Andrew Townhill, Technology Director Simon Thurman, Architect Evangelist Microsoft

What the *cloud* is my CIO thinking

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 ;-)

4

The 5th Platform

INTERNET Mid ‘90sBrowsers, Email, eCommerce, Hosting, Wi-Fi, Web 2.0

CLIENT/SERVER Mid ‘80sDistributed Computing

PC & APPS Early ’80sWord Processor, SpreadsheetsDOS, GUI, Windows

CLOUD Late 2000s & FutureCloud Computing, Social NetworksProducts>Solutions>Services

MAINFRAME ’60s & ‘70sFinancial, MRPReservations

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Cloud Computing Defined

Providing IT resources, as a service, in a dynamic and scalable manner over a networkFive essential characteristics of the Cloud:

On-demand self-service Broad network accessResource poolingRapid elasticity Measured service

Public, Private, Community, HybridSoftware, Platform, Infrastructure ‘as a Service’

*National Institute Of Standards and Technology v15

6

Developer ExperienceUse existing skills and tools.

The Windows Azure Platform

Compute Storage Management Relational data Management Connectivity Access control

platform AppFabric

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14B Ads Per Month

500M Active Windows Live IDs!

369M People Using Hotmail!

Over 3B WW Queries Each Month!

Over 6M Songs In The Catalog

Over 600M Unique Users

20M People On Xbox Live!

2B Unique Calls Per Year

Is it new?

8

Business Opportunities

Demand/ScaleGlobal Presence ElasticityAgility Metering of Usage

AutomationProvisioning UpgradesFailure Recovery Simple process

Economic Avoidance of costMediated BillBusiness modelRevenue streams

9

Workload Patterns Optimal For Cloud

Usage

Com p u t e

Time

AverageInactivity

Period

“On and Off “

On & off workloads (e.g. batch job)Over provisioned capacity is wasted Time to market can be cumbersome

Com p u t e

Time

“Unpredictable Bursting“

Average Usage

Unexpected/unplanned peak in demand Sudden spike impacts performance Can’t over provision for extreme cases

Average Usage

Com p u t e

Time

“Growing Fast“

Successful services needs to grow/scale Keeping up w/ growth is big IT challenge Complex lead time for deployment

Com p u t e

Time

Average Usage

“Predictable Bursting“

Services with micro seasonality trends Peaks due to periodic increased demandIT complexity and wasted capacity

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Business Opportunities

Demand/ScaleGlobal Presence ElasticityAgility Metering of Usage

AutomationProvisioning UpgradesFailure Recovery Simple process

Economic Avoidance of costMediated BillBusiness modelRevenue streams

“Our Users Are Moving Faster & Making Decisions To Go To The Cloud FASTER Than We

Are!”

THE CHALLENGE

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The Role of Enterprise IT

Does IT still exist?Which roles will be in demand?Become the advisor to the businessShare the art of the possibleBring architectural and engineering rigour Procure services to meet business requirementsHold the keys

13

New Problems, New Complexities

Security, Security, SecurityIntegration and Service CatalogueMigrationData At Rest, Data ModelsExit StrategyCommercial and Operational RiskIntegration with operational model of the business Regulatory considerations

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

15

Adoption - Extension of Buy Versus BuildBu

ild

On Premise Private Cloud Public Cloud Vendor

SaaSIaaS - Public

PaaS

IaaS - PrivateOn Premise

IaaS - PublicIaaS - PrivateOn Premise

Buy

Build

16

Customer ExampleBu

ild

On Premise Private Cloud Public Cloud Vendor

SaaSIaaS - Public

PaaS

IaaS - PrivateOn Premise

IaaS - PublicIaaS - PrivateOn Premise

Buy

Build

Email

Anti Malware

CRM

Tax & Finance

Web Presence

Public Data

HR System

17

Customer ExampleBu

ild

On Premise Private Cloud Public Cloud Vendor

SaaSIaaS - Public

PaaS

IaaS - PrivateOn Premise

IaaS - PublicIaaS - PrivateOn Premise

Buy

Build

Email

Anti Malware

CRM

Tax & Finance

Web Presence

Public Data

HR System

18

Customer ExampleBu

ild

On Premise Private Cloud Public Cloud Vendor

SaaSIaaS - Public

PaaS

IaaS - PrivateOn Premise

IaaS - PublicIaaS - PrivateOn Premise

Buy

Build

Email

Anti Malware

CRM

Tax & Finance

Web Presence

Public Data

HR System

19

Customer ExampleBu

ild

On Premise Private Cloud Public Cloud Vendor

SaaSIaaS - Public

PaaS

IaaS - PrivateOn Premise

IaaS - PublicIaaS - PrivateOn Premise

Buy

Build

Email

Anti Malware

CRM

Tax & Finance

Web Presence

Public Data

HR System

20

Customer ExampleBu

ild

On Premise Private Cloud Public Cloud Vendor

SaaSIaaS - Public

PaaS

IaaS - PrivateOn Premise

IaaS - PublicIaaS - PrivateOn Premise

Buy

Build

Email

Anti Malware

CRM

Tax & Finance

Web Presence

Public Data

HR System

21

Customer ExampleBu

ild

On Premise Private Cloud Public Cloud Vendor

SaaSIaaS - Public

PaaS

IaaS - PrivateOn Premise

IaaS - PublicIaaS - PrivateOn Premise

Buy

Build

Email

Anti Malware

CRM

Tax & Finance

Web Presence

Public Data

HR System

22

Customer ExampleBu

ild

On Premise Private Cloud Public Cloud Vendor

SaaSIaaS - Public

PaaS

IaaS - PrivateOn Premise

IaaS - PublicIaaS - PrivateOn Premise

Buy

Build

Email

Anti Malware

CRM

Tax & Finance

Web Presence

Public Data

HR System

23

Customer ExampleBu

ild

On Premise Private Cloud Public Cloud Vendor

SaaSIaaS - Public

PaaS

IaaS - PrivateOn Premise

IaaS - PublicIaaS - PrivateOn Premise

Buy

Build

Email

Anti Malware

CRM

Tax & Finance

Web Presence

Public Data

HR System

24

What are customers thinking…

AirlineSeparate applications into bronze, silver, and gold categories Service that is already being delivered over the Internet

RetailCouldn’t justify a business case to deliver the infrastructure (reliability, scale, …)Trials, skunk works

CommunicationsNew business model

Financial ServicesQuarterly calculations

GeneralMarketing Campaigns

25

Wrap Up

It’s inevitableYou’re already doing itThere will be challenges Not overnight and not everything Your role is for you to define Opportunity for IT to engage with the business

© 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.