SoftLayer Fundamentals Evaluating Compe 1284315

2014 IBM Corporation

SoftLayer Fundamentals Evaluating Cloud Providers Leveraging SoftLayer Differentiators

2014 IBM Corporation Copyright IBM Corp. 2014. All rights reserved.

Course materials may not be reproduced in whole or in part without the prior written permission of IBM.

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Meet your speakers

Jody Cefola is the SoftLayer Channels Integration leader focused on

partner enablement from IBM. Jody had 10 years in channel development

and execution working with all types of partners and international

experience with channel execution in Europe and Asia Pacific.

Jeff Klink is a senior technical staff member (STSM) with IBM Canada. For the

past 10 years, Jeff has focused on large-scale solution design and practice

with a primary focus on software as a service for solution vendors and

managed service providers. Currently, Jeff serves as the worldwide lead for

the IBM Global Cloud Ecosystem architecture team, which evangelizes and

solutions on top of the SoftLayer and SCE+ infrastructure as a service

platforms.



Your cloud strategy is your business strategy

Pacesetters use cloud to surface insights from data. They reimagine business

models, make better decisions and serve customers in new ways to create winning

business outcomes.

With so much at stake, you don't want just any cloud

Source: IBM Center for Applied Insights Under cloud cover: How leaders are accelerating competitive differentiation that surveyed

802 cloud decision makers and users, spanning 13 countries and 24 industries.

2x the revenue growth

Almost

2.5x higher gross profit

growth than peers

Nearly



Tap into SoftLayer. Leverage significant investment to build

skills starting with SoftLayer Fundamentals

7.6 Revenue growth for Business Partners who have embraced

cloud2 7.6 2.5X

7.6 of CIOs who are reengineering IT plan to look for outside help new skills, tools and capabilites3 7.6 66%

Sources: 1. Forrester Research, Cloud Channel Trends, 2013 to 2014, February 2013, 2. IDC: Worldwide channel and alliances 2013 top 10 predictions, January 2013,3. IBM CIO

study, 2011,

7.6 value for service channel partners has become technical

training1

7.6 #1



SoftLayer Fundamentals is a series of technical webinars to

provide knowledge on the capabilities to help build solutions

Webinar

Date Topic # Topic

February 25 1 Changing the landscape, not the definition - SoftLayer overview

February 27 2 One size does not fit all Defining the SoftLayer cloud architecture

March 4 3 Connecting to the cloud SoftLayer network options, part 1


March 11 5 Keep safe Securing your virtual instances

March 13 6 Storing your data Understanding SoftLayer storage options

March 18 7 Flexible and on demand Understanding SoftLayer managed services

March 20 8 You cant manage what you dont monitor SoftLayer management and monitoring

March 25 9 Evaluating cloud providers - Leveraging SoftLayer differentiators

For general SoftLayer overview presentations

Lance Crosby, SoftLayer CEO, main tent at IBM PWLC: http://www.youtube.com/watch?v=t9h2cXwcUvA

Grow your cloud business - leveraging the IBM acquisition of SoftLayer:

https://engage.vevent.com/rt/ibm~1017?token=NTU2MTY1MjY0MDAxMjExMDgxN0NIRUNLX0RBVEVfQU5EX0VOVFJJ

RVNfQ09VTlQ



Leveraging the SoftLayer Differentiators

Upon completion of this webinar, you should be able to:

Discuss the competitive history of public

cloud IaaS

Review the magic quadrant

Explain the three decision criteria

7



all resources are virtualized.

virtualization is a choice with a flexible set of options.

resources can be shared, dedicated, or mixed.

SoftLayer stands apart because

Changing the definition without changing the landscape

Com

pe

titive

Clo

ud

Ma

nd

ate

s

all resources are shared, at every granular level.

Think Differently . With SoftLayer, neither is mandated, opening up cloud

computing to new applications and use cases



2006 2007 2008 2010 2011 2012 2013 2014

< 2006 2009

Spanning the competitive history of public cloud IaaS

Source(s): rackspace.com windowsazure.com

aws.amazon.com ibm.com

softlayer.com cloud.google.com



Magic quadrant for cloud IaaS

Pegging the players

Source(s): Lydia Leong, Douglas Toombs, Bob Gill,

Gregor Petri, Tiny Haynes, Magic Quadrant for Cloud Infrastructure as a Service, Garnter.com,, 19 August 2013,

http://www.gartner.com/technology/reprints.do?id=1-

1IMDMZ5&ct=130819&st=sb



Where are we (IBM and SoftLayer)

More knowledge and relationships in enterprise than any other competitor.

