cisco openstack private cloud partner overview june 2015 ww services partner organization
TRANSCRIPT
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Cisco OpenStack Private Cloud summary (1/2)CUSTOMER OPPORTUNITY
Who are the target customers?
• Customers that are interested in experimenting with OpenStack, focused on private cloud, and price conscious
• Target verticals include Web-Scaling companies, Big Data companies, Retail, Financial Services, Healthcare, Telco, Media, Education
Who is the buying center?
• Primary target: CTO, Enterprise Architect• Primary influencer: CFO• Primary decision maker: CIO
What are customer pain points?How do customers benefit from Cisco OpenStack Private Cloud?
• Customer needs flexible and scalable computing resources; want to pay ‘by the drink’
• Customer is interested in cloud; but public cloud does not serve security, compliance needs and complex workloads
• Customer lacks ability and resources to build out DIY private cloud on their own
• Private cloud which provides scalability of cloud with ‘as-a-service’ consumption model
• As a private cloud created for the customer, it can be built for security and compliance needs
• Cloud is built and managed remotely by COPC, so there is no need for large internal IT department
What are primary drivers for customers’ COPC purchases?
• Customer’s desire to shift to private cloud and changing consumption model.
• Customer interest in experimenting with OpenStack
CISCO COPC OFFER
Offer description:
Cisco OpenStack Private Cloud offers “OpenStack as a Service” where COPC will build customer’s OpenStack based private cloud on-premise and will continue to run and manage the private cloud remotely for the customer
Key features:
• Private cloud on-premise
• Built and managed remotely
Partner roles:
• Reseller of COPC software and cloud infrastructure (e.g., UCS, Nexus) with opportunity to attach TS for infrastructure
Opportunities to sell:
• When customer is upgrading infrastructure (e.g., buying UCS and/or Nexus)
• When customer is considering cloud options such as AWS, Azure, VMware
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Cisco OpenStack Private Cloud as part of the Cisco Intercloud Fabric
VM Portability. Application-Centric Policy Control. Open Standards
Intercloud Cisco® Intercloud Fabric
Public Clouds
CloudServices and
Apps
YourPrivate Cloud
PartnerClouds
Cisco OpenStack Private Cloud
Microsoft Azure
Amazon Web Services
Solution overview
Control Choice Compliance Consistency
Offering1
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0
10
20
30%
2012
6
2015
9
22
Cloud infrastructure and service as percent of total WW IT spend
2020F
$111B $209B $615BCloud TAM
“55% of CIOs indicated they would source all their critical apps in the cloud by 2020”
Gartner, 2013 CIO Survey
Shift towards cloud will accelerate in next 3-5 years
WORKLOADS ARE INCREASINGLY MOVING TO CLOUD…
…THEREFORE, CLOUD IS A GROWING PERCENTAGE OF OVERALL IT SPEND
0
50
100
150
200M
2012
61%
39%
2013 2014 2015F 2016F 2017F
37%
63%
Installed workloads
6%
30%
(12-17F)
CAGR
Traditional data center
Cloud data center
Source: IDC, Gartner, Cisco Global Cloud Index (GCI)
Market Opportunity2
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Cisco OpenStack Private Cloud pricingPricing
SUBSCRIPTION MODEL EXAMPLE PRICING
• Subscription assigned to each availability zone. Two subscription models available:
- Three Month: Covers selected availability zone for 90 days and automatically renews after on a month-to-month basis
- One Year: Covers selected availability zone for 12 months and automatically renews on annual basis
• Price of ongoing monthly fee based on:
- Subscription model (3 month or 1 year)
- Number of sockets
- Amount of block storage (per GB)
• Customers can upgrade subscription at any time by adding additional sockets*, but they cannot reduce until their subscription ends
Note: * If a customer adds additional sockets to their subscription before the end of its term, the price of a new socket license is determined by aggregating the total number of sockets already under all subscriptions and applying the price of the appropriate band
Installation fee $17,000 per Availability Zone (One Time Fee)
Sockets*
Standard Socket
Socket Band 3 month 1 year
Tier 1 40-100 sockets $264 $220
Tier 2 101-200 sockets $211 $176
Tier 3 201-500 sockets $165 $138
Tier 4 501-1,000 sockets $132 $110
Tier 5 1,000+ sockets $106 $88
Operations
Standard operations $0 (included with subscription)
Advanced operations 10% of monthly subscription fee
Unlimited CEPH
Storage$0.017 per GB
Offering1
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IaaS Manager & Hypervisor
