This document provides an overview of cloud computing and Microsoft's Windows Azure platform. It begins with background on the lack of clarity around cloud definitions and then presents Microsoft's taxonomy for classifying different cloud services. The rest of the document discusses the business benefits of cloud computing, introduces Windows Azure and its capabilities, and explores how Microsoft plans to work with partners to support the platform. It addresses common questions around Windows Azure's supported languages, differences between SQL Azure and SQL Server, and how Windows Azure computes pricing for compute, storage, and bandwidth resources.
3. MICROSOFT July 2009 | Page 3
Ambiguity Creates Complexity
“Cloud computing is a reality,
and it's a force that IT
professionals need to quickly
come to terms with. The
economic and social motivation
for the Cloud is high, the
business need for speed and
agility is greater than ever
before, and the technology has
reached a level in which prudent
investments in Cloud services
are fast and easy.”
–Network World, May 2009
“’Cloud computing’ is the latest
buzz term sweeping through the
information-technology industry,
but it’s losing whatever meaning
it once had as an increasing
number of companies apply the
label to their wares.”
–Wall Street Journal
Sept 2008
“The interesting thing about Cloud
computing is that we’ve redefined
Cloud computing to include
everything that we already do…
Maybe I’m an idiot, but I have no
idea what anyone is talking about.
What is it?”
–Larry Ellison, Oracle CEO
No clear definition of
“Cloud computing”
Important to have a
common understanding
across the industry
The future
is now
4. MICROSOFT July 2009 | Page 4
A Cloud Taxonomy
Web Based
Services
App Components
as a Service
Software as a
Service (SAAS)
Platform as a
Service (PAAS)
Infrastructure
as a Service
(IAAS)
Physical
Infrastructure
as a Service
Internet Web
Sites, finished
web experiences
Building block
services and
features that can be
integrated in to
larger app
experiences,
unfinished services
Traditional Apps
as web sites, or
rich web-
connected app
experiences,
finished services
Software
development as a
web based service,
or operating system
in the Cloud
Highly scalable
compute resources
(CPU, disk,
networking, etc)
available as a
metered utility
Managed or
unmanaged
hosting, co-
location, ISP
hosting
yahoo.com
match.com
craigslist.org
msnbc.com
ebay.com
technet.com
google.com
facebook.com
amazon flexible
payments service
flickr api
google calendar api
salesforce.com app
exchange
yahoo maps api
biztalk services
salesforce.com
google apps
webex web office
writely
exchange online
office online
office live
sharepoint online
amazon web
services (ec2, s3,
etc.)
windows azure
google app engine
facebook services
salesforce
force.com
amazon web
services
windows azure
engine yard
gridlayer
savvis virtual
intelligent hosting
godaddy.com
rackspace
savvis
terremark
1&1 internet
5. MICROSOFT CONFIDENTIAL June 2009 | Page 5
Today’s Business Environment
1 Cutting Cost and Lowering Capex
Infrastructure uses up valuable IT resources 40% CIOs plan to cut IT budgets
Driving value for the business with tight IT budgets
Leveraging and extending past IT investments to
provide future value
72% CIOs have cut or plan
to cut discretionary IT
projects*
“Live with what we have”
Maintaining security while increasing access and
transparency internally and externally
Many data centers are a limitation
Finding the right transformative capabilities across the
enterprise: Cloud computing, data-center strategies,
SaaS, mobility, IT automation
59% of surveyed CIOs
view security and
datacenter efficiency as
“must do” projects
Top Projects: SaaS, VoIP, Green
IT, Web 2.0 and outsourcing
2
3
4
5
6
Source: CIO Magazine, October 21, 2008, “Cloud Computing Survey: IT Leaders See Big Promise, Have Big Security Questions”
6. MICROSOFT July 2009 | Page 6
The Cloud Opportunity
Top drivers
for adoption
50% of larger companies are using SaaS today (minimum of 3 applications)
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Microsoft’s View of the Cloud
Scale
Automated
Service
Management
High
Availability
Multi-Tenancy
11. MICROSOFT CONFIDENTIAL June 2009 | Page 11
Benefits of the Windows Azure Platform
BUSINESS
DEMANDS
TECHOLOGY
DEMANDS
WINDOWS AZUZURE
PLATFORM OFFERS
• Cost-effective solution to manage IT resources
• Less infrastructure to buy/configure and support
• Lower TCO
• Predictable cost
• Focus on delivering compelling software
• Monetize new offering quickly without
investment in billing and other enablement
technologies.
