Cloud

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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)

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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 computingInfrastructure market in 2012, up from $16B in 2008, IDC October 2008
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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

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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 operationalexpenses for running datacenter • Applications can be accessed from anywhere, anytime

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What is Driving Cloud Computing?
Vendor Perspective • Easier for application vendors to reach newcustomers • 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: economics8

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?
Customer Perspective • #1 Data Security
•  Manycustomers 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-timeapplications

• #3 Application Availability
•  Cannot switch from existing legacy applications •  Equivalent cloud applications do not exist

Not all applications work on public clouds

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