Cloud Computing

An In-Depth Discussion
Introductions
•Nathaniel Gates – President of Cloud49, Anchorage AK
Nathaniel Gates is a lifelong Alaskan who understands the unique challenges businesses face
operating in the Last Frontier. Nathaniel has worked in multiple industries including petroleum,
oilfield services, government contracting and at Alaska Native Corporations. Nathaniel has held
nearly every IT position at some time during his career, from desktop support technician to the
Chief Information Officer of a billion-dollar corporation. This diversity of duties and experience has
uniquely equipped Nathaniel to accurately gauge business requirements and implement
appropriate technological solutions for the benefit of the business.

•Keith Dobson – Vice President of Cloud49, Anchorage, AK

With nearly 25 years of IT industry experience, Keith brings considerable experience and
understanding of the unique challenges facing IT professionals today. Keith began his IT career at
IBM in Anchorage in 1986, and has since worked for such notable companies as Dell Inc., Brocade
Communications, Marconi Communications, Nortel Networks and Bay Networks. At Cloud 49, Keith
is responsible for technology and partner strategy, as well as marketing and business development.
Agenda
•Cloud Computing Overview
•Why Now?
•Getting Started in the Cloud
•The Future of IT in Alaska?
•Questions
What is Cloud Computing?
• Simply put, cloud computing provides a variety of
computing resources , from servers and storage to
enterprise applications such as email, security,
backup/DR, voice, all delivered over the Internet. The
Cloud delivers a hosting environment that is immediate,
flexible, scalable, secure, and available – while saving
corporations money, time and resources.

The Next Frontier - On Demand Solutions For Your Business

Cloud
Web
Client-Server Computing
Personal Computers
Mainframe
Traditional Infrastructure Model
Forecasted
Infrastructure
Demand

Capital

Time
Acceptable Surplus
Forecasted
Infrastructure
Demand
Surplus

Capital

Time
Capital

Actual
Infrastructure
Demand

Time
Unacceptable Surplus

Surplus
Capital

Time
Unacceptable Deficit

Deficit

Capital

Time
Utility Infrastructure Model

Capital

Actual
Infrastructure
Demand

Time
Cloud Flavors?

• SaaS – Software as a Service

• IaaS – Infrastructure as a Service
• PaaS – Platform as a Service
• DaaS – Desktop as a Service
What is Software as a Service? (SaaS)

• SaaS is a software delivery methodology

that provides licensed multi-tenant access
to software and its functions remotely as a
Web-based service.

• Usually billed based on usage

• Usually multi tenant environment
• Highly scalable architecture
SaaS is not ASP 2.0

• The ASP model concentrated on providing an

organization with the ability to move certain
application processing duties to leased third-party
managed servers.
• ASPs were not necessarily concerned about
providing shared services to multiple tenants, but
rather hosting a dedicated application on behalf of
the customer.
• Most ASPs did not possess the required amount of
application and business knowledge regarding the
applications they were running.
SaaS Examples
Infrastructure as a Service (IaaS)

• IaaS is the delivery of technology

infrastructure as an on demand scalable
service

• Usually billed based on usage

• Usually multi tenant virtualized
environment
• Can be coupled with Managed Services for
OS and application support
IaaS is not Managed Hosting

• Traditional managed hosting is a form of

web hosting where a user chooses to lease
entire server(s) housed in an off-site data
center.

• Term based contracts based on projected

resource requirements
IaaS Examples
Platform as a Service (PaaS)

• PaaS provides all of the facilities required to

support the complete life cycle of building
and delivering web applications and services
entirely from the Internet.

• Typically applications must be developed with

a particular platform in mind
• Multi tenant environments
• Highly scalable multi tier architecture
PaaS Examples
Deployment Models
Public cloud
• Public cloud (off-site and remote) describes cloud computing where resources are
dynamically provisioned on an on-demand, self-service basis over the Internet, via web
applications/web services, open API, from a third-party provider who bills on a utility
computing basis.

Private cloud
• A private cloud environment is often the first step for a corporation prior to adopting a
public cloud initiative. Corporations have discovered the benefits of consolidating shared
services on virtualized hardware deployed from a primary datacenter to serve local and
remote users.

Hybrid cloud
• A hybrid cloud environment consists of some portion of computing resources on-site (on
premise) and off-site (public cloud). By integrating public cloud services, users can leverage
cloud solutions for specific functions that are too costly to maintain on-premise such as
virtual server disaster recovery, backups and test/development environments.

