This document discusses how cloud computing has evolved and the benefits it provides businesses. It begins with defining cloud computing and its history. It then discusses how the cloud has grown tremendously in recent years in terms of infrastructure, platforms, and services offered by Microsoft Azure. The document also covers how the energy industry can benefit from the cloud in areas like IoT, analytics, and modernizing applications. It provides examples of cloud projects and emphasizes that the cloud, when implemented properly, can be feature rich, compliant, secure, performant, cost effective, and easy to experiment with.

1. What Can Cloud Do
for Your Business?
Jacob Saunders
CTO, 10th Magnitude

2. What is this “cloud” anyway?
What has cloud evolved into?
Why does the energy industry care?
Is the cloud secure?
The Internet of Things & Analytics
How can I modernize my applications?
Where do I start?
Agenda

3. Timeline
1997
Term “cloud computing” coined
1999
Salesforce.com founded
2000
Grid computing introduced
2000
Dot-com bubble bursts
1998
VMWare founded
2006
Amazon launches EC2
2008
Microsoft announces Azure
2010
Azure commerciallyavailable
1960: John McCarthy
opined that “computation
may someday be
organised as a public
utility”

4. Cloud Momentum Continues to Accelerate
“If you’re resisting the cloud because of security concerns, you’re running out of
excuses.”
“The question is no longer: ‘How do I move to the cloud?’ Instead, it’s ‘Now that I’m
in the cloud, how do I make sure I’ve optimized my investment and risk exposure?”
“By 2020 clouds will stop being referred to as ‘public’ and ‘private’. It will simply be
the way business is done and IT is provisioned.”

5. >70%
Fortune 500 companies
deployed on Azure
122%
YoY Growth for Azure
Compute
>10Trillion
Azure Storage Transactions
during December ‘15 alone
>90trillion
Storage objects
in Azure
>2 Trillion
Messages/week in Event Hubs
551million
Azure Active
Directory users
Azure momentum
Microsoft Confidential

6. 127%
YoY growth in cores
400 K +
Servers added in 2015
75 K
Provisioning Servers / Month
2009 2010 2011 2012 2013 2014 2015
Server Counts
The amount of servers added in
all of 2011 Microsoft now adds
every day!
• 122% YoY growth in GB RAM (>12.9 M)
• 140% YoY growth in all-up revenue
• 40% of VM Cores are premium sizes

7. What is this “cloud” anyway?
What has cloud evolved into?
Why does the energy industry care?
Is the cloud secure?
The Internet of Things & Analytics
How can I modernize my applications?
Where do I start?
Agenda

8. Hyper scale Infrastructure is the enabler
27 Regions Worldwide, 22 online…huge capacity around the world…growing every year
 100+ datacenters
 Top 3 networks in the world
 2.5x AWS,7x Google DC Regions
 G Series – LargestVM in World,32 cores, 448GB Ram, SSD…
Operational
Announced/Not Operational
Central US
Iowa
West US
California
East US
Virginia
US Gov
Virginia
North Central US
Illinois
US Gov
Iowa
South Central US
Texas
Brazil South
Sao Paulo State
West Europe
Netherlands
China North *
Beijing
China South *
Shanghai
Japan East
Tokyo,Saitama
Japan West
Osaka
India South
Chennai
East Asia
Hong Kong
SE Asia
Singapore
Australia South East
Victoria
Australia East
New South Wales
* Operated by 21Vianet
India Central
Pune
Canada East
Quebec City
Canada Central
Toronto
India West
Mumbai
Germany North East
Magdeburg
Germany Central
Frankfurt
United Kingdom
Regions
North Europe
Ireland
East US 2
Virginia

