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Business OverviewWindows Azure Platform
2
Agenda
• What is the Cloud, really?• Factors Driving Adoption• Windows Azure Business Value• Succeeding with SaaS• Partner Perspectives• Next Steps• Open Discussion
3
What is the Cloud?
Software-as-a-Service
Consume
SaaSBuild
Infrastructure-as-a-Service
Host
IaaS PaaSPlatform-as-a-Service
4
The SaaS Opportunity
• SaaS represents the largest and most sustainable growth opportunity
• By 2015, SaaS will see a 42% CAGR
Source: Sizing The Cloud, Forrester, April 2011
2010 2011 2012 2013 2014 2015$0.00
$25.00
$50.00
$75.00
$100.00
Global Public Cloud Market Size Forecast
SaaS
PaaSIaaS
5
Customer Commitment to SaaS
Source: IDC SaaS Adoption Survey, May 2009. n= 347 US-based IT Director and above respondents
According to Forrester’sApril 2011 report,Sizing the Cloud:
• 42% of organizations in the US
• 44% of organizations worldwide are using cloud computing
Fully com-mitted to SaaS 21%
Committed to SaaS23%
Cautiously moving to
SaaS39%
Late adopter to SaaS 15%
SaaS is not currently part of our applica-tions strategy
2%
Level of Commitment to Cloud Application as a Percent of Overall Applications Use
6
Software Will Never be the Same
IDC: Cloud Computing: Partner Guidance, July 2010
of new productsof new companies
of revenue from SaaS subscriptions43
%
90%Growth rate of theIT industry5X
Factors Driving Adoption Today
7
8
ISV Top Of Mind Issues
9
“Waste“ of
capacities
Capacity Management: Non-Cloud
TIME
IT C
APA
CIT
Y
Allocated IT-
capacities
Fixed cost of IT-capacities
Load Forecast
Barrier forinnovations Actual load
“Under-supply“ of capacities
10
Capacity Management: Cloud
Allocated IT capacities
Reduction of “over-supply“
No “under-supply“
Possible reduction of IT-capacities in case
of reduced load
Time
Reduction of initial investments
Allocated capacity
Actual Load
IT C
APA
CIT
YLoad Forecast
11
Windows Azure Is A Great Fit
•
•
•
•
•
•
•
•
12
Low Up-Front Costs for Your Customers
• Server HW• OS/DBMS• Installation/Configuration• On-going administration• Maintenance
Software License Plus…• $2/user/month• No installation• No maintenance• Scale according to need
Software Service Plus…
Windows Azure Business Value
Business Value For ISVs
•
•
•
•
•
•
•
•
•
14
A Comprehensive and Open Platform
15
Worldwide Reach
Seattle, WANewark, NJ
Miami, FL
Chicago, IL
San Antonio, TX
São Paulo, BR
Ashburn, VA
Dublin, IELondon, GB
Amsterdam, NL
Sydney, AU
Hong Kong, HK
Paris, FRZurich, CH Vienna, AT
Singapore, SG
Taipei, TWN
Seoul, KR
Stockholm, SEMoscow, RU
Tokyo, JP
Doha, QABay Area & Los Angeles, CA
16
17
Building Blocks Partner Ecosystem
MonetizeOperationalizeBuild/Configure
Windows Azure Marketplace
Submit Publish Sell
For information about how to publish to Windows Azure Marketplace please visit: https://datamarket.azure.com/publishing/
Public marketplace for applications and datasets
Partners have complete control over terms of use and price
Partners can decide to transact or only list on the marketplace
Customers can purchase app/data on monthly recurring subscription basis
Marketplace provides ability to have access to Trials
Microsoft and Partners will share revenue for all sales at 80/20 model
Succeeding with SaaS
20
Store Data in the Cloud
Move Applications to the Cloud
Create New Cloud ServicesCreate New Solutions by Combining Cloud Services
How will you leverage Windows Azure?
Extend Applications to the Cloud
21
How will you adapt your business strategy?
