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John Engates CTO, Rackspace HostingRenée Schmidt Co-founder, Madison Technology

No Servers and No Software:What is Cloud and How to Leverage it for Your Business

2RACKSPACE® HOSTING | WWW.RACKSPACE.COM

No Servers and No Software:Part 1 - What is Cloud Computing

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3,000 employees, or Rackers

100,000+ customers and

growing

Listed NYSE 2008 (RAX)2009 Hosting Revenue

jengates@rackspace.comOffice: (210) 312-4197Twitter: @jengateswww.rackspace.com

Chief Technology OfficerJoined Rackspace in August 2000From San Antonio, TX

About Me

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Rackspace – What We Do

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Founded in 1998Headquartered in

San Antonio, Texas

9 worldwide data centers3,500 employees (“Rackers”)

142,000 customers

70,000 servers

$920 million revenue run rate

Listed NYSE: RAX

Rackspace – Some Facts About US

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The Evolution: 70’s – 80’s Mainframe Era

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90’s – 2000: The Client Server Era

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Cheaper, more accessible, more powerful

The Cloud: Truly a New Era in Computing

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What is Cloud Hosting?

AC

CE

SS

IBIL

ITY

SP

EE

D

CO

ST

MULTI-TENANTAUTOMATED

PAY AS YOU GO

1010

3 B

road

Cat

ego

ries

of

Ser

vice

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Cloud Computing: Definition and Characteristics

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- “Unlimited” processing and storage

- Abstracted/pooled resources

- Elastic: scale up or down

- On demand, Self-service

- Highly automated

- Consumption-based billing

A style of computing where dynamically scalable and often virtualized resources are provided as a service, over the Internet.

System Infra. (IaaS)1

App. Infra. (PaaS)2

Applications (SaaS)3

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SaaS, PaaS, IaaS - Explained

PaaS

IaaS

SaaS

Per

ceiv

ed V

alu

e b

y E

nd

Use

r

End Users

Developers

Architects and Sys Admins

Infrastructure as a

Service

Platformas a

Service

Softwareas a

Service

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Public Cloud

Multi-tenant Consumed over the

web “Infinite” Scale Utility Billing Zero Capex

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Private Cloud

Single-tenant Consumed over

private network Limited Scale Capital expenditure

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Cloud Hosting Options – An Analogy

In House ManagedHosting

Cloud Hosting

HOUSE CONDO HOTEL

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Cloud Growth Cannot be DeniedBenefits Customers and Partners

“By 2012, 20% of businesses will own no IT assets.”

Gartner Key Predictions, January 2010

IDC, March 2009

“The current U.S. economic woes will only drive more enterprises to consider and adopt cloud offerings. Spending on IT cloud services will hit $42 billion by 2012.”

“58 percent say cloud computing will cause a radical shift in IT and 47 percent say they are already using it or actively researching it.”

CIO Magazine (From IDC Report) October 2008

“The bulk of business computing will shift out of private data

centers to the cloud.”

Nicholas Carr, Author

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It’s Happening Today

* 2008 vs. 2009 Net Revenue

100,000 Customers in 120 Countries

80% are Cloud Customers

125% Growth in 2009

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WHY?

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Instant Access

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Scalability

PLANNED SCALING ON-DEMAND SCALING

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Cost Savings

40% LESS

In House Cloud

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It Drives Innovation

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The Transition to Cloud

TODAY

2015In House90%

Cloud50%

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Key Drivers of the Transition

Security Reliability

TimeFlexibility

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FOR EVERYONE, NOT EVERYTHING

ERPOSS

Workflow

WebsiteEcommerce

New Backoffce AppsWeb Applications

EmailWikisBlog

Test/Dev

The Right Tool for the Job

In House Managed Cloud

Legacy Apps Custom Apps Standard Apps

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Hybrid Model Gaining Traction

Managed AND CloudTwo independent applications

MANAGEDHOSTING

APP 1

CLOUDHOSTING

APP 2

HYBRIDHOSTING

APP 3

Managed PLUS Cloud Single application using both

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Using Cloud: FreshBooks

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Core App/Commerce Website and Archiving

Managed AND Cloud

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Using Cloud: Glam Media

•Database and core infrastructure on dedicated servers

•Content nodes scale up and down through the use of Cloud Servers

•Same data center for low latency and high bandwidth connections

Managed PLUS Cloud

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What You Should Look for in a Cloud Provider

Service and Support Focus

Open ApproachBroad Portfolio