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ry Zimmer ior Director, Global Competitive & Market Intellige achi Data Systems il: [email protected] witter: zimmerhds ne: 1-905-738-7903 l: 1-416-704-0293 Welcome!
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1 Harry Zimmer Senior Director, Global Competitive & Market Intelligence Hitachi Data Systems Email: [email protected]@hds.com Twitter:

Dec 16, 2015

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Page 1: 1 Harry Zimmer Senior Director, Global Competitive & Market Intelligence Hitachi Data Systems Email: harry.zimmer@hds.comharry.zimmer@hds.com Twitter:

1

Harry ZimmerSenior Director, Global Competitive & Market IntelligenceHitachi Data SystemsEmail: [email protected]

Twitter: zimmerhdsPhone: 1-905-738-7903Cell: 1-416-704-0293

Welcome!

Page 2: 1 Harry Zimmer Senior Director, Global Competitive & Market Intelligence Hitachi Data Systems Email: harry.zimmer@hds.comharry.zimmer@hds.com Twitter:

2 © Hitachi Data Systems Corporation 2012. All Rights Reserved.2

HYPE VS REALITY: CLOUD STORAGE HARRY ZIMMERNOVEMBER 20, 2012

Page 3: 1 Harry Zimmer Senior Director, Global Competitive & Market Intelligence Hitachi Data Systems Email: harry.zimmer@hds.comharry.zimmer@hds.com Twitter:

3

TECHNOLOGY HYPE CYCLE

Page 4: 1 Harry Zimmer Senior Director, Global Competitive & Market Intelligence Hitachi Data Systems Email: harry.zimmer@hds.comharry.zimmer@hds.com Twitter:

4

TECHNOLOGY HYPE CYCLE

CloudStorage

Page 5: 1 Harry Zimmer Senior Director, Global Competitive & Market Intelligence Hitachi Data Systems Email: harry.zimmer@hds.comharry.zimmer@hds.com Twitter:

5

IDC STORAGE CLOUD FORECAST DECEMBER 2011

BP

aaS

AP

aaS

Archive

Backup

SaaS

STaaS

STaaS (Storage as a Service) is only a subcomponent in the total number shown in the above IDC chart.

Consum

er

Next update of this forecast from IDC Is planned for April 2013.

Page 6: 1 Harry Zimmer Senior Director, Global Competitive & Market Intelligence Hitachi Data Systems Email: harry.zimmer@hds.comharry.zimmer@hds.com Twitter:

6

GARTNER CLOUD STORAGE OBSERVATIONSEPTEMBER 2012

“Well-managed, in-house storage solutions nearlyalways have better availability, performance,throughput and security, compared with public cloudstorage solutions, so IT managers must perform arisk/benefit analysis before moving application data to the cloud.”

Gartner – September 2012

Page 7: 1 Harry Zimmer Senior Director, Global Competitive & Market Intelligence Hitachi Data Systems Email: harry.zimmer@hds.comharry.zimmer@hds.com Twitter:

7

SHOULD YOU USE PUBLIC CLOUD STORAGE?

Page 8: 1 Harry Zimmer Senior Director, Global Competitive & Market Intelligence Hitachi Data Systems Email: harry.zimmer@hds.comharry.zimmer@hds.com Twitter:

8

CLOUD STORAGE: REASONS WHY ‘YES’

Save Money‒ Don’t have to buy / manage storage infrastructure.‒ Don’t have to have extra capacity as service provider ‘eats’ this

cost.

Move from Capex to Opex Spending Model‒ For some companies move from Capex to Opex may be very

appealing‒ Cost to grow storage farm may be cheaper

Storage Functions Move to Cloud Storage Provider ‒ Allows you to either redeploy or eliminate staff.

Rapid Deployment‒ Equipment is waiting fast time to value (deployment)‒ Innovate / incubate

Page 9: 1 Harry Zimmer Senior Director, Global Competitive & Market Intelligence Hitachi Data Systems Email: harry.zimmer@hds.comharry.zimmer@hds.com Twitter:

9

WHY NO? SOME CONSIDERATIONS

PUBLIC (AND HYBRID) HAVE AT LEAST 6 KEY ISSUES TO CONSIDER:

2. Business Model: Not a win/win for customers and service providers. Not sustainable long term. Expect Cloud provider failures.

