Windows Azure

Steve Loethen

Generational Shift

Centralized compute & storage, thin clients

Technology Economic Business

Optimized for efficiency due to high

cost

High upfront costs for hardware and

software

PCs and servers for distributed compute,

storage, etc.

Optimized for agility due to low

cost

Perpetual license for OS and application

software

Large DCs, commodity HW, scale-out, devices

Order of magnitude better efficiency and

agility

Pay as you go, and only for what you

use

Supply Side Economies of Scale

Cost of electricity

Cost of labor

Cost of hardware

Company LocationDC Cost

($M)DC Size*

(MW)

NSA (July ‘09)Camp Williams, UT

$2,000 130

Apple (May ‘09) Maiden, NC $1,000 65

Social Security Admin (Feb ‘09)

Baltimore, MD $400 27

Facebook (Feb ‘10) Princeville, OR $215 15

Internet Villages (July ‘09)

Annandale, Scotland

$1,600 107

Lockerbie Data Centers (Dec ‘09)

Lockerbie, Scotland

$1,500 100

Next Generation Data (Mar ‘10)

Wales, UK $301 20

DATA CENTER PROJECTS (LAST 12 MO.)

Source: Company press releases* Estimates based on $15M/MW build out cost

12:0

0 AM

1:15

AM

2:30

AM

3:45

AM

5:00

AM

6:15

AM

7:30

AM

8:45

AM

10:0

0 AM

11:1

5 AM

12:3

0 PM

1:45

PM

3:00

PM

4:15

PM

5:30

PM

6:45

PM

8:00

PM

9:15

PM

10:3

0 PM

11:4

5 PM

15%

17%

19%

21%

23%

25%

27%

29%

31%

CP

U U

tilizati

on

%

Demand Side Economies of ScaleImproving resource utilization

12:00 AM 1:27 AM 2:54 AM 4:21 AM 5:48 AM 7:15 AM 8:42 AM 10:09 AM11:36 AM 1:03 PM 2:30 PM 3:57 PM 5:24 PM 6:51 PM 8:18 PM 9:45 PM 11:12 PM

Japan Great Britain

BING SEARCHES – Japan VS. Great Britain

Source: Microsoft

Demand Side Economies of ScaleTime of Day

Qu

ery

Volu

me

• turbotax.com • taxcut.com

• hrblock.com • taxact.com

Source: Alexa

~4x normal load(Holiday shopping)

~10x normal load(Tax season)

• target.com • walmart.com

• toysrus.com • barnesandnoble.com

Jan 2009 Jan 2010 Jan 2009 Jan 2010

Source: Alexa

Demand Side Economies of ScaleIndustry Variability

Ch

oic

es

Ch

oic

es

How We View the CloudFu

nd

am

en

tals

Fu

nd

am

en

tals

Application Programming

Scale OutAutomated

ServiceManagement

High Availability Multi-Tenancy

Off PremisesOn Premises Location

Infrastructure

Business model

Ownership

Management

HomogeneousHeterogeneous

CapEx OpEx

Own Lease/Rent

Self Third Party

Common Management Tools

Common Identity

Common Dev Tools

PartnerMicrosoft

Customer

Microsoft’s Cloud Approach

Cloud Options

Private Cloud Preference

Pu

blic C

lou

d E

con

om

ics

HPC/Batch

File Servers

Web

Packaged Biz Apps

Communication &

Collaboration

Dev/Test

Custom Biz Apps

Source: Microsoft

Midsize Company Example

Commercial Cloud Services

BUSINESS APPSCOLLABORATION STORAGE PLATFORMMANAGEMENTPRODUCTIVITY COMMUNICATIONS

DEEP INVESTMENTS IN INFRASTRUCTUREOver $2B invested in cloud infrastructureGeo-replicated customer dataPublic and private cloud flexibility30,000 engineers working on cloud services

COMMITMENT TO SERVICES EXCELLENCE

Financially-backed uptime guaranteesSAS 70 and ISO 27001 compliantCarbon footprint innovationRapid innovation model

The Windows Azure PlatformThe Windows Azure Platform

AppFabric

Compute Storage Management Relational data Management Connectivity Access control

AppFabric

CDN

Developer ExperienceUse existing skills and tools.

Fabric ControllerFabric

StorageCompute

Windows Azure Architecture Details

Automated load balancing and compute resource scaling

Security and Control Features include storage encryption, access authentication, and over-the-wire encryption using HTTPS. Industry certification is part of the Windows Azure roadmap

Geographically distributed, state-of-the-art data centers host your applications and data, internet-accessible from everywhere you choose to allow

Compute provides application scalability. Developers can build a combination of web and worker roles. Those roles can be replicated as needed to scale the applications and computational processing power

Storage Services allow customers to scale to store large amounts of data – in any format – for any length of time, only paying for what they use or store

Content Distribution Network Enabling customers to deliver content from nodes closest to end users.

