Cloud Computing
Andy Bechtolsheim
Chairman & Co-founder, Arista Networks
November 12th, 2008
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What is Cloud Computing?
The Fifth Generation of Computing
(after Mainframe, Personal Computer,
Client-Server Computing, and the web)
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What is Cloud Computing?
The biggest thing
since the web?
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How big is Cloud Computing?
$42B
Estimated size of the cloud computing
Infrastructure market in 2012, up from
$16B in 2008, IDC October 2008
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Projected Cloud Spending (IDC 2008)
Cloud Spending is growing 6X faster
than traditional IT spending
Year
2008
2012
Growth
Cloud IT Spending
$16B
$42B
27%
Total IT Spending
$383B
$494B
7%
Total – Cloud Spend
$367B
$452B
4%
Cloud / Total Spend
4%
9%
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Worldwide IT Cloud Spending 2012
Source: IDC October 2008
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What is Driving Cloud Computing?
• In one word: economics
• Faster, simpler, cheaper to use cloud apps
• No upfront capital required for servers and storage
• No ongoing operational expenses for running datacenter
• Applications can be accessed from anywhere, anytime
Customer Perspective
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What is Driving Cloud Computing?
• Easier for application vendors to reach new customers
• Lowest cost way of delivering and supporting applications
• Ability to use commodity server and storage hardware
• Ability to drive down data center operational cots
• In one word: economics
Vendor Perspective
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Quote of the Day
Over the long term,
absent of other barriers,
economics always win!
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What are the Barriers to Cloud Computing?
• #1 Data Security
• Many customers don’t wish to trust their data to “the cloud”
• Data must be locally retained for regulatory reasons
• #2 Latency
• The cloud can be many milliseconds away
• Not suitable for real-time applications
• #3 Application Availability
• Cannot switch from existing legacy applications
• Equivalent cloud applications do not exist
Customer Perspective
Not all applications work on public clouds
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What are the Barriers to Cloud Computing?
• #1 Service Level A