Windstream Webinar: The Evolution of the Data Center

The Evolution of the Data CenterJune 7, 2011

© 2011 Windstream Communications, Inc.

Introduction

Zeus Kerravala, Yankee GroupSenior Vice President and Distinguished Research FellowSenior Vice President and Distinguished Research Fellow As head of the Research Council, Mr. Kerravala provides thought leadership and drives the

strategic thinking of the research organization. Much of his expertise involves working with customers to solve their business issues through the deployment of infrastructure technology.

Rob Carter, Windstream Hosted SolutionsDirector of Managed Hosting ServicesRob Carter serves as Director of Managed Hosting Services for Windstream Hosted Solutions. In

this role he is responsible for overseeing Cloud Computing, Engineering, Hosting Services Implementation and Support, as well as Pre-Sales Solutions Engineering.

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The CIO Headache

Speed to market remains a top business priority.Speed to market remains a top business priority.

Distributed enterprises drive a collaborative culture.Distributed enterprises drive a collaborative culture.a collaborative culture.a collaborative culture.

Line-of-business executiveswant better control over ITLine-of-business executiveswant better control over IT

Consumer technology is heavily infl encing orker beha iorConsumer technology is heavily infl encing orker beha ior

want better control over IT.want better control over IT.

influencing worker behavior.influencing worker behavior.

IT needs greater agility to IT needs greater agility to respond to the business faster.respond to the business faster.

Proof Point 1: Workforce Is Increasingly Mobile

More than 50% f  i ti  

40% of employees have high‐speed of organizations 

spend more than 40% of their day away from their desk

have high speed data cards

4% of workers use tablets 

38% of enterprises identify a cellular phone or 

business purpose 

a cellular phone or smart phone 

as their primary device

45 % of corporations are interested are interested 

in mobile applications

Proof Point 2: The Nature of Work Is Transforming

• Collaboration across the enterprise

• Speeds innovations, makes best use of (expensive) human resources

• Collaboration outside the enterprise• Consumer technology is heavily 

influencing the way users work

Channel PartnerEMEA Sales Manager

Global DirectorManager

APAC SalesManager

US Office Manager

Remote Worker

Proof Point 3: Budgets Are Under Fire

How will the economic outlook for 2010 impact your organization’s technology investments? Would you say, you expect…

Base: Asked everybodyBase: Asked everybody

2010 Was a Watershed Year in IT

Workers Demand a WiFi BecomesBetter Experience

WiFi Becomes Preferred Access

Cloud Computing Matured Wireline Speed

JumpDevice Evolution

Takes a Leap

Jump

Data Center Delivery Addresses The Mobile World

Mobile Computing = 10 billion units

Internet Computing Era ~ 1 Billion units

PC Computing Era ~ 100M units

Minicomputer Era ~ 10M units

Mainframe Era ~ 1M units

1960s 1970s 1980s 1990s 2000s 2010s 2020s

Key Trends Impacting the Data Center

Applications availability

Green IT—power, cooling and space

Reduce Cost and Raise Productivity

IT as a service

Server virtualization —higher performance

Network and storage

VM-Level awareness

Workload provisioninghigher performance storage

convergenceawareness provisioning

Colocation Services

• Includes third party management of servers, networking, storage, application delivery controllers and other infrastructure

• Provides infrastructure driven management solutionsg

• Can be used as a part of a long term cloud strategy

• Strong BCDR value proposition

• Similar to cloud, provides buy versus build and shifting Capex to Opex

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Top Drivers of Colo Services

• Scalability and performance of IT infrastructure

Cost red ction• Cost reduction

• Improved BCDR capabilities 3000 Users

4000 Users

• Faster technology upgrades/migration

• Meeting compliance and

1000 Users2000 Users

3000 Users

• Meeting compliance and regulatory requirements

• Time to market

• IT infrastructure consolidation

• Lack of internal IT resources

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Lack of internal IT resources

Colo/Hosting Segmentation

• Shared Web Hosting

• Private Virtual ServersPrivate Virtual Servers

• Dedicated Hosting

• Managed Hosting

• Private Colocation• Private Colocation

• Hybrid Colocation

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Why cloud? Why now?

