cuong@microsoft.com
15
10
 5                                   Revenue

 0
     2005 2006 2007 2008 2009 2010
• Buy Software?

• Build Software?

• Rent Software?
Ecommerce site has 4 typical workload patterns




                                               Compute
   Compute


                          Inactivity
                           Period
                                                                         Average Usage
             Average                   Usage


                            Time                             Time
Compute




                                               Compute
                       Average Usage                     Average Usage


                          Time                              Time
Shared hosting



       Cheap
       Appears to offer a complete package
       No sysadmin skills required
       Multiple points of failure
       Lack of support
       Lack of control
       Risk of poor performance
Virtual Private Server


   More Control
   More Reliable
   Usually requires self-management, and therefore deeper
   sysadmin knowledge
   Easier to break if you don’t have the skills, but this can be
   outsourced
   Other virtual servers on your server may disrupt your service (e.g.
   bandwidth)
   Single point of failure (it is still only one server)
Dedicated or Co-LocationDedicated or Co-Location


     Complete Control
     Guaranteed Reliability through SLAs
     External data security risk mitigated through SLA
     Corporate Governance risk mitigated through SLA
     Expensive
     Single point of failure
     Sysadmin skills essential unless the server is under
     a managed contracttill only one server)
Clustered Servers (aka Private Cloud)


     Complete Control
     Guaranteed Reliability through SLAs (if outsourced)
     No Single point of failure
     No external data security risk
     Corporate Governance Assured
     Very Expensive
     Sysadmin skills essential unless the cluster is under a managed
     contract
Public Cloud


     Less Expensive

     Fully managed by a third party, meaning better reliability

     No performance issues – it scales as needed

     So large that external factors may affect your site and may take a
     long time to resolve

     Difficult to assess external data risks and corporate governance
     issues
Fundamentals
                Automated
                                         High
Scale out        Service                              Multi-tenancy
               Management              Availability


                     Considerations
Off premises                Location                    On premises

Homogeneous            Infrastructure                  Heterogeneous

   OpEx               Business model                      CapEx

Lease/Rented            Ownership                         Owned
 Third Party           Management                          Self
The Microsoft Cloud Platform




                          Microsoft®




                                                        Global     Environmental
Infrastructure Services       Security and Compliance
                                                        Delivery   Awareness
Private                   Public
                            Software as a
                               Service
                               (SaaS)
IT as a Service




                            Platform as a
                               Service
                                (PaaS)




                            Infrastruct
                              ure as a
                              Service
                               (IaaS)
Real World TCO Analysis
                        (TCO estimate over 3-year period)

   Persistent Systems                                           Alinean Inc.




   $74K           $62K                                      $540K              $277K


On Premises       Azure                               On Premises              Azure
We’re Running Scale Services Now
42 billions USD invesment into Cloud Computing by 2012
Same skills with little learning curve to create apps on cloud
Free of choices: C#, VB.net, PHP, Python, Java, Ruby…
Licensing model  service subscription model: no more
software piracy!
Very low barrier investment
Aptech, NIIT Vietnam provide Cloud Computing training in
2010
• Elastic service, meets all sizes. Pay as you go

• Scales out Web 1.0 and combines with Web 2.0 apps.

• Brings Office, business apps (CRM, Accounting, ERP…) to Cloud

• 10x more efficient, 10x faster to market, 10x cheaper to operate

• Cloud for Consumer / Cloud for Business / 3 screens – 1
  platform
• More connections, more scalable in standardized,
  interoperability, managed platform
Windows Azure Instance Sizes



      $0.12                $0.24                     $0.48                $0.96




                              Unit of Compute Defined




 1 x 1.6Ghz            2 x 1.6Ghz                4 x 1.6Ghz           8 x 1.6Ghz

1.75 GB memory        3.5 GB memory             7.0 GB memory         14 GB memory
250 GB storage        500 GB storage           1000 GB storage          2000 GB
(instance storage)    (instance storage)        (instance storage)   (instance storage)
Microsoft Cloud Computing for Ecommerce

Microsoft Cloud Computing for Ecommerce

  • 1.
  • 9.
    15 10 5 Revenue 0 2005 2006 2007 2008 2009 2010
  • 10.
    • Buy Software? •Build Software? • Rent Software?
  • 13.
    Ecommerce site has4 typical workload patterns Compute Compute Inactivity Period Average Usage Average Usage Time Time Compute Compute Average Usage Average Usage Time Time
  • 15.
    Shared hosting Cheap Appears to offer a complete package No sysadmin skills required Multiple points of failure Lack of support Lack of control Risk of poor performance
  • 16.
    Virtual Private Server More Control More Reliable Usually requires self-management, and therefore deeper sysadmin knowledge Easier to break if you don’t have the skills, but this can be outsourced Other virtual servers on your server may disrupt your service (e.g. bandwidth) Single point of failure (it is still only one server)
  • 17.
    Dedicated or Co-LocationDedicatedor Co-Location Complete Control Guaranteed Reliability through SLAs External data security risk mitigated through SLA Corporate Governance risk mitigated through SLA Expensive Single point of failure Sysadmin skills essential unless the server is under a managed contracttill only one server)
  • 18.
    Clustered Servers (akaPrivate Cloud) Complete Control Guaranteed Reliability through SLAs (if outsourced) No Single point of failure No external data security risk Corporate Governance Assured Very Expensive Sysadmin skills essential unless the cluster is under a managed contract
  • 19.
    Public Cloud Less Expensive Fully managed by a third party, meaning better reliability No performance issues – it scales as needed So large that external factors may affect your site and may take a long time to resolve Difficult to assess external data risks and corporate governance issues
  • 21.
    Fundamentals Automated High Scale out Service Multi-tenancy Management Availability Considerations Off premises Location On premises Homogeneous Infrastructure Heterogeneous OpEx Business model CapEx Lease/Rented Ownership Owned Third Party Management Self
  • 24.
    The Microsoft CloudPlatform Microsoft® Global Environmental Infrastructure Services Security and Compliance Delivery Awareness
  • 25.
    Private Public Software as a Service (SaaS) IT as a Service Platform as a Service (PaaS) Infrastruct ure as a Service (IaaS)
  • 29.
    Real World TCOAnalysis (TCO estimate over 3-year period) Persistent Systems Alinean Inc. $74K $62K $540K $277K On Premises Azure On Premises Azure
  • 31.
  • 38.
    42 billions USDinvesment into Cloud Computing by 2012 Same skills with little learning curve to create apps on cloud Free of choices: C#, VB.net, PHP, Python, Java, Ruby… Licensing model  service subscription model: no more software piracy! Very low barrier investment Aptech, NIIT Vietnam provide Cloud Computing training in 2010
  • 40.
    • Elastic service,meets all sizes. Pay as you go • Scales out Web 1.0 and combines with Web 2.0 apps. • Brings Office, business apps (CRM, Accounting, ERP…) to Cloud • 10x more efficient, 10x faster to market, 10x cheaper to operate • Cloud for Consumer / Cloud for Business / 3 screens – 1 platform • More connections, more scalable in standardized, interoperability, managed platform
  • 41.
    Windows Azure InstanceSizes $0.12 $0.24 $0.48 $0.96 Unit of Compute Defined 1 x 1.6Ghz 2 x 1.6Ghz 4 x 1.6Ghz 8 x 1.6Ghz 1.75 GB memory 3.5 GB memory 7.0 GB memory 14 GB memory 250 GB storage 500 GB storage 1000 GB storage 2000 GB (instance storage) (instance storage) (instance storage) (instance storage)