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Windows Azure – Why not?

Windows Azure – Why not?. Eric Nelson ericnel@microsoft.com Application Architect | Microsoft UK | http://www.ericnelson.co.uk. Agenda. Cloud Computing. What, Why and When. The Windows Azure ™ Platform. What. Transitioning to Cloud Computing. How. Cloud Computing.

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Windows Azure – Why not?

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  1. Windows Azure – Why not? Eric Nelson ericnel@microsoft.com Application Architect| Microsoft UK | http://www.ericnelson.co.uk

  2. Agenda • Cloud Computing • What, Why and When • The Windows Azure™ Platform • What • Transitioning to Cloud Computing • How

  3. Cloud Computing

  4. Simplifying Cloud Computing

  5. What Is Cloud Computing • Service Delivered On-demand • Broad Network Access £ Cloud computing is a model for enabling convenient, on-demand network access to a shared pool of configurable computing resources that can be rapidly provisioned and released with minimal management effort or service provider interaction Compute Average Usage Time • Shared Pool Of Resources • Supports Elastic Demand = • Measured Service National Institute of Standards and technology off off on

  6. What different types exist today? • Private • (On-Premise) • Dedicated • (Managed Hosting) • Infrastructure • (as a Service) • Platform • (as a Service) • Applications • Applications • Applications • Applications Your value • You manage • Data • Data • Data • Data • Security and Integration • Security and Integration • Security and Integration • Security and Integration • You manage • Databases • Databases • Databases • Databases • You manage • Managed by vendor • O/S • O/S • O/S • O/S • Managed by vendor • Managed by vendor • Virtualization • Virtualization • Virtualization • Virtualization • Servers • Servers • Servers • Servers • Storage • Storage • Storage • Storage • Networking • Networking • Networking • Networking 6

  7. Why now Is The Right Time For Cloud Services • A Convergence of Factors Pervasive network access across Corporate, SMBs and Consumers CIOs need to deliver strategic, competitive value… outsourcing other functions sharpens internal focus Economic environment tightening IT budgets drive demand for more economically efficient solutions Improved security and acceptance of secure data centersby customers Emergence of platforms for developing and delivering cloud applications – PaaS, SaaS and IaaS Cloud Services Now is the Time Greater depth & breadth of cloud offerings and alignment with diverse customer needs (e.g. SMBs, Corporates) 7

  8. Why Is The Cloud Relevant For You • Analyst Forecasts • “Spending on public IT cloud services will grow 5X the rate of the IT industry in 2011, up 30% from 2010.” • “By 2012, 80% of Fortune 1000 enterprises will be using some cloud computing services, 20% of businesses will own no IT assets.” • Source: IDC (March 2010) • Source: IDC (March 2010) • Source: Gartner • ISV Top Of Mind Issues • Remaining • Competitive • Managing • Data Centers • Staying • Focused • Maintaining Security, privacy and continuity • Reducing • Costs • Embracing • Globalization

  9. Why Is The Cloud Relevant For You Reduce operating costs and increase revenue • New market channels via SaaS, Cloud Services • New business opportunities enabled by massively scalable storage and compute power • New Geographies £ £ £ Improve business agility and shorten time to market Cloud computing is here to stay

  10. When should you adopt?

  11. Just some of the 200+

  12. Videos to watch…

  13. When should you use: Optimal Workload Patterns “Growing Fast“ “On and Off “ Inactivity Period Compute Compute Average Usage Usage Average Time Time • On and off workloads (e.g. batch job) • Over provisioned capacity is wasted • Time to market can be cumbersome • Successful services needs to grow/scale • Keeping up w/growth is big IT challenge • Complex lead time for deployment “Unpredictable Bursting“ “Predictable Bursting“ Compute Compute Average Usage Average Usage Time Time • Services with micro seasonality trends • Peaks due to periodic increased demand • IT complexity and wasted capacity • Unexpected/unplanned peak in demand • Sudden spike impacts performance • Can’t over provision for extreme cases

  14. Today… Allocated IT-capacities Load Forecast Not Enough Power Too Much Power IT CAPACITY ActualLoad TIME

  15. Tomorrow Load Forecast No screaming customers Capacity on Demand IT CAPACITY No capital laying idle Knob goes up... And... down Lower Capex ActualLoad TIME

  16. When should you use: Many other scenarios “I want to try something now“ “Departmental“ Machines Machines Time Time • Need to quickly provision new machines for a temporary period of time • Need to quickly provision new machines for a departmental solution “Just store data in the Cloud“ “Extend to the Cloud“ • With all processing elsewhere • Extend existing applications “Migrate existing applications“ “New hybrid services“ • Benefits of reduced operational costs • On-premise and Cloud aka S+S

  17. Windows Azure Platform Overview

  18. Windows Azure Platform makes it easy and cost effective to runyour applications and storeyour data inside Microsoft Data Centres usingexisting skills and integrate with your existing on-premise applications

  19. Windows Azure … An Open And Flexible Platform • General Purpose Programming Languages • Windows Azure Platform Compute Storage Management CDN AppFabric Relational database Marketplace Data sync

  20. With Worldwide Reach… • North American Region • Asia Pacific Region • Europe Region Northern Europe North Central USA Eastern Asia Western Europe South Central USA Southeast Asia • Data Centers Across 3 Continents • 24 Global Locations for CDN Services that Scale Automatically

  21. With Local Presence… Dublin • First Mega Datacentre built outside the US • On-line on July 2009 • Cost $500 million, 303K+sq ft facility and growing • EU Datacenter Best Practice Award Winner • Stand-alone Server Pods • Environmentally Sustainable • Free Air-Cooling via Air-Side Economization • 50% less energy use vs. traditional facilities • 1 % water use vs. traditional facilities • 5.4 MegaWatts today, 22.2 MW for future use

