The document discusses Microsoft's cloud computing services and strategy. It provides an overview of Microsoft's cloud infrastructure including over 100 data centers worldwide. It also describes Microsoft's private and public cloud offerings like Windows Azure, SQL Azure, and Office 365. Microsoft's strategy is to provide hybrid cloud options that allow customers to choose between on-premises, private cloud, and public cloud deployment.

1. Microsoft Cloud|ServicesPeter de HaasOnline Strategy Managerpeter.dehaas@microsoft.com@dehaaspeter7 december 2010

2. AgendaIntroductieCloud ComputingOntwikkelingenbinnen Microsoft <pauze van 15 minuten>KlantcasesVerandering, de marktPartner Eco SysteemDe toekomst

3. Microsoft The Netherlandsb2b & b2c645 and 380education mark/sales/serv38,7‘realize potential’

4. “A PC on every desk and in every home”

5. Cloud Computing

6. CLOUD COMPUTINGINFRASTRUCTUREPLATFORMSOFTWAREAS A SERVICEAS A SERVICEAS A SERVICEIT as a Service

7. Cloud computing taxonomyIaaSPaaSSaaSTraditional ITApplicationsApplicationsApplicationsApplicationsYou manageDataDataDataDataYou manageRuntimeRuntimeRuntimeRuntimeManaged by vendorMiddlewareMiddlewareMiddlewareMiddlewareManaged by vendorYou manageO/SO/SO/SO/SManaged by vendorVirtualizationVirtualizationVirtualizationVirtualizationServersServersServersServersStorageStorageStorageStorageNetworkingNetworkingNetworkingNetworking

8. Generational ShiftBusinessEconomicTechnologyCentralized compute & storage, thin clientsHigh upfront costs for hardware and softwareOptimized for efficiency due to high costPCs and servers for distributed compute, storage, etc.Perpetual license for OS and application softwareOptimized for agility due to low costPay as you go, and only for what you useLarge DCs, commodity HW, scale-out, devicesOrder of magnitude better efficiency and agility

9. Economics of Multi-TenancySINGLE-TENANT APPLICATIONEach client has a dedicated instanceInstances separately administratedDedicated resourcesCosts grow with scaleClientClientClientInstanceInstanceInstanceAdminsAdminsAdminsResourcesResourcesResources

10. Economics of Multi-TenancyMULTI-TENANT APPLICATIONOne instance for all clientsOne group of administratorsFixed resources are sharedClientClientClientInstanceInstanceInstanceResourcesResourcesResourcesAdminsAdminsAdmins

11. Datacenter Service Delivery Is EvolvingPublicCloudTraditional ComputingPrivateCloud

12. Greater Business Agility Reliability Of ServicesRespond to business demands more effectivelyManage Costs Focus on solving business problems, not on infrastructure issuesShift from capital expenditures to lowering operational expenditures Drivers for Private CloudMulti-TenantSelf-ServiceMetered by UseScalableElasticEmerging Private Cloud Attributes

13. Private Cloud, Public CloudSMB(<200 servers)Government(Fragmented)AcademicSize represents number of servers in marketPublic Cloud EconomicsMidsize(200-1,500 servers)Enterprise(1,500+ servers)Government(Consolidated)Private Cloud PreferenceSource: Microsoft

14. Private Cloud, Public CloudMidsize Company ExampleHPC/BatchDev/TestWebPackaged Biz AppsComm & CollabCustom Biz AppsFile ServersPublic Cloud EconomicsPrivate Cloud PreferenceSource: Microsoft

15. De Toekomst van InfrastructuurHosted ApplicatiesCloud ServicesOn-PremisesServersIn/OutsourcingEfficiencies of scaleSpecialized ServicesSupplementary and Value AddEfficiencies of scaleScale on demandUniversal FunctionalityControl & ownershipStrategic capabilitiesCustomizationInfrastructure TCOExternal expertiseTime to market15

