Let the customer answer this question before moving to the definition for the presentation.
Key Points: The cloud can help save money, increase productivity and reduce management complexities This can create new business opportunities
Script: This ability to move things to the cloud, use the cloud for extra compute or storage or expose or share your services with others leads to some benefits:
First, it offers a new set of economic opportunities.
Gain better control over your money (New economics) from saving money by not having to run and maintain large datacenters yourself in some cases moving to IT as a subscription so that you only pay for what you use, when you use it by giving you the opportunity to shift from capital expenses to operational expenses Reduced management: No patching and maintenance Faster deployment Robust multi-layered security Reliability and fault-tolerance Redefining Productivity: by increasing access to information and applications by increasing collaboration because many of the tools they use are now connected together by helping your IT staff focus more on business and less on plumbing and hardware (no patching and maintenance, faster deployment, etc) quickly adapt to changing business needs
New Economics Reduced Management Redefining Productivity
The areas that Microsoft is focusing on that differentiate us from a number of other
1. Technical innovation Long established in the cloud, Microsoft continues to invest heavily in innovations to help drive the technology further. With continual updates to the technology every 6months the estimated investment in the cloud space has been billions of dollars, with more to come. It is involvement on a massive scale. Much of this innovation is rewarded with gartner magic quadrant leadership across many business workloads. Not just email or application platform. There are at least 16 and where we are not leaders such UCaaS we are top of the pack in challengers. We are taking this innovation capability and bringing it to the cloud at internet scale for enterprises to leverage We are the only vendor to think about the cloud across a much broader set of workloads(business productivity, infrastructure and management, application development and platforms, end user experience – etc) and driving innovation further.
The user experiences and development experiences we are delivering across windows mobile devices and blackberries as well as experiences for collaboration and communication is driving business results today. The newest innovations such as Office Web Applications, development with Azure using MSFT and Non Microsoft development environments are all very useful for businesses.
2. Power of choice Microsoft’s cloud services is about the power of choice— a hybrid model of on-premises and off-premises resources that enable you to move what you want to the cloud—as much or as little as you want. It’s not an ‘all or nothing’ approach; instead, it enables you to flow workloads into your own infrastructure, as well as outside sets of infrastructure. So, you can complement your existing IT assets with Web based services. And by having applications available across the Internet, you can help ensure the experience is consistent across all devices.
3. Enterprise class services: Microsoft cloud services offers you the resources needed for a robust cloud computing infrastructure. With a global reach, a commitment to security, and a 99.9% uptime service level agreement with 24/7 service and support every day of the year, you have a truly enterprise-ready infrastructure at your disposal.
Recognizing that information is one of an organization’s most prized and protected assets, Microsoft has invested more than U.S. $2 billion in its data centers, with a holistic view and critical eye on security and privacy standards. Microsoft data centers and many services are are compliant with SAS 70 type 2, ITAR, the Health Insurance Portability and Accountability Act of 1996, the Sarbanes-Oxley Act of 2002, and the Federal Information Security. Microsoft respects our customers data and ensures we put our customers in the drivers seat clearly separating ad and fee based services. Even for our consumer services we provide our customers complete access to control how they allow us to use their private information. We are leaders in responsibility here as well as ensuring IP ownership and monetization of content, code, and IP in the cloud.
Microsoft also provides world class deployment experience from work we have done with some of the largest customers moving to the cloud today. We do this with our partner ecosystem which is our last point of differentiation.
4. Our developer and partner ecosystem As I mentioned before we are developing and ecosystem here. Thousands of companies around the world provide software, services, and support that can help make your investment in Microsoft products more valuable. Millions of developers worldwide are writing to Microsoft platforms—and many more are coming to Microsoft cloud computing through our interoperability support of third-party solutions. That’s why no other cloud vendor can support developers and their applications like Microsoft can.