More backend enterprise technologies and deeper overall ecosystem.

More targeted platform for SME through enterprise roots.

Refocused on combined value of SoftLayer and SmartCloud Enterprise+ hosting platforms

14 SmartCloud Enterprise+ data centers and growing

13 + 15 SoftLayer data centers and growing

Far from garnering Amazons title of the worst SLA of any cloud provider Gartner VP Lydia Leong

Since publishing, the world of IaaS has dramatically shifted

Please mind the gap the train is coming

Pegging the players (cont.)

Source(s): Lydia Leong, Cloud IaaS SLAs can be meaningless, Gartner blog, 05 December 2012, http://blogs.gartner.com/lydia_leong/2012/12/05/cloud-

iaas-slas-can-be-meaningless/

Why was AWS considered a Leader?

More than five times the compute capacity in use than the aggregate total of the other 14 providers.

Largest ecosystem technology and consulting.

Diverse customer base developers, SMEs, large enterprise and government.

Broadest user cases including enterprise and mission critical applications.

Narrowed focus of IaaS comparison criteria



Most of the tests were two to three times faster than even the better commodity machines from Joyent Cloud and Microsoft Windows Azure.

The Tomcat test was almost 10 times faster than Amazon's EC2 small instance and about 30 to 40 percent faster than Amazon's high-CPU model.

Delivering superior value through performance, flexibility,

and control

Source(s): Peter Wayner, Review: SoftLayers cloud is fast and flexible, InfoWorld, 16 January 2013, http://www.infoworld.com/d/cloud-

computing/review-softlayers-cloud-fast-and-flexible-

210922?source=fssr



Decision criteria

Determining what really matters the decision criteria

Performance

Security

Control

Transparency

Automation

Flexibility

Innovation

Programs

SoftLayer competencies

Performance

Availability

Simplicity

Getting from competencies

to decisions



Performance

Flexibility

Innovation

1. Capability to optimize performance

Bare metal or virtualized Single or multi-tenant

2. Flexibility of options across the

infrastructure

Compute Hypervisor or none Storage Variety of storage

capabilities

Network Fully transparent 3. Reliable delivery of new functionality and innovation

Decision criteria #1 Performance

Performance

Flexibility

Innovation

Performance Getting from competencies to decisions through



CONSISTENCY

SOFTLAYER - Single 4-Core Intel 1270 CPU, 8 GB RAM, 4 x 500 GB SATAII HDD

VIRTUAL PROVIDER 4 Virtual Compute Units, 7.5 GB RAM, 4 x 500 GB Network Storage

CONSISTENCY

Getting what you see performance engineering

Source(s): Harold Hannon, Riak Performance Analysis: Bare Metal v. Virtual, The InnerLayer, 16 July 2013, http://blog.softlayer.com/2013/riak0performance-

analysis-bare-metal-v-virtual/



EXPECTATION

EXPECTATION



Getting what you see performance engineering (cont.)





RELIABILITY

RELIABILITY



Experiencing a direct result of high performance





Data Center Location Amsterdam Ireland

Instance Type Bare metal Virtual

CPU 12 vCPU 4vCPU

RAM 16GB 15GB

Disk Space 500 GB 500GB charged

Disk Type SATA II/III - RAID-1 Unknown

Operating Systems choice of 5 choice of 3

Input/Output Operations $0 charged

Redundant Power $0 not available

Redundant Network $0 not available

Outbound Traffic Charged after 20TB Charged after 1GB

Inter-Continental Traffic $0 charged

Intra-Data Center Traffic $0 charged

Public Network $0 $0

Private Network $0 not available

Management Network $0 not available

Technical Support Free charged

SLA 100% 99%

Final Monthly Price $X00s +>50%

vs

1

2

Looking deeper at utility pricing and feature completeness

Source(s): softlayer.com and aws.amazon.com



Performance

Flexibility

Innovation 1. Native resiliency that is transparent from

edge of the network to the physical adaptor

2. Undeniable quality and a 100% SLA

3. Global consistency in offerings

4. Never reuse policy (Department of Defense Standards)

5. Automation of notifications and service tickets

6. Triple-network architecture

Decision criteria #2 Availability

Security

Transparency

Control

Availability Getting from competencies to decisions through



The Feb. 29 Azure outage kicked some users out completely and left others unable to manage applications for more than eight hours.

