Generational Shift
Centralized compute & storage, thin clients
Technology Economic Business
Optimized for efficiency due to high
cost
High upfront costs for hardware and
software
PCs and servers for distributed compute,
storage, etc.
Optimized for agility due to low
cost
Perpetual license for OS and application
software
Large DCs, commodity HW, scale-out, devices
Order of magnitude better efficiency and
agility
Pay as you go, and only for what you
use
Supply Side Economies of Scale
Cost of electricity
Cost of labor
Cost of hardware
Company LocationDC Cost
($M)DC Size*
(MW)
NSA (July ‘09)Camp Williams, UT
$2,000 130
Apple (May ‘09) Maiden, NC $1,000 65
Social Security Admin (Feb ‘09)
Baltimore, MD $400 27
Facebook (Feb ‘10) Princeville, OR $215 15
Internet Villages (July ‘09)
Annandale, Scotland
$1,600 107
Lockerbie Data Centers (Dec ‘09)
Lockerbie, Scotland
$1,500 100
Next Generation Data (Mar ‘10)
Wales, UK $301 20
DATA CENTER PROJECTS (LAST 12 MO.)
Source: Company press releases* Estimates based on $15M/MW build out cost
12:0
0 AM
1:15
AM
2:30
AM
3:45
AM
5:00
AM
6:15
AM
7:30
AM
8:45
AM
10:0
0 AM
11:1
5 AM
12:3
0 PM
1:45
PM
3:00
PM
4:15
PM
5:30
PM
6:45
PM
8:00
PM
9:15
PM
10:3
0 PM
11:4
5 PM
15%
17%
19%
21%
23%
25%
27%
29%
31%
CP
U U
tilizati
on
%
Demand Side Economies of ScaleImproving resource utilization
12:00 AM 1:27 AM 2:54 AM 4:21 AM 5:48 AM 7:15 AM 8:42 AM 10:09 AM11:36 AM 1:03 PM 2:30 PM 3:57 PM 5:24 PM 6:51 PM 8:18 PM 9:45 PM 11:12 PM
Japan Great Britain
BING SEARCHES – Japan VS. Great Britain
Source: Microsoft
Demand Side Economies of ScaleTime of Day
Qu
ery
Volu
me
• turbotax.com • taxcut.com
• hrblock.com • taxact.com
Source: Alexa
~4x normal load(Holiday shopping)
~10x normal load(Tax season)
• target.com • walmart.com
• toysrus.com • barnesandnoble.com
Jan 2009 Jan 2010 Jan 2009 Jan 2010
Source: Alexa
Demand Side Economies of ScaleIndustry Variability
Ch
oic
es
Ch
oic
es
How We View the CloudFu
nd
am
en
tals
Fu
nd
am
en
tals
Application Programming
Scale OutAutomated
ServiceManagement
High Availability Multi-Tenancy
Off PremisesOn Premises Location
Infrastructure
Business model
Ownership
Management
HomogeneousHeterogeneous
CapEx OpEx
Own Lease/Rent
Self Third Party
Common Management Tools
Common Identity
Common Dev Tools
PartnerMicrosoft
Customer
Microsoft’s Cloud Approach
Cloud Options
Private Cloud Preference
Pu
blic C
lou
d E
con
om
ics
HPC/Batch
File Servers
Web
Packaged Biz Apps
Communication &
Collaboration
Dev/Test
Custom Biz Apps
Source: Microsoft
Midsize Company Example
Commercial Cloud Services
BUSINESS APPSCOLLABORATION STORAGE PLATFORMMANAGEMENTPRODUCTIVITY COMMUNICATIONS
DEEP INVESTMENTS IN INFRASTRUCTUREOver $2B invested in cloud infrastructureGeo-replicated customer dataPublic and private cloud flexibility30,000 engineers working on cloud services
COMMITMENT TO SERVICES EXCELLENCE
Financially-backed uptime guaranteesSAS 70 and ISO 27001 compliantCarbon footprint innovationRapid innovation model
The Windows Azure PlatformThe Windows Azure Platform
AppFabric
Compute Storage Management Relational data Management Connectivity Access control
AppFabric
CDN
Developer ExperienceUse existing skills and tools.
Fabric ControllerFabric
StorageCompute
Windows Azure Architecture Details
Automated load balancing and compute resource scaling
Security and Control Features include storage encryption, access authentication, and over-the-wire encryption using HTTPS. Industry certification is part of the Windows Azure roadmap
Geographically distributed, state-of-the-art data centers host your applications and data, internet-accessible from everywhere you choose to allow
Compute provides application scalability. Developers 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
Content Distribution Network Enabling customers to deliver content from nodes closest to end users.