ISVs Over 45,000 ISV Partners Microsoft ISVs are the most profitable in the industry Hosters 9,000 hosting partners Over 40% of all hosters worldwide are hosting with the Microsoft Platform SIs and VARs Over 250,000 SIs and VARs Over 8,000 BPOS partners in 19 Countries
Gartner Leaders Magic Quadrants Unified Communications 12 September 2008 Enterprise Wireless E-Mail Software Market 29 May 2008 Web Conferencing 29 July 2008 Horizontal Portal Products 12 September 2008 Information Access Technology 30 September 2008 Enterprise Content Management 23 September 2008 Business Intelligence Platforms 16 January 2009 IT Project and Portfolio Management 13 June 2008 Business Process Analysis Tools 23 September 2008 Data Warehouse Database Management Systems 23 December 2008 Enterprise Application Servers 24 April 2008 Application Infrastructure for New Systematic SOA Application Projects 19 December 2008 Application Infrastructure for SOA Composite Application Projects 19 December 2008 Application Infrastructure for Back-End Application Integration Projects 19 December 2008 B2B Gateway Providers 3 June 2008 PC Life Cycle Configuration Management 29 December 2008
There are few people that question that Microsoft can write great software. What they want to know is whether we can map our success on the desktop / server / mobile device to the cloud and develop innovative, scalable, reliable services there.
Let’s take a quick look back at just how much work Microsoft has already been doing in the cloud.
Windows Live Mail 450M users today, arguably the largest webmail service in the world (3x the size of Gmail) Also one of the first, and the first major web-based email service on the Internet (Yahoo Mail started 1 yr after Hotmail)
MSN/Windows Live Has gone through some name changes but has been delivering various web-based services – MSN Money, MSN Autos, etc… since 1997 550M users per month
Windows Update The strong and silent type that most would not think of but actually, other than TCP-IP services like DNS, the single largest cloud service period – in the high hundreds of millions of users worldwide Innovation – the first major cloud-based patch management system, introduced with Windows 98 Reliable – reason people don’t think of it is that WU generally just works
Windows Live Messenger Since 1999 320M+ active users
Bing Also various name changes but around since 1999 2B queries per month With recent Bing launch, introduced concept of a Decision Engine – going beyond basic searches to find locations and to improving the quality of actually making decisions/transacting on the web
XBOX Live Launched in 2001 First major cloud-based gaming community, and perhaps the most important differentiator in XBOX success to date 20+ million active users
Office LiveMeeting Consumer and enterprise cloud collaboration service 5B conferencing minutes last year alone
MS Online Services Launched in 2004 Enterprise productivity services for the cloud Already with 1M paid seats Processing 2B emails a day
COMING SOON – Office Web Apps Office suite capability in the cloud – with full document fidelity, same look and feel as rich Office client, real time collab on docs, etc… All available to over 400M Live ID users on the day of release
On-premise Servers On-Premise deployment is what enterprises are most familiar with and is still the standard deployment method. A server is provisioned either physically or virtually to run a network servers or host an application.
Private Cloud The idea behind a Private/Intetral Clouds is to emulate public cloud computing on private network. In this model a enterprise deploys and manages its own network services, security, applications, but takes advantage of server virtualization and management software to create a Dynamic Datacenter. This includes Identity Management and SSO, self service portals, and management tools that allow for easier provisioning of services and dynamically moving virtual workloads automatically among hosts as demand dictates.
The benefit of this model is that the enterprise maintains complete control over all of it’s data and applications and the datacenter should require less hands on management in the longer term. The downfall of this model is that still have to buy, build, and manage them the systems. This means that the enterprise has to either retrain it’s IT staff of hire a third party consulting services company such as MCS to assist with the architecture, deign, implementation and training of the systems. The up-front capital costs can be steep and essentially lacks the economic model that other clouds models provide.
Private Clouds can also be hosted by third party organizations. In this model the hosting provider supplies the expertise, architecture, design, implementation, management, and operations of dedicated computer systems located at the hosting providers data center on behalf of a enterprise. The advantages to this model are that the enterprise still has control over the services and can customize their systems similar to what they can do in an on-premise deployment. The hosting provider leverages the expertise of it’s staff to deploy the services all the way from the architecture to the operations. This includes maintaining SLAs, securing the data center and customers data, patching, upgrading, and performing maintenance on the systems on behalf of the customer. This enable the customer to concentrate more on its core business rather than running IT infrastructure.
