Cloud and IT: Creating New Consumption Models€¦ · Prepared by Rick Gomez, Chris Calderbank -...
Transcript of Cloud and IT: Creating New Consumption Models€¦ · Prepared by Rick Gomez, Chris Calderbank -...
Cloud and IT: Creating New Consumption Models
Bob Gault
VP, Cloud and Managed Services Partner Org
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Why Cloud?
Private vs. Public Cloud
Cloud Market Opportunity
Cisco’s Approach to Cloud
Program Excellence
Enterprise Use Case
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IT-as-a-Service
Compute
Storage Network
Broad
Network
Access
Resource
Pooling
Rapid
Elasticity
Measured
Service
On-Demand
Self Service
Legacy IT
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• EC2 costs 12.3 cents/(ECU hr)
Assume 100% utilization
• On-Prem costs 1.5-3.0 cents/(ECU hr)
Break-even at 10-20% utilization
“When making a 'lease or buy' decision you must look not only at financial comparisons but also at your own personal priorities — what's important to you.” Leaseguide.com
Like buying a car, it
depends…
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BUILD Attributes
Core to differentiation
Mission Critical/Operational
advantage in cost/risk/scale or
speed
User Experience: Customer
BUY Attributes
Core Value Prop of Vendor
Mission Critical/Operational
advantage in cost/risk/scale or speed
Small Scale
Global Deployment
User Experience: Employee
Key Decision Criteria
Risk Profile
Experience
Value Add
Cost
Time to Deploy
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Private Cloud
Public Cloud Own Private Cloud
infrastructure where
utilization is consistent
(>20%)
Recognize cloud benefits
of self-service, flexibility,
elasticity, efficiency, agility,
rapid provisioning, greater
security and availability
Rent Public Cloud for
temporary/peak/testing
environments
Recognize outsourcing
benefits of reduced
CapEx, rapid increase or
decrease in capacity
Exit cost?
Cloud ≠ Public Cloud ≠ Outsourcing
The Power of “And”
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Why Cloud?
Private vs. Public Cloud
Cloud Market Opportunity
Cisco’s Approach to Cloud
Program Excellence
Enterprise Use Case
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$1.3
$4.2
$10.3
$27.2
$66.7
2013
$31.4
$6.2
$12.6
2012
$38.0
$88.2
2014
$25.1 $49.1
$18.9
$8.1
$2.7
$19.4
2011
$33.1
$13.0
$5.0 $1.9
$13.3
2010
$23.5
$9.0
$3.5
$9.7
VPC
IaaS
PaaS
SaaS
CAGR
34.0%
49.1%
37.9%
43.4%
39.2
%
Cloud Services
Available Market ($B)
Source: Strategic Marketing Organization, Corporate Development Organization
$11.0
$24.5
$2.5
$38.0
IaaS
PaaS
SaaS 41.7%
46.8%
46.6%
Cloud Services will be an $88B market by 2014 growing at nearly a 40% CAGR
• SaaS continues to represent the largest portion of the cloud services market
• While PaaS represents the smallest market segment, it is growing at the fastest rate
• PaaS drives stickiness for IaaS and SaaS
• Virtual Private Cloud (VPC) growing at a faster rate than public cloud services
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Cloud Services, Worldwide, CY 2011-2106 (Millions of Dollars)
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Global YoY Comparison (Bookings $M)
$0
$50
$100
$150
$200
$250
FY12 FY13
IaaS
IaaS
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
FY12 FY13
HCS
HCS
= 988% YoY growth = 24% YoY growth
0%
200%
400%
600%
800%
1000%
0%
10%
20%
30%
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Source: Global Cloud Dashboard, Finance BO Report - Results as of 10/28/13
Prepared by Rick Gomez, Chris Calderbank - Global Cloud & MS Partner Organization. Jeff Baker -WW Sales Enablement
1 of 1
Offer YoY growth
(Q1FY13 vs Q1FY14)
IaaS 850 %
HCS 111 %
CCaaS 4,415 %
TPaaS -27 %
Total Q1: 287 %
Bookings by Cloud Offer Partners & Offers In Market
Cloud Total Q1FY14
Net new
Providers 109 12
Offers 135 15
Americas
Bookings by Geo
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Why Cloud?
Private vs. Public Cloud
Cloud Market Opportunity
Cisco’s Approach to Cloud
Program Excellence
Enterprise Use Case
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Hybrid
Public Private
Government
Retail
Healthcare
Media
Cloud
Provider
Cloud
Provider
Cloud
Provider
Cloud Services
Supply
Dynamic,
Efficient
Agility
Accelerated
Deployment Security Assured
Experience
New
Revenue
Streams
Business
People
Cloud Services Demand
Government
Enabling the Cloud Supply-Demand Ecosystem
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Enable Cloud Providers
and Enterprises to Create
Differentiated Cloud Services
Provide Cloud Services in
Selected Categories, Where Cisco
Has Differentiated Application IP
Smart Solutions
Cisco Cloud Portfolio
Cloud Enablement
Services
Unified
Data
Center
Cisco
Applications
Cloud
Intelligent
Network
Network Management
Video
Collaboration
Security
Powering Cloud Services by Combining the Cisco
Cloud Portfolio and the depth of our Partner Ecosystem
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Enable our Partners to Build, Provide, White-label & Resell Cisco Powered Cloud Services
Enable Partners to build, provide,
White-label & resell private, public or
hybrid clouds
Solutions for
Building & Providing
Clouds
Accelerating TTM, reducing costs, driving growth and increasing
profitability
Leverage Assets to
Drive Partner Loyalty
Rich Ecosystem of
Integrated Solutions
Develop & expand an ecosystem to
develop, deliver & enhance Cisco
Powered Services
Research In Motion SAMSUN
G
Enable Partners to accelerate this
transition to new business models
Develop Awareness,
Preference &
Demand for Cisco
Powered Solutions
WAN
Webex
Users
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Cloud Services Reseller
Enterprise
WebEx HCS Provider
WebEx Social
Midmarket/SMB
IaaS Provider
Independent SW Vendor (ISV)
Vertical
Aggregator/Provider
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Why Cloud?
Private vs. Public Cloud
Cloud Market Opportunity
Cisco’s Approach to Cloud
Program Excellence
Enterprise Use Case
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Cloud Builder Model
Cloud Provider
Model
Cloud Services Resale Model
Build and Sell
Cisco-Centric Clouds
to Customers and
Cloud Providers
Manage and Sell
Cisco-Powered
Cloud Services to
Customers
Resell Providers’
Cisco-Powered
Cloud Services to
Customers
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Why Cloud?
Private vs. Public Cloud
Cloud Market Opportunity
Cisco’s Approach to Cloud
Program Excellence
Enterprise Use Case
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Customer Request:
• Veyance, a $2B Goodyear spinoff, wanted a
more cost-effective, nimble and agile IT operation
• No infrastructure or capital budgets
Cisco/Virtustream Offering:
• Virtustream’s xStream™ — an Enterprise Class
Cloud that allows mission-critical legacy and
web-scale applications to run in the cloud—
whether private, virtual private or public
• Built as a secure, multi-tenant SAP application
support platform using Cisco UCS and Nexus
Why We Won the Deal:
• Virtustream’s SAP as a service offer and
understanding of Veyance’s critical business
requirements
• Flexibility and reliability of Cisco Powered UCS
platform; Cisco’s trusted brand
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• When it comes to Cloud, it’s about the power of the “And’
• Cloud represents a tremendous opportunity for IT to innovate and drive new business
• We have the assets and the Partner Community to help you with your Cloud decisions
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Questions?