Understanding the Value of the Cloud - Centare Lunch & Learn - June 2, 2011

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Cloud computing is one of the most important shifts in computing since PC/Client-Server from the 90s. In this presentation we will reminisce about the major milestones in computing history, look at …

Cloud computing is one of the most important shifts in computing since PC/Client-Server from the 90s. In this presentation we will reminisce about the major milestones in computing history, look at where we are now, and dream about what the future will look like with the introduction of the cloud. Next, we will examine the challenges of the traditional data center and dig into the benefits and value provided by leveraging the cloud. Finally, we will discuss how you can identify opportunities in your organization that are a good fit for the cloud and explore strategies for getting started.

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  • 1. Understanding the Value ofthe Cloud Centare Lunch & Learn Eric D. Boyd
  • 2. Introduction• Eric D. Boyd• 15 years in technology
  • 3. I’m From Here
  • 4. I Moved Here
  • 5. I Work Herewww.centare.com
  • 6. I Work On
  • 7. I Blog Herewww.ericdboyd.com
  • 8. I Tweet Herewww.twitter.com/EricDBoyd
  • 9. Agenda and Objectives• What is Cloud Computing?• Why you should use Cloud resources.• How you can benefit from the Cloud.
  • 10. What is Cloud Computing?“…cloud computing is really doingjust-in-time provisioning and scaling ofservices, software and solutionsdelivered as a service on a pool ofhardware…” - Bob Muglia, Microsoft, April 28, 2010
  • 11. Getting to Know You
  • 12. Generational Shift of Computing TECHNOLOGY ECONOMIC BUSINESS Centralized compute Optimized for High upfront costs and storage, thin efficiency due to for hardware and clients high cost software Optimized for PCs and servers for Perpetual license for agility due to low distributed compute OS and application cost and storage software Large datacenters, Order of Pay as you go, commodity magnitude better pay only for hardware, scale- efficiency and what you use out, devices agility
  • 13. Challenges Forcing IT OptimizationFacing an business has causing newunprecedented responded by technologies toeconomic transforming… emerge.environment… ECONOMIC BUSINESS TECHNOLOGY CHALLENGES CHALLENGES CHALLENGES• Reduction of • Focus on core • Shift from operating and value-add information capital activities technology to expenditures • Improve agility business technology• Increased to stay • Technology erases competition for competitive infrastructure fewer resources • Leverage complexity• Do more with less existing assets to • Globalization expand
  • 14. What Your Company is Saying CEO CFO/CIO “I need the organization to “We need to reduce our total cost become more agile to take of ownership and prioritize advantage of changing business initiatives rather than IT market dynamics.” imperatives.”DIRECTOR, OPERATIONS PRODUCT MANAGER“I need operational “I can’t wait for IT totransparency so that we procure capacity, wecan align our investments need to take ourwith the business needs.” product to market now.” IT ADMINISTRATOR SALES ACCOUNT MANAGER “I need solutions that scale with “I need to reduce the amount of our customers and provide time my team is spending keeping greater mobility for more systems operational and devices.” maintained.”
  • 15. Problems in the Data Center
  • 16. Allocating Resources: The Traditional View Load forecast Undersupply Oversupply Oversupply IT CAPACITY Initialinvestment TIME Allocated IT resources Actual load
  • 17. Is this possible?Has this been done before?
  • 18. Electrical Grid Adoption 80% 90% 40%5%1900 1907 1930 1935
  • 19. Cloud-Addressable Challenges Facing Today’s Enterprise1 Infrastructure costs are fixed and 5 Maintaining security while ongoing, and distract from the increasing access and mission of reducing business transparency—within and outside process friction the organization2 Leveraging past investments to 6 Security, access, and transparency provide future value across the value chain: suppliers, partners, etc.3 Many data centers at limit—real estate, capacity, cooling and power 7 Lack of a common platform4 Matching capacity to demand
  • 20. Benefits of Cloud Computing SHARING "PERISHABLE AND INTANGIBLE" COMPUTING PAY FOR ACCESS POWER AMONG MULTIPLE IMPROVE TIME-TO-MARKET FOR– NOT OWNERSHIP – TENANTS OPTIMIZES NEW OF IT RESOURCES COSTS FOR ALL APPLICATIONS, SERVICES, AND SOLUTIONS STAFF AND PLAN FOR TYPICAL USAGE. SCALE TO THE CLOUD AT PEAK TIMES – PLANNED OR UNPLANNED End of quarter reporting, tax-time, payroll, slashdot effect
  • 21. Allocating Resources: The Traditional View Load forecast Undersupply Oversupply Oversupply IT CAPACITY Initialinvestment TIME Allocated IT resources Actual load
