Ambiguity Creates Complexity “Cloud computing is a reality, and it's a force that IT professionals need to quickly come to terms with. The economic and social motivation for the Cloud is high, the business need for speed and agility is greater than ever before, and the technology has reached a level in which prudent investments in Cloud services are fast and easy.” –Network World, May 2009 “’Cloud computing’ is the latest buzz term sweeping through the information-technology industry, but it’s losing whatever meaning it once had as an increasing number of companies apply the label to their wares.” –Wall Street Journal Sept 2008 “The interesting thing about Cloud computing is that we’ve redefined Cloud computing to include everything that we already do… Maybe I’m an idiot, but I have no idea what anyone is talking about. What is it?” –Larry Ellison, Oracle CEO No clear definition of “Cloud computing” Important to have a common understanding across the industry The future is now
Today’s Business Environment 1 Cutting Cost and Lowering Capex Infrastructure uses up valuable IT resources 40% CIOs plan to cut IT budgets 2 Driving value for the business with tight IT budgets Leveraging and extending past IT investments to provide future value 72% CIOs have cut or plan to cut discretionary IT projects* “Live with what we have” 3 4 Maintaining security while increasing access and transparency internally and externally Many data centers are a limitation 59% of surveyed CIOs view security and datacenter efficiency as “must do” projects 5 Finding the right transformative capabilities across the enterprise: Cloud computing, data-center strategies, SaaS, mobility, IT automation 6 Top Projects: SaaS, VoIP, Green IT, Web 2.0 and outsourcing Source: CIO Magazine, October 21, 2008, “Cloud Computing Survey: IT Leaders See Big Promise, Have Big Security Questions”
The Cloud Opportunity 25% Software share 32%Market growth $21BRevenue 25% of new business software will be delivered as a service by 2011 (Gartner) 32% CAGR worldwide SaaS forecasted, 2007-2011 (IDC) $21B market for SaaS sales by 2011 (IDC) 50% of larger companies are using SaaS today (minimum of 3 applications) Eases IT staff workload Less infrastructure to buy/configure and support Lower TCO Increases efficiency by minimizing downtime Lower upfront capital costs Top drivers for adoption Lower upfront capital costs Eases IT Staff Workload Less infrastructure to buy/configure and support Lower TCO Increases efficiency by minimizing downtime
Microsoft’s View of the Cloud Scale Automated Service Management High Availability Multi-Tenancy Considerations Off Premises On Premises Location Homogeneous Heterogeneous Infrastructure CapEx OpEx Business model Own Lease/Rent Ownership Self Third Party Management
Introducing the Windows Azure platform Web and Clouds Developer Experience Third party Cloud Web applications Use existing skills and tools. Compute Storage Management Management Relational data Connectivity Access control On-premises LOB Applications Composite applications
Case Study - The “Taste of Chicago” Partner Overview Solution Developed a website for Taste of Chicago Needed to be ready for public use in less than two weeks Traffic requirements were unknown, estimated at ~50,000 hits/day Hosted on Windows Azure Microsoft Silverlight 2.0- Deep Zoom Interactive features Proof of concept – live alerts for event notification via text messages Business & technology consulting firm Based in Chicago
Windows Azure Helped West Monroe Succeed Quick to market Focused resources Streamlined process Reliable and scalable
Benefits of the Windows Azure Platform BUSINESS DEMANDS TECHOLOGYDEMANDS WINDOWS AZUZURE PLATFORM OFFERS
Cost-effective solution to manage IT resources
Less infrastructure to buy/configure and support
Why Microsoft Technology innovation Partner ecosystem Power of choice Developer “IDC sees the launch of Windows Azure and Azure Services Platform as a first step in a long evolutionary path that customers will take moving them from today’s self-hosted IT to consuming a hybrid of both internally and externally hosted services, and if so desired, could eventually support a fully outsourced model.” —IDC Insight, Microsoft Unveils Cloud Services Strategy and the Azure Services Platform: Managing Customer Expectations and Competitive Pressures as Solution Evolves Is Key, Nov 2008, Doc #215034
Windows Azure Platform Service Guarantee Storage servicewill be available/ reachable (connectivity) Your storage requests willbe processed successfully .NET Service Bus endpoint will have external connectivity Message operation requests willbe processed successfully Serviceavailability Storage availability Database availability Role instance monitoring and restart Compute connectivity Your service is connected and reachable via web Internet facing roles will have external connectivity Database is connected to the internet gateway Availability monitoring every 5-minute interval All runningroles will be continuously monitored If role is unhealthy, we will detect and initiate corrective state Automated Systems Management >99.9% >99.95% >99.9% >99.9%
Windows Azure Purchasing Models Consumption Subscription Volume licensing “Pay as you go and grow” Available at PDC launch “Value for a commitment” Planned for post PDC Select offers at PDC “Coordinated purchasing”
Windows Azure Platform Purchasing Models Value differentiated by automated management,federated access control, and advanced message patterns Value differentiated with scale, managed high availability,and self-provisioning Value differentiated by service lifecycle management Messages Bandwidth Web edition Business edition Bandwidth Compute Storage Bandwidth Per transactions Per GB transferred Per database/month Per database/month Per GB transferred Per service hour Per GB stored and transactions Per GB transferred $0.15/100K* $0.10 GB Ingress* $0.15 GB Egress* $9.99/month*(1 GB) $99.99/month*(10 GB) $0.10 GB Ingress* $0.15 GB Egress* $0.12/hour* $0.15 GB/month* $0.01/10K storage transaction* $0.10 GB Ingress* $0.15 GB Egress* *Price quoted is for U.S.