1. Data Privacy: Legislation may limit where you can put specific data in the public storage cloud.

3. Workload/Architecture? What can you put into the cloud? File Archive = Yes, Backup = Maybe, Database = ?, OLTP = No

4. Cost versus Financial Benefit? If goal to save money, be careful – study various cloud pricing models.

5. Risk / Protection? Contractual terms with public or hybrid providers are weak on responsibility & damages.

6. Availability – SLA’s: Can you live with the Public Storage Cloud model?

Page 10: 1 Harry Zimmer Senior Director, Global Competitive & Market Intelligence Hitachi Data Systems Email: harry.zimmer@hds.comharry.zimmer@hds.com Twitter:

10

WHY NO? SOME CONSIDERATIONS

PUBLIC (AND HYBRID) HAVE AT LEAST 6 KEY ISSUES TO CONSIDER:

2. Business Model: Not a win/win for customers and service providers. Not sustainable long term. Expect Cloud provider failures.

1. Data Privacy: Legislation may limit where you can put specific data in the public storage cloud.

3. Workload/Architecture? What can you put into the cloud? File Archive = Yes, Backup = Maybe, Database = ?, OLTP = No

4. Cost versus Financial Benefit? If goal to save money, be careful – study various cloud pricing models.

5. Risk / Protection? Contractual terms with public or hybrid providers are weak on responsibility & damages.

6. Availability – SLA’s: Can you live with the Public Storage Cloud model?

Page 11: 1 Harry Zimmer Senior Director, Global Competitive & Market Intelligence Hitachi Data Systems Email: harry.zimmer@hds.comharry.zimmer@hds.com Twitter:

11

DATA PRIVACY: A PRIMER

Movement of specific kinds of data may be prohibited by law.

Most of the laws currently in force focus on customer or citizen data especially as it relates to Healthcare, Banking, and Tax records.

Overall EEA is a leader in this space having first enacted legislation in 1995.

Within the EEA two countries (Germany and the Netherlands) stand out as having some of the strictest laws.

Before using public cloud storage get legal advice on whether or not any of your data has any restrictions on it on where it can physically / geographically reside.

Page 12: 1 Harry Zimmer Senior Director, Global Competitive & Market Intelligence Hitachi Data Systems Email: harry.zimmer@hds.comharry.zimmer@hds.com Twitter:

12

DATA PRIVACY: EMEA LEGAL CONSIDERATIONS

DIRECTIVE 95/46/EC IS THE REFERENCE TEXT, IN EUROPE, ON THE PROTECTION OF PERSONAL DATA.

“Transfers of personal data from a Member State to a third country with an adequate level of protection are authorised. However, they may not be made to a third country which does not ensure this level of protection, except in the cases of the derogations listed.”

Principle: no transfer of data to countries outside the EU that do not offer an “adequate level of protection”

EU rules are substantially more restrictive than rules from other countries.

http://europa.eu/legislation_summaries/information_society/data_protection/l14012_en.htm

http://www.ico.gov.uk/for_organisations/data_protection/the_guide/principle_8.aspx

http://ec.europa.eu/justice/data-protection/index_en.htm

Page 13: 1 Harry Zimmer Senior Director, Global Competitive & Market Intelligence Hitachi Data Systems Email: harry.zimmer@hds.comharry.zimmer@hds.com Twitter:

13

EUROPEAN UNION APPROVED CLOUD STORAGE COUNTRIES

There are no restrictions on the transfer of personal data to EEA countries. These are currently:

The European Commission has decided that certain countries have an adequate level of protection for personal data. Currently, the following countries are considered as having adequate protection (as of June 2012):

Not on the list? BRIC Countries: Brazil, Russia, India, China

Austria Estonia Iceland Luxembourg Romania

Belgium Finland Ireland Malta Slovakia

Bulgaria France Italy Netherlands Slovenia

Cyprus Germany Latvia Norway Spain

Czech Republic Greece Liechtenstein Poland Sweden

Denmark Hungary Lithuania Portugal

Andorra Australia Faroe Islands Isle of Man Jersey US (air passenger names)

Argentina Canada Guernsey Israel Switzerland US (entities that adhere to EU-US Safe Harbour Principles)

Page 14: 1 Harry Zimmer Senior Director, Global Competitive & Market Intelligence Hitachi Data Systems Email: harry.zimmer@hds.comharry.zimmer@hds.com Twitter:

14

EU + US SAFE HARBOUR AGREEMENT

No restrictions on the transfer of personal data from the EU to the US if the specific US Cloud Storage company has adhered to the “Safe Harbour” principles. ‒ “Safe Harbour” is a set of voluntary rules on privacy and data protection elaborated

and decided by the US Department of Commerce (DoC).

‒ Organizations in the US can notify the DoC that they adhere to these rules.

‒ The EU Commission has assessed that the rules (including accompanying questions and answers) constitute an adequate level of protection.

‒ It is permitted to transfer personal data from EU/EEA to organisations in the US who have adhered to the rules.

