hello i am so and so, title/role and a little background on myself (i.e. former microsoft employee or anything interesting) set context for what going to cover in next xx minutes How we’ll REALLY move to the cloud – the coming alignment between hosters and cloud platform providers Dave Wright

What do customers want? Enterprise Enterprise level: IT capabilites Branch Office Corporate Internet Department Extranet Enterprise level: IT capabilites Agility Risk mgmt Data Center level: Configurability System Integration System Management Datacenter Servers Networking Software Storage Infrastructure level: High performance Low TCO Reliability Easy scalability

Overcoming the Datacenter trade-off Enterprise Branch Office Corporate Internet Department Extranet Capabilities Cost Performance Flexibility Datacenter Servers Networking Software Storage Resources

Overcoming the Datacenter trade-off Enterprise Branch Office Corporate Internet Department Extranet Capabilities What is needed to turn these features into capabilities? Cost Performance Flexibility Pay-as-you-grow Cloud Infrastructure Service Lower Cost Higher Flexibility Resources

Four Problems with Cloud Computing today It only works for certain workloads Predictable, linear scale-out Simple data input / output This is not just a matter of new-ness: there are real limitations to generic scale-out architectures for complex multi-tenant database workloads Services are at a very low level of abstraction CPU, GB of storage, GB of bandwidth “One size fits all” datacenter configurations Generic server configurations Can’t specify detailed network topology Hard to optimize traffic within a distributed system Limited SLAs

Yet, the Value Proposition is Undeniable There are definitely “cloud economies of scale” for certain key IT services Data storage and content delivery (web sites, file & stream services, etc.) Read-only and Read-mostly databases with simple queries Simple data processing (format transformations, basic queueing and routing) Usage based Pricing is attractive to a CIO (and to many ISVs) from a Real Options perspective Low risk Proofs of Concept Infrastructure becomes a Cost of Goods Sold Demand for “Infrastructure as a service” will grow quickly

Has the business problem really changed? Business Capabilities Cost Performance Flexibility All this still has to happen Configurability System Integration System Management Hosted Resources On-Prem Resources Cloud Resources

How CIOs want the picture to look Enterprise Branch Office Corporate Internet Department Extranet IT department owns IT capabilites Agility Risk mgmt IT purchases as a service: Datacenter capacity Datacenter management (provisioning, integration, operations) Data Center A Datacenter Service Provider chooses and integrates the right infrastructure for each workload Dedicated Workloads Cloud Services SaaS ISV apps s e r v i c e b u s

The Hoster Opportunity Enterprise Branch Office Corporate Internet Department Extranet His IT department owns IT capabilites Agility Risk mgmt The Hoster provides Datacenter capacity Datacenter management (provisioning, integration, operations) Hosters Dedicated Workloads Cloud Services SaaS ISV apps s e r v i c e b u s The Hoster integrates Remote cloud capacity Syndicated SaaS apps Dedicated infrastructure

One size does not fit all The segments will still be with us IT Outsourcers Application Hosting Managed Hosting Hosters will mix and match their own combinations of self-hosted, cloud hosted and syndicated capabilities The role of managed hosting will center on dedicated workloads that can’t move to the cloud Hosters will integrate cloud platform capacity into broader SLAs as part of their value prop Integration will become a core hoster competence Service bus, metadata management, federated security, etc.

Why Microsoft is your best cloud partner Integrated cloud and hosted platforms Integrated tools Partner centric Hosters s e r v i c e b u s Cloud Services Dedicated Workloads SaaS ISV apps

Cloud Operating System .NET Services Cloud Operating System Developer Experience Service Hosting Service Management Consistent with on-premises Standard support - REST & SOAP Support for 3rd party languages Coming soon Scalable (elastic) Flexible Secure & Reliable Tracing & logging Upgrade service w/o downtime Real-time monitoring & metering Provides the essential functionality needed to develop, deploy, and manage live cloud services at internet scale Service hosting platform for the cloud. RedDog is Compute, Storage, and Management hosted by Microsoft http://www.azure.com

Services for application integration .NET Services Services for application integration Access Control Workflow Service Bus Support user identities securely across different organizations Model and execute business logic and service interactions Exchange messages between loosely coupled, composite applications Claims-based identity management Interoperable & based on standard protocols (WS-Trust) Manage through web page and/or a services API Supports CardSpace, LiveID, Username/Password Runtime execution environment for XAML-based workflows Enables the orchestration of services Extension of Windows Workflow Foundation XAML-based models can be uploaded to the cloud Simple publish-subscribe eventing Firewall friendly messaging Flexible connection modes Connectivity to on-premises applications to enable hybrid S+S scenarios Extension of Windows Communication Foundation Exposed as programmable web services Open and accessible from multiple platforms Flexibility to mix & match: Can be composed with Windows Azure services Can be used from on-premises applications Enable incremental adoption Consistent Programming Models

Cloud + Hosters = A Complete Solution New World Economy Need secure, unified communications and productivity tools Enterprises Need business tools that make it easy to communicate, collaborate, and trade SMBs Developer Services Hosted Partner Microsoft Sold Microsoft provides the best hosting platform Microsoft will provide the best cloud platform Both will use the same tools and programming environments Microsoft will develop partner-friendly channel models Microsoft will actively promote its partners

Thank you! davwrig@microsoft.com