Sql Azure Partner Opportunities 07 29 2008

Agility in the New EconomyPartner opportunities Transform your business with SQL Azure

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Agenda

This presentation is about taking advantage of the changing economy with SQL Azure. Our agenda is:

Economic, business, and technology trends How to leverage SQL Azure for success Why Microsoft?

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Business trends reshape technologyTechnology is becoming invisible

While the economy has faced gloom and doom….

business is transforming in deeper ways…

creating shifts in technology.

Economic trends Business trends Technology trend

Customers face shrinking budgets, reduction of operating costs and capital expenditures

Customers are focusing resources on core value-add activities vs. non-strategic

Customers face increased competition as businesses fight for wallet share

Customers are looking for agility to stay competitive as well as find ways to compete in new areas.

Customers are trying to do more with less resources.

Customers are leveraging existing strategic IP and technology to expand customer reach.

Technology is shifting from information technology to business technology

Technology becomes invisible, erasing infrastructure complexity and making innovation democratic

Globalization and “a-la-carte” consumption of IT provides opportunities for expansion

“Technology will be invisible and completely embedded in the business ”

Forrester: Three Mega Business Trends will Reshape the Tech Sector, November, 2008

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Database costs grow as a percentage of total IT spend.

New database deployment is proliferating, creating management challenges.

Data integration becomes more complex , business data needs more demanding.

Data management increasingly important in technology trendsDatabase-as-a-service explodes on the scene!

Data Management Challenges

“The cost of RDBMS software has increased by 18% or more per year in recent years, putting further pressure on enterprises to look for alternate solutions.”

Database-as-a-service explodes on the scene, Forrester, Noel Yuhanna, July 31, 2008

Database-as-a-service brings a low cost option.

Database-as-a-service eliminates capacity issues, backup, recovery, and upgrades.

Data-base-as-a-service allows database applications to be consumed as an “a-la-carte” point solution.

Database-as-a-service trend

“By 2012, the dominant model for delivering technology to end-user companies will be through services.”


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Defining Cloud ComputingIn a cloud services model nearly everything can be converted to a “service.”

“Forrester believes that this will be a game-changing, disruptive shift for some enterprise clients — and perhaps even the overall outsourcing industry” 1

(1) Forrester: Market Overview Of Current Cloud Service Offerings From Global IT Providers, Paul Roehrig, June 9 2009

Cloud is a game-changer

Cloud services are based on a level of standardization for technology components

Forrester Definition1

Standardized IT-based capability

Most cloud services models charge by actual use of the resources

Consumption billing

Scalability and resilience are key design components of cloud services

Scalable

Many cloud services use a standard Web browser to control demand and implement services

Web-based accessibility

and flexibility

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Pay for access,

not ownership

Sharing computing

power among multiple tenants

Improve time-to-market

Instantscale-up

andscale-down

Benefits of Cloud ComputingThe cloud provides agility, scalability, and lowers implementation barriers

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How is Cloud different?Cloud vs. traditional hosting solutions

Cloud Hosting

Location Datacenter

Considerations

Infrastructure

Business model

Growth

Management

“Cloud”

DedicatedShared

Opex Capex / Opex

Elastic By Server

Third Party 3rd Party / Self

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Is the cloud secure?Data Security and Privacy: Myth vs. Reality

Myth

“Concerns about security are overblown. What we have found is that SaaS providers actually offer better data security and better application reliability than in-house operations, because the data centers are up to date with security management and have built-in redundancy."

Beth Enslow, Aberdeen, SaaS Apps Gaining Ground as Implementation, ROI Concerns Dwindle: CRM Buyer

Reality

My data is not protected unless it’s at my location

Location isn’t nearly as important as security measures.

As a rule, most security breaches now originate from within an organization.

Data is regularly stored offsite as a matter of practice.

“Your” security can’t be as good as ours.

We can’t lose control of our customer data.

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Cloud is here to stayThe cloud whips up a storm to enable software delivered as a service!

Inside the

head of

Obama’s CIO

March 5, 2009, Ben

Worthen

“I’m all about the

cloud computing

notion,” he said. “I

look at my life

style,

and I want access to

information

wherever I am.” He

added that “I am

killing projects that

don’t investigate

software as a service

first.” Vivek Kundra,

CIO Obama

Administration

Data Center OverloadJune 8, 2009, Tom

VanderbiltAs data centers increasingly become

the nerve centers of

business and society —

even the storehouses of

our fleeting cultural

memory — the demand

for bigger and better

ones increases: there is

a growing need to

produce the most

computing power per

square foot at the

lowest possible cost in

energy and resources.

The cloud whips up a storm.November 19, 2008,

Peter Whitehead,

Financial Times.