• Maturity of virtualizationD li fl ibl IT d l• Delivers a flexible IT model

• The most cost effective, scalable way to deliverscalable way to deliver applications and services

• Network speed evolution pmakes cloud a reality

• Various consumption models • It’s the computing model that

best fits our IT strategy and worker profilesworker profiles

Cloud Computing: A Not So New Kid On The Block

What cloud offers:• Resources on demand• Resources on demand• Instant provisioning• Pay-as-you-use• Online access

What is debatable:What is debatable:• It’s outsourcing by another name• Cheap • Secure

A new operational model for enterprise IT

Basic Building Blocks For Cloud Services

SaaS: Software as a ServiceApplication layer delivering productivity, collaboration and business applications on a subscription basisan

ce

PaaS: Platform as a ServiceManagement platform & tools to develop, deploy and

subscription basis

d Co

mpl

ia

P l f ti

PaaS: Platform as a Serviceintegrate cloud-based applications.

urit

yan

d

IaaS: Infrastructure as a Service Pool of computing resources (servers, storage) helping IT staff & developers to scale requirements in real-time, on a per-usage basis.

Secu

Virtualization of physical infrastructure

Using private g por public resources

Bright Future For Clouds In The Minds of Enterprises

• Aligns well with new CIO mandate

• Overall, enterprises are optimistic about cloud computing

• General concepts of elasticity, on-demand, capex-to-opex conversion of IT all resonate with decision-makers at a high level

• Enterprises recognize the value proposition of cloud but need to see someEnterprises recognize the value proposition of cloud but need to see some barriers/concerns addressed

Opinion about cloud computing

Top use cases for cloud computing

SaaS

PaaS

IaaS

Base: Organizations that  have already deployed PaaS or IaaS

Lower support costs lead SaaS drivers

Top drivers are based on reducing cost and complexitycomplexity

Considering larger organizations have been more likely tobeen more likely to adopt SaaS, they have learned from experience the hidden costs of premisescosts of premises-based implementations

Base: Organizations that already deployed or plan to deploy SaaSwithin 24 months

Infrastructure, people costs drive IaaS interest

On-demand storage and virtualizedvirtualized backup/recovery options are of great interest to enterprisesp

Base: Organizations that already deployed or plan to deploy IaaSwithin 24 months

Status check: IT assets shifting to cloud

Last year In 3 YearsToday

89% software apps (n=214) 32%Less than a third of IT assets

73%

86% server platforms (n=97) 23%76%

88% storage (n=113) 43%73%

More than half of IT assets

8% software apps (n=214) 38%11%

5% server platforms (n=97) 48%7%

4% storage (n=113) 39%12%

Data Center Vision: Connected Clouds

Businesses Have Freedom of Choice

Public Cloud

Private CloudColocation

• A Federation of Clouds Based on Open Standards

• Application Fluidity • IT service mobility

Summary

Consumerization, virtualization and mobility are transforming IT 

D t C t d li i th l l bl t ff ti th d f tiData Center delivery is the only scalable, cost effective method of meeting current IT challenges 

Allows for multi OS, device independent solutions 

Vision of the data center includes private cloud, public cloud computing and managed / colocation services 

Cloud computing is a new operating model that can offer on demandCloud computing is a new operating model that can offer on demand compute resources to scale IT and provide faster time to market 

Colocation services can augment a companies cloud computing strategyColocation services can augment a companies cloud computing strategy 

Windstream Hosted Solutions

Rob CarterDirector of Managed Hosting Services

Windstream Hosted Solutions

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Windstream Snapshot

S&P 500 company with full suite of IP-based voice and data services, MPLS networking, data center and managed hosting services and communication

systems to businesses and government agencies

• $4 billion in annual revenues

• 10,000 employees

• $4 billion in annual revenues

• 10,000 employees

• 29 states and District of Columbia

• Data centers: 13

60 000 t il f l l

• 29 states and District of Columbia

• Data centers: 13

60 000 t il f l l• 60,000 route miles of local and long-haul fiber network

• 60,000 route miles of local and long-haul fiber network

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Data Center Footprint

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So What’s Next?