Community cloud
• A community cloud is formed when several organizations with similar requirements share
common infrastructure. Costs are spread over fewer users than a public cloud but more
than a single tenant.
 Where is the Cloud Going?
• IDC's updated IT Cloud Services Forecast predicts that public
cloud computing will grow from $17.4 billion worth of IT
spend in 2009 to $44 billion by 2013. 1
• Additionally, Federal CIO Vivek Kundra has vowed to spend
$19 billion of U.S. government's $70 billion IT budget on cloud
computing.
• The five year growth outlook remains strong, with a five-year
annual growth rate of 26% – over six times the rate of
traditional IT offerings.

1
Public Cloud Only
Cloud Distribution Examined
Why Now?
• The acceptance and proliferation of hardware virtualization
and multi-tenant applications
• The Internet has become ubiquitous and an accepted method
of connecting providers with consumers
• ISPs/Telcos are offering robust, redundant and managed
corporate internet service enabling service consolidation
efficiencies.
• The cost verses risk equation has tipped toward shared
solutions
• Computing capabilities are being seen as a ongoing service
rather than an internal capital expense
The Reality
• Enterprises will be dragged kicking and
screaming through the gates of cloud
computing by the economy, consumers,
SMBs and emerging markets.
Build or Rent?
• The total cost of ownership to build and maintain datacenter
infrastructure includes both hard and soft costs.
• An accurate comparison requires knowledge of all variables
over the life of the project or hardware.

Cloud Scenario Assumptions Input Variables Here

# of Servers 30
% of Time Running during Month 95%
Average CPU per Server 2
Average RAM per Server 4
Avg. Storage Per Server (includes
Images) 250
Average Networks Deployed 2
Ougoing Bandwidth Per Server (GB) 125.00
Average Sub-Administrators 2
Average Cloud Files Storage Days 5000
What Soft Costs?
% of
Hardware or Service Item 5yr Total Costs Solution
Server Hardware $ 128,571 9% Total Hard Costs 47%
Server Network Ports $ 33,429 2% Total Soft Costs 53%
Storage Hardware $ 180,000 12% Total Grey Costs unknown
Storage (Back End) Network Switches $ 60,000 4%
Backup SAN Storage $ 100,000 7%
OS Licensing $ 21,429 1%
VM Licensing $ 42,857 3%
Load Balancing $ 70,000 5%
Firewalls $ 60,000 4%
Miscellaneous Costs $ 50,000 3%
Internet Access $ 180,000 12%
Design Consulting $ 5,000 0%
Implementation Consulting $ 40,000 3%
Maintenance/Consulting (5 yrs) $ 50,000 3%
Staff Labor Design $ 5,000 0%
Staff Labor Implementation $ 10,000 1%
Staff Labor Maintenance (5 yrs) $ 68,000 5%
Staff Training $ 25,000 2%
Performance Monitoring / Configuration Mgmt $ 25,000 2%
Cost of Over Utilization / Service Deficits unknown
Cost of Under Utilization / Service Surplus unknown

5 year capital costs $ 1,154,286

Space, Power, Cooling (5 years) $ 337,200 23%
Total TCO over 5 years $ 1,491,486
Enterprise Cloud Solutions
1. Hybrid Cloud
• Scalability of the Public Cloud with the control and security of a
private cloud
2. Test / Development / QA Platform
• Use cloud infrastructure servers as your test and development
platform
3. Disaster Recovery
• Keep images of your servers on cloud infrastructure ready to go
in case of a disaster
4. Cloud File Storage
• Backup or Archive your company data to cloud file storage
5. Load Balancing
• Use cloud infrastructure for overflow management during peak
usage times
Enterprise Cloud Solutions (cont)
6. Overhead Control
• Lower overhead costs and make your bids more competitive
7. Distributed Network Control and Cost Reporting
• Create an individual private networks for each of your
subsidiaries or contracts
8. Messaging Alternatives
• Replace Microsoft Exchange and SharePoint with Google Apps
9. Rapid Deployment
• Turn up servers immediately to fulfill project timelines
10. Functional IT Labor Shift
• Refocus your IT labor expense on revenue producing activities
How to get started
• Evaluating the business case for public, private and hybrid
cloud models
• Developing an enterprise integration and migration strategy
towards cloud provisioning
• Review enterprise applications for SaaS candidates
• Review enterprise requirements for cloud security,
governance and standards
• Determine optimal management of your virtualized
environment and cloud implementation
• Review case studies from early adopters of SaaS, PaaS and
IaaS solutions
Service Deployment Methodology
• It is paramount that IT and business goals are aligned
throughout the process when considering a move to cloud
computing, such as cost savings, security, control, flexibility,
manageability, simplification, ease of use, expandability,
reliability, availability…

