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What is Microsoft's cloud and why do the new economics of Microsoft's cloud make sense for businesses today
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TRANSFORMATIE VAN IT
1970s and 80s | Mainframe
1990s | Client / Server
2000s | Web
Today | Cloud
HOW MICROSOFT VIEWS THE CLOUD
Nieuwe Principe's
Schaalbaarheid Betalen naar gebruik
Hoge beschikbaarheid
Multi-tenancy
Infrastructuur
Business model
Eigendom
Keuze
Management
Locatie
SUPPLY SIDE ECONOMICS OF SCALE
• Server hardware costs
(~45%)
• Facility & operations
(~25%)
• Hardware labor costs
(~15%)
• Power costs (~15%)
Larger datacenters have almost 50% lower TCO per server
ANNUAL TCO/SERVER DECLINES W/SCALEMAIN DATA CENTER COST BUCKETS
$0
$1,000
$2,000
$3,000
$4,000
$5,000
1k Server DC 100k Server DC
TC
O/S
erv
er
Server Hardware Facility Hardware Operations Power
DE MICROSOFT CLOUD
Monolithic design and construction effort
Typical large datacenter = 11 football fields
High Investments $$$ Typical construction costs = $10M to $15M per Megawatt
Long lead time 18 to 24 months from design to online
DE MICROSOFT CLOUD
ChicagoQuincy
DublinAmsterdam
Hong Kong
Singapore
Japan
"Datacenters have become as vital to the
functioning of society as power stations."
The Economist
San Antonio
Multiple global CDN locations
Microsoft has more than 10 and less than 100 DCs worldwide
BoydtonDes Moines
Quincy, Washington 27MW 100% Hydro power
San Antonio, Texas 27MW Recycled water for cooling
Chicago, Illinois Up to 60MW Water side economization, Containers
Dublin, Ireland Up to 50MW Outside air cooling, PODs
SUSTAINABLE ECONOMICS
PUE Ojective: 1.125
Satisfied Customers
Less e-Waste
Less Empty Space
Less Wasted Power
Less Idle Equipment
Less Carbon
Less Raw Materials
• Improved Efficiency Energy savings and Sustainable Environment
• Reduced TCO for supply of cloud services
• Relentless focus on PUE reduction
• Lower cost passed on to customers
• Competitive Advantage
SHIFT TO ULTRA-MODULARITY
• Pre-manufacture the entire datacenter
• Low initial capital investment
• ITPAC Modular Server Building Block
• Airside Economization PAC with adiabatic cooling
• Extremely efficient PUE of 1.05 - 1.2
• 400 to 2500 servers at a time
DEMAND SIDE ECONOMIES OF SCALEAverage server utilization rates are 5-10%
0%
25%
50%
75%
100%
CP
U U
tili
zati
on
Time
UNCERTAIN GROWTHUncertainty about future demand requires overprovisioning of resources.
Pooling uncertainty dramatically reduces this inefficiency
Instance
Client
Admins
Resources
Instance
Client
Admins
Resources
Instance
Admins
Resources
SINGLE-TENANT APPLICATION
MULTI-TENANCY BENEFITS
Multi-tenant applications share resources between users and organizations
Instance
Admins
Resources
Instance
Admins
Resources
Instance
Admins
Resources
MULTI-TENANT APPLICATION
MULTI-TENANCY BENEFITS
Multi-tenant applications share resources between users and organizations
Multi-tenant Cloud OS
CLOUD OPERATING SYSTEM
PUBLIC VS. PRIVATE CLOUDS
$0
$2,000
$4,000
$6,000
$8,000
100 1,000 10,000 100,000
TC
O/S
erv
er
Cloud Size (# of Servers)
CLOUD SCALE BENEFIT
(On-Premise)Infrastructure
(as a Service)
Platform(as a Service)
SERVICE MODELS
Storage
Servers
Networking
O/S
Middleware
Virtualization
Data
Applications
Runtime
Storage
Servers
Networking
O/S
Middleware
Virtualization
Data
Applications
Runtime
You
man
ag
e
Man
ag
ed
by v
en
do
r
Man
ag
ed
by v
en
do
r
You
man
ag
e
You
man
ag
e
Storage
Servers
Networking
O/S
Middleware
Virtualization
Applications
Runtime
Data
Software(as a Service)
Man
ag
ed
by v
en
do
r
Storage
Servers
Networking
O/S
Middleware
Virtualization
Applications
Runtime
Data
Service Categories
Lower Cost & Higher AgilityHigher Control & Higher Cost
CLOUD SERVICES FOR BUSINESSES
PLATFORMBUSINESS USERSBUSINESS APPS
THE VALUE OF CLOUD COMPUTING
http://www.mckinseyquarterly.com/Business_Technology/BT_Strategy/How_IT_is_managing_new_demands_McKinsey_Global_Survey_results_2702?gp=1
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
Forecasters
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)
THE HORSELESS CARRIAGE SYNDROME
© 2010 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.
