In Touch With The Cloud(s)RealDolmen Cloud EventMichael KogelerDirector Cloud StrategyBusiness Strategy TeamMicrosoft International Headquarters
So, who is Michael Kogeler ? Michael Kogeler Director Cloud Strategy Microsoft International Headquarters Mail - firstname.lastname@example.org Blog - www.kogeler.com Messenger – email@example.com Private Mail - firstname.lastname@example.org Twitter – #mkogeler
Intensity of Your Single “Payaudience Attention” Moment Ofattention(meaning you Todayare still awake) Slide 1 Slide 29 Presentation time (or my overload of slides) Your single moment of attention the next 45 minutes.... (and your main lesson learned for today)
Cloud Computing Complexity... Pull stick up, Plane goes up, Push stick down, Plane does down.The buttons ? They’re there to impress the chicks. Chicks are complex.
The horseless carriage syndrome…Customers "If I had asked my customers what they wanted, they would have said a faster horse." - Henry FordAnalysts “The horse is here to stay but the automobile is only a novelty, a fad.” - Bank analystEngineers …designed whip holders into the automobiles for the first 6-7 years, even though there was no horse…Marketing & Finance “There will never be more than 1 million units because of the limited availability of good drivers” - Daimler Company (there were 8 million by 1918, over 600 million today)
DISRUPTIVE THINKING – RULE #1 YOU CANNOT PLAN FOR THE FUTURE IF YOU DONOT KNOW WHAT YOU’RE NOT PREPARED FOR.
So, what is this cloud thing?An approach to computing that’s aboutInternet Scale and Connecting to a variety of Devices and Endpoints
Cloud is the Fifth Generation of Computing Cloud Computing, Social Networks Products>Solutions>Services Browsers, Email, eCommerce, Hosting, Wi-Fi, Web 2.0 Distributed Computing Word Processor, Spreadsheets DOS, GUI, WindowsFinancial, MRPReservations
Computing paradigm disruptionsCloud disruption is about more than a technology shift.The economic and business model shifts are at least as important BUSINESS TECHNOLOGY ECONOMIC MODEL MAINFRAME • Centralized compute • Optimized for • High upfront costs & storage, thin efficiency due to for hardware and clients high cost software CLIENT-SERVER • PCs and servers for • Optimized for agility • Perpetual license for distributed compute, due to low cost OS and application storage, etc. software CLOUD • Large DCs, • Order of magnitude • Pay as you go, and commodity HW, better efficiency and only for what you scale-out, devices agility use
Cloud is on your agenda (I guess or better hope…. ) “By 2012, 80% of Fortune 1000 enterprises will be using some Cloud Computing Services, 20% of businesses will own no IT assets.” - GartnerGenerally accepted as A revolutionary style of Cloud computing is movingthe next logical step computing into the mainstreamin IT evolution“Cloud computing is a reality, and "The reality is that cloud computing is “Cloud infrastructure computing willits a force that IT professionals a revolutionary style of computing move squarely into the mainstream asneed to quickly come to terms that is emerging from evolutionary a significant number of Fortune 1000with. The economic and social change. Underneath the fog, there are companies adopt the utility computingmotivation for the cloud is high, a number of trends that are model demonstrated by moving athe business need for speed and converging to fuel the cloud- portion of their "sandbox" apps intoagility is greater than ever before, computing phenomenon. Cloud production on public clouds.”and the technology has reached a computing sets the stage for a new – Worldwide Software Businesslevel in which prudent investments approach to IT that enables Solutions 2010 Top 10 Predictions:in cloud services are fast and individuals and businesses to choose The "New Normal" for Enterprise Software, IDC -easy.” how theyll acquire or deliver IT February 2010, Doc #222024–Network World, services, with reduced emphasis onMay 2009 the constraints of traditional software and hardware licensing models." - Key Issues for Cloud Computing, 2010, Gartner – March, 29 2010
DISRUPTIVE THINKING – RULE #2 NEVER ATTEMPT TO PREDICT THE FUTURE. BEHIND EVERY STRATEGY THERE IS A FALSE ASSUMPTION.
Cloud computing economies of scaleBenefits of going Cloud Fact - Acquisition cost is 10% of IT Spend • Ability to negotiate considerable savings for hardware, power and bandwidth due to scale. Fact - 85% of datacenter capacity is idle on average • Pooling demand from diverse customer base can dramatically increase (~3x) utilization. Fact - 70% of IT budget is spent maintaining datacenter operations • Data-center automation and application of multi- tenancy significantly reduce labor costs.
