2. Paulo Rocha paulo.rocha@consiglio.co.nz including material by Gianpaolo Carraro Developer and Partner Evangelist Lead, Microsoft Australia

3. Agenda Cloud Computing, Software as a Service, Software+Services What the...? To Cloud Compute or not? Is it right for me? When is it right for me? How not to mess up... Don’t create a storm cloud 3

4. WHAT IN THE CLOUD!

5. Transformational Era 5

6. The Industry Debate Security & Privacy Customizability Visibility & Control Data Accessibility Global Reach Ease of Provisioning Business Agility Deployability & Manageability 6

7. Extending tools and platform to cloud Experience across multiple devices Best-in-class SLAs and IT governance Best of both worlds User in control Deployment choices for IT Software + Services 7

8. Externalization of IT Externalisation of IT Engage across the Web Inward focused solutions Limited by “scale up” 8

9. Power of Choice Software + Services 9

10. Integrated Experiences Communicate and collaborate using rich clients that work seamlessly with other applications 10

11. The Move is On Apple iTunes, iPhone SDK Adobe AIR Quicken Online SAP Business ByDesign Lotus Notes Hosted Messaging Siebel CRM OnDemand Sun Hydrazine Google Chrome, Android, Gears Yahoo! BrowserPlus, Zimbra Desktop eBay Desktop, Skype Salesforce Offline Edition 2.0, Mobile NetSuite Office integration Zoho CRM Outlook Edition 11

12. Nick Carr “The real opportunity that the cloud offers large companies today is as a supplement or complement to their in- house operations rather than as a complete replacement” Nick Carr “Rough Type” blog (April 2009) http://www.roughtype.com/archives/2009/04/the_big_company.php “…larger companies…can be expected to pursue a hybrid approach for many years, supplying some hardware and software requirements themselves and purchasing others over the grid. One of the key challenges for corporate IT departments, in fact, lies in making the right decisions about what to hold on to and what to let go.” “The Big Switch” (p118) 12

13. Google “Google’s Secure Data Connector is instrumental in connecting data from behind the company firewall to the web-based apps and gadgets that exist in the cloud" Mark Woollen, Vice President of Social CRM at Oracle (April 2009) http://www.webwire.com/ViewPressRel.asp?aId=92006 “Economics of IT are changing, and many companies are looking at combinations of on-premise software and software as a service.” Rishi Chandra, Product Manager for Google Enterprise (June 2008) http://www.intelligententerprise.com/blog/archives/2008/06/google_sees_clo.html “There are things you can do in desktop apps that you can't do in Web apps” Linus Upson, Google Engineering Director http://news.cnet.com/8301-17939_109-10227150-2.html 13

14. Salesforce.com “But a new model has emerged powered by fantastic experiences at the front end and platform delivered as a service on the back end” Steve Fisher, SVP Platform Division, Salesforce.com http://www.eweek.com/c/a/Application-Development/Adobe-Targets-the-Enterprise-with-SAP-Salesforce-Integration 14

15. Vendor Investments? “Cloud” Data Centers Microsoft investing $2.3 billion in building data centers 13 global data centers that using 70 megawatts By the end of 2009, there will be 20 data centers using 180 megawatts Size of 9-10 football fields and enough wire to wrap around the earth several times Adding 10K–20K servers a month Processing 1 billion ID authentications per day Energy efficiency and sustainability focus 15

16. SO, IS IT RIGHT FOR ME?

17. First Things First... Applications or Clouds? Cloud Storage Cloud Compute (Win) Billing Service MS Cloud SVC Compute Provider Windows Azure My Application My Cloud Cloud core services Cloud Platform 17

18. Which one is better? 1 litre of fuel  ¼ ton of ‘freight’ ; 8 kms1 litre of fuel  1 ton of freight ; 190 kms but … Can mostly go from A to B Leaves 2x day at 9.12am and 11.14pm but … Can go anywhere there is a road Ready to go anytime LowHigh Low Economy of Scale Control 18

19. This is not new… LowHigh Low Build vs. Buy Economy of Scale Control (features) 19

20. This is new… Economy of Scale LowHigh Control (features and SLA) HighLow On premises vs. in the cloud 20

21. Trading Control for Economy of scale (or vice versa) Do it yourself = High control but Low Economy of Scale Get it “as a service” = High Economy of Scale but Low control Feature Control Economy of Scale (EoS) do it yourself (high control but low EoS) “as a service” (high EoS but low control) not possible (high Control – high EoS) not interesting (low control – low EoS) Trade Off low high 21