Cisco OpenStack Private Cloud Cisco OpenStack Private Cloud offering
Compute UCS B-seriesUCS C-series Partner Cisco:
monitoring services
Network Nexus 9000 Partner
Storage
Partner
Cisco OpenStack Private Cloud CEPH Cisco CEPH storage offering
IaaS stackPlan Build / Implement Manage
Products to sell
Cisco:capacity planning for server needs
Cisco:capacity planning for storage needs
Partner
Partner
Cisco:capacity planning for network needs
Vendor:capacity planning for storage needs
Partner roles exist across stack Partner Program4 Partner role
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Partner profitability business casesBusiness casePartner Program4
Scenario 1:
Customer purchases COPC and COPC CEPH along with necessary infrastructure, such as Nexus 5300
and UCS servers
Scenario 2:
Customer only purchases COPC and COPC CEPH and uses existing
infrastructure resources
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Scenario 2: One year partner profitability business caseBusiness case
DEAL SIZE
• 40 sockets on COPC
• 544TB of CEPH Storage
• 1 year deal size
PARTNER RESPONSIBILITIES
• Partner sells COPC subscription without hardware
Customer price $194,592
Partner cost $162,432
Partner Gross Margin (could vary depending on discount
passed on to customer)
$21,733
11%
OVERALL DEAL ECONOMICS
Partner Program4
DIRECTIONAL
COPC $105,600 18% $86,592 7% $79,200 3% $2,376 $9,768CEPH $110,976 18% $91,000 7% $83,232 3% $2,496 $10,265
One-time installation fee $17,000 $17,000 10% $1,700
TOTAL $194,592 $162,432 $21,733
SERVICES/ SOFTWARE LICENSES
PRODUCT TOTAL LIST
PRICECUSTOMER
PRICEPARTNER
UPLIFTPARTNER
BUY PRICEPARTNER REBATE
PARTNER REBATE
PARTNER GROSS MARGIN
CUSTOMER DISCOUNT
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Scenario 1: One year partner profitability business caseBusiness case
DEAL SIZE
• 40 sockets on COPC
• 20 UCS servers
• 544 TB of CEPH storage
• 2 Nexus 5300 top of rack switches
• 1 year COPC subscription
PARTNER RESPONSIBILITIES
• Partner sells COPC subscription and associated hardware
Customer price $747,490
Partner cost $647,702
Partner Gross Margin (could vary depending on discount
passed on to customer)
$96,188
13%
OVERALL DEAL ECONOMICS
DIRECTIONAL
COPC $105,600 18% $86,592 7% $79,200 3% $2,376 $9,768CEPH $110,976 18% $91,000 7% $83,232 3% $2,496 $10,265
One-time installation fee $17,000 $17,000 10% $1,700
TOTAL $194,592 $162,432 $21,733
Nexus $150,000 50% $75,000 5% $67,500 4% $2,700 $10,200UCS* $1,179,120 60% $477,898 5% $417,770 1% $4,127 $64,257
TOTAL
$552,898
$485,270
$74,457
SERVICES/ SOFTWARE LICENSES
PRODUCT TOTAL LIST
PRICECUSTOMER
PRICEPARTNER
UPLIFTPARTNER
BUY PRICEPARTNER REBATE
PARTNER REBATE
PARTNER GROSS MARGIN
HARDWARE
Partner Program4
PRODUCT TOTAL LIST
PRICECUSTOMER
PRICEPARTNER
UPLIFTPARTNER
BUY PRICEPARTNER REBATE
PARTNER REBATE
PARTNER GROSS MARGIN
Note: (*) Includes UCS service price of $6.25K per year
CUSTOMER DISCOUNT
CUSTOMER DISCOUNT
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Cisco OpenStack Private CloudPartner rolesPartner Program4
• Available to:- All partners who have a purchasing entity in their region
- Requires new compensation model
- Consistent with CSPP performance management policies
• Compensation model:- 25% discount (off globally consistent list price)
- 3% premium rebate
- Up-front discounts are applied to transactions:‣ After COPC is installed at the customer site, partners receive an invoice from Cisco for the full term of the
subscription‣ The standard 25% discount is applied to the invoice
• No performance metrics associated with this offer- Offers in this new category are value-added subscription services that can be purchased at any time with no
delivery
Enhanced Managed Services within CSPP
Partner required to sign terms and conditions which include Service Level Agreements (SLAs) for customer
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Additional opportunity to build value-added services on top of Cisco OpenStack Private Cloud
Partner Program4 Partner roles
Note: * Network includes opportunity for security, firewall and load balances
IaaS Manager & Hypervisor
Compute
Network*
Storage
Managed services
Big Dataas-a-Service
Backupas-a-Service
SAPas-a-Service
Etc…
Cisco OpenStack Private Cloud offering
Nexus 9000
CEPH
UCS
Partner can plan, implement, manage all services on top of COPC
Value-add services
On top of solution, partner can provide:Agile application development, application re-engineering, workload migration, DevOps, ITSM
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Cisco OpenStack Private Cloud Bundle(MetaPod)
NEW!
