Cloud Computing The Value Proposition Wayne Clark Architect

Cloud Computing – The Value Proposition Wayne Clark Architect, Intelligent Network Services Cisco Systems, Inc. North Carolina Digital Government Summit September 3, 2009 1 © 2009 Cisco Systems, Inc. All rights reserved. Cisco Confidential

The Evolution of Computing Architectures ASPs Time sharing services Grid Computing Service bureaus 2 © 2009 Cisco Systems, Inc. All rights reserved. Cisco Confidential

IT resources and services that are abstracted from the underlying infrastructure and provided “on-demand” and “at scale” in a multi-tenant environment Today, clouds are associated with an off-premise, hosted model 3 © 2009 Cisco Systems, Inc. All rights reserved. Cisco Confidential

How Big is the Cloud Opportunity? Total Spending on Cloud-Based Services $42 B 27% CAGR $16 B Cloud Services projected to grow at 5 x the rate of current Enterprise IT spending Source: IDC, 10/2008 4 © 2009 Cisco Systems, Inc. All rights reserved. Cisco Confidential

Hype Cycle for Emerging Technologies: 2008 Source: Gartner, 2008 5 © 2009 Cisco Systems, Inc. All rights reserved. Cisco Confidential

Hype Cycle for Emerging Technologies: 2009 Source: Gartner, 2009 6 © 2009 Cisco Systems, Inc. All rights reserved. Cisco Confidential

Architectural Service Layers of Cloud Computing Each layer encapsulates on-demand resources Each layer comes with its own application development model Three service layers: Software as a Service (Saa. S) Platform as a Service (Paa. S) Infrastructure as a Service (Iaa. S) 7 © 2009 Cisco Systems, Inc. All rights reserved. Cisco Confidential

Software as a Service (Saa. S) Cloud provider offers software services that are of potential interest to a wide variety of users Users (optionally) buy subscription to software products Software implemented by cloud provider on their own infrastructure Instances of the software run on cloud provider infrastructure and serve multiple client organizations Some or all of the data resides remotely Examples: Sales. Force. com, Google Mail, Google Docs 8 © 2009 Cisco Systems, Inc. All rights reserved. Cisco Confidential

Platform as a Service (Paa. S) Cloud provider offers a platform upon which developers provide services that are of potential interest to a wide variety of users Users (optionally) buy subscription to software products Software implemented by developers to run on the cloud provider infrastructure Instances of the software run on cloud provider infrastructure and serve multiple client organizations Some or all of the data resides remotely Examples: Google Apps Engine, Amazon Web Services (w/ basic web stack) 9 © 2009 Cisco Systems, Inc. All rights reserved. Cisco Confidential

Infrastructure as a Service (Iaa. S) Cloud provider offers IT infrastructure (compute, storage, network, etc. ) to customers Virtualization is leveraged to dynamically combine resources in order to build and deliver ad hoc systems to the customer Customers deploy their own software environment (i. e. virtual machine images) to run on these systems Resources used by customers can grow and shrink on demand Some or all of the data resides remotely Examples: Amazon Web Services (EC 2 and S 3) 10 © 2009 Cisco Systems, Inc. All rights reserved. Cisco Confidential

Who Are the Major Cloud Players? APPLICATION (Saa. S) PLATFORM AS A SERVICE (Paa. S) INFRASTRUCTURE AS A SERVICE (Iaa. S) IT FOUNDATION 11 © 2009 Cisco Systems, Inc. All rights reserved. Cisco Confidential

Phased Evolution of Cloud Stand-alone Clouds Private Clouds External, Off-Premise Internal, On-Premise Key Challenges: § Security § SLAs § Interoperability 12 Key Challenges: § Federation § Portability § Market © 2009 Cisco Systems, Inc. All rights reserved. Cisco Confidential Inter-Cloud

13 © 2009 Cisco Systems, Inc. All rights reserved. Cisco Confidential