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DON'T AIM FOR THE SKY ON
EVERYTHING
ECONOMICS OF THE CLOUD:
November 13, 2018
CloudEXPO 2018
Emil Sayegh, CEO, Hostway Services, Inc.
@esayegh | @Hostway
© 2018 Hostway
2
Discussion Points
1
ECONOMICS OF THE CLOUD: SHOULD
EVERYTHING MOVE?
2 WORKLOAD SELECTION: WHAT GOES WHERE?
3
ANALYSIS OF HOW END-USERS APPROACH
VARIOUS CLOUD OFFERINGS
5 AGILITY OF THE CLOUD COUPLED WITH TOOLS
6
MANEUVERING THROUGH REGULATORY AND
COMPLIANCE CHALLENGES
7
DECISION-MAKING: SECURITY, COMPLIANCE &
CONSOLIDATION
8 CASE STUDIES
Economics of the Cloud
3
83% of enterprise workloads
will be in the cloud by 2020.1
41% of surveyed organizations anticipate
overspending on public cloud services
over the next 90 days.2
1. LogicMonitor, 2018. 2. 451 Research, 2018.
41%
Overspending
on Public Cloud
Services
83%
Workloads
in the Cloud
by 2020
© 2018 Hostway
Misuse of the Cloud Leads to Waste
4
Organizations estimate
30% of wasted public cloud spend,
but experts estimate an additional 15% is wasted.1
1. RightScale, 2017.
Estimated
Wasted Spend
15%
30%
© 2018 Hostway

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…business leaders may fall
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YOUR TRAFFIC
Firewall
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Server
Server
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START UP
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One DC
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But…IT is Hundreds of Applications…
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Mobile Apps
Blogs
Shopping Carts
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Wikis
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Security
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Crypto
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ERP
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ON PREMISES OFF PREMISES PRIVATE, PUBLIC,
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16
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But Ignore Challenges at
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 More expensive for constant workloads
 Ancillary services may be expensive
 Hidden expenses compromise cost savings
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17
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It’s All About Trade-Offs
Home Owner Rental Home Apartment Hotel
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19
SCALE (LTD)
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SW Apps (custom),
Website (complex),
Database, Big Data
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Blogs, Wikis, Subversion,
Test/Dev, SaaS, Website,
Regulatory Compliance
COMMODITY (SAAS)
Email, Workspaces
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NEW / BURST
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• Use reserved &
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Putting It All Together
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Decreasing Spend While
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25
Decreasing Spend While
Improving Performance
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Making History Via Smart Security
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27
Making History Via Smart Security
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The Experts Favor Hybrid Cloud
28
The landscape of cloud adoption is
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organizations will have deployed a
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Using both public and private
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for digital business.”
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PRIVATE
PUBLIC
ON PREMISES
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© 2018 Hostway
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Developing Your Strategy
TOO EASY TO GET LOST BY:
► Not focusing on where you deliver value
► Overspending based on cloud hype
► Locking into false choices
► Spending valuable time on wrong details
► Delayed thinking about scale & architecture
► Not partnering with experts across technologies
It is critical to find the right home where your
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20
years of technology
experience
10
state-of-the-art data
centers across the globe
Proven global leader in managed Hybrid IT
infrastructure for compliant, mission-critical
applications, serving thousands of top brands
with solutions that:
• Decrease IT Spend
• Mitigate Risk
• Increase Business Agility
Brands Worldwide Trust Hostway
for Compliant, Mission-Critical Hosting
Recognized by Gartner for Managed Hybrid Cloud Hosting
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Questions?