22. The Basic Choices “Packaged” Application An application that I buy “off the shelf” and run myself “Packaged” Application An application that I buy “off the shelf” and run myself Self Hosted “Home Built” An application that I develop and run myself Self Hosted “Home Built” An application that I develop and run myself Hosted “Home Built” An application that I develop myself, but run at a hoster Hosted “Home Built” An application that I develop myself, but run at a hoster Hosted “Packaged” An application that I buy “off the shelf” and then run at a hoster Hosted “Packaged” An application that I buy “off the shelf” and then run at a hoster Cloud Platform An application that I develop myself, but run in the cloud Cloud Platform An application that I develop myself, but run in the cloud “Software as a Service” A hosted application that I buy from a vendor “Software as a Service” A hosted application that I buy from a vendor Build vs. Buy Build Buy On premises vs. Cloud On premisesCloud 22

23. The Basic Choices “Packaged” Application An application that I buy “off the shelf” and run myself “Packaged” Application An application that I buy “off the shelf” and run myself Self Hosted “Home Built” An application that I develop and run myself Self Hosted “Home Built” An application that I develop and run myself Build vs. Buy Build Buy Hosted “Home Built” An application that I develop myself, but run at a hoster Hosted “Home Built” An application that I develop myself, but run at a hoster Hosted “Packaged” An application that I buy “off the shelf” and then run at a hoster Hosted “Packaged” An application that I buy “off the shelf” and then run at a hoster Cloud Platform An application that I develop myself, but run in the cloud Cloud Platform An application that I develop myself, but run in the cloud “Software as a Service” A hosted application that I buy from a vendor “Software as a Service” A hosted application that I buy from a vendor On premises vs. Cloud On premisesCloud Maximum Economy of Scale All acceptable options (trade off) Maximum Control 23

24. “MassiveEnterprise” Example “Packaged” Application “Packaged” Application “Home Built” Application “Home Built” Application Hosted “Home Built” Hosted “Home Built” Hosted “Packaged” Hosted “Packaged” “Software as a Service” Cloud Platform Clinical Trial Molecular Research HR System Email Issue Tracking ERP “Too costly to run this myself, but I’ve made too many customizations” Build vs. Buy Build Buy On premises vs. Cloud On premisesCloud 24

25. “MassiveEnterprise” Example “Packaged” Application “Packaged” Application “Home Built” Application “Home Built” Application Hosted “Home Built” Hosted “Home Built” Hosted “Packaged” Hosted “Packaged” “Software as a Service” Cloud Platform Clinical Trial Molecular Research HR System Email Issue Tracking ERP “CRM and Email are commodity services – They have no customizations, and it’s cheaper for someone else to run these” Build vs. Buy Build Buy On premises vs. Cloud On premisesCloud 25

26. “MassiveEnterprise” Example “Packaged” Application “Packaged” Application Hosted “Home Built” Hosted “Home Built” Hosted “Packaged” Hosted “Packaged” ERP “Home Built” Application “Home Built” Application “Software as a Service” Cloud Platform Clinical Trial Molecular Research HR System Email Issue Tracking “I can’t afford to maintain this old HR application written in VB – it’s driving me mad!” “…but due to privacy issues, I prefer keeping my HR data on-premises” On premises vs. Cloud Build vs. Buy Build Buy On premises vs. Cloud On premisesCloud 26

27. “MassiveEnterprise” Example Hosted “Home Built” Hosted “Home Built” Hosted “Packaged” Hosted “Packaged” ERP “Packaged” Application “Packaged” Application “Home Built” Application “Home Built” Application “Software as a Service” Cloud Platform Clinical Trial Molecular Research Email Issue Tracking HR System “I wish I had access to cheaper compute and storage when I need it” Build vs. Buy Build Buy On premises vs. Cloud On premisesCloud 27

28. “MassiveEnterprise” Example Hosted “Home Built” Hosted “Home Built” Hosted “Packaged” Hosted “Packaged” ERP “Packaged” Application “Packaged” Application “Home Built” Application “Home Built” Application “Software as a Service” Cloud Platform Clinical Trial Molecular Research Email Issue Tracking HR System “THIS is where I want to spend my IT resources – I’m going to double down on this application!” Build vs. Buy Build Buy On premises vs. Cloud On premisesCloud 28

