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Microsoft Azure for Enterprises: What and WhyDavid Chappell, Chappell & Associates@DChappellAssoc
DEV-B212
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The Main Idea
Nearly every enterprise today can benefit from using Microsoft Azurei
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How Change HappensFrom innovation to obligation
CompetitiveAdvantage
to Firm
First firm in an industry implements innovation
Second firm in the industry implements innovation
Third firm in the industry implements innovation
TIME
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Window of differentiation
Categorizing IT Spending
CompetitiveAdvantage
to Firm
Utility ITStrategic IT
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Enterprises and Public Cloud PlatformsWhy you care
What strategic applications need
Ability to support new, modern business ideas
Elastic resources
Support for fast development
What utility applications need
Low cost
Reliability
Public cloud platforms
can improve both
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Cloud Platform Basics
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Introducing Microsoft AzureA public cloud platform
Microsoft Azure provides Internet-accessible computing resourcesIt runs in data centers around the world
US US US US Europe Europe AsiaAsiaAsiaAsia Australia
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Barriers to Public Cloud AdoptionSecurity
Can a public cloud platform keep my data and applications safe??
ANSWERYou must learn to trust your public cloud provider
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Can I still meet regulatory requirements in the public cloud??
Barriers to Public Cloud AdoptionCompliance
Laws and Regulations for Off-Premises ComputingFINANCIALSERVICES HEALTHCARE RETAILING
NATIONAL GOVERNMENT
LOCALGOVERNMENT . . .
CO
UN
TR
Y United Kingdom
United States
Japan
Singapore
Germany
South Korea
. . .
?
?
?
?
?
?
?
?
?
?
?
?
?
?
?
?
?
?
?
?
?
?
?
?
?
?
?
?
?
?
? ? ? ? ?
?
?
?
?
?
?
?
ANSWERYou must understand the rules that apply to you
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Barriers to Public Cloud AdoptionAvailability
Will public cloud datacenters be up when they’re needed??
ANSWERThey’ll be at least as good as your own datacenter, and there are SLAs
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Barriers to Public Cloud AdoptionThe unspoken worry
Will public cloud platforms make me lose my job??
ANSWERSome things will change; people who don’t like change shouldn’t work in the technology industry
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Cloud Services
WorkerRoles
Web Roles
Application
Microsoft Azure TechnologiesCompute
Virtual Machines
User-Supplied
VMs
Gallery
VHDs
VHDs
Infrastructure as a Service (IaaS)
Platform as a Service (PaaS)
Web Sites
IIS
Application
Application
Application
IIS Application
Platform as a Service (PaaS)
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SQL Database
Microsoft Azure Technologies Data management
Blob Storage
10001101001111011111011010001101001111
01111101101000110100111101111101
10
DBMS in a VM
VM
SQL Server,
MySQL, …
Binarystorage
IaaS relational storage
PaaS relational storage
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MIC
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Microsoft Azure Technologies Networking
EN
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PR
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Virtual Network allows a VPN connection toMicrosoft Azure
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Microsoft AzurePricing examples (in US dollars)
User
BandwidthInbound:Free
Outbound: $0.05 to $0.12/GB US and Europe$0.12 to $0.19/GB elsewhere
StorageSQL Database: $0.999 to $9.99/GB per month, depending on database size
Blob Storage: $0.022 to $0.061/GB per month, depending on size and capabilities
ComputeVirtual Machines: $0.02 to $1.32/instance per hour, depending on instance size and capabilities
Enterprise agreements commonly discount these
prices
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What Public Cloud Platforms Can Provide: Utility IT
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Using blob storageUsing VMs for dev/testDeploying packaged applicationsMoving existing applications to the public cloud
Utility ITExample scenarios
Utility ITStrategic
IT
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EN
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Blobs
Using Blob StorageExamples
100011010011001111011111011011010001
101
100011010011001111011111011011010001
101
100011010011001111011111011011010001
101
100011010011001111011111011011010001
101
SAN appliance for hybrid storage
MicrosoftStorSimple
SQL Server
Store backup data
System Center 2012 Data Protection Manager
Store backup data
Applications
Store arbitrary binary data, e.g.,
videos
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Data StorageWhy do this?
