microsoft azure and the competitive cloud industry - techfuse

Microsoft AzureAnd The CompetitiveCloud IndustryPresented By: Richard Harbridge

RICHARDHARBRIDGE

My twitter handle is @RHarbridge, blog is http://RHarbridge.com, and I work at

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This is one of the biggest decisions for enterprise organizations today.

THE CHOICE YOU MAKE IS REALLY REALLY IMPORTANT…

WHAT WE WILL TALK ABOUT TODAY…

1.What Is The Cloud Industry?2.Key Considerations3.Competitive Industry Analysis4.Key Cloud Capabilities Comparison5.Competitive Assessments & Summaries

IaaS & PaaS will be our primary focus today. SaaS is important but too complex.

PUBLIC CLOUD…

Similar to the model for Public Cloud platforms.

STILL STRUGGLING WITH UNDERSTANDING CLOUD BASICS?

These vendors proved that Software as a Service (SaaS) works for enterprise orgs.

SALESFORCE, WORKDAY & MANY OTHERS PROVE SAAS BACK IN 2004 AND 2005…

Introducing public cloud platform (IaaS) to enterprise organizations.

AMAZON LAUNCHED AMAZON WEB SERVICES IN 2006…

At the time Microsoft was focused on PaaS.

AZURE LAUNCHED IN JANUARY 2010…

Microsoft is doing more than just catching up to Amazon in the marketplace.

AND YET, HERE WE ARE TALKING ABOUT IT…

Large Scale Players (League Of Their Own)

Who are the vendors (and who matters)?

VENDOR & TECHNOLOGY ANALYSIS…

Notable Cloud Players

Transitioning Players

And many more…

DRIVERS FOR CLOUD…

40%-60%“Cooling costs will make up as much as 40% to 60% of a data center's electricity costs.” (Hype Cycle for Data Center Power and Cooling Technologies, 2014 - Gartner)

75% or More“Orgs cited ‘better in the cloud’ spam management, security reporting, less disruptions, more up to date antivirus, compliance, recovery, and efficiency keeping up to date.” 300+ People

“Over 300 people focused on data privacy, including: Software Engineers, Scientists, IT Pros, Marketing and Lawyers.” - Microsoft There should be little debate that the public cloud is the eventual future for

almost every organization in the world.

http://www.gartner.com/document/2809729



Without the considerable investments and scale required – vendors will loseto the emerging price war as costs continue to decrease.

WHY SCALE MATTERS…

2000+ People“Microsoft has over 2000 people in cloud infrastructure engineering and operations with 30,000+ software engineers involved in cloud-based activities.“

19 Billion“Microsoft has invested over 19 billion dollars in global datacenter infrastructure.”

24 Regions“That’s more than AWS and Google COMBINED.”

600K Servers“We have over 600,000 servers in one of our Azure regions alone.”1.4 Million “1.4 Million miles of fiber in the DCs, enough fiber to wrap around the globe 56 times.”

Traditional vendors have a harder time than those that started in the cloud.

SERVICE MODEL CHANGES…

B4B Technology Reinventing Supplier Relationships

http://www.amazon.com/B4B-Technology-Reinventing-Customer-Supplier-Relationship/dp/0986046205

Long term everything goes PaaS, but the timeline is further out than some wish.

IAAS IS USED FAR MORE THAN PAAS (TODAY)…

42Amazon between 2008 and April 2014 as an example lowered it’s prices 42 times.

Microsoft PartnersMicrosoft partners have a strong loyalty to Azure and often

provide their own pricing or base it on discount arrangements based on pre-purchasing more Azure commitments.

Customers similarly often can buy it on their EA for different discount rates while the scenario may be more optimal with

how Azure prices versus Amazon (see example of SQL Azure).

Between the complexity and differences in pricing calculators, enterprise discounts and the constant price cutting it is very challenging to compare pricing.

DIFFICULT TO COMPARE ON COST EFFECTIVELY…

Let’s take a look at how IaaS has evolved according to Gartner over the years…

IAAS INDUSTRY FROM 2012 TO 2015…

These are all mainly companies that provide hosting.

At this point both

Microsoft and Google don’t

offer IaaS.

AWS is classified as the undisputed IaaS leader.

Let’s take a look at how IaaS has evolved according to Gartner over the years…

IAAS INDUSTRY IN OCT 2012…

Microsoft began offering IaaS two months earlier

AWS is further out in front

Google still doesn’t offer

IaaS.

