Windows Azure Partner Presentation

Wes YanagaPartner Evangelistwesy@microsoft.com
July 2009

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

A Cloud Taxonomy

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
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
Lower TCO
Predictable cost
Focus on delivering compelling software
Monetize new offering quickly without investment in billing and other enablement technologies.

Speed of development
Interoperability
Leverage existing IP
Simplified deployment
Go to market faster
Reliable service
SLAs
Security
Global data centers

Lower costs
Efficiency
Stay Competitive
Innovation
Generate New Revenue Quickly
Agility
Reduced
Risk
Reliability

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”

Low barrier to entry and flexibility
Optimized for Cloudelasticity
Discounts for commitment
Plans for paymentpredictability
Unified purchasing through EA
Introduction to volumediscount

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

Discounts for commitment
Plans for paymentpredictability

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

Questions and Answers

© 2009 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.
The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Appendix

Cloud Definitions

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 Business Benefits

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

Partner Models

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
Auto Scale with pay-as-you grow
Best suited for Web application, Departmental custom apps.

The SQL Azure Business Edition DB includes

Up to 10 GB of T-SQL based relational database
Self-managed DB, auto high availability and backup
Auto Scale, Pay-as- you grow
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).