realdolmen cloud event 5 april 2011 - presentation michael kogeler (director cloud strategy...

In Touch With The Cloud(s) RealDolmen Cloud Event

Michael Kogeler Director Cloud Strategy Business Strategy Team Microsoft International Headquarters

So, who is Michael Kogeler ?

Michael Kogeler

Director Cloud Strategy

Microsoft International Headquarters

Mail - mkogeler@microsoft.com

Blog - www.kogeler.com

Messenger – michaelkogeler@hotmail.com

Private Mail - michael@kogeler.com

Twitter – #mkogeler

Your single moment of attention the next 45 minutes.... (and your main lesson learned for today)

Intensity of

audience

attention

(meaning you

are still awake)

Presentation time

(or my overload of slides)

Your Single “Pay

Attention” Moment Of

Today

Slide 29 Slide 1

Cloud Computing Complexity... Pull stick up, Plane goes up, Push stick down, Plane does down.

The buttons ? They’re there to impress the chicks. Chicks are complex.

The horseless carriage syndrome…

The horseless carriage syndrome…

"If I had asked my customers what they wanted, they

would have said a faster horse." - Henry Ford

“There will never be more than 1 million units because of

the limited availability of good drivers”

- Daimler Company

Marketing & Finance

Engineers

Customers

“The horse is here to stay but the automobile is only a

novelty, a fad.” - Bank analyst

Analysts

…designed whip holders into the automobiles for the first

6-7 years, even though there was no horse…

(there were 8 million by 1918, over 600 million today)

YOU CANNOT PLAN FOR

THE FUTURE IF YOU DO

NOT KNOW WHAT YOU’RE

NOT PREPARED FOR.

DISRUPTIVE THINKING – RULE #1

So, what is this cloud thing?

An approach to computing that’s about Internet Scale and Connecting to a

variety of Devices and Endpoints

Browsers, Email, eCommerce, Hosting, Wi-Fi, Web 2.0

Distributed Computing

Word Processor, Spreadsheets DOS, GUI, Windows

Cloud is the Fifth Generation of Computing

Financial, MRP Reservations

Cloud Computing, Social Networks Products>Solutions>Services

MAINFRAME

• Centralized compute

& storage, thin

clients

• Optimized for

efficiency due to

high cost

• High upfront costs

for hardware and

software

CLIENT-SERVER

• PCs and servers for

distributed compute,

storage, etc.

• Optimized for agility

due to low cost

• Perpetual license for

OS and application

software

CLOUD

• Large DCs,

commodity HW,

scale-out, devices

• Order of magnitude

better efficiency and

agility

• Pay as you go, and

only for what you

use

Computing paradigm disruptions Cloud disruption is about more than a technology shift. The economic and business model shifts are at least as important

TECHNOLOGY

BUSINESS

MODEL ECONOMIC

“Cloud computing is a reality, and

it's a force that IT professionals

need to quickly come to terms

with. The economic and social

motivation for the cloud is high,

the business need for speed and

agility is greater than ever before,

and the technology has reached a

level in which prudent investments

in cloud services are fast and

easy.”

–Network World,

May 2009

"The reality is that cloud computing is

a revolutionary style of computing

that is emerging from evolutionary

change. Underneath the fog, there are

a number of trends that are

converging to fuel the cloud-

computing phenomenon. Cloud

computing sets the stage for a new

approach to IT that enables

individuals and businesses to choose

how they'll acquire or deliver IT

services, with reduced emphasis on

the constraints of traditional software

and hardware licensing models."

- Key Issues for Cloud Computing,

2010, Gartner – March, 29 2010

“Cloud infrastructure computing will

move squarely into the mainstream as

a significant number of Fortune 1000

companies adopt the utility computing

model demonstrated by moving a

portion of their "sandbox" apps into

production on public clouds.”

– Worldwide Software Business

Solutions 2010 Top 10 Predictions:

The "New Normal" for Enterprise

Software, IDC -

February 2010, Doc #222024

Generally accepted as the next logical step in IT evolution

A revolutionary style of computing

Cloud computing is moving into the mainstream

Cloud is on your agenda (I guess or better hope…. )

“By 2012, 80% of Fortune 1000 enterprises will be using some Cloud Computing Services, 20% of businesses will own no IT assets.” - Gartner

Source – Gartner Research, Cloud Computing HypeCycle 2010

What’s the value you hope to find in Cloud ? McKinsey Research

Any concerns going Cloud ? Gartner Research

NEVER ATTEMPT TO

PREDICT THE FUTURE.

BEHIND EVERY STRATEGY

THERE IS A FALSE

ASSUMPTION.

DISRUPTIVE THINKING – RULE #2

Fact - Acquisition cost is 10% of IT Spend

• Ability to negotiate considerable savings for hardware,

power and bandwidth due to scale.