The implications are

potentially vast, with the

easy availability of

cheaper, bigger applications opening up

new sources of computing power to

businesses

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Other

Don't know

Log processing

Billing

Batch computing jobs

Application testing & development

Remote storage

Disaster recovery

Databases

Internet application hosting

0% 10% 20% 30% 40% 50% 60%

13%

4%

1%

4%

9%

22%

26%

26%

32%

50%

Source: The 451 Group

Top Uses For Cloud ComputingData management commands 32% in cloud computing

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Global Cloud IT spend (US$ B)

IDC predicts sharp adoption of the cloudThe rise of “cloud computing”

2007 2008 2009 20100

10

20

30

40

50

Source: IDC eXchange, "IT Cloud Services User Survey, pt.1: Crossing the Chasm,” Sept. 29, 2008, and "IT Cloud Services Forecast – 2008, 2012: A Key Driver of New Growth,” Oct 8, 2008.

$16.2B today – $42B by 2012

By 2012 will be 25%of all new IT spend

15% – 25% adoption today

25% – 45% adoption by 2012

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How can I deliver better solutions in a more cost effective way?

How can I monetize a new offering quickly and in a scalable way?

How can I take advantage of my existing IP to bring in more revenue?

Partner challenges and opportunitiesInvisible IT will be a source of differentiation

Partner challenges

“Invisible IT will make clever use of technology as the source of differentiation.”


Cloud enables partners to focus on the core application, make the infrastructure invisible

Cloud enables “first mover” advantage by reducing time to build and deploy market.

Monetize apps as a service to increase margins and find new sources of revenue

Partner Opportunities

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Agenda



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Introducing Microsoft® SQL AzureSQL Azure is a key component of the Windows Azure Platform

SQL Azure is a cloud-based relational database platform built on Microsoft® SQL Server® technologies. With SQL Azure, you can easily provision and deploy relational database solutions to the Azure cloud, Microsoft’s internet-scale cloud services platform hosted in Microsoft data centers.

• Unlimited, automated scaling • Self managing, self healing • Automatic failover• Multi-tenant• Low friction provisioning• Pay as you consume• Business Ready SLA

Benefits of SQL Azure:

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Innovate SaaS application or web applications of all scale

quickly.

Consolidate data and virtualize existing custom applications or

build new ones quickly and easily.

Expand your business by extending your current

packaged offering to the cloud.

Partner Success Scenarios Three examples of how to leverage SQL Azure for success

Eliminate cost and complexity for customers and focus on their core

Build new applications quickly without burden on customers’ IT.

Test or staging environments can be set up quickly ! Lower cost!

Make money before you spend money…lower cost of entry!

Shorten your time to market and focus on core via zero infrastructure!

Grow your business quickly through scale and geographical reach

Increase margins by lowering costs

Find new sources of revenue by selling point solutions from existing IP

Increase segment reach by providing a lower cost , pay-per-use offering

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Packaged ApplicationsExtend on-premise offerings to the cloud

“E-commerce applications have a heavy setup and deployment footprint – they require special consideration for typical sales bursts. The Azure platform facilitates “a la carte” consumption plus the ability to scale up or down dynamically. Leveraging SQL Azure makes a significant dent in the painful data center problem retailers are experiencing.”

Jean-Yves MartineauFounder and CTO, Cactus Commerce

E-commerce software vendor extends application

OSIsoft focuses on delivering infrastructure for the enterprise. Leveraging our existing PI System, we can build solutions using Azure that will allow us to provide an online service to deliver anywhere access to real-time plant data and deliver solutions to small business and mid-market. It could radically change our business.”

John BaierDir. Product Management

OSISoft

Manufacturing software vendor expands business

Realize new, recurring revenue streams and access to new market segments and geographies. Leverage existing application, development efforts, and skill-sets to take advantage and monetize existing IP. Migrate SQL applications to SQL Azure with familiar tools and painless deployment. Reduce or eliminate infrastructure costs to focus its resources on the core application.

SQL Azure impact on business

http://www.osisoft.com/

http://www.osisoft.com/

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Online applicationsInnovate and implement ideas quickly and easily

“We started out offering traditional websites. Today, customers demand interactive website or web apps that require databases and IT infrastructure. With SQL Azure, we can innovate new ideas for our customers without architecting the and managing the infrastructure.”

Kyle Bailey,

Founder and CTO, E-Cubed

Web agency provides increased functionality.

“When we built Sitemasher, we tried to find a cloud provider that could provide burst scaling, low latency, and global load balancing across datacenters. We’ll move to SQL Azure to avoid these complexities - we would rather focus our resources on our software to keep our “first mover” advantage in the market.”

Phil Calvin

Founder and CTO, Sitemasher

SaaS web platform provider moves to Azure

Low cost of entry and pay-as-you-go pricing make it easy to deploy new projects. Eliminates complexity and speeds time to market. Reduces or eliminates infrastructure costs to allow software provider to focus its resources on the core

application. Scalability, reliability, and load balanced, replicated data centers provide performance on demand


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Custom ApplicationsBuild value in custom applications while reducing costs

“How can we build business in an economy where customers’ IT budgets are shrinking? Our customers are looking for ways to virtualize and consolidate existing apps. Also, smaller departments can’t depend on their downsized IT teams for immediate needs. I truly believe the Azure platform and SQL Azure will help us win that business.”

Herbert LewyGeneral Manager

Infocorp Caribbean

Custom IT firm helps customers reduce costs.

