Cloud

Cloud Computing
Andy Bechtolsheim Chairman & Co-founder, Arista Networks November 12th, 2008

What is Cloud Computing?

The Fifth Generation of Computing (after Mainframe, Personal Computer, Client-Server Computing, and the web)

2

What is Cloud Computing?

The biggest thing since the web?

3

How big is Cloud Computing?

$42B
Estimated size of the cloud computing Infrastructure market in 2012, up from $16B in 2008, IDC October 2008
4

Projected Cloud Spending (IDC 2008)
Year Cloud IT Spending Total IT Spending Total – Cloud Spend Cloud / Total Spend 2008 $16B $383B $367B 4% 2012 $42B $494B $452B 9% Growth 27% 7% 4%

Cloud Spending is growing 6X faster than traditional IT spending

5

Worldwide IT Cloud Spending 2012

Source: IDC October 2008
6

What is Driving Cloud Computing?
Customer Perspective • 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

7

What is Driving Cloud Computing?
Vendor Perspective • 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

8

Quote of the Day

Over the long term, absent of other barriers, economics always win!

9

What are the Barriers to Cloud Computing?
Customer Perspective • #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

Not all applications work on public clouds

10