Mission Critical Applications and Cloud: Myth or Reality?

1. Mission Critical Applications and Cloud:Myth or Reality? Henry Fastert, Chief Technologist and Managing Partner

2. Agenda • SHI • Cloud Defined • Business Value of Cloud • First Generation Cloud Computing • Adoption Issues for the Enterprise • Security • Connectivity • Resiliency/Service Quality • Next Generation Example • Migration Considerations – Technical and Financial • Summary 2

3. SHI Over the years, SHI has continued to expand its Value Proposition. Now in it’s 22nd year of operation, SHI is now developing and delivering Cloud Solutions for the Enterprise. Global provider of IT products, services and solutions • 21-Year Anniversary in 2010! • 1989 – regional software-only reseller • 1994 – global software/hardware reseller • 2001 – global solution provider • Strong, stable and consistently profitable • Every quarter, every year • $4.2 billion imputed sales in 2010* • 1,700+ employees as of 1/2011 • Broad line of services • Strategic Consulting • Professional Services • Cloud Services for the Enterprise 3

4. Cloud Defined As defined by the US National Institute of Standards and Technology, cloud computing offers a number of evolving service and deployment models that enables business value. Essential Characteristics Broad Network Access On-Demand Self-Service Rapid Elasticity Measured Service Resource Pooling Software as a Service SaaS Platform as a Service PaaS Infrastructure as a Service IaaS Service Models Deployment Models Public & Multi-Tenant Private Hybrid Community For more information please refer to: www.nist.gov 4

5. Business Value To eliminate silos and integrate technologies into shared pools of interoperable resources • Faster Time to Revenue • Flexibly respond to business changes • Lower Costs of acquisition and implementation • Reduced Risk resulting in new levels of simplicity, integration, and automation to accelerate business outcomes: 5

6. Business Value Examples Enterprises are now developing strategies to harvest the business value of cloud computing. • State Government • Laboratory Info Management • Healthcare • Madison Avenue • Retail • Telco Enhanced Shared Services Managed Private Cloud White Labeling Infrastructure as a Service Partnering to deliver Software as a Service Time-boxed Burst Computing Multi-tenant Cloud Community Cloud Custom Private Cloud 6

7. Migration to Cloud Computing API • User Access While many have started to implement virtual resources, the average infrastructure is still only about 40-50% virtualized. There is still much to be done to complete the journey to true cloud computing. 3. Self-service User access with metering, monitoring, and chargeback API • Standardized Service Delivery 2. Standardized service and service level definitions with automated service delivery • Fully Virtualized Resources API Virtual Datacenters Virtual Datacenters Virtual Datacenters • Virtual Data centers – • Virtualized, shared pools of server, storage, and network resources • virtualized datacenter services (firewall etc) • Policy-driven Management Resource Pools 1. vSphere vSphere vSphere 7

8. 1st Generation Cloud Solutions The commercial marketplace has looked at the 1st generation of cloud computing and sees solutions that fit best for the consumer and casual user. • Security • Public Cloud oriented for all who want access • Limited data security • Cannot meet government regulations or company policies • Connectivity • Internet-based • Presents security, availability and performance concerns • Resiliency/Service Quality • Wide fluctuations in availability • Overall availability only about 95% • Not good enough for the business world of 24 X 7 ! 8

9. Adoption Issues: Security Most IT Executives view 1st Generation Cloud as not being secure enough for the needs of the enterprise and that the only plausible alternative is to build their own private cloud. • Perimeter Security • Infrastructure Security • Event Monitoring & Reporting • Security Processes & Procedures • Data Security 9

10. Adoption Issues: Connectivity The 1st Generation of Cloud Connectivity have produced inconsistencies that have caused major concerns for the enterprise. • Security • Latency • Availability Moore’s Law of Internet Latency: “ As long as Internet users do not pay for the absolute amount of data bandwidth which they consume, Internet service quality (latency) will continue to be variable and often poor”. 10

11. Adoption Issues: Resiliency/Service Quality Enterprise applications have “industrial grade” requirements that are part of a broader set of risk management policies. • Availability • Performance • Mean Time to Repair “Amazon Outage Staggers Into Day 2” Computerworld, April 22, 2011 11

12. Enterprise Cloud Solutions Enterprise Cloud Solutions should be based on key design principles such as these: • Secure • Using low latency DWDM connections, VMs could reside on customer’s network fully leveraging their network security • A design that uses the latest in data at rest encryption, intrusion protection, breach monitoring and audit reporting • High Performance • An infrastructure platform powered by leading hardware & software technologies for maximum bandwidth, storage and performance • A management platform enables self-service “on-demand” • Industrial Grade • A highly secure solution designed to optimize capacity, performance and reliability • Solutions capable of handling the requirements of enterprise applications 12

13. Enterprise Cloud Services Next Generation IaaS providers for the enterprise should be able to offer three different types of services. • Self-Service • Self-service Portal • SHI or customer provided templates • Ability to configure VMs (CPU, Memory, Storage & Network Bandwidth) • Wide variety of software applications via Service Catalog • Time-Boxed Burst Computing • Addresses seasonal capacity spikes • A cloud center that provisions VMs using (customer-provided in advance) “gold images” • A solution that eliminates need for large capital expenditures • Disaster Recovery • Innovative approach for customer’s with their own private cloud • A cloud center that provisions VMs using (customer-provided in advance) “gold images” in the event of a disaster 13