16. Ontwikkelingenbinnen Microsoft

17. Cloud|Services Platform3rd PartyApps & SolutionsLive ServicesOnline ServicesBuilding Block ServicesDatacentersComputersNetworks

18. De Microsoft Cloud~100 + Data Centers WereldwijdQuincy, WAChicago, ILSan Antonio, TXDublin, IrelandGeneration 4 DCs

19. Datacenter TransformatieMicrosoft Datacenters Generatie 4Generatie 1Generatie 2Generatie 3Modulair datacenter(toekomst)Co locationDichtheidContainersIT PAC(Pre-Assembled Components)ContainersServerCapaciteitRack Schaalbare en duurzame datacentersSchaalbaarheidDensity and sustainability

22. http://www.microsoft.com/environment/cloud.aspx

23. The data centre – one of the largest construction projects in the Republic of Ireland over last 12 months

24. has taken approximately one million man-hours to complete and involved a workforce close to 2,100 at peak. Making use of the low ambient air temperatures in Ireland, the facility uses ‘free air’ cooling almost exclusively.

25. This means the operating environment can be maintained without mechanical or refrigerated cooling systems for over 95% of the time.

26. Mechanical cooling typically represents ~38% of the power consumed in traditional data centres. This cooling system eliminates the necessity for chilled water cooling systems, used in traditional data centres. This saves ~18 million litres of water each month. Beveiliging & Compliancy ProgrammaEenrisicogebaseerde, integraleaanpakvoor het optimaalbeheren en leveren van data en dienstenSecurity Management Security Monitoring & Response, Threat & Vulnerability ManagementDataAccess Control & Monitoring, File/Data IntegrityUserAccount Management, Training & Awareness, ScreeningApplicationSecure Development Lifecycle, Access Control & Monitoring, Anti-MalwareHostAccess Control & Monitoring, Anti-Malware, Patch & Config MgmtInternal NetworkDual-factor Authentication, Intrusion Detection, Vulnerability ScanningFacilityVideo Surveillance, biometrics, Access ControlNetwork perimeterEdge Routers, Firewalls, Intrusion Detection, Vulnerability ScanningSAS 70 Type II attested data centers and services

27. ISO 27001 certified data centers

28. ISO 27001 certified services, FISMA DCs and services,21 CRF Part 11 SharePoint Online DConsumer Cloud Services530M Active Windows Live IDs368M People Using HotmailOver 4B WW Queries Each MonthOver 459M Unique Users2B Unique Calls Per YearOver 6M Songs In The Catalog14B Ads Per MonthOver 303M Users Each Month25M People On Xbox LiveCLOUD SERVICESTV/HOMEPCMOBILE

29. Cloud Services For BusinessesPLATFORMBUSINESS USERSBUSINESS APPSCLOUD SERVICESBUSINESS APPSCOLLABORATIONCOMMUNICATIONSIDENTITYDESKTOP MGMTPLATFORMDATABASEPRODUCTIVITYON-PREMISES & HOSTERS

30. Productiviteit nu en in de toekomstHet Nieuwe WerkenEnterprise Content ManagementBusiness IntelligenceEnterprise SearchUnified CommunicationsCollaborationWerken waar en wanneer je wiltmetPC, mobiel, en browserCloud is geen “ultimatum” maar eenkeuzeOnlineEigen datacenter

31. Microsoft Office 365BEST PRODUCTIVITY EXPERIENCEWork together, smarterWORKS WITH WHAT YOU KNOWFamiliar toolsROBUST SECURITY AND RELIABILITY99.9% uptime. Guaranteed.IT CONTROL AND EFFICIENCYKeeps you in controlACCESS ANYWHERE*Solve problemsfrom more placesIncludes:* Access from mobile devices depends on carrier network quality and availability** “Connect Securely” is not a guarantee of 100% connection security.”

