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Nearly every enterprise today can benefit from using public cloud platforms ! !

Competitive Advantage to Firm First firm in an industry implements innovation Second firm in the industry implements innovation Third firm in the industry implements innovation TIME

Window of differentiation Competitive Advantage to Firm Utility IT Strategic IT

What strategic applications need Ability to support new, modern business ideas Elastic resources Support for fast development What utility applications need Low cost Reliability Public cloud platforms can help with both

Microsoft Azure provides computing resources in data centers around the world US Europe Asia Australia Brazil

Can a public cloud platform keep my data and applications safe? ? ANSWER You must learn to trust your public cloud provider

Can I still meet my regulatory requirements in the public cloud? ? Laws and Regulations for Off-Premises Computing FINANCIAL SERVICES HEALTHCARERETAILING NATIONAL GOVERNMENT LOCAL GOVERNMENT... COUNTRY Canada United States Germany United Kingdom Australia Japan... ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ????? ? ? ? ? ? ? ? ANSWER You must understand the rules that apply to you

Will public cloud datacenters be up when they’re needed? ?? ANSWER They’ll be at least as good as your own datacenter, and there are SLAs

Will public cloud platforms make me lose my job? ? ANSWER Probably not, but you’ll need to learn some new skills

Cloud Services Worker Roles Web Roles Application Virtual Machines User-Supplied VMs Gallery VHDs Infrastructure as a Service (IaaS) Platform as a Service (PaaS) Web Sites Application Becoming part of Azure App Services

SQL DatabaseBlob Storage DBMS in a VM VM SQL Server, MySQL, … Binary storage IaaS relational storage PaaS relational storage

MICROSOFT AZURE ENTERPRISE

User Bandwidth Inbound: Free Outbound: $0.05 to $0.087/GB US and Europe, $0.12 to $0.138/GB Asia/Pacific, $0.16 to $0.181/GB Brazil Data Blob Storage: $0.022 to $0.061/GB per month, depending on size and capabilities SQL Database: $4.99 to $3,720 per month, depending on database size and throughput Compute Virtual Machines: $0.02 to $1.32/instance per hour depending on instance size and capabilities Enterprise agreements, etc. commonly discount these prices

Data storage Cloud identity VMs on demand Disaster recovery Deploying packaged applications Moving existing applications to the public cloud Utility IT Strategic IT

Blobs ENTERPRISE MICROSOFT AZURE SAN appliance for hybrid storage Microsoft StorSimple Windows Server, SQL Server, … Store backup data Applications Store arbitrary binary data, e.g., videos

Data stored in blobs is compressed, deduped, and encrypted ENTERPRISE MICROSOFT AZURE Users StorSimple Servers App Blobs

Lower cost EXAMPLE One terabyte stored in geo-redundant blobs  Operations on the data: 10,000,000/month  Data transfer out: 500 gigabytes/month COSTS Storage: $61/month Operations: $0.36/month Data transfer: $43.01/month (US/Europe) $68.31/month (Asia/Pacific) $89.60/month (Brazil) Total: $104.37/month (US/Europe) $129.67/month (Asia/Pacific) $150.96/month (Brazil) $

ENTERPRISE MICROSOFT AZURE 2 2 Login IT Admin Windows Server Active Directory User 1 1 Configure link Azure Active Directory Azure Active Directory OTHER ENVIRONMENT SaaS Application 3 3 Access on-premises and SaaS applications On-Premises Application

Single sign-on to diverse SaaS applications Azure AD Premium supports: -Office 365 -Dynamics CRM Online -Google Apps -Salesforce CRM -ServiceNow -Dropbox -Many more Multi-factor authentication Azure AD Premium can require a password plus phone-delivered code for logins Simpler identity administration Azure AD Premium provides: -Self-service password resets for SaaS applications -Reports of who accessed which applications, etc.

ENTERPRISE MICROSOFT AZURE VMs Developers Azure Virtual Machines 1 1 Create VMs 2 2 Use VMs IT Admin or Developer Azure Management Portal Azure Management Portal

Fast and simple way to get inexpensive VMs Can use Microsoft Azure- provided VHDs or your own, Windows or Linux Users can potentially access cloud VMs as if they were local Useful in many situations Dev/test environment for cloud or on-premises apps Useful for custom and packaged apps, e.g., SAP Can shut down VMs when they’re not needed Such as nights or weekends when developers aren’t active

MICROSOFT AZURE ENTERPRISE Users VM SQL Server App 2 2 Create SQL Server AlwaysOn availability group 3 3 Redirect here if an on-premises failure occurs Azure Virtual Machines 1 1 Create VM IT Admin Azure Management Portal

ENTERPRISE MICROSOFT AZURE Users Hyper-V VMs cations s Workloads cations s Workloads cations s Workloads VMware VMs VMs cations s Workloads VMs cations s Workloads VMs cations s Workloads 1 1 Create backup logic for workloads 2 2 On failure, activate backup workloads on Azure Azure Site Recovery

Can cover a range of scenarios From database DR to full workload DR Lower cost No need to maintain a dedicated facility just for DR Organizations can provide DR for more applications, because it’s cheaper Provides diverse recovery options Microsoft Azure has datacenters around the world Azure Site Recovery supports DR to Azure, to a hoster, and to another enterprise datacenter