‒ US DoC maintains a list of companies and organizations that adhere to the Safe Harbor principles. Here is a link to see the list: http://safeharbor.export.gov/list.aspx

European Union has new legislation coming into force in 2014 that replaces Directive 95/46/EC. This link describes the proposed new law which is to be adopted by all EU members countries: http://www.statewatch.org/news/2011/dec/eu-com-draft-dp-reg-inter-service-consultation.pdf

Page 15: 1 Harry Zimmer Senior Director, Global Competitive & Market Intelligence Hitachi Data Systems Email: harry.zimmer@hds.comharry.zimmer@hds.com Twitter:

15

DATA OWNERSHIP & DATA SECURITY

Once in the public cloud who owns the data?‒ The hoster? The user?‒ It seems the answer is currently not 100% clear.‒ Ensure any contracts signed with a Cloud Storage service

provider has very tight/clear wording around data ownership.

Data Security in the Storage Cloud: Users Need Robust Protection Mechanisms‒ Define data object access permissions through Access

Control Lists‒ Implement encryption and firewalls to block unauthorized

data center access (internal and external)‒ Extend encryption to the transport level‒ Ensure server level security‒ Ensure physical security‒ Have ongoing audits to ensure compliance/effectiveness‒ What happens if the physical disk is shared by multiple

companies? Is there adequate multi-tenancy protection?

Page 16: 1 Harry Zimmer Senior Director, Global Competitive & Market Intelligence Hitachi Data Systems Email: harry.zimmer@hds.comharry.zimmer@hds.com Twitter:

16

WHY NO? SOME CONSIDERATIONS

PUBLIC (AND HYBRID) HAVE AT LEAST 6 KEY ISSUES TO CONSIDER:

2. Business Model: Not a win/win for customers and service providers. Not sustainable long term. Expect Cloud provider failures.

1. Data Privacy: Legislation may limit where you can put specific data in the public storage cloud.

3. Workload/Architecture? What can you put into the cloud? File Archive = Yes, Backup = Maybe, Database = ?, OLTP = No

4. Cost versus Financial Benefit? If goal to save money, be careful – study various cloud pricing models.

5. Risk / Protection? Contractual terms with public or hybrid providers are weak on responsibility & damages.

6. Availability – SLA’s: Can you live with the Public Storage Cloud model?

Page 17: 1 Harry Zimmer Senior Director, Global Competitive & Market Intelligence Hitachi Data Systems Email: harry.zimmer@hds.comharry.zimmer@hds.com Twitter:

17

CLOUD BUSINESS MODEL

CURRENT CLOUD STORAGE BUSINESS MODEL FAVORS CUSTOMERS

Current cloud business model that allows elastic-burstable usage without penalty favors customers. (Fixed term commitments with min/max usage levels are creeping back into ‘cloud’ deals.)

Cloud Storage service provider may or may not be profitable on a customer by customer basis.

Is it good business to have a win/lose scenario? Long term sustainability? Fixed term commitments are creeping back into ‘cloud’ deals now.

Pricing erosion and pricing wars are already happening. Competitive marketplace is setting street price.

Page 18: 1 Harry Zimmer Senior Director, Global Competitive & Market Intelligence Hitachi Data Systems Email: harry.zimmer@hds.comharry.zimmer@hds.com Twitter:

18

Bookable

CLOUD BUSINESS MODEL

Before Cloud EraCostPerformanceCapacity

Time

Baseline Deal

Installed Capacity

Cloud Era

• Time Sharing (1970’s-80’s)• Service Bureau (1980’s-90’s)• Outsourcing (1990’s onward)• Cloud (2010 onward)

CostPerformanceCapacity

Time

Installed Capacity

Not Bookable

Profit Zone

New terminology for Cloud Model:• “Burstable” • “Elastic”

Page 19: 1 Harry Zimmer Senior Director, Global Competitive & Market Intelligence Hitachi Data Systems Email: harry.zimmer@hds.comharry.zimmer@hds.com Twitter:

19

CLOUD BUSINESS MODEL

CLOUD PROVIDERS STRIVE FOR A MANAGEABLE CHURN/ATTRITION RATE

ServiceProvider “A”

ServiceProvider “B”

ServiceProvider “C”#

of c

usto

mer

s =

Use

of

Inst

alle

d In

fras

truc

ture

Page 20: 1 Harry Zimmer Senior Director, Global Competitive & Market Intelligence Hitachi Data Systems Email: harry.zimmer@hds.comharry.zimmer@hds.com Twitter:

20

WHY NO? SOME CONSIDERATIONS

PUBLIC (AND HYBRID) HAVE AT LEAST 6 KEY ISSUES TO CONSIDER:

2. Business Model: Not a win/win for customers and service providers. Not sustainable long term. Expect Cloud provider failures.