Lower cost EXAMPLEOne terabyte stored in geo-redundant blobs Operations on the
data: 10,000,000/month
Data transfer out: 500 gigabytes/month
COSTSStorage: $61/monthOperations: $0.50/monthData transfer: $60/month (US/Europe)
$95/month (elsewhere)
Total: $121.50/month (US/Europe)
$156.50/month (elsewhere)
$
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EN
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Using VMs for Dev/TestExample: A simple environment
VMs
Developers
Microsoft Azure Virtual
Machines
1 Create VMs2 Use VMs
IT Admin or Developer
Microsoft Azure Management
Portal
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EN
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Using VMs for Dev/TestExample: A more complete environment
Microsoft Azure Virtual
Network
VMs
Developers
Microsoft Azure Virtual
Machines
1 Create VMs
VM
ActiveDirectory
Active Directory
2 Use VMs
IT Admin or Developer
Microsoft Azure Management
Portal
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Using VMs for Dev/TestWhy do this?
Fast and simple way to get inexpensive VMs
Can use Microsoft Azure-provided VHDs or your own, Windows or Linux
Users can potentially access cloud VMs as if they were local
Useful in many situations
Dev/test environment for cloud or on-premises apps
Innovation/proof of concept projects
Having the capability available is cheap
A Microsoft Azure Virtual Network connection costs $0.05/hour
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Deploying Packaged ApplicationsExample: SharePoint on Microsoft Azure
EN
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PR
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IT AdminUsers
Microsoft Azure Virtual
Machines
1 Create VMs
VMs VMs
SharePoint SQL
2 Deploy and configure SharePoint
Active Directory
VM
ActiveDirector
y
Microsoft Azure Virtual
Network
Microsoft Azure Management
Portal
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Faster deployment
No need to wait for central IT
IT resources become an operating expense
Rather than a capital expense
Lower cost
Microsoft Azure is probably cheaper today and certainly cheaper tomorrow; prices keep going down
Deploying Packaged ApplicationsWhy do this?
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MIC
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Moving Existing Applications to the Public CloudExample: Moving a custom application to Microsoft Azure
EN
TER
PR
ISE
IT Admin
Active Directory
Users
VMVMs VMs
ActiveDirector
y
CustomApplicatio
nDBMS
2 Deploy and configure application
1 Create VMs
Microsoft Azure Virtual
Machines
Microsoft Azure Virtual
Network
Microsoft Azure Management
Portal
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Moving Existing Applications to the Public CloudWhy do this?
Lower cost EXAMPLETwo medium Windows VMs ($.18/hour each) running continuously
Stores 100 gigabytes Operations on the
data: 30,000,000/month
Data transfer out: 50 gigabytes/month
COSTSCompute: $268.00/monthStorage: $6.10/month Bandwidth: $6/month (US and Europe)
$9.50/month (elsewhere)
Total: $280.10/month (US/Europe)
$283.50/month (elsewhere)
$
Making good decisions here requires knowing current on-
premises costs
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Using blob storageUsing VMs for dev/testDeploying packaged applicationsMoving existing applications to the public cloud
Utility ITSummarizing the scenarios
Utility ITStrategic
IT
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What Public Cloud Platforms Can Provide: Strategic IT
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New employee-facing applicationsNew customer-facing applicationsNew parallel applications
Strategic ITExample scenarios
Utility ITStrategic IT
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To improve the execution of an existing business modelSuch as automating a current business process
To support a new business modelSuch as offering customers self-service access to services
Why Do Organizations Build New Applications?
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The Business Model CanvasA tool for thinking about new strategic applications
Customer Segments
Customer Relationships
Channels
CUSTOMER
Key Partners Key Activities
Key Resources
INFRASTRUCTURE
Cost Structure Revenue Stream
FINANCE
Source: Business Model Generation, Alexander Osterwalder, et al.www.businessmodelgeneration.com
Value Proposition
OFFERING
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How Microsoft Azure Affects Business ModelsSome examples Customer
SegmentsCloud apps can reach smaller customers and partners more cheaply
Customer RelationshipsCloud apps allow more customer self-service
ChannelsCloud apps allow selling directly to customers
Key PartnersYour cloud platform vendor becomes an important partner
Key Activities
Key ResourcesMassive, cheap compute and storage are now available to anybody
Cost StructureElastic pricing makes very spiky apps more economically feasible
Revenue StreamPay-as-you-go computing resources allowlower-risk experimentation with new business models
In-house IT resources can be reallocated
?
