April 20112 Microsoft Confidential—Partner Use Only / Singapore

Cloud Computing Introduction

David ChandraDirector, Public Sector Cloud ServicesMicrosoft Asia Pacific

What’s happening today….

Then into networking break, 3 corners and closing.

Question papers for panel session

Time Agenda Item 9.00 – 9.30 Cloud Computing Introduction

9.30 – 10.30 Partner innovation in Public Sector

10.45 – 11.45 Microsoft Cloud?

Learn about Microsoft’s Cloud offerings for SaaS, Paas and IaaS from a public and private cloud perspective.

11.45 – 12.15 Partner Hosted Business to Business Services Provider Licenses Agreement (SPLA) – What is it and what can it mean for my business?

13.15 – 14.15 Panel Session: Competing in the Cloud Panel Discussion; What is the future looking like? Debunking the Myths from an Asian Perspective

Data sovereignty Connectivity and connection speeds Benefits of cloud for education Impact to partner Privacy Security Other considerations

14.15 – 14.45 Question & Answer: What’s Next & How do we move Forward

Pre-Summit Survey Results, cont.

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Singapore

100%5%

50 - 99%35%

1 - 49%45%

None15%

Percentage of Customers Considering Cloud Offerings

0%

5%

0%

30%

65%

Cloud Solutions Projects

More than 100

50 - 100

10 - 50

Fewer than 10

None

A lot of interestA lot of opportunities

Agenda

Cloud computing concepts and definitionsCloud economies of scalePartner opportunities

April 2011 Microsoft Confidential—Partner Use Only / Singapore 5

Providing ICT resources, as a service, in a dynamic and scalable manner over a network.

Fundamental Characteristics

On-demand self-service

Broad network access

Resource pooling

Rapid elasticity

Measured service

A consumer can unilaterally provision computing capabilities as needed without requiring human interaction with each service provider.

Capabilities are available over the network and accessed through standard mechanisms used by heterogeneous thin or thick client platforms.

The provider’s computing resources are pooled to serve multiple consumers (a multi-tenancy model where a single instance of the software runs on a server, serving multiple client organizations [tenants]).

Capabilities can be rapidly and elastically provisioned to quickly scale out and rapidly released to quickly scale in.

Cloud systems automatically control and optimize resource use by leveraging a metering capability at some level appropriate to the type of service (e.g., storage, processing, bandwidth, and active user accounts).

Cloud Computing Defined


According to the National Institute of Standards and Technology (NIST), October, 2009 V15

Evolution of ComputingTechnology Economy Business Model

Mainframe

• Centralized computing and storage with thin clients

• Optimized for efficiency

• High up-front costs

Client Server

• PCs/servers used for distributed computing, storage

• Optimized for agility• Perpetual license• Subscription license

Cloud

• Large datacenters, commoditized hardware, scale-out, devices

• Order of magnitude better efficiency and agility

• Pay as you go, for what you use

April 2011 Microsoft Confidential—Partner Use Only / Singapore

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8

SaaS:Software-as-a-Service

The Cloud Model


On-Premises Model Cloud Model

Application

PaaS: Platform-as-a-Service

IaaS:Infrastructure-as-a-Service

Microsoft Cloud Offerings

SaaS

PaaS

IaaS

• Business Productivity Online Suite• Exchange Online• SharePoint Online• Office Communications Online• Office Live Meeting

• Office 365• Exchange Hosted Services• Dynamics CRM Online• Lync®

• Office Web Apps

Online companions to:• Word• Excel®• PowerPoint®

• OneNote®

• Outlook Live• Live@edu

Registration & Search• Companies• Applications• Professional Services

• Hotmail®• Messenger• Photo Gallery• WL Spaces• SkyDrive®

• Profile• Photos• Mesh (beta)

• Mail• Calendar• Groups• Toolbar• Family Safety• Writer• Movie Maker• LiveID

• Search• Maps

• VXML Platform• Speech Recognition Third-Party Cloud Services

AppFabric Service:• Connectivity• Access Control

Compute Service:• Web Role• Worker Role

Storage Service:• Blobs• Tables• Queues

Fabric Controller:• Agent 1• Agent 2• Agent n

RDBMS Service:• Relational Data• Management

• Virtual NetworkOverlay

Codename “Project Sydney” • User Data APIs

• WL Messenger SDKs• WL SDK• Microsoft Advertising APIs

• Silverlight Streaming SDK

• WL Admin Center SDK• WL Spaces SDK• WL Client Extensibility APIsThird-Party Cloud Services

Data Subscription Service

• Discover, Purchase• Management

Open Source SDK:• Interactive data access• API data access

• ApplicationLifecycleManagement

Dynamic Datacenter Toolkitfor Hosters

Dynamic Infrastructure Toolkitfor System Center (Beta)


9

10

Public Community Private

Available • Available to the general public.