1. Data Privacy: Legislation may limit where you can put specific data in the public storage cloud.

3. Workload/Architecture? What can you put into the cloud? File Archive = Yes, Backup = Maybe, Database = ?, OLTP = No

4. Cost versus Financial Benefit? If goal to save money, be careful – study various cloud pricing models.

5. Risk / Protection? Contractual terms with public or hybrid providers are weak on responsibility & damages.

6. Availability – SLA’s: Can you live with the Public Storage Cloud model?

Page 21: 1 Harry Zimmer Senior Director, Global Competitive & Market Intelligence Hitachi Data Systems Email: harry.zimmer@hds.comharry.zimmer@hds.com Twitter:

21

STORAGE ARCHITECTURE

CLOUD STORAGE SHOULD BE VIEWED AS ‘ANOTHER TIER’

“0”FlashSSD

“1”SAS

“2”SATA

Array

DRAM“-1”PCIeSSD

Server

“-½”Flash Array

“-¼”PCIe SSD’s

“3 or 4”“Archive”

Tape

Cloud Storage Gateway

“2 or 3”“Virtualization”

Hot Data Cold Data

Ca

che

Page 22: 1 Harry Zimmer Senior Director, Global Competitive & Market Intelligence Hitachi Data Systems Email: harry.zimmer@hds.comharry.zimmer@hds.com Twitter:

22

STORAGE GATEWAYS

Cloud storage gateway types: ‒ Software‒ Virtual Appliances‒ Physical Appliances

Bridge on-premises and cloud storage environments in hybrid storage models. Use cases:

‒ Providing additional storage capacity, ‒ Enabling backup services, ‒ Retention of long term data,‒ Gateway provides “efficiency” including data reduction

techniques such as data deduplication

Cloud storage gateways can also differ in storage interfaces supported (i.e., block versus file).

Cloud Storage Gateway

Page 23: 1 Harry Zimmer Senior Director, Global Competitive & Market Intelligence Hitachi Data Systems Email: harry.zimmer@hds.comharry.zimmer@hds.com Twitter:

23

451 RESEARCHSTORAGE WAVE 16 STUDY - OCTOBER 2012

Page 24: 1 Harry Zimmer Senior Director, Global Competitive & Market Intelligence Hitachi Data Systems Email: harry.zimmer@hds.comharry.zimmer@hds.com Twitter:

24

STORAGE ARCHITECTURE

Cloud Storage Gateway

DRAM“-1”PCIeSSD

Server

ArchiveBackup

AmazonGoogleMicrosoftNirvanixRackspace

File Data

Block Data RelationalDatabase Amazon

Rackspace

Page 25: 1 Harry Zimmer Senior Director, Global Competitive & Market Intelligence Hitachi Data Systems Email: harry.zimmer@hds.comharry.zimmer@hds.com Twitter:

25

TECH TARGET: CUSTOMER SURVEY 2012:CLOUD STORAGE USES

http://searchcloudstorage.techtarget.com/news/2240169517/Cloud-data-storage-services-in-wide-use-among-companies-of-all-sizes

Page 26: 1 Harry Zimmer Senior Director, Global Competitive & Market Intelligence Hitachi Data Systems Email: harry.zimmer@hds.comharry.zimmer@hds.com Twitter:

26

TECH TARGET: CUSTOMER SURVEY 2012WHAT ARE YOU BACKING UP TO THE CLOUD?

http://searchcloudstorage.techtarget.com/news/2240169517/Cloud-data-storage-services-in-wide-use-among-companies-of-all-sizes

Page 27: 1 Harry Zimmer Senior Director, Global Competitive & Market Intelligence Hitachi Data Systems Email: harry.zimmer@hds.comharry.zimmer@hds.com Twitter:

27

TECH TARGET: CUSTOMER SURVEY 2012%’AGE OF YOUR BIZ APPS USING CLOUD STORAGE

http://searchcloudstorage.techtarget.com/news/2240169517/Cloud-data-storage-services-in-wide-use-among-companies-of-all-sizes

Page 28: 1 Harry Zimmer Senior Director, Global Competitive & Market Intelligence Hitachi Data Systems Email: harry.zimmer@hds.comharry.zimmer@hds.com Twitter:

28

WHY NO? SOME CONSIDERATIONS

PUBLIC (AND HYBRID) HAVE AT LEAST 6 KEY ISSUES TO CONSIDER:

2. Business Model: Not a win/win for customers and service providers. Not sustainable long term. Expect Cloud provider failures.