9. Microsoft’s network is one of the two largest in the world
(the other one is NOT Amazon’s)

10. Platform Services
Security &
Management
Infrastructure Services
Web Apps
Mobile
Apps
API
Management
API
Apps
Logic
Apps
Notification
Hubs
Content Delivery
Network (CDN)
Media
Services
HDInsight Machine
Learning
Stream
Analytics
Data
Factory
Event
Hubs
Mobile
Engagement
Active
Directory
Multi-Factor
Authentication
Automation
Portal
Key Vault
Biztalk
Services
Hybrid
Connections
Service
Bus
Storage
Queues
Store /
Marketplace
Hybrid
Operations
Backup
StorSimple
Site
Recovery
Import/Export
SQL
Database
DocumentDB
Redis
Cache Search
Tables
SQL Data
Warehouse
Azure AD
Connect Health
AD Privileged
Identity
Management
Operational
Insights
Cloud
Services
Batch Remote App
Service
Fabric Visual Studio
Application
Insights
Azure SDK
Team Project
VM Image Gallery
& VM Depot

11. The Microsoft Platform Strategy
Public, Global, Shared DatacentersMicrosoft Azure Stack
& Cloud Platform System
Security&
Management
Public
Cloud
Platform
Hybrid
Operations
Security&
Management
Hybrid
Operations
Software As a Service
• Office 365
• Microsoft CRM
• Dynamics AX
• VS Online
• Etc.

12. What is this “cloud” anyway?
What has cloud evolved into?
Why does the energy industry care?
Is the cloud secure?
The Internet of Things & Analytics
How can I modernize my applications?
Where do I start?
Agenda

13. Explosion of Connected
Things & Data
• Smart meters & grids
• Sensorized rigs &
pipeline systems
• Connected homes
• Environmental &
satellite data
• Batteries everywhere!
Right-Sizing Difficult
• Commodity price-
driven capital budgets
• Volatile markets
• Usage patterns difficult
to predict
Security & Compliance
• Exploration disruption
• Attacks on SCADA
systems
• EHS systems
• Safe Harbor Repeal
Energy Industry Considerations
Increasing Functional and Elasticity Demands

14. What is this “cloud” anyway?
What has cloud evolved into?
Why does the energy industry care?
Is the cloud secure?
The Internet of Things & Analytics
How can I modernize my applications?
Where do I start?
Agenda

15. Azure Compliance
HIPAA /
HITECH
FedRAMP JAB
P-ATO
FIPS 140-2 FERPA DISA Level 2 ITAR-readyCJIS21 CFR
Part 11
IRS 1075 Section 508
VPAT
ISO 27001 PCI DSS Level 1SOC 1 Type 2 SOC 2 Type 2 ISO 27018Cloud Controls
Matrix
Content Delivery and
Security Association
Shared
Assessments
European Union
Model Clauses
United Kingdom
G-Cloud
Singapore
MTCS Level 3
Australian Signals
Directorate
Japan
Financial Services
China Multi
Layer Protection Scheme
China
CCCPPF
New
Zealand
GCIO
China
GB 18030
EU Safe
Harbor
ENISA
IAF

16. Azure Security

17. Azure Security

18. Germany: A New Microsoft Data Center Region
Central US
Iowa
West US
California
East US
Virginia
US Gov
Virginia
North Central US
Illinois
US Gov
Iowa
South Central US
Texas
Brazil South
Sao Paulo State
West Europe
Netherlands
China North*
Beijing
China South*
Shanghai
Japan East
Tokyo, Saitama
Japan West
Osaka
India South
Chennai
East Asia
Hong Kong
SE Asia
Singapore
Australia South East
Victoria
Australia East
New South Wales
India
Central
Pune
Canada East
Quebec City
Canada Central
Toronto
India West
Mumbai
Germany North East
Magdeburg
Germany Central
Frankfurt
United
Kingdom
Regions
North Europe
Ireland
East US 2
Virginia
Global Investment
100+ datacenters in 40 countries, 40 regions
1+ million servers
$15B+ infrastructure investment
www.microsoft.com/datacenters
New Microsoft Data Center
region 2016:Germany
Available to all EU/EFTA
customers
Microsoft Cloud Germanyoffers storage of customer data intwo datacenters inFrankfurt
and Magdeburg to its customers andpartners. These datacenters are characterized bythe
following features:Selected afterglobal criteria set forthe Microsoft commercial cloud.
• Leased from establishedproviders in Germany
• Data Trusteecontrols and supervises all access by Microsoftor others
• Data Trusteepersonnel adhereto Microsoft’s exacting standards
for datacenters operations
Microsoft Data Center regions
follow the globallydefineddefault
IT Servers & Storage meetMicrosoft specifications
Operations Monitoring & Security
Products Office 365, Microsoft Azure, Microsoft Dynamics
Security Barriers, Fencing, Alarms, Secured Operations Center
Cooling Chillers Air Handling
Power Primary UPS Generator
AnnouncedOperational
18

