The document discusses current trends in cloud computing including the shift to cloud-first strategies, the evolution of the cloud market, and current adoption levels. It also provides advice on developing an effective cloud strategy including focusing on your core competencies rather than trying to manage all aspects of cloud computing internally and considering a multi-cloud approach to avoid vendor lock-in and leverage the optimal cloud for each workload. The presentation also provides examples of how organizations are leveraging the cloud at scale to drive agility, liberate workloads, and manage unprecedented growth.

1. Cloud Strategy Dos and Don’ts
October 30, 2012
Watch the video of this webinar
Cloud Management

2. 2#
Your Panel Today
Presenting
• William Fellows, VP of Research, 451 Research
• Josh Fraser, SVP of Business Development, RightScale
Q&A
• Greg Goodwin, Account Manager, RightScale
Please use the “Questions” window to ask questions any time!
Cloud Management

3. 3#
Agenda
1. Current Trends in the Cloud Landscape – William Fellows
2. Cloud Strategy Dos and Don’ts – Josh Fraser
3. Interactive Q&A Discussion
Cloud Management

4.  Unique combination of research,
analysis & data
 Published syndicated research on
emerging markets
 Daily qualitative & quantitative insight
 Analyst advisory, support
 Global events
 Go-to-market support
4

5. Early-Adopter Program
 12 years working with early adopters and innovators
 Cloud is a logical endpoint
 Shining a light on the arc of adoption
 250+ enterprises have participated across many verticals

6. A Perfect Storm
Profound economic uncertainty
Do more with less
Consumerization of IT
New models around IT-as-a-Service

7. What is happening?
 Faster, more flexibly, more devices
 Virtual first  cloud first?
 Proxy for IT transformation
 The new normal
 CIO: Chief Innovation Officer

8. Cloud Computing Evolution
Internet of Things
Vertically Horizontally
Proliferation
integrated federated –
of monolithic
and cloud brokering,
clouds
ecosystems marketplaces

9. Cloud Market Evolution

10. So Where’s it Raining?
Growth trends, market forecast

11. Cloud Market Overview – Revenue ($bn)
$35.0
$29.3 CAGR
$30.0
44%
$24.5
$25.0
$20.1
$20.0
$15.9
$15.0 $12.4 $12.8 CAGR
$9.4 $9.7 44%
$10.0 $7.1
$4.8
$5.0 $1.7
$3.0
$0.0
2010 2011 2012 2013 2014 2015
Cloud Computing Cloud Computing + Enterprise Apps SaaS

12. Estimated 2012 Cloud Revenue Breakdown by
Subsector – Total $4.8bn (260+ vendors)
Segment Vendor Count
IaaS 129
Compute & Storage-as-a-Service 123
Stand-Alone Cloud Storage 9
PaaS 73
PaaS from SaaS 12
28% Stand-Alone PaaS 33
51% Application Lifecycle 31
Management as a Service
21% Pre-Producion/Testing 18
Integration as a Service 13
SaaS-I 87
Online Backup 20
Cloud Achiving 10
IT Management as a Service 64
Systems & Network 44
Monitoring & Management
Resource Utilization, Capacity 16
IaaS PaaS SaaS - Infrastructure Planning & Billing
IT Service Management 10
Source: 451 Research Market Monitor (Data Cut 8/20/12)

13. IaaS Market Overview ($m)
 Amazon’s market to lose
 2011-2015 CAGR: 49%
$6,826
$5,169
$3,755
Amazon
$2,444
Rackspace
$1,397
Verizon Business $681
CSC
SoftLayer Technologies
2010 2011 2012 2013 2014 2015
Others
Source: 451 Research Market Monitor (Data Cut 8/20/12)

14. Cloud As-a-Service 2012 Revenue by Vertical: 260+ vendors
Technology & Telecom
Financial
17%
29%
7% Government & Education
6% Healthcare
9% 16% Manufacturing & Automotive
16%
Retail & Consumer
Other (Media, Transportation Food &
Beverage, Oil and Gas, Real Estate)
Source: 451 Research Market Monitor (Data Cut 8/20/12)

