This document discusses considerations for CIOs regarding cloud computing. It defines cloud computing as providing IT resources over a network in a dynamic, scalable manner. The cloud offers benefits like on-demand access, global presence, elasticity, and metered usage. It also discusses opportunities for automation and cost avoidance. However, moving to the cloud means a loss of control over upgrades and decisions. The document advises CIOs to define their role in advising the business on possibilities while still bringing architectural rigor. It also notes new challenges around security, integration, migration, and regulatory issues that come with cloud adoption.

2. What the *cloud* is my CIO
thinking
Andrew Townhill, Technology Director
Simon Thurman, Architect Evangelist
Microsoft

3. The Session…
What this is…
Some considerations when thinking about using the cloud.
What this isn’t…
An overview of the Microsoft offering.
However, we will mention the Microsoft platform ;-)
3

4. The 5th Platform
4

5. Cloud Computing Defined
Providing IT resources, as a service, in a dynamic and scalable manner over a
network
Five essential characteristics of the Cloud:
On-demand self-service
Broad network access
Resource pooling
Rapid elasticity
Measured service
Public, Private, Community, Hybrid
Software, Platform, Infrastructure ‘as a Service’
5

6. The Windows Azure Platform
Developer Experience
Use existing skills and tools.
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7. Is it new?
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8. Business Opportunities
Demand/Scale
Global Presence
Elasticity
Agility
Metering of
Usage
8
Automation
Provisioning
Upgrades
Failure Recovery
Simple process
Economic
Avoidance of cost
Mediated Bill
Business model
Revenue streams

9. Co
Co
m
p
u
t
e
m
p
u
t
e
Workload Patterns Optimal For Cloud
Inactivity
Average
Period
Average Usage
Usage
Time
Time
Successful services needs to grow/scale
Keeping up w/ growth is big IT challenge
Complex lead time for deployment
Co
Co
m
p
u
t
e
m
p
u
t
e
On & off workloads (e.g. batch job)
Over provisioned capacity is wasted
Time to market can be cumbersome
Average Usage
Average Usage
Time
Time
Unexpected/unplanned peak in demand
Sudden spike impacts performance
Can’t over provision for extreme cases
9
Services with micro seasonality trends
Peaks due to periodic increased demand
IT complexity and wasted capacity

10. Business Opportunities
Demand/Scale
Global Presence
Elasticity
Agility
Metering of
Usage
10
Automation
Provisioning
Upgrades
Failure Recovery
Simple process
Economic
Avoidance of cost
Mediated Bill
Business model
Revenue streams

12. The Role of Enterprise IT
Does IT still exist?
Which roles will be in demand?
Become the advisor to the business
Share the art of the possible
Bring architectural and engineering rigour
Procure services to meet business requirements
Hold the keys
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13. New Problems, New Complexities
Security, Security, Security
Integration and Service Catalogue
Migration
Data At Rest, Data Models
Exit Strategy
Commercial and Operational Risk
Integration with operational model of the business
Regulatory considerations
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14. The Cloud – It’s Not For Control Freaks !
“Moving server software to the cloud has a lot of advantages. A company no
longer has to worry about patches, deploying upgrades, and an number of
other concerns.
But it also has one big downside--one that many CIOs are still struggling with--a
the loss of control.
They lose control of when things get updates. They lose control of saying 'no'
to some new thing”
— CNET Beyond Binary, April 8, 2010
http://news.cnet.com/8301-13860_3-20001983-56.html?tag=newsLeadStoriesArea.1
14

15. Build
Adoption - Extension of Buy Versus Build
15

16. Build
Customer Example
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17. Build
Customer Example
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18. Build
Customer Example
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19. Build
Customer Example
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20. Build
Customer Example
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21. Build
Customer Example
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22. Build
Customer Example
22

23. Build
Customer Example
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24. What are customers thinking…
Airline
Separate applications into bronze, silver, and gold categories
Service that is already being delivered over the Internet
Retail
Couldn’t justify a business case to deliver the infrastructure (reliability, scale, …)
Trials, skunk works
Communications
New business model
Financial Services
Quarterly calculations
General
Marketing Campaigns
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25. Wrap Up
It’s inevitable
You’re already doing it
There will be challenges
Not overnight and not everything
Your role is for you to define
Opportunity for IT to engage with the business
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26. © 2008 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.