  • 22. Allocating Resources: The Cloud View Load forecast No undersupply IT CAPACITY Less Less oversupply oversupplyLower initial investment TIME Allocated IT resources Actual load
  • 23. Your Competitors are Benefiting“By 2012, 80% of Fortune 1000 enterprises will be using some cloud computing services, 20% of businesses will own no IT assets.” Gartner
  • 24. Cloud Usage: Tripling in Three Years 2013 $13.3B • By 2014, cloud computing services will grow to a $45 billion industry a year (IDC) $14.0B 2009 • Traditional IT services will transfer to the new cloud model, with lots of potential $2.9B revenue in new businesses and $5.7B revenue streams (Gartner) $17.6B $6.9B IaaS PaaS SaaS
  • 25. Cloud Priority for the CIO• Cloud Computing ranks No. 1 on the CIO technology priority list for 2011. Gartner
  • 26. Windows® Azure™ Platform
  • 27. Cloud Computing Taxonomy The Windows Azure Platform fits here Traditional IT IaaS PaaS SaaS You manage Applications Applications Applications Applications Data Data Data Data You manage Runtime Runtime Runtime Runtime Managed by vendor Middleware Middleware Middleware Middleware Managed by vendorYou manage O/S O/S O/S O/S Managed by vendor Virtualization Virtualization Virtualization Virtualization Servers Servers Servers Servers Storage Storage Storage Storage Networking Networking Networking Networking
  • 28. Cloud Workload Patterns On and Off Growing Fast Compute Compute Inactivity On off Period Average Usage Average Usage Time Time• •• •• • Unpredictable Bursting Predictable Bursting“ Compute Compute Average Usage Average Usage Time Time• •• •• •
  • 29. Usage Scenarios••••••
  • 30. Data-centric Services•••
  • 31. Web Presence••
  • 32. Marketing Campaign Websites••
  • 33. Self-managed Departmental Applications•
  • 34. Departmental Applications (managed by IT)••
  • 35. Mobile Apps••
  • 36. Intrapreneuring•
  • 37. Many Scenarios•••••
  • 38. Comparing Deployment Options On premises Hosted Cloud
  • 39. Windows Azure Platform GENERAL PURPOSE PROGRAMMING LANGUAGES Windows Azure PlatformCompute Storage Management CDN AppFabric Marketplace Relational Management data
  • 40. Windows Azure• • •• • • • •
  • 41. SQL Azure• • •• ••
  • 42. Windows Azure Platform Data Centers N. Europe N. Central – U.S. W. Europe S. Central – U.S. E. Asia S.E. Asia 6 datacenters across 3 continents Simply select your data center of choice when deploying an application
  • 43. Windows® Azure™ Platform
  • 44. Windows® Azure™ Platform
  • 45. Windows® Azure™ Platform
  • 46. Windows® Azure™ Platform
  • 47. Monthly Service Level Agreements Windows Azure AppFabric Windows Windows Azure SQL Azure Compute Service Bus andAzure Compute Storage Database instance Access Control connectivity availability availability monitoring availability• Your service is • All running • Storage service • Database is • Service bus connected and instances will will be connected to and access reachable via be available/ the internet control the internet continuously reachable gateway endpoints will monitored (connectivity) • All databases have external• Internet-facing • If instance is • Your storage will be connectivity roles will have external not requests will continuously • Message connectivity running, we be processed monitored operation will detect and successfully requests initiate processed corrective successfully action>99.95% >99.9% >99.9% >99.9% >99.9%
  • 48. Windows Azure Platform Consumption PricesCOMPUTE STORAGE WEB EDITION BUSINESS EDITION
  • 49. More Affordable Platform Access Extra Small Instances • Designed for small scale web applications • Mix and match with larger VM Instances Instance I/OInstance Size CPU Memory Price Storage PerformanceExtra Small 1.0 GHz 768 MB 20 GB Low $.05 per hourSmall 1.6 GHz 1.7 GB 225 GB Moderate $.12 per hourMedium 2 x 1.6 GHz 3.5 GB 490 GB High $.24 per hourLarge 4 x 1.6 GHz 7 GB 1000 GB High $.48 per hourExtra Large 8 x 1.6 GHz 14 GB 2040 GB High $.96 per hour
  • 50. Pricing Example: Marketing Website Windows Azure Workload Pattern Application Background Platform Solution “Unpredictable Bursting“ Branded marketing website with Windows Azure Compute customer facing front end, hosting Windows Azure Storage viewable media content Content Delivery Network (CDN) Compute Average Usage Time Application Variables Pricing Calculation Billing Estimate Instance Size: 2 to 4 (Small) $0.24 to $0.48 per hr $259.20 Windows Azure Storage: 10 GB $0.15 per GB $1.50 Data Transfer In: 7.5 GB $0.10 per GB $0.70 Data Transfer Out: 30 GB $0.15 per GB $4.50 Blob Transactions: 30,001 $0.01 per 10,000tx $0.03 Total Consumption Monthly Cost of Application: $265.93 TCO Tool Highlights: Derived On-Premises Costs* Cost of Ownership Comparison Computing Costs: $1,513.50 92% 94% Database and Storage Costs: $3.40 savings savings Bandwidth Costs: $98.25 IT Admin Support $235.75 $3.2K Other Costs: (Including Facilities $1,303.10 $266 $180 &Overhead; Setup & Delivery) Total: $3,154.00 Hosted Windows Azure Development Platform Accelerator Core*Traditional server purchase costs, divided over 12 month period