36
© 2018 Hostway
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Avancerad dataanalys och ”big data” har under de senaste åren klättrat på trendlistorna och är nu ett av de mest prioriterade områdena i utvecklingen av nya tjänster och produkter för ledarföretag i det digitala landskapet. Informationen som byggs upp i systemen när kundmötena digitaliseras har visat sig vara guld värt. Här finns allt vi behöver veta för att göra våra affärer mer effektiva. Sedan sommaren 2013 har Connecta tillsammans med Google ett etablerat samarbete för att hjälpa våra kunder med övergången till moln-tjänster för bland annat avancerad dataanalys. För att göra oss själva redo att hjälpa våra kunder har vi under ett antal år utvecklat såväl kunskaper som skaffat oss erfarenheter kring Googles olika moln-produkter, som exempelvis ”Big Query”. Big Query är ett molnbaserat analysverktyg och en del av Google Cloud Platform. Big Query gör det möjligt att ställa snabba frågor mot enorma dataset på bara någon sekund. Big Query och Google Cloud Platform erbjuder färdiga lösningar för att sätta upp och underhålla en infrastruktur som med enkla medel gör allt detta möjligt. På Connecta Digital Consultings tredje event för våren introducerade vi våra kunder och partners i koncepten dataanalys och Big Query. Under eventet berördes följande punkter: - Big Data och Business Intelligence (BI) - “The Google Big Data tools” – framgångsfaktorer och hur man kommer igång - Google Cloud Platform och hur man genomför en framgångsrik molnsatsning Vi presenterade case och berättade om viktiga lärdomar vi dragit i samarbetet med Google och våra kunder.

googlecloudbi
CIO Playbook on Cloud Computing
CIO Playbook on Cloud ComputingCIO Playbook on Cloud Computing
CIO Playbook on Cloud Computing

The document provides an overview of cloud computing and outlines considerations for adopting cloud services. It defines cloud computing, discusses the various types of cloud services (IaaS, PaaS, SaaS), and explains how cloud computing provides benefits like reduced costs, flexibility and scalability compared to traditional IT infrastructure. The document also covers important factors for organizations to consider when developing a cloud strategy including security, developing business cases and experimenting with cloud services.

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Economics of the Cloud: Don't Aim for the Sky on Everything

  • 1. DON'T AIM FOR THE SKY ON EVERYTHING ECONOMICS OF THE CLOUD: November 13, 2018 CloudEXPO 2018 Emil Sayegh, CEO, Hostway Services, Inc. @esayegh | @Hostway © 2018 Hostway
  • 2. 2 Discussion Points 1 ECONOMICS OF THE CLOUD: SHOULD EVERYTHING MOVE? 2 WORKLOAD SELECTION: WHAT GOES WHERE? 3 ANALYSIS OF HOW END-USERS APPROACH VARIOUS CLOUD OFFERINGS 5 AGILITY OF THE CLOUD COUPLED WITH TOOLS 6 MANEUVERING THROUGH REGULATORY AND COMPLIANCE CHALLENGES 7 DECISION-MAKING: SECURITY, COMPLIANCE & CONSOLIDATION 8 CASE STUDIES
  • 3. Economics of the Cloud 3 83% of enterprise workloads will be in the cloud by 2020.1 41% of surveyed organizations anticipate overspending on public cloud services over the next 90 days.2 1. LogicMonitor, 2018. 2. 451 Research, 2018. 41% Overspending on Public Cloud Services 83% Workloads in the Cloud by 2020 © 2018 Hostway
  • 4. Misuse of the Cloud Leads to Waste 4 Organizations estimate 30% of wasted public cloud spend, but experts estimate an additional 15% is wasted.1 1. RightScale, 2017. Estimated Wasted Spend 15% 30% © 2018 Hostway
  • 5. A Cautionary Note From the Pundits 5 …business leaders may fall into the trap of believing that public cloud (IaaS) will always be better and less expensive than running their own data centers. Don't assume you will save money unless you have done the hard work of honestly analyzing the situation. Lydia Leong VP & Distinguished Analyst, Gartner David Smith VP & Distinguished Analyst, Gartner © 2018 Hostway
  • 6. What Started It All: The Case For Cloud (Circa 2008) Classic, two-tiered architecture 6 YOUR TRAFFIC Firewall Server Server Server One DC START UP © 2018 Hostway
  • 7. 7 One DC Web Server Web Server Web Server Web Server Firewall Proxy YOUR TRAFFIC Nice, Easy Growth Phase START UP EASY GROWTH © 2018 Hostway
