Presenters: Dave McKenzie Sr. Director, Solutions Architects Dimension Data Cloud Business Unit Charlie Burns Vice President Saugatuck Technology Moderator: David Sawatzke Director, Marketing Programs Dimension Data Cloud Business Unit 18 th Sept 2013 Understand Real Cloud Infrastructure Costs to Make the Best Public Cloud Investment This Webinar will begin at 11:00am PDT September 18 th , 2013
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Presenters:
Dave McKenzieSr. Director, Solutions Architects
Dimension Data Cloud Business Unit
Charlie BurnsVice President
Saugatuck Technology
Moderator:
David SawatzkeDirector, Marketing Programs
Dimension Data Cloud Business Unit
18th Sept 2013
Understand Real Cloud Infrastructure Costs to Make the Best Public Cloud Investment
This Webinar will begin at11:00am PDTSeptember 18th, 2013
If you have a question, please use the Chat Q&A box located above the presentation panel
We will collect questions throughout the webinar and answer as many as we can at the end
If we don’t answer your question, we’ll follow-up with an answer via email
When viewing the webinar full-screen you can toggle to the upper center of the screen to retrieve the Q&A box for questions – you can use it throughout the webinar
$200 FREE Dimension Data Promo Code offered at the end of the Webinar!
Dave McKenzie has 20 years of experience in technology. At Applied Materials, Dave was in charge of IT services and support for a billion dollar product group. At Accelica he helped lead a start up consulting company through the transition to managed services and later through the acquisition to OpSource. At OpSource, Dave has held positions as Director of Operations directly managing client implementations and on-going support teams, and is now the Sr. Director of Solutions Architects in charge of providing guidance to clients to meet their technical requirements.
Charlie Burns has been with Saugatuck Technology since early 2006 and is a Research Vice President focusing on enterprise software, business/IT services, systems management, and IT systems technologies including the “pragmatics” of Cloud Computing. With over 35 years of experience in the Information Technology arena, Charlie is an established expert in IT product and marketing management, and in IT user issues and requirements. After 26 years with IBM, where he held positions in sales, product development and large systems product marketing, Charlie left to become Research Director at Gartner Group in 1993. In 1998 he joined Giga Information Group as Research VP. At both Gartner and Giga, he focused on large systems and the business practices of the major large systems vendors. In 2000, Charlie rejoined Gartner in a relationship management role responsible for two of its largest vendor clients.
Charlie BurnsVice PresidentSaugatuck Technology
David McKenzieSr. Director, Solutions ArchitectsDimension Data Cloud Business Unit
Survey question: For each of the following years, my company’s preference for deploying new business software (on a continuum from traditional on-premise to hybrid-cloud to pure-play cloud) will be:
Through at least 2017, cloud-first spending will drive growth and expansion of hybrid, cloud+on-premises business solutions and Boundary-free EnterpriseTM environments.
Innovation
Marketo went to market with embedded business intelligence from Pentaho in just nine weeks. Salesforce sells multiple clouds, all loosely-coupled with the others.
Insight:
• IaaS, PaaS and SaaS, while not obsolete, offer less market appeal than linked solutions.
• Vertical market solutions combined with PaaS encourage customer and channel innovation.
• Businesses and individuals do their work now through a new array oftime- and location-independent computing capabilities – cloud, mobile, social and data analytics (CMSA) – that make the Boundary-free Enterprise™ possible.
• Though no two Boundary-free Enterprises™ are exactly alike, businesses have begun to reconfigure how computing resources are deployed to take advantage of anytime/anyplace hybrid computing through an emerging master architecture.
Cloud, Mobile, Social and Data Analytics (CMSA) plus Integration
Using publicly available AWS data for a Windows workload which requires 5 hours of a large standard on-demand instance to process a 10 TB data file containing 10**10 data records (i.e., each data record is 1K in size):
• Transmitting 10 TB from a customer infrastructure to EC2 and then back again to the customer infrastructure will result in a charge of $1200.00 in the US
• Storing the same 10 TB in S3 in “Reduced Redundancy” storage will cost $652.00
• If 10% of the data records are read, and 1% are updated, processing the data will cost $900.00 in data access charges
• Five hours of a large standard on-demand instance running Windows will cost, if we assume relatively low requirements for server resources will cost $1.82
Total costs incurred for the workload are $2753.82, with the costs of the server resources used a mere 0.066% of the total.