32. How Microsoft Views the CloudFundamentalsAutomatedServiceManagementHighAvailabilityScale outMulti-tenancyConsiderationsLocationOn premisesOff premisesInfrastructureHeterogeneousHomogeneousOpExCapExBusiness modelLease/RentedOwnedOwnershipThird PartySelfManagement

33. Platform TodayPlatform as a ServiceServer, VM, Network, Storage, AppAppPatch, Service Release, New VersionMaintained for YouAssembly RequiredReady-Made ServicesCustom, InconsistentStandardizedPlan for Peak LoadOn-Demand ScaleBuilt to Avoid & Recover from FailureBuilt to Expect & Withstand Failure

34. Het Windows Azure PlatformOntwikkelaarGebruik van bestaandekennis en toolsManagementRelational dataComputeStorageManagementplatformAppFabricInformation MarketplaceBilling & PaymentsConnectivityAccess controlReporting & BIFlexible APIs

35. Microsoft’s Server & Cloud Computing StrategyServices PlatformServer PlatformCustomerDatacenterMicrosoft DatacenterCustomer or Partner DatacenterPrivate or Public CloudWindows ServerMicrosoft CloudWindows AzureTraditionalDatacenterWindows ServerPrivate or Public CloudWindows Azure platform applianceOn-Premises OptionsOff-Premises Options (Private or Public)Windows AzureSQL AzureSystem CenterVisual StudioWindows Azure Platform Appliance Specified Hardware (Compute/Network/Storage)Software acquired as a serviceMicrosoft / Partner / Customer delivers IT serviceWindows ServerSQL ServerSystem CenterVisual StudioTraditional Datacenter HardwareCustomer/Partner Hardware ChoiceSoftware purchased as a productCustomer / Partner delivers IT serviceCommonDevelopment ToolsManagementIdentity

36. Demand Side Economies of ScaleImproving resource utilization

37. Demand Side Economies of ScaleIndustry Variability•turbotax.com•taxcut.com•hrblock.com•taxact.com•target.com•walmart.com•toysrus.com•barnesandnoble.com~10x normal load(Tax season)~4x normal load(Holiday shopping)Jan 2009Jan 2010Jan 2009Jan 2010Source: AlexaSource: Alexa

38. Demand Side Economies of ScaleTime of DayBING SEARCHES – JAPAN VS. UKQuery VolumeSource: Microsoft

39. The Windows Azure PlatformWindows Azure is an internet-scale cloud services platform hosted in Microsoft data centers around the world, proving a simple, reliable and powerful platform for the creation of web applications and services.

40. Defining Windows Azure ArchitectureThe Fabric Controller communicates with every server within the Fabric. It manages the Windows Azure operating system, monitors every application, decides where new applications should run – optimizing hardware utilization.

41. Service Management is performed by the Fabric Controller, which controls all the resources within the data center. The Fabric Controller deploys your service and monitors the overall health of the fabric.Security and Control State-of-the-art physical security processes combined with strictly controlled OS access model. Data is replicated in multiple fault domains in location selected by the customer. Virtualized Computation provides massive application scalability. Customers can build a combination of web and worker roles. Those roles can be replicated as needed to scale the applications and computational processing power.Storage Services allow customers to scale to store large amounts of data – in any format – for any length of time, only paying for what they use or store.State-of-the-art data centers located around the world. Host your applications and data securely, accessible from everywhere you allow.Windows Azure Automates the Management of Your IT Resources

42. Service Management in Windows AzureGOAL: Automated application management and controlFabric: The collection of servers Multiple VMs per serverChoose from four different VM sizes, based on your application needsFabric Controller performs service managementYou tell it what to do—it figures out howAutomatically scale up, scale down, update or roll application back to a previous versionSimple system management and deployment APIs =Fabric Agent