  • 8. The App is Trending! 8 Firewall One DC Web Server Web Server Web Server Web Server DB Server DB Server Proxy YOUR TRAFFIC START UP EASY GROWTH TRENDING © 2018 Hostway
  • 9. 9 Web Server Web Server Web Server Firewall Proxy Multiple DCs Web Server DB Server DB Server DB Server DB Server DB Server DB Server YOUR TRAFFIC Quick! Fix the Database! START UP EASY GROWTH TRENDING CRUNCH © 2018 Hostway
  • 10. Panic! 10 START UP EASY GROWTH TRENDING CRUNCH PANIC!!! DC 1 DC 2 DB Server Firewall YOUR TRAFFIC © 2018 Hostway
  • 11. But…IT is Hundreds of Applications… 11 Mobile Apps Blogs Shopping Carts Forums CMS Wikis Streaming Big Data Security Health Data Crypto CRM ERP Email/Webmail Databases Ticket/Support Photo Galleries Accounting Test Dev Many More… © 2018 Hostway
  • 12. With Hundreds of Requirements 12 PIPEDA © 2018 Hostway
  • 13. Market Trend 13 ON PREMISES OFF PREMISES PRIVATE, PUBLIC, HYBRID CLOUD © 2018 Hostway
  • 14. Cost Optimization is Essential…But Still Hard! Where and how do you start? 14 © 2018 Hostway
  • 15. The choices for hosting this data have become confusing and daunting. Still, Too Many Choices 15 © 2018 Hostway
  • 16. The Public Cloud Has Lots of Strengths  Easy to get started  No systems expertise required  Pay per use  Retain cash  Scalability built-in  Lets customer focus on application  Unique ancillary services available  Technologies are always up to date  Greater agility and speed  Strong ecosystem emerging 16 © 2018 Hostway
  • 17. But Ignore Challenges at Your Own Risk!  More expensive for constant workloads  Ancillary services may be expensive  Hidden expenses compromise cost savings  Migration costs may be high  Cloud pricing discounts may be short-lived  Cost agility and benefits difficult to quantify  Regulatory and compliance limitations  Limited software flexibility  Less maturity and control than dedicated  Security tied to the platform  Must trust provider uptime, performance & scale 17 © 2018 Hostway
  • 18. 18 It’s All About Trade-Offs Home Owner Rental Home Apartment Hotel Own DC, DIY Colocation Managed Hosting Public Cloud
  • 19. It’s All About Trade-Offs Putting the right app in the right place 19 SCALE (LTD) Only Large Scale and Highly Confidential CUSTOM APPS ERP, OSS, Workflow, SW Apps (custom), Website (complex), Database, Big Data PACKAGED APPS Blogs, Wikis, Subversion, Test/Dev, SaaS, Website, Regulatory Compliance COMMODITY (SAAS) Email, Workspaces Chat, IM, CRM, NEW / BURST Test/Dev, AI/ML, Highly Variable IOPS © 2018 Hostway Home Owner (Own DC, DIY) Rental Home (Colocation) Apartment (Managed Hosting) Hotel (Public Cloud)
  • 20. Expertise, Maturity, and Scale Matter 20 Ideal Avoid OK Startup SMB & Departments Hyper Growth Company Large Scale COMPANY TYPE EXPERTISE Cloud  Dedicated  Cloud  Dedicated  Cloud  In-House  Colo  Dedicated  Cloud  In-House  Colo  In-House  Colo  In-House  Colo  Colo  Dedicated  Cloud  Dedicated  Cloud Software Development Sys-Admin Large Infrastructure Expertise + +  Dedicated  Cloud  Dedicated  Cloud  Dedicated  Cloud SCALE © 2018 Hostway
  • 21. Needs Can Change! 21 Cloud Cloud & Dedicated DIY START-UP “More flexibility and save money,” says the CEO! “Find economies of scale,” says the CFO! Cloud & Dedicated Dedicated Cloud & Dedicated ESTABLISHED “More scalability,” says the CRO! Colo/DIY Managed Hosting / Dedicated Cloud & Dedicated DEPARTMENT “Less CAPEX,” says the CFO! “More scalability,” says the CTO! © 2018 Hostway
  • 22. The Five Pillars of Cost Optimization • Track / tag all systems to ensure usage • Set benchmark KPIs and compare usage daily, weekly, monthly • Establish budget enforcement • Adjust solutions regularly • Get help. Don’t have to do this alone! • Automation to dynamically adjust VMs • Use spot compute for additional cost savings • Use multiple cloud and hosting providers • Architect for hybrid cloud and to enable portability 22 • Use reserved & dedicated Infrastructure for predictable, long- term use • Place high IOPS / bandwidth applications on dedicated infrastructure Reserving Capacity • Monitor utilization and size compute and storage accordingly • Based on cost, select type of IAAS, cloud, & region • Optimize Code • Shutdown temporary workloads • Consolidate storage islands Right-Sizing Increase Elasticity Carefully Automate, Measure, Improve • Minimize bandwidth charges by tuning architecture to eliminate outside calls • Investigate moving certain RDS workloads to a dedicated data base • Move media rich workloads to bare metal Optimize Ancillary Services © 2018 Hostway
