Anja Krusel, CFO at Microsoft - Cloud Computing Workspace Of The Future
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Anja Krusel, CFO at Microsoft spoke at the CFO Event in Frankfurt 2013
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Anja Krusel, CFO at Microsoft - Cloud Computing Workspace Of The Future
- 1. Anja Krusel CFO Microsoft Germany
- 5. Games and Skype Dynamics Servers, Tools Entertainment and Cloud
- 6. Why Cloud?
- 7. Einsatzszenarien In welchen Fällen kann Cloud Computing seine Stärken ausspielen? Periode Last Last Last ohne Verbrauch Zeit Zeit Zeit Temporay need of Always Access Flexible Growth Temporary peaks resources wherever you are
- 8. Open The Door to Cost Reduction
- 10. Convert upfront capital expenses to Convert upfront capital expenses to Traditional IT lower operating costs lower operating costs Consume the right amount of Consume the right amount of technology without overspending technology without overspending Under-capacity Over-capacity Scale up or down to meet business Scale up or down to meet business requirements requirements Time Take on new opportunities that Take on new opportunities that Cloud were previously cost prohibitive were previously cost prohibitive Enable IT to develop Enable IT to develop new business-focused new business-focused core competencies core competencies Run IT more efficiently for a lower Run IT more efficiently for a lower carbon footprint carbon footprint Time Capacity Load forecast Actual load
- 12. IT Spend is Not Transparent
- 13. Security & Compliance What process and technology investments are you making in security, privacy and reliability? How do you ensure my applications and data are protected against vulnerabilities? What certifications and other industry standards do you continually achieve for your cloud environment? What business continuity plans do you have in place, and have you tested them? How do you monitor your quality of service, and what do you do when things go wrong?
- 14. Microsoft In The Cloud
- 15. Cloud Services
Editor's Notes
- 02/12/13
- 02/12/13
- If you need to change the Title text on this slide and the next, follow these steps. 1. FIRST change the title on this slide but DON'T MOVE IT OR REPOSITION IT - just type your changes. After doing that, you will see that there is a 2nd text block that you CAN'T edit. We'll fix that now. 2. Go to the ribbon menu at the top, click on the VIEW tab. Notice that "Normal" view is highlighted. CLICK on SLIDE MASTER which is just above Master Views. 3. SECOND, Edit the title text on the slide master to match the title you changed in step 1. 4. When done, click the Red x at the top of the ribbon menu to close the Master view. 5. Check the animation in show mode. It should work correctly -- title stays put while images slide in. Questions? Email maryfj 02/12/13
- If you need to change the Title text on this slide, see the “how to” notes on the previous slide. 02/12/13
- Talk Track: Most of you probably have heard about cloud computing. If you haven’t read about it, you’ve heard about it from you CIO or CEO. Studies show that 50% of all CEOs and CFOs are working on cloud strategies already. That means about half of this audience is already thinking about how they move part of their business into the cloud. I’d like to share some thoughts why cloud computing matters to us at Microsoft but also to us in finance. IT touts the cloud as a shift in the way we do computing, but cloud computing has big implications to finance. Often, moving to the cloud is presented as a way to realize cost reduction because cloud providers can operate cheaper, but it’s more than that. It’s also about transforming the way our companies work to keep up with the ever increasing pace of innovation. Adopting the cloud helps us to focus on what our companies do best. It helps tighten up processes in IT and Finance and other areas of the business that slow our companies down. The cloud cuts down the time it takes to innovate and deliver new functionality to our business users, which accelerates our ability to respond to our customers’ needs. Finally, cloud computing enables a new level of transparency with regards to spending our IT budget. The insights from this level of transparency can guide our investments and show where we need to adjust to drive margin and reduce OpEx. Those tools have been available to Microsoft business groups internally for quite some time. The cloud makes this level of planning available to everybody. 02/12/13
