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 up in class and said, "you get $3,000 of computer and storage." turns out that buys you about 2 1/2 years of a server, you can pick northern california, virginia, ireland, right? most of the kids in the room are looking at me saying that it is kind of boring. they can get a server in beijing. what difference does it make year or $3,000 buys 10,000 computers for 30 minutes. nobody has ever been given 10,000 computers for 30 minutes for $3,000. it is in the question that they looked at me at that stage and went, "what would i do with that?"

that is the seat of the next step. there are lots of examples already happening around us, but this is the magic. as soon as the smart kids out there start figuring out what you do, we ignite this thing with a rocket ship. this has nothing to do with total cost of ownership or any of that. it has to do with being able to do things we economically could never do before. i will conclude i see the floor. >> thank you, tim. simon. >> well, now you know all about how computing. [laughter] let me give you a slightly different angle. i think of the cloud as being roughly categorized into two worlds. there is the clout as envisaged and manifested within the enterprise, which includes the city of santa francisco. large organizations of people who have i.t. needs. then there is another kind of clout, which is the cloud that is in your pockets, which is most of what jim spoke to. everyone of us walked into our job every day with a cloud in

our pocket, okay? that is the apps that sit on your smart device. you are driving cloud adoption far faster than enterprise i.t. can adopt anything. actually, most enterprise i.t. shops since 2003, if you are lucky. we are delighted with this experience, delighted to innovate upon, and that is where you see all this amazing innovation on top of new form factor devices like tablets and smartphones, and yet, the real world, which is the world in which we live -- absolutely sucks from a user experience. we are in this horrible position whereby we as consumers are driving this incredible rate of change for our enterprise employers, and while you might

be quite happy to publish anything about yourself and your family on facebook and twitter and anything else he might choose to do it, the government is definitely not happy with you putting corporate staff or government stuff up there as well. so we as consumers are driving this phenomenal rate of change. the growth rate in the public cloud market to 60% or 70% just to the server count. certainly north of 100% per year in terms of bandwidth requirements for the public internet right now. so we are consuming things, and that is all fab here the problem is that we as humans in the rest of our lives actually deal with today's enterprise applications. none of them run on a cloud. they are subject to regulatory compliance. your desktop has nothing to do with the clout at all. the challenge is that cloud really is leading this enormous change on the enterprise i.t.

environment. let's call a broadly the consumerization of i.t. the problem that brings is that while you're happily wandering into the enterprise every day with your klauer in your pocket, a whole bunch of that actually belongs to somebody else. it belongs to another interest. maybe multiple interests. so your personal consumption of cloud is quite literally a threat to your employer. let's be very clear. the very recent publicized attacks against rsa were the key seeds for the technology was stolen. the attacks on google. the attacks published just this week against u.s. defense interests. were initiated from users like you. ok? humans like you to click on a url, an attachment in e-mail,

and let the bad guys in. for most of the enterprise world, the public cloud is nothing more than a menace. yet, we see it's clear benefits. we see its enormous cost advantages. we see all these wonderful things that tin told you about. so the challenge is to try and evolve what today is a process built around people. people and process and regulation that tries to keep us safe, tries to run our economy, and translate it into something that is more efficient, that takes advantage in evolution or revolution of technology, arguably, but does not hand out -- does not toss out the baby with the bath water. that is the challenge. whilst in a heavy user of a tablet device and everything else, i think that is kind of ho-hum. it is fabulous you can build a startup in your garage again,

but the challenge is how do we adopt this technology in a world where the rate of adoption is governed not by anything to do with technology itself but by the rate at which humans can evolve their skill sets as they face new technologies. that is what enterprise i.t. is. i can tell you with -- that its -- i can tell you the confidence that is what enterprise i.t. is. we need to get newer people in. we need to upgrade the skills that. let me try and describe it. the only thing interesting in technology is an exponential curve. and it doubles, and whilst we in our human experience live in linear times with linear skill sets, thinking what to do tomorrow, by the time tomorrow