29. “MassiveEnterprise” vs. Next Hosted “Home Built” Hosted “Home Built” Hosted “Packaged” Hosted “Packaged” ERP “Packaged” Application “Packaged” Application “Home Built” Application “Home Built” Application “Software as a Service” Cloud Platform Clinical Trial Molecular Research Email Issue Tracking HR System Build vs. Buy Build Buy On premises vs. Cloud On premisesCloud 29

30. On premises vs. Cloud Hosted “Home Built” Hosted “Home Built” Hosted “Packaged” Hosted “Packaged” ERP “Packaged” Application “Packaged” Application “Home Built” Application “Home Built” Application “Software as a Service” Cloud Platform Clinical Trial Molecular Research Email Issue Tracking HR System “Run On Premises” Control SLA of Applications Build vs. Buy Build Buy On premisesCloud 30

31. Build vs. Buy Build Buy On premises vs. Cloud On premisesCloud Hosted “Home Built” Hosted “Home Built” Hosted “Packaged” Hosted “Packaged” ERP “Packaged” Application “Packaged” Application “Home Built” Application “Home Built” Application “Software as a Service” Cloud Platform Clinical Trial Molecular Research Email Issue Tracking HR System “Home Built” Control Features of Applications 31

32. “MassiveEnterprise” Challenge “Packaged” Application “Packaged” Application “Home Built” Application “Home Built” Application Clinical Trial Molecular Research HR System Email CRM ERP Hosted “Home Built” Hosted “Packaged” “Software as a Service” Cloud Platform “Crossing corporate boundaries!” Build vs. Buy Build Buy On premises vs. Cloud On premisesCloud 32

33. Identity Challenges Access Control AuthN, SSO, AuthZAuthN, SSO, AuthZ Identity Lifecycle Identity Portability Interoperability 33

34. Monitoring and Management Challenges SLA Monitoring Halting / Pausing / Throttling… Trigger an action (such as Backup) 34

35. Data Challenges Import/Export Data PrivacyOwnership Business continuity Reporting and Analytics 35

36. Bottom Line … Not a replacement … Ask yourself: What ‘tool’ do I need? How do I get there? 36

37. SO, WHAT DO I DO? HOW DO I GET THERE?

38. First Things First... Complexitywill Kill You! 38

39. 1. Partition to Reduce Complexity 39

40. 1. Partition to Reduce Complexity 40

41. Learning your ABCs 41

42. 2. Determine the Priorities 42

43. The Process Phase Deliverables Goals Set stage for successful engagement  Project Kickoff  Process Training  Governance Definition  Tool Specialization  Initial Environment Analysis  Pain / gain parameter definition Pain/Gain ABC identification  ABC Inventory  ABC Containment Analysis  ABC Interaction Analysis ABC Simplification  Type Analysis  Type Hierarchy  TID Analysis  Elimination Analysis Delivery Prioritization  Business Value Analysis  Technical Risk/Cost Analysis  Value Graph Analysis Iterative Delivery  Architect  Implement  Deploy  Evaluate Legend ABC = Autonomous Business Capability DI = Deployment/Implementation SIP = Simple Iterative Partitions TID = Type / Implementation / Deployment PreparationPreparationSimplificationSimplificationPartitioningPartitioningPrioritisationPrioritisationDeliveryDelivery 43

44. Watch out for bad decisions... Small Mistakes, Big Consequences Cloud or no cloud... 44

45. Watch out for bad decisions... Small Mistakes, Big Consequences Cloud or no cloud... 45

46. Related Content ARC203– Services and Complexity– Roger Sessions SOA207– Selling SOAs TTK020 – TechTalk ObjectWatch www.objectwatch.com/sip.htm Head in the Cloud, Feet on the Ground The Architecture Journal – Issue 17, October 2008 http://download.microsoft.com/download/c/2/b/c2b3f5f0-4ff5-4bbd-aba9-c33090cd5476/AJ17_EN.zip

48. www.microsoft.com/teched Sessions On-Demand & Community http://microsoft.com/technet Resources for IT Professionals http://microsoft.com/msdn Resources for Developers www.microsoft.com/learning Microsoft Certification & Training Resources Resources

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50. © 2009 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.