- COST SAVINGS: EmpireCLS Worldwide Chauffeured Services Executive Summary For EmpireCLS Worldwide Chauffeured Services, technology is a key competitive differentiator. Even after virtualizing its data center, EmpireCLS sought even greater data center efficiency and automation. Using Microsoft System Center 2012, EmpireCLS transformed its virtualized data center into a private cloud environment. It also created a public cloud for offering software as a service to other transportation firms. By moving to cloud computing, EmpireCLS has reduced its data center footprint by a factor of seven and trimmed power and cooling costs by 50 percent. It has reduced IT and operating costs by 30 percent during a period when the business grew 30 percent. The IT staff has boosted service availability from four nines to six nines and reduced service tickets by 75 percent. Perhaps most exciting, EmpireCLS is now poised to become not only a transportation but a software provider. Situation EmpireCLS Worldwide Chauffeured Services gets Hollywood celebrities to and from the red carpet, executives to their private jets, and dignitaries to their destinations—on time and in unmatched style. Beginning in 1981, EmpireCLS has perfected the art of transporting media, entertainment, and business elite with luxury, privacy, security, and personal attention. Today, EmpireCLS offers chauffeur service in more than 700 cities around the world. Behind the polished appearance of the chauffeur, however, are more than 1,000 employees who work behind the scenes to manage reservations, global itineraries, and customer accounts. In addition to a luxurious ride, customers enjoy many concierge services and tools so that their interactions with EmpireCLS are easy, secure, consistent, and comfortable. “Empire is a premier brand within the industry due to its core strengths: people, technology, systems, service logistics, and fleet quality,” says David Seelinger, Chief Executive Officer at EmpireCLS. “ We’ve reduced our IT and operating spend by 30 percent over three years while… growing the business by 30 percent. We couldn’t have done that without Microsoft virtualization and cloud software.” Alan Bourassa, Chief Information Officer, EmpireCLS Worldwide Chauffeured Services Technology has always been a key competitive differentiator for EmpireCLS, and Chief Information Officer Alan Bourassa is always watching for innovations that can help the company provide service that is superior to the competition’s. Beginning in 2008, EmpireCLS began to deploy the underpinnings of a robust and highly scalable private cloud within their data centers. Employees leveraged virtualized desktops from this data center to easily meet their needs. Yet Bourassa pushed for still greater technology-based efficiencies. “ Even with our cutting-edge data center, it was still difficult for us to easily and holistically manage our IT infrastructure,” Bourassa says. “Provisioning storage and virtual machines was still too manual; we didn’t have a way to centrally orchestrate tasks. The company was growing, but we were not adding IT staff or support people. Anything we could do to streamline and automate IT tasks and eliminate human effort would make us more successful and speed up our service to the business.” Public cloud computing was the natural next step. EmpireCLS upgraded built a mixed private-public cloud infrastructure. In its private cloud environment runs its core chauffeur service business. In its public cloud they’ve a whole new business offering its proprietary dispatch and reservation system to other ground transportation companies using a software as a service (SaaS) model. “We’ve virtualized all the workloads that can be virtualized, including database servers,” Bourassa says. “We didn’t want to deal with individual servers, storage, and networking components; we wanted to abstract those resources, and with cloud computing, we were able to do that,” Bourassa says. “ Anything we could do to streamline and automate IT tasks and eliminate human effort would make us more successful and speed up our service to the business.” Alan Bourassa, Chief Information Officer, EmpireCLS Overall, EmpireCLS reduced it’s Data Center Costs by 50 Percent by shrinking it’s data center floor space through greater hardware efficiency and utilization and reduced power and cooling needs. Shrinking data center floor space is a big deal and the name of the game in cloud computing.” Drove IT and Operating Costs Down 30 Percent During 30 Percent Business Growth IT operating costs are also down since moving to cloud computing. “We have not had to increase our staff to greatly expand our infrastructure and move into new businesses,” says Bourassa. “We’ve reduced our IT and operating spend by 30 percent over three years while adding 500 external vendors to our infrastructure and growing the business by 30 percent. We couldn’t have done that without server virtualization and cloud software.” Because the EmpireCLS IT staff can manage the entire environment holistically, it takes much less time, freeing staff members to spend more time attending to other critical tasks and developing new solutions. 02/12/13
