Dimension Data Saugatuk Webinar

Presenters:

Dave McKenzieSr. Director, Solutions Architects

Dimension Data Cloud Business Unit

Charlie BurnsVice President

Saugatuck Technology

Moderator:

David SawatzkeDirector, Marketing Programs

Dimension Data Cloud Business Unit

18th Sept 2013

Understand Real Cloud Infrastructure Costs to Make the Best Public Cloud Investment

This Webinar will begin at11:00am PDTSeptember 18th, 2013

© Copyright Dimension Data & Saugatuck Technology 28 April 2023

Welcome to our Webinar!

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$200 FREE Dimension Data Promo Code offered at the end of the Webinar!


Dave McKenzie has 20 years of experience in technology. At Applied Materials, Dave was in charge of IT services and support for a billion dollar product group. At Accelica he helped lead a start up consulting company through the transition to managed services and later through the acquisition to OpSource. At OpSource, Dave has held positions as Director of Operations directly managing client implementations and on-going support teams, and is now the Sr. Director of Solutions Architects in charge of providing guidance to clients to meet their technical requirements.

Charlie Burns has been with Saugatuck Technology since early 2006 and is a Research Vice President focusing on enterprise software, business/IT services, systems management, and IT systems technologies including the “pragmatics” of Cloud Computing. With over 35 years of experience in the Information Technology arena, Charlie is an established expert in IT product and marketing management, and in IT user issues and requirements. After 26 years with IBM, where he held positions in sales, product development and large systems product marketing, Charlie left to become Research Director at Gartner Group in 1993. In 1998 he joined Giga Information Group as Research VP. At both Gartner and Giga, he focused on large systems and the business practices of the major large systems vendors. In 2000, Charlie rejoined Gartner in a relationship management role responsible for two of its largest vendor clients.

Charlie BurnsVice PresidentSaugatuck Technology

David McKenzieSr. Director, Solutions ArchitectsDimension Data Cloud Business Unit


Agenda

• About Saugatuck Technology

• Most Recent Survey Results

• Cloud Ecosystem has become Boundary-freeTM

• Importance of Cost Elements

• Ongoing Impact of Granularity

• Service Offerings for Additional Benefits

• About Dimension Data

• Sizing Servers and Storage

• Network-centric Cloud Architecture

• Use Cases


Saugatuck Technology

Market strategy consulting and subscription research services for senior executives, IT

vendors and services providers and investors

Mission: Help our clients make better business decisions through trusted insights

Browse and register for free research:www.saugaucktechnology.com

Business Strategy

Technology Strategy

BusinessValue of IT

Vendor Briefings

Fact-based Research of

Executive Decision-Makers

Industry Thought-Leadership

•Business drivers•Competitive trends•Economic trends•Regulation

Disruptive Technologies/ Business Trendsand Directions

CIOCFO

LOB Exec

CMO

http://www.saugaucktechnology.com/


Survey question: For each of the following years, my company’s preference for deploying new business software (on a continuum from traditional on-premise to hybrid-cloud to pure-play cloud) will be:

2013 2015 20170%

10%

20%

30%

40%

50%

60%

70%68%

23%

14%

27%

57%

46%

5%

20%

40%

On-premises

Hybrid On-premises + Cloud

Pure Cloud

Source: Saugatuck Technology 2013 n=218


The Cloud Ecosystem has become Boundary-freeTM

Disruption:

Through at least 2017, cloud-first spending will drive growth and expansion of hybrid, cloud+on-premises business solutions and Boundary-free EnterpriseTM environments.

Innovation

Marketo went to market with embedded business intelligence from Pentaho in just nine weeks. Salesforce sells multiple clouds, all loosely-coupled with the others.

Insight:

• IaaS, PaaS and SaaS, while not obsolete, offer less market appeal than linked solutions.

• Vertical market solutions combined with PaaS encourage customer and channel innovation.


The Boundary-free EnterpriseTM Emerges from the

Maturing Cloud

• Businesses and individuals do their work now through a new array oftime- and location-independent computing capabilities – cloud, mobile, social and data analytics (CMSA) – that make the Boundary-free Enterprise™ possible.