Note that Rackspace and HP are both visibly supporting OpenStack

IBM shows up in the IaaS space, but is struggling.

In 2013 Microsoft had been in the IaaS space for only 2 months. Not bad.

IAAS INDUSTRY IN AUG 2013…

NEW!

Keep in mind that Microsoft had been in IaaS for just a little less than a year.

Microsoft makes huge strides. <1yr

IBM is relevant again now that it bought SoftLayer.

Google has entered the market and

starts strong like MSFT.

AWS leads by even more.

IAAS INDUSTRY IN MAY 2014…

NEW!

Amazon, MSFT, Google, & VMware all moved up/right. IBM dropped. HP gone.

Microsoft is almost matching in completeness of vision.

IBM/SoftLayer still struggling.

Google is climbing into

the leader quadrant. Not

as fast as Microsoft, but could be a big

leader in IaaS…

AWS continues to push the boundary of the MQ.

IAAS INDUSTRY IN MAY 2015…

NEW!VMware enters the

market starting a little weaker than

Google or Microsoft did.

If IaaS is virtualized instances in the cloud… how does this space look?

VIRTUALIZATION INDUSTRY FROM 2014 TO 2015…

But note that they aren’t alone.

VMware has the lead when it comes to this space.

This is more important than it might seem. Cloud lock in, hybrid and more…

VIRTUALIZATION INDUSTRY IN JULY 2014…

A little bit forward for MSFT.

A little bit back for them…

This is more important than it might seem. Cloud lock in, hybrid and more…

VIRTUALIZATION INDUSTRY IN JULY 2015…

Cloud storage and data services power many things like IaaS and PaaS. They are also important on their own.

CLOUD STORAGE INDUSTRY FROM 2014 TO 2015…

But so is MSFT

Google is a ways behind in

2014

AWS is in the Leaders Quadrant

The traditional enterprise vendors

Cloud storage is an important market and compliments IaaS and PaaS…

CLOUD STORAGE INDUSTRY IN JULY 2014…

It’s those same three companies competing again! AWS, Microsoft and Google!

CLOUD STORAGE INDUSTRY IN JUNE 2015…

Microsoft becomes a little more visionary.

AWS is in the Leaders Quadrant

Google is catching up!

IBM rises, Rackspace and AT&T fall.

If IaaS is virtualized instances in the cloud… how does this space look?

PAASINDUSTRY FROM 2014 TO 2015…

Note that Amazon doesn’t show up here. Salesforce and Google (again).

PAAS INDUSTRY IN JANUARY 2014…Google released their version of

PaaS before Microsoft released

Azure PaaS.

Hey Microsoft is in that leaders quadrant again… They started with PaaS…

Look at this…

IBM is a player in this space (Bluemix)…

One question that is important here is whether scale leads to notable price advantage.

PAAS INDUSTRY IN MARCH 2015…Still classified as a

challenger.

Things are going better than in the IaaS space.

Microsoft improves on ability to execute.

What about the broader picture?

IAAS, VIRTUALIZATION, CLOUD STORAGE & PAAS INDUSTRY

Microsoft

Microsoft is the only one leading across all 3 key Cloud MQ’s (plus Virtualization).Amazon leads 2, Google is working to also lead across all 3.

BUT WAIT THERE’S MORE…

All compete on price and features. Scale efficiencies dictate advantage. Note the marketplace focus for both AWS & Azure. Azure 3435 vs AWS 2372…

CAPABILITIES COMPARISON:IAAS…

Elastic Compute

Cloud (EC2)

Virtual Machines

Compute

Compute Engine

The pricing is DIFFERENT. This is the big thing to consider here. Also note that MSFT has a premium option.

CAPABILITIES COMPARISON:DIRECT CONNECTIVITY…

AWS Direct

Connect

ExpressRoute

Direct Peering

ExpressRoute Premium, which enables a single connection to fan out across Microsoft’s private network into many regions rather than having to have point-to-point connections into each region being used.

Amazon uses VLAN (layer 2), MSFT uses BGP (layer 3) as does Google.

http://azure.microsoft.com/en-us/updates/general-availability-azure-expressroute-premium-add-on-package/

http://azure.microsoft.com/en-us/updates/general-availability-azure-expressroute-premium-add-on-package/

For distributed cloud environments. Signals and alerts based on context-correlated threat intelligence derived from vast global intelligence assets and expertise.

