cloud market

7/28/2019 Cloud Market

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© 2010 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID

Enabling Cloud Services

Telkom Indonesia – 13 August 2010



Agenda

Cloud Computing

Cisco Services Market

© 2009 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 2

Cloud Market in Indonesia

Cloud Business Model

Cloud Technology Overview



Cloud Computing

Definition

IT Resources and Services

that Are Abstracted from theUnderlying Infrastructure andProvided “On Demand” and“At Scale” in a Multitenant


Anywhere,Anyone,

Any Service

A style of computing where massivelyscalable it-enabled capabilities aredelivered “as a service” to multipleexternal customers using internettechnologies.

Source: Gartner “Defining and Describing an

Emerging Phenomenon,” June 2008.



Cloud Computing

Components

44Deployment

Models

Deployment

Models

55Key

Characteristics

Key

Characteristics

Five characteristics that justify using cloud-based

services

Five characteristics that justify using cloud-based

services

Four deployment models - Build your own to fully

outsourced

Four deployment models - Build your own to fully

outsourced

11 ManagementManagement

33 Delivery ModelsDelivery Models

22Payment PlansPayment Plans

Three delivery models - SPI as a Service

delivery model

Three delivery models - SPI as a Service

delivery model

Two ways to pay – All you can eat or pay-per-drinkTwo ways to pay – All you can eat or pay-per-drink

One management system is a necessity –

Integrated, sophisticated, and all-encompassing

One management system is a necessity –

Integrated, sophisticated, and all-encompassing



Cloud Simplifies IT for BusinessCloud computing offers:

• Flexibility of resource allocation

• Efficiency of resource allocation

• Democratization of resourceallocation

Which enables:

• Agile IT service delivery

Provisioning in minutesTime to market reduced 50+%

• Cost Optimization

Capital costs decrease (often 50+%)Operations costs lowered 25-30%

Cisco delivers cloud computing benefits

WITHOUT sacrificing service levels, security or compliance



Cisco-Enabled Cloud Services

What We Offer Today

Softwareas a Service

Communications/Collaboration as a ServiceVideo as a Service

Webex as a Service

Platformas a Service

Ecosystem Partner Solutions


Cloud –Enabling

Solutions

Cisco Cloud Enablement ServicesUnified Computing Systems +

Cloud-Centric Network

Infrastructureas a Service

Cisco IaaS-Enabled Cloud Solutions:CaaS, DR, VDI, Cloudburst, Dev/Test QA



Cloud Computing Journey

Standalone Clouds Private Clouds

External,Off-Premise

Inter-Cloud

Security SLAs

Interoperability

Key Challenges: Federation Portability

Market

Key Challenges:

Internal,On-Premise



Ecosystem Partners

Horizontal Virtualization ModelVirtualization

Provide Storage Arrays for DCsStorage

Enable Automation of ManagementService Orchestration


Integration to Enhance ApplicationPerformance Product Offerings

App/Databases

Link to Cisco Managed ServicesStrategy

Managed Services/Outsourcers

Develop Service Offerings

for Facilities

Facilities

Business and IT ProcessBusiness ProcessTransformation



Agenda

Cloud Computing

Cloud Computing Market







A Growing Cloud Computing Market

Estimated at ~$60B in 2012

WW Cloud Computing Market~$60B: Revenue Estimate

"The move to cloud computing is the

Greater than 20% growth expected year over year, with infrastructure as a servicerevenue at ~$15-20B by 2012.

—Cisco Study Results 2009

11

Source: Cisco IBSG; Saugatuck, IDC, Gartner, TripleTree, Deutsche Bank

computing industry.“

—Gartner 2008

The Cloud Wars: $100+ billion at stake … by2011 the volume of cloud computing marketopportunity would amount to $160B, including$95B in business and productivity apps (email,

office, CRM ) and $65B in online advertising.

