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Cloud Computing. Disruptive Innovation & Enabling Technology. Authors: John Keagy (CEO & Co-Founder of GoGrid/ServePath) Michael Sheehan (Technology Evangelist of GoGrid/ServePath) Paul Lancaster (Business Development Manager for GoGrid/ServePath) August 2008.

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cloud computing

Cloud Computing

Disruptive Innovation &Enabling Technology


John Keagy (CEO & Co-Founder of GoGrid/ServePath)

Michael Sheehan (Technology Evangelist of GoGrid/ServePath)

Paul Lancaster (Business Development Manager for GoGrid/ServePath)

August 2008

the cloud 10x improvements
The “Cloud” = 10X Improvements
  • Ease of Use
  • Scalability
  • Risk
  • Reliability
  • Cost
ease of use
Ease of Use
  • Deploy infrastructure with a mouse or API
    • No cabling, screwdrivers, racking, unboxing, buying
    • Middle of the night
    • Do it yourself remotely from anywhere anytime
  • See Ease of Use
  • Control your infrastructure with your app
  • Nothing to purchase and take delivery on
  • Instant
  • Nothing to buy
  • Cancel immediately
  • Change instantly, even operating systems
  • Throw it out
  • Rebuild it instantly after testing


  • Based on enterprise grade hardware
  • Design for failures:
    • Automatically spin up replacements
    • Use multiple clouds
  • “Turn off the lights” = turn off servers you aren’t using
    • Ex: Turn off development and test environments
  • Pay for only what you use
  • No need to buy in advance
  • Zero Capital Outlay
  • No contracts
breaking the dam n
“Breaking the Dam(n!)”
  • Colocation – 1st step to outsourcing
  • Managed Hosting – dedicated servers managed by 3rd party take some pain away
  • Cloud Hosting – Lower cost, easier, lower risk, more reliable
traditional hosting costs continue to grow
Traditional Hosting Costs Continue to Grow
  • High CapEx
  • Low facility asset utilization (55%)
  • High Depreciation (42-50%)
  • Power/Cooling costs > Server Costs
  • Not “Green”
  • 30% hardware obsolescence

- Source:, Kenneth Brill, “Servers: Why Thrifty Isn’t Nifty”


Source:, “Servers: Why Thrifty Isn’t Nifty”

trending away from the pain
Trending Away from the “Pain”

Source: Google Insight for Search

forrester research
Forrester Research

“A pool of abstracted, highly scalable, and managed compute infrastructure capable of hosting end-customer applications and billed by consumption1”

1- “Is Cloud Computing Ready for The Enterprise?” Forrester Research, Inc.

forrester research cont d
Forrester Research (cont’d)
  • Different than SaaS
    • Prescripted & Abstracted Infrastructure
    • Fully Virtualized
    • Dynamic Infrastructure Software
    • Pay by Consumption
    • Free of Long-Term Contracts
    • Application and OS Independent
    • Free of Software or Hardware Installation

“Cloud computing has all the earmarks of being a potential disruptive innovation that all infrastructure and operations professionals should heed.”

other definitions
Other Definitions

“Cloud computing is an emerging approach to shared infrastructure in which large pools of systems are linked together to provide IT services.” – IBM press release on “Blue Cloud”

“…a hosted infrastructure model that delivers abstracted IT resources over the Internet” – Thomas Weisel Partners LLC from “Into the Clouds: Leveraging Data Centers and the Road to Cloud Computing”

“Cloud computing describes a systems architecture. Period. This particular architecture assumes nothing about the physical location, internal composition or ownership of its component parts.” – James Urquhart blog post

defining the segments
Defining the Segments
  • SaaS
    • Software as a Service
    • Storage as a Service
  • PaaS – Platform as a Service
  • IaaS – Infrastructure as a Service
hosting industry ripe for change
Hosting Industry Ripe for Change
  • Technology has evolved
  • People demand more control
  • Instant gratification
  • In-house too costly from CapEx and Human Capital
  • Colocation for those who want to be physically there
  • Managed is not dynamic enough

Cloud Computing -“Enabling Technology” to move from Traditional Hosting to Cloud Hosting

the cloud s snowball effect
The Cloud’s “Snowball Effect”
  • Maturation of Virtualization Technology
  • Virtualization enables Compute Clouds
  • Compute Clouds create demand for Storage Clouds
  • Storage + Compute Clouds create Cloud Infrastructure
  • Cloud Infrastructure enables Cloud Platforms & Applications
  • Multiple Cloud types lead to Cloud Aggregators
  • Niche requirements enable Cloud Extenders
the cloud pyramid
The “Cloud Pyramid”
  • Build upon a foundation
  • Layers equate structure
  • Building blocks: Infrastructure, Platforms, Applications
  • Breadth vs. Niche
the cloud pyramid inversed
The “Cloud Pyramid” Inversed
  • 1000’s of Cloud Applications currently
  • Handful of Cloud Platforms
  • Elite group of Cloud Infrastructure providers

# of Marketplace providers

cloud computing is
Cloud Computing is…

… virtualized compute power and storage delivered via platform-agnostic infrastructures of abstracted hardware and software accessed over the Internet. These shared, on-demand IT resources, are created and disposed of efficiently, are dynamically scalable through a variety of programmatic interfaces and are billed variably based on measurable usage.

cloud applications
Cloud “Applications”
  • SaaS resides here
  • Most common Cloud / Many providers of different services
  • Examples: SalesForce, Gmail, Yahoo! Mail, Quicken Online
  • Advantages: Free, Easy, Consumer Adoption
  • Disadvantages: Limited functionality, no control or access to underlying technology
cloud platforms
Cloud “Platforms”
  • “Containers”
  • “Closed” environments
  • Examples: Google App Engine, Heroku, Mosso, Engine Yard, Joyent or (SalesForce Dev Platform)
  • Advantages: Good for developers, more control than “Application” Clouds, tightly configured
  • Disadvantages: Restricted to what is available, other dependencies
cloud infrastructure
Cloud “Infrastructure”
  • Provide “Compute” and “Storage” clouds
  • Virtualization layers (hardware/software)
  • Examples: Amazon EC2, GoGrid, Amazon S3, Nirvanix, Linode
  • Advantages: Full control of environments and infrastructure
  • Disadvantages: premium price point, limited competition
cloud extenders wild card
Cloud “Extenders” (Wild Card)
  • Provides extension to Cloud Infrastructure and Platforms with basic functionality
  • Examples: Amazon SimpleDB, Amazon SQS, Google BigTable
  • Advantages: Extends functionality of Compute & Storage Clouds to integrate with legacy system or other clouds
  • Disadvantages: Sometimes requires use of specific Platforms or Infrastructure
cloud aggregators wild card
Cloud “Aggregators” (Wild Card)
  • Sits on top of various Cloud Infrastructures for management
  • Examples: RightScale, Appistry
  • Advantages: Provides more options for Cloud environments
  • Disadvantages: Dependent on Cloud Providers
hosting heads to the clouds
Hosting Heads to the Clouds
  • Static  Dynamic = Quick & Easy Scalability
  • Cost Prohibitive  Cost Effective = Cost Efficiencies
  • Predictable  Unpredictable = Innovations
  • Stagnant  Growth = Evolution

Traditional Hosting  Cloud Hosting = FUTURE!

contact information
Contact Information
  • Paul Lancaster
    • Business Development Manager, GoGrid
    • Email:
    • Mobile: 415.948.4182