CAPABILITIES COMPARISON:SECURITY OFFERINGS…

?

Security Center

?

What about the PaaS offerings from competing vendors in this space?

CAPABILITIES COMPARISON:PAAS…

Elastic Beanstalk

Cloud Services

App Engine

Force.com App Logic

Blob Storage

Storage wars tend to be focused on price. Hybrid has an impact here as does partner communities.

CAPABILITIES COMPARISON:CLOUD STORAGE…

Simple Storage Service

(S3)

Object Storage

Cloud Storage

MSFT offers SQL IaaS instances and SQL Azure DB which is a PaaS service. Since SQL is such a significant portion of MSFTs business (and they are the largest database provider in enterprises) does this give them an advantage?

CAPABILITIES COMPARISON:CLOUD RELATIONAL STORES (RDBMS)…

Relational Database Service (RDS)

Azure SQL Database

Database

Cloud SQL

SQL Data Warehouse AWS Redshift

Pricing Independently adjust compute & storage.

Fixed compute/ storage ratio.

Elasticity Grow/Shrink in seconds. Hour to days to resize.

Pause/Resume Yes. No.

Hybrid Yes. No.

Compatibility True SQL supportNo support for indexes, SQL UDFs, Stored Procedures, Constraints…

SQL Data Warehouse vs Amazon Redshift (Quick Points)

CAPABILITIES COMPARISON: WHICH DATA WAREHOUSE?

AWS Redshift

SQL Data Warehouse

In-memory Hekaton, SQL-like queries, and more differentiate DocDB – closerto Googles Cloud Datastore vs DynamoDB which is more like a ‘key-value store’

CAPABILITIES COMPARISON:CLOUD NON RELATIONAL STORES (NOSQL)…

DynamoDB

Cloud Datastore

Force.com Database

DocumentDB, Azure Tables

Microsoft and Salesforce both have identity platform offerings. Similar in approach.Microsoft is investing more on the security side with recent notable acquisitions andis still the leading identity provider (by far) for enterprises with AD on-premises today…

CAPABILITIES COMPARISON:IDENTITY…

Google has Identity Tools for Dev (but not a current platform player).

CAPABILITIES COMPARISON:MACHINE LEARNING…

Azure Machine Learning, Amazon Machine Learning and Googles Prediction API are all notable machine learning offerings. Amazon focuses on (narrow) supervised machine learning scenarios, MSFT on drag and drop data pipelines (broader) applied machine learning…

Differentiators Advantages Disadvantages• Microsoft emphasizes hybrid

clouds and has a compelling hybrid story including a virtualization option that reduces Cloud Lock in risk.

• Microsoft is offering the most complete Public Cloud when you look across SaaS, PaaS, IaaS and supporting services like Identity.

• Microsoft has the best integration story with it’s vast partner network and enterprise credibility.

• Microsoft has a very large on-premises install base.

• Most IT leaders place a high value on MSFT (safe bet).

• Microsoft owns the only notable non open source server OS.

• Microsoft has arguably made the most investments (19 billion+) in Cloud.

• More compliance certs than any other cloud.

• Azure Marketplace is a big opportunity (outpaced Amazon).

• Microsoft was slow in offering IaaS, they truly believed PaaS was the key to the cloud.

• Microsoft has to transition it’s salesforce, operations and revenue to the cloud and cloud services.

So what’s the summary on Microsoft?

MICROSOFT ASSESSMENT…

Differentiators Advantages Disadvantages• Amazon is all about the public

cloud first and foremost. It has called private cloud “false cloud”. If your company is of a similar mindset this can be advantageous and help drive change.

• Amazon got it right (in terms of demand) out of the gate with IaaS and data/storage services and is leading the marketplace still (after several years).

• Amazon started in the cloud and didn’t have to transition services and offerings to the Cloud.

• Amazon was the earliest to market with IaaS and data storage enabling them to control more of the market than it’s competitors.

• Amazon is viewed as the market leader in the public cloud (especially in IaaS) today.

• Amazon is struggling with customer support and customer relationships.

• Amazon has no significant SaaS or PaaS offerings and services that enable it to compete at the level Google and Microsoft are.

• Amazon’s hybrid story is weaker than Microsoft’s.

So what’s the summary on Amazon?

AMAZON ASSESSMENT…

Differentiators Advantages Disadvantages• They’ve said that cloud platform

prices should follow Moore’s Law and have led pricing reductions.