1. Data Privacy: Legislation may limit where you can put specific data in the public storage cloud.

3. Workload/Architecture? What can you put into the cloud? File Archive = Yes, Backup = Maybe, Database = ?, OLTP = No

4. Cost versus Financial Benefit? If goal to save money, be careful – study various cloud pricing models.

5. Risk / Protection? Contractual terms with public or hybrid providers are weak on responsibility & damages.

6. Availability – SLA’s: Can you live with the Public Storage Cloud model?

Page 30: 1 Harry Zimmer Senior Director, Global Competitive & Market Intelligence Hitachi Data Systems Email: harry.zimmer@hds.comharry.zimmer@hds.com Twitter:

30

ENTERPRISE CLASS CLOUD STORAGE COMPANIES: SORTED INTO 3 BUCKETS

Cloud Storage Software: Virtual Gateway / Tiering / Copy / Bkup Sync/Drop Box-like File Sharing

Cloud Storage Gateway Filer/Appliance: Data Cached / Sent to cloud data hoster

Cloud Storage HostersInfrastructure: Data is physically stored here. Baseline business is archive and backup hosting.

Page 31: 1 Harry Zimmer Senior Director, Global Competitive & Market Intelligence Hitachi Data Systems Email: harry.zimmer@hds.comharry.zimmer@hds.com Twitter:

31

CLOUD STORAGE VENDORS

“30% of Cloud Service providers will goout of business by 2015. This includes

established companies, not just startups.”

IDC, August 2012

What happens to your files when a

storage cloud service dies?

What protections has the cloud storage provider put in place to mitigate against bankruptcy or being shut?

Page 32: 1 Harry Zimmer Senior Director, Global Competitive & Market Intelligence Hitachi Data Systems Email: harry.zimmer@hds.comharry.zimmer@hds.com Twitter:

32

WHAT IS THE COST OF ENTERPRISE CLASS PUBLIC CLOUD STORAGE?

HOW MUCH WILL YOU PAY FOR CLOUD STORAGE?

There is no standard cost model/structure between cloud storage vendors.

Very difficult to do apples to apples cost comparisons.

Remember: All are in the game to make money – so margin is built into their pricing.

Storage Cloud vendors have multiple line items that they will charge you on.

It is not easy to create a comparison financial model.

Page 33: 1 Harry Zimmer Senior Director, Global Competitive & Market Intelligence Hitachi Data Systems Email: harry.zimmer@hds.comharry.zimmer@hds.com Twitter:

33

WHAT IS THE COST OF ENTERPRISE CLASS PUBLIC CLOUD STORAGE: LINE ITEMS

HOW MUCH WILL YOU PAY FOR CLOUD STORAGE?

All cloud vendors charge a $/gigabyte/month fee (some sliding based on volume / some fixed.

Length of contract (longer) you commit to may reduce monthly fee.

Bandwidth used – based on the actual amount of data transferred

You may be charged each month based on the number of times you use the commands: PUT, COPY, POST, LIST and GET

‒ PUT, COPY, POST and LIST are cheaper to do versus GET

If offered, vendor will charge premium for high availability (# of 9’s)

If offered, vendor will charge premium for BLOCK (hot data) usage.

Page 34: 1 Harry Zimmer Senior Director, Global Competitive & Market Intelligence Hitachi Data Systems Email: harry.zimmer@hds.comharry.zimmer@hds.com Twitter:

34

CLOUD STORAGE PRICE EROSIONPRICE FROM CLOUD VS INTERNAL IT

MONTHLY $/GB FEE CONTINUES TO DROP

Assume $ per gigabyte erodes at 25-30% per year‒ Both cloud storage & internal IT departments will benefit.

Cloud Storage providers may or may not match this! ‒ So far (as of February 2012) Amazon S3 has dropped their

pricing up to 13.5%.

Complexity of the Cloud Storage provider pricing models makes ongoing budget / spending impossible‒ User pay model will only look good (or bad) over time.

Page 35: 1 Harry Zimmer Senior Director, Global Competitive & Market Intelligence Hitachi Data Systems Email: harry.zimmer@hds.comharry.zimmer@hds.com Twitter:

35

AMAZON’S GLACIER (CLOUD ARCHIVE) OFFERING

Extremely low-cost ‘archive’ storage service – priced as low as US$0.01/gigabyte/month

Amazon Glacier provides secure and durable storage for data archiving and backup.

In order to keep costs low, Amazon Glacier is optimized for data that is infrequently accessed and for which retrieval times of several hours are suitable.

Pay for only what you use.

Pay for each access.