Closely related is the effective performance of the infrastructure. Higher performance translates directly to lower costs for resources consumed.
• When quantifying costs for running a workload in a public cloud IaaS offering, the“On-Demand” configuration is key
• Some standard public cloud offerings include a number of pre-definedserver configurations
• Others such as Dimension Data, provide more configuration flexibility – within limits
• To Illustrate the impact of configuration flexibility – i.e., granularity – we show information from publicly available price estimators provided by Dimension Data, IBM and Rackspace
Public Cloud Provider Public Cloud Server Configuration Granularity
IBM
6 Pre-defined Server Configurations ranging from 2 CPUs,4GB of memory, and 60GB of disk storage, to 16 CPUs, 32GB of memory, and 2108GB of disk storage. Additional disk storage can be selected.
Dimension Data
No Pre-defined Server Configurations. Can select from 1 to16 CPUs, from 1GB to 128GB RAM memory, and 10GB to 2500GB disk storage for each server. Additional cloud disk storage can be selected.
Rackspace
6 Pre-defined Server Configurations for Windows(or 7 for Linux) ranging from 1 CPU, 512MB of memory, and 20GB of disk storage, to 8 CPUs, 30GB of memory, and 1200GB of disk storage.
Saugatuck Technology provides subscription research/advisory and consulting services to senior business and IT executives, technology and software vendors, business/IT services providers, and investors. Our Mission is to help our clients make better business decisions and create new business value through trusted and objective insights into the key market trends and emerging technologies driving real change. Over the last few years, this has included a major focus on Software-as-a-Service (SaaS), Cloud Infrastructure, and Social Business Technologies, among other key trends.
For more information about these or any other Saugatuck Technology service, please reach us through the contact information noted above.
• To learn more about Saugatuck consulting and research offerings, go to www.saugatucktechnology.com or email Chris MacGregor for more information.
• While there register on our site and begin receiving our complimentary Research Alerts and browse our Research Library.
CONTINUOUS RESEARCH SERVICES (CRS)• Subscription access to Saugatuck’s ongoing premium research, providing independent/unbiased
insights and guidance into key market trends, buyer behavior, "white-space" opportunities and disruptive market forces driving changes in business computing.
• A variety of advisory services, including telephone-based inquiry, and “Analyst Days”.
USER STRATEGIC CONSULTING SERVICES• Leadership and Planning Workshops• Strategy and Program Assessments – including for new Cloud Business initiatives• Vendor Selection & Evaluation/RFP Development & PoC Project Management• Cloud Transition/Migration and Management Best Practices
THOUGHT-LEADERSHIP PROGRAMS• Custom research programs targeting key technology and business/IT investment decisions of
CIOs, CFOs and senior business executives.• Delivered as research reports, position papers or executive presentations.
VALUE-ADDED SERVICES• Competitive and market intelligence• Investment advisory services (M&A support, due diligence)• Primary and Secondary market research
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Providing organisations with the flexibility to expand into new markets, over night without capital and skill investment and able to respond to market changes without over investing in capacity
Dimension Data
Cloud Exchange ̶ Benefits:
• Enable clients to deploy compute resources on a global scale
• Performance & latency can be optimised
• Data sovereignty requirements can be satisfied
• On your premise MCPs can participate
• Dimension Data global public cloud architecture for Compute Services
• DC IaaS offerings provided on a multi-tenanted architecture, hosted in Dimension Data or third-party data centres around the globe
• Dimension Data public cloud tiered storage and align three different tiers to the appropriate utilization tiers
• Utilize economy tier for data backup, standard tier actual DB content and high performance tier for DB content needing acceleration for logs, temp area and high I/O databases
• Allows for right adjusting storage and CPU/RAM resources based on server needs on the fly
• Keep migration to a minimum, as no new servers are needed to augment the solution
So
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H
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• Cloud DB servers reaching disk I/O and CPU/RAM capacity
• Not an option to migrate back to physical server
• Application does not allow for branching off the DB to scale horizontally
Situation
• Public cloud Tiered Storage solution
• Accelerate disk I/O
• Gain granular storage, CPU and RAM control balancing performance with cost