Your Company
New Offering
Existing CustomersExisting Customers,
Existing Functionality,Delivered in the Cloud
New CustomersNew Market Segment, Existing Functionality,Delivered in the Cloud
Existing CustomersExisting Customers, New Cloud Offering
New CustomersNew Market Segment,
New Cloud Offering
Existing Offering
Thinking Differently For Success
• Churn Rate
• Cash flow
• Lifetime Value of a Customer
• Committed Monthly Revenue
• Pricing SaaS Applications
• Customer Acquisition
• Try before Buy
• Sales Cycle
• Referral Programs
• Delivery rhythm
• Channel Dynamics
• Service Level Agreements
• Support
• Billing
22
Financial Metrics Change
23
Pricing Options Change
Free basic level Premium upgrades
Revenue from advertisers not users
Free App Use with charge on related services / or virtual goods
Discrete transaction units that can be easily measured and tracked
Pricing per unit of measure – such as storage (per MB)
Customers pay for each user/device using the product or service
Customers pay an amount per monthly
A share of revenues generated via the service provided
A large upfront payment for the license
24
25
Buying Behavior Changes
Sales and Support Changes
Pre-SalesCu
sto
mer
Inte
racti
on
Sales
Post-Sales Management
Migration, Customization,
Integration
On-goingSupport
TechnicalSpecialist Activation and
Onboarding
Non-cloud scenario - - - - - - - - Cloud scenario
Sales and Support Changes
Pre-SalesCu
sto
mer
Inte
racti
on
Sales
Post-Sales Management
TechnicalSpecialist
First30-60days
First90
days
Activation andOnboarding
Cloud scenario
Partner Perspectives
Kentico: Grow Your Business
Thomas Robbins
Chief Evangelist
Kentico
“Our customers tell us all the
time that moving to the cloud
makes them more productive,
and it helps them get sites up
faster and at a lower cost,
which helps them gain a
competitive advantage and
they can do all this without a
big hardware investment ..”
Kentico is a 67 employee company based in the Czech Republic, with offices in the United States and United Kingdom, founded in 2004. It develops content management software(CMS) for customers like McDonald‘s, Vodafone, Samsung and Subaru and per Deloitte was the fastest-growing tech company in the Czech Republic in 2010.
Kentico wanted to expand its business to the cloud with an online version of its Kentico CMS for ASP.NET software, while enabling new features and helping customers save money on infrastructure.
Kentico updated Kentico CMS to work with both on-premises installations and cloud deployments based on the Windows Azure platform..
• Flexibility and cost savings for customers : Customers who move from a virtualized on-premises solution to a cloud platform can expect to save nearly 70 percent over three years.
• Development agility and a new business model• Increased partner opportunities
Thomas Robbins
Chief Evangelist, Kentico
31
aZaaS: Scale Cost Effectively
“Scalability was previously a
bottleneck for us. Now, when
customers need to add users to
the application, it just takes a
few simple configuration
changes. With SQL Azure, we
know our application is going to
work no matter how many
users are added.”
Choon Ngee Tan
Regional Director, aZaaS
Based in Singapore, aZaaS, is SaaS start-up that has more than 40 employees who work in China, Hong Kong SAR, Taiwan, and Singapore. aZaaS develops LOB software and in 2009 won the Startup of the Year award from Microsoft.
Because its customers frequently requested customizations, aZaaS decided to build a cloud-based solution that featured modules that could be easily adapted by users to meet different needs.
The company built the aZaaS Cloud Application Engine using Microsoft SQL Azure and Windows Azure. The solution provides users with tools to customize functionality without coding.
• Increased scalability: Since releasing its first beta in March 2010, the company has deployed the aZaaS Cloud Application Engine to 70 customers.
• Speeded deployment: The deployment process is nine times faster than it is with an on-premises model.
• Reduced customer costs: Customers reduce capital and operational costs by as much as 80 percent.
32
33
SOFTENG: Innovate Quickly
Carlos Colell,
Chief Executive Officer,
SOFTENG
SOFTENG is a Microsoft Gold Certified Partner known for innovative technologies since 1997. The company focuses on serving customers in three areas: web applications design and development, software integration and development, and systems and network engineering. Based in Spain, it has 30 employees. Operates in the software engineering industry
SOFTENG wanted to reduce the cost of developing applications and delivering IT support for its customers.
Softeng Portal Builder, manages web development tasks, incorporates business processes, and analyzes user behavior.
• Reduced time-to-market –12 weeks to make solution compatible with Windows Azure• Decreased costs - Over the next three years, IT expects to save an estimated $61,770, a
savings of 7.1 percent• Increased scalability
“By using Windows Azure, we
avoid investing heavily and
constantly in hardware,
software, and support personnel
to maintain a classic data
center. We’ve considerably
reduced costs.”
34
Holtl: Grow Your Business
“By basing our POSFlow
software on Windows Azure
and Silverlight, customers
can implement this key retail
solution quickly and by
themselves. It’s now easy to
use and financially viable
even for the smallest
retailer.”
Johannes Schick,
Chief Executive Officer,
höltl Retail Solutions
höltl Retail Solutions offers innovative products for optimizing retail processes for the clothing and nonfood industries. Headquartered in Bad Hersfeld, Germany, the company has 85 employees.. Operates in the Consumer Goods Manufacturing and Retail Industry
When customers upgraded or installed a new höltl POSFlow point-of-sale system, the company’s technicians had to travel onsite to configure it, which increased costs and wasted customers’ time.
The company moved POSFlow to Windows Azure and designed the interface using Microsoft Silverlight 3 so that customers could set up the solution themselves in just minutes.