Fact - 85% of datacenter capacity is idle on average

• Pooling demand from diverse customer base can

dramatically increase (~3x) utilization.

Fact - 70% of IT budget is spent maintaining

datacenter operations

• Data-center automation and application of multi-

tenancy significantly reduce labor costs.

Cloud computing economies of scale Benefits of going Cloud

Cloud computing scenarios Detailing some “no brainers” for Cloud usage

Average

Usage

Co

mp

ute

Time

Usage

Co

mp

ute

Time

Average

Inactivit

y

Period

Co

mp

ute

Time

Average

Usage

Co

mp

ute

Time

Average

Usage

Pu

bli

c C

lou

d E

co

no

mic

s

Private Cloud Preference

SMB (<200 servers)

Academic

Midsize (200-1,500 servers)

Size represents number of servers in market

Enterprise (1,500+ servers)

Government (Fragmented)

Government (Consolidated)

Cloud Computing predictions Where do we see the world moving….

Defining cloud computing… What is it, and what not…

ON-PREMISES HOSTED CLOUD

• Buy own machines,

connectivity, software,

etc.

• Upfront capital costs for

the infrastructure

• Complete control and

responsibility

• Rent machines,

connectivity, software

• Lower capital costs, but

pay for fixed capacity,

even if idle

• Less control, but fewer

responsibilities

• Pay as you go

• Shared, multi -tenant

environment

• Offers pool of

computing resources,

abstracted from

infrastructure

3 Types of Cloud Services…

infrastructure as a service

migrate to it

“IaaS” platform as a service

build on it

“PaaS” software as a service

consume it

“SaaS”

The Cloud Computing Landscape Who plays where…

CLOUD SERVICES

TV/HOME PC MOBILE

25M People On Xbox

Live

530M Active Windows Live

IDs

368M People Using Hotmail

Over 4B WW Queries Each Month

Over 6M Songs In The

Catalog

Over 459M Unique Users

14B Ads Per Month

Over 303M Users Each

Month

2B Unique Calls Per

Year

Microsoft and Cloud Computing “What do you mean you’re new to this game ?”

Microsoft Commercial Cloud Services Broadest range of offerings from On-Premise to Cloud

PRODUCTIVITY COLLABORATION BUSINESS

APPS STORAGE PLATFORM

MANAGEMENT & SECURITY

COMMUNICATIONS

9,000 business customers

40M paid Online seats

More than 500 government entities

Over 50% of the Fortune 500

70% switching from Notes

12,000 partners

Public and private cloud flexibility Financially-backed uptime guarantees

Over $2B invested in cloud infrastructure 30.000 engineers on cloud services

The Microsoft Cloud $2BN dollar infrastructure investments

100 + Data Centers Across The Globe

Quincy, WA Chicago, IL San Antonio, TX Dublin, Ireland Generation 4 DCs

The Microsoft Cloud Generation 4 Datacenters

The Cloud and the environment It is not all about saving cost and improving efficiency…

What we hear from our customers Commonly asked questions and expectations

Cloud brings answers…

NEW

ECONOMICS

INCREASED

PRODUCTIVITY

REDUCED

MANAGEMENT

YOU CANNOT OUTPERFORM

A MARKET IF YOU ADHERE

TO ITS CONVENTIONS

DISRUPTIVE THINKING – RULE #3

Consuming the Cloud…. SaaS real life experiences

• What ?

• Potential Objectives

Consuming the Cloud Starbucks Coffee Company

• What ?

• Objectives achieved

Consuming the Cloud Coca-Cola Enterprises

• What ?

• Objectives achieved

Building on the Cloud…. PaaS real life experiences

• What ?

• Potential objectives ?

Consuming the Cloud The City Of Madrid

• What ?

• Objectives achieved

Building on the Cloud…. RiskMetrics Group

• What ?

• Objectives achieved

“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

Building on the Cloud…. Siemens

• What ?

• Objectives achieved

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

Building on the Cloud…. Domino’s Pizza

• What ?

• Objectives achieved

Migrating to the Cloud…. IaaS real life experiences

• What ?

• Potential objectives ?

Building on the Cloud…. Associated Press

• What ?

• Objectives achieved

““This project has allowed us to explore new possibilities we hadn’t thought of. It has

also fostered ideas internally…, and it has provided new business opportunities.” Alan Wintroub, Director of Development, Associated Press

New business

opportunity:

Sell consumer

demand forecasting

New Company IT ?? Sales

Operations

R&D

HR

Marketing

Accounting

Collaboration

For all

employees

So where do you start ? Some tips from the Microsoft Field

The possibilities are endless, but....

TALK DOESN’T COOK RICE

Old Chinese Proverb & Michael’s Favorite Saying

Thank You. (Q&A during the closing of the day)

Michael Kogeler

Director Cloud Strategy

Microsoft International HQ

mkogeler@microsoft.com