Usage

Com

pu

te

Time

Average

Inactivity

Period

“On and Off “

On and off workloads (e.g. batch job)Over provisioned capacity is wasted Time to market can be cumbersome

Com

pu

te

Time

“Unpredictable Bursting“

Average Usage

Unexpected/unplanned peak in demand Sudden spike impacts performance Can’t over provision for extreme cases

Average Usage

Com

pu

te

Time

“Growing Fast“

Successful services needs to grow/scale Keeping up w/growth is big IT challenge Complex lead time for deployment

Com

pu

te

Time

Average Usage

“Predictable Bursting“

Services with micro seasonality trends Peaks due to periodic increased demandIT complexity and wasted capacity

Workload Patterns Optimal for Cloud

Windows Azure Platform Purchasing Models

“Pay as you go and grow”

Low barrier to entry and flexibilityOptimized for cloud elasticity

Available Now

Consumption

“Value for a commitment“

Discounts for commitmentPlans for payment predictability

Subscription

Available Now

“Coordinated purchasing”

Centralized purchasing experience Introduction to volume discounts

Planned for Future

Additional Licensing

Promotional Offers Partner

Discount Development Pricing Integration with

Programs

Elastic, scalable, secure, and highly available

automated service platform

Pay as you go and grow for only what you use when you use it

Highly available, scalable, and self managed

distributed database service

Compute

$0.12/hour+ Variable Instance

Sizes

Per service hour

Web EditionPer database/month

$9.99/month(up to 1 GB DB/month)

Business Edition

$99.99/month(up to 10 GB DB/month)

Per database/month

Storage Per GB stored and

transactions$0.15 GB/month

$0.01/10k transactions

Windows Azure Platform Consumption Prices

Windows Azure platform AppFabric Service Bus and Access ControlScalable, automated, highly available services for secure connectivity

Content Delivery Network

$0.15 per GB for data transfers

from European & North American locations

$0.20 per GB for data transfers

from other locations$0.01 per 10,000

transactions

Prices shown in USD only

Access Control

$1.99/per 100,000 transactionsPer Message Operation

$3.99/per connection

Per Message Operation

Service Bus

International prices are available

All running roles will be continuously monitoredIf role is not running, we will detect and initiate corrective state

>99.9%

Instance monitoring

and restart

Database is connected to the internet gateway All databases will be continuously monitored

>99.9%

Database

availability

>99.9%

Service bus and access control endpoints will have external connectivityMessage operation requests processed successfully

Service bus and access control

availability

Your service is connected and reachable via web. Internet facing roles will have external connectivity

>99.95%

Compute

connectivity

Monthly Service Level Agreement

>99.9%

Storage service will be available/reachable (connectivity)Your storage requests will be processed successfullyContent Delivery Network (CDN) enhances end user performance and reliability

Storage

availability

“We’re using Windows Azure to meet the evolving needs of our clients. And with the … reduced levels of new investment required, we can consider solutions that might otherwise not have been possible.”

Rob Fraser, Head of Cloud Computing, RiskMetrics

Complements Windows Server with Windows Azure to support “bursts”Elastic infrastructureFamiliar development, operating environment

Case Study: RiskMetrics Group

“This has been one of the best IT partner projects CCE has experienced, and we have the added value of a longer IT roadmap with Microsoft than if CCE had built the solution on premises.”

Kevin Flowers, Director of Enabling Technologies, CCE

Required a centralized platform for internal promotion of company initiativesAnd needed a way to replace a phone ordering system with a hosted Web applicationUses both Microsoft Online and Windows Azure

Case Study: Coca Cola Enterprises Inc.

“Our first estimates show that we can reduce our TCO by a factor of 10. The software distribution system we built with Windows Azure is 10 times cheaper than our previous solution.”

Elmar Stoecker, Director Portfolio Management, Siemens IT Solutions and Services

Increased flexibility: high scalability and enhanced customer servicesReduced operating costsUsed Windows Azure to deliver software packages from a central Internet-based storage location to thousands of devices

Case Study: Siemens

Windows Azure platform Roadmap

Unified Programming Platform and Tools

• .NET 4 & Visual Studio 2010• ASP.NET, ASP.NET MVC, .NET 3.5• Unmanaged Code, Java, & PHP• Visual Studio 2008, Eclipse Support

• Improved compatibility between on-premise applications and Windows Azure applications via support for VMs and other methods

Simplified Management

• Improved management APIs• Automated service management

• Improved interoperability with System Center and APIs for integration with mainstream management tools like OpenView and Tivoli

Flexible and Trustworthy Storage

Windows Azure Storage• Non-relational table storage• Blogs, Queues, DrivesSQL Azure• SQL Azure databases, up to 10GB

Windows Azure Storage• Automatic data geo-replicationSQL Azure• Larger database sizes for SQL Azure• On premise and cloud data sync

Efficient Networking

• Communicate between cloud and on premise with Windows Azure platform AppFabric

• Improvements in flexibility and responsiveness

Global Platform• 6 Data Centers in US, EMEA, APAC Data

Centers• 18 CDN Nodes

• Additional locations and CDN nodes• Global Traffic Management Capabilities

Compliance • Various standards under investigation• Important new security and compliance

certifications

Adaptable Pricing Models

• Consumption and Commitment pricing • Integration with MS Volume Licensing

Present Future

Adoption Momentum

Customer Partners Service ProvidersWith the flexibility of Windows Azure, we can focus on building and delivering new features to our customers—helping us increase our competitive advantage.”

What used to take two months to set up can now be done in only one week and we can use those precious IT resources to focus on more strategic tasks, such as developing new services.”

– Andy Lapin,Director of Enterprise Architecture

– Michael Hart

System Architect and Developer Lead

© 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.