The Oct. 30 worldwide outage left Azure Compute cloud users unable to upload files or manage websites hosted on the Azure servers.

On Aug. 16, Google.com saw all services go down

Google Drive was down intermittently from March 18 to 20 due to a glitch in the network control software. The outage impacted around one-third of Google customers for up to

17 hours.

Gmail experienced a 12-hour outage on Sept. 23 from a dual network failure that hit around a third of its user base.

On Oct 27th Verizon Terremark was hit by outage taking down many hosted applications. Solution providers stated there should have been redundancies and diversity built into the

system to prevent the problem.

Mere days after an Amazon.com outage, the company's Amazon Web Services cloud computing force reported "degraded performance" with an EC2 service along with

"connectivity issues" for Elastic Load Balancing systems at the same center.

Their Sept 13 outage took out regional Amazon Web Services due to a load balancing issue.

On Jan 3, 2014 Amazons cloud storage service experienced an outage, throwing many databases and applications offline

Being in the news Top outages of 2013

Source(s): Sarah Kuranda, The 10 Biggest Cloud Outages of 2013, CRN, 2 January 2014, www.crn.com/slide shows/cloud/240165024/the-10-

biggest-cloud-outages-of-2013.htm



0

1000

2000

3000

4000

5000

So Layer/ThePlanet

AmazonAWS Rackspace

TopHos ngProviders2012(Combined)

100,000

50,000

10,000

5,000

1,000

100

vs AWS vs Rackspace

SoftLayer 110% 160%

0

500

1000

1500

2000

2500

3000

3500

So Layer AmazonAWS Rackspace

TopHos ngProviders2012(So LayerAlone)

100,000

50,000

10,000

5,000

1,000

100

vs AWS vs Rackspace

SoftLayer and IBM 154% 223%

Usage by providers for top web hosting companies

Source(s): Top Clouds, http://topclouds.org/#/cloud/2012/10000/chart/10



Bringing three strategic messages now were in the news

Source(s): IBM Cloud, https://ibm.biz.BdR4EY

22



Data Center Location Amsterdam Ireland

Instance Type Bare metal Virtual

CPU 12 vCPU 4vCPU

RAM 16GB 15GB

Disk Space 500 GB 500GB charged

Disk Type SATA II/III - RAID-1 Unknown

Operating Systems choice of 5 choice of 3

Input/Output Operations $0 charged

Redundant Power $0 not available

Redundant Network $0 not available

Outbound Traffic Charged after 20TB Charged after 1TB

Inter-Continental Traffic $0 charged

Intra-Data Center Traffic $0 charged

Public Network $0 $0

Private Network $0 not available

Management Network $0 not available

Technical Support Free charged

SLA 100% 99%

Final Monthly Price $X00s +>50%

vs

1

2 *

Looking Back at Utility Pricing and Features




Performance

Flexibility

Innovation 1. 180+ service endpoints

2. Choice of platform for mobile

3. Full automation capability and ecosystem

4. SLA clarity; 100% or nothing at all

5. Ground-up design

Racks Servers

Storage Network Locations

Decision criteria #3 Simplicity

Control

Automation

Innovation

Simplicity Getting from competencies to decisions through



Comparison Item (Wanted) 1 2 3 4 Instance Usage Gateways/LBs Lightweight App Database Tier Heavy Application

