1. Welcome to Architect Insight 2010

2. Cloud as a business differentiator?
Ulrich Homann Chief Architect, WW Enterprise Services Microsoft Corp

3. The Cloud - Overwhelming Choices
Consumer’s Perspective
Describe what they want, not how it is achieved
Require a standard interface to the service
Want a transparent, utility-like delivery of their service
Want a clearly defined cost model
Want to easily measure delivery
They think in terms of business, not IT
Want unlimited availability
and capacity on demand
Provider’s Perspective
They are concerned with providing service efficiently
They want to drive standardisation to reduce costs and simplify operations
They want to use contracts to agree requirements
They aim for reliable, scalable, repeatable and predictable
Public Cloud
Platform as a Service
Software as a Service ?
Outsource
In House
Infrastructure as a Service
Dynamic Data Center
Private Cloud

4. Defining Cloud Computing
Sourcing IT capabilities
Introducing an IT supply-chain
IT as a ‘Service”
3 basic types:
In-house
Out-sourced
“Cloud” sourced

5. Defining Cloud Computing
Application runs
In-house
Buy my own hardware, and manage my own data center
Application runs
In-house
Bring my own machines, connectivity, software, etc.
Complete control and responsibility
Upfront capital costs for the infrastructure

6. Defining Cloud Computing
Application runs
on-premises
Buy my own hardware, and manage my own data center
Application runs
In-house
Bring my own machines, connectivity, software, etc.
Complete control and responsibility
Upfront capital costs for the infrastructure
Application is Outsourced
Pay someone to host my application using hardware that I specify
Application is Outsourced
Rent machines, connectivity, software
Less control, but fewer responsibilities
Lower capital costs, but pay for fixed capacity, even if idle

7. Defining Cloud Computing
Application runs
on-premises
Buy my own hardware, and manage my own data center
Application runs
In-house
Bring my own machines, connectivity, software, etc.
Complete control and responsibility
Upfront capital costs for the infrastructure
Application runs at a hoster
Pay someone to host my application using hardware that I specify
Application is Outsourced
Rent machines, connectivity, software
Less control, but fewer responsibilities
Lower capital costs, but pay for fixed capacity, even if idle
Application runs using cloud platform
Pay someone for a pool of computing resources that can be applied to a set of applications
Application runs using cloud platform
Shared,
multi-tenant environment
Offers pool of computing resources, abstracted from infrastructure
Pay as you go

8. Why Customers are Embracing the Cloud
Reduce CAPEX & OPEX
Predictable & Pay per Use Subscriptions
Focus on Market Differentiation
Energy Efficiency
Latest Versions with No Server Upgrades
Choice, Flexibility, & Resource Agility
Merger, Acquisition & Divestitures
Up and Running Quickly
The bottom line: Early adopters are finding serious benefits, meaning that cloud computing is real and warrants your scrutiny as a new set of platforms for business applications.” – Forrester, August 2009
“By 2012, 20% of businesses will own no IT assets.”
Gartner, Gartner Highlights Key Predictions for IT Organizations and Users in 2010 and Beyond, January, 2010
This is the Gartner & Forrester Approved Slide
Garter 2012 quote is public.
Survey of 318 customers on satisfaction with SaaS noted “top 3 pros were no in-house maintenance(57%), shorter rollout(49%), usable anywhere via internet(46%).”
Burton Group, “Gartner and Burton Group SaaS Surveys: Same High-Level Findings, Different Conclusions.”
Craig Roth July, 2009.

10. Why customers are embracing the cloud
GlaxoSmithKline
Microsoft Online
“Enables us to reduce IT operational costs by roughly 30%”
“Introduce a variable cost subscription model for collaboration technologies”
“Allows us to more rapidly scale or divest our investment as necessary”
City of Carlsbad
“Having the servers live elsewhere is about initial capital savings”
“We would have had to hire more administrators”
“We expect a savings of approximately 40 percent annually”
Large Coffee Retailer
Employee store portal used by retail field and corporate teams to collaborate
Portal provides timely access to business analysis reports, news, & training
Increased operational effectiveness for employees and partners
Aviva
One Aviva Intranet & Collaboration tools
two-year project delivered worldwide in 142 days at half the estimated cost
Reed Jewelers
Reduced infrastructure costs by 90 percent
Reduced support work by 80 percent
Improved the availability of critical messaging systems
Kelley Blue Book
Windows Azure
Save U.S.$100,000 annually in hosting costs moving web site to Windows Azure
Reduce capital expenditures for new hardware & use IT resources more strategically
Increase its competitive advantage by focusing on delivering new features
Domino’s
“Daily peaks for Friday night’s. Super Bowl drives 50% increase of online orders!
Windows Azure allows us to focus on customer functionality, not hosting capacity
Help Us Save Money and Gain Efficiencies
Help Us Drive Innovation
Help Us Grow Our Business

