Nearly every enterprise today can benefit from using Microsoft Azure i i

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 improve both

US Europe Asia Australia

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

Can I still meet regulatory requirements in the public cloud? ? Laws and Regulations for Off-Premises Computing FINANCIAL SERVICES HEALTHCARERETAILING NATIONAL GOVERNMENT LOCAL GOVERNMENT... COUNTRY United Kingdom United States Japan Singapore Germany South Korea... ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ????? ? ? ? ? ? ? ? ANSWER You must understand the rules that apply to you 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 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 Some things will change; people who don’t like change shouldn’t work in the technology industry ANSWER Some things will change; people who don’t like change shouldn’t work in the technology industry

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 IIS Application IISApplication Platform as a Service (PaaS)

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

MICROSOFT AZURE ENTERPRISE Virtual Network allows a VPN connection to Microsoft Azure

User Bandwidth Inbound: Free Outbound: $0.05 to $0.12/GB US and Europe $0.12 to $0.19/GB elsewhere Storage SQL Database: $0.999 to $9.99/GB per month, depending on database size Blob Storage: $0.022 to $0.061/GB per month, depending on size and capabilities Compute Virtual Machines: $0.02 to $1.32/instance per hour, depending on instance size and capabilities Enterprise agreements commonly discount these prices

Using blob storage Using VMs for dev/test Deploying packaged applications Moving existing applications to the public cloud Utility IT Strategic IT

ENTERPRISE MICROSOFT AZURE Blobs SAN appliance for hybrid storage Microsoft StorSimple Microsoft StorSimple SQL Server Store backup data System Center 2012 Data Protection Manager Store backup data Applications Store arbitrary binary data, e.g., videos

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: $0.50/month Data transfer: $60/month (US/Europe) $95/month (elsewhere) Total: $121.50/month (US/Europe) $156.50/month (elsewhere) $

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

ENTERPRISE MICROSOFT AZURE Microsoft Azure Virtual Network VMs Developers Microsoft Azure Virtual Machines 1 1 Create VMs VM Active Directory Active Directory 2 2 Use VMs IT Admin or Developer Microsoft 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 Innovation/proof of concept projects Having the capability available is cheap A Microsoft Azure Virtual Network connection costs $0.05/hour

MICROSOFT AZURE ENTERPRISE IT Admin Users Microsoft Azure Virtual Machines 1 1 Create VMs VMs SharePoint SQL 2 2 Deploy and configure SharePoint Active Directory VM Active Directory Active Directory Microsoft Azure Virtual Network Microsoft 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 Windows 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: $6.10/month Bandwidth: $6/month (US and Europe) $9.50/month (elsewhere) Total: $280.10/month (US/Europe) $283.50/month (elsewhere) $ Making good decisions here requires knowing current on-premises costs

Using blob storage Using VMs for dev/test 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

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

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

MICROSOFT AZURE ENTERPRISE Developer Users 1 1 Deploy application and data VMs App SQL Database Microsoft Azure Web Sites or Microsoft Azure Cloud Services Microsoft Azure Management Portal

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

MICROSOFT AZURE ENTERPRISE Developer Microsoft Azure Web Sites or Microsoft Azure Cloud Services 1 1 Deploy application and data VMs App SQL Database CUSTOMERS Microsoft Azure Management Portal

Capabilities you can’t easily get otherwise: Massive scale Easy up-and-down scaling High reliability Geographic distribution NoSQL database service Lower cost Because of public cloud platform scale and elasticity Ease and speed of deployment Especially with PaaS

Examples Backends for enterprise 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 job VMs Logic Windows Server with HPC Pack 2012

MapReduce Job ENTERPRISE MICROSOFT AZURE Developer/ IT Admin Microsoft Azure HDInsight 1 1 Create Hadoop cluster VMs Submit MapReduce job Logic User 3 3 Get results

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

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 forty-five 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. Earlier in his career, David wrote networking software, chaired a U.S. national standards working group, and played keyboards with the Peabody-award-winning Children’s Radio Theater. He holds a B.S. in Economics and an M.S. in Computer Science, both from the University of Wisconsin-Madison.

Having a friend buy your coffee? Yea, it’s kind of like that. MSDN Subscribers get up to $150/mo in Azure credits. Stop by the Developer Platform and Tools booth and visit the MSDN Subscriptions station to activate your benefits and receive a gift! 3 Steps to New Gear! With Application Insights

Microsoft Engineering Stories Visual Studio Industry Partner Program Visual Studio | Integrate