Cloud Can Increase Korea’s Global
        Competitiveness

         Keynote - Cloud Frontiers 2011

     Randy Bias, CEO,
A Vision of Cloud Computing

Fundamentals of the Disruption

    Korean Opportunities
A Vision of Cloud Computing
  (                     )
What is Cloud Computing?

On demand                          Self-service
 services?                         Web Apps?




                    ?
 IT-as-a-
 Service?                        Virtualization?
... could it be even bigger change?

On demand                           Self-service
 services?                          Web Apps?




 IT-as-a-
 Service?                         Virtualization?
... could it be even bigger change?

On demand                           Self-service
 services?                          Web Apps?


             Revolution?
             Disruption?
 IT-as-a-
 Service?                         Virtualization?
Where did Cloud Computing come from?
Where did Cloud Computing come from?
Why? SCALE changes everything
The Industrial Revolution ...
... Revolutionized
The Digital Revolution ... Revolutionized
The Digital Revolution ... Revolutionized




                                  pt io n
                               ru e
                           di s s id
                                in
Fundamentals of the Disruption
       (            )
Generating power
Generating power at scale?
Power at scale
These are not the same thing




Enterprise-class          Utility grade
These are not the same thing




Enterprise-class          Utility grade
Cloud Computing is a new tool for ...




  Cloud
Computing
Cloud Computing is a new tool for ...
        ... enabling Cloud Datacenters



  Cloud           Cloud
Computing       Datacenters
Cloud Computing is a new tool for ...
         ... enabling Cloud Datacenters
        ... which deliver Cloud Services

  Cloud           Cloud                Cloud
Computing       Datacenters           Services
Enterprise Computing   vs. Cloud Computing




       Manual                Automated
Enterprise Computing    vs. Cloud Computing




       Manual                 Automated




     Local power             Utility power
 (average datacenter)     (cloud datacenter)
Cloud computing is a huge change to IT
What is the big deal?
 Labor       Server Mgmt Monthly      5-yr
 Costs           Ratio    Cost        Cost
 Average
                 100:1       $75.00   $4500
Enterprise
 Google        10,000:1       $0.75   $45
                   10-100x
                Labor Savings
What is the big deal?
  Labor      Server Mgmt Monthly      5-yr
  Costs          Ratio    Cost        Cost
 Average
                 100:1       $75.00   $4500
Enterprise
  Google       10,000:1       $0.75    $45
                   10-100x
                Labor Savings

2-10x H/W Savings           5-10x S/W Savings


                2-3x Power/
               Cooling Savings
Doing IT Yourself (DIY)?

Customers
 who DIY
Doing IT Yourself (DIY)?

Customers
 who DIY



       Early
     adopters –
    competitive
     advantage
Doing IT Yourself (DIY)?

            Peak adoption –
Customers    NO advantage
 who DIY



       Early
     adopters –
    competitive
     advantage
Doing IT Yourself (DIY)?

            Peak adoption –     Specialists provide
Customers    NO advantage        a ‘utility’ service
 who DIY



       Early
     adopters –
    competitive
     advantage
Doing IT Yourself (DIY)?

            Peak adoption –     Specialists provide
Customers    NO advantage        a ‘utility’ service
 who DIY



       Early
     adopters –
    competitive
     advantage
Doing IT Yourself (DIY)?

            Peak adoption –     Specialists provide
Customers    NO advantage        a ‘utility’ service
 who DIY



       Early
     adopters –
    competitive
     advantage
Doing IT Yourself (DIY)?

            Peak adoption –     Specialists provide
Customers    NO advantage        a ‘utility’ service
 who DIY



       Early
     adopters –
    competitive
     advantage
Doing IT Yourself (DIY)?

            Peak adoption –     Specialists provide
Customers    NO advantage        a ‘utility’ service
 who DIY



       Early
                                                 Mature
     adopters –
                                                  service
    competitive
                                                 provider
     advantage
                                                  market
Doing IT Yourself (DIY)?