43. On off, sistemas batch, “Growing Fast“ “On and Off “ InactivityPeriod Compute Compute Average UsageUsageAverageTime Time On & off workloads (e.g. batch job)Over provisioned capacity is wasted Time to market can be cumbersome Successful services needs to grow/scale Keeping up w/ growth is big IT challenge Complex lead time for deployment“Unpredictable Bursting“ “Predictable Bursting“ Compute Compute Average Usage Average Usage Time Time Unexpected/unplanned peak in demand Sudden spike impacts performance Can’t over provision for extreme cases Services with micro seasonality trends Peaks due to periodic increased demandIT complexity and wasted capacity Workload Patterns Optimal For Cloud

44. Windows Azure Purchasing OptionsSUBSCRIPTIONCONSUMPTIONVOLUME LICENSING“Pay as you go and grow”“Value for a commitment““Coordinated purchasing”Low barrier to entry and flexibility

45. Optimized for cloud elasticity

46. Discounts for commitment

47. Plans for payment predictability

48. Unified purchasing through EA

49. Introduction to volume discounts DataMarket35+ Content partners60+ Data offerings100+ Offers coming soon

50. What It IsAppAppWindows Azure Platform in Your DatacenterWindows Azure & SQL AzureDesigned for Unlimited Scale & Multi-TenancyIdentical to Hardware in Microsoft’s Windows Azure DatacentersDelivered by a Choice of Hardware PartnersPowered byReference HardwareBenefitsIntegration ComponentsIntegration ComponentsVMVMPhysical ControlGeographic ProximityRegulatory ComplianceData Sovereignty

52. AgendaIntroductieCloud ComputingOntwikkelingenbinnen Microsoft <pauze van 15 minuten>KlantcasesVerandering, de marktPartner Eco SysteemDe toekomst

53. Klant Cases

54. Why Customers Are Embracing the Cloud

55. Cloud ComputingReduced CostsFamiliar User Experience$Variable cost model for increased flexibilityImproved productivityEase of use for faster adoptionBetter connection with remote teams“The move to Microsoft Online Services will help GlaxoSmithKline cut operational costs by an estimated 30 percent....” – Ingo Elfering, Vice President of Information Technology Strategy, GlaxoSmithKline“...all of our associates...were used to the look and feel of Microsoft. It was very important to give them something they were familiar with.” – Michael Wright, Senior Director for North American IS Deployment, Coca-Cola Enterprises

57. Example: Implementation costs for a new projectImplementation cost for a new SaaS implementation.Conclusion: We spent over A HALF million up front in the first year on things that are infrastructure related. With Windows Azure, we could avoided having to pay money until we are actually bringing in revenues for our product.$150k / year + $250k for system designIT ResourcesSpecialized IT resources: system architects and system administratorWe spent $250 for architecture for the SLA we need (to architect the load balancing, redundancy, scaling, latency handling, etc.) and $150k per year to maintain it. $50k$50kRelational database Then came the data requirements.$20k$20kInfrastructure softwareServer, virtualization, managementInfrastructure softwareServer, virtualization, managementWe had to estimate our traffic, storage, bandwidth , and computing power to figure out what to lease, and build out the rest – we needed redundancy, scaling, load balancing, and latency handling. $20k$20kHardware for SLASLA: geo-scaling, geo-fault tolerant, redundant, etc.Hardware for SLASLA: geo-scaling, geo-fault tolerant, redundant, etc.$30kInfrastructure HardwareServers, StorageWe host our datacenter externally for rackspace, power, and networks” and provide our own servers, storage.$15k/yrHosting costsPower, racks, and network traffic provided by hosting company at approx $1,200/mo$18k/yrWith Azure, we would spend about 18k/year to deliver our solution for our current capacity. We may double or triple that, which would be a good problem!Traditional52Azure

58. Case StudyBenefit Drivers:Efficiency

59. Flexible pricing model

60. Agility

61. Quick development

62. Global scalability

63. Trustworthy

64. World-class database technologySituation/Solution:SugarCRM wanted to ensure that its software would be available to customers on as many technology platforms as possible.It ported its applications to the Windows Azure™ platform so that its VARs could deploy SugarCRM with minimum capital expense and provide customers with a highly reliable, scalable, pay-as-you-go CRM solution.Key Advances:The ability to quickly port its product to scale in real-time across geographically dispersed data centers, and deliver high availability without investing in additional infrastructure.CRM Vendor Quickly Adapts to New Platform, Adds Global, Scalable Delivery Channel “I’ve been astounded at how easy it was to make SugarCRM work well inside of Windows Azure. The total effort on our part was two engineers for about two weeks.”—Clint Oram, Vice President of Products, SugarCRMCompany Profile:SugarCRM provides commercial open-source customer relationship management (CRM) software to customers and value-added resellers (VARs). Headquartered in Cupertino, California, it employs 140 people.