Cores @ 2.0GHz 8 2 4 4

Memory GB 2 2 16 16

Network 1Gbps Pub/Priv 1Gbps Priv 1Gbps Priv 1Gbps Priv

OS Type Ubuntu Ubuntu Ubuntu Windows Datacenter

SoftLayer Virtual and Dedicated Instances

Storage GB (Local or SAN) - 25, 100GB Local 25 Local 25 SAN 25 Local 100

Add Storage SAN 500GB - - $32.57 -

1GB Network Upgrade $20.00 $20.00 $20.00 $20.00

24/7/365 Support Included Included Included Included

Hourly Rate (Comparison Rate) $0.213 $0.083 $0.351 $0.537

Instance Monthly Rate $148.00 $58.00 $244.00 $373.00

SoftLayer Monthly Rate Total $168.00 $68.00 $292.57 $393.00

AWS Virtual Instances

Instance Size/Type M1 - 2x7.5x840 M1 - 2x7.5x840 M3 - 4x15+EBS M3 - 4x15+EBS*

AWS EC2 instance per hour $0.24 $0.24 $0.45 $0.702

EBS Optimized Instances Charge* $0.025 $0.025

Hourly Rate (Combined) (Comparison Rate) $0.24 $0.24 $0.475 $0.727

AWS Price per Instance / Month $187.20 $187.20 $347.70 $532.17

EBS Provisioned IOPS @ $.125/GB IOPS @ 30 days

$62.50 $100.00

$12.50 $50.00

AWS Data Transfer @ $0.12/GB $59.88 $0.00 $0.00 $0.00

AWS/Month Subtotal $247.08 $187.20 $510.20 $594.67

AWS Suppport* $24.70 $18.72 $51.02 $59.48

AWS Monthly Total $271.78 $205.92 $561.22 $654.15

Savings (-) SL vs AWS -$103.78 -$137.92 -$268.65 -$261.15

Total Advantage -$761.50

So

ftL

aye

r Comparing workloads head-to-head deep dive


Created on 13 March 2014 using AWS US West data

centers and SoftLayer Dallas data centers.

25



Ease of use and control are huge for customers, and SoftLayer really stood out to us on this dimension. They

are very well-built, designed well and really just

easy to use. We liked that they could scale but were

still very nimble on configuration.

VP of Cloud Computing Programs, Synnex

We are really pleased with the APIs from SoftLayer. It allows us to automate a lot of things that we do, and

with the friction-less purchasing process we are able

to do business on our own with very little delays.

Director of Operations, Kixeye

SoftLayer has successfully automated just about everything in terms of fast provisioning, control,

configuration of hardware. The nearest competitor is

Amazon, they dont do it with the physical architecture.

Manager of Operations and System Architecture, Vertical Scope

SoftLayers performance is strong. A processor is a processor, but we have generally been very happy

with the compute.

Director of Operations, Kixeye

We have high volume of transactions with low latency required. Cloud performance is variable and it

would have a negative impact on our ad service, so we

need the strong performance that SoftLayer can

provide.

Sr. Director of IT, Nexage

We chose SoftLayer because we have a need for high-powered computing and data crunching. They have

the hardware that gets the job done and it does

everything that they say it will. The cloud offerings just

simply arent there at a competitive price.

CEO, Church Media Group

Control

(APIs, HW/SW Configurability

I/O Intensity

Hearing from our clients

Source(s): Customer interviews, n-5,

softlayer.com

26



Why IBM will Win the War with AWS CIO.com

Prominent Recent Article:

Daring to compare

Dare to compare

Your application

Your solution

Your ability to deliver

Your price

against the competition on every level you need to

measure

Performance

Availability

Simplicity

27



Supporting data

28



27 Amazon Web Services instance types

Source(s): aws.amazon.com



? ?

Questions


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Leading Edge

Trusted

Completely Free

Recommended actions

Sign up for a free 1 month trial account:

http://www.softlayer.com/info/free-

cloud/skills100

Within 60 days, register as a SoftLayer

partner with a viable SL opportunity (time

frame, workload, configuration) at:

http://www.softlayer.com/partners/ibm-

partners



Attend other SoftLayer Fundamentals webinars or download

the replay and materials at your convenience

Please remember to download the glossary of terms

Webinar

Date Topic # Topic Name

February 25 1 Changing the landscape, not the definition - SoftLayer overview

February 27 2 One size does not fit all Defining the SoftLayer cloud architecture



March 11 5 Keep safe Securing your virtual instances

March 13 6 Storing your data Understanding SoftLayer storage options

March 18 7 Flexible and on demand Understanding SoftLayer managed services

March 20 8 You cant manage what you dont monitor SoftLayer management and monitoring

March 25 9 Evaluating cloud providers - Leveraging SoftLayer differentiators

SoftLayer Fundamentals Evaluating Compe 1284315

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