Presentation on Cloud Economics and Business Cases for Cloud Models

1. Session ID: CON7393
Session Title: Cloud Economics - A Business Case Approach
Oracle Open World 2012
Ron Batra, Director, Cloud Computing
October 1, 2012
© 2011 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T
marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated
companies. All other marks contained herein are the property of their respective owners.

2. Speaker Bio
Currently leads Product Development and Management for AT&T Hosting,
Cloud and Application Services.
•~18+ years cross industry technology experience in IT, Consulting and
Product Management, in Sales, Delivery and Leadership roles from $500K
to $20MM.
•Oracle experience include Database, Apps and Middleware.
•Industry vertical includes Energy, Utilities, Semi-Conductor, Telecom,
Healthcare, Finance, Automotive, Aerospace, Retail
•Served as an Oracle Deputy CTO – 2008-2009,
•Serving as an Oracle ACE Director – since 2007
•Serve User Groups (IOUG, OAUG) in several capacities.
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3. Contact Information
www.linkedin.com/in/ronbatra
@ronbatra
rb9360@att.com
+15129348659
3

4. Safe Harbor and Disclaimer
Information contained in this presentation represents my views only. It is
intended for information purposes only, and may not be incorporated into
any contract. It is not a commitment to deliver any material, code, or
functionality, and should not be relied upon in making purchasing decisions.
All content is copyrighted and no reproduction in any format allowed, unless
authorized by the author.
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5. AT&T in the Cloud Space
5 © 2011 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T
marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated
companies. All other marks contained herein are the property of their respective owners.

6. AT&T is Focused on Delivering Highly Secure, Reliable
Cloud
Building on a history in multi-tenancy Layered Security
and infrastructure services Protects the Cloud
• Global experience securing 38 data
centers globally, with audited network,
logical and physical controls
• Broad experience managing and securing
multi-tenant environments
• Extensive experience providing
Logical
separation in virtual, shared
infrastructures
• Corporate wide focus on layered Physical
security, including investment in AT&T
Labs to combat cyber threats
Network
6 © 2011 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T
marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated
companies. All other marks contained herein are the property of their respective owners.

7. AT&T Cloud Architect Joins a Portfolio of Application
Solutions
Enterprise
On-Demand AT&T Managed Solutions Client
Self Service Managed
AT&T Network
z
Self-service multi-tenant Managed virtualized multi- Managed virtualized Highly reliable physical
public cloud tenant (virtual private) dedicated (private) infrastructure
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8. AT&T Cloud Architect
Flexible Options for Every Application
Public Private Bare Metal Dedicated
Instance Instance Server Server
Instance/VM
Hypervisor
Server Hardware
Physical Virtualized
• General purpose • Uses similar to • High performance • Constant/ stable
web applications public instances computing workloads
• Development/ test • Plus compliance or • I/O intensive data • Dedicated server
• Variable/ transient performance needs processing virtualization
workloads • Database servers
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9. Full Featured Service Helps You Create Your Cloud
Deployment Public Private Bare Metal Dedicated
Single Tenant Servers   
Virtual via Hypervisor   Optional
Hourly Billing   
Monthly Billing    
Provisioning Time Minutes Minutes Minutes 2-4 Hours
Choose the Add-on Options and Features You Need, Including:
• Software: OS, database, virtualization, control panel, utility
• Network: bandwidth, port speed, IP addresses, load balancing, VPN access, content delivery
• Monitoring: hardware and OS monitoring, system health monitoring, application monitoring
• Security: Intrusion detection systems, firewalls, anti-virus and anti-spyware protection, SSL certificates
• Storage: Backup, replication, snapshots, object-based storage
• Other Options: Email delivery service, digital transcoding
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10. Cloud Computing 101 and NIST
10 © 2012 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property.