15. Where We Are with Cloud Adoption

16. Corporate cloud computing: current cloud usage
Corporate Market: Current Public Cloud Computing Use
Percentage of Respondents Whose Companies Currently Use Application that
Run on Cloud Computing Services
35% 32%
29%
30%
25% 22% 22%
17% 19%
20% 17%
14%
15%
11%
10%
5%
0%
Jul Oct Jan Apr Jul Oct Jan Apr Jul
2010 2010 2011 2011 2011 2011 2012 2012 2012

17. Current State of Application Deployment
For each of the following, what percentage is deployed on the different service delivery platforms?
ERP 64% 26% 8%2%
Financial Management Software 61% 29% 8%2%
90% of Workloads Structured Data Storage and Retrieval 57% 38% 5%
Remain In-House…
Batch Workload Execution 55% 36% 9%
Online Transaction Processing (OLTP) 54% 39% 7%
1%
Unstructured Data and Storage Retrieval 52% 44% 5%
Productivity/Collaboration 50% 41% 6%2%
IT Systems Management 49% 44% 5% 1%
Human Capital Management 49% 30% 12% 8%
Business Continuity and/or Disaster Recovery 48% 35% 16% 1%
Custom-built Applications 43% 49% 6%
2%
Dedicated Physical CRM 41% 34% 10% 14%
Private Cloud
Application Servers (Non-ERP, Non-email) 39% 53% 5%
3%
ITO/ Hosting
Development and Test 34% 58% 5% 3%
Public Cloud
Dedicated Physical Private Cloud ITO/Hosting Public Cloud

18. Phase in Journey to the Cloud
47% Internal Private Cloud
External Public Cloud
38%
35%
21%
16% 15%
4% 6% 4% 6% 4%
3%
Implementation Operational Assessment of IT Audit Identification No Plans
Strategy Cost/Benefit
Planning
n=68

19. Cloud Computing
Pain Points Moving to the Cloud Industry Profile - 1H ‘12
Internal Private Cloud Pain Points* External Public Cloud Pain Points*
Management 42% Security 69%
Perception and Internal… 19%
Perception and Internal Resistance 12%
Pricing/Budget 18%
Internal Resources/Expertise 6% Network 12%
Complexity 6%
Management 12%
Security 5%
Reliability/Availability 5% Compliance 12%
Lack of Internal Process 5% Lack of Control 10%
Automation 5%
Automated Provisioning 5% Reliability/Availability 8%
Storage 3% Pricing/Budget 7%
Licensing 3%
Hybrid Cloud – Lack of… 3%
Compliance 3%
Network 2% Licensing 2%
Migration/Integration 2%
Interoperability 2%
Maturity 2%
Legacy Applications 2% Internal Resources/Expertise 2%
None 2% Other 12%
Other 16%
As you move to an internal private cloud infrastructure As you move out to the external public cloud, what is or
what are the two greatest pain points? what do you expect to be the two greatest pain points?
Left Chart, n=62; Right Chart, n=59. *Note that due to multiple responses per interview, total may exceed 100%.

20. What does Multi-Cloud look like?

21. On-premise, DIY

22. Co-location

23. Managed Hosting

24. Multi-tenant Public Cloud

25. Private Cloud

26. Multi-Cloud, Hybrid Cloud

27. Where are we with Hybrid Cloud?
ChangeWave – July 2012:
32% report their company currently uses Public cloud
 Software as a Service (SaaS) – 66%
 Infrastructure as a Service (IaaS) – 32%
 Platform as a Service (PaaS) – 32%
23% report their company currently uses Private Cloud
8% report their company currently uses Hybrid Cloud

28. TheInfoPro: Top Cloud-related Projects
What are your organization's top two cloud-related projects in the next 12 months?*
Internal Cloud 42%
Public Cloud Assessment 27%
SaaS 15%
Cloud Email 10%
Public Cloud Implementation 8%
Internal Storage 5%
Internal Management 5%
Management 3%
Internal Cloud Migration 3%
Hybrid Cloud 3%
Cloud Storage 3%
New Data Centers 2%
Migration 2%
Internal Hardware Expansion 2%
Disaster Recovery 2%
Other 15%
n=62. *Note that due to multiple responses per interview, total may exceed 100%.