• Though no two Boundary-free Enterprises™ are exactly alike, businesses have begun to reconfigure how computing resources are deployed to take advantage of anytime/anyplace hybrid computing through an emerging master architecture.

Cloud, Mobile, Social and Data Analytics (CMSA) plus Integration

Cloud Business Services and Operations

Cloud Business Solutions

Cloud Infrastructure

Cloud Platforms & Hubs

Cloud Technologies

On-premises Assets& Operations

Mobility

Analytics

Social

Collaboration

Integration

The SaugatuckCloud EcoStackTM


Importance of Cost Elements

• Costs of cloud computing can be viewed in two broad categories:

› One time

» Workload Implementation and Migration

› On-going

» Workload Execution and Management

» Workload Maintenance and Support

» Compliance & Availability

• For a workload run on a cloud offering with interdependent workload(s) run on the customer’sin-house infrastructure, additional costs are:

› Data Transmission. The data which is passed between the workloads must be transmitted between the infrastructures.

• Costs vary by workload (characteristics of the data, and the processes implemented by the IT organization)


Cost Elements Example

Using publicly available AWS data for a Windows workload which requires 5 hours of a large standard on-demand instance to process a 10 TB data file containing 10**10 data records (i.e., each data record is 1K in size):

• Transmitting 10 TB from a customer infrastructure to EC2 and then back again to the customer infrastructure will result in a charge of $1200.00 in the US

• Storing the same 10 TB in S3 in “Reduced Redundancy” storage will cost $652.00

• If 10% of the data records are read, and 1% are updated, processing the data will cost $900.00 in data access charges

• Five hours of a large standard on-demand instance running Windows will cost, if we assume relatively low requirements for server resources will cost $1.82

Total costs incurred for the workload are $2753.82, with the costs of the server resources used a mere 0.066% of the total.

Closely related is the effective performance of the infrastructure. Higher performance translates directly to lower costs for resources consumed.


Impact of Granularity

• When quantifying costs for running a workload in a public cloud IaaS offering, the“On-Demand” configuration is key

• Some standard public cloud offerings include a number of pre-definedserver configurations

• Others such as Dimension Data, provide more configuration flexibility – within limits

• To Illustrate the impact of configuration flexibility – i.e., granularity – we show information from publicly available price estimators provided by Dimension Data, IBM and Rackspace


Impact of Granularity (cont’d)

Public Cloud Provider Public Cloud Server Configuration Granularity

IBM

6 Pre-defined Server Configurations ranging from 2 CPUs,4GB of memory, and 60GB of disk storage, to 16 CPUs, 32GB of memory, and 2108GB of disk storage. Additional disk storage can be selected.

Dimension Data

No Pre-defined Server Configurations. Can select from 1 to16 CPUs, from 1GB to 128GB RAM memory, and 10GB to 2500GB disk storage for each server. Additional cloud disk storage can be selected.

Rackspace

6 Pre-defined Server Configurations for Windows(or 7 for Linux) ranging from 1 CPU, 512MB of memory, and 20GB of disk storage, to 8 CPUs, 30GB of memory, and 1200GB of disk storage.


Impact of Granularity

• Pre-defined configurations essentially create a price model with “stair-step” increments of resources resulting in excess charges

• Consider a workload that requires substantial memory but not significantprocessing power

› Probably forced to select a pre-defined configuration with too many processor cores just to gain the memory required


Value of Services

• Cloud provider service offerings are analogous to MSP

• Various “levels” of service offerings

› Manage infrastructure

› Manage up through middleware

› Manage up through application (for specific application types)

• Cloud provider service offerings can deliver:

› Cost reductions through “economies-of-scale”

› Improved service levels of the workload

› Increased value of IT staff by enabling focus on supporting business processes


Conclusions & Recommendations

• Identify and quantify ALL cost elements

• Quantify the on-going impact of configuration flexibility (granularity)

• Consider services offerings for potential savings and increased value to users


About Saugatuck Technology

SAUGATUCK OFFERINGS AND SERVICES

Saugatuck Technology provides subscription research/advisory and consulting services to senior business and IT executives, technology and software vendors, business/IT services providers, and investors. Our Mission is to help our clients make better business decisions and create new business value through trusted and objective insights into the key market trends and emerging technologies driving real change. Over the last few years, this has included a major focus on Software-as-a-Service (SaaS), Cloud Infrastructure, and Social Business Technologies, among other key trends.