            Peak adoption –     Specialists provide
Customers    NO advantage        a ‘utility’ service
 who DIY
                                                   We Are
                                                    Here

       Early
                                                 Mature
     adopters –
                                                  service
    competitive
                                                 provider
     advantage
                                                  market
Doing IT Yourself (DIY)?

Customers
 who DIY




    Early Adopters   Peak Adoption   Utility Market
Doing IT Yourself (DIY)?

Customers
 who DIY




     Competitive        No         Competitive
     Advantage       Advantage     Disadvantage
Utility Service Providers




  Power Grid
                                      Air Transport


                    Water Plant




Banking & Finance               Telecommunications
IT Vendors & Phased Disruption
IT Vendors & Phased Disruption




 Disruption
IT Vendors & Phased Disruption




 Disruption    Disruption
IT Vendors & Phased Disruption




 Disruption    Disruption        Disruption
There will be winners & losers ...




     In 4 Years:                In 4 Years:

    200K+ users              20M+ endusers
$500M annual revenue         >2M businesses
 100% annual growth
The IT landscape is being re-shaped
Companies are using the disruptive change to
     deliver business results TODAY

             “Thousands of servers in use [to
             deliver 99.999% uptime VOD service]”
Companies are using the disruptive change to
      deliver business results TODAY

               “Thousands of servers in use [to
               deliver 99.999% uptime VOD service]”


Actuarial processing
Companies are using the disruptive change to
      deliver business results TODAY

               “Thousands of servers in use [to
               deliver 99.999% uptime VOD service]”


Actuarial processing

                       Storage for mobile broadcasting
Companies are using the disruptive change to
      deliver business results TODAY

               “Thousands of servers in use [to
               deliver 99.999% uptime VOD service]”


Actuarial processing

                       Storage for mobile broadcasting


 Image processing
Key benefit #1:
Bottom Line Savings are 10-40x
Key benefit #2:
      Top Line Growth is Incalculable

Do things you couldn’t possibly do before
Key benefit #2:
      Top Line Growth is Incalculable

Do things you couldn’t possibly do before

                   Facebook app grows to
                   4,000 servers overnight
Key benefit #2:
          Top Line Growth is Incalculable

    Do things you couldn’t possibly do before

                       Facebook app grows to
                       4,000 servers overnight

Drug test lab in 5 mins (from 8wks)
Key benefit #2:
          Top Line Growth is Incalculable

    Do things you couldn’t possibly do before

                       Facebook app grows to
                       4,000 servers overnight

Drug test lab in 5 mins (from 8wks)

                      U.S.A. Electronic Retailer:
                      +25% revenue in 2 months
Korean Opportunities
(                          )
You have become a global economic power
GDP in $
You are a technology leader
You are a technology leader
You are a technology leader
You are a technology leader
You are a technology leader
You are a technology leader
Case Study




                In only 8 months ...




Private Cloud        Mobile Cloud      Public Cloud
Case Study




                In only 8 months ...
                                                T
                                              B !
                                             C n
                                                p e
                                              o

Private Cloud        Mobile Cloud      Public Cloud
KT’s Immediate Cloud Benefits (#1 & #2)

       CapEx
      Reduction
         (5x)
KT’s Immediate Cloud Benefits (#1 & #2)

       CapEx                     Time To
      Reduction                  Provision
         (5x)                      (50x)
How KT did it
How KT did it
How KT did it
How KT did it
How KT did it
How KT did it
How KT did it
Call to Arms
(Avoid disruption)
Call to Arms
      (Avoid disruption)

1. Embrace change
Call to Arms
      (Avoid disruption)

1. Embrace change
2. Use cloud technology NOW
Call to Arms
      (Avoid disruption)

1. Embrace change
2. Use cloud technology NOW
3. Educate yourselves
Call to Arms
        (Avoid disruption)

1.   Embrace change
2.   Use cloud technology NOW
3.   Educate yourselves
4.   Find cloud pioneers
Call to Arms
        (Avoid disruption)

1.   Embrace change
2.   Use cloud technology NOW
3.   Educate yourselves
4.   Find cloud pioneers
5.   Strategize on disrupting
Call to Arms
        (Avoid disruption)

1.   Embrace change
2.   Use cloud technology NOW
3.   Educate yourselves
4.   Find cloud pioneers
5.   Strategize on disrupting
6.   Execute
Summary




                     !