—Merrill Lynch



Amazon Web Services offers on-demand

computing / storage well below typical TCO

AMIAMICustomer

Priceamazon.com

$ 0.20 / GB

TCO

Typical Data Center

"Scale up and down in

10 minutes"

Sometimes weeks to

deploy new servers


Amazon

S3

AmazonEC2

$ 0.15per GB / month

$ 0.10per wall clock hour

Xen virtualized O/S,providing equivalent of • 1.7GHz x86 processor

• 1.7GB Ram

data transfer cost

$ 3 - $9per utilized hour

Case examples

• Healthcare ($7)

• Insurance ($5)

• Transport ($4)

VMWareTCOCalculator ($9)

$ 1 - $15per GB / Month

Source: Amazon Web Scale Computing – CTO; http://www.cisco.com/web/about/ciscoitatwork/featured_content/fc_july_aug_2007_article03.html



Service Providers Move Up the Value Chain

Evolution of SP Services: SPI Model


Business Con. (DR)

Cloud Burst / Hi IO

DT / QA

Complexity

Colocation



The Journey

outsource their IT

Customer wantsmaximum performance,

scale & value

SP Owned& SP Managed

(Dedicated Nodes)

Customer Owned,Customer or SP Managed

SP Ownedand SP Managed

(Cloud Computing)


Space, Power, B/W

Managed Services

Customer Operating System

Customer or SPInfrastructure

Managed Services

Service Provider

UtilityInfrastructure

Space, Power, B/W Space, Power, B/W

Customer Operating System

Customer Infrastructure

Service Provider Infrastructure

Managed Services

Consulting

Customer wants tocontrol operations

env ronmen

Customer wants tocontrol OS & appsbut not hardware

Moving Customers from Left to Right for SP in IT Hosting Business

Customer Owned

and Customer Managed



Cloud Adoption InhibitorsRate the Challenges/Issues of the “Cloud:/ON-Demand Model

Security

Performance

Availability

Hard to Integrate

#1in Security


Application Relevance Speaks to Performanceand Availability KPI Demanded by Customers

0% 20% 40% 60% 80% 100%

with In-House IT

Not Enough Abilityto Customize

Worried Cloud willCost More

Bringing Back In-Housewill be Difficult

Not Enough Major Suppliers Yet



Agenda

Cloud Computing








Figure 1: Magic Quadrant for Web Hosting and Hosted Cloud SystemsInfrastructure Services (On Demand), 2009

Challengers Leaders

AT&T

Savvis

Terremark

A Scorecard for Cloud Service Providers


Source: Gartner (June 2009)

Media Temple

Quality Technology Services

Niche Players Visionaries

Amazon

GoGrid(previously Servepath)

JoyentOpSource

Softlayer

Layered Technologies

SunGard IBM

Completeness of Vision



Examples of On-Demand IT offered by NSPs

OverviewCompute-aaS

“Computing as a Service” http://www.verizonbusiness.com/us/products/itsolutions/caas/

“Dynamic Computing”

http://www.t-systems.com/tsi/en/226028/Home/Solutions/Real-ICT/Dynamic-Services/DynamicServices


“Synaptic Hosting Service” http://www.business.att.com/enterprise/Family/application-hosting-enterprise/synaptic-hosting-enterprise/

Storage-aaS

“Synaptic Storage as a Service” http://www.business.att.com/enterprise/Family/application-hosting-enterprise/storage-as-a-service-enterprise/

Software-aaS

“T-Suite Applications”

http://www.telstrabusiness.com/business/portal/online/site/productsservices/tsuiteapplications.52025



Agenda

Cloud Computing








Journey To Cloud Computing….Market Maturity

Intercloud

Consolidation Virtualization Market

Some customers

Some companystarting to use it –small scale andlimited apps


Data Center Networking

Unified Fabric

Unified Computing

Private Clouds

Potentialcustomers were

here today

,

or partially



Managed DC Services Opportunity In IndonesiaTotal CAGR Of 29.9%.