The downfall of this model is that it can take a number of months for a hosting provider to architect and provision, and migrate data to the dedicated system. Monthly costs are typically hire than in a public cloud model until you reach a certain number of users. There may be higher upfront costs coming from CapEx to get the services built and deployed, although a hoster may roll these costs into a monthly fee and average the costs out among the term of the contract to pay out of OpEx.
Government Cloud The Government Cloud is similar to private clouds in that systems and data is provisioned on dedicated computer systems in a hosted datacenter. This allows the hasting provider to separate the government data from shared systems and place higher security restrictions on the systems – such as what security certifications or governance laws the data center and staff with access to the government data must posses.
This model is also flexible in that a government organization may desire shared services between its different agencies to bring down costs, reduce information silos, better collaborate with one another, and have a single IDM and SSO solution for the government entity. This model should fit State Government well and even large Municipal governments where departments are not interconnected today.
Public Cloud A public cloud model is typically used where several organizations have similar requirements – such as a need for common applications, or a common development platform, or common infrastructure for running VMs. Enterprises that use public clouds seek to share infrastructure to realize some of the benefits of cloud computing, and reduce costs by using a shared multitenant systems.
This allows them to take advantage of the robust infrastructure from hosting providers without having a large upfront cost, and the ability to add a small number of users to a service, where deploying an on-premise solution for a low number of users does not make financial sense. This model may also offer a higher level of security, redundancy, and disaster recovery than work be financially possible vs on-premise deployment.
The drawback to this model is that the services may be less customizable than an on-premise or Private Cloud deployment. Integration with existing user applications and network services may not be possible or may be extremely limited. It would be difficult to meet certain security requirements such as PCI in a shared environment vs. a dedicated or on-premise environment.
Our Cloud Computing strategy although not very well evangelized is very aggressive in terms of it’s approach. We’ve been speaking about our investments of moving our software to cloud for over 5 years. Ray Ozzie providing an update to our employees back in 2005 when he joined Microsoft about our change in approach. He formally announced our Software and Services Strategy publically in 2008.
1) Microsoft is extending our enterprise software that runs core functions for enterprises today to the cloud at internet scale. You saw some of our customers that are already taking advantage of these capabilities . This is natural for us to do and is quite a significant investment in R&D. Gartner rates Microsoft as the only leader in the Super Collaboration and Productivity platform. We also are leaders across enterprise search, application platforms, development, etc. Thanks to our customers enterprise requirements and feedback we’ve been able to deliver a ton of innovation and enterprise capability with our on premises products. As I mentioned for the past number of years we’ve been developing data center scale offerings for these offerings and are delivering customer value with these today. This is really a natural progression for us to provide enterprise software services for customers to leverage our cloud scale and datacenter skills.
2) Microsoft is also ensuring our platforms around BPOS, CRM, and Azure delivers innovative new services that expand the way users, developers, and consumers can access and utilize the information they need and when they need it. This is similar to our approach with windows development ecosystem where we allowed businesses and ISVs to deliver all types of solutions on our platform. We have been moving this infrastructure to the cloud over the past 5 years with things such as xCRM azure CRM infrastructure services, Azure services platform, as well as ISVs building solutions on top of our Sharepoint Online Platforms. We we’re keys to collaborating on the underalying web services standards that actually allow us to delivery on this promise.
As you can see that even some of our toughest critics have provided some nods in terms of our approach and vision here.
The full Gartner quote is: “Microsoft's cloud strategy is visionary, and its ambitions are broad and span multiple dimensions including on premises and off-premises deployments and a variety of business models. No other vendor is attempting to deal with the cloud in all these dimensions simultaneously.”