For more information about these or any other Saugatuck Technology service, please reach us through the contact information noted above.

• To learn more about Saugatuck consulting and research offerings, go to www.saugatucktechnology.com or email Chris MacGregor for more information.

• While there register on our site and begin receiving our complimentary Research Alerts and browse our Research Library.

US AND EUROPEAN OFFICES

HeadquartersSaugatuck Technology Inc.8 Wright Street, 1st Floor.Westport, CT 06880 USA (P) +1.203.454.3900

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US Regional Sales:

East and South: [email protected]: [email protected]

GermanySaugatuck Technology Inc.Wilhelmstrasse 1865185 Wiesbaden, Germany(P) +49.6123.630285Regional Sales: [email protected]

CONTINUOUS RESEARCH SERVICES (CRS)• Subscription access to Saugatuck’s ongoing premium research, providing independent/unbiased

insights and guidance into key market trends, buyer behavior, "white-space" opportunities and disruptive market forces driving changes in business computing.

• A variety of advisory services, including telephone-based inquiry, and “Analyst Days”.

USER STRATEGIC CONSULTING SERVICES• Leadership and Planning Workshops• Strategy and Program Assessments – including for new Cloud Business initiatives• Vendor Selection & Evaluation/RFP Development & PoC Project Management• Cloud Transition/Migration and Management Best Practices

VENDOR STRATEGIC CONSULTING SERVICES• Market Assessment• Strategy Validation• Opportunity Analysis• Positioning/Messaging/Go-to-Market Strategies• Competitive Analysis

THOUGHT-LEADERSHIP PROGRAMS• Custom research programs targeting key technology and business/IT investment decisions of

CIOs, CFOs and senior business executives.• Delivered as research reports, position papers or executive presentations.

VALUE-ADDED SERVICES• Competitive and market intelligence• Investment advisory services (M&A support, due diligence)• Primary and Secondary market research

• • ••

•

Silicon ValleySaugatuck Technology Inc.5201 Great America Parkway, Suite 320Santa Clara, CA 95054 USA (P) +1.408.727.9700

http://www.saugatucktechnology.com/

mailto:[email protected]



http://saugatucktechnology.com/Browse-Research-Library/




Dimension Data launched its Cloud Business in June 2011

100% 100%

Regionalcommunications business

100%

Long distance and international communications business

54.2%

Application integration business

66.6%

Voting rights ratio

Mobile communication business

Real estate, finance, construction and power business

Other business

Other Group companies

100%

Managed ICT infrastructure

Dimension Data acquired cloud services leader OpSource and formed Cloud Business Unit in June 2011 Cloud

Business Unit

http://www.ntt.com/

http://www.ntt.com/

http://www.ntt.com/

http://www.ntt.com/

http://www.nttdocomo.co.jp/






Dimension Data Cloud Credentials – Gartner MQ

• Differentiated cloud technology• Strong performance guarantees• Experts in both cloud and

managed services• Global Coverage• Solution for both enterprise and

service providers


Sizing Servers: Easy to Configure Server Resources

Resources can be configured independently (1-16 CPUs, 1-128GBs RAM, 10GB-2.5TB Disk)

Right size your server to meet the needs of your workloads.

PAY for only what you NEED not what you are FORCED to BUY.

Cost savings

Note: API Configurable


Sizing Storage: Deploying Tiered Storage

• Using the UI to Deploy Tiered Storage• All cloud servers have an OS storage

disk and up to 13 additional local disks

• On deployment, all disks associated with a given cloud server will be deployed on the “standard" disk infrastructure

• Once a server is deployed, customers can change the disk speed of an individual disk from standard to a different disk speed

• The full functionality of tiered storage is available to clients using the API as well!


Dimension Data Cloud Credentials - Tolly Report

“The Dimension Data cloud servers showed consistently high performance across the

range of resources benchmarked.”