- Talk Track: Illustrate standardization using Southwest Airlines Cloud providers can reduce cost because of the economies of scale. Most costs do not scale linear with the number of servers. More to the contrary, in some cases the TCO per server goes down when the number of servers goes up. Cloud providers standardize their offerings. A long time ago, people would wear tailored clothes. Then standardized sizes became popular. Over time, even the number of sizes went down. Some companies only make S, M, L and possibly XL. Why? Because it's more economical to make fewer sizes. Brands that have more differentiated sizing are usually more expensive. You can also still got to a tailor and get custom made clothes, they fit great, but they are far more expensive than buying a standard size. Cloud computing take the same approach. It's more economical to sell a few standardized offerings than customizing products for every sale. Standardization leads to the economies of scale necessary to drive down CapEx with bulk purchases and OpEx with automation and innovation. On a side note, the cost of garments going down also changed clothing habits. People went from having very few items they wore every day to having a closet full of different things to wear every day. The ripple effect of the change in behavior gave rise to the clothing industry, fashion and department stores. Cloud computing is causing a similar transformation, which we'll talk about later. 02/12/13
- Talking Points: The cloud can help you reduce capital expenses and convert upfront capital costs to ongoing operating costs. The cloud enables you to consume the right amount of technology without overspending. In a traditional IT infrastructure, you add capacity in chunks, based on your predicted usage and allowing for growth. Until that growth catches up with the capacity you have invested in, you have infrastructure sitting there largely unused, consuming energy and maintenance resources. With the cloud, capacity is available as and when required, so you never need to carry (and pay for) the extra capacity. Move beyond the cost discussion and into the more strategic potential of the cloud : The cloud can scale up or down to meet your business requirements. What happens in a traditional infrastructure when you run out of capacity? You have to provision more capacity, which normally can’t happen overnight. If you get caught with unexpectedly high levels of demand, your infrastructure could be temporarily under-capacity, slowing or stopping productivity. Because the cloud provides instant access to near infinite scale, this is no longer a concern. Furthermore, if usage drops, that capacity can scale down with it. The elastic nature of the cloud means that you always have—and pay for—just the right amount of capacity to meet your requirements. With the elastic scalability of the cloud, you can take on new strategic application and computing opportunities that were previously cost prohibitive. Simply from a cost perspective, a traditional infrastructure could make it unrealistic to pursue opportunities that demand occasional very high-intensity computing workloads. Because the cloud is a usage-based model delivering access to nearly infinite capacity on demand, you can get as much as you need, when you need it, without the massive and costly upfront investment. This has the potential to put business opportunities within reach that you might previously never have been able to consider. The cloud lessens the burden on your IT resources. How important is it that you are the world’s best email provider in order to run your business competitively? Email is just one example, of course, but the more time your IT resources put into non-differentiating IT functions, the less time they will have to focus on strategic opportunities. Even as you look to the cloud to take advantage of new opportunities that will be competitive differentiators for your business, you can free your IT staff from some or all of the underlying infrastructure management burden. And by running a more efficient infrastructure and transferring storage and computing to the public cloud, you can actually reduce the environmental impact of your technology. In fact, we recently commissioned a study that found that moving business applications to the cloud can save at least 30 percent of carbon emissions per user compared with an average on-premises installation. I’d like to share some thoughts why cloud computing matters to us at Microsoft but also to us in finance. IT touts the cloud as a shift in the way we do computing, but cloud computing has big implications to finance. Often, moving to the cloud is presented as a way to realize cost reduction because cloud providers can operate cheaper, but it’s more than that. It’s also about transforming the way our companies work to keep up with the ever increasing pace of innovation. Adopting the cloud helps us to focus on what our companies do best. It helps tighten up processes in IT and Finance and other areas of the business that slow our companies down. The cloud cuts down the time it takes to innovate and deliver new functionality to our business users, which accelerates our ability to respond to our customers’ needs. Finally, cloud computing enables a new level of transparency with regards to spending our IT budget. The insights from this level of transparency can guide our investments and show where we need to adjust to drive margin and reduce OpEx. Those tools have been available to Microsoft business groups internally for quite some time. The cloud makes this level of planning available to everybody.
