The document is a speech by Alexis Richardson, CEO of Rabbit Technologies Ltd, discussing the growing potential of cloud computing. Some key points made in the speech include: - Cloud computing allows companies to reduce IT costs by shifting to an operating expense model rather than capital expenditures. - The cloud provides flexibility to quickly scale infrastructure up or down as needed to handle spikes in demand. - While concerns over security and control remain, the cloud is becoming more viable as a business solution given the flexibility, cost savings, and ability to scale it provides.

1. Time to Bet on the Cloud?
Alexis Richardson
CEO Rabbit Technologies Ltd
July 9 2009
alexis@rabbitmq.com
1
Thursday, 9 July 2009

2. RabbitMQThank you!
Im in yr serverz,
queueing yr messagez
Photo credit: http://flickr.com/photos/53366513@N00/67046506/
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3. CohesiveFTHybrid solutions allow for cautious migration
20 Cloud
Computing
Startups You
Should Know
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4. Scale is not my problem
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5. Scale is not my problem
Animoto: 50 EC2 slices to 3,500 over 3 days
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6. What CIOs say The future is “cloudy”
58% of CIOs say cloud computing will
cause a radical shift in IT
47% say they're already using it or
actively researching it.
Source: CIO Research cited in “Cloud computing: IT execs see both promise & security issues,
By LAURIANNE MCLAUGHLIN, IDG October 22, 2008
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7. http://www.flickr.com/photos/psd
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8. Joyent Mosso Google
AppEngine
FlexiScale
Slice
Host Engine
Amazon Yard
EC2
http://www.flickr.com/photos/psd
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9. PUBLIC Cloud
confidential 7
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10. Magic?
Cloud computing is IT as a service
Source: The 451 Group
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11. Magic?
Cloud computing is IT as a service
Security
Scalability
Availability
Performance
Cost-effectiveness
Source: The 451 Group
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12. Data (re)liability
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13. Key points The future is “cloudy”
Amazon starts at 10 cents / CPU-hour
- or as little as 3 cents if you block book
EngineYard “Solo” - Rails on EC2 - starts at 18
JPMorgan pay 50 according to 451 Group
Merrill Lynch pay less..
IBM - I’ve heard range of 13-25 cents
But it’s about choice - not just price.
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14. Cloud
... is a business model
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15. Cloud
... is a business model
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16. Fundamental Theorem of
Cloud: If you can reliably beat
cloud providers on price,
availability, and scalability...
Then you are a cloud provider.
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17. Fundamental Theorem of
Cloud: If you can reliably beat
cloud providers on price,
availability, and scalability...
Then you are a cloud provider.
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18. Thursday, 9 July 2009

19. Cheap is good Market conditions place additional emphasis on cost-savings
In uncertain
economic times,
companies look
for immediate
cost-cutting
measures. Cloud computing can
reduce IT costs without
negatively affecting
ongoing operations.
Capital expenditure via
“hardware refresh” vs.
operating expense.
Thursday, 9 July 2009

20. Other people’s money
Software
computers are a
heck of a lot
cheaper to
assemble, deploy,
manage than metal Someone else spending
their capital is way better
than me spending my
capital
I’ll spend my money on
an IT staff that helps me
leverage these two
axioms
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21. Elasticity =
Freedom
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22. Thursday, 9 July 2009

23. Bet on: CHOICE
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25. Thursday, 9 July 2009

26. How big can this be?
2008: first real “year of cloud”
MS Azure, VMware, GoGrid,
Mosso, and and and ....
(But ISPs still don’t “get it”)
More cloud services than users?
Much much more to come...
confidential 24
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27. Thursday, 9 July 2009

28. Use Case: Ocean Observatories “Global Twitter for Data”
DMAC
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29. Use Case: Ocean Observatories “Global Twitter for Data”
Service.DomainName
Region Virtual IP
Cloud IPs
DMAC
Thursday, 9 July 2009

30. Use Case: Ocean Observatories “Global Twitter for Data”
Service.DomainName
Region Virtual IP
Cloud IPs
DMAC
Thursday, 9 July 2009

31. Use Case: Ocean Observatories “Global Twitter for Data”
Service.DomainName
Region Virtual IP
Cloud IPs
DMAC
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32. It’s complicated
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33. The ‘fool proof’ enterprise The future is “cloudy”
Disruption is bad
It must be failure proof
Plans are not subject to change
You can take opportunity without risk
Business is a source of revenue, IT is a source of risk
And IT must justify itself with predictions
Sales people are there to help you (eat)
Machine huggers...
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34. Business expects
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35. Reasonable concerns The future is “cloudy”
Will my apps, tools, and
people still work in the
Will I get fired for this?
exact same way? Is it
cheap to change?
Can I control my infra?
Is it stable?
Migrating sunk
resources is hard. Can I Does the cloud provider
move my whole data have business model that I
center to the cloud? can rely on? What is their
cost of capital?
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36. Clouds don’t care
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37. Amazon’s CTO on Economic Drivers
• Increasing Uncertainty
• Growing Abundance
• Intensifying Competition
• Growing Power of Customers
• Limited access to capital
From Push to Pull – Emerging Model for Mobilizing Resources – John Hagel & John Seely Brown - 2005
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38. Amazon Use Cases
Media Distribution
Scalable Web Sites
Backup and Recovery
Financial Applications
Large-scale Simulation
Elastic Computing
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43. Thursday, 9 July 2009