11. NIST Definition of Cloud Computing
•Cloud computing is a model for enabling convenient, on-demand
network access to a shared pool of configurable computing resources
(e.g., networks, servers, storage, applications, and services) that can be
rapidly provisioned and released with minimal management effort or
service provider interaction. This cloud model promotes availability and
is composed of five essential characteristics, three service models, and
four deployment models.
•Note 1: Cloud computing is still an evolving paradigm. Its definitions, use cases, underlying
technologies, issues, risks, and benefits will be refined in a spirited debate by the public and private
sectors. These definitions, attributes, and characteristics will evolve and change over time.
•Note 2: The cloud computing industry represents a large ecosystem of many models, vendors, and
market niches. This definition attempts to encompass all of the various cloud approaches
Source: National Institute of Standards and Technology (NIST).
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12. What is “Cloud Computing”?
“…a model for enabling ubiquitous,
convenient, on-demand network access
to a shared pool of configurable
computing resources that can be
rapidly provisioned and released with
minimal management effort or service
provider interaction.”
- National Institutes of Standards
and Technology
12 © 2011 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T
marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated
companies. All other marks contained herein are the property of their respective owners.

13. 5 Essential Characteristics
On Demand Self Service
Broad Network Access
Resource Pooling
Rapid Elasticity
Measured Service
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14. Cloud Computing Service Models
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15. Cloud Computing Deployment Models
VPN
IaaS
Virtual Private Cloud
Public Hybrid
IaaS
IaaS SaaS
PaaS
Private
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16. Cloud Computing Value Propositions
16 © 2011 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T
marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated
companies. All other marks contained herein are the property of their respective owners.

17. Top 3 Cloud Computing Value Propositions
Private Cloud
1. All about control
1. Costs
2. Deployment Strategy (Roadmap)
3. Timeline
4. Many more….
2. Less security concerns – everything “inside” the firewall
3. Does not need a constant and reliable connection to the Internet
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18. Top 3 Cloud Computing Value Propositions
Public Cloud
1. Much more control:
1. No need to build, just buy service(s). Can lead to leaner and
1. Over costs
agile SDLC.
2. Roadmap
3. Timeline
2. Financial model shift – to Op Ex. from Cap Ex.
3. Scale capacity linearly as business grows.
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19. Cloud Computing Value Propositions
Hybrid Cloud
1. Mix and Match Computing Services, as applicable
2. Leverage existing assets and infrastructure.
3. Good balance between control and trying a new paradigm
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20. 20

21. Cloud Computing Use Cases
21 © 2011 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T
marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated
companies. All other marks contained herein are the property of their respective owners.

22. Cloud Computing Use Cases Matrix
Cross-Referenced by Segment, Delivery Model
Use Case Segment Public Private Hybrid
1 Seasonal Capacity Enterprise IaaS, PaaS IaaS, PaaS IaaS, PaaS
2 Financial Model (Opex. Vs. Enterprise IaaS, PaaS, SaaS IaaS, PaaS, IaaS, PaaS,
CapEx) SaaS SaaS
3 Non-Core Competency Enterprise IaaS, PaaS, SaaS IaaS, PaaS, IaaS, PaaS,
SaaS SaaS
4 Outsourcing Enterprise IaaS, PaaS, SaaS IaaS, PaaS, IaaS, PaaS,
SaaS SaaS
5 Short Life Cycle Projects Enterprise IaaS, PaaS IaaS, PaaS IaaS, PaaS
6 Disaster Readiness Enterprise IaaS, PaaS IaaS, PaaS IaaS, PaaS
7 Massively Scalable Computing Enterprise IaaS, PaaS IaaS, PaaS IaaS, PaaS
8 Infrastructure Consolidation Enterprise IaaS, PaaS, SaaS IaaS, PaaS, IaaS, PaaS,
SaaS SaaS
9 Universal Access Consumer Pictures, Videos, N/A N/A
other media
10 Data Center Real Estate/Capacity Enterprise IaaS, PaaS IaaS, PaaS IaaS, PaaS
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Management

