webinar | so you think you know the cloud: hosting alternatives you may not know about

Presenter: Jeffrey Papen Date: December 17, 2014

So you think you know the Cloud?

Everything but your code®

Webinar presenta-on

•  This slide deck was used in a live webinar presenta-on on Dec 17, 2014.

•  You can watch the recording on demand by going here: hEp://bit.ly/1ywRoPs

Agenda

Cloud Background

Technology Pain Points

Cloud vs DIY vs Managed Hos-ng

What is Opera-ons-‐as-‐a-‐Service

Who is Peak Hos-ng

Summary

How do I know this guy is not full of…

Proprietary and confiden5al, not for public distribu5on.

Fair quesKon

20 years of Internet Plumbing here and here and here and here and here….


Define NERD: Kids named aRer RouKng Protocols (EGP & BGP)


Next Two: Thomas Crile & Ulysses Danger

But how is it we are all doing it “wrong”?


No, they just solved one problem and sold it as the soluKon to every problem


The Cloud is not magical


The PercepKon The Reality

How I describe the cloud to a non-‐techy


A Datacenter is a Datacenter (wah-‐wah)


VirtualizaKon is not Free


Mo’ oversubscripKon = Mo’ profit


Provider Customer

An ECU is 7 years old


They’re old, and it’s not preey

The Modern Server has 200 – 500 ECU of horsepower


ECU Instance

E5-‐2600v3, E5-‐2700v3, AMD 6378

How would you cut down a tree?


Nibble at the problem

Grip it and Rip It

OR

But What about the Network?


Hint, it’s not simng singing kumbaya

Same congesKon and loss, now with less visibility


Web 2.0 50:1 over-‐subscripKon


Big-‐Data 1.3:1 oversubscripKon


But what about Storage and SSD?


The Cloud solves some, not all problems


Myths of the Cloud

Cloud allows me to get my applica-ons up and running faster Cloud allows me to pay only for what I actually use Cloud enables IT to more rapidly adjust resources to meet fluctua-ng and unpredictable business demand

Staffing •  Subject maEer experts are hard to find •  Employees are expensive to recruit, hire, train, and manage •  Technical opera-ons require 17 different skill sets

Containing Economics •  DIY is very expensive un-l your scale is massive •  Throwing money at the cloud •  Most outsourced services to not lower your staff’s workload

Scaling Correctly •  The nagging fear that when sales, marke-ng, product click – “the site is down” •  The way the cloud scales is fundamentally flawed •  If your staff is “learning on your dime,” those are expensive lessons

Technology’s 3 Most Common Pain Points


The growth of the “…as-‐a-‐Service” industry

SERVICE

•  Today, “…as-‐a-‐Service” as a technology approach is seemingly everywhere –  Pla_orm-‐as-‐a-‐Service, Infrastructure-‐as-‐a-‐Service, So`ware-‐as-‐a-‐Service, Data-‐as-‐a-‐Service, etc.

–  But shouldn’t “service” be predicated on people providing the service, not so`ware or tools?

–  Cloud “Managed services” are actually “self service”

Cloud vs. DIY vs. Managed HosKng

•  A data center is a data center – Same architecture – Same hardware – Same OS

Cloud may be a fit for you….

You are just gecng started and focused on using the cloud for development and tes-ng Does your business do a lot of sporadic batch compu-ng? If you workload isn’t 24/7, cloud can be a good choice Do you need a disaster recovery op-on? Some services allow you to store massive amounts of data cheaply

Cloud HosKng Business Model

Cloud Hos-ng provides tools, not service – Race to the boEom to cut costs – Oversubscrip-on to generate profits – No transparency – deliberately obfuscated – Push problems back to the customer – Solu-ons not tailored for individual customer requirements for scalability and performance

– Performance and cost do not scale propor-onally – Customer churn is expected and acceptable

Keeping it all in-‐house (DIY)

Ask yourself two key ques-ons –  Is doing all this yourself fundamentally moving your business forward?