• Speed of development
• Interoperability
• Leverage existing IP
• Simplified deployment
• Go to market faster
• Reliable service
• SLAs
• Security
• Global data centers
Lower costs Efficiency
Stay
Competitive
Innovation
Agility
Generate New
Revenue
Quickly
Reliability
Reduced
Risk
12. MICROSOFT July 2009 | Page 12
Why Microsoft
“IDC sees the launch of Windows Azure and Azure Services Platform as a first step in a long evolutionary path that customers will take
moving them from today’s self-hosted IT to consuming a hybrid of both internally and externally hosted services, and if so desired, could
eventually support a fully outsourced model.”
—IDC Insight, Microsoft Unveils Cloud Services Strategy and the Azure Services Platform:
Managing Customer Expectations and Competitive Pressures as Solution Evolves Is Key,
Nov 2008, Doc #215034
17. MICROSOFT July 2009 | Page 17
Users experience consistency from
PCs and web browsers to mobile
devices to servers
Developers use familiar
toolset to enable fast
time to market for
new applications
Solutions integrate easily with
a variety of
web-scalable services
Applications are
managed automatically
Software + Services
19. MICROSOFT July 2009 | Page 19
Windows Azure Partner Quick Start
http://azure.com/partnerquickstart
The one stop shop for partners to access:
Training
Tools
Content
Updates
Announcements
…and connect with Microsoft
Developers: http://www.msdev.com
Facebook: http://partnerhuddle.net
Blog: http://cdspartners.wordpress.com
NEXT STEPS
20. MICROSOFT July 2009 | Page 20
Windows Azure Platform CTAs
Visit Azure.com/PartnerQuickstart
Learn about Azure, and how to quickly start making money!
Sign up for the Azure CTP
Be on the leading edge of new innovation
Register for David Chappell’s Road Show near you
Hear first hand from a global thought leader about Azure cloud
25. MICROSOFT July 2009 | Page 25
Subscribe to SaaS editions of
traditional packaged applications
Switch to SaaS versions of programs
like Office, CRM, etc. instead of
installing and maintaining the software
on your internal servers (e.g.,
Exchange Online instead of
Exchange)
The software is hosted by the
company who makes it (e.g., Office
Online is hosted by Microsoft, Google
Apps is hosted by Google).
Three models for running enterprise apps in the Cloud
1 Write applications specifically to
run on a Cloud platform
Advantages: Get Cloud features like
infinite scaling and live servicing
Disadvantages: Often cannot take
apps written for one Cloud platform
directly to another, since they differ.
Host existing Windows or Linux
applications as VMs in the Cloud
Rather than re-writing existing apps,
package the OS + application as a
virtual machine, and run that virtual
machine in the Cloud.
You’re still running Windows apps on a
Windows OS – it’s just now running in
the Cloud instead of on your servers.
Advantages: No need to re-write
apps. No need to manage physical
servers.
Disadvantages: Can’t take direct
advantage of native Cloud features like
scaling.
2 3
Email
LOB app
Packaged app
26. MICROSOFT July 2009 | Page 26
Defining PaaS
“OS environment in the sky”, running in an
Internet scale data center.
The hardware, Cloud operating system and
data center facilities are owned and managed
by the Cloud provider, and not by the
enterprise.
Shared multi-tenant infrastructure offers
infinite scale, pay-as-you-go use model,
metered billing, anywhere access, etc.
Third party ISVs can also build/host their
applications on this Cloud infrastructure, and
expose them as SaaS offerings to enterprise
customers
Enterprises run their apps on this Cloud
infrastructure, paying-as-they-go for the server
resources they consume (e.g., CPU, storage,
bandwidth).
Enterprise IT admins mainly need to be
concerned about the application layer. The
OS and hardware layers are the responsibility
of the Cloud provider.
The Cloud environment can co-exist with on-
premises IT, or can replace it.
