SVC54
Windows Azure Platform Business Model
“Transforming to a services business“
Dianne O’Brien Sr. Director Business Strategy Microsoft Corporation
The “New” RealityPost economic reset, alignment with business more important
than ever
Balance & shift cost
out of operations
ControlCosts
MoreInnovation
Capture & create new opportunity
Get more out of your people
Increase Productivity
Transforming to a “Services” business
Business Case
PurchasingModels
Service Management
Increase agility, faster ROI, & better TCO
Lower barrier & flexible payment models
Reduce complexity & cost of service management
Technical Business
Understanding both implications
Learning from our customers & partners
eduify | write faster
Workload Patterns Optimal For Cloud
Usage
Com
pu
te
Time
Average
Inactivity
Period
“On and Off “
On & 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
Real World TCO Analysis (TCO estimate over 3-year period)
Lower TCO from dynamic scaling & automated service
management
Persistent Systems
Public sector governance suite of applications & services
Needs secure, scalable, elastic, & comprehensive platform
On Premises Azure
$62K$74K
Alinean Inc.
Leading provider of B2B sales & marketing solutions to F100
Reduce IT complexity & shift resources to core businesses
Lower TCO from efficient utilization of resources & service
management
On Premises Azure
$277K$540K
49% 16%
TCO Analyzer Tool
http://www.microsoft.com/windowsazure/tco/
TCO tool available today
Quickly determine “quantitative” value of using Windows Azure Platform services
TCO of development and running Windows Azure Platform vs. traditional delivery channels
Estimation “of” and conversion “to” on-premise solution to Windows Azure Platform services
Profile Your Application
Review Preliminary Results
Refine Key Assumptions
Final TCO Comparison
Windows Azure Platform Purchasing Models
“Pay as you go and grow”
Low barrier to entry & flexibility
Optimized for cloud elasticity
Available Jan 2010
Consumption
“Value for a commitment“
Discounts for commitment
Plans for payment predictability
Subscription
Select offers available Jan 2010
“Coordinated purchasing”
Centralized purchasing experience
Introduction to volume discounts
Planned for post PDC
Additional Licensing
Promotional
Offers Partner Discount
Development Pricing
Integration withPrograms
Windows Azure Platform Consumption Prices
Elastic, scalable, secure, & highly available automated service platform
Pay as you go and grow for only what you use when you use it
Compute
$0.12/hour
+ Variable Instance Sizes
Per service hour
Highly available, scalable, and self managed distributed database
service
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 &
transactions$0.15 GB/month
$0.01/10K transactions
Prices shown in USD only
Windows Azure platform AppFabric Service Bus & Access ControlScalable, automated, highly available services for secure connectivity
Access Control
$0.015/10k Message Operations
Per Message Operation $0.015/10k Message
Operations
Per Message Operation
Service Bus
International prices are available
Windows Azure Instance Sizes
Unit of Compute Defined
Small
$0.12
Per service hour
Medium
$0.24
Per service hour
Large
$0.48
Per service hour
X Large
$0.96
Per service hour
Variable instance sizes to handle complex workloads of any size
Small
1 x 1.6Ghz (moderate IO)
Medium
2 x 1.6Ghz (high IO)
Large
4 x 1.6Ghz (high IO)
X-Large
8 x 1.6Ghz(high IO)
Equivalent compute capacity of a 1.6Ghz processor (on 64bit platform)
1.75 GB memory 3.5 GB memory 7.0 GB memory 14 GB memory
250 GB storage(instance storage)
500 GB storage(instance storage)
1000 GB storage(instance storage)
2000 GB (instance storage)
North America Region
S. Central - US Sub-region
N. Central – US Sub-region
Europe Region
W. Europe Sub-region
S.E. AsiaSub-region
Asia Pacific Region
E. AsiaSub-region
$0.10 GB Ingress
$0.15 GB Egress
$0.10 GB Ingress
$0.15 GB Egress
$0.30 GB Ingress
$0.45 GB Egress
N. Europe Sub-region
Windows Azure Platform Data Transfer Priced per GB transferred/month (prices shown in USD)
No Charge For Off Peak Ingress Promotion (ends 6/30/10)