29. Is your company incorporating a multi-cloud strategy
into your cloud choices and usage?
RightScale Cloud Market Survey, May 2012

30. Plumbing in a Multi and Hybrid Cloud World
Cloudbursting
Best Execution Venue
Cloud services brokering
Cloud brokerage, marketplace
Cloud federation – vertical
markets, PaaS ecosystems
Avoiding lock-in, de-risking –
portability, standards, integration

31. PaaSification
 ISVs get it – packaging, integration, mobility
 Marketplaces, value creation
 Polygot programming: developers
 Continuous development/delivery vs traditional models
 Private PaaS = benefits of PaaS avoiding the business and
technical risks that come with public cloud computing.
 Black Box: Private PaaS allows IT departments to retain control
of security and performance characteristics and provide
developers with an agile environment
 Enterprises look to private PaaS as a lever to standardize
application infrastructure.
 PaaS as the underlying model for apps built for cloud?

32. But
 Hosted PaaS is automated
vendor lock-in
 Too many aaS
 Way down CIO’s ‘to do’ list

33. IT as a Service - what could happen?
 IT departments won’t be needed
 IT costs will diminish
 Less complexity
 Technology will become perpetual services,
not sell and forget
 Dominant players will change
 Incumbents will be forced into acts of
desperation
 The IT vending machine: providing a self-
service utility to your users is entirely possible

34. Cost Center to Service Provider
Enterprise IT Journey:
Cost Center to Service Provider

35. Life sciences: Amazon IaaS, hybrid cloud
Goal: To become an internal cloud hoster
and service provider using public/private
clouds, featuring self service, best
execution venue
Business challenges: Cloud solution:
 Save money. Not build new  Multiple apps, users and groups
datacenters for near-term, raw capacity on EC2
 More predictable cost model  Using VPC tactically for massive
 Time to results, market scale
 Get benefit of public clouds  Testing cloud on-ramps to EC2
internally and others clouds (IT ops)
 Testing private cloud (IT ops)

36. Trader Media: Cloud service delivery template
Goals:
 Project Spitfire to drive service delivery model
 Develop new revenue lines faster
 Reduce datacenter requirement
 Replace with OpenStack, Citrix hybrid
within 3 years
Business challenge: Business benefit:
 Provisioning is slow so use RightScale  Cost management
and Amazon to spin up new sites  Scale up/back and in multiple geos
 Remain agnostic
 DevOps – no versioning
 PaaS? Looking at roll-your own rather
than hosted lock-in  Consolidate management ops
 Got burned in Amazon’s Dublin 2011
outage

37. Cloud Strategy Dos and Don’ts
Josh Fraser – SVP of Business Development, RightScale
Cloud Management

38. 38#
Strategy Decision, not a Purchase Decision
• Do understand the new imperatives
• Don’t limit your thinking to just one cloud – deploy
your app on the resource pool best-fit for its specific
set of requirements
• Do focus on what you do best – avoid cloud DIY
Cloud Management

39. 39#
RightScale: Our background
More Applications
More than launched
At Production Scale
Cloud deployments with
On More Clouds
supported public and private cloud providers, now including Windows Azure
Since IaaS began
Managing cloud deployments globally for
Cloud Management

40. 40#
Our A-Z Roster of Customers
Cloud Management

41. 41#
Shifting Expectations
Drive New IT Imperatives
Increasing • Internal customers expect instant on
• Driving use of public cloud outside of IT No-Wait IT
Agility
Cloud Management

42. 42#
Shifting Expectations
Drive New IT Imperatives
Increasing • Internal customers expect instant on
• Driving use of public cloud outside of IT No-Wait IT
Agility
• Shift to cloud shakes up vendor landscape
Rapidly Evolving • Heterogeneity is the norm Workload
Landscape • Vendor lock-in drives SW prices up Liberation
Cloud Management