Windows Azure Purchasing Platform Models Subscription “Value for a commitment” Select offers at PDC
Development accelerator MSDN Premium Accelerate cloud development projects Flexible (on/off) consumption and use Predictable payment and discounted price MPN subscription benefit: gold, certified, BizSpark, Empower Build and test cloud applications MPN Partners receive a 5% discount
Software + Services Users experience consistency from PCs and web browsers to mobile devices to servers Applications are managed automatically Developers use familiar toolset to enable fast time to market for new applications Solutions integrate easily with a variety of web-scalable services
Partner Momentum “ With Azure, your ability to deliver solutions becomes much faster and you can really innovate and be competitive.” – JitendraThethi, Principle Architect “ Cloud computing democratizes access to carrier-class data center technology with better performance, higher efficiency, and lower costs; Microsoft’s Azure adds to that integration with a first-class development platform, decades of operations experience, and a developer toolbox of customizable services.” – Brian Mathews - VP Autodesk Labs “ Making a reliable cloud application can be really hard, and Azure uses .NET and Visual Studio tools we already know and that we already know how to put out into a marketplace. That's very helpful for us and it's helpful for our customers.” – Erik Johnson, Research Director eduify | write faster
Windows Azure Partner Quick Start http://azure.com/partnerquickstart The one stop shop for partners to access: Training Tools Content Updates Announcements …and connect with Microsoft Developers: http://www.msdev.com Facebook: http://partnerhuddle.net Blog: http://cdspartners.wordpress.com NEXT STEPS
Windows Azure Platform CTAs Visit Azure.com/PartnerQuickstart Learn about Azure, and how to quickly start making money! Sign up for the Azure CTP Be on the leading edge of new innovation Register for David Chappell’s Road Show near you Hear first hand from a global thought leader about Azure cloud
Three models for running enterprise apps in the Cloud 2 1 3 Subscribe to SaaS editions of traditional packaged applications Switch to SaaS versions of programs like Office, CRM, etc. instead of installing and maintaining the software on your internal servers (e.g., Exchange Online instead of Exchange) The software is hosted by the company who makes it (e.g., Office Online is hosted by Microsoft, Google Apps is hosted by Google). Write applications specifically to run on a Cloud platform Advantages: Get Cloud features like infinite scaling and live servicing Disadvantages: Often cannot take apps written for one Cloud platform directly to another, since they differ. Host existing Windows or Linux applications as VMs in the Cloud Rather than re-writing existing apps, package the OS + application as a virtual machine, and run that virtual machine in the Cloud. You’re still running Windows apps on a Windows OS – it’s just now running in the Cloud instead of on your servers. Advantages: No need to re-write apps. No need to manage physical servers. Disadvantages: Can’t take direct advantage of native Cloud features like scaling. Email Packaged app LOB app
Defining PaaS “OS environment in the sky”, running in an Internet scale data center. The hardware, Cloud operating system and data center facilities are owned and managed by the Cloud provider, and not by the enterprise. Shared multi-tenant infrastructure offers infinite scale, pay-as-you-go use model, metered billing, anywhere access, etc. Third party ISVs can also build/host their applications on this Cloud infrastructure, and expose them as SaaS offerings to enterprise customers Potential Scenarios Build native Cloud applications that leverage available Cloud provider APIs and services Host your existing LOB and packaged applications as virtual machines in the Cloud Consume SaaS offerings from enterprise software vendors Email LOB app Native Cloud app Enterprises run their apps on this Cloud infrastructure, paying-as-they-go for the server resources they consume (e.g., CPU, storage, bandwidth). Enterprise IT admins mainly need to be concerned about the application layer. The OS and hardware layers are the responsibility of the Cloud provider. The Cloud environment can co-exist with on-premises IT, or can replace it.
Defining IaaS The Cloud offers scalable hardware resources (e.g., CPU cycles, storage, networking, etc.) as a service. Customers don’t need to own or manage hardware or datacenter facilities. Applications are built natively in the Cloud to leverage this infrastructure, or existing Windows/Linux workloads are hosted as virtual machines in the Cloud. Potential Scenarios Replace your on-premise physical servers/ datacenters with Cloud based infrastructure Cloud for storage, backup and disaster recovery Get additional compute capacity (CPU, storage, etc.) for on-premise apps on-demand, i.e., “burst capacity” Enterprises can run their apps on this Cloud infrastructure, paying-as-they-gofor raw server resources (e.g., CPU cycles, storage MBs, bandwidth, etc.) they consume. On-premise workloads can tap into the Cloud for additional serving capacity on demand (augmenting on-premise infrastructure). Or enterprise workloads can be hosted entirely in the Cloud (replacing on-premise infrastructure).
