #1 Driver to Private Cloud

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Secure PCI Compliant Cloud

Private Cloud Example

• High Volume Financial Processing &

Consumer Bill Payment Application

• Self-Service Payment Kiosks

• High Growth Company

• National Customer Base

• Security if Paramount

• Requirements:

– PCI Compliance

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• Municipalities rely on Pay-Ease to manage

transactions with a high level of security,

privacy, and compartmentalization

• Secure private cloud manages routing of

payment transactions from kiosks

• Real-time monitoring of each kiosk

• Interfaces with multiple payment

gateways, and other private clouds

• Compliant to the Payment Card Industry

Data Security Standard (PCI DSS)

Pay-Ease Private Cloud

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• PCI Certified Hardware Stack

• 2 Hosts with 25 Virtual Servers

• 2 Dedicated Servers

• Dedicated SAN Storage

• HA Threat Mgmt & Cisco Firewalls

• New Servers Online in <1 hour

• Offsite Backup for D/R

• 38% Less than Dedicated Servers

• 79% Less for Each Additional Server

Solution: OT Private Cloud

2 Server Hosts

Cisco Firewalls (HA)

Threat Mgmt (HA)

Network Inspection

& Logging

Web Application

Firewall

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What’s Ahead?

1. Continued Growth in Cloud Computing

2. Separation between Men & Boys in Hosting

3. Compliance moves to the Shared Cloud

4. Growth in Outsourced Private Clouds

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Cloud Growth Drivers

• Lower Total Cost of Ownership

• Higher resource utilization

• No Capital Expenses

• Provided by Cloud provider

• Deploy Projects Faster

• Provisioning in minutes vs. weeks

• Scale as Needed

• Add resources when needed

(18)

Raising Hosting Standards

• Auditing Standards Are Getting Tougher

• SAS 70 -> SSAE 16 -> SOC2/SOC 3

• SOC 2/SOC 3 Separates the Serious Players

• Expect Shake Out in Public Cloud Market

• 100’s + Amazon, Google, Microsoft, Rackspace, …

• Regional Players Lead in Private & Managed Clouds

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Shared Cloud Compliance

• Private Clouds are Compliant

• 100% dedicated

• 100% architectural control

• Auditors Will Get Comfortable

with Shared Clouds

• Virtualization

• Shared SAN

• Managed Clouds will Win Here

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Growth in Outsourced

Private Clouds

• Cap-Ex Free Clouds

• Hardware Refresh

• Shared Expertise

• Free Resources for

(21)

Colo Still Growing

• Colocation isn’t going away

• Strong underlying value

proposition

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Wrap Up

• Which Cloud is Right for You?

• Private Cloud

• Public Cloud

• Managed Cloud

• Key Issues to Consider:

• Security

• Compliance

• Availability

References

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