© 2009 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 27Source: IDC, APAC Managed Services Opportunity, Nov 2009



Server Virtualization


Key Drivers for Server Virtualization• Reduce cost/saving in buying fewer servers

• Improving server virtualization• Simplify management/maintenance

• More energy efficient – consume less power

• Server consolidation

Average virtualized server :$13,000



Amazon sets a low bar for low-end pricing at $0.10/vm/hour for a small VM.Prices vary significantly, however, for larger VMs and VMs with OS and Software.VM pricing is more consistent when normalized by GB of vRAM.

No OS prices

Prices increase withOS and more

Cloud Revenue Stream Model – Set by Amazon


Hosting.com at a discountfor larger machines



Agenda

Cloud Computing








Top 5 Services for IaaS Delivery

Services that land squarely for IaaS Delivery

DevTestQualityDevTestQuality

ComputeComputeVirtual

DesktopVirtual

Desktop

Hot – Cold

Web frontendfor Application

BusinessContinuit

y(Disaster

BusinessContinuit

y(Disaster


Assurance

Environment

Assurance

Environment

Service

Service

High IO / Cloud

Burst

High IO / Cloud

Burst

ecoveryecovery



End-to-End Go-to-Market Support

for Cloud Services


P/D/I Services SLA-based Operate

Services Cisco Capital

Financing

Market Analysis for Cloud-able Apps

Services Definition

Business Case

Sales Training &

Enablement

Demand Gen

Joint Market

Development Prog.

DevelopDifferentiated

Services

AccelerateSuccess and

Profitability

Reduce Risk,Cost, and

Time-to-Market



Time-to-Value Focused Engagement Models

MSPHosted

MSP Hosted/Cisco Operate

Cisco can Support Different Models for

Deploying Cloud Services


Hosting

Operate

Build/Integrate

Telkom Telkom

Telkom Cisco Cisco

Cisco Cisco Cisco

Our goal is to augment your delivery capabilitiesso you can address new opportunities faster



Cisco will provide ongoing Solution Supports and

Design Services for Telkom’s Business Interest

Pre-Sales non-chargeable advisory to drive client solutions based on the CiscoVBLOCK Solution

Post-sales chargeable advisory services through Cisco’s Advanced ServicesTeam to support Telkom in designing customized Client Solutions

Focus on ensuring key applications and SLA requirements from clients arebeing met by the most effective joint solution


Cisco Solution Support

Pre-Sales non-

chargeable advisory

services

Pre-Sales

chargeable advisory

services

Telkom DC & Cloud Offering

Client Agreed

Engagement

Client focused pre-

sales effort

Telkom Internal

Requirement

Examples of joint

solution design

engagements:

• High Available DR

Solutions

• Oracle andMiddleware

Clustering

• DC Segments

Purpose Build for

key clients

• Virtualized SAP

Solution



PAYG: Capacity Delivery ModelSystem

Capacity

We need to agree on

threshold ca acit to

Capacity upgrade

delivered as agreed SLA

(lead time,capacity)

VM sold

Vblock

Max.


Time

Cisco to deliver system

at initially agreed

capacity

trigger upgrade

Vblock

Min.



PAYG: Revenue vs Cost Model

PAYG as per

activated VM

blocks

System

Capacity

Revenue Stream

from End Users


Base payment

incl. operate services

Time

race

Period



Agenda

Cloud Computing








Essential

Characteristics On-DemandSelf Service

Broad NetworkAccess

ResourcePooling

Rapid ElasticityMeasured Service

Cloud Definition from NIST


ServiceModels Software as aService (SaaS) Platform as aService (PaaS) Infrastructure as aService (IaaS)

DeploymentModels

http://www.csrc.nist.gov/groups/SNS/cloud-computing/index.html

Private Public Hybrid Community



Cloud Delivery Models

Application(SaaS)

Applications at Scale(End users)

Platformas a Service

Execution Platforms at Scale(Developers)


Infrastructureas a Service

Infrastructure at Scale(System Administrators)

EnablingTechnology

Cloud Service Delivery at Scale(Public / Private Cloud Providers)