44. Founded Jan 2008
20+ Million Users
4 of top 10 games on Facebook
20 billion customer minutes per month
(55% of YouTube)
100% AWS
Thursday, 9 July 2009

45. Founded Jan 2008
20+ Million Users
4 of top 10 games on Facebook
20 billion customer minutes per month
(55% of YouTube)
100% AWS
S3
(games 1-2MB ea)
Thursday, 9 July 2009

46. Founded Jan 2008
20+ Million Users
4 of top 10 games on Facebook
20 billion customer minutes per month
(55% of YouTube)
100% AWS
EC2
Load
Balancing M1.S M1.S M1.S M1.S
Mid-Tier M1.L M1.L
S3
(games 1-2MB ea)
Database M1.XL
EBS EBS EBS EBS
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47. Thursday, 9 July 2009

48. Thursday, 9 July 2009

49. Produce
Encode
Distribute
Archive
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50. Video Citizen Journalism
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51. 4 Weeks!
Video Citizen Journalism
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52. It’s BUSINESS time The future is “cloudy”
MANY Clouds - not just Amazon any more
They are a commercial SERVICE
In production - NO WAIT needed
SIMPLE resource allocation that can be audited
STOP paying if you don’t like your IT provider
Extend your infra in a CONTROLLED way
You are not alone
Thursday, 9 July 2009

53. Would you bet on the cloud
Would you bet on your own infrastructure to scale
Can you save money - or defer expenditure to when it is needed
Will you get fired
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54. Manage expectations
45
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55. Experiment
... is a business model
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56. Offload some systems
Some companies begin with the “coffee ordering” system
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57. Make money
... is a business model
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58. Play the peak game Scale confidently
Leverage the cloud for peak
demand or seasonal spikes.
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59. Play the peak game Scale confidently
Leverage the cloud for peak
demand or seasonal spikes.
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60. Control
... is a business model
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61. Check your assumptions
Analysts cite security and control top cloud-computing concern
“Cloud computing has unique
attributes that require risk
assessment in areas such as
data integrity, recovery, and
privacy, and an evaluation of
legal issues in areas such as
e-discovery, regulatory
compliance, and auditing,” 1
Customers currently lack
control of security in the cloud.
1. Source: Assessing the Risks of Cloud Computing, Gartner, June 2008.
2. Source: IDC Enterprise Panel, August 2008.
3. InformationWeek Analytics Cloud Computing Survey, September, 2008
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62. Confidence
... is a business model
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63. Use guerilla tactics
Hybrid solutions allow for cautious migration
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64. Would you bet on the cloud
What about data
What about latency
What about regulations
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65. Time to make a stand?
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66. All of this has happened before
and it will all happen again
http://en.wikipedia.org/wiki/Eternal_return
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67. Attack of the clones?
CLOUD-OS
LOCK IN
57
(CC) Giara @flickr.com
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68. Defend your data
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69. Open Services?
... is a business model
Open Messaging
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70. Open Cloud = Your Cloud
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71. Would you bet on this?
Number of EC2 Instances
Steady state of ~40 instances
8 8 8 8 8 8 8 8 8
2 00 2 00 2 00 2 00 2 00 2 00 2 00 2 00 2 00
2/ 3/ 4/ 5/ 6/ 7/ 8/ 9/ 0/
4/1 4/1 4/1 4/1 4/1 4/1 4/1 4/1 4/2
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72. Would you bet on this?
Number of EC2 Instances
Launch of Facebook application
Steady state of ~40 instances
8 8 8 8 8 8 8 8 8
2 00 2 00 2 00 2 00 2 00 2 00 2 00 2 00 2 00
2/ 3/ 4/ 5/ 6/ 7/ 8/ 9/ 0/
4/1 4/1 4/1 4/1 4/1 4/1 4/1 4/1 4/2
Thursday, 9 July 2009

73. Would you bet on this?
Amazon EC2 easily scaled up
and down to handle additional
traffic
Peak of 3500 instances
Number of EC2 Instances
Launch of Facebook application
Steady state of ~40 instances
8 8 8 8 8 8 8 8 8
2 00 2 00 2 00 2 00 2 00 2 00 2 00 2 00 2 00
2/ 3/ 4/ 5/ 6/ 7/ 8/ 9/ 0/
4/1 4/1 4/1 4/1 4/1 4/1 4/1 4/1 4/2
Thursday, 9 July 2009

74. Would you bet on this?
Number of EC2 Instances
8 8 8 8 8 8 8 8 8
2 00 2 00 2 00 2 00 2 00 2 00 2 00 2 00 2 00
2/ 3/ 4/ 5/ 6/ 7/ 8/ 9/ 0/
4/1 4/1 4/1 4/1 4/1 4/1 4/1 4/1 4/2
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