Fast Path to OpenStack Private Cloud
Customers
• Agile IaaS for Developers
• Remote SaaS Delivery Model
• Alternative to Public IaaS for Developing Cloud-native Applications
3rd Party PaaS, SaaS, Database, etc.
Private Cloud Management & Orchestration
Identity & Security
Compute Services
Storage Services
Network Services
Compute & Storage
2 ASR Routers, 2 Nexus 9000, 3 UCS C-SeriesSupports 500 Nodes of Capacity
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Not For Resale - Proposal
Installation Fee ($17,500) Waived
MYAZ1
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• Solution for Agile and Fast IT • Ready to go – Proven Solution• Professional Services and Pull
Through Opportunities
COPC Summary
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Appendix: Technical overview
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Cisco OpenStack Private Cloud How Is It Deployed?
West AZOPENSTACK & AWS APIs
OPENSTACK UNIFIED CLI
HA SERVICE ORCHESTRATION
UPDATE SERVICE
24X7 CLOUD OPERATIONS SUPPORT
HARDWARE
Compute Networking Storage Identity
Dashboard
East AZOPENSTACK & AWS APIs
OPENSTACK UNIFIED CLI
HA SERVICE ORCHESTRATION
UPDATE SERVICE
24X7 CLOUD OPERATIONS SUPPORT
HARDWARE
Compute Networking Storage Identity
Dashboard
Europe AZOPENSTACK and AWS APIs
OPENSTACK UNIFIED CLI
HA SERVICE ORCHESTRATION
UPDATE SERVICE
24X7 CLOUD OPERATIONS SUPPORT
HARDWARE
Compute Networking Storage Identity
Dashboard
Self-Contained Managed Set of Resources- Computing- Storage- Network- Identity
Geographic dispersed or same location
On demand multitenant platform
Availability Zone (AZ)
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Cisco OpenStack Private Cloud Availability ZoneWhat Is “in” an Availability Zone (AZ)
User Access, Control, Orchestration, Management over Virtual Cloud Infrastructure
Control Tier
Hypervisor TierHosts pools of on-demand “elastic” virtual resources
Virtual Networks
Users and Access Enforcement
Projects, Users, and Instances
Virtual Volumes
vm vm vmvm vm vm
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AZ Logical ArchitectureCisco OpenStack Private Cloud Architecture
Controller 1 Controller 2 Controller 3
Hypervisor
Hypervisor
Hypervisor
Hypervisor
Hypervisor
Hypervisor
Hypervisor
Hypervisor
Hypervisor
Controller Nodes (Controller Tier)- User and Admin Dashboard- OpenStack® Service and
Orchestration - OpenStack API Endpoint- Instance Security- Networking- Monitoring, Metrics, Live Stats
Hypervisor Nodes (Computing Tier)- Managed by Cloud Controllers- Host Projects or Tenants- Run the VM Workload- Utilizes Virtual Networking- Consumes Cloud Storage- Scales to 100s of Nodes
Controllers Nodes
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Cloud Controller ArchitectureFeatures and Benefits
Controller 1 Controller 2 Controller 3
Stateful Services - 3 way HA cluster - Databases, Messaging System, Metrics System
Core HA Support Services - Corosync, Pacemaker, HA Proxy, Keep-alive
Stateless Services - 3 way active - Dashboard, APIs, Nova Conductor, Nova Cert, Cinder
Network Infrastructure
HA Hardware Design- 3-Node HA Standard Cluster- Scalable (+2)- HA Core Services
HA Software Services Design- Clustered Databases- Clustered Message Bus- Stateless Services Are 3-Way Active - Failover of Key Services
Controllers Nodes
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Computing Architecture Computing Features
Full Control over Instance Type Definition- OS type, VM size (number of CPUs, RAM, and disk)- Cloud volumes- Security
Wide Variety of Image Types, Including AMI- AMI - Amazon Machine Image- RAW, QCOW2 - KVM- VMDK - VMware
Optimized KVM Hypervisor- Live migration of VM instances (CLI)
VM Memory Deduplication (KSM)- Allowing full hypervisor memory utilization
Modular Instance Scheduler (Filter)- CPU oversubscription (custom)- Advanced placement algorithms
