Has cloud delivered its promises to SMBs?

When will I have the cloud of my dreams?

Cloud Expo Europe

March 12th, 2015

Javier Salcedo

Head of PM Cloud

Agenda

3/17/2015 1&1 Internet AG 2

Go back 8 years: what

were cloud promises?

1

What’s the cloud

market offering

today?

2

Are we fulfilling cloud

promises?

A critical review

3

What can I expect in

the future?

Will I have the cloud

of my dreams?

4

20152007 2016+

Cloud promised to be the magic recipe for IT departments

3/17/2015 1&1 Internet AG 3

Go back 8 years: what were cloud promises?1

Lower TCO Powerful Super easy More reliable

Flexibility /

pay per useTrusted partnerTransparent /

Peace of mindNo vendor

lock-in

3/17/2015 1&1 Internet AG 4

Two main groups of cloud providers

Offering

description

Leading

providers

Target

groups

SIMPLE CLOUDS MEGA CLOUDS

SMBs, hobbyists developers, small ISvs

• Traditional hosters & startups

• Entry solutions for simple use cases

• Cheap price points (from <=5$)

• Limited feature set, limited benefits

• Best-effort support is limited to best effort

Corporations, bigger VARs/System

Integrators, bigger ISVs / developers

• Super-powerful

• The more features the better

• Increasingly complex to learn

• Need IT experts, long onboarding

• Enterprise support

• Higher costs

What’s the cloud market offering today?2

3/17/2015 1&1 Internet AG 5

A critical review at cloud promises (I)

SIMPLE

CLOUDSMEGA

CLOUDS

What’s the cloud market offering today?2

Super

easy

• Quite easy to use in general (at

the price of simplicity)

• Huge and complex portfolios

• Long learning curve

• Lots of choices to be made (VM configurations, pricing models…)

• Won’t survive without documentation

More

reliable

• Best-effort reliability (Local storage, no SAN, no automatic

failover, limited hardware redundancy)

• Reliability (e.g. SAN storage)

typically paid extra

Lower

TCO

Powerful

• Great price points (5$ or less)

• Pay more than I need (bundled

VMs)

• Hidden TCO (lack of adv. feats.)

• Pay more than I need (bundled VMs)

• Not as cheap as expected

• Basic offerings, “just a server”

• Lack of advanced features(Windows OS, server mgmt., shared

storage, networking, monitoring,

security…)

• Very powerful

3/17/2015 1&1 Internet AG 6

A critical review at cloud promises (II)

SIMPLE

CLOUDSMEGA

CLOUDS

What’s the cloud market offering today?2

Transparent

/ peace of

mind

• Pay extra features (e.g. data transfer, loadbalancing, SAN)

• Difficult to predict your costs

• Pay extra features

• Difficult to predict your costs

• Real challenge to check your invoice (bundled VM sizes, time commitments/usage…)

Flexibility /

pay per

use

• No flexibility to define my server

(bundled VMs)

• Buy more than I need

• No flexibility (bundled VMs)

• Buy more than I need

• Limitations to change between server

bundles (manual, time consuming)

• Best price only w/ long term contract

No vendor

lock-in

Trusted

partner

• Far from promises • Far from promises

• Focus on low-cost, limited support

• Sometimes no phone support

• Trust on small companies/niche

players?

• Good support

• Trusted partners/advisor

What can I expect in the future? Will I have the cloud of my dreams?

But… I’m a dreamer!

3/17/2015 1&1 Internet AG 7

Cloud is undoubtedly bringing an unprecedented business agility and innovation rate

at the IT industry. Market is developing much faster than expected from all analysts.

Promises are

only partially met

Will I ever had the

cloud of my dreams?

It doesn’t seem to

be that easy…

What can I expect in the future? Will I have the cloud of my dreams?4

1&1, some fresh air in the crowded cloud market

3/17/2015 1&1 Internet AG 8

The leading European hosting provider and 2nd hosting company worldwideWho’s 1&1?

The cloud of

your dreams

Goal

Create the cloud of your dreams for SMBs, VARs and developers

How?

Designed from scratch: no legacy, no ties

6 years of cloud experience

Key design philosophies: easy, customer-designed,

powerful, transparent, clean, no tricks, all included

New cloud organizational unit

Where are we?

New product January 2015

Great step towards the cloud

of your dreams

… still work to do

What can I expect in the future? Will I have the cloud of my dreams?4

1&1 cloud – Our steps towards being the cloud of your dreams

3/17/2015 1&1 Internet AG 9

Super easy

More

reliable

Lower TCO

PowerfulTransparent /

peace of mind

Flexibility /

pay per use

No vendor

lock-in

Trusted

partner

What can I expect in the future? Will I have the cloud of my dreams?4

Low price but fully-featured

Save money by adapting your server

to your real needs at any time

SSD with 5 ms latency by default

Advanced features(firewall, backup, loadbalancer, private

networks, shared storage, RBAC)

2 million server configurations

available in less than 55”

Zero commitments

Best price from day 0, no matter your

volume/commitment

True pay per use: change the server size at

any moment and pay per minute

Intuitive, modern cloud panel

No help, no learning curve needed

All the complex choices removed

Just experience it

Pay only for what you can control & avoid

surprises with extra-charges

All-included pricing

Easy pricing: monthly prices & time usage

Check your invoice in 1 minute

Transparency is a must, just relax

SAN persistent storage by default

Automatic recovery after failure

Leading state-of-the-art technologies (VMWare, SolidFire SSD, etc.)

Embedded monitoring portal

[R] 1&1-pioneering georedundancy

We want fans, not prisoners

[R] Freedom to import/export your VMs

Support team is specialized in servers & cloud

24x7 support

Integrated solutions for everything you need,

including domains, DNS, SSL certificates

EU hosting leader

[R] = Roadmap

Visit us on stand 054

Product demos available periodically

javier.salcedogadea@1and1.es

Try 1&1 Cloud Server free with just an email:

www.1and1.co.uk/cloudexpo

Want to learn more?