19. A German Data Trustee Controls Data Access
RoleBased Access Control
(RBAC)tools controlall access
to customerdata
Only the German data trustee
can access servers that house
customerdata
Microsoftpersonnel
don’t haveanyrights to grant
access to customer data
Microsoftpersonnelcan’t
access servers housing
customer data without
supervisionbydata trustee
The German data trustee performs or monitors any operations or other tasks that require
access to customer data or the infrastructurein which customer data resides
Access for deployment of
software updates must be
granted by the German data
trustee
Service health monitoring
tools do not have access
to customer data
All customer data
• Virtual machines
• Emails,attachments,
images
• Storage blobs
• Database contents

20. What is this “cloud” anyway?
What has cloud evolved into?
Why does the energy industry care?
Is the cloud secure?
The Internet of Things & Analytics
How can I modernize my applications?
Where do I start?
Agenda

21. Data AnalyticsConnectivityThings
• Things – Physical “things” such as line-of-business assets, including industry devices or sensors
• Connectivity – Those “things” that have connectivity to either the internet or to each other or humans
• Data – Those “things” have the ability to collect and communicate information – this information may include
data collected from the environment or inputted by users
• Analytics – The analytics that come with the data produce insight and enable people or machines to take
action
Defining Internet of Things

22. Microsoft Azure IoT Suite
Devices Device Connectivity Storage Analytics Presentation & Action
Event Hubs SQL Database
Machine
Learning
App Service
Service Bus
Table/Blob
Storage
Stream Analytics Power BI
External Data
Sources
DocumentDB HDInsight Notification Hubs
External Data
Sources
Data Factory Mobile Services
BizTalk Services
{ }

23. Microsoft Azure IoT Suite - PaaS

24. What is this “cloud” anyway?
What has cloud evolved into?
Why does the energy industry care?
Is the cloud secure?
The Internet of Things & Analytics
How can I modernize my applications?
Where do I start?
Agenda

25. Pets vs cattle
Not Cloud
Emotional attachment
Cloud
Customer Focus
vs.
Servers are precious
Takes time to carefully configure each box
Aligned to server metrics
Servers are resources to get a job done
Automates activity to go fast
Aligned to business outcomes

26. Developer
workstation
• Each developerneedsto run
the entire application
• Always need to get latest
versions of irrelevant code
Development
• IT creates and maintains a few
large development
environments
Staging / UAT
• Entire application tested
monolithicallyand in its
entirety
Production
• Applicationis deployedin its
entirety causing downtime,
needlessservice disruptionand
risk
• Developer runs only relevant
components
• Loosely coupled interfaces
allow dependentcomponent
version drift
• Developerscan create and
destroy many smaller
environments
• Supports multiple levelsof
integration (version,branch)
• Targeted testing reduces cycle
time and especiallyenduser
time investment
• Can deploycomponents on a
rollingbasis independently,
increased scalabilityand
robustness
OldNew
Web Web
AppApp
Services
ESB
Database
Drive better development and testing practices

