it applies across the board. the major step that we will see and people who innovate at this level will see is doing that. i will end by telling you a little trivial metric for you to walk away and think about. it is called servers per employee. all of you guys who work in a business, just to this for fun. go in and ask how many servers you have. big ones, little ones, i do not really care. abide by total number of employees, contractors, not contractors. a number in your head, some of you? i will give you a couple of data points. turns out the u.s. government tracks this for global economic development purposes. by the way, if the number of servers per employee is zero, what is the chances for global economic development? 0. right. and that brazil is a 0.04. india is a 0.02. i have no idea what the u.s. is that. that gives you some metric. my friends who run these application cloud service

companies, they are sitting at 0.5 to 1.0. most of the people who listen to me -- actually, i did this three or four months ago. the guy sitting right here was the cio of kimberly-clark, an old friend of mine. so i asked him how many servers per employee he had, and he said we had 0.4 and headed for 0.2, proudly. ok, who do you think is sitting at 30 to one? facebook. would you think is sitting at 50 to one? for your technical people in the room, do you think they are operating inefficiently? no, i do not think so. furthermore, do you think that they are using all those servers to serve up web pages? no. right? these are truly information-

power businesses. at the end of the day, my opinion -- lots of people may 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.