Potential Scenarios
Build native Cloud
applications that leverage
available Cloud provider APIs
and services
Host your existing LOB and
packaged applications as
virtual machines in the Cloud
Consume SaaS offerings
from enterprise software
vendors
Email
LOB app
Native Cloud app
27. MICROSOFT July 2009 | Page 27
Defining IaaS
The Cloud offers scalable hardware
resources (e.g., CPU cycles, storage,
networking, etc.) as a service.
Customers don’t need to own or manage
hardware or datacenter facilities.
Applications are built natively in the Cloud
to leverage this infrastructure, or existing
Windows/Linux workloads are hosted as
virtual machines in the Cloud.
Enterprises can run their apps on this Cloud
infrastructure, paying-as-they-go
for raw server resources (e.g., CPU cycles,
storage MBs, bandwidth, etc.) they
consume.
On-premise workloads can tap into the
Cloud for additional serving capacity on
demand (augmenting on-premise
infrastructure). Or enterprise workloads
can be hosted entirely in the Cloud
(replacing on-premise infrastructure).
Potential Scenarios
Replace your on-premise
physical servers/ datacenters
with Cloud based
infrastructure
Cloud for storage, backup
and disaster recovery
Get additional compute
capacity (CPU, storage, etc.)
for on-premise apps on-
demand, i.e., “burst capacity”
28. MICROSOFT July 2009 | Page 28
Defining Private Clouds
Traditional On-Premises Model
Servers are dedicated to specific workloads
Individual servers sized for peak or average capacity
of a given workload
Substantial idle/wasted capacity
An application can’t scale beyond the boundaries of
boxes it resides on
Provisioning new capacity takes time
Private Cloud Model
Servers are treated as a virtual pool of resources
Apps consume from the pool rather than having
dedicated resources
Idle servers automatically shut down or put to sleep
until needed
Apps can scale to the available provisioned capacity
in the pool
Adding a new server adds capacity to the entire pool
for all apps
Dedicated infrastructure (i.e., Cloud resources are
only accessible to your company, and not shared with
others)
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The Windows Azure platform reduces the complexity of Cloud
computing
31. MICROSOFT July 2009 | Page 31
Cloud Computing Transforms
the Economics of Business Computing
FOCUS ESSENTIAL IT
RESOURCES
ON BUSINESS SOLUTIONS
– NOT INFRASTRUCTURE
PAY AS YOU GO TO ACHIEVE
MASSIVE SCALABILITY
INCREASE BUSINESS AGILITY
AND EFFICIENCY
BRING APPLICATIONS TO MARKET
FASTER TO ACCELERATE
INNOVATION
32. MICROSOFT July 2009 | Page 32
Benefits of Cloud Computing
PAY FOR ACCESS
– NOT OWNERSHIP –
OF IT RESOURCES
SHARING "PERISHABLE AND
INTANGIBLE" COMPUTING
POWER AMONG MULTIPLE
TENANTS OPTIMIZES
COSTS FOR ALL
IMPROVE TIME-TO-MARKET
FOR NEW APPLICATIONS,
SERVICES AND SOLUTIONS
STAFF AND PLAN FOR TYPICAL
USAGE. SCALE TO THE CLOUD AT
PEAK TIMES – PLANNED OR
UNPLANNED
End of quarter reporting, tax-time,
payroll, slashdot effect
33. MICROSOFT July 2009 | Page 33
Introducing Windows Azure
“It’s the transformation
of our software, it’s
the transformation of
our strategy and our
offerings across the
board to fundamentally
embrace services.”
–Ray Ozzie
Chief Software Architect
Microsoft
Windows Azure delivers Cloud
computing for the enterprise
37. MICROSOFT July 2009 | Page 37
Q&A
Q. What languages will Windows
Azure support?
At commercial launch, Australia, Austria, Belgium,
Canada, Denmark, Finland, France, Germany, Ireland,
India, Italy, Japan, Netherlands, New Zealand, Norway,
Portugal, Spain, Sweden, Switzerland, UK, and the United
States. Israel is currently being evaluated for commercial
availability at PDC.