14. Single Customer Federated Model Enterprise customers should be able to choose three ways to implement the “hybrid” strategy most want. • . Shared or Multi-Tenant • Multi-tenantor shared solutions run VMs on hardware shared by multiple customers with multiple levels of isolation. The potential cost savings benefit of a shared platform makes this an attractive option for non mission-critical applications. • Private or Dedicated • Feature VMs running in the cloud provider’s center running on hardware dedicated to a specific customer • Managed Private • Enables VMs to be deployed within the customer’s data center while being remotely monitored and managed by the cloud provider 14

15. Infrastructure: Performance, Capacity & Reliability Cloud infrastructure platforms should be designed to optimize Performance, Capacity and Reliability by providing multiple interconnects, maximum bandwidth and redundancy. The design should assure no single points of failure, with unmatched connectivity and security. • No Single Points of Failure • Multiple Enclosures, Switches, Servers and Storage Connections for maximum resiliency • Virtual Fabric Technology for virtualized connections and easy manipulation of bandwidth to meet SLAs • VMware High Availability to “fail over” to 2nd VM • VMware Fault Tolerant provides 2nd “hot VM” for fail over Storage Storage Storage Network Switches SAN Encryption Switches Enclosure & Blade Servers VMware vSphere 15

16. Data Security The infrastructure platform (servers, storage and networking) should be designed for the data security needs of the enterprise. SAN encryption switches using software encryption key management can provide a standard feature for both multi-tenant and private cloud infrastructure residing in a cloud center. 16

17. Powering the Cloud A cloud management platform is an automated, fully managed platform that combines to enable on-demand provisioning of VMs. • A cloud management platform shouldprovide: • Portal access for self-service and centralized management • Rapid deployment of VMs • Automated provisioning of infrastructure • Managed provisioning of application software from service catalog • Comprehensive reporting for capacity, performance, service level, usage and auditing Functional view of aCloud Management Platform 17

18. Security for the Enterprise Cloud providers should have a multi-layered solution to assure a multi-tenant or shared enterprise cloud is secure enough to meet the requirements of enterprise-class applications. The same design should apply to a dedicated (private cloud) platform. 18

19. Connectivity for the Enterprise The first generation of cloud services focused on Internet connectivity. The Next Generation of cloud for the enterprise should be able to offer excellent diversity in connectivity. Customers should be able to connect via MPLS or IPsec VPN.) Most cloud service providers only offer IPSec VPN. However, there is a better way. IPSec VPN IPSec VPN MPLS, Private Line MPLS, Private Line Internet IPSec VPN IPSec VPN Data Center 1 Metro Ethernet over DWDM (Cable Company) Cloud Center Private DWDM (Telco) Data Center 2 19

20. Connectivity for the Enterprise It is possible to design a networking solution that offers complete isolation of customer networks leveraging MPLS and VLAN down to the VM. Once VMs are provisioned they would appear on the customer’s data network. This is a critical capability for enterprise applications. Key Design Features • Virtualized Switch Fabric with automated re-routing • Intelligent management of network profiles • 10GbE end to end, multi-link trunks for resiliency • MPLS and 4094 VLANs down to the vCore • 802.1QinQ Metro Ethernet support • Single and double VLAN mapping/translation support 20

21. Open Packaging & Distribution Cloud providers should use Open Virtualization Format (OVF), a platform independent, efficient, open packaging and distribution format for VMs. OVF facilitates the ease of migration to cloud environments and enables customers to have the mobility of VMs to the virtualization platform of their choice. • Enables Optimized Distribution • Provides A Simple Automated User Experience • Supports Single & Multi VM Configurations • Enables Portable VM Packaging • Affords Vendor & Platform Independence 21

22. Migration Approach Look for cloud services that provide an approach that will result in a balanced roadmap incorporating innovation, tempered with recognition of infrastructure maturity levels, constraints and risk. New Interim State Current State Poor Virtualization Candidates Legacy Assets & Contracts Phased Migration Cloud Services Data Center Data Center Data Center Data Center • Infrastructure as a Service • Platform as a Service • Software as a Service Current Virtual Workloads “Self-Service” “Burst Capacity” “On-Demand” “On-Demand” New Virtual Workloads “Highly Elastic” 22

23. Migration – Financial Considerations TCO Models are available to assist customers with developing their business case for cloud with TCO reductions of 20-40%. Key Financial Drivers: • Current Level of Virtualization • Current Level of Automation • Desire to Reduce Capital Expenditures v Operating Expenditures • Desire to Redeploy Resources Savings Opportunities: • Virtualization Software Licenses & Support • CMP Software Licenses & Support • Servers, Storage and Networking Assets • Data Center Space, Power & Cooling • Certain Resource Costs TCO v ROI: • Custom Private Clouds Can Require Substantial Capital & Operation Expenditures • Comparison of Current and Target State TCO and ROI Analysis is Recommended • Moving to Service Provider Clouds Requires No Capital Expenditure • For These “Buy” Scenarios, Current/Target State TCO Analysis is Recommended 23

24. Summary There is a Next Generation of Cloud for the enterprise capable of supporting mission critical applications. All providers are not equal in their capability, but there are those that are ready to deliver on the needs of the enterprise today! • Security • Connectivity • Resiliency/Service Quality • Migration Considerations • Next Generation Design Example 24