On-board to Windows Azure platform at no charge Off peak times defined as: 10pm-6am Mon-Fri & from 10pm-Fri to 6am-
Mon for weekends in each designated regional time zones below
North America PST = UTC-8
Europe WET = UTC
Asia PacificSST = UTC+8
Introductory Special
Anyone can try the platform at no charge
(monthly service allocations)
Biz SparkOne
Investing in high potential start-ups; receive full platform
services at no charge
MSDN Premium
Subscribers receive monthly allocation of
platform services at no additional charge
Promotional Offers & Programs
Development Accelerator
1. Accelerate cloud development projects
2. Flexible consumption (flex # of instances)
3. Predictable payments (6 mo subscription)
4. Exceptional value (discounted price)
Core
Includes Windows Azure compute, storage, storage
transactions, data transfer, & message
operations
Extended
Includes Core plus SQL Azure Business Edition
Introductory Special
Windows AzureCompute 25 HrsStorage 0.5 GB
Storage X-actions 10K
SQL Azure1 Web Edition DB
(1GB DB for 90 day trial)
Message Operations Messages 100K
Data transfer0.5 GB In & 0.5GB Out
Biz Spark OneOffer MSDN
Premium
Windows AzureCompute 750 hrs
Storage 10 GBStorage X-actions 1M
SQL Azure 3 Web Edition DB
(1 GB)
Message Operations Messages 1 Million
Data transfer 7GB In & 14GB Out N.A/EU
2.5GB In / 5GB Out Asia Pacific
Promotional Offers & Programs
Available to all partners & customersLimit of one per customer Promotion ends 6/30/10
Overage charged at Consumption rates
Amount of Windows Azure Platform services will vary
by customer
MSDN Premium subscribersLimit of one per MSDN subscription
8 month term Limited time offer thru 7/31/10
Overage at partner Consumption rates
Available for selected startups
Program participation is by invitation only
Program available in 10 countries
Amount of Windows Azure platform services included per month at no charge
Additional 5% off for partners(except storage & data transfers)
Development Accelerator Offer
CORE
Windows Azure
Compute 750 hrs
Storage 10 GB
Storage X-actions 1M
EXTENDED
Includes CORE plus
SQL Azure Business Edition (10 GB)
6 month subscription offered at 42%-46% off consumption prices Offered as a monthly “unit” (you can order multiple “units”)
Overage charged at Consumption ratesPromotional offer, expires 6/30/2010 for new subscriptions
Monthly price
$59.95 (42% off consumption prices)
Monthly price
$109.95 (46% off consumption prices)
Data transfer 7GB In/14GB Out N.A & EU
2.5GB In/5GB Out Asia Pacific
Message Operations Messages 1 M
Additional 5% off for partners(except storage & data transfers)
The Value of Service Management
Price for Service Management is Zero $ Service lifecycle management is always included in the low base price!
Reduce infrastructure and operational costs Lower TCO
Reduce IT
Complexity Shift valuable resources to focus on high value
areas
Automated
Management
Automated service management means automatic
upgrades & no more patches
Platform as a service provided at global scale with a dependable service level agreement
Comprehensive
SLA
Monthly Service Level Agreement
Your service is connected & reachable via web
Internet facing roles will have external connectivity
All runningroles will be continuously monitored
If role is unhealthy we will detect & initiate corrective state
Database is connected to the internet gateway
All databases will be continuously monitored
>99.95%
>99.9%>99.9% >99.9%>99.9%
Storage service will be available/ reachable (connectivity)
Your storage requests willbe processed successfully
Service bus & access control endpoints will have external connectivity
Message operation requests processed successfully
Instance
monitoring & restart
Storage availability
Database availability
Service bus & Access control
availability
Computeconnectivity
Support For Customers & Partners
Online Self Help Assisted Support
Windows Azure Platform Portal(http://azure.com)
Customer Care (no charge 24/7 phone access)
Developer Support (paid developer support)
Service Dashboard(available to all users)
Microsoft Developer Network (MSDN) & Microsoft Partner Network (MPN) Benefits
Premier Windows Azure Platform (now fully integrated)