• Reached new customers – Small Businesses• Fast deployment – from four hours to four minutes in setup time• Reduced costs
35
SharpCloud: Innovate Quickly
“Amazon requires a much
higher degree of
maintenance from its
customers—we had to update
servers and maintain the
environment, and any time
we spent doing that was time
we weren’t spending on the
development of our service.”
Sarim Khan
Chief Executive Officer and
Co-Founder, Sharpcloud
Based in Guildford, England, sharpcloud provides a software-as-a-service solution that enables executives to plan strategy road maps with the ease and interactivity of social-networking sites. The high-tech and manufacturing company has 50 employees.
For its service to be successful, sharpcloud needed to offer scalability to support major corporate users anywhere in the world - requiring a network of data centers far beyond its means.
sharpcloud developed and hosts its service on the Windows Azure Platform, which helps manage the worldwide infrastructure so that sharpcloud can focus exclusively on enhancing its application service.
• Reduces Time-to-Market, Cost of Development - boosted productivity 300%, saved $500,000 USD
• Enhances credibility with Major Corporations – “There’s a high degree of comfort with Microsoft in the corporate environment, and that comfort extends even to startups, like sharpcloud, that rely on Microsoft for cloud computing.”
• Scalability
36
Sitecore: Grow Your Business
“Previously, (deployment)
could have taken months, or
even years. Before we had
Windows Azure, we were
seeing some projects take
more than two years to
develop, and were still far
from completion,”
Mikkel Hoy Sorensen
Solution Architect, Sitecore
Current and potential clients of Sitecore were constantly asking about the benefits of cloud computing. The company wanted a scalable, one-size-fits-all infrastructure, that offered ease of use, and most importantly, one-click deployment to the cloud.
With the Windows Azure version of Sitecore CMS, clients use a Web interface to select the geographic region in which they operate, then they simply click the deploy button. It takes 15 minutes to deploy the databases for a large Web site to the cloud.
According to Gartner research, Sitecore is the leading international content management vendor. Based in Copenhagen, Denmark with offices in Mill Valley, United States, they were founded in 2001, they have 200 employees and more than 2000 clients. Operates in the IT services industry.
• Revenue growth - will increase business growth by 200 percent• Scalability & high availability -- “Using 10 Web servers is as easy to do as using 100
Web servers, improving business continuity.” (Mikkel Hoy Sorensen)
Company Profile:
A full service job-listing Web site based in Mexico, OCCMundial.com gathers more than 15 million unique visitors and posts more than 600,000 positions at more than 7,000 companies each year.
Case StudyJob-Listing Web Site Scales Up Solution, Reduces Costs by More Than U.S.$500,000
“With Windows Azure we’re saving up to $400,000 in hardware costs, plus at least a couple hundred thousand dollars for the staff that it would take to run that infrastructure.”
Eduardo Pierdant, Chief Technical Officer, OCCMundial.com
• Efficiency
• Easy Scalability
• Reduced Hardware and Management
Costs More Than $500,000
• Agility
• Enhanced Customer Value
To scale up its OCCMatch algorithm to match more resumes and job listings, OCCMundial.com needed to increase computing capacity without the costs of expanding its IT infrastructure.
After evaluating Google and Amazon solutions, OCCMundial.com used the Windows Azure™ operating system to host OCCMatch on the Internet in Microsoft data centers.
Better service to more customers at lower cost, and the agility to focus on enhancing OCCMatch.
42
• SaaS has sustainable growth: 42% year over year• Cloud spending • The time is NOW
The SaaS Opportunity
Summary
Windows Azure Business Value
• Develop, Deploy & Manage and Sell your SaaS applications• Microsoft partner solutions enhance your success• Windows Azure Marketplace expands REACH and REVENUE
Succeedingwith SaaS
• Build a business strategy to guide your deployment decisions • New thinking is required in Finance, Marketing, Sales, Support• Learn from others http://www.microsoft.com/casestudies/
43
What’s Next
Plan• Discuss cloud strategy within your
company• Contact local Microsoft Windows Azure
expert <name and email here>
TryUse one of these FREE partner offers:• Introductory Offer - free trial• Cloud Essentials – via Microsoft Cloud
Program • Microsoft BizSpark – for Startup ISVs
Learn• Read the Windows Azure ISV Business Economics Package at http://
partner.microsoft.com • Watch the Succeeding with SaaS Webinar Series on www.msdev.com • Send your technical team to the next workshop in this series
Presenter: enter the Windows azure Incubation team member name in the orange box below
Open Discussion
© 2011 Microsoft All rights reserved. All trademarks are property of their respective owners.
Appendix
Many Cloud EnvironmentsYou
man
ag
e You
man
ag
e
Platform(as a Service)
Infrastructure(as a Service)
You
man
ag
e
Dedicated(Managed Hosting)
Private(On-Premises)
You
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e
How ISVs can work with Microsoft