65. Case StudyBenefit Drivers:Easy, Efficient Deployment

66. Lower Costs, High Scalability

67. Excellent Customer SolutionSituation/Solution:3M wanted to make its Visual Attention Service (VAS) available to customers as a Web-based application, with high performance, scalability, and low infrastructure and management costs. 3M used the Windows Azure™ platform to deliver the VAS solution to customers, taking advantage of Microsoft® data center infrastructure and service management to keep performance high and costs low.Key Advances:The ability to make an innovative service available to a global audience, while keeping costs low and getting to market quickly.3M Launches Web-based Visual Attention Service to Heighten Design Impact“Windows Azure helps 3M customers take advantage of complex algorithms that encapsulate 30 years of research and get simple, powerful results from their browser, almost instantly.”—Terry Collier, Marketing Manager, 3MCompany Profile:With 75,000 employees and operations in more than 60 countries, 3M develops an extensive range of consumer and industrial products. Well-known 3M brands include Scotch, Post-it, Thinsulate, and Scotch-Brite.

69. Veranderingen, de markt

70. Consumer <=> End User

71. BLENDS

72. Economies of scaleEconomies of skill

73. De Waarde van Cloud ComputingBron: http://www.mckinseyquarterly.com/Business_Technology/BT_Strategy/How_IT_is_managing_new_demands_McKinsey_Global_Survey_results_2702?gp=1

74. Adoptie van de CloudBron: http://www.mckinseyquarterly.com/Business_Technology/BT_Strategy/How_IT_is_managing_new_demands_McKinsey_Global_Survey_results_2702?gp=1

75. Partner Ecosysteem

76. Partner EcosystemSolutionTransactionEnterpriseMidmarketDistributorLAR/DMRSI & VAPHost& TelcoISVSystem Builder OEMSmall BusinessRetailMarketing Agencies& Independent Agents

77. CLOUD 2000s & ToekomstCloud Computing, Social NetworksCloud|ServicesINTERNET Midden‘90sBrowsers, Email, eCommerce, Hosting, Wi-Fi, Web 2.0CLIENT/SERVER Midden‘80sDistributed ComputingMARKT TRANSITIESPC & APPS Begin ’80sWord Processor, SpreadsheetsDOS, GUI, Windows

79. Cloud Oplossingen – Mogelijkheden met Microsoft VerkoopOplossingenop en rond MicrosoftCloud ServicesBouwOplossingenop basis van Microsoft TechnologieHost Oplossingenen lever totaaloplossingenaan klantenResellServiceSupportMulti vendor‘Private’ CloudAfwijkende SLAMaatwerkIntegratieOntwikkeling

80. How We Work with ISVs:Embedded Windows Azure platformDiscountPartnerPartner offeringCustomerPartner offeringApplications that include the Windows Azure PlatformCustomer buys applications and Windows Azure from Partner

81. Partner buys Azure from MicrosoftHow We Work with ISVs:Built for Windows Azure PlatformApplications built for Windows Azure PlatformCustomer buys Azure from Microsoft

82. Customer buys applications from partnerPartner offeringPartnerCustomerCustomerPartner offering

83. De toekomst

84. Cloud InnovationFrom Research to Product Development~ 10 Years out~ 5 Years out~ 1-5 Years out

85. Peter de Haaspeter.dehaas@microsoft.com@dehaaspeter© 2010 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.