Page 37: 1 Harry Zimmer Senior Director, Global Competitive & Market Intelligence Hitachi Data Systems Email: harry.zimmer@hds.comharry.zimmer@hds.com Twitter:

37

AMAZON AWS GLACIER VS HDS UCPCONCLUSIONS

If data is not to be accessed frequently, and has low RTO (recovery time objective), then cloud offerings such as Glacier will have a good total cost story

Legal and compliance requirements can turn these kinds of calculations upside-down; make sure your inactive data can be really off-site

Read the fine print; make sure you understand all life-cycle costs

There can be economic surprises over time, like migration costs or maintenance bubbles. Make sure that your time horizon is appropriate.

There will be real performance and availability differences with some of these kinds of services. Make sure the data classification and catalog definitions are commensurate with the service you are purchasing

Low cost, inactive data possibly for long-term storage like compliance

Page 38: 1 Harry Zimmer Senior Director, Global Competitive & Market Intelligence Hitachi Data Systems Email: harry.zimmer@hds.comharry.zimmer@hds.com Twitter:

38

BLOCK DATA IN THE STORAGE CLOUD?RACKSPACE CLOUD BLOCK STORAGE

“CHOICE BETWEEN STANDARD VOLUMES OR SSD VOLUMES FOR HIGHER PERFORMANCE” “SIMPLE PRICING MEANS NEVER HAVING TO PAY FOR I/O”

http://www.rackspace.com/blog/cloud-block-storage/

Page 39: 1 Harry Zimmer Senior Director, Global Competitive & Market Intelligence Hitachi Data Systems Email: harry.zimmer@hds.comharry.zimmer@hds.com Twitter:

39

BLOCK DATA IN THE STORAGE CLOUD?AMAZON ELASTIC BLOCK STORAGE (EBS)

• Volume storage for Standard volumes is charged by the amount you provision in GB per month until you release it. Volume I/O for Standard volumes is charged by the number of requests you make to your volume. Programs like IOSTAT can be used to measure the exact I/O usage of your system at any time. However, applications and operating systems often do different levels of caching, so for Standard volumes, you will likely see a lower number of I/O requests on your bill than is seen by your application unless you sync all of your I/Os to disk.

• As with Standard volumes, volume storage for Provisioned IOPS volumes is charged by the amount you provision in GB per month. With Provisioned IOPS volumes, you are also charged by the amount you provision in IOPS (input/output operations per second) X the percentage of days you provision for the month. For example, if you provision a volume with 1000 IOPS, and keep this volume for 15 days in a 30 day month, then in the Virginia Region, you would be charged $50 for the IOPS that you provision ($0.10 per provisioned IOPS-Month * 1000 IOPS Provisioned * 15 days/30).

• Snapshot storage is based on the amount of space your data consumes in Amazon S3. Because data is compressed before being saved to Amazon S3, and Amazon EBS does not save empty blocks, it is likely that the size of a snapshot will be considerably less than the size of your volume. For the first snapshot of a volume, Amazon EBS will save a full copy of your data to Amazon S3. However for each incremental snapshot, only the part of your Amazon EBS volume that has been changed will be saved to Amazon S3.

• EBS is based on Amazon installed SSD storage

• It is aimed at database users.

Page 40: 1 Harry Zimmer Senior Director, Global Competitive & Market Intelligence Hitachi Data Systems Email: harry.zimmer@hds.comharry.zimmer@hds.com Twitter:

40

WHY NO? SOME CONSIDERATIONS

PUBLIC (AND HYBRID) HAVE AT LEAST 6 KEY ISSUES TO CONSIDER:

2. Business Model: Not a win/win for customers and service providers. Not sustainable long term. Expect Cloud provider failures.

1. Data Privacy: Legislation may limit where you can put specific data in the public storage cloud.

3. Workload/Architecture? What can you put into the cloud? File Archive = Yes, Backup = Maybe, Database = ?, OLTP = No

4. Cost versus Financial Benefit? If goal to save money, be careful – study various cloud pricing models.

5. Risk / Protection? Contractual terms with public or hybrid providers are weak on responsibility & damages.

6. Availability – SLA’s: Can you live with the Public Storage Cloud model?

Page 41: 1 Harry Zimmer Senior Director, Global Competitive & Market Intelligence Hitachi Data Systems Email: harry.zimmer@hds.comharry.zimmer@hds.com Twitter:

41

CONTRACTUAL TERMS: LIABILITY

IS CLOUD STORAGE LEGALLY ENTERPRISE READY? READ THE FINE PRINT

http://aws.amazon.com/agreement/ https://developers.google.com/storage/docs/terms http://www.nirvanix.com/how-to-buy/terms.aspx http://www.storsimple.com/Portals/65157/docs/SS%20End%20User%20License%20Agreement%20Rev.%20A.pdf http://www.rackspace.com/cloud/legal/