In the March 2010 timeframe we expect commercial
availability to expand to Brazil, Chile, Colombia, Czech
Republic, Greece, Hong Kong, Hungary, Israel, South
Korea, Malaysia, Mexico, Poland, Puerto Rico, Romania,
Singapore, and Taiwan.
38. MICROSOFT July 2009 | Page 38
Q&A
Q How does MS differentiate SQL
Azure from SQL Server?
SQL Azure is exposing a large subset of these relational
capabilities and extending them as services in the cloud.
These services feature built-in high scale, availability, and
self-management, and are provided in a way that makes it
easy for customers and partners to consume over the
Internet. Although SQL Azure in its first iteration
exposes only the core RDBMS capabilities of what is in
the full SQL Server data platform, Microsoft expects this to
increase over time, with likely future features including
Reporting, Analytics, ETL and other premium services
etc. SQL Server and SQL Azure share some technologies
and will share some innovations bilaterally.
39. MICROSOFT July 2009 | Page 39
Q&A
Q. How are Compute, Storage and
Bandwidth Metered?
Compute – Charged only for when your app is deployed.
Storage
• Metered in units of average daily amount of data
stored (in GB) over a monthly period (ex. Uploaded
30gb and stored for one day, the bill would be for one
GB; if stored for 30 days (30gb charge)
• Metered in terms of storage transactions used to add,
update, read and delete data. (.01/10K transactions)
Bandwidth – total amount of data going in and out of the
Windows Azure platform via the internet in a 30 day
period.
40. MICROSOFT July 2009 | Page 40
Q&A
SQL Azure – Web and Business Edition
The SQL Azure Web Edition DB includes
o Up to 1 GB of T-SQL based relational database
o Self-managed DB, auto high availability and backup
o Auto Scale with pay-as-you grow
o Best suited for Web application, Departmental custom
apps.
The SQL Azure Business Edition DB includes
o Up to 10 GB of T-SQL based relational database
o Self-managed DB, auto high availability and backup
o Auto Scale, Pay-as- you grow
o Additional features in the future like auto-partition, CLR,
fanouts etc.
o Best suited for ISVs packaged LOB apps, Department
custom apps
41. MICROSOFT July 2009 | Page 41
Q&A
How is SQL Azure database metered?
• SQL Azure database is charged based on the
portion of database consumed by the application.
42. MICROSOFT July 2009 | Page 42
How does .NET Services meter messages?
.NET Services allow developers to easily connect their cloud applications and databases
with existing software assets and users. This connection between cloud and on-premises
assets is facilitated by the exchange of messages. The consumption-based pricing model
means that customers will pay only for the number of message operations that their
applications use. The definition of a “message operation” includes Service Bus messages
and Access Control tokens. Messages are charged to the customer in discrete blocks of
100,000 (“100k”) for each monthly billing period, meaning that:
A customer who consumed 95,000 messages would be billed for 1x100k messages
(plus the bandwidth used to send messages in or out).
A customer who uses 150,000 messages in a billing period would be charged for
2x100k messages (plus the bandwidth used to send messages in or out).
A customer who uses 20 million messages in a billing period would be charged for
200x100k messages (plus the bandwidth used to send messages in or out).
Editor's Notes
HIGH LEVEL
Build a service or set of offerings on the Azure services platform and sell those to your customers without requiring them to have a relationship with Microsoft. Microsoft will give you a discount for consuming Azure resources as a Microsoft Partner.
Applications that include the Windows Azure platform
Customer buy applications and Azure from Partner
Partner buys Azure from Microsoft
Partner relationship to Microsoft:
Pay Microsoft for usage
Microsoft provides partner with support
Partner relationship with customer
Sells complete offering to customer
Supports complete offering
Bills customer for use of service inclusive of the Windows Azure platform
HIGH LEVEL
Build and sell your services or offerings which are accessible via the Windows Azure platform. Your customer is responsible for any Azure services usage associated from your service and pays Microsoft for that.
Applications built for the Windows Azure platform
Customer buys Azure from Microsoft
Customer buys applications from partner
Partner relationship to Microsoft:
Microsoft provides partner with support
Partner relationship with customer
Sells their service to customer
Supports customer for their offering
Bills customer for use of service exclusive of the Windows Azure platform