comes, technology has moved the world ahead a whole lot more than we could ever grass. so here we sit as humans in some roughly 20th-century experience of what consumer -- computer systems and networks and so on are, and the world is radically different in terms of innovation. the challenge is how do you get humans to the ball quicker to adopt these technologies and do so in a way that is safe and secure? that, for me, is the challenge of cloud. >> very nice. that leaves just into gina because she grapples with these problems every day. >> let me start by saying i feel far more at ease now in this prestigious venue after hearing "help" and "stocks -- "hell and "sucks." i can speak far more clearly to you now. in very humble being with these folks because these folks are

architects. architects of technology and architect of cloud computing technology in and of itself, so i am humbled to be here with these gentlemen. i can speak from a -- i am release a purveyor of the technology that they implemented. i can speak from my role with the city and county of san francisco and how we are leveraging cloud and the benefits we are deriving from the cloud and why we made the choices therein. certainly, as tim alluded to, the choice to go to the cloud was primarily cost-driven, economically driven, no question. but also, we began to see that the city business, the city government was changing and the role of the city government was changing. the constituents in the city and

county are very savvy, savvy computer users. san francisco is a gateway to silicon valley. for the constituents within the city and kept -- so the constituents demand more change, more availability, more accessibility. so while the public sector is renowned for being slow and moving slow, slow to adopt the change and slow to implement change, the constituents of the city and county of san francisco demanded more. we had to be able to deliver services in a speedier manner and more cost effective manner, while still embracing many of the legacy systems and staff and processes throughout the city. san francisco is a very unique city in terms of we embrace history. we embrace legacy. we embrace our cable cars. we embrace our wonderful victorians that we have here,

our history is very important to us, that legacy. but we also do a complete 180. we have awareness of technology. so many technological advantages started here. we have to embrace that as a city. so why do we leverage cloud? one, obviously, from an economical position. a second, because we are able to deliver services more quickly. we have a challenge with our staffing and resources, as you mentioned, but we have to embrace that legacy staff. we cannot merely replace them, as you pointed out. we have to embrace that legacy staff and repurchased them in other areas that we can benefit the city better with those folks. so our decision to recently go to a more enterprise version of cloud computing was leveraging

e-mail in the crowd -- that was a major decision. ground-breaking decision for the city and county, but one that we feel will better prepare us for the future and better enable us to implement other technologies to help move the city forward and to help lift the technical maturity within the city. that is what we are charged to do. as an i.t. organization within the city, and to your comment earlier, it is something we face everyday, a challenge we face every day. leveraging legacy. respecting legacy, yet implementing technology to meet the needs of the business of the city and the needs of the constituents within the city. >> thank you. having a question for you or -- when you say cloud, there are multiple model ser -- models. let me simplify them.

one is instead of building your own data center which companies would do 10 years ago and build your own computer room at generators and air conditioning, you use an outsourced professional data center. that is one move to the court, which is one move to the crowd. the second model, which you have actually used to set up a mass of private club, where you can now provision servers on demand for your constituents within the city. in the context of a government with the compliance issues and security issues and mission critical services which you overlay, that is quite an achievement. so that is the second model which you have embarked on. the third model is clearly the public crown. he made a decision to move some of your data to a public cloud -- e-mail. if you talk about the decision process which led to selecting each of them, your concerns, your challenges, and the economics behind each of those

models, i think it would be very beneficial. >> a cake, well, our decision to leverage services and move to echolocation a facility in the city was pretty simple. that was pretty much a cost decision as well. the decision to build a brand new data center from the ground up versus leverage the services of a pre-fabricated co-location center, that is already outfitted with all the heating and air-conditioning and cooling facility that we need -- power, electricity. after weighing the costs of such, it was an easy choice and the most cost-effective choice to seek out the services of a co location site for the city and county primary data center. our former datacenter -- we look at ways to properly renovate and

upgrade the facility there. from a cost perspective, it was not a benefit to the city, and we did not think it was a very use of the city's taxpayers funds, so we felt that it was best to research a co-location facility in the city, and we're very pleased with our decision to go that route. because one, we did not have to -- we no