Value Proposition
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MIC
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New Employee-Facing ApplicationsExample: An IaaS application
EN
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PR
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DeveloperUsers
Microsoft Azure Virtual
Machines
1 Create VMs
2 Deploy application and dataVMs VMs VMs
App
DBMS
DBMS
Microsoft Azure Management
Portal
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Ease and speed of deployment
No need to wait for central IT
Capabilities you can’t easily get otherwise
Geographic distributionEasy up-and-down scaling Especially
important for spiky apps
Lower cost
Because of public cloud platform scale and/or elasticity
New Employee-Facing ApplicationsWhy do this?
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MIC
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New Employee-Facing ApplicationsExample: A PaaS application
EN
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PR
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DeveloperUsers
1 Deploy application and data
VMs
App
SQL Database
Microsoft Azure Web
Sites or
Microsoft Azure Cloud
Services
Microsoft Azure Management
Portal
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Ease and speed of deployment
The PaaS platform already exists--no need to create it
Lower management cost
Microsoft Azure maintains the environment for you
Lower risk
Fewer things to configure means fewer opportunities for error
New Employee-Facing Application with PaaSWhy use PaaS rather than IaaS?
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New Customer-Facing ApplicationExample: A PaaS application
EN
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PR
ISE
Developer
Microsoft Azure Web
Sitesor
Microsoft Azure Cloud
Services
1 Deploy application and data
VMsVMs
App
SQL Database
CU
STO
MER
S
Microsoft Azure Management
Portal
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Capabilities you can’t easily get otherwise:
Massive scaleEasy up-and-down scalingHigh reliability Geographic distributionNoSQL database service
Lower cost
Because of public cloud platform scale and elasticity
New Customer-Facing ApplicationsWhy do this?
Ease and speed of deployment
Especially with PaaS
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New Customer-Facing Applications Where Microsoft Azure is a very good fit
Examples
Backends for enterprise mobile applications
Online ticket sales
Marketing web sites, high-risk innovative apps
Consumer web applications
Application Characteristic
Has very spiky usage
Running the application on-premises raises security issues
Needs fast access to computing resources with no commitment
Requires massive or global scale
Start-ups, progressive businesses
Customers don’t want in-house IT
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New Parallel ApplicationsExample: An HPC application on Microsoft Azure
EN
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Developer/IT Admin
Users
1 Create cluster
100011010011001111011111011011010
001101
100011010011001111011111011011010
001101
100011010011001111011111011011010
001101
2 Submit job
VMs VMs VMs VMs
LogicLogic Logic Logic
Windows Server with HPC Pack
2012
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MapReduce Job
New Parallel ApplicationsExample: A big data application using Microsoft Azure HDInsight
EN
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MIC
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Developer/IT Admin
Microsoft Azure
HDInsight
1 Create Hadoopcluster
VMs
VMs
VMs
VMs
100011010011001111011111011011010
001101
100011010011001111011111011011010
001101
100011010011001111011111011011010
001101
2 Submit MapReduce job
LogicLogic Logic Logic
User
3 Get results
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Lower cost
Pay only for the VMs you need when you need them
On-demand access to a managed cluster
Windows HPC Server provides built-in support for creating and managing a cluster on Microsoft Azure
New Parallel ApplicationsWhy do this?
On-demand access to a Hadoop cluster
Microsoft Azure HDInsight provides built-in support for creating and managing a Hadoop cluster
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New employee-facing applicationsNew customer-facing applicationsNew parallel applications
Strategic ITSummarizing the scenarios
Utility ITStrategic IT
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Public cloud platforms can provide:Lower cost and higher reliability for utility applicationsBetter support for strategic applications
At least one scenario probably has value for every enterprise right nowUtility, strategic, or both
Conclusions
What are you waiting for?!
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About the SpeakerDavid Chappell is Principal of Chappell & Associates (www.davidchappell.com) in San Francisco, California. Through his speaking, writing, and consulting, he helps people around the world understand, use, and make better decisions about new technology. David has been the keynote speaker for more than a hundred events and conferences on five continents, and his seminars have been attended by tens of thousands of IT leaders, architects, and developers in forty-five countries. His books have been published in a dozen languages and used regularly in courses at MIT, ETH Zurich, and other universities. In his consulting practice, he has helped clients such as Hewlett-Packard, IBM, Microsoft, Stanford University, and Target Corporation adopt new technologies, market new products, and educate their customers and staff. Earlier in his career, David wrote networking software, chaired a U.S. national standards working group, and played keyboards with the Peabody-award-winning Children’s Radio Theater. He holds a B.S. in Economics and an M.S. in Computer Science, both from the University of Wisconsin-Madison.
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© 2014 Microsoft Corporation. All rights reserved. Microsoft, Windows, 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.