Success Story

Cisco Services Enables IaaS-Based Managed Services

Deliver new IaaS services to enterprise customers

Increase automation, efficiency, and scalability

of service delivery

Challenges


Priming program management function

created alignment across multiple teams

Delivered enhanced security

Enabled multitenant consolidation

Provided faster service creation and

delivery – at lower cost

Assured Savvis was number one tomarket – despite previously uncharted

waters of IaaS computing solution

Unified service delivery solution

Nexus 5000, 7000, 1000V

VMware vSphere 4, VMsafe API

Comprehensive architecture services

Overarching program management

Discovery analysis

Extensive solution level testingHigh- and low-level designs

Optimization services

Assessment service

Network support service

Continuous learning service



Potential Market for New Business…….Server Virtualization

Unit Shipments

Rack Factor 2009 2010 2011 2012 2013 2014 CAGR

Rack-optimized 12,147 15,329 17,160 18,877 20,876 23,466 14.1%

Rack Capable 8,645 10,923 10,256 10,373 10,687 11,241 5.4%

Tower/Pedestal 3,606 3,453 3,175 3,038 2,983 2,893 -4.3%

x86 Server


Blade 2,869 4,205 5,741 7,195 9,344 11,705 32.5%

Total 27,267 33,910 36,333 39,482 43,890 49,305 12.6%

*CAGR calculated from 2009 to 2014

Unit Shipments

Operating System 2009 2010 2011 2012 2013 2014 CAGR

Windows 22,917 28,732 30,553 32,635 35,664 39,204 11.3%

Linux 3,756 4,924 5,502 6,540 7,901 9,754 21.0%

NetWare 393 0 0 0 0 0 -100.0%

Unix 201 254 277 307 325 346 11.5%

Other 0 0 0 0 0 0 NA

Total 27,267 33,910 36,333 39,482 43,890 49,305 12.6%

*CAGR calculated from 2009 to 2014



Exploiting Cloud IaaS for

Business Benefit

redundant

with seasonal

units have

PC costs

development/

Computeas a Service

VirtualDesktop

Infrastructure

(VDI)

DevTestQuality

Assurance

Environment

High IO/Cloud Burst

BusinessContinuity(Disaster

Recovery)


,backup servers

rarely used

Cloud solution -shared DR -increases assetutilization, freesup equipment

Involves low risk

for enterprise(primaryinfrastructureuntouched)

Deliver correctcapacity in eventof a failover via

orchestrationautomation

,significant

capacity isunused outsidepeak times.

Cloud solutionenables rapidaccess – “burst” -to additional

capacity for peaks of demand

Shared to other business units atother times

Lower costs,meets variable

demand needs

compute

infrastructure

Cloud solutionprovides flexiblecomputecapacity ondemand

Aligns cost to

usage –chargebackmechanismsnow feasible

Deliver rapidprovisioning viaorchestration

automation

,new application

delivery to users

Cloud solutionprovidersflexible, rapidlyprovisioned,secure desktop

Increases

lifespan of existing PCdesktops

Leverage highdegree of virtualization toachieve

economy of scale

separate

infrastructure,often unused

Cloud solutionprovides sharedresources withtight SLA for each

developmentteam

Free upequipment for new projects, domore with less

Leverage high

degree of virtualization



Cloud IaaS Architecture Overview

© 2009 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID

DCInterconnect

Virtual Infrastructure

VMVMPublicCloud

(ServiceProvider)

Private

CloudComputeStorageNetwork

ComputeStorageNetwork

ComputeStorageNetwork



Vblock Infrastructure PackagesLegacy vs. Vblock Infrastructure Packages

Optimized Infrastructure Streamlined Operational Control Cost and Risk Management

30% increase in server utilization 80% faster dynamic provisioning of storage and server infrastructure

40% cost reduction in cabling (fibre / patchcords etc.) and associated labor 50% increase in server density

200% increase in VM density Day to day task automation (vCenter and UCS Manager) 30% less power consumption

Minimum of 72 VMs per KW Continuous operation and availability (DRS/HA) 4X standard consolidation ratios (footprint)

Deterministic Performance Envelope for Individual or classes of workloads mobility