Tolly Report, July 2013


Dimension Data

Managed Cloud Platform

CloudControl™

Dimension Data MCP

Network-Centric Dimension Data Cloud Architecture

Internet

Border Router

VPN

Firewall

Load Balancers

Core SwitchingIDS Monitoring

DOS Prevention

Secure Access Router

Workloads Workload Database

Dedicated servers

Virtualized servers

PublicPrivate

Hosted Private CaaS

Highperformance

Tiered Storage

Standard Economy

Dimension Data has put network control at the core of its cloud offering


A Global Cloud Exchange MCP expansion continues…

increasing flexibility

Global Dimension Data Cloud Exchange :

Providing organisations with the flexibility to expand into new markets, over night without capital and skill investment and able to respond to market changes without over investing in capacity

Dimension Data

Cloud Exchange ̶ Benefits:

• Enable clients to deploy compute resources on a global scale

• Performance & latency can be optimised

• Data sovereignty requirements can be satisfied

• On your premise MCPs can participate

• Dimension Data global public cloud architecture for Compute Services

• DC IaaS offerings provided on a multi-tenanted architecture, hosted in Dimension Data or third-party data centres around the globe

• Fully managed

“now with WAN Optimization”

Hong Kong

Sydney

EU AmsterdamUS West

US East

South Africa

Tokyo


Use Case – Database Utilization in the Cloud

• Dimension Data public cloud tiered storage and align three different tiers to the appropriate utilization tiers

• Utilize economy tier for data backup, standard tier actual DB content and high performance tier for DB content needing acceleration for logs, temp area and high I/O databases

• Allows for right adjusting storage and CPU/RAM resources based on server needs on the fly

• Keep migration to a minimum, as no new servers are needed to augment the solution

So

luti

on

H

igh

lig

hts

• Cloud DB servers reaching disk I/O and CPU/RAM capacity

• Not an option to migrate back to physical server

• Application does not allow for branching off the DB to scale horizontally

Situation

• Public cloud Tiered Storage solution

• Accelerate disk I/O

• Gain granular storage, CPU and RAM control balancing performance with cost

Opportunity

Tiered StorageApp App

Virtual Servers – 8 CPUs 16GB RAM, 100GB

Storage

Dim

ensi

on

Dat

a C

loud

Con

trol

™

High Performance- Logs, Temp Area- High I/O DB

Standard- Application DB

Economy- Data Backup

Dimension Data Managed Cloud Platform


Managed Cloud Platform™ (MCP) types

Public MCPPublic CaaSDeployed in each region

Managed HostingManaged physical and virtual infrastructure hosted in a Dimension Data data centre

Private MCPPrivate CaaSClient data centre Dedicated

Provider & Community MCPDedicated platform for resale by SP or community

Dimension Data

Managed Cloud Platform™

Dimension Data CloudControl™ Hosted Private MCP

Hosted Private CaaSDimension Data data centreLevels of Sharing


Core service differentiators

Security (VLANs, IDS/IPS, firewalls, permissions-based controls)

Reliability (best-of-breed technology, network-centric, SLAs)

Control (UI and REST API for control, orchestration, provisioning)

Performance (hardware-based networking, fast processing,

memory, storage and networking, tiered storage, WAN optimization)

Flexibility (Granular control of resources)

✔✔✔✔

✔


Thousands of Clients with Millions of End-Users

SaaS ISVService Provider Enterprise


$200 FREE

$200 Towards CLOUDUse Code DDWEB04 during sign-up at

http://nacloud.dimensiondata.com/Sign-Up-Now

• Instant Access to Account

• Pay as you Go Pricing with Elastic Scalability

• Launch your Development, Production, or DR Environments

• Built on VMware, Cisco Networks, and EMC Storage

• Website: http://nacloud.dimensiondata.com

• Email: [email protected]

• Twitter: @DidataCloud

* New Customers Only – Offer ends 10/02/2013

Enter your questions in chat Q&A box below presentation panel

Email:

[email protected]

Main Phone: +1-408-567-2000

Cloud Sales: +1-408-567-2082+1-800-664-9973

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Dimension Data Saugatuk Webinar

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