share this -- is all companies and that being information companies. all companies and of being software companies. i just did he know speech for a large german car company that you may know, that is clearly when you start realizing what they are trying to do, right -- it is really can we use all this cloud technology to takeoff structures down and across this down so now, i can change and 8% spent on a bunch of stuff that other people can go due to 80% i get to build applications, which power a very different experience. you think about what the car of the future might look like, it is a computer with four wheels, right? that is what it is. what they start to do with it, etc., is completely different. i'm talking about what we all conceptualize as a manufacturer. when you ask the question what will happen in the future? it is harnessing this technology to really deliver a service economy, and the companies that do this, the guys that figure

this out are going to be big winners, and they are going to change the way we think of them, the way we relate to them, the way we buy from them, all of that. that is what the future holds. i see the floor. >> thank you. i think the best questions are yet to come, and we are going to turn it over to the audience. >> we would like to remind our listening and viewing audience that this is a program with the commonwealth club of california on the future of cloud computing. our thanks to our distinguished panel for their comments here today. now, we open the floor for a q&a session. we will be passing around a microphone, so if you have questions, please raise your hand and speak into the microphone. >> i have a key question about the backup plan. you mentioned the super bowl earlier. what is the backup plan in the

unlikely catastrophic event of the disabling of the system? solar storm or whatever. >> there are lots of things that can go wrong. the rights can hit the planet, and the things go dark, and then we fix it. in general, the technology you are talking about is something which is broadly called cloud bursting, where essentially, is used by google and other folks, there's not one computer called google.com. there's a basilian sitting behind a thing. there is a concept called load balancing, and it has been augmented of late with the ability to dynamically spinoff new instances of server applications in response to spikes in demand. the general concept called cloud bursting allows you to do that across multiple cloud vendors, so you could do it across amazon and various other people say you could get geographic diversity and so on. people doing this extremely well, for example, would be

netflix. many of you in this room i'm sure use the netflix. what they did is dynamically throw what is this is as more and more people click on movies that they want to watch. so then what they are doing is as the need scales, they then have the ability -- they pay them, and, of course, it drops off as soon as the need drops off as well. so they end up essentially paying for average demand. the technology is widely deployed around the world. >> as kind of a follow-up, individuals often use cloud services for backing up their computers. are we about to see people using their computers to back up their clout services to guarantee that they hold on to their data? >> you are at the tip of a very interesting iceberg. go 100,000 miles in space and

look down at the earth. we are still driving more wavelength down. there is no problem distributing content out to users. what we have a fundamental problem with is distribution of power. power is dominating in terms of distribution networks q one of the reasons why it does not make sense is because you are at the end of the tree, a long way from distribution, a lot of transmission loss. the data centers move to where power gets generated. what is the next hardest thing to move? big data. did it is still really hard to move, even though we have lots of wavelets. that says that the application moves to the data is. if you think about facebook and google and all those folks, they build data center's right were the power is generated. typically near hydro plants and so on. what you find is that more and more applications will move to where the data is. moving those big chunks of data is very difficult. in terms of enterprises in the cloud, there is certainly no

reason to suspect that the systems used by cloud vendors like amazon are not capable of geographic replication and redundancy. it is absolutely the case that someone like netflix, for example, could survive an outage of two simultaneous amazon did a centers through geographic redundancy and so on. this stuff exists, and the technology exists within the cloud providers to make sure that once your data gets there, it is not going away. it is just not a cloud provider solution. most enterprises will have things called disaster recovery, where they will keep all their critical data completely synchronized so that if one coast gets hit by an earthquake or terrorist attack, you have the other coast where you can get your data. it is completely synchronized, always available, on demand. geographically diverse disaster recovery solutions have been in

place for some time, and they actually do allow for secure data storage. >> i think that for the individual consumer and home user, this storage in the cloud and backing up your personal computer in the cloud has been burgeoning of late because people want to have the ability to store their files securely, but the reason why, to answer your question, is why do they continue to still backed up their clout back of solution onto a usb stick or on to their own pc is people still have to get comfortable with the idea of clout security, that the data truly is secure and they're comfortable with letting go. people still not quite comfortable with that concept yet. as people become more and more confident and more and more comfortable with the concept of data being safe, we will still