27. Secondary Data Center
California
Primary Data Center
East CoastWeb Web
AppApp
Services
ESB
Database
Web Web
AppApp
Services
ESB
Database
• Full stack in each location
• Database replication or other
synchronization mechanisms
• Full deployments to each DC,
every time
• “Giant lever” failover models
• Inefficient use of resources,
requires planning & insight into
future usage patterns
• Latency issues
Scalability and global reach – the old model

28. West US
California
West Europe
Netherlands
North Europe
Ireland
East US 2
Virginia
Scalability and global reach – the new model
Geopolitical region pairs, 100+ DCs in 27 regions
Top 3 networks in the world
CDN / Media Services / Search / Traffic Manager
Global Caching (Redis)
IaaS & PaaS data layer options (Azure DW, SQL Azure, etc.)
Identity / Authentication / Security

29. What is this “cloud” anyway?
What has cloud evolved into?
Why does the energy industry care?
Is the cloud secure?
The Internet of Things & Analytics
How can I modernize my applications?
Where do I start?
Agenda

30. Non-Production Production
Getting started with Azure
Your IT Portfolio ($$, Resources, Effort)
50%
App Operations
25%
Existing
Custom apps
10%
New business
apps
15%
Packaged apps
1. Application Operations
• You have A LOT of this…50-70% or more???
• It’s used 5-10% of the time
• Projects hereare Low Risk,can have big ROI
4. Existing Production Apps you Built
• Leave80% of existing custom apps alone
• MOVE SMALL and high burstworkloads
3. Apps you would LIKE to build
• Use the AzurePaaS building blocks
• More Productive,Less InfrastructureWork
2. Apps you Bought
• What can you STOP doing…use the SaaS model
• Microsoft(O365/Exchange/SharePoint,CRM,
Visual Studio Onlineetc.)

31. Leading Street Sweeper
Manufacturer - PoC
Challenge
• Enable the client's street
sweeper product line for
remote monitoring,
maintenance, and predictive
analytics deployed across a
large number of
municipalities.
Solution
• 10th Magnitude conducted a
POC using Azure IoT Suite to
show how data from
sweepers could be ingested
into Azure, analyzed and used
to enable better water
conservation and improve
operator usage.
Result
• Based on the success of the
POC, the client expects to
implement and scale the IoT
solution across 20K to 40K
street sweeper units.
Incorporating these
capabilities will improve the
client's market positioning by
adapting to the needs of
water-conscious
municipalities.
Cost: ~ $25,000 USD

32. Leading Ceiling Fan
Manufacturer - PoC
Challenge
• Client has implemented IoT
in their flagship line, with
controls for fan speed,
lighting, audio controls, etc.
• Wishes to integrate
additional sensors and data
points
• Integrate with Nest
thermostats and Apple
Home.
Solution
• 10th Magnitude created a
field gateway based on a
Raspberry Pi running
Windows 10 and interfaced
with Nest and the fan
Result
• Able to convey current
thermostat, fan, & outdoor
temperature settings AND
enable cloud based home
automation.
• Predictive model for
suggesting optimal
temperature control
• Visual Power BI dashboard
of sensor output
Cost: ~ $52,000 USD

33. Retail energy supplier in the
Northeast U.S.
Challenge
• Help client set up a
highly available SQL
cluster in Azure to
support an LOB
application.
Solution
• 10th Magnitude
automated
deployment of the SQL
cluster in Azure as well
as core infrastructure
(network, domain
controller) using ARM
templates and
PowerShell DSC.
Results
• The client is now able
to perform one-touch
deployment of a HA
SQL cluster in Azure,
simply by filling in
parameters in a
template and running
it.
Cost: ~ $60,000 USD

34. Feature rich
Compliant & secure
Performant
Cost effective
Easy to experiment with
If you “do it right,” cloud is:

35. Thank You!
jsaunders@10thmagnitude.com