Usage
Com
pu
te
Time
Average
Inactivity
Period
“On and Off “
On and off workloads (e.g. batch job)Over provisioned capacity is wasted Time to market can be cumbersome
Com
pu
te
Time
“Unpredictable Bursting“
Average Usage
Unexpected/unplanned peak in demand Sudden spike impacts performance Can’t over provision for extreme cases
Average Usage
Com
pu
te
Time
“Growing Fast“
Successful services needs to grow/scale Keeping up w/growth is big IT challenge Complex lead time for deployment
Com
pu
te
Time
Average Usage
“Predictable Bursting“
Services with micro seasonality trends Peaks due to periodic increased demandIT complexity and wasted capacity
Workload Patterns Optimal for Cloud
Windows Azure Platform Purchasing Models
“Pay as you go and grow”
Low barrier to entry and flexibilityOptimized for cloud elasticity
Available Now
Consumption
“Value for a commitment“
Discounts for commitmentPlans for payment predictability
Subscription
Available Now
“Coordinated purchasing”
Centralized purchasing experience Introduction to volume discounts
Planned for Future
Additional Licensing
Promotional Offers Partner
Discount Development Pricing Integration with
Programs
Elastic, scalable, secure, and highly available
automated service platform
Pay as you go and grow for only what you use when you use it
Highly available, scalable, and self managed
distributed database service
Compute
$0.12/hour+ Variable Instance
Sizes
Per service hour
Web EditionPer database/month
$9.99/month(up to 1 GB DB/month)
Business Edition
$99.99/month(up to 10 GB DB/month)
Per database/month
Storage Per GB stored and
transactions$0.15 GB/month
$0.01/10k transactions
Windows Azure Platform Consumption Prices
Windows Azure platform AppFabric Service Bus and Access ControlScalable, automated, highly available services for secure connectivity
Content Delivery Network
$0.15 per GB for data transfers
from European & North American locations
$0.20 per GB for data transfers
from other locations$0.01 per 10,000
transactions
Prices shown in USD only
Access Control
$1.99/per 100,000 transactionsPer Message Operation
$3.99/per connection
Per Message Operation
Service Bus
International prices are available
All running roles will be continuously monitoredIf role is not running, we will detect and initiate corrective state
>99.9%
Instance monitoring
and restart
Database is connected to the internet gateway All databases will be continuously monitored
>99.9%
Database
availability
>99.9%
Service bus and access control endpoints will have external connectivityMessage operation requests processed successfully
Service bus and access control
availability
Your service is connected and reachable via web. Internet facing roles will have external connectivity
>99.95%
Compute
connectivity
Monthly Service Level Agreement
>99.9%
Storage service will be available/reachable (connectivity)Your storage requests will be processed successfullyContent Delivery Network (CDN) enhances end user performance and reliability
Storage
availability
“We’re using Windows Azure to meet the evolving needs of our clients. And with the … reduced levels of new investment required, we can consider solutions that might otherwise not have been possible.”
Rob Fraser, Head of Cloud Computing, RiskMetrics
Complements Windows Server with Windows Azure to support “bursts”Elastic infrastructureFamiliar development, operating environment
Case Study: RiskMetrics Group
“This has been one of the best IT partner projects CCE has experienced, and we have the added value of a longer IT roadmap with Microsoft than if CCE had built the solution on premises.”
Kevin Flowers, Director of Enabling Technologies, CCE
Required a centralized platform for internal promotion of company initiativesAnd needed a way to replace a phone ordering system with a hosted Web applicationUses both Microsoft Online and Windows Azure
Case Study: Coca Cola Enterprises Inc.
“Our first estimates show that we can reduce our TCO by a factor of 10. The software distribution system we built with Windows Azure is 10 times cheaper than our previous solution.”
Elmar Stoecker, Director Portfolio Management, Siemens IT Solutions and Services
Increased flexibility: high scalability and enhanced customer servicesReduced operating costsUsed Windows Azure to deliver software packages from a central Internet-based storage location to thousands of devices
Case Study: Siemens
Windows Azure platform Roadmap
Unified Programming Platform and Tools
• .NET 4 & Visual Studio 2010• ASP.NET, ASP.NET MVC, .NET 3.5• Unmanaged Code, Java, & PHP• Visual Studio 2008, Eclipse Support
• Improved compatibility between on-premise applications and Windows Azure applications via support for VMs and other methods
Simplified Management
• Improved management APIs• Automated service management
• Improved interoperability with System Center and APIs for integration with mainstream management tools like OpenView and Tivoli
Flexible and Trustworthy Storage
Windows Azure Storage• Non-relational table storage• Blogs, Queues, DrivesSQL Azure• SQL Azure databases, up to 10GB
Windows Azure Storage• Automatic data geo-replicationSQL Azure• Larger database sizes for SQL Azure• On premise and cloud data sync
Efficient Networking
• Communicate between cloud and on premise with Windows Azure platform AppFabric
• Improvements in flexibility and responsiveness
Global Platform• 6 Data Centers in US, EMEA, APAC Data
Centers• 18 CDN Nodes
• Additional locations and CDN nodes• Global Traffic Management Capabilities
Compliance • Various standards under investigation• Important new security and compliance
certifications
Adaptable Pricing Models
• Consumption and Commitment pricing • Integration with MS Volume Licensing
Present Future
Adoption Momentum
Customer Partners Service ProvidersWith the flexibility of Windows Azure, we can focus on building and delivering new features to our customers—helping us increase our competitive advantage.”
What used to take two months to set up can now be done in only one week and we can use those precious IT resources to focus on more strategic tasks, such as developing new services.”
– Andy Lapin,Director of Enterprise Architecture
– Michael Hart
System Architect and Developer Lead
© 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.