Cloud computing scenariosDetailing some “no brainers” for Cloud usage Compute Compute Average Average Usage Usage Time Time Compute Compute Inactivit y Period Average Average Usage Usage Time Time
Cloud Computing predictions Where do we see the world moving…. SMB (<200 servers) Government (Fragmented)Public Cloud Economics Academic Size represents number of servers in Midsize market (200-1,500 servers) Enterprise (1,500+ servers) Government (Consolidated) Private Cloud Preference
Defining cloud computing…What is it, and what not… ON-PREMISES HOSTED CLOUD • Buy own machines, • Rent machines, • Pay as you go connectivity, software, connectivity, software • Shared, multi -tenant etc. • Lower capital costs, but environment • Upfront capital costs for pay for fixed capacity, • Offers pool of the infrastructure even if idle computing resources, • Complete control and • Less control, but fewer abstracted from responsibility responsibilities infrastructure
3 Types of Cloud Services… “IaaS”infrastructure as a service “PaaS” platform as a service “SaaS” software as a service migrate to it build on it consume it
Microsoft and Cloud Computing“What do you mean you’re new to this game ?” 530M Active 368M People Over 4B WW Over 459M 2B Unique Windows Live Using Hotmail Queries Each Month Unique Calls Per IDs Users Year Over 303M Over 6M 25M People 14B Ads Users Each Songs In The On Xbox Per Month Month Catalog Live CLOUD SERVICES PC MOBILE TV/HOME
Microsoft Commercial Cloud ServicesBroadest range of offerings from On-Premise to Cloud 9,000 business customers Over 50% of the Fortune 500 40M paid Online seats 70% switching from Notes More than 500 government entities 12,000 partners Public and private cloud flexibility Financially-backed uptime guarantees Over $2B invested in cloud infrastructure 30.000 engineers on cloud services BUSINESS MANAGEMENT & PRODUCTIVITY COMMUNICATIONS COLLABORATION STORAGE PLATFORM APPS SECURITY
The Microsoft Cloud$2BN dollar infrastructure investments100 + Data Centers Across The GlobeQuincy, WA Chicago, IL San Antonio, TX Dublin, Ireland Generation 4 DCs
The Cloud and the environmentIt is not all about saving cost and improving efficiency…
What we hear from our customersCommonly asked questions and expectations
Cloud brings answers… NEW REDUCED INCREASED ECONOMICS MANAGEMENT PRODUCTIVITY
DISRUPTIVE THINKING – RULE #3YOU CANNOT OUTPERFORM A MARKET IF YOU ADHERE TO ITS CONVENTIONS
Consuming the Cloud….SaaS real life experiences• What ?• Potential Objectives
Consuming the CloudStarbucks Coffee Company• What ?• Objectives achieved
Consuming the CloudCoca-Cola Enterprises• What ?• Objectives achieved
Building on the Cloud….PaaS real life experiences• What ?• Potential objectives ?
Consuming the CloudThe City Of Madrid• What ?• Objectives achieved
Building on the Cloud….RiskMetrics Group• What ?• Objectives achieved “We’re using Windows Azure to meet the evolving needs of our clients. And with the … reduced levels of new investment required, we can consider solutions that might otherwise not have been possible.” Rob Fraser, Head of Cloud Computing, RiskMetrics
Building on the Cloud….Siemens• What ?• Objectives achieved Our first estimates show that we can reduce our TCO by a factor of 10. The software distribution system we built with Windows Azure is 10 times cheaper than our previous solution.” Elmar Stoecker, Director Portfolio Management, Siemens IT Solutions and Services
Building on the Cloud….Domino’s Pizza• What ?• Objectives achieved
Migrating to the Cloud….IaaS real life experiences• What ?• Potential objectives ?
Building on the Cloud….Associated Press• What ?• Objectives achieved ““This project has allowed us to explore new possibilities we hadn’t thought of. It has also fostered ideas internally…, and it has provided new business opportunities.” Alan Wintroub, Director of Development, Associated Press
New Company IT ?? Sales Collaboration For all employeesOperations Accounting HR R&D New business opportunity: Sell consumer Marketing demand forecasting
So where do you start ?Some tips from the Microsoft Field