- Talk Track: However, lower TCO is only one of the key drivers that will lead to a renewed level of innovation within IT. The cloud brings a few other transformational qualities: 1. Elasticity is a game-changer because, as described before, renting 1 machine for 1,000 hours will be nearly equivalent to renting 1,000 machines for 1 hour in the cloud. This will enable users and organizations to rapidly accomplish complex tasks that were previously prohibited by cost or time constraints. Being able to both scale up and scale down resource intensity nearly instantly enables a new class of experimentation and entrepreneurship. 2. CapEx to OpEx will significantly lower the risk premium of projects, allowing for more experimentation. This both lowers the costs of starting an operation and lowers the cost of failure or exit – if an application no longer needs certain resources, they can be decommissioned with no further expense or write-off. 3. Self-service Provisioning servers through a simple web portal rather than through a complex IT procurement and approval chain can lower friction in the consumption model, enabling rapid provisioning and integration of new services. Such a system also allows projects to be completed in less time with less risk and lower administrative overhead than previously. 4. Reduction of complexity . Complexity has been a long standing inhibitor of IT innovation. From an end-user perspective SaaS is setting a new bar for user friendly software. From a developer perspective Platform as a Service (PaaS) greatly simplifies the process of writing new applications, in the same way as cars greatly reduced the complexity of transportation by eliminating, for example, the daily need to care for a horse. These factors will significantly increase the value add delivered by IT. Elasticity enables applications like yield management, complex event processing, logistics optimization, and Monte Carlo simulation, as these workloads exhibit nearly infinite demand for IT resources. The result will be massively improved experience, including scenarios like real-time business intelligence analytics and HPC for the masses. All of these benefits together allow swift responses to business changes, Computing resources can be provisioned in a matter of minutes to satisfy a demand. The transparent cloud cost model makes it easy to calculate the ROI of provisioning additional resources. 02/12/13
- Talk Track: Today’s budgeting practices make it hard to track the true cost of IT operations. Many organizations allocate a fixed percentage of revenue to their IT budget to fund "shared services", those are typically "keeping the lights on" activities, such as maintenance, hardware refresh, version upgrades, patches, etc. Analyst studies estimate that more than 70% of IT budgets are going towards those. Less than 30% go towards growing the capabilities of the business. On top of that, there is the cost of previous investments in IT capabilities, e.g. data center construction, real estate leases, shared equipment, etc. Not all of those are necessarily tracked by IT. Then there is the utility cost of IT, e.g. power and cooling that may come out of an operations budget or an IT budget. Then there are project budgets that often sit in the business that fund development or IT activities, such as hardware purchases. As you know, these different buckets make it very hard to track the true cost of operating an application. Most of these shared service cost are not factored into TCO or ROI calculations because they are not easily available. However, not accounting properly for shared services cost and capital investments can skew ROI calculations considerably. 02/12/13
- Cloud provider success will depends in large part, on their ability to protect their customers. Ultimately, you have the control over which security responsibilities you want to manage yourself and which you choose to cede to the cloud. In order to make this decision, you can engage a prospective cloud provider with a few simple questions that can go a long way toward determining whether a cloud provider is trustworthy: What process and technology investments are you making in security, privacy and reliability? How do you ensure my applications and data are protected against software vulnerabilities? What certifications and other industry standards do you continually achieve for your cloud environment? (shared responsibility, engage risk/compliance officer) (Make sure you’re talking to the purchasing dept. or line of business leader who might be considering the cloud, so that you can add value to those discussions) What disaster recovery and business continuity plans do you have in place, and have you tested them? How do you monitor your quality of service, and what do you do when things go wrong? Like any business decision, there are elements to weigh and consider. 02/12/13
- Talk Track: What does it take to do this successfully. Well, you can’t head-fake your way into building these cloud platforms and services, this isn’t a game of basketball. It takes a blend of expertise and the right investments to pull this off. NO OTHER company can match Microsoft today in our experience on running and building services. We know what it takes to do this, because we’ve been running services at Internet scale for years – from MSN in 1995, to Hotmail, Skype, Bing and Windows Live today. For example, to date Microsoft invested more than $2.3B to run over 200 cloud services in data centers spread around the world. Some of the services you and your families may be very familiar with: 100 billion minutes of Skype calls per quarter placed by 200 million users 2.75 billion searches a month on Bing 600 million unique users every month on Windows Live & MSN 40 million users of Xbox Live every month 9.9 billion messages a day via Windows Live Messenger 1 Petabyte+ of updates served every month by Windows Update to millions of servers and hundreds of millions of PCs