11. Limitations of Liability.WE AND OUR AFFILIATES OR LICENSORS WILL NOT BE LIABLE TO YOU FOR ANY DIRECT, INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL OR EXEMPLARY DAMAGES (INCLUDING DAMAGES FOR LOSS OF PROFITS, GOODWILL, USE, OR DATA), EVEN IF A PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. FURTHER, NEITHER WE NOR ANY OF OUR AFFILIATES OR LICENSORS WILL BE RESPONSIBLE FOR ANY COMPENSATION, REIMBURSEMENT, OR DAMAGES ARISING IN CONNECTION WITH: (A) YOUR INABILITY TO USE THE SERVICES, INCLUDING AS A RESULT OF ANY (I) TERMINATION OR SUSPENSION OF THIS AGREEMENT OR YOUR USE OF OR ACCESS TO THE SERVICE OFFERINGS, (II) OUR DISCONTINUATION OF ANY OR ALL OF THE SERVICE OFFERINGS, OR, (III) WITHOUT LIMITING ANY OBLIGATIONS UNDER THE SLAS, ANY UNANTICIPATED OR UNSCHEDULED DOWNTIME OF ALL OR A PORTION OF THE SERVICES FOR ANY REASON, INCLUDING AS A RESULT OF POWER OUTAGES, SYSTEM FAILURES OR OTHER INTERRUPTIONS; (B) THE COST OF PROCUREMENT OF SUBSTITUTE GOODS OR SERVICES; (c) ANY INVESTMENTS, EXPENDITURES, OR COMMITMENTS BY YOU IN CONNECTION WITH THIS AGREEMENT OR YOUR USE OF OR ACCESS TO THE SERVICE OFFERINGS; OR (D) ANY UNAUTHORIZED ACCESS TO, ALTERATION OF, OR THE DELETION, DESTRUCTION, DAMAGE, LOSS OR FAILURE TO STORE ANY OF YOUR CONTENT OR OTHER DATA. IN ANY CASE, OUR AND OUR AFFILIATES’ AND LICENSORS’ AGGREGATE LIABILITY UNDER THIS AGREEMENT WILL BE LIMITED TO THE AMOUNT YOU ACTUALLY PAY US UNDER THIS AGREEMENT FOR THE SERVICE THAT GAVE RISE TO THE CLAIM DURING THE 12 MONTHS PRECEDING THE CLAIM.

Snapshot of Agreement as of: October 30th, 2012

Page 42: 1 Harry Zimmer Senior Director, Global Competitive & Market Intelligence Hitachi Data Systems Email: harry.zimmer@hds.comharry.zimmer@hds.com Twitter:

42

CONTRACTUAL TERMS: LIABILITY

13 Limitation of Liability

13.1 Limitation on Indirect Liability. TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, NEITHER PARTY, NOR GOOGLE’S SUPPLIERS, WILL BE LIABLE UNDER THIS AGREEMENT FOR LOST REVENUES OR INDIRECT, SPECIAL, INCIDENTAL, CONSEQUENTIAL, EXEMPLARY, OR PUNITIVE DAMAGES, EVEN IF THE PARTY KNEW OR SHOULD HAVE KNOWN THAT SUCH DAMAGES WERE POSSIBLE AND EVEN IF DIRECT DAMAGES DO NOT SATISFY A REMEDY.

13.2 Limitation on Amount of Liability. TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, NEITHER PARTY, NOR GOOGLE’S SUPPLIERS, MAY BE HELD LIABLE UNDER THIS AGREEMENT FOR MORE THAN THE AMOUNT PAID BY CUSTOMER TO GOOGLE DURING THE TWELVE MONTHS PRIOR TO THE EVENT GIVING RISE TO LIABILITY.

Snapshot of Agreement as of: November 1st , 2012

ENGAGE A LAWYER BEFORE EVER SIGNING ONE OF THESE AGREEMENTS.

Page 43: 1 Harry Zimmer Senior Director, Global Competitive & Market Intelligence Hitachi Data Systems Email: harry.zimmer@hds.comharry.zimmer@hds.com Twitter:

43

PROTECTION: WHAT CAN YOU COUNT ON CONTRACTUALLY?

What is the Cloud Storage provider on the hook for as it relates to:‒ Data Breach?

‒ Data Loss?

‒ Data Corruption?

‒ Loss of Access to Data?