Linux and KVM
Project 1
Project 3 Project 4
Linux and KVM
Project 3
Linux and KVMx64 Server – Multicore, Large Memory,
VT-Enabled Processor
Project 1vm vm vm vm
Project 2vm vm vm vm
Project 3vm vm vm vm
Project 4vm vm vm vm
Hypervisor Node(s)
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Multiproject or Tenant Capable Projects and Tenant Are Separate Groups in the Platform
Layer 2 Isolation (via 802.1Q VLANs)
Layer 3 Segregation- Each project has one or more
distinct IP subnets- Additional IP subnets are allocated
on demand automatically
Users Control Security Resource Within Their Own Project(s)- Public IP addresses- Firewall security rules and groups- Public and private keys- VM access and control
Project and Tenant Features
Hypervisor Hypervisor
Project 1 - VLAN AProject 2 - VLAN B
Project 3 - VLAN C
vm1
Project 1
Project 2
Project 3
vm2
vm3
vm1
vm2 vm3
vm2
vm1 vm4
Project 1
Project 2
Project 3
vm5
vm6
vm3
vm4 vm4
vm5
vm6
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Networking Options
Cisco OpenStack Private Cloud Gateway Model- VM traffic flows thru gateway
controller nodes
Hardware Gateway Model- VM traffic flows through gateway in
switches
VLAN + Network Manager- Auto-extend VLANs- Support for VXLAN on pure Layer
3 networkOn-demand floating IPs (Cisco OpenStack Private Cloud gateway model) Integrated firewall and NATCapabilities virtualized load balancing Hypervisor Hypervisor
Project 1 - VLAN A (H/W)
Project 2 - VLAN B (OpenStack)Project 3 - VLAN C (MC)
vm1
Project 1 Project 2 Project 3
vm2
vm3
vm1
vm2 vm3
vm2
vm1 vm4
Project 1 Project 2 Project 3
vm5
vm6
vm3
vm4
Controller Tier
Gateway
Service Provider
Hardware Gateway
vm4
vm5
vm6
Cisco OpenStack Gateway
Service Network
Multiple Network Architectures
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Enhanced Dashboard
User and Admin Access
Self-Service Provisioning
Identity
Integration of Live Statistics and Historical Statistics
Cloud Metrics
Custom Branded
Cisco® OpenStack Private Cloud Enhanced Dashboard
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Support Options
Standard and Advanced Operations Support
Feature Description Standard Operations Advanced Operations
Support help center
Cloud administrator access to support portal, product documentation, and support engineers 24x7x365
Website and phone Website and phone
Service-level agreement (SLA) guarantee
Response-time SLA and uptime guarantee Emergency request ticket response time of 2 hours or less
Emergency request ticket response time of 30 minutes or less, and 99.95% Cisco OpenStack Private Cloud platform availability guarantee
Maintenance and upgrades
Proactive troubleshooting, including operating system, cloud software patches, upgrades, and virtual machine migrations
Yes Yes; includes customer-defined maintenance windows
24x7 proactive monitoring
Proactive monitoring of cloud servers and private cloud platform Yes Yes
Capacity planning consultation
We work with you on your cloud performance and scaling to meet both current and future needs; includes help with server, storage, and networking equipment choices and architecture
Available through Cisco® Professional Services
Yes; up to 4 hours a month
Additional support available through Cisco Professional Services
Capacity additions
Support for when you need to add to your existing cloud controllers, hypervisors, storage, or networking resources
Yes Yes
Hardware replacement and refresh support
Support for when you want to refresh or replace your cloud controllers, storage, or networking resources (Note: Support for replacing defective hardware is included.)
Available through Cisco Professional Services
Yes; up to 2 projects per year
Additional support available through Cisco Professional Services
Price Included 10% of monthly recurring fees