43. 43#
Shifting Expectations
Drive New IT Imperatives
Increasing • Internal customers expect instant on
• Driving use of public cloud outside of IT No-Wait IT
Agility
• Shift to cloud shakes up vendor landscape
Rapidly Evolving • Heterogeneity is the norm Workload
Landscape • Vendor lock-in drives SW prices up Liberation
Unprecedented • Explosion in apps, data, users
• Mobile, social and big data increase scale IT at Scale
Scale • IT needs to do more with less
Cloud Management

44. 44#
No-Wait IT Expands Market Opportunities
Market Window
✖
Business
Opportunity
$£¥€
Time to Market
Cloud Management

45. 45#
No-Wait IT at Quest
Requirements:
• Compliance and BAA
• Self Service, API driven
• Hybrid Cloud
Solution:
• Built self-service HashBang UI on
RightScale
• Use multiple clouds to power
Quest apps
Cloud Management

46. 46#
Workload Liberation Preserves Choice
Multi-Cloud filters
A • Geography
A p • Cost
p A pA
A • Performance
p p p
p A
p p • Features
p p • Compliance
p • Security
• Existing vendors
Cloud Management Platform
"Hybrid IT is the
new IT and it is
here to stay.”
Internal External Gartner
Public
Private Private
Cloud Management

47. 47#
Workload Liberation at IHG
Requirements:
• Public and private clouds
• Geographic reach
• Scalable provisioning
Solution:
• Host Chinese customer website
• Rapid elasticity using auto-scaling
• Consistent configurations for
development, test, and production
Cloud Management

48. 48#
IT at Scale Requires Curating Chaos
Data Users Apps
More data collected, More users on more More interconnected
stored and analyzed devices applications
Cloud Management

49. 49#
IT at Scale at Sony Music
Requirements:
• Rapid provisioning
• Unknown demands
• PCI compliance
Solution:
• Reproducible artist sites
• Scalable architectures
• Ecosystem of ISV vendors
Cloud Management

50. 50#
Don’t Fall Into the DIY Trap
• Most clouds are a set of APIs
and/or a simple UI to launch
servers – is that what you need?
• These are basic building blocks, not a management system
• How should you spend your time?
• Managing multiple users with different levels of access
• Configuration management and app lifecycle management
• Track usage and costs across applications and business units
• All the general purpose things you need to do like: Monitoring, Alarms,
Auto-scaling, etc
What do you do about IT or development personnel unilaterally
opening a cloud account and deploying an environment?
Cloud Management

51. 51#
RightScale Cloud Management
Governance Controls Automation Engine
Control access and security, track Monitor, alert, auto-scale, and
usage, and access logs automate operations
MultiCloud Marketplace™ Configuration Framework
Access cloud-ready, customizable Provision servers and execute scripts
ServerTemplates™ with consistency
MultiCloud Platform
Manage public, private, and hybrid
clouds
Cloud Management

52. 52#
Cloud Management Gives the CIO “Leverage”
Empower users to ―serve themselves‖—
Workforce Leverage
Self Service removing IT from the critical path of the
service delivery
Management Automate previously labour intensive tasks, helping
Automation to reduce IT operation costs and deliver faster
Reduces complexity and variability by using
Workload
standard workloads which ensures consistency
Standardization with each application and service deployment
Usage Metering Retains visibility into resource allocation and
Capital Leverage
line of business usage on a real-time level
Centralized Increased server/admin ratio and delivers
Management benefits of scale— even if deployed globally
Smarter Drives reduced capital requirements
Virtualization
Cloud Management

53. 53#
Diverse OS Automation
Support
Governance
Guaranteed
Reliability
Geo- Better Together Multi-Cloud
Redundant
One-click
Worldwide Deployment
Low Cost Templatized
Workload
Cloud Management

54. 54#
Getting Started and Q&A
• Find out more about RightScale and Windows Azure:
RightScale.com/Azure
• Contact RightScale:
(866) 720-0208 sales@RightScale.com
• Webinar archives:
• RightScale.com/webinars
Free SF Bay Area Event – Nov 1
RightScale Roadtrip with Windows Azure:
Map Your Route to a Successful Cloud Strategy
Register Here: RightScale.com/events
Cloud Management