  22. And WorldClass Security • A Secure, Reliable and Certified Computing Platform • Windows Azure resides in certified data centers • ISO/IEC 27001:2005 standard • AICPA’s SAS 70 Type II standard • Redundant power supplies, battery and diesel backup generators, climate control, fire prevention and suppression • Datacenters in many geographies with choice of single location or distributed datacenters • Storage data replicated multiple times • Fabric designed to be backed up and restored from checkpoints • Physical • Continuity • Windows Azure optimized for cloud access with no admin access to guests or apps • Applications and users don’t update the OS • Microsoft complies with relevant standards and regulations • Industry certification part of the Windows Azure roadmap • Application security is customer responsibility • Logical • Compliance & Certification

  23. Transitioning to Cloud Computing

  24. Business Value For ISVs • Helping ISVs Throughout The Application Development Lifecycle • …on the most open, comprehensive platform • Use what you know • Cut development time • Most comprehensive platform • …no matter where you are starting from • Uncover new revenue • Application marketplace to grow sales • Partner support eco-system • …with fully managed hardware and software • Scale to demand • Reduce costs • Rely on world class security, continuity, privacy • Develop • Sell • Deploy & Manage • Innovate Quickly • Grow your business • Scale reliably & cost effectively

  25. Delivery Rhythm Channel Dynamics Deployment Thinking Differently For The Cloud • Financial Metrics • Sales and Marketing • Distribution and Support • Churn Rate • Cash flow • Lifetime Value of a Customer • Committed Monthly Revenue • Licensing • Customer Acquisition • Try before Buy • Sales Cycle • Referral Programs • Delivery rhythm • Channel Dynamics • Service Level Agreements • Support • Billing

  26. Succeeding with SaaS Webinar Series • Navigating the Business Changes for ISVs Moving to the Cloud • http://ericly.co.uk/saaswebinars

  27. You, your customer and Microsoft • Customer buys app and Windows Azure from Partner and Partner buys Windows Azure From Microsoft • Customer • ISV • Customer Buys App From Partner And Customer Buys Windows Azure From Microsoft • ISV • Customer

  28. Windows Azure Purchasing Options • Three Different Ways To Purchase Windows Azure • Low barrier to entry and flexibility • Optimized for cloud elasticity • Discounts for commitment • Plans for payment predictability • Unified purchasing through EA • Introduction to volume discounts • Consumption • Commitment • Additional Licensing • “Pay as you go and grow” • “Value for a commitment“ • “Coordinated purchasing” • Promotional Offers • Development pricing • Partner Discount • Integration With Programs

  29. Online Calculator

  30. Offers

  31. Ways To Sell On The Cloud • FREE USAGE • PER UNIT • PAYMENT TYPE • Freemium • Per Meter • Monthly Subscription • Free basic level • Premium upgrades • Customers pay an amount per monthly • Pricing per unit of measure – such as storage (per MB) • Ad-based Revenue • Per Transaction • Revenue Share • Discrete transaction units that can be easily measured and tracked • A share of revenues generated via the service provided • Revenue from advertisers not users • Related Services Charged • Per User/Device • License fee • Free App Use with charge on related services / or virtual goods • Customers pay for each user/device using the product or service • A large upfront payment for the license

  32. Windows Azure Marketplace

  33. Windows Azure Marketplace • Sell your Windows Azure applications • Sell premium datasets & APIs(web services) • Build & sell innovative apps on existing datasets available on the marketplace Ready Sell Publish • Pass Qualification Process • Ready App or Data with Publishing Kit • Submit Commerce Ready App or Data • Sign Online Agreement • Get Published • Start selling • 80/20 Revenue Share

  34. Final thoughts You can use a lot or a little of the Windows Azure Platform Many companies already have and many more will Same skills, tools, people but need to think differently

  35. Getting help from Microsoft

  36. Helping early adopters • Global • Bloghttp://blogs.msdn.com/windowsazure • www.azure.com • www.msdev.com • Microsoft Platform Ready • Partner Offers • Market Place • United Kingdom • Bloghttp://blogs.msdn.com/ukisvdev • LinkedInhttp://bit.ly/ukisvdevgroup • Twitterhttp://twitter.com/ukisvdev • Discovery Workshops • Six Weeks of Windows Azure • Highlight • Incubation

  37. Six Weeks of Windows Azure www.sixweeksofazure.co.uk

  38. Next Steps (all links at www.ericnelson.co.uk ) • Get Started Today! • Sign up for FREE at www.microsoftplatformready.comto gain access to Cloud Essentials and free support. • Profile your company and expected usage of Windows Azure • Connect with UK http://ericly.co.uk/ukisvfirststop 1 • Get plugged in to Global/UK resources 2 • Attend a FREE Windows Azure Discovery Workshop http://ericly.co.uk/ukisvtechevents (Next Nov 8th) • And • Explore www.azure.com and www.msdev.com • Learn 3 • Sign up for FREE at http://www.sixweeksofazure.co.uk • Develop, Test & Sell with help from Microsoft UK

  39. Managing the Financials • New Financial Drivers CMRR Committed Monthly Recurring Revenue Number of Signed Contracts x Monthly Amount of Each Contract -Value of Cancelled Contracts Cash Flow the pattern of income and expenses, and its consequences for how much money is available at a given time Churn Rate The percentage of customers or subscribers, who do not renew their contracts in a given period C-PIPE CMRR Pipeline This is the summation of expected values of each contract x the probability of getting the contract CAC Customer Acquisition Cost Total Cost of Sales & Marketing/Number of New Deals Closed CLTV Lifetime Value of Customer Avg Rev per Customer x Avg Lifetime per Customer – the cost to serve them 39

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