Another Forrester “Windows Cloud Computing is a where and when …NOT AN IF.” Should Your Windows Apps Move To The Cloud? James Staten et al Forrester ResearchDecember 10, 2008
Another Gartner Quote “Strategic visionary plans for cloud platform technology (Azure, xRM), XTP (Dublin application server and Velocity distributed caching technology) and modeling-based software engineering (Oslo) use vast company engineering and business resources to surpass leading competitors.” Magic Quadrant for Enterprise Application Servers Yefim V. Natis et al September 24, 2009
Marketing Messaging _________________________________________________ Freedom - The freedom to access the technology you want, where and when you want it. The freedom to take advantage of the latest technology—either as a capital expense, or an operational one. The freedom to focus on running your business—not running IT systems.
Microsoft by extension - giving you the ability to make full use of the same Microsoft technologies you already know and trust, on a pay-as-you-go model. For a single department or an entire global organization. As a hybrid: a component part of your existing IT infrastructure or as a replacement.
Utility - It’s the applications you know, the platforms you know, and a data center infrastructure—all integrated into a cohesive whole. It’s Microsoft when you need it. Microsoft on your terms.
Physical security is but one part it. When you look, we ultimately need to make sure that since we are providing an internet based service, we are protecting customer’s data in a variety of ways. We look at this as multiple layers of protection. Microsoft is actually providing 9 layers of logical security for our customers and their service and data.
Filtering Routers: these are implemented to protect against any traffic we do not see as well constructed. One of the great benefits of providing a focused service like BPOS is we actually set up the routers to protect against any form of malform data. We block at an aggregate at the edge. Firewalls are set up as deny all.
Behind the firewalls we have an Intrusion Detection System. We have a very sophisticated correlation engine for any intrusion alert that we’re tracking 24 hours a day.
Below the IDS, we have a level System Level Security. When you look, the service operations organization actually has broad based, dual factor authentication. This means each individual within a support and service operations team have either some sort of secure ID card or a RSH secure ID token that is coupled with their role. Each individual must have a user ID and password and must apply a pin with their secure ID token. Based on the role they have, we grant access per individuals to the service.
Application Authentication: when you get below the System Level Security, the customers actually have application level authentication. We have a very sophisticated mechanism by which we provide access to data. The structure of the service provides users access to only those capabilities they are designed to have.
In the reseller model where a partner is actually providing the service to the customer, they have a level of application authentication that sits over top of that which the customers have. So we’re able to provide a very rich set of security protocols for our customers, as it relates to authentication to the different services.
Microsoft, as most people know, has a good history as relates to security and trustworthy computing. Our services are actually designed to make sure that we apply those security methods not only to the software, but we also treat that software as a service. So when we do our threat walling and follow the Windows initiative, we’re thinking about our applications as if they are delivered through the Internet. We apply a significant level of counter measures, such as buffer overflows and SQL injection, we make sure that the applications we’re running are sandboxed so you can’t activate elevated levels of security or access a higher level of authentication when you’re actually doing work within our application. Virus Scanning is provided for multiple set of capabilities. We actually virus scan at all over our server levels, we have in place intrusion detection at the host and we’re scanning our content via Microsoft ForeFront.
Then we have Separate Data Networks. When you look inside the data center, So what when we do our threat walling and follow the Windows initiative. These are implemented in a form that breaks it apart. For example, the data bases are on a separate sub net then from the actual content server or something that is an internet facing device.
When you look, even though we are an internet facing service, very few devices have direct access to the internet. All of the servers are on some form of non-routable subnet space.
Finally you are authenticated into the data. The data itself is never stored on the physical servers, we run separate data networks and the data is stored on dedicated storage devices. So when you look at the content, the content is actually being sent from dedicated storage devices, which allows us to provide significant levels of backup as well.
Microsoft® Office 365 delivers the power of cloud productivity to businesses of all sizes, helping to save time, money and free up valued resources. Office 365 combines the familiar Office desktop suite with cloud-based versions of Microsoft’s next-generation communications and collaboration services: Exchange Online, SharePoint Online and Lync Online. Office 365 is simple to use and easy to administer – all backed by the robust security and guaranteed reliability you expect from a world-class service provider.
