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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)


What is Cloud Computing?

The biggest thing since the web?


How big is Cloud Computing?

Estimated size of the cloud computingInfrastructure market in 2012, up from $16B in 2008, IDC October 2008

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


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


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!


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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