Welcome!

Jim Davis, Senior Analyst451 Research

Cloud vs CDN

The Move to the Cloud

Solving the Cloud performance problem

Cloud and Application Performance

Connecting the Cloud and CDN for better performance

The Move to the Cloud

Cloud and Application Performance

Consumerization of IT

A Growing Market for Cloud Services

Source: 451 Research Market Monitor

2010 2011 2012 2013 2014 2015

$681

$1,397

$2,444

$3,755

$5,169

$6,826

Infrastructure as a Service ($ in mn)

A Growing Market for Cloud Services

Source: 451 Research Market Monitor

11%

21%

2%67%

Geographic Revenue 2011

APAC

EMEA

LATAM

NA

A new generation of startups

Over the course of the last 12 months, I've visited 400 startups in the US, Israel and

Europe that are potential partners.

Of those, 45% are using the cloud as the basis for their business. The majority of them

are using Amazon.

CTO, US Telco

Cloud is not just for startups anymore

Growing use of Clouds in corporate market

Jun-2006 Sep-2006 Dec-2006 Mar-2007 Jun-2007 Sep-2007 Dec-2007 Mar-2008 Jun-20080%

5%

10%

15%

20%

25%

30%

35%

11%

14%

17% 17%

19%

22% 22%

29%

32%

% of respondents whose companies use applications run on a public cloud computing service

Source: ChangeWave Research, a service of 451 Research

Which business processes are in the cloud?

Email Systems

CRM

Databases

Web Application

Collaboration Tools

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Source: ChangeWave Research, a service of 451 Research

Top 5 areas where companies are supporting applications on public cloud computing services

(12/28/10): 2H '09, n=50; 1H '10, n=6; 2H10, n=34.

Timing the movement of workloads to the public cloud

Source: TheInfoPro, a service of 451 Research

(12/28/10): 2H '09, n=50; 1H '10, n=6; 2H10, n=34.

Cloud: cure-all for the enterprise?

The cloud enables business agility

Resources on demand

Programmatic access

Pay-as-you-go

Solving the Cloud performance problem

Cloud and Application Performance

Getting closer to your users – building a datacenter

What are typical costs for an enterprise datacenter build?

Costs impacted by current needs

What are projected requirements in 5 yrs?

Costs vary by facility type, location

Typical cost: $15m per MW of IT load using traditional methods

Prefab modular datacenter: $9m/MW

Getting closer to your users – taking colo space

What about colocation?

Source: 451 Research

Getting closer to your users

What are typical costs for colo services?

Same capacity planning issues as building a datacenter

Costs vary by facility type, location

Typical cost: $200m per kW (avg)

Add in: installation, cabinets, cabling, bandwidth

Your mileage may vary

Is moving to a different cloud enough?

Response Time for app hosted on EC2-Singapore

What about page load times in China?

Source: Cedexis Radar.

Average page load times (seconds) by network

CHINANET-IDC-BJ-AP IDC, Chi…

CNCGROUP-SH China Unicom Sh…

CRNET CHINA RAILWAY Interne…

CHINANET-BACKBONE No.31,Jin…

CHINANET-SH-AP China Teleco…

CMNET-GD Guangdong Mobile C…

CHINATELECOM-HE-AS-AP asn f…

BACKBONE-GUANGDONG-AP China…

CHINA169-BACKBONE CNCGROUP …

CHINATELECOM-SD-AS-AP ASN f…

CMNET-V4SHANDONG-AS-AP Shan…

CNCGROUP-GZ CNCGROUP IP net…

CHINATELECOM-TJ-AS-AP ASN f…

CNCNET-CN China Netcom Corp…

CHINA169-BJ CNCGROUP IP net…

CHINA169-GZ China Unicom IP…

ERX-CERNET-BKB China Educat…

CNNIC-CN-COLNET Oriental Ca…

TONET Beijing TONEK Informa…

CNIX-AP China Networks Inte…

CNNIC-WASU-AP WASU TV & Com…

TOPWAY-NET ShenZhen Topway …

CNCGROUP-SZ CNCGROUP IP net…

CNNIC-PRIMETELECOM-AP Beiji…

CSTNET-AS-AP Computer Netwo…

0.00 1.00 2.00 3.00 4.00 5.00 6.00

What about performance in Brazil?