  • 51. Pricing Example: Payroll Application Add-on Windows Azure Workload Pattern Application Background Platform Solution “Predictable Bursting“ Web-based payroll application add-on Windows Azure Compute based in the cloud, with two connected Windows Azure AppFabric SQL Azure web databases SQL Azure Storage Compute Average Usage Time Application Variables Pricing Calculation Billing Estimate Compute Instances: 2 to 4 (Medium) $0.48 to $0.96 per hr $598.32 Connections: 2 $3.99 per connection $7.98 SQL Azure Database: 2GB (2) $9.99 per database $19.98 Data Transfer In: 18 GB $0.10 per GB $1.80 Data Transfer Out: 36 GB $0.15 per GB $5.40 Total Consumption Monthly Cost of Application: $633.48 TCO Tool Highlights: Derived On-Premises Costs* Cost of Ownership Comparison Computing Costs: $1,651.23 85% 89% Database and Storage Costs: $653.00 savings savings Bandwidth Costs: $105.00 $4.5K Other Costs: (Including Facilities & $2,045.77 Overhead; Setup & Delivery) $633 $475 Total: $4,455.00 Hosted Windows Development Azure Accelerator Platform Core*Traditional server purchase costs, divided over 12 month period
  • 52. Pricing Example: Inventory Data-hub Windows Azure Workload Pattern Application Background Platform Solution “On and Off “ Warehouse inventory content data-hub Windows Azure Compute application that provides aggregate SQL Azure Database Compute and regional specific information on Inactivity inventory levels to network of Average Period Usage warehouse systems Time Application Variables Pricing Calculation Billing Estimate Windows Azure Compute: 2 (Small) $0.24 per hr 129.60 SQL Storage Database Size: 20 GB $99.99 per 10GB 199.98 Data Transfer In: 10 GB $0.10 per 1GB $1.00 Data Transfer Out: 10 GB $0.15 per 1GB $1.50 Total Consumption Monthly Cost of Application: $332.08 TCO Tool Highlights: Derived On-Premises Costs* Cost of Ownership Comparison Compute $1,513.50 Database/Storage: $652.80 89% 90% Bandwidth Costs: $172.34 $3.1K savings savings Other Costs: (Facilities & $724.80 Overhead; Setup & Delivery) $332 $282 Total: $3,063.44 Windows Hosted SQL Azure Azure Development Platform Accelerator*Traditional server purchase costs, divided over 12 month period
  • 53. Example: Cloud Assessment Connected Business Suite Pricing Windows AzureWorkload Pattern Application Background Platform Solution “Growing Fast“ Growing business connectivity portal, Windows Azure Compute consisting of 50 communication and Windows Azure AppFabric Compute organizational applications scaling up Windows Azure Storage Average Usage to 100 applications SQL Azure Database Time Application Variables 50 App Totals Commitment Quantities EA Billing EstimateCompute Instances: 2 (Medium) 100 Individual Instances $13,860.00Connections: 5 connections 250 Sets of 5 $432.83SQL Storage: 10 GB 500 Sets of 250 $3,849.62Blob Transactions: 500,000 2.5 million Sets of 1 million $2.31Storage: 0 to 150 GB peak 7,500 Sets of 100 $8.66Data Transfer In: 25 GB 1,250 Sets of 100 $1.13Data Transfer Out: 75 GB 3,750 Sets of 100 $4.96 Total EA Monthly Cost for 50 Applications: $18,159.51Windows Azure Platform EA Monthly Costs Cost of Ownership ComparisonTotal Cost for 50 Applications $18,159.51 50 Applications 100 ApplicationsTotal Cost for 100 Applications $36,319.02 56% 60% Savings Savings 90KTCO Tool Derived On-Premises Costs* 41K 18K 36KTotal Cost for 50 Applications $41,432.00 Hosted EA Pricing Hosted EA PricingTotal Cost for 100 Applications $90,193.00*Traditional server purchase costs, divided over 12 month period
  • 54. Cloud Assessment• •••
  • 55. Calculate the Savings $$$Windows Azure Services Windows Azure Costs ROI Comparison To access the TCO Calculator go to: http://www.microsoft.com/windowsazure/tco/ Note: The TCO calculator is for informational purposes only, and provides an estimate to help appraise the potential savings of deployment to Windows Azure. The analysis report should not be interpreted as a commitment on the part of Microsoft, or Centare.
  • 56. Next Steps• Identify Applications that Make Sense• Identify Appropriate Cloud Vendors and Partners• Download Azure SDK and Tools – http://www.microsoft.com/windowsazure/getstarted/• Azure Pricing Calculator – http://www.microsoft.com/windowsazure/pricing- calculator/• Sign up for FREE Azure Trial – http://www.microsoft.com/windowsazure/free-trial/
  • 57. Questions
  • 58. Thank you!eric.boyd@centare.com http://www.ericdboyd.comhttp://spkr8.com/t/7705