Make the rightMake the rightOne size d tOne size d tMake the right

decision for your business

Make the right decision for

your business

does not fit all

does not fit all

your business now that

makes sense

your business now that

makes sense Colocation to Cloud they allColocation to Cloud they all

in the futurein the futureCloud, they all

have their place depending on

Cloud, they all have their place depending on p g

technical / business

p gtechnical / business

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requirementsrequirements

Windstream Data Center Approach

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Cloud Flexibility

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It’s the Cloud; Who Cares?

Cloud infrastructure still relies on the same power coolingCloud infrastructure still relies on the same power, cooling, and connectivity as physical infrastructure, therefore it’s important to partner with a reliable, experienced provider

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Selecting the Right Cloud

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Uptime SLAs

• Understand what you’re buying:Uptime SLA

Allowable Downtime per month

Allowable Downtime per year

99.5% 3.6 hours 43.8 hours

99.9% 43.7 minutes 8.8 hours

99.95% 21.8 minutes 4.4 hours

99 99% 4 4 minutes 52 6 minutes

• SLAs generally apply to infrastructure and not the

99.99% 4.4 minutes 52.6 minutes

application• Adjust accordingly

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Managed Hosting Offerings

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Managed Services Benefits

Augment existing staff for critical projectsB kl d f d t i bilit t t• Backload of revenue due to inability to get implementations completed

• Freezes on hiring left a small internal talent pool andFreezes on hiring left a small internal talent pool and caused a rush to hire qualified candidates

Leverage a large pool of resources for the price of one FTEFTE• Multi-vendor benefits• 24x7 Coverage• 24x7 Coverage• SLA’s

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Why Data Center?

Hurricane Katrina, 2005: The 2005 hurricane season was the most active Atlantic hurricane season in recorded history with 27 named storms, seven making landfall in the U.S., causing billions of dollars in damages. Hurricane Katrina was the most destructive of these. For nearly 30 days, downtown New Orleans was without full power, and therefore unable to maintain business operations. Many communications providers were unable to serve their communities during this time, but Windstream customers were in service for the duration. Businesses with equipment in Windstream’s New Orleans collocation site were still able to serve their customers, locally and globally.

Nashville Floods of 2010: On May 3, 2010 the Cumberland River reached 51 ½ feet in Nashville, TN, 12 feet above flood stage. Hundreds of businesses were closed due to flooding and power loss. When other service providers’ data centers became flooded, Windstream was able to provide emergency service in its Nashville Data Center to get these businesses back in operation. Longtime Windstream customers were able to ride out the disaster with the peace of mind that their equipment and end users’ experiences were safe.

USA Tornadoes of 2011:875 tornadoes with current damage estimates of roughly $9 billion (Estimate as of May 24) and 499 fatalities.Some Windstream data centers were within miles of tornado destruction, but no customers were impacted due to robust redundant facilities, solid preventative

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maintenance programs, practiced emergency response procedures, and great vendor / supplier relationships

Enterprise-Class Colocation

• Tier II and III, SAS 70 Type II compliant data centers

• System + System uninterruptible power supply (“UPS”) systems, and carrier neutral network connectionsneutral network connections

• Heating, ventilation and air conditioning (“HVAC”) systems to maintain temperature and humidity within strict tolerances

Hardened facilities with automated facility management tools• Hardened facilities with automated facility management tools

• Fire control with early warning smoke detection, clean agent suppression and/or dry-pipe sprinkler system

• 24 x 365 NOC & facilities staff provide for high security externally and internally

• Service Level Agreement (“SLA”) backed guarantee of 100% power availability

• Modular builds - most expansions are less than four years old (10k sf or larger)p y ( g )

• 24-36 in raised floor no open systems or racks

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Summary

Pick a partner that you can trust and will a pa a you a u a dadjust as your needs change

Have solid requirements and know what you are buying

Focus on what you do well and outsource Focus on what you do well and outsource where it makes sense

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Question and AnswerQuestion and Answer SessionSession

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Th k !Thank you!

Presentation and replay will be available at XXXXX

© 2011 Windstream Communications, Inc.