Managed forums w/ response SLA, incident support, advanced technical guidance, & training
Public Forums(available to all users)
12. Netherlands
13. New Zealand
14. Norway
15. Portugal
16. Singapore
17. Spain
18. Sweden
19. Switzerland
20. UK
21. United States
1. Austria
2. Belgium
3. Canada
4. Denmark
5. Finland
6. France
7. Germany
8. Ireland
9. India
10. Italy
11. Japan
22. Australia
23. Brazil
24. Chile
25. Colombia
26. Costa Rica
27. Cyprus
28. Czech Republic
29. Greece
30. Hong Kong
31. Hungary
32. Israel
33. Luxemburg
34. Malaysia
35. Mexico
36. Peru
37. Philippines
38. Poland
39. Puerto Rico
40. Romania
41. Trinidad & Tobago
Available in 21 countries Jan 2010
Available in 41 countries Q2 2010
Windows Azure Platform availability in worldwide geographies
International Roadmap
Available in 11 currencies Jan 2010
Available in 12 currencies Q2 2010
Windows Azure Platform purchasing availability in worldwide currencies
International Pricing
11. Australian Dollar (AUD) / FX Rate 1.25
1. US Dollar (USD)
2. Canadian Dollar (CAD) / FX Rate 1.11
3. British Pound (GBP) / FX Rate 0.6061
4. Danish Krone (DKK) / FX Rate 5.46
6. EURO (EUR) / FX Rate 0.7092
7. Norwegian Kroner (NOK) / FX Rate 6.15
8. Swedish Krona (SEK) / FX Rate 7.5
9. Swiss Franc (CHF) / FX Rate 1.1
10. Japanese Yen (JPY) / FX Rate 98
11. New Zealand Dollar (NZD) / FX Rate 1.563
Billing localized in 5 languages Jan 2010
(English, French, German, Japanese, & Spanish)
International prices determined by using USD prices and applying FX rates
Business roadmap, looking ahead....
Additional purchasing options coming in 2010 Centralized purchasing, procurement, & billing for all Microsoft products &
services
Durable storage volumes attachable directly to compute
instances
Windows Azure Drive
(available in Feb)
18 edge locations in 12 countries for low latency
& global presence
CDN
(available today)
Information service built on SQL &
Windows Azure (BI & analytics)
Codename “Dallas”
(available today)
Additional SQL Azure databases sizes >10GB
available in 2010
SQL Azure >10GB (available H1 2010)
Principles driven business model as we bring new services on
New Services Available (pricing coming soon…)
Flexible, simple, and value based pricing and licensing
Some Final Thoughts….
Consumption vs. Subscription and service predictability
Purchasing
Models
CPU
UtilizationCPU cost is allocated when the instance is deployed
Programs & Promotions
Take advantage of existing programs and promotions(e.g. MSDN, dev accelerator, introductory, data transfer
promo)
Leverage the TCO tool and additional resources to help build your business case
TCO Tool
YOUR FEEDBACK IS IMPORTANT TO US!
Please fill out session evaluation
forms online atMicrosoftPDC.com
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© 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.
Premier Support for the Windows Azure Platform
Additional info - http://www.microsoft.com/premier
One end to end support package for all Microsoft Products & Services
Designated Support Account Manager: provides single point of contact for support & IT planning needs
Problem Resolution Support: shorter response times & priority escalation paths
Service Delivery Planning: ongoing planning & execution cycle continuously improving IT operations & maturity.
Access to specialized Azure Prevention & Resolution resources who deliver Developer Support, Support Assistance, Information Services, & Workshops
Developer Benefits:
Dynamic marketplace for
buyers and sellers of Microsoft-based
technologies
Connect with customers who
need their software applications and
professional services
Largest directory of qualified IT
providers and widest customer
audience
Links to your demo, trial & purchase
pages
Extending Microsoft’s
commerce platform to developers in
2010
www.MicrosoftPinpoint.com/GetListed
Microsoft PinpointThe easy way to deliver your applications and professional
services
Pinpoint lists available
applications built on all Microsoft
platforms
Showcase and Sell Your Software and Services
Attract and Engage More Customers
Get Lead Notifications and Customer Insights
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