Average Response Time (milliseconds)

Amazon EC2 - South America …

Internap AgileCLOUD NY

Amazon EC2 - US East 1A

Rackspace Cloud

Internap AgileCLOUD TX

Windows Azure - US South

Windows Azure - US North

CloudSigma US

PhoenixNAP

Internap AgileCLOUD CA

GoGrid

Amazon EC2 - US West (CA) 1…

Google AppEngine

Internap AgileCLOUD AMS

Instacompute London

Amazon EC2 - US West (OR) 2…

Windows Azure - EU North

Windows Azure - EU West

Amazon EC2 - EU West 1A

CloudSigma EU

Joyent

Amazon EC2 - Asia NE (Tokyo…

InstaCompute India

Internap AgileCLOUD Asia

Windows Azure - Asia East

Amazon EC2 - Asia SE

InstaCompute Singapore

Windows Azure - Asia SE

0 100 200 300 400 500 600

Source: Cedexis Radar.

What about error rates in Russia?

Amazon EC2 - EU West 1A

Instacompute London

Internap AgileCLOUD AMS

CloudSigma EU

Amazon EC2 - US East 1A

GoGrid

Google AppEngine

Windows Azure - US North

Internap AgileCLOUD NY

Windows Azure - EU North

Internap AgileCLOUD TX

Amazon EC2 - South America …

Internap AgileCLOUD CA

PhoenixNAP

CloudSigma US

Amazon EC2 - US West (OR) 2…

InstaCompute India

Windows Azure - EU West

InstaCompute Singapore

Rackspace Cloud

Amazon EC2 - US West (CA) 1…

Amazon EC2 - Asia SE (Singa…

Amazon EC2 - Asia NE (Tokyo…

Windows Azure - US South

Internap AgileCLOUD Asia

Joyent

Windows Azure - Asia East

Windows Azure - Asia Southe…

0.000% 0.100% 0.200% 0.300% 0.400% 0.500% 0.600% 0.700% 0.800% 0.900% 1.000%

Source: Cedexis Radar.

% of measurements that resulted in error or session time out

Connecting Cloud and CDN for better performance

Cloud and Application Performance

Connecting cloud and CDN

Don’t leave users or capital stranded on an island!

Closer alignment of business needs and costs

Balance flexibility of on-demand services with end-user performance

www.cdnetworks.com

INCREASING CLOUD PERFORMANCE IN EMERGING MARKETS

(CHINA, RUSSIA AND INDIA)Presented by Jeff Kim, Chief Executive Officer, Americas and EMEA

AGENDA 1.About CDNetworks

2.Emerging Markets = Growth Markets

3.Problem / Solution

4.Customer Success Stories

THE SOLUTION I CDNETWORKS

The Cloud Acceleration Network140 Points of Presence on 6 Continents

EMERGING MARKETS = GROWTH MARKETS2

GLOBALITY

PROBLEM / SOLUTION3

PROBLEM

Cloud Migration

CDNetworks | Confidential 29

X But your Cloud is still physically centralized….

• Slow Application Performance• Unusable Applications• Unhappy Users

Distant Customers, Users, Employees, Partners, Vendors

PROBLEMNear Datacenter / Cloud

• Fast Application Performance• Happy Users

PROBLEM•The diagram below shows the reality of web application performance

•Performance degrades as the distance from the Cloud increases

InternetInefficiencies

CloudLocation

Oregon Australia BeijingNew York London Berlin

PROBLEM WITH OTHER SOLUTIONS

Datacenter Build Out• Attempt to get close to end-users• Expensive• Complex• Sync problem

1

Application Appliances•Application Device Controllers (ADC)

• Load balancing, SSL offload, compression• Not bi-nodal so doesn’t solve middle mile

problems• Ex: F5, FastSoft

•WAN Optimization Controllers (WOC)• Bi-nodal used for point-to-point• Not useful for many end-users• Ex: Bluecoat, F5, Riverbed

2

Traditional CDN services• 75% of web applications = non-cacheable• Only assist with cacheable content

3

$

ADC

WO

C WO

C

Cacheable

non-cacheable

cache

SOLUTION

• Extends your Cloud into a globally distributed Cloud. Reaches every corner of the world (China, India,