Disrupt, don’t be disrupted!

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Cloud Frontiers 2011

  • 1. Cloud Can Increase Korea’s Global Competitiveness Keynote - Cloud Frontiers 2011 Randy Bias, CEO,
  • 2. A Vision of Cloud Computing Fundamentals of the Disruption Korean Opportunities
  • 3. A Vision of Cloud Computing ( )
  • 4. What is Cloud Computing? On demand Self-service services? Web Apps? ? IT-as-a- Service? Virtualization?
  • 5. ... could it be even bigger change? On demand Self-service services? Web Apps? IT-as-a- Service? Virtualization?
  • 6. ... could it be even bigger change? On demand Self-service services? Web Apps? Revolution? Disruption? IT-as-a- Service? Virtualization?
  • 7. Where did Cloud Computing come from?
  • 8. Where did Cloud Computing come from?
  • 9. Why? SCALE changes everything
  • 12. The Digital Revolution ... Revolutionized
  • 13. The Digital Revolution ... Revolutionized pt io n ru e di s s id in
  • 14. Fundamentals of the Disruption ( )
  • 18. These are not the same thing Enterprise-class Utility grade
  • 19. These are not the same thing Enterprise-class Utility grade
  • 20. Cloud Computing is a new tool for ... Cloud Computing
  • 21. Cloud Computing is a new tool for ... ... enabling Cloud Datacenters Cloud Cloud Computing Datacenters
  • 22. Cloud Computing is a new tool for ... ... enabling Cloud Datacenters ... which deliver Cloud Services Cloud Cloud Cloud Computing Datacenters Services
  • 23. Enterprise Computing vs. Cloud Computing Manual Automated
  • 24. Enterprise Computing vs. Cloud Computing Manual Automated Local power Utility power (average datacenter) (cloud datacenter)
  • 25. Cloud computing is a huge change to IT
  • 26. What is the big deal? Labor Server Mgmt Monthly 5-yr Costs Ratio Cost Cost Average 100:1 $75.00 $4500 Enterprise Google 10,000:1 $0.75 $45 10-100x Labor Savings
  • 27. What is the big deal? Labor Server Mgmt Monthly 5-yr Costs Ratio Cost Cost Average 100:1 $75.00 $4500 Enterprise Google 10,000:1 $0.75 $45 10-100x Labor Savings 2-10x H/W Savings 5-10x S/W Savings 2-3x Power/ Cooling Savings
  • 28. Doing IT Yourself (DIY)? Customers who DIY
  • 29. Doing IT Yourself (DIY)? Customers who DIY Early adopters – competitive advantage
  • 30. Doing IT Yourself (DIY)? Peak adoption – Customers NO advantage who DIY Early adopters – competitive advantage
  • 31. Doing IT Yourself (DIY)? Peak adoption – Specialists provide Customers NO advantage a ‘utility’ service who DIY Early adopters – competitive advantage
  • 32. Doing IT Yourself (DIY)? Peak adoption – Specialists provide Customers NO advantage a ‘utility’ service who DIY Early adopters – competitive advantage
  • 33. Doing IT Yourself (DIY)? Peak adoption – Specialists provide Customers NO advantage a ‘utility’ service who DIY Early adopters – competitive advantage
  • 34. Doing IT Yourself (DIY)? Peak adoption – Specialists provide Customers NO advantage a ‘utility’ service who DIY Early adopters – competitive advantage
  • 35. Doing IT Yourself (DIY)? Peak adoption – Specialists provide Customers NO advantage a ‘utility’ service who DIY Early Mature adopters – service competitive provider advantage market
  • 36. Doing IT Yourself (DIY)? Peak adoption – Specialists provide Customers NO advantage a ‘utility’ service who DIY We Are Here Early Mature adopters – service competitive provider advantage market
  • 37. Doing IT Yourself (DIY)? Customers who DIY Early Adopters Peak Adoption Utility Market
