When, Where and How to Go to the Cloud: Joe Kinsella Founder & CTO, CloudHealth Technologies Opening Remarks. Hosted by MassTLC at Constant Contact 1/26/16

1. Current State of Cloud Computing
Joe Kinsella
CTO & Founder
CloudHealth® Technologies

2. About Me
 Founder & CTO of CloudHealth
Technologies
 Entrepreneur & technical executive
 Cloud computing enthusiast, evangelist
& blogger
 Member of “first Scrum team”
Twitter: @joekinsella
Email: joe@cloudhealthtech.com
Blog: www.hightechinthehub.com
 VPE at SilverBack & Sonian, Director at Dell
 Built large scale cloud public cloud infrastructure
 Passion for solving complex problems
 IT management software geek

3. Agenda
 Review drivers of cloud adoption
 Discuss key trends happening in cloud
– Cloud going mainstream
– Winners & losers
– Enterprise adoption
– Governance
– Complexity
– Security
– Cost
– Vendor lock-in
– Hybrid cloud

4. Why the Cloud Matters

5. Cloud Has Gone Mainstream
2.5%
2006-2010
13.5%
2011-2014
34%
2015-2017
34%
2018-2020
16%
2020 and Beyond
Innovators
Early
Adopters
Early
Majority
Late
Majority
Laggards

6. Public Cloud & SaaS Winning
“Private cloud, as a thing, is
near to or approaching
zero.”
- Adam Jacob, CTO, Chef
"All of them will go to
Amazon or Microsoft in the
end.”
- Ed Anderson, VP Cloud
Services, Gartner
 SaaS & IaaS winning
 Amazon & Microsoft leading
pack
 Private cloud has struggled
– High cost of management
– Inability to keep pace with
innovation
 Change in definition of hybrid
cloud indicator
– 2011: private cloud center of hybrid
strategy
– 2016: public cloud & SaaS center of
hybrid strategy
“By 2018, most software
vendors will have fully
shifted to a SaaS/PaaS code
base.”
- Frank Gens, Senior VP at IDC

7. Enterprise Adoption Is Accelerating
 Early cloud adoption
driven in lines of
business (“going
rogue”)
 Shadow IT produced
great innovation in
mobile, SaaS, cloud &
open source
 But Shadow IT came
with organization risk
 Enterprise IT has shifted its approach to remain relevant to
business partners
 IT now increasingly driver of cloud adoption

8. Complexity Growing
 Multiple products,
services & tools
 Increased complexity of
infrastructure
 Pace of innovation
 Specialized knowledge
 Increased complexity of
management
 New distribution of
responsibilities
 Complexity of managing
TCO / ROI

9. We’re Still Wrestling with Governance
 Cloud consists of multiple
services, products & supporting
tools
 Each product has different SLAs,
security model, pricing,
management console & more
 Cloud management increasingly
shared across organization
 IT often influencer / auditor not
owner
 Businesses want agility without
sacrificing governance
 Organizations increasingly in need new model governance cost,
availability, security, security, availability, usage
 Failure to effectively governance cloud major driver in failed / stalled
adoption

10. Security – Still a Concern
 Cloud providers have made
substantial investments to make
cloud secure
 Rich features can make cloud
more secure than on-premise
 But still much ownership
delegated to customer
 New approach to security
required to support new models
 Risks in lack of security have
never been higher
June 2014 - New Jersey-based
maker of collaboration tools
suffered DoS followed by
request to contact attacker via
email. Upon discovering
breach of AWS accounts, Code
Spaces attempted to lock out
hacker. Hacker discovered
attempt and proceeded to
destroy infrastructure & data.
Company shutdown.
Code Spaces
Wake Up Call

11. Cost is Still a Priority
 Cost common reason for failure
(“cloud dropout”)
 Lack of clearly communicated
TCO/ROI can derail strategy
 Common reasons for cost
overruns
– Lack of standardization, human error,
lack of ongoing optimization, lack of
understanding of optimum
infrastructure
 Select 3rd party product to
manage & report TCO
 Cost management is continuous
in cloud

12. Vendor Lock-In Concerns Increasing
 SaaS services increasingly
divergent
 Evolution from IaaS to PaaS
increasing likelihood of lock-in
 Data gravity decreases ability to
easily move
 Vendor lock in hard to avoid
 Customers increasingly looking for freedom of choices
 Brokerage giving way to heterogeneous future

13. Prepare for a Messy Hybrid Future
ASSETS
COST
USAGE
PERFORMANCE
AVAILABILITY
SECURITY
ASSETS
COST
USAGE
PERFORMANCE
AVAILABILITY
SECURITY
ASSETS
COST
USAGE
PERFORMANCE
AVAILABILITY
SECURITY
Private Clouds
Public Clouds
Private
Datacenters
AGGREGATO
R
PROVISIONING
MANAGEMENT
You
ASSETS
COST
USAGE
PERFORMANCE
AVAILABILITY
SECURITY
SaaS
Application/
Workload
Application/
Workload
Application/
Workload
Application/
Workload

14. Questions?