• Shared by several organizations.

• Operated for a single organization.

Managed by

• An organization selling cloud services.

• The organization or a third party.

• The organization or a third party.

Located • Off-premises • On- or off-premises • On- or off-premises

The Cloud Continuum


Cloud Delivery MapPublic Community Private

SaaS

PaaS

IaaS

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**

*

* Available within the next 24 months.

https://datamarket.azure.com/

Cloud Economies of Scale

3. Supply-sideLarger datacenters or a network of datacenters lowers server TCO.

1. Demand-sidePooling demand from a diverse user group improves resource utilization.

2. Multi-tenancyCombining application infrastructure reduces maintenance and labor costs.


1. Demand-Side Economies of Scale

Five key demand-side issues:

Randomness: Customer demand has a degree of randomness.

Time of Day: Customer workloads vary based on time zone.

Agencies: Different agencies see utilization peaks at different times.

Multi-Resource: Compute, storage, and IO are generally bought in bundles, leading to resource underutilization.

Uncertain Growth: Predicting and addressing growth issues is difficult and impacts computing capacity.


Pooling heterogeneous customer demand via the cloud dramatically improves resource utilization.

2. Benefits of Multi-Tenancy

Labor Costs

• Application needs to be managed for each customer.

• Economies of scale are limited to the number of users within an enterprise.

• Only the single instance of the application needs to be managed. Labor can be amortized across all customers.

Resource Costs

• Each customer instance incurs a certain amount of application and operating system overhead.

• Overhead can be amortized across all customers on a per-customer basis.

Single Tenant Multi-Tenant

Client #1

Client #2

Client #3

Instance

#1

Instance

#2

Instance

#3

Client #1

Client #2

Client #3

Multi-Tenant Instance

Multi-tenancy–reduced infrastructure cost and compute resource labor


Server hardware costs are ~45% of total costs. Large-volume purchases of commodity or standardized equipment result in lower prices.

Datacenter operations are ~25% of total costs. Certain fixed real estate costs can be amortized over larger facilities.

Hardware labor costs are ~15% of costs. Large, consolidated datacenters require fewer hardware administrators than smaller disparate facilities.

Power costs are ~15% of costs. Agreements with utilities and choosing a favorable site for the datacenter can greatly reduce electricity costs.

3. Supply-Side Economies of Scale Larger Datacenters or a network of Datacenters lower the TCO/server costs

Source: CSG

Annual TCO/Server Declines with Scale *Main Datacenter Cost Elements

* Estimates taken from a range of external and internal sources. Absolute numbers should not be compared with (widely varying) server COGs front internal Microsoft properties; focus is on the relative comparison between 1,000 and 100,000 servers.


Singapore15

$1,940 $1,373

$1,142

$723

$721

$193

$645

$72

$0

$1,000

$2,000

$3,000

$4,000

$5,000

1k Server DC 100k Server DC

$TCO

/Ser

ver

Server Hardware Facility Hardware Operations (Labor) Power

$4,449

$2,361

Benefits of cloud services

Lower cost structure for obtaining innovative IT.

Less expensive innovative technologies improve margins and enable rapid and efficient

introduction of new services.

The subscription model of obtaining IT services eliminates the need for large capital

investments.

The cumulative economic and technological innovation will increase GDP.


Partner Opportunities by Business Model


Where do you see your core competency in the value chain?

Where do you see the opportunity to grow your business in the next 5 years?

Resell/Recommend

Service

Develop Host

VAR, SI, LAR, AER SI, Telco

ISV, SI Telco, Hoster, SI

Public Community Private

SaaS

PaaS

IaaS

Cloud Delivery Map with Partner Opportunities

Resell/Recommend

Service Resell/Recommend

Service

Develop Host

Resell/Recommend

Service

Develop Host

Resell/Recommend

Service

Develop Host

Resell/Recommend

Service

Develop Host

Develop Develop

Develop

Service ServiceService


Singapore 18

Develop

https://datamarket.azure.com/

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What is the interest of your government?

April 2011

Summary

Microsoft is uniquely positioned as the only technology vendor to provide Cloud Services tailored to Public Sector needs across:

Public CloudCommunity CloudPrivate Cloud

There are a lot of areas where you (as a partner) can participate and “Make money” – focus on your nicheCloud is a deployment option


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© 2011 Microsoft Corporation. All rights reserved. Microsoft, Bing, Excel, Forefront, Hotmail, Hyper-V, Lync, Microsoft Dynamics, OneNote, PowerPoint, SharePoint, SkyDrive, SQL Azure, SQL Server, Tellme, Visual Studio, Windows, Windows Azure, Windows Intune, Windows Live, Windows Server, and Xbox LIVE are trademarks of the Microsoft group of companies.

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.


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April 20112 Microsoft Confidential—Partner Use Only / Singapore