MICROSOFT AZURE ENTERPRISE IT Admin Users Azure Virtual Machines 1 1 Create VMs VMs SharePoint SQL 2 2 Deploy and configure SharePoint Active Directory VM Active Directory Active Directory Azure Virtual Network Azure Management Portal Azure Management Portal

Faster deployment No need to wait for central IT IT resources become an operating expense Rather than a capital expense Lower cost Microsoft Azure is probably cheaper today and certainly cheaper tomorrow; prices keep going down

MICROSOFT AZURE ENTERPRISE IT Admin Active Directory Users VM VMs Active Directory Active Directory Custom Application Custom Application DBMS 2 2 Deploy and configure application 1 1 Create VMs Microsoft Azure Virtual Machines Microsoft Azure Virtual Network Microsoft Azure Management Portal

Lower cost EXAMPLE Two medium VMs ($.18/hour each) running continuously Stores 100 gigabytes  Operations on the data: 30,000,000/month  Data transfer out: 50 gigabytes/month COSTS Compute: $268.00/month Storage: $7.18/month Bandwidth: $3.92/month (US and Europe) $6.21/month (Asia/Pacific) $8.15/month (Brazil) Total: $279.10/month (US/Europe) $281.39/month (Asia/Pacific) $283.33/month (Brazil) $ Making good decisions here requires apples-to-apples comparisons

Data storage Cloud identity VMs on demand Disaster recovery Deploying packaged applications Moving existing applications to the public cloud Utility IT Strategic IT

New employee-facing applications New customer-facing applications New parallel applications Utility IT Strategic IT

To improve the execution of an existing business model Such as automating a current business process To support a new business model Such as offering customers self-service access to services

Customer Segments Customer Relationships Channels CUSTOMER Key PartnersKey Activities Key Resources INFRASTRUCTURE Cost StructureRevenue Stream FINANCE Source: Business Model Generation, Alexander Osterwalder, et al. Value Proposition OFFERING

Customer Segments Cloud apps can reach smaller customers and partners more cheaply Customer Relationships Cloud apps allow more customer self-service Channels Cloud apps allow selling directly to customers Key Partners Your cloud platform vendor becomes an important partner Key Activities Key Resources Massive, cheap compute and storage are now available to anybody Cost Structure Elastic pricing makes very spiky apps more economically feasible Revenue Stream Pay-as-you-go computing resources allow lower-risk experimentation with new business models In-house IT resources can be reallocated ? Value Proposition

ENTERPRISE MICROSOFT AZURE Developer Users Azure Virtual Machines 1 1 Create VMs 2 2 Deploy application and data Azure Management Portal VM Application DBMS

Ease and speed of deployment No need to wait for central IT Capabilities you can’t easily get otherwise Geographic distribution Easy up-and-down scaling  Especially important for spiky apps Lower cost Because of public cloud platform scale and/or elasticity

ENTERPRISE Developer Users MICROSOFT AZURE Cloud Services/ Web Sites 1 1 Deploy application SQL Database, … Application Azure Management Portal

Ease and speed of deployment The PaaS platform already exists--no need to create it Lower management cost The PaaS platform maintains the environment for you Lower risk Fewer things to configure means fewer opportunities for error

ENTERPRISE MICROSOFT AZURE Developer CUSTOMERS Cloud Services/ Web Sites 1 1 Deploy application SQL Database, … Application Azure Management Portal

Capabilities you can’t easily get otherwise, e.g., Massive scale Easy up-and-down scaling High reliability Geographic distribution Services for mobile clients Lower cost Because of public cloud platform scale and elasticity Ease and speed of deployment Especially with PaaS

Examples Mobile applications Online ticket sales Marketing web sites, high-risk innovative apps Consumer web applications Application Characteristic Has very spiky usage Running the application on-premises raises security issues Needs fast access to computing resources with no commitment Requires massive or global scale Start-ups, progressive businesses Customers don’t want in-house IT

ENTERPRISE MICROSOFT AZURE Developer/ IT Admin Users 1 1 Create cluster Submit HPC job VMs Logic Windows Server with HPC Pack 2012

ENTERPRISE MICROSOFT AZURE Developer/ IT Admin HDInsight 1 1 Create cluster VMs Submit big data job Logic User 3 3 Get results

Lower cost Pay only for the VMs you need when you need them On-demand access to an HPC cluster Windows HPC Server provides built-in support for creating and managing a compute cluster on Azure On-demand access to a Hadoop cluster HDInsight provides built- in support for creating and managing a Hadoop cluster on Azure

New employee-facing applications New customer-facing applications New parallel applications Utility IT Strategic IT

What are you waiting for? ! !

David Chappell is Principal of Chappell & Associates ( in San Francisco, California. Through his speaking, writing, and consulting, he helps people around the world understand, use, and make better decisions about new technology. David has been the keynote speaker for more than a hundred events and conferences on five continents, and his seminars have been attended by tens of thousands of IT leaders, architects, and developers in fifty countries. His books have been published in a dozen languages and used regularly in courses at MIT, ETH Zurich, and other universities. In his consulting practice, he has helped clients such as Hewlett-Packard, IBM, Microsoft, Stanford University, and Target Corporation adopt new technologies, market new products, and educate their customers and staff.