  • 38. Doing IT Yourself (DIY)? Customers who DIY Competitive No Competitive Advantage Advantage Disadvantage
  • 39. Utility Service Providers Power Grid Air Transport Water Plant Banking & Finance Telecommunications
  • 40. IT Vendors & Phased Disruption
  • 41. IT Vendors & Phased Disruption Disruption
  • 42. IT Vendors & Phased Disruption Disruption Disruption
  • 43. IT Vendors & Phased Disruption Disruption Disruption Disruption
  • 44. There will be winners & losers ... In 4 Years: In 4 Years: 200K+ users 20M+ endusers $500M annual revenue >2M businesses 100% annual growth
  • 45. The IT landscape is being re-shaped
  • 46. Companies are using the disruptive change to deliver business results TODAY “Thousands of servers in use [to deliver 99.999% uptime VOD service]”
  • 47. Companies are using the disruptive change to deliver business results TODAY “Thousands of servers in use [to deliver 99.999% uptime VOD service]” Actuarial processing
  • 48. Companies are using the disruptive change to deliver business results TODAY “Thousands of servers in use [to deliver 99.999% uptime VOD service]” Actuarial processing Storage for mobile broadcasting
  • 49. Companies are using the disruptive change to deliver business results TODAY “Thousands of servers in use [to deliver 99.999% uptime VOD service]” Actuarial processing Storage for mobile broadcasting Image processing
  • 50. Key benefit #1: Bottom Line Savings are 10-40x
  • 51. Key benefit #2: Top Line Growth is Incalculable Do things you couldn’t possibly do before
  • 52. Key benefit #2: Top Line Growth is Incalculable Do things you couldn’t possibly do before Facebook app grows to 4,000 servers overnight
  • 53. Key benefit #2: Top Line Growth is Incalculable Do things you couldn’t possibly do before Facebook app grows to 4,000 servers overnight Drug test lab in 5 mins (from 8wks)
  • 54. Key benefit #2: Top Line Growth is Incalculable Do things you couldn’t possibly do before Facebook app grows to 4,000 servers overnight Drug test lab in 5 mins (from 8wks) U.S.A. Electronic Retailer: +25% revenue in 2 months
  • 56. You have become a global economic power GDP in $
  • 57. You are a technology leader
  • 58. You are a technology leader
  • 59. You are a technology leader
  • 60. You are a technology leader
  • 61. You are a technology leader
  • 62. You are a technology leader
  • 63. Case Study In only 8 months ... Private Cloud Mobile Cloud Public Cloud
  • 64. Case Study In only 8 months ... T B ! C n p e o Private Cloud Mobile Cloud Public Cloud
  • 65. KT’s Immediate Cloud Benefits (#1 & #2) CapEx Reduction (5x)
  • 66. KT’s Immediate Cloud Benefits (#1 & #2) CapEx Time To Reduction Provision (5x) (50x)
  • 74. Call to Arms (Avoid disruption)
  • 75. Call to Arms (Avoid disruption) 1. Embrace change
  • 76. Call to Arms (Avoid disruption) 1. Embrace change 2. Use cloud technology NOW
  • 77. Call to Arms (Avoid disruption) 1. Embrace change 2. Use cloud technology NOW 3. Educate yourselves
  • 78. Call to Arms (Avoid disruption) 1. Embrace change 2. Use cloud technology NOW 3. Educate yourselves 4. Find cloud pioneers
  • 79. Call to Arms (Avoid disruption) 1. Embrace change 2. Use cloud technology NOW 3. Educate yourselves 4. Find cloud pioneers 5. Strategize on disrupting
  • 80. Call to Arms (Avoid disruption) 1. Embrace change 2. Use cloud technology NOW 3. Educate yourselves 4. Find cloud pioneers 5. Strategize on disrupting 6. Execute
  • 81. Summary ! Disrupt, don’t be disrupted!