11. Why customers are embracing the cloud
Connecting suppliers:
Pharma company: drug component purchasing via cloud-hosted supplier network saves USD 100 million/year
Connecting customers:
Fashion company: early design feedback via Facebook application and integration with in-house PLM system
Help Us Save Money and Gain Efficiencies
Help Us Drive Innovation
Help Us Grow Our Business

12. Why customers are embracing the cloud
Connecting customers:
SMART electric car: ‘metering’ for customers [how much power is left]
Help Us Save Money and Gain Efficiencies
Help Us Drive Innovation
Help Us Grow Our Business

13. Workload Patterns Optimal for Cloud
“On and Off “
“Growing Fast“
Inactivity
Period
Compute
Compute
Average Usage
Average
Usage
Time
Time
On and off workloads (e.g. batch job)
Over provisioned capacity is wasted
Time to market can be cumbersome
Successful services needs to grow/scale
Keeping up w/growth is big IT challenge
Complex lead time for deployment
“Unpredictable Bursting“
“Predictable Bursting“
Compute
Compute
Average Usage
Average Usage
Time
Time
Unexpected/unplanned peak in demand
Sudden spike impacts performance
Can’t over provision for extreme cases
Services with micro seasonality trends
Peaks due to periodic increased demand
IT complexity and wasted capacity

14. Macro-economic impact: growth engine for Small & Medium businesses
There are about 23 million small and medium businesses in Europe accounting for:
99% of all firms
100 million jobs
UK examples:
Huddle
WAYN
Dezineforce
Cognidox
EU examples
Lokad (France)
TradeFacilitate (Ireland)

15. What are the choices? Location Business model Choices Ownership
On Premises
Location
Off Premises
Heterogeneous
Infrastructure
Homogeneous
Business model
CapEx
OpEx
Own
Ownership
Lease/Rent
Self
Management
Third Party
Fundamentals
Application Programming
Scale Out
Automated Service Management
High Availability
Multi-Tenancy

16. “Side” benefit: robust application architecture (examples only)
Application Development
Externalized Authentication / Authorization
Loosely-Coupled Components
Operations-Friendly (Instrumented, etc)
Infrastructure
Automation everywhere
Scale-Unit based Deployment
Auto-Scaling (proactive, on-demand, event driven)
Management
“Virtual” Administration
Continuous deployment / “no” upgrade deployment
Separation of
Deployment and
configuration

17. Side benefit: “standardization”
Defined layers and interaction:
IaaS
PaaS
SaaS
Transparency around resources and pricing
VM’s cost
Storage costs
etc
Standardized IT capabilities & “workloads:
Unified communication
Collaboration
CRM
etc

18. ‘Side’ benefit: Security, Privacy and Compliance standardization
Microsoft Cloud environments:
SAS 70 Type II attested data centers and services
ISO certified data centers
ISO certified services, FISMA DCs and services, etc
Public initiatives:
Digital Due Process (Google, Microsoft, et al)
Global Network Initiative (GNI)
others

19. “Side” benefit: Modular DC technology
Capacity
Density and Deployment
Time to Market
Lower TCO
Scalable Datacenter
Scalability and Sustainability
Servers
Rack
ITPAC
Containers

20. Pre-assembled containers (PAC) Pre-manufactured buildings (PMB)
Generation 4: Key Characteristics
Pre-assembled containers (PAC)
Pre-manufactured buildings (PMB)
Modular
Scalable
Plug-and-play infrastructure
Factory pre-assembled PACs & PMBs
Rapid deployment
Demountable
"Fail Small“
Reduce TTM
Reduced construction
Sustainable measures
Class A
Class C
Class S

21. 4/17/ :11 AM
© 2010 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.
© 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.