worldwide Forefront for Exchange filters 1B emails per month To support this and our business cloud services, we’ve made and continue to make significant investments in our datacenter infrastructure that our cloud services run on – resulting in a number of advantages: financially backed SLAs, a standard cost operating model, industry-leading modular datacenter models, a consumption-based chargeback model, and the ability to achieve global targets like a Power Usage Effectiveness (PUE) of 1.25. This is all alongside our full commitment in the engineering discipline and the operations discipline around delivering the cloud. Microsoft is not only investing in public cloud offerings. We realize the importance that private and public/private cloud hybrids will play in the future. The lessons Microsoft learns every day from operating some of the world’s largest data centers go directly to the product engineering organizations for the operating system, virtualization and the management tools. Put together, Microsoft has 30,000+ engineers working on cloud services or products that enable Microsoft and customer clouds. Those engineers work with the 2,000+ employees in cloud infrastructure engineering and operations. This tight feedback loop between data center operations and product engineering is unique in the industry because it drives innovation and cost reduction for the cloud services, but the resulting products (Windows Server, System Center) allow our customers to build private clouds with similar benefits. When Microsoft Chief Executive Officer (CEO) Steve Ballmer publicly declared in March 2010 that “We’re all in” on cloud computing, he was not referring to just the Microsoft products and platforms; he also was giving his own IT organization a mandate to move to the cloud. MSIT, which is in many ways a very typical IT organization in a large company, has started their journey to the cloud the day Microsoft announced the move to the cloud. The journey already brought opportunities to rethink how to prioritize activities. With the cloud Microsoft can account exactly for how much it costs to operate an application every month. MSIT let their business partners decide if they wanted to spend their budget on “keeping the lights on” and run their applications in more costly on-premises environments or if they wanted to spend less on operations and focus on improving functionality. By now the move to the cloud is well underway. MSIT is aggressively moving Exchange and SharePoint as well as mission critical custom applications into the cloud. 02/12/13
- Talking Points: No competitor has the breadth of cloud services of Microsoft Only Microsoft has a set of cloud services that complements on-premises software There are three things that separate Microsoft and our approach to the Cloud from our competitors: We focus on providing the best productivity experience across the PC, the phone, and the browser with Microsoft technologies. We believe that your users, and you as users, want to use the PC, the phone, and the browser in your daily world. You want to be able to get to your email, no matter what device you’re using. You want to be able to get to your Office documents, no matter what device you’re using. And we make that possible with Office 2010, SharePoint 2010, Exchange 2010, and Lync. We want you to be able to work on your documents, and when someone touches it in the browser, they don’t clobber all of the things that someone did in the rich client. Office 365 round-trips the Office documents from the PC, to the phone, to the browser, and back, and nobody else does that. Your investment in Office documents is huge; you do not want to lose that. For example, Office 365 lets you do things in the PC that are unique from the phone and the browser. You can do things in the browser that are unique from the PC and the phone. We give you the cloud on your terms. Starbucks Use Office in your headquarters operation on-premises. Starbucks has rolled out 18,000 laptops to all of their cafes in the United States. Those 18,000 laptops are running Windows 7. And those 18,000 laptops are using Exchange Online and SharePoint Online. And it’s integrated in with their headquarters operations. So you can send email to anyone in the company. But the 18,000 new users are using our cloud, and the rest of corporate headquarters are actually using the traditional on-premises technology. Coca-Cola Enterprises, have gone 100 percent to the cloud and they’re not using any servers when it comes to Exchange and SharePoint. We provide the broadest vision for what productivity actually is. Productivity is not just about desktop documents. It’s not just about word processing and spreadsheets. That was twenty years ago. Modern productivity combines the things you see o this slide in a very seamless experience. Enterprise Search: Modern productivity means enterprise search, great people search, finding people inside your company. Collaboration Enterprise Content Management: Rather than using different content systems for your intranet, and your extranet, and your Internet? You want people to use the office tools they’re familiar with and integrate those with your single enterprise content management system. BI: Excel, SharePoint, and SQL Server, all making it incredibly easy for you to visualize data, and share BI across your organization. Unified Communications 02/12/13
- Key Points: To highlight the success and traction Microsoft has had in the Cloud market across the globe and across industries Talking Points: Microsoft has been providing cloud productivity services for over three years, and we have had great success in the marketplace: 40 million+ paying customers of Microsoft Online Services More than 9,000 business customers More than 500 government entities More than 50% of the Fortune 500 70% Exchanging from Notes 16,000 partners committed to Cloud Global reach: Available in 40 countries and localized into 20 languages 02/12/13