  • 23. 23 Putting It All Together © 2018 Hostway
  • 24. © 2018 Hostway 24 Decreasing Spend While Improving Performance About Explore.org • Multimedia organization that provides live nature cams, wildlife photos, and educational films The Situation • Very high costs ($160K/month) • Growth limitations • Public cloud only • Multiple countries • Application performance challenges © 2018 Hostway
  • 25. © 2018 Hostway 25 Decreasing Spend While Improving Performance The Solution • Hybrid solution managed globally across three continents • Managed dedicated GPU servers The Results • Decreased IT spend with 69% lower costs • Increased business agility • 20% performance improvement • On-demand scale architecture • Embedded advertisement capabilities © 2018 Hostway
  • 26. © 2018 Hostway 26 Making History Via Smart Security and Compliance Strategies About Samsung • Leading provider of Smart TVs The Situation • One of the largest IoT deployments • Needed a solution that could scale based on unique traffic patterns • Needed a global security and compliance solution to enable PCI accreditation and safely sell content through the Smart TV app Image from Samsung© 2018 Hostway
  • 27. © 2018 Hostway 27 Making History Via Smart Security and Compliance Strategies The Solution • Fully-managed hybrid cloud • Fully-managed security and compliance The Results • Decreased IT spend and improved performance • Enabled PCI accreditation—a first for any Smart TV; announced at CES in January 2018 • 3 billion packets inspected and 600 cases reviewed with zero escalations to Samsung Image from Samsung© 2018 Hostway
  • 28. The Experts Favor Hybrid Cloud 28 The landscape of cloud adoption is one of hybrid clouds and multiclouds. By 2020, 75% of organizations will have deployed a multicloud or hybrid cloud model.* Using both public and private infrastructure,…are the endgame for most organizations today. This approach avoids vendor lock-in and enables enterprises to leverage the best attributes of each platform… *Gartner: Making Lots of Money in the New World of Hybrid Cloud and Multicloud Published: 7 September 2018© 2018 Hostway
  • 29. 29 for digital business.” “Hybrid cloud is the foundation $317 billion will be spent on hybrid cloud in 2022 Source: Gartner, 2018.© 2018 Hostway $209 billion will be spent on hybrid cloud in 2019
  • 30. Meet the Hybrid Multi-Cloud 30 PRIVATE PUBLIC ON PREMISES DEDICATED MANAGED COLOCATION  Decreases Spend  Delivers Choice  Increases Flexibility  Accelerates Deployment  Improves Reusability  Speeds Innovation SPECIALTY PUBLIC HYBRID © 2018 Hostway
  • 31. Why is Hybrid the Answer? 31 © 2018 Hostway
  • 32. The Best of Both Worlds 32 Choice & Scalability Flexibility Right Tool, Right Workload Cost © 2018 Hostway
  • 33. Hybrid Eliminates Public Cloud Concerns OVER PAYING DATA ISOLATION PERFORMANCE CUSTOMIZATION REGULATORY 33 © 2018 Hostway
  • 34. 34 Developing Your Strategy TOO EASY TO GET LOST BY: ► Not focusing on where you deliver value ► Overspending based on cloud hype ► Locking into false choices ► Spending valuable time on wrong details ► Delayed thinking about scale & architecture ► Not partnering with experts across technologies It is critical to find the right home where your applications can grow safely and economically. © 2018 Hostway
  • 35. 20 years of technology experience 10 state-of-the-art data centers across the globe Proven global leader in managed Hybrid IT infrastructure for compliant, mission-critical applications, serving thousands of top brands with solutions that: • Decrease IT Spend • Mitigate Risk • Increase Business Agility Brands Worldwide Trust Hostway for Compliant, Mission-Critical Hosting Recognized by Gartner for Managed Hybrid Cloud Hosting © 2018 Hostway
  • 36. Questions? 36 © 2018 Hostway Come See Us in Booth 220