–  Does doing it yourself give you a strategic advantage over your compe--on?

Example:

SoluKons Landscape – Pros

Cloud HosKng DIY Managed HosKng Elas-city is a na-ve feature that requires no addi-onal effort to design and configure

Control everything from architecture to hardware to opera-onal procedures

Customize configura-ons to be cost efficient from two servers to a thousand servers

Provides an easy point of entry for start-‐ups

Get full visibility into the infrastructure suppor-ng your applica-on to improve tuning and troubleshoo-ng

Take advantage of shared network and data center infrastructure that you would otherwise need to acquire for DIY

Most cost effec-ve at massive scale when you have buying power and economies of scale

Bring in exper-se you don’t have in-‐house to deliver custom built-‐to-‐suit infrastructure

Leverage experienced professionals to manage and support your infrastructure so you can focus completely on core business objec-ves

SoluKons Landscape – Cons Cloud HosKng DIY Managed HosKng

The agility that cloud provides requires paying a significantly higher premium

Total cost of ownership is difficult to jus-fy un-l you’re using thousands of servers

Does not provide as much flexibility as a DIY solu-on

There’s no certainty around capacity because performance doesn’t scale linearly

Running a data center soup to nuts is difficult to do well and technical opera-ons does not synergize with core objec-ves

You need to trust that your provider knows what it is doing; this can be difficult to verify un-l a`er a migra-on and you’re locked-‐in

A small VM and a giant physical server take the same amount of work to manage, but requires managing significantly more instances

Slower speed to deployment and troubleshoo-ng compared to a professional technical opera-ons organiza-on

Cloud is self-‐service and the cost of sourcing, training, and maintaining technical opera-ons staff does not synergize with core objec-ves

Cloud is unable to meet performance requirements for Big Data applica-ons

Peak HosKng’s OperaKons-‐as-‐a-‐Service™

Manage our customers’ en-re technical opera-ons departments – Everything but your code

–  From concept and design to build and execu-on to maintenance and ongoing support

–  Provide our customers with custom, dedicated managed hos-ng using a proprietary, 2N design

–  Dedicated equipment comes with dedicated support – We cover all 17 skills needed to run a data center ü  Architecture & design ü  Server Hardware ü  Storage ü  Network ü  Load balancing ü  Opera-ng system

ü  Applica-ons ü  Security ü  Out-‐of-‐band ü  Data centers ü  BGP ü  Virtualiza-on

ü  Database ü Monitoring ü  Aler-ng ü  Performance trend

analysis ü  Backup and archiving

Peak HosKng Overview

Staffing Ra-o –  Industry – 3 Staff / 200 – 300 Customers – Peak Hos-ng 3 Staff / 1 customer

Average Revenue Per User -‐ ARPU (per month) –  Industry -‐ $200 to $800 – Peak Hos-ng $75,000

Customer Results

•  Reduced monthly hos-ng fees by 50%

•  Increased capacity by 500%

•  No increase to tech ops staff

•  Migra-on from DIY to Peak Hos-ng’s OaaS reduced TCO by $1M annually

•  Deployed two custom data centers in less than four weeks

•  Delivered 100% transparency

•  Saved 50% on monthly hos-ng fees

•  Migra-on -me: less than four weeks

•  Migra-on from AWS to dedicated hardware doubled capacity at one-‐third the cost

•  Migra-on from AWS to reduced monthly fees

•  Improved performance •  Outsourced en-re tech

ops department

Summary

Managed Hos-ng is the best op-on if: –  Your business relies on technology to run –  You don’t want to be an Internet Plumber

Our OaaS approach allows our customers to… –  Focus on core business objec-ves –  Reduce total cost of ownership –  Scale performance to costs

Unique business model puts focus on staff and customers ahead of profit

Why Peak HosKng – Everything but your code®