have people, and we will still have instances where people want their data next to them, where they feel comfortable, where they feel safe and confident that their data is secure. >> if i were purchasing services from a cloud vendor, i would mandate that all data at risk is encrypted using keys that i own, that i provide when it is processed for me, and there is no excuse for anybody not doing this. the technology exists. so it comes down to the probability that a bad guy could go and guess relocation. in amazon web services, you have more than 3.5 billion objects. they have to know which one to go for it here that have to break your access. then they have to break the description on the of jets. the probability of stealing your data and getting away with an attack is vanishingly small. >> i think you address one of my concerns, which was the security of my data out on the cloud, but you raised a new question -- who

owns my data? what if i do want it to go away? >> there are very challenging concerns. certainly, governed by state boundaries. for example, numerous canadians do not want their data in american dissenters. under a land the vessels, that can be subject to inspection and seizure. all the regulations relate to national boundaries there as well. a cloud providers actually end up having to meet numerous diverse regulatory requirements related to where data may resign and how it may be encrypted. there are different purchase centers for different christian center's and countries -- there are different encryption centers for different regions and countries. i think amazon wishes they could make it go away the same way they imagine the sales tax would go away sunday. [laughter] >> but is it clear that i own my data?

>> it is clear that you own your data, but it is not clear that somebody with the opprobrious search and seizure warrants cannot just make off with it, too. and, of course, you know, here is the scary one. the fbi says there is an attack coming out of those few racks over there, and they walked out with several companies entire computer set up just because some guy in one of those was doing a bad thing. that is scary. >> unfortunately, we have time for only one last question. weber has the microphone, please. then maybe it is a mistake, but i have the microphone. i came to this lecture trying to find a definition of what cloud computing is. maybe i understand a little better, but i still do not have its in the simple terminology

that i understand. my other question is from my point of view as a user of computing services, i have recently had the experience with a couple of banks going through a total change of their website, which caused me no end of aggravation to try to continue my accessing of my data, and i had the feeling, and i think you kind of touched on this, that for maybe financial reasons or because you technology people are so influential in the world you convinced these banks they had to do this, it just really made my life miserable for a couple of weeks trying to figure out how to use their new system. i mean, it seems to me that -- you know, i had the impression that technology people are sort of making work for themselves by

influencing institutions that they need to change what they have already in place. i still go by the old model -- if it is not broken, do not fix it. so i am opposing these questions to the senate panel. >> those are great observations. i am in my mid-40's by now, and there are programming languages used regularly that just did not exist five years ago. when you hear these guys talk, it is like gobbledygook to me. you get old with your music. you get old with your skills sets. it is just the way it is. because we are a technology- driven society, and we have completely inverted the traditional way back societies were built when -- where when you were older, what you learned was survival skill, and you were right. that is the problem.

the young guys are right, and the old guys take it in the net. cloud computing -- let me try a simple one for you. used to be in the old days that everybody had their own electricity generating plant. people would generate electricity locally for their own production means for their own factory. that got turned into a utility. the economics and study of that is very interesting. there's a fabulous book called "the big switch" which basically tracks that history. think of what clout is doing to computing is being analogous. instead of having to own and run your own software and hardware and computer systems, these things simply become services that you acquired by some horribly complicated plug. so it becomes viable economically -- the economics are compelling.

you can consume by plugging in. you have to plug, yes, it is still the case that you know too much, but it is really that, that turning computation into a utility that can be consumed as opposed to requiring human to surround previous manifestations of the technology. >> i thank the panel for coming here today. we also thank our audience here for those listening and viewing. now, this meeting of the commonwealth club of california commemorating its 108th year of discussion is adjourned. [applause]

>> i never thought i would be at

a press conference in the city surrounded by a bunch of pickup trucks. here we are. these are no average pickup trucks. these have solid green credentials. san francisco has a long history of groundbreaking initiatives an enlargement of victories. this is where the latest bring innovations have been, whether it is pursuing our zero ways to goals by 2020, when the reducing toxics in san francisco, whether it is becoming the electric vehicle capital of the u.s., this is where green innovation happens. and we practice what we preach in san francisco. every city of san francisco's department is required to develop a department action plan annually, which inventory their own emissions and sets common action targets for the department. this process engages departments that do not typically considered themselves and are mentally focused and effectively makes

the link between in one of the responsibility and the financial bottom line the efficiency. requiring each city department to be responsible for the carbon footprint helps integrate the city's climate work into all levels of organizational functioning and incentivizes all employees to participate in this process. the program that we are going to announce today will help make our individual departments sweet -- more sustainable and help us meet the goals from our climate action plans. additionally, plugging hybrid technology and its electric vehicles represent a good start towards achieving the new fuel efficiency standards that were just announced by president obama, a 54.5 miles to the gallon. this was announced when president obama noted, just as cars will go farther on a gallon of gas, our economy move will farther on a barrel of oil. when we achieve the 54.5 mpg

target, it will reduce consumption from our vehicles by 40% and cut in half the amount of greenhouse gas solutions coming out of our exhaust pipe. the electric vehicles, as you may well now, building up the electric vehicle capital here in san francisco is one of mayor lee's top anbar mental priorities. we are honored to be partnering with chrysler and the u.s. department of energy to push forward with yet another dimension of electric transportation. but first, without further ado, i would like to introduce chrysler's senior manager to tell you more about the program and to make a special presentation to mayor lee. >> good afternoon, everybody. thank you for the warm welcome, mr. mayor. beautiful weather, beautiful city. on behalf of chrysler, i am

proud to present the mayor and the city of san francisco with the supply and hybrid trucks. these trucks are part of a grant received from the department of energy to demonstrate technology and further enhance the ability of engineering organizations to implement this technology and future applications to be a part of the green energy that chrysler and bodies and to support the recently announced fuel economy rolling. we are proud to be in partnership with the mayor, and we are looking forward to work with your team over the next few years to demonstrate the technology and to learn from how they will dry data and further enhance the ability to demonstrate these applications. thank you very much. i look forward to working with your team. [applause]

>> thank you. we are just commenting, as your walking up, he has been in the auto industry for quite some years. i have been working in government for some years and we are both tried to find our youth in what we do. it is need to work on something that is fun, that is great for our country, that is very much a part of this movement that the whole country is not interested in, getting off of foreign oil and making sure we do something for our environment. this is fun because you are looking at 14 pickup trucks that have in them a hemi engine, but powered by electricity. these 14 pickup trucks will be lent to us for the next three years or free, thanks to our

department of energy and their grants with chrysler's own contributions put together to allow for our city to devote one of the few cities organized across this. i know sacramento will have some of this. other states, there is only less than a handful of other states participating in this nice experiment. for san francisco, we are probably going to be one of the hilliest cities that have this opportunity over the next three years to test these electric trucks in the most hardened ways. in other words, we are going to have department of public work'' picking up trash in these vehicles, the bureau of engineering to be looking at and traveling to all parts of the city in these vehicles, managing the projects in this city, thanks to our city engineer.

different departments under our acting city administrator, including, interestingly enough, animal care and control. they will be caring for stray animals, making sure they are safely transported, and the day from our streets and into shelters, and so forth. the puc, police department, real-estate department, a multitude of some 14 departments, that will have the chance to use these trucks and the way in which they operate. the very essence of city fleet operations. so i want to thank chrysler for allowing sanfrancisco to experiment with our department of energy, and also while we are experimenting with this, we have uc-davis as a partner. we have the director of our plugged in demonstration

project. working together with the transportation electrification institute here. with their corporations, getting the data about how these vehicles are used, how they are tested, whether they can go up hills as efficiently, bringing up the cargo and animals and tool that dpw will use, various departments inspecting buildings, streets, all of the different uses for a city fleet, all on the dime of the department of energy because they want to see these the electric vehicle properly used, the way that we use our fleet generally now. ali, they will be replacing the fleet that we are using now and saving that money. and then do what i do, i keep in mind -- i do not ever want to

run out of the electric power. as i come to city hall, i asked my staff, plug it in. i try not to use any oil so that we can try to do this in the cleanest way possible. that makes it fun. it is a bit of a game that i play with our staff, but that is a game that everyone is playing with these cars. making sure they can go the whole day without using a drop of oil. that makes it fun and challenging and keeps my mind up to use the vehicles in the proper way. it is a corporate for san francisco to do this. we declared some two years ago, in cooperation with all nine counties in the bay area, we want to be the rv -- ev capital of the world. we are doing everything necessary to make sure that we are. with the cooperation of great

cities like san jose and oakland, san jose and alameda counties, we are already putting in the anxiety-recharging stations all over the bay area. in fact, the airport already has 14 charges already installed at the airport, and we have, by the end of the summer, some 43 charging stations in our garages that are already being done. by the end of the year, working together with charge. america, coolant technologies, we will have 100 charging station within san francisco already installed. so you will not have any anxiety. one of those is in the mayor's crotch, and that will be installed in the next couple of weeks. these fast charter will be out there in a public setting.

with charge. america, in the bay area, they are doing charging stations for the residents and another in the public sector for the whole bay area. so we're getting rid of that anxiety quickly and making sure that all of the automobile manufacturers, including chrysler, can develop these beat -- vehicle the best they can, use the data, test pilot them, but ultimately, i think we will see companies like chrysler bring to market an electric vehicles for all of our citizens to use, and every city fleet is doing so. we are working with the company throughout the bay area. we are all experimenting on the different flight uses of this. this is the first time i have seen or course trucks -- really, the dpw's of the world, puc's of

the world, all of the utility- driven departments in our city, to carry equipment, cargo, transport trash and all the other thing that we do, these are the workhorses. this is going to be a great test and use of federal funding. i have to say -- i have to make sure i say this. i am happy for this moment because president obama just signed this very important debt ceiling settlement with congress. the senate and house voted on it. leader pelosi was extremely grave in her performance, getting a number of democrats to sign this. i would be looking sad, even in light of this great news, we have to keep this country moving forward. we will not have the opportunity to use the technology that chrysler is offering if we are not strong in our economics. so we are doing it right. now that we have the debt ceiling behind us, we can move

forward on all these programs. i want to thank the department of the environment. alan, you are gracious in your remarks, but the department of environment keeps me up with great ideas, keeps me talking constantly about one beacon do as a city, how we can contribute to our environment. the department of the in gardening keeps me on my toes to say what can we create? so i want to thank chrysler, the department of energy, for their grants, the uc-davis, their work with the electrification transportation education program, to make sure that we test these things correctly. if we test them right, if we use our knowledge and experience the data here, we are going to have the best performing automobiles developed by the companies that have a great interest in saving us from oil and making sure that our country moves in the right

direction. this is our new economy, one that i am proud to say we are doing across major cities across the country. but we in san francisco want to lead the way. we want to be the experimenters, the ones that push out this idea that we can do it in the bay area. if we do it here, it sends a trend across the country that they can do it elsewhere. get ourselves off of oil, into a more pollution-free society. i just thank all the people working together on this. it takes everybody working together to line up not only our educational institution with us, car manufacturers with the stimulus package fund from the government, and with our own local leaders to make sure we are doing the right thing. again, thank you very much for using your many years of

leadership in the auto industry to bring forth new technology, new ways of doing things. thank you for your partnership with our department of the environment as well and department of energy. [applause] >> we would like to take questions from the press regarding the electric vehicles, but i wanted to mention the sound system is being powered off of the battery from one of these trucks. so this is emission-free power from the public utility commission. all these trucks are equipped with an extra battery to run equipment. we want to let the media know there is an opportunity to do test runs in these trucks. there are two other individuals available for questions. we have a director of plug in vehicle research center at uc- davis. we also have jason connolly from the department ofrg