• They’ve innovated with pricing, and their automatic discounts are interesting for many customers.

• Like Amazon and Microsoft they have the financial backing and datacenter presence to get a scale advantage.

• Like Microsoft they have PaaS and SaaS offerings across this space.

• Google has significant leadership in the mobile market which could have an impact longer term.

• Like Microsoft, Google initially bet that the market wanted PaaS and was late with IaaS.• Their IaaS offering is

relatively new.• Google is still developing

enterprise credibility. In the startup space it’s a different story, but in enterprise this can have an impact.

So what’s the summary on Google?

GOOGLE ASSESSMENT…

Differentiators Advantages Disadvantages• It’s an open source project. • Some firms offer public IaaS

based on OpenStack so it get’s a lot of press (across these companies).

• Users love standards, so vendors claim to follow them, but they also add proprietary extensions which results in it often not being truly standardized.

• Only a few vendors will most likely dominate OpenStack and it’s unclear who they’ll be. • HP’s Helion public cloud

hasn’t gotten much traction.

• Rackspace has left the pure IaaS market.

So what’s the summary on OpenStack?

OPENSTACK ASSESSMENT…

Differentiators Advantages Disadvantages• Force.com is typically sold as an

adjunct to Salesforce CRM. Their identity platform similarly is tied to CRM (pricing model wise).

• Some apps can be built solely with point-and-click tools. Making development more accessible.• Developers can also use

Apex, a Salesforce language for more advanced efforts.

• Customer self-selection: Since your customer data is in the Salesforce cloud, why not build your apps there, too?

• Customer lock in is total with Force.com. The platform, language, and tools are all proprietary.

• Has no IaaS offerings (different approach). It’s storage also focuses on the Non Relational data stores and it’s own services.

So what’s the summary on Salesforce?

SALESFORCE ASSESSMENT…

Differentiators Advantages Disadvantages• IBM bought SoftLayer for $2

billion in mid-2013.• SoftLayer was a hosting

company as well as a cloud provider.

• IBM highlights SoftLayer’s ability to provide both VMs and physical servers.

• Private cloud positioning and physical server differentiator.

• A competitor in Cloud Storage, IaaS, PaaS (not a leader, but still competing).

• IBM began a number of cloud initiatives• While they have made

impact in most cases they have not got much traction with customers

• IBM announced a plan to spend $1.2 billion on cloud.• But it’s spread across many

datacenters (scale concern)• Microsoft spends this

to build a single datacenter.

So what’s the summary on IBM?

IBM ASSESSMENT…

Differentiators Advantages Disadvantages• Significant private cloud

customer base.• Currently offer vCloud Air

themselves.• Still has significant portion of

Virtualization marketplace.• It provides IaaS based on

vSphere in VMware datacenters.

• Has a decent volume of specialists and experts in the marketplace (skill transference).

• Initially encouraged hosters to offer IaaS with vCloud. • This saw low uptake and

interest.• vCloud Air isn’t a complete

public cloud platform. • It’s mostly VMs• Customers can also buy

some Google Cloud Platform services through vCloud Air, e.g., blobs.

• VMware has no significant SaaS, PaaS, or storage/data offerings and services.

So what’s the summary on VMware?

VMWARE ASSESSMENT…

The players that matter (today) were covered. Everyone else is evolving.

RACKSPACE? HP? ASSESSMENT…

They all matter. Knowing their strengths and weaknesses also is important.However there is one leader in the cloud AND in the enterprise (today): MSFT.

SUMMARY…

+ Enterprise Credibility++ Industry Leader (IaaS)+ Industry Leader (Cloud Storage)+ Relevant In Machine Learning

++ Enterprise Credibility+ Industry Leader (IaaS)+ Industry Leader (Cloud Storage) + Relevant In Machine Learning + Industry Leader (PaaS)+ Industry Leader (SaaS)

What else?+ Industry Leader (Virtualization)+ Industry Leader (Cloud Identity)+ Industry Leader (Security Center Offering)+ Integration Leader (Logic Apps Offering)+ IoT Leader (IoT offerings AWS & Google don’t have [yet] – IBM offers IoT Foundation Services within Bluemix)

+ Enterprise Credibility+ Industry Leader (IaaS)+ Industry Leader (Cloud Storage)+ Relevant In Machine Learning + Industry Challenger (PaaS)+ Industry Leader (SaaS)

Consumption economics, B4B, Gartner’s reports, and go test each platform.

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