Presentation_ID

Imagine the power of three …

1MW, 10,000 Sq FtTraditional

(c-Class blade)Vblock

DC efficiency 100% 170-200%

Cabling costs $2.7M <$1.6M

# physical server 720 1200-1400

# VMs 9300-10800 12000-28000

VM per KW 7.2 12-28

Cl d C t St t M d l S t ‘Wh Ci ’ P iti



Size of Config 120 Virtual Machines (VMs)Storage 50 GB / VM = 120 x 50 = 6 TBMemory / Blade 64 GBMemory / VM 1.5 GBVMs / Server 42

Summary :Network Cisco $ 60K 20%Vmware vSphere + VC $ 36K 12%Citrix Zen $ 24K 8%

Cloud Cost Structure Model – Set ‘Why Cisco’ Proposition

CiscoNetworkBuild Out

Cisco UCSOpportunity(80% virtual servers)


Storage EMC / NETAPP / 3PAR iSCSI 12 TB $ 84K 28%

Server Cisco UCS/ IBM / HP / DELL $ 72K 24%Cloud SW Service Orchestration $ 24K 8%Operations Power,Space,Cooling,Operations $ 150KTotal $ 450K

Cost per VM $450K / 36 months $ 104 / VM / MonthMargin 30 % $ 30.1

Market price $ 134.10 / VM / Month

Overall VCEBootstrapProposition60%



Ty

Ty

Ty

Vblock limits to Pre-Integrated Best of

Breed

Protect

Automate

Envision,Security Mgr SRDF,Data DomainSite Recovery Mgr

RAM & RKM

CMDB,Smarts,DPAUnified Infrastructure Mgr

UCS Mgr,ECC,

RecoverPointReplication Manager Data Loss Prevention

RAM & RKM

Avamar RecoverPoint

CMDB,ServiceDeskUnified Infrastructure Mgr

ServiceDesk,UCS Mgr NaviSphere

Unified Infrastructure Mgr UCS Manager NaviSphere


p

e

1

p

e

2

p

e

0

Server

Storage

Networks

Virtual

Machines

3,000-6,000 800-3,000 300-800

UCS B-Series 4-8 chassisvSphere Enterprise plus

Symmetrix VMAX SE/ME

Nexus 5,000

MDS 9506

UCS C-SeriesvSphere Enterprise plus

UCS B-Series 2-4 chassisvSphere Enterprise plus

CLARiiON CX4-240 CLARiiON CX4-480

Nexus 5,000

MDS 9221

Nexus 1,000

MDS 9221

E d h b t diff t t



50

60

Software-as-a-ServiceUsually delivered to browsers

End-users can choose between different types

of on-demand IT services

WW Market

$Bn - Revenue Estimate

The “SPI stack”


0

10

20

30

40

2008E 2012F

Infrastructure-as-a-ServicePhysical IT resources,on-demand

Platform-as-a-ServiceApplication development & run-timeenvironment

Source: Cisco IBSG; Saugatuck,IDC,Gartner,TripleTree,Deutsche Bank



Implementation models

Built Operate Tranfer White Label DIY

You do it3rd party deliver completeservice day-to-day

Buy/integrate infrastructureand management tools

3rd party: serviceinfrastructure owned andmanaged

3rd party design / build /Deliver / Managed

Transfer to SP

Outsource of entire designand implementation to 3rdparty.


organization process

Development

SP market and sell the serviceand provide 1st levelcustomer support

Control of destiny,possibleleveraging existing resources,sometimes cheaper than out-tasking or outsourcing

Fast GTM,shift the focuseson branding,marketing,pricing and customer care.Launch of new services withminimal up-front investment

Expensive,time-drain,integration issues,need tostay current on infrastructure,tools and know how ,shortfallin skills

Possible lack of controlCo management is un-chartered territory

3 rd party transfer operationprocess knowledge,providesolution training

Faster GTM

Reduced / Eliminate ITstaffing costs

ExpensiveHigh governance overheadRisk in migration / transfer

cloud market

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