Customer Consultation
Business and
Driver Education

Monitoring Assessment
and Tuning and Design

Deployment
and
Migration
Assessment and Design
Proper alignment with business and technical goals

• Cloud Assessment and Design

Working with business users and IT professionals to define high-level
requirements (Business Driver)
Assessing the Pros and Cons for using Cloud solutions
Determining appropriate risks and management strategies for Cloud
solutions
• Cloud Solution Selection
Determining specific business and technical challenges
Choosing the right Cloud alternatives (type and delivery model)
Identifying the management requirements for the different Cloud
alternatives
Defining the solution alternatives and the merits / risks with each
• Security Assessment & Planning
Performing Security Assessment (Regulatory Compliance requirements )
Establishing appropriate security controls and processes
Implementing continuous monitoring and response plan for security
breaches
Deployment and Migration
Assessment and Design leads to a working solutions document
(published best practice solutions guides)

• Solutions planning
• Investment planning & acquisition
• Integration & test
• Deployment, documentation, operations & maintenance
Monitoring and Tuning
Effectively Monitoring Your Cloud Ecosystem
• A cloud monitoring solution should identify problems before
they become critical and adapt as business requirements
change. A nice option may be to deploy a third party
monitoring service to ensure customer satisfaction and allow
an unbiased perspective on application performance. By
implementing a comprehensive monitoring solution IT
organization are equipped with the tools to determine real
business value for cloud solutions and to provide an important
feedback mechanism for tuning their cloud solutions.
Conclusion
• Cloud Computing is outpacing the IT industry
• Real business value can be realized by customers of all sizes
• Cloud solutions are simple to acquire, don’t require long term
contracts and are easier to scale up and down as needed
• Proper planning and migration services are needed to ensure
a successful implementation
• Public and Private Clouds can be deployed together to
leverage the best of both
• Third party monitoring services ensure customer are getting
the most out of their cloud environment
• Security Compliance and Monitoring is achievable with careful
planning and analysis
Preparing for the Future
Sampling of IT skills likely to be in demand in the future
• Functional application development and support
• I.e. Oracle, SAP, SQL, linking hardware to software
• Leveraging data to make strategic business decisions
• I.e. Business Intelligence : Applying sales forecasts to inventory and manufacturing
decisions
• Mobile apps
• Android, iPhone, Windows Mobile
• WiFi engineers
• USF to include broadband communications (LTE replaces GSM/CDMA)
• Optical engineers
• Optical offers the highest bandwidth today (PON, CWDM, DWDM)
• Virtualization Specialists
• Economies of scale require virtualization (server, storage, client…)
• IP Engineers
• Network Security Specialists
• Web developers
• Social Media developers
• Business Intelligence application development and support
The Future of the Cloud in Alaska
• As for the strategic nature of the Cloud for the future of Alaska, location is
everything. We can draw a parallel to UPS and FedEx in their decisions to place a
major hub in Anchorage because of Alaska’s central proximity to the Pacific Rim,
Europe, and the US. National Cloud players such as Google, Microsoft, and
Oracle will see the value of our proximity in relation to latency speeds to serve
those markets. This will create a significant opportunity for Alaska to provide
large scale commercial datacenter services not just to Alaskans but to all of
these markets.

• This scenario is dependent upon the new undersea fiber projects that are in
various stages of implementation. These include linking Tokyo to London with a
spur into Alaska, along with another undersea cable project linking Alaska to the
Pacific Rim. The proximity of Alaska with these markets along with the
advantage of cooler temperatures and access to low cost energy will give Alaska
the framework for a new industry providing long term jobs and revenue for the
State.

• Cloud adoption is occurring very rapidly in the lower 48 now, collectively we

(Alaskans) need to have a strategy to keep these high paid technology sector
jobs in Alaska and over time, create significantly new opportunities for future
Alaskans to play a major role in this shift to utility computing services.
Thank you!

Any Questions?