Russia, Middle East, Africa, US, EMEA, Australia, Japan, Korea)

• Dynamic transactions are accelerated over a ‘Fast Tunnel’ over the public Internet

• Authoritative DNS is served from our Distributed Cloud

• Cacheable Web content is served from our Distributed Cloud

• Cacheable Media is served from our Distributed Cloud

• Storage is served from our Distributed Cloud

• Load Balancer from our Distributed Cloud

EMEA HQ

End-userMinimize chattiness

Maximize data transfer

CUSTOMER SUCCESS STORIES4

Collaboration & document sharing platform for law firms and banks

CHALLENGES

• Cloud hosted in London. Slow web page loading and document transfer speeds outside the UK—particularly in the US and Australia

• Impeded collaboration between large clients’ global offices

• Potential threat to reputation for delivering a responsive service

• Rejected hosting data centers outside UK because of high costs of building and managing

“To maintain our hard-fought reputation, we sought to address the issue of global Internet performance as quickly as possible. We didn’t want it to limit our ability to serve our international users.”

- Saviz Izadpanah, IT Director, HighQ Solutions

CUSTOMER SUCCESS STORY

RESULTS

• Accelerating HighQ’s product offerings with Dynamic Web Acceleration resulted in drastically better end-user experiences in both Australia and the US. In fact, download speeds in these locations increased by 2,000% and 1,000%, respectively.

• Between Australia and the UK, document downloads and page loading speeds accelerated from 50Kbps to 1000Kbps per second.

"Global organizations are becoming increasingly dependent on cloud-based solutions and, by using CDNetworks, we’re now able to give them the high performance they expect from anywhere in the world"

- Saviz Izadpanah, IT Director, HighQ Solutions

CUSTOMER SUCCESS STORY

CHALLENGES

• Customers have employees accessing the service from everywhere around the globe

• Large, strategic customers’ China employees experienced extremely high latency

• Highly dynamic application data. Caching not an option for personalized employee benefits information

• Cloud hosted in London. Planning to build more costly datacenters with replication, but performance would still be a problem

CUSTOMER SUCCESS STORY

Benefits administration platform providing a cloud-based solution for organizations to design, administer and manage the very best possible benefits schemes for their employees

“We realized that we needed help with reducing latency for our customers, especially those with employees in emerging markets.”

-Mark Kay Head of Technology Infrastructure, Thomsons

RESULTS

• Under 3 second load time for web application pages

• Application now useable around the globe

• Consistent user experience

CUSTOMER SUCCESS STORYAnytime highly personalized content needs to be delivered from centralized data centers or even the cloud to remote locations, latency could be an issue.

CUSTOMER SUCCESS STORYSEMI is the global industry association serving the manufacturing supply chain for the

micro- and nano-electronics industries, including:

• Semiconductors, Photovoltaics (PV), High-Brightness LED

• Flat Panel Display (FPD), Micro-electromechanical systems (MEMS)

• Printed and flexible electronics, Related micro- and nano-electronics

CHALLENGES

• Cloud hosted on Amazon AWS

• Reduced IT staff and budget called for simplified IT infrastructure

• Switched from proprietary content management system to cloud-based Drupal for cost savings, but performance suffered

• Emerging market growth in China and India necessitated improved reliability and higher performance of the website in those locations

• Existing CDN provider had no points of presence in China

“We didn’t know if there was a single CDN or Web hosting service provider who could help. Even if there were one, would they be able to deliver services at a reasonable price?”

- Shawn Gordon, Director Global IT Operations and Technical Services, SEMI

RESULTS

• Cost savings: • With 100+ points of presence from CDNetworks, they were able to consolidate web hosting to one

provider • Implemented Drupal for all 25 SEMI websites

• 100% uptime in China and globally due to CDNetworks understanding of the website and cloud application rules in China

• 20 seconds• High errors

• 9 seconds• Low errors

China performancewith and without

CDNetworks

“Not only did they have the capabilities and global reach we required, they could combine all their services and regions into one simple plan. That’s the kind of operational simplicity and pricing visibility we needed.”

- Shawn Gordon, Director Global IT Operations and Technical Services, SEMI

CUSTOMER SUCCESS STORY