1. Bart Vande Ghinste Enterprise Architect Developer & Platform Group bartvagh@microsoft.com

2. 1970s 1980s 1990s 2000s 2010+

3. Cloud Computing according to Analysts

4. Cloud Computing Proliferation The industry is going through a significant transformation across the entire stack: Datacenter and Hardware Model: Significant advances and standardization in the Datacenter and associated IT equipment/hardware. Application Model: Cloud computing provides the ability to quickly deliver highly-available, secure and infinitely geo-scalable applications and services while offering a rich end-user experience from anywhere and any device. Operational Model: Cloud services have inherent resilience to hardware or software failures due to redundant/self-healing service models combined with deep integration between ops & development/test providing a lights out experience.

5. Data Center Commodity: Companies including Microsoft created large clouds: Microsoft Data Centers Highly Reliable and Available Fully automated, zero manual impact Spread Geographically across the world 1.8 Billion Hotmail Accounts Hosted BPOS & Azure environment Internal IT Environment Cost CIO’S Top Challenges: 40% CIOs plan to cut IT budgets 72% CIOs have cut or plan to cut discretionary IT projects 59% of surveyed CIOs view datacenter efficiency as “must do” projects

8. TIME IT CAPACITY Actual Load Allocated IT-capacities “Waste“ of capacities “Under-supply“ of capacities Fixed cost of IT-capacities Load Forecast Barrier for innovations

10. Actual Load Allocated IT capacities Reduction of initial investments Reduction of “over-supply“ No “under-supply“ Possible reduction of IT-capacities in case of reduced load Time IT CAPACITY Load Forecast

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

12. Private (On-Premise) Private (On-Premise) Storage Server HW Networking Servers Databases Virtualization Runtimes Applications Security & Integration You manage Infrastructure (as a Service) Infrastructure (as a Service) Storage Server HW Networking Servers Databases Virtualization Runtimes Applications Security & Integration Managed by vendor You manage Platform (as a Service) Platform (as a Service) Storage Server HW Networking Servers Databases Virtualization Runtimes Applications Security & Integration Managed by vendor You manage Software (as a Service) Software (as a Service) Storage Server HW Networking Servers Databases Virtualization Runtimes Applications Security & Integration Managed by vendor

13. Scale Out Automated Service Management High Availability Multi- Tenancy Off PremisesOn Premises HomogeneousHeterogeneous CapExOpEx OwnLease/Rent SelfThird Party

14. Challenge people to look at the cloud more broadly Multidimensional transformation Some companies provide some interesting components Microsoft is uniquely delivering on a wide range of cloud capabilities that bringing more value to customers. Five dimensions that define the way people use and realize value in the cloud: The cloud creates opportunities and responsibilities The cloud learns and helps you learn, decide and take action The cloud enhances your social and professional interactions The cloud wants smarter devices The cloud drives server advances that drive the cloud This view fuels Microsoft’s investments across the entire company, from datacenters to cloud platform technologies to cloud-based development tools and applications.

16. Standardization: Homogeneous infrastructures with vertical integration across server, network, storage and OS. Service Focused: It’s all about delivering the application or service that the business demands and not the component services (e.g. infrastructure). Automation: Significant levels of automation, based on cloud principled philosophies like resiliency, scalability and elasticity. “Lights out” Operations: Scale through the app design and abstraction from infrastructure. Utilization based chargeback

17. BasicBasic Uncoordinated, manual infrastructure RationalizedRationalized Managed and consolidated IT infrastructure with maximum automation DynamicDynamic Fully automated management, dynamic resource usage, business linked SLAs StandardizedStandardized Managed IT infrastructure with limited automation Cost CenterBusiness Enabler Strategic Asset More Efficient Cost Center Dynamic IT Cloud = Dynamic Data Center Elastic Scalable Available Multi-Tenant Automated Service Management

18. Private On Site Partner Hosted Software as a Service (SaaS) Infrastructure as a Service (IaaS) Platform as a Service (PaaS) Microsoft Hosted Microsoft Online Services Live

19. Quincy, WAChicago, ILSan Antonio, TXDublin, IrelandGeneration 4 DCs

21. Enterprise class software delivered via subscription services hosted by Microsoft and sold with partners Business Productivity Online Suite

22. ComputeStorageManagement Relational dataService BusAccess control AppFabric

23. Vision: Deliver a toolkit that allows hosters & enterprises to dynamically pool, allocate and manage resources to enable IT Infrastructure as a Service

24. Connectivity

27. Back up on-premise data Fail over to hosted servers

28. Quickly and easily build, deploy, scale, and manage applications and Web services using Windows Azure, SQL Azure, and.NET Services. Avoid large capital expenditures in infrastructure when delivering Software-as-a- Services offerings to customers either hosted at Microsoft or third party. Benefits for ISVs Be more agile by quickly scaling up and down as business needs dictate. Augment existing on-premises applications to generate recurring revenue.

29. Benefits for SIs, VARs and Custom Software Developers Simplify Management Leverage the efficiency of Microsoft Cloud Continuum to connect and manage infrastructure required for your projects. Eliminate cost and complexity for customers and focus on their core business. Web 2.0 Scale and Interoperability Quickly and easily create, deploy, manage, and distribute Web applications and services. Build new applications quickly burden on customers’ IT. Create Repeatable Solutions Build solutions for customers who use the Windows Azure Platform to simplify the infrastructure requirements for their projects. Test or staging environments can be set up quickly, with lower cost. Virtualize existing custom applications easily.

30. Benefits for Hosting Partners Offer tools and solutions for development and aggregate customer offerings. Expand geographically by offering hosting solutions via Microsoft in markets where you do not have infrastructure. Provide tools, management, and aggregation of applications to build your own cloud infrastructure Support developers in deploying and managing applications deployed. Integrate your tools and control panel so you can market to developers looking for an elastic cloud solution. Provide customer assurance for redundancy and increased capacity. Quickly add new services for your customers without having to consider data center expansion.

31. Faster On Demand Value to Market Quickly on demand provisioning of campaigns and other solutions. Low Complexity & Low Price Dedicated hosting environment with shared hosting capabilities providing isolation, redundancy for shared hosting pricing standards. Partner Through Billing Providing simplified and transparent if required, billing infrastructure towards your customers Geo Locations across the Globe Providing choice of multiple geographic deployment options across the world optimized with CDN and other caching possibilities. Benefits for Web and Event Agencies Avoid Infrastructure Investments Providing more room for other investments strengthen your position into the market. Simplify Management of Platform Foundations Let the cloud vendor take care of the platform relieving resources within your organization. High Availability and Scalability Assuring delivery even in peak times of your campaign by well defined strong SLA’s.

32. Bridge the public & private cloud gap: Ensure applications can run consistently across server and cloud Provide the same development tools/ technologies for cloud & on-premises environments Providing unified management for apps/workloads across on premises and cloud environments Enable workload federation to enable hybrid cloud models All the above principles will remain true whether it’s your assets or if you’re working with a service provider or deploying to Microsoft’s datacenters.