Defining Private Clouds Traditional On-Premises Model Servers are dedicated to specific workloads Individual servers sized for peak or average capacity of a given workload Substantial idle/wasted capacity An application can’t scale beyond the boundaries of boxes it resides on Provisioning new capacity takes time Private Cloud Model Servers are treated as a virtual pool of resources Apps consume from the pool rather than having dedicated resources Idle servers automatically shut down or put to sleep until needed Apps can scale to the available provisioned capacity in the pool Adding a new server adds capacity to the entire pool for all apps Dedicated infrastructure (i.e., Cloud resources are only accessible to your company, and not shared with others)
The Windows Azure platform reduces the complexity of Cloud computing Benefit Drivers FLEXIBILITY: Host services in the Cloud, or integrate with on- premises applications AGILITY: Respond quickly to business with software and services integration EFFICIENCY: Add and remove capacity on demand, pay for only what you use FOCUS: Invest in delivering services and value, not on managing technology infrastructure SCALABLE COMPUTING STORAGE AUTOMATED SERVICE MANAGEMENTAZURE SERVICES PLATFORM INTEGRATION
Cloud Computing Transforms the Economics of Business Computing FOCUS ESSENTIAL IT RESOURCES ON BUSINESS SOLUTIONS – NOT INFRASTRUCTURE PAY AS YOU GO TO ACHIEVE MASSIVE SCALABILITY INCREASE BUSINESS AGILITY AND EFFICIENCY BRING APPLICATIONS TO MARKET FASTER TO ACCELERATE INNOVATION
Benefits of Cloud Computing SHARING "PERISHABLE AND INTANGIBLE" COMPUTING POWER AMONG MULTIPLE TENANTS OPTIMIZES COSTS FOR ALL PAY FOR ACCESS – NOT OWNERSHIP – OF IT RESOURCES IMPROVE TIME-TO-MARKET FOR NEW 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
Introducing Windows Azure Windows Azure delivers Cloud computing for the enterprise “It’s the transformation of our software, it’s the transformation of our strategy and our offerings across the board to fundamentally embrace services.” –Ray Ozzie Chief Software Architect Microsoft
How We Will Work With PartnersEmbedded Windows Azure platform Discount Partner Partner offering Partner offering Customer
How We Will Work With PartnersBuilt for Windows Azure platform Partner Partner offering Partner offering Customer
Q&A Q. What languages will Windows Azure support? At commercial launch, Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Ireland, India, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Spain, Sweden, Switzerland, UK, and the United States. Israel is currently being evaluated for commercial availability at PDC. In the March 2010 timeframe we expect commercial availability to expand to Brazil, Chile, Colombia, Czech Republic, Greece, Hong Kong, Hungary, Israel, South Korea, Malaysia, Mexico, Poland, Puerto Rico, Romania, Singapore, and Taiwan.
Q&A Q How does MS differentiate SQL Azure from SQL Server? SQL Azure is exposing a large subset of these relational capabilities and extending them as services in the cloud. These services feature built-in high scale, availability, and self-management, and are provided in a way that makes it easy for customers and partners to consume over the Internet. Although SQL Azure in its first iteration exposes only the core RDBMS capabilities of what is in the full SQL Server data platform, Microsoft expects this to increase over time, with likely future features including Reporting, Analytics, ETL and other premium services etc. SQL Server and SQL Azure share some technologies and will share some innovations bilaterally.
Q&A Q. How are Compute, Storage and Bandwidth Metered? Compute – Charged only for when your app is deployed. Storage
Metered in units of average daily amount of data stored (in GB) over a monthly period (ex. Uploaded 30gb and stored for one day, the bill would be for one GB; if stored for 30 days (30gb charge)
Metered in terms of storage transactions used to add, update, read and delete data. (.01/10K transactions)
Bandwidth – total amount of data going in and out of the Windows Azure platform via the internet in a 30 day period.
Q&A SQL Azure – Web and Business Edition The SQL Azure Web Edition DB includes
Up to 1 GB of T-SQL based relational database
Self-managed DB, auto high availability and backup
Additional features in the future like auto-partition, CLR, fanouts etc.
Best suited for ISVs packaged LOB apps, Department custom apps
Q&A How is SQL Azure database metered?
SQL Azure database is charged based on the portion of database consumed by the application.
How does .NET Services meter messages? .NET Services allow developers to easily connect their cloud applications and databases with existing software assets and users. This connection between cloud and on-premises assets is facilitated by the exchange of messages. The consumption-based pricing model means that customers will pay only for the number of message operations that their applications use. The definition of a “message operation” includes Service Bus messages and Access Control tokens. Messages are charged to the customer in discrete blocks of 100,000 (“100k”) for each monthly billing period, meaning that:
A customer who consumed 95,000 messages would be billed for 1x100k messages (plus the bandwidth used to send messages in or out).
A customer who uses 150,000 messages in a billing period would be charged for 2x100k messages (plus the bandwidth used to send messages in or out).
A customer who uses 20 million messages in a billing period would be charged for 200x100k messages (plus the bandwidth used to send messages in or out).