Re-write the Cloud Storage Vendor Contract to Protect Your Company and Your Data‒ Insert appropriate clauses with

appropriate enterprise class penalties to ensure maximum compliance.

Page 44: 1 Harry Zimmer Senior Director, Global Competitive & Market Intelligence Hitachi Data Systems Email: harry.zimmer@hds.comharry.zimmer@hds.com Twitter:

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WHY NO? SOME CONSIDERATIONS

PUBLIC (AND HYBRID) HAVE AT LEAST 6 KEY ISSUES TO CONSIDER:

2. Business Model: Not a win/win for customers and service providers. Not sustainable long term. Expect Cloud provider failures.

1. Data Privacy: Legislation may limit where you can put specific data in the public storage cloud.

3. Workload/Architecture? What can you put into the cloud? File Archive = Yes, Backup = Maybe, Database = ?, OLTP = No

4. Cost versus Financial Benefit? If goal to save money, be careful – study various cloud pricing models.

5. Risk / Protection? Contractual terms with public or hybrid providers are weak on responsibility & damages.

6. Availability – SLA’s: Can you live with the Public Storage Cloud model?

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SLA’S: STORAGE CLOUD AVAILABILITY

ASSESS WHAT IS ACCEPTABLE TO YOUR ORGANIZATION?

Availability* % Downtime per Year90% ("one nine") 36.5 days99% ("two nines") 3.65 days

99.9% ("three nines") 8.76 hours99.99% ("four nines") 52.56 minutes

99.999% ("five nines") 5.26 minutes99.9999% ("six nines") 31.5 seconds

99.99999% ("seven nines") 3.15 seconds

“Five Nines” = Industry accepted availability for Enterprise Class Storage

From Amazon Web Site FAQ:

Q: How reliable is Amazon S3?Amazon S3 gives any developer access to the same highly scalable, reliable, fast, inexpensive data storage infrastructure that Amazon uses to run its own global network of web sites. The service was designed for 99.99% availability, and carries a service level agreement providing service credits if a customer’s availability falls below 99.9%.

Amazon, Google and NirvanixUse “Three Nines” are their definitionOf quality of service with credits.

* Availability is usually defined as a measure of unscheduled downtime.

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SLA’S: STORAGE CLOUD AVAILABILITY

Customer Must Request Financial Credit:

‒ “In order to receive any of the Financial Credits described above, Customer must notify Google within thirty days from the time Customer becomes eligible to receive a Financial Credit. Failure to comply with this requirement will forfeit Customer’s right to receive a Financial Credit. To notify Google of SLA Financial Credit eligibility, please see the Documentation.”

Maximum Financial Credit:

‒ “The aggregate maximum number of Financial Credits to be issued by Google to Customer for any and all Downtime Periods that occur in a single billing month shall not exceed 50% of the amount due by Customer for the Application for the applicable month. Financial Credits will be made in the form of a monetary credit applied to future use of the Service and will be applied within 60 days after the Financial Credit was requested.”

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BROADCASTINGCLOUD STORAGE CONSIDERATIONS

Broadcasting “Ready” Storage Cloud Architecture‒ Means high-speed, high-capacity network that can withstand the enormous amount of

data being uploaded, edited and retrieved from the cloud.

Broadcasting Workflow Considerations‒ Content is shared across data centers, cities, states or countries‒ Distributed Content Creation‒ Production Collaboration

Network is as Crucial as Storage Cloud Availability‒ News editors and producers are in a time / production deadline situation.‒ They edit (hours) of raw footage into a 30-second spot(s) for the next newscast. ‒ How many nines does your organization need?‒ Network costs may be prohibitive for cloud use given broadcasting file sizes.

Future Huge Growth in Storage Requirements‒ Due to higher-frames-per-second (fps) cameras and video resolution (24fps to 48fps to

perhaps 300fps in the future) ‒ Digital Video Production Resolution Increases from 2K to 4K and perhaps 8K and 16K

in the future. ‒ High-Resolution Digital Video Can quickly generate terabytes/hour of material to be

stored.

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REALITY CHECK / RECOMMENDATIONS

Do your homework: Define your organizational financial goals / objectives for going to Public Cloud Storage.‒ If saving money is THE goal – do a realistic financial

analysis comparison of in-house vs public cloud storage.

‒ Understand all the CAPEX and OPEX costs that have to be factored into a total cost comparison.

If Public Cloud Storage looks favorable then consider all of the other considerations on the Why NO charts. Key consideration should be: can you accept these risks.

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Harry ZimmerSenior Director, Global Competitive & Market IntelligenceHitachi Data SystemsEmail: [email protected]: zimmerhdsPhone: 1-905-738-7903Cell: 1-416-704-0293

Thank You!