“I ‘m developer , DBA, and most recently a SaaS developer. Suddenly, I am facing a lot of competition as developers look for work. SQL Azure will allow me to leverage my existing skills to move even deeper into the SaaS space and focus more on innovating with data, less with setting up infrastructure.”

Tanzim SaquibSoftware Engineer

Bangladesh

Developer becomes more competitive.

Elimination of complexity of infrastructure makes it easy to deploy new projects quickly. Familiar technologies Windows Azure + SQL Azure allow for painless migration and virtualization of existing

applications. Scalability, reliability, and load balanced, replicated data centers provide performance on demand Custom software developers can take on more projects with higher business value (win the business), offering

a competitive advantage.


$15k/yr

Hardware for SLASLA: geo-scaling, geo-fault tolerant, redundant,

etc.

Infrastructure HardwareServers, Storage

IT ResourcesSpecialized IT resources: system architects

and system administrator

Relational database

Infrastructure softwareServer, virtualization, management

Example: Implementation costs for a new projectImplementation cost for a startup company that offers its software as a service with a hosting company.

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We host our datacenter externally for rackspace, power, and networks” and provide our own servers, storage.

Conclusion: We spent over A HALF million up front in the first year on things that are infrastructure related. With Windows Azure, we could avoided having to pay money until we are actually bringing in revenues for our product.

$30k

$20k

$20k

$50k

Hosting costsPower, racks, and network traffic provided by

hosting company at approx $1,200/mo

•We had to estimate our traffic, storage, bandwidth , and computing power to figure out what to lease, and build out the rest – we needed redundancy, scaling, load balancing, and latency handling.

•We spent $250 for architecture for the SLA we need (to architect the load balancing, redundancy, scaling, latency handling, etc.) and $150k per year to maintain it.

Hardware for SLASLA: geo-scaling, geo-fault tolerant, redundant,

etc.

Infrastructure softwareServer, virtualization, management

$20k

$20k

$50k •Then came the data requirements.

$150k / year + $250k

for system design

$18k/yrWith Azure, we would spend about 18k/year to deliver our solution for our current capacity. We may double or triple that, which would be a good problem!

TraditionalAzure

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Windows Azure Platform PricingPay-as-you-consume pricing

Per database/month$99.99/month

Up to 10 GB DB spaceUp to 100 Query Hrs

Per GB transferred$0.10 GB Ingress$0.15 GB Egress

Per database/month$9.99/month

Up to 1 GB DB spaceUp to 10 Query Hrs

Business Edition BandwidthWeb Edition


Per transaction$0.15/100k

BandwidthMessages

Per GB stored and transactions

$0.15 GB/month$0.01/10k storage

transaction


Per service hour$0.12/hour

Storage BandwidthCompute

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Windows Azure Roadmap

Geo investments

Legacy app migration

Enhanced compliance

SQL Azure data hub

Commercial launch

Geo location

Inter-role communication

Variable VM sizes

Partner/customer hosted Common development

model Integrated management Public/private cloud

portability Security framework SQL Azure BI

SQL Azure Roadmap

SDS Invitation CTP – On-board invitation-only customers + some current

Azure Invitation CTP – On-board early adopters onto the Azure platform

Commercial Availability with Windows Azure in 2009

http://msdn.microsoft.com/en-us/sqlserver/dataservices/default.aspx

SDS InvitationCTP

Azure InvitationCTP

Commercial Availability

(V1)

SDS InvitationCTP

Azure InvitationCTP

Commercial

Availability (V1)

Internal Adoption

MIX ‘09

Mar 09 May 09 Jul 09 Nov 09

Sep 09

Apr 09

Jun 09 Aug 09

Oct 09

TechEd WWPC Migration PDC


Volume licensing“Coordinated purchasing”

Planned for post PDC

Unified purchasing through EA

Introduction to volume discount

Subscription“Value for a

commitment”

Select offers at PDC

Discounts for commitment Plans for payment

predictability

Leveraging SQL Azure for successTwo ways to leverage SQL Azure

Embedded Model Partner embeds SQL Azure into

solution Partner bills for solution + SQL Azure

fees Partner pays Microsoft for SQL Azure

fees Partner receives 4-5% discount

“With partner” model Partner builds solution with SQL Azure Partner bills customer only for partner

application (excluding SQL Azure fees) Customer pays Microsoft for SQL Azure

fees

Consumption“Pay as you go and

grow”

Available at PDC launch

Low barrier to entry and flexibility

Optimized for cloud elasticity

Ways to consume Windows Azure

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Agenda



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Why Microsoft?

Committed to delivering a dependable and scalable cloud computer experience for its partners

Your familiar and trusted environment in the cloud to simplify your transition and leverage your existing skills

The largest network of partners and infrastructure and support to help you succeed

Offers to help you test and transition to the cloud

Microsoft is committed to help you succeed in the cloud:

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Microsoft is committed to the cloudTrust, commitment, and capacity to invest

“IDC sees the launch of the Windows Azure Platform as a first step in a long evolutionary path that customers will take moving them from today’s self-hosted IT to consuming a hybrid of both internally and externally hosted services, and if so desired, could eventually support a fully outsourced model.”

—IDC Insