again, i am excited to be part of this. [applause] >> thank you again to all of the variety of members and advocates and developers that are here today. many of you know that affordable housing has long been one of my top priorities. i knew this year that housing would be a big issue. it was not just low-income families and individuals coming to our offices. it was writing e-mails about how hard it was to continue to live here in san francisco when middle income and even middle upper income tenants and residents in the south of market in the mission were e-mail in our office and telling us how tremendously hard it was for them to remain in the city. i knew this was an issue we would have to begin to tackle. last year ended on a down note with the abolishment of

redevelopment where we lost our only permanent stream for affordable housing in the state of california. it is great to be part of a city that is taking a proactive step only a week later to state that we are all going to work together to build housing for everyone in san francisco. i look forward to this work as well. working my colleagues, i know the ones who are standing behind me have also said housing is a priority for them. we need to make sure we continue to keep the city diverse and livable for everyone. thank you. [applause] >> reverence --rev. fong and reverend mckay were here when we started this. we will need your prayers as we continue forward. rev. fong, i know you have been such a committed person. we ask you to bless us here and

encourage us to do well on these efforts. of course, supervisor scott wiener. thank you for being here. supervisor wiener: thank you. i am really excited about what we are doing. what i want to really stress is the critical importance of focusing on moderate and middle- income housing and making sure it does not get lost in the shuffle. we do a lot in this city on affordable housing, and we talk about workforce housing, moderate income housing, middle- income housing a lot. to be perfectly honest, we do not always put our money where our mouth is, and of course, we need to do more and more on low- income housing, but we have, i think, in the past, sort of but moderate middle-income housing to the side and not really move

forward in a substantive way on that. it going through this process, i intend to hold our city accountable to making sure we are actually taking care of our middle income residents and families in this city because we are in danger of falling out our middle-class in this city, and indeed to prevent that from happening. i intend to work closely with the mayor, my colleagues, and the mayor's office of housing to make sure that we are having a hell looked -- housing policy that is inclusive of everyone and that we continue have a thriving middle class in san francisco. thank you. [applause] mayor lee: thank you, supervisor. i know there would be other supervisors that would show up, but for the conflict of interest. i think with this large number of supervisors, there will be others that will be release supportive of this effort. thank you for being here. i may have been in haste, but i will ask olson lead to come up,

who was a designated person to head this effort to. -- effort. >> this is a great day. i think my emotions on this day are so different than december 29. as a former redevelopment deploy e -- employee and going to that website and seeing the supreme court decision and wondering what we will do in san francisco, and coming to this even when the mayor is taking the lead and solving the problem and taking the initiative is just a great, great event. i cannot tell you how much my colleagues in the state of california are envious. unfortunately, through the

governor's decision, there was chaos in the affordable housing community throughout california. this project is a redevelopment project which will not be funded without tax increment, and that tax increment provided $40 million a year towards affordable housing. one of his questions to me was, "what are you going to do now?" i think we have the answer. thank you, for taking the leadership on this. we now are going forward and trying to create this housing trust fund. we do not have a lot of specifics at this point. that is why we have a working

group. we will look at all the possible resources that may go into a housing trust fund and look at sort of the best ideas of other housing trust funds in the country. we will also look at how we're going to use this in a san francisco way. the federal government created a housing trust fund and never funded it. the state government had a housing trust fund program that has really been sort of fair to middling to say the best. we're going to create a housing trust fund in san francisco that once again shows that san francisco is the leader in affordable housing development and finance. i really appreciate the mayor giving me this responsibility to work with all of you, both in front of me and behind me, to shepherd this effort through. the mayor clearly believes in the big tent. this is probably the size of the first working group meeting.

we will look and receive all sorts of ideas because i think we really, truly want to take this opportunity because it is going to be a permanent source. it is not just a one or two-year program. this is a permanent program, and we are going to do it, and we are going to do it right. again, i want to thank the mayor for this opportunity to lead this effort. [applause] >> ok, this one is for mayor lee. it is more of a chart, but it is an illustration as well. "time" magazine said 2011 was the year of the protester, right? i want 2012 to be the year of collaboration and getting it done. this is new. this is different. we are talking about the super bowl of life. we are in the playoffs already. we need offense, defense, protesters, advocates, a business community, religious

leaders. you know, we cannot just pray about it. we have to put some of our money where our mouth is. we need san francisco to pull together to deal with the super bowl of life issue, which is housing. why were people protesting last year? there is no housing. we have to do something. the state let us behind. the feds did, too, but san francisco was going to find a way. i want to give a big hand to the coach, the quarterback. we are calling the play now, right? san francisco, we want to score for affordable and moderate rate housing. thank you. this is a beautiful illustration of that. the one and only rev. dr. mcrae. a brother, an advocate. he can do better than i could. >> the mayor used the word

promise. for many in the religious community, we live with the promise. the promise is that the cities will be repaired and that the former devastation will be reversed. the mayor said we come together because of a promise. i stand with brother roger's. his mother five years and years in this community for the promise -- this project took many years, many iterations, did it not? it took the whole community working together because we believed in the promise that san francisco will be repaired. san francisco will go into the future, and san francisco will remain a model city for all of these united states. mayor lee, thank you. because you gave us a promise

last sunday afternoon that this was going to be an item. before i could almost get home, the item is coming to fruition. because we are taking the first step. thank you. as i say all of the time, maybe lord bless you and keep you. maybe lord make his face to shine upon you and be gracious unto you. maybe lord lift up his countenance upon you and give you peace. thank you. [applause] >> thank you, reverend. i know we are on the verge of a very memorable and promise- filled weekend. martin luther king weekend as well where we renew those promises all the time, but in san francisco, it is also about delivering on those promises. i know we have been delivering on a lot of stuff, not only for investors, but also things that have been working with everybody

to produce housing. oz, come on up. >> thanks. sunday, the mayor talked about the really important things in san francisco. he said jobs, jobs, jobs. it is great to read in the paper about salesforce leasing 300,000 square feet. it is great to hear them leasing 300 million square feet. 400,000 square feet translates into 1000 units of needed campus -- needed housing. 2 million square feet is 5000 units of housing. we have an incredibly difficult problem supplying housing. we need 20,000 units of housing over the next 10 years. at a minimum. more like 30,000 with the growth in jobs if the mayor has his way. this is a very urgent, needed

process. i am very optimistic that we will all be able to work together and come up with a program that will deliver housing and affordable housing for san francisco. [applause] mayor lee: let me be it -- let me reiterate by closing that there is no prescribed solution going into this process. we have to be open to everybody's input. i make that commitment that we are going to open ourselves up. there's nothing to say that any idea coming forward cannot be a good one but also be integrated with everybody else's idea. i want to signal that to everyone that is going to participate and watch as this effort continues, but at the end of the day, we have to act, and we have to get an agreement, and we have to produce housing that is affordable to all in comes in san francisco. we must do that, and we must honor an opportunity that i

think the voters are giving all of us, that we have to come up with solutions and come up with them quickly in a timely fashion. with that, i charge everybody here today -- put your best effort forward. be honest. be delivered of. the collaborative -- be deliberative. be collaborative. let's get it done. thank you very much. [applause]

>> i am the chair of the club of science and technology member- led forum. i'm your chair for today. we also welcome our listening and viewing audience, and we invite everyone to visit us online. now, it is my pleasure to introduce our distinguished moderator who helped us all together today's panel. he is a technology veteran with operating in investing experience in technology businesses and the ceo of a premier north american publication with data center

facilities, virtual private clouds, managed hosted platforms in san francisco, los angeles, and a nationwide high- performance backbone. it is also the managing partner of excellent capital, a private equity firm investing in growth stage companies. previously, was the co-founder of centera, the leading provider of wireless base stations. prior to that, he worked at national semiconductor, where he led the development and commercialization of internet networking products. he has been -- he has a degree in management from stanford, an

ms from the university of central florida, and a degree in electrical engineering from the indian institute technology, bombay. he has authored numerous publications and has over 50 u.s. patents. >> thank you for organizing this panel discussion, and thank you, everybody, for graciously being here today. it is my great honor to introduce an incredibly distinguished panel of industrial luminaries. let me start with timothy, simon, and jeanette. tim is a professor at the stanford business school where he teaches a very popular class on this service via in fact, i have taken your class, and you bring in some incredible speakers and make it very entertaining. jim also has a distinguished

career in the private sector. he was the president of oracle's on demand service, which by some records was the first online on demand service. cloud computing has a lot of fathers, but tim is often called the grandfather of cloud computing because of that endeavor. but tim is also an investor in a cloud computing companies, and author of some very exciting cloud computing books. thank you for being here. next, we have simon crosby. he is an entrepreneur, who has just launched his latest company, and he might tell us a little bit about it. before that, almost just about a month ago, he was the cto of citrix systems. he got there by selling his last company to them. that company has developed some of the key virtualization

technologies, which enable the cloud. he made a big contribution. thank you for that. last but definitely not least, we have jeanette tomlinson, the cto of our very own, dear city of santa francisco -- gina, and sen. she has had a very daunting task of taking the legacy infrastructure of the city and moving that to a professional data center. but also, setting up a virtual private cloud and making a foray into the public cloud. she offers a unique perspective as a large government user on cloud computing. she was also the cio of the san

francisco municipal transport station at 40, and she was also managing clorox's data centers previously. thank you for being here. with so much brainpower and prospective in this room, i will actually ask each of our panelists to take four or five minutes and give us a landscape of where you think of computing is today and where you see it going. am standing here with these microphones makes you feel like what rupert murdoch must have felt like this morning. i have no direct knowledge of the cloud. [laughter] let me make a small correction since my academic colleagues -- you're so sensitive to this. i am lecturer at stanford university, not a professor. that is another level of this conversation teary let me extend the conversation a little bit. one of the things that it was after i left or go, i taught for many years at stanford and talk, as i told the kids, real stuff.

i started a class on cloud computing. three years ago, i started a class at the university in beijing as well on this subject because i feel it is really important. we are in my opinion in the second year of a 20-year cycle that is no different than the client server cycle that happened last time around, and i think education is an important component of this. so i'm going to take my four or five minutes to educate you guys a little bit on what is this thing we call cloud computing. i'm going to try uses much plain english as i can, leave all the technical buzzwords aside, and try to eliminate -- illuminate for you what is happening. fundamentally, is an economic thing that is happening, and that is what has always driven technologies economics. i will get to that in a minute. i do a lot of public speaking. i was counting today because i had to do something this morning. over the past six months, i have talked to 5000 people about cloud computing.

what i've tried to do with them and what i've tried to do with you is tried to explain cloud computing in a way you could explain to your facebook friends. [laughter] let me start with we all use cloud computing. we all use consumer application clout services. twitter, facebook, ebay, google, amazon, etc., you are using consumer application clout services. just so we realize how far we have transition, i was with a stanford did about two months ago, and i'm giving her the lecture on what is cloud computing, and i start that way. i say once upon a time, consumer applications used to get installed on your pc and update and all that, as she looks at me and said, "i've heard of this thing. isn't it called a floppy disk?" [laughter] what many of you guys probably do not know is on the business application front, this has similarly happen in a very different way. nearly every business

application -- when i talk about business applications, and talking about financial customer relationships systems, purchasing, hr, web analytics, all the software business is used to automate their businesses. what you may not know is in the past 10 years, every business application software company which has gone public has been delivered as a cloud service. nobody does it in the new world the old way anymore. is all delivered as a cloud service. this ranges from -- many of you are in san francisco. you know who salesforce is. they have been a huge leader in this. even in the whole bay area. you have netsuite. as i said, nearly everyone. i will give you one example, which you all are probably familiar with, which you will think is an odd example, which is opentable. i'm guessing because san

francisco is ground zero, right? on the one hand, you see an open table as a consumer application cloud service, right? you go on, reserve restaurant space, right? it is free. the other side is a business application. they are selling to restaurants. software to help them increase the number of people. that has happened really within the past 10 years. as i said, every application. increasingly, what has happened is highly specialized applications. i will give you one example of that. dealer track. they actually do loan origination software for automotive loans. today, basically 80% of all the loans in the united states are processed through their software. we will see much more of this. we want to talk about not as public companies, tons of this.

all of these guys uses the original cloud service. a lot of people have asked me why we call it a cloud. what does this come from? it is pretty simple. in the old days of client-server computing -- some of us were around them -- we would draw a picture of a pc, a picture of a unix server, and then a picture of a little clout in between. mostly because none of us understood how networks work. for the old folks in the room, you may remember certain words. this is all communication technology developed for corporations to build their own networks. that sounds like crazy talk today, right? nobody does that anymore. everybody is using ip, mpls- based networks. that is the network cloud. the network guys realize that in order to build a network

service, they had to put these things called switches and routers in a room that had high quality power, guard dogs out front, and not located on a fault line, right? since the advent of data centers. many companies enter into the market. it is not a trivial market to enter. the cost of building these things, by the way, is $1,000 per square foot, which is expensive even by california standards. cost of power dominates this. this has been an interesting space for a variety of reasons, and i will leave it there, but datacenter clouds services is the other component being delivered, right? finally, i will introduce you to last things. first is something that have been very innovative about five years ago when jeff bezos said he would deliver computers and storage as a cloud service. everybody thought that he was

crazy. like why the hell are you doing this? oh, can i say that? why are you doing this, right? they have not released public numbers, but their computers and storage class of service at this point in time is right on -- widely believed to be added billion dollars run rate in five years, which is meteoric growth in this business, which is what basically everybody and their brother has entered into this marketplace. from the little guys, people you have probably never heard of all the way to the big boys in the room like microsoft, etc. we have not seen the end of this story. by the way, for applications, they are very unique to some specific need. when you talk about computers and storage, everyone of us uses it. compute and storage clouds services. the last two things that are happening -- and this is very new right now -- is software development clouds services.

for those of you in the room who aspire to or will have built software, building software in a world where the amount of time from the time i come up with the idea to the time is running in production is measured in days or weeks and not years, right? the whole development infrastructure completely different, right? and how i go about doing that. this is a very nascent space at this stage. force.com has been doing stuff here. lots and lots of stuff happening here. by the way, this is going to ignite the whole thing. that is what happened last time. the guy who ignited client server was a developer peter last thing -- operations management. you may never have managed -- she can say this. you manage applications, you have to manage the security, availability, performance, changes, problems in that software that you bought.

you can choose to do that with manual labor, which is painful and very expensive, or you can start to use software to help you do that. that has been going on for years in operations management software. what is new happening now is all the software is being delivered as a cloud service. i could give you a very simple example. once upon a time, if you wanted to make sure you have no spam on your side, you've got spam filtering software, installed it on your pc, managed it here today, nobody does that. this space is enormous, and it is just -- it has just started up. across the board -- i will end by saying we -- as i said, we are in year two of a 20-year cycle. it is no different than what we saw with client-server. in fact, for the old people in the room, and i am one of them, i will tell you i have heard all the same things we say during that era.

people would say you are never going to want to run on unix. it is not scalable. it is not reliable. you'd never want to what -- run on oracle. it is not secure, reliable. for the technical people in the room, was unix a technologically better system? was oracle better than db2 technologically? the answer i will tell you is no. what they were were economically better. the massive difference in the economics of this, which has driven every stage of computing here, and that is what is going to drive this forward. i will end by letting you -- if there's one thing i want you to walk away with, i am going to tell you a little story, and i'm going to pass it back. as i said, i teach a class in beijing, and the amazon boys are very nice to me. they gave me $3,000 worth of computers and storage, so i showed