Microsoft Office 365 Includes: Microsoft® Office Professional Plus The world’s leading productivity tool now seamlessly connected and delivered with cloud services – for the best productivity experience across the PC, Phone and Browser. Exchange Online Cloud-based email, calendar and contacts with always-up-to-date protection from viruses and spam. SharePoint Online Cloud-based service for creating sites to connect colleagues, partners and customers. Lync Online Cloud-based instant messaging, presence, and online meeting experiences with PC-audio, video conferencing and screen sharing.
Key Microsoft Office 365 Benefits: Anywhere-access to email, documents, contacts, and calendars on nearly any device Work seamlessly with Microsoft Office and the other programs your users already count on everyday Business-class features including IT-level phone support, guaranteed 99.9% uptime, geo-redundancy, and disaster recovery Pay-as-you-go pricing options which give you predictability and flexibility for all or part of your organization Latest version of Business Productivity Online Suite (BPOS), which has millions of business users today
Microsoft® Office 365 for small businesses offers an easy-to-use set of web-enabled tools for small businesses, independent consultants and professionals looking for business-class productivity services. Working with the tools people know and use today, Office 365 provides anywhere access to email, important documents, contacts, and calendars on nearly any device. It’s free for the first 30 days and then just $6 per user per month.
Microsoft® Office 365 for enterprises brings together cloud versions of our trusted communications and collaboration software with our familiar Office Professional Plus desktop suite. It is designed to help meet your IT needs for robust security, 24/7 reliability, and user productivity.
We have a variety of plans to meet the needs of businesses of all sizes and varying IT needs. Priced from $2 - $28 per month per user, each plan has the same 99.9% uptime guarantee and includes the security and support you expect from Microsoft. Office 365 offers great flexibility by allowing businesses to provide users access to only the services they need and pay-as-you-go pricing options.
Microsoft® Office 365 for education provides students with easy-to-use cloud-based productivity tools – while helping educational institutions free up resources. By eliminating the time and effort spent managing servers, IT staff can deliver the latest services to students while still maintaining control. It’s free for students and priced from $4 - $28 per month per user for faculty and staff. Solutions for K-12 K-12 institutions have a very specific set of requirements for cloud-based messaging and collaboration. Microsoft Office 365 for education brings together a rich set of free online solutions built to provide child safety and security to the K-12 market
Microsoft Cloud Vision and Strategy
“A standardized IT capability, such as software,
app platform, or infrastructure, delivered via
Internet technologies in a pay-per-use and
“How To Message "Cloud" Offerings And Not Get Lost In The Fog”,
Forrester Research, Inc., July 2009
“Enables us to reduce IT operational costs
by roughly 30%”- Glaxo Smith Kline
“We expect a savings of
approximately 40 percent
City of Carlsbad, CA
Period Average Usage
No one questions that Microsoft can write great
software. Customers want to know if we can be
innovative, scalable, reliable in the cloud.
MICROSOFT IS A LEADER IN THE CLOUD
Established in 1996Established in 1996
Used by 450M
Used by most Fortune
500, State and Local,
The decision was not difficult.
Enterprise foundation for an enterprise cloud offering.
IT Project and
DB Mgmt (12/08)
Dynamic Data Center Toolkit
Dynamic Data Center Toolkit
Vendor Focus for Microsoft: Cloud Computing Is the Next Big Thing
David Mitchell Smith e al
July 24, 2009
“Microsoft's cloud strategy is visionary, and its ambitions are
broad and span multiple dimensions including on-premises
and off-premises deployments and a variety of business
SOURCE: 10K & 20K SEC Filings 12/31/08 Except Oracle 5/31/09, RIM, Sony and Nintendo 3/31/09
See a preview at http://research.microsoft.com
Microsoft takes a long term
approach to on-premise and
online technology innovation
Then we add 9 layers of logical security…
Authentication to Data
Separate Data Networks
Systems Level Security
Intrusion Detection System
Non constructed data
Geo –redundant Data Centers
Secured via SSL
ITIL/MOF security framework