23. Cloud Computing Value Drivers
Why go Cloud ?
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24. Cloud Computing Use Cases Value Drivers
Use Case Top 3 Business and Technology Drivers
1 Seasonal Capacity Capacity Gap and Application and Infrastructure Total Cost
Duration Architecture
2 Financial Model Cash Flow Cost of Borrowing Total Cost
3 Non-Core Competency Organizational Direction Existing On-Premise Investment Application
Portfolio
4 Outsourcing Organizational Direction Application Architecture Total Cost
5 Short Life Cycle Projects Capacity Gap and Application Architecture and Total Cost
Duration Integration Cost
6 Disaster Readiness Degree of Business Recovery Time Objectives Total Cost
Continuity Desired (RPO/RTO)
7 Massively Scalable Capacity Gap and Usage Application and Infrastructure Total Cost
Computing Pattern (s) Architecture
8 Infrastructure Existing Footprint Economies of Shared Infrastructure Total Cost
Consolidation
9 Universal Access Number of Devices Application Portability Total Cost
10 Data Center Real Existing Footprint Organizational Direction Relates to #3
Estate/Capacity and #4
Management
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25. Calculating Cloud Total Cost of Ownership
(TCO)
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26. Total Cost of Ownership – Page I
For a Business evaluating a move to Cloud
Cost Item Category On Premise Public Cloud Hybrid Cloud
(Private Cloud)
1 Server Hardware Infrastructure Y Usage Based **
2 Storage Hardware Infrastructure Y Usage Based **
3 Security Hardware Infrastructure Y Usage Based **
4 Security Software Licensing Software Y Usage Based **
5 Security Software Maintenance Software Y Usage Based **
6 Networking Hardware Infrastructure Y Usage Based **
7 Networking Software Infrastructure Y Usage Based **
8 Datacenter Facility Facility Y Usage Based **
9 Utilities and Power Facility Y Usage Based **
10 Data Transfer Infrastructure N Y** **
11 Server Software Licensing Infrastructure Y ** **
12 Server Software Maintenance Software Y ** **
13 Dev Platform Licensing Software Y* Y* **
14 Dev Platform Maintenance Software Y* Y* **
26 *Open Source Products typically do not carry licensing costs
** Depends on Configuration

27. Total Cost of Ownership – Page II
For a Business evaluating a move to Cloud
Cost Item Category On Premise Public Cloud Hybrid Cloud
(Private Cloud)
15 Applications Licensing Software Y Usage Based ** **
16 Applications Maintenance Software Y Usage Based ** **
17 Data Center Staff People Y N **
18 Server Administration People Y N **
19 Network Administration People Y N** **
20 Security Administration People Y N** **
21 Storage Administration People Y N** **
22 Platform (Database, Middleware People Y Y Y
Administration)
23 Application Developer(s) – several People Y Y Y
technologies
24 Project Management People Y Y Y
25 Architecture - Infrastructure People Y N* **
26 Architecture - Technology People Y N* **
27 *Open Source Products typically do not carry licensing costs
** Depends on Configuration

28. Total Cost of Ownership – Page III
For a Business evaluating a move to Cloud
Cost Item Category On Premise Public Cloud Hybrid Cloud
(Private Cloud)
27 Architecture - Application People Y Y **
28 Architecture Integration and People Y Y **
Middleware
29 Architecture – Cloud People Y Y Y
30 Architecture - Enterprise People Y Y **
31 Operations (IT, Business etc.) People Y Y** **
32 Cloud Integration People/Software N N** Y
33 Testing Software (Licensing) Software Y Usage Based** **
34 Testing Software Software Y Usage Based** **
(Maintenance)
35 Testing Life Cycle (Project) People Y Y **
36 Business Process People Y Y Y
Engineers/Analysis
28 *Open Source Products typically do not carry licensing costs
** Depends on Configuration

29. Key Takeaways
1. Cloud Computing Use Cases are driven by a combination of business
and technology considerations
2. Total Cost of Ownership has several inputs
3. A Cloud Computing Business Case needs to include several inputs,
including cost, business direction and key value drivers in helping
decide a complex decision.
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30. Contact Information
www.linkedin.com/in/ronbatra
@ronbatra
rb9360@att.com
+15129348659
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31. SAVE THE DATE!
COLLABORATE 13
April 7-11, 2013
Colorado Convention Center
Denver, Colorado
http://collaborate13.ioug.org

32. Thank You
© 2012 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are trademarks of AT&T
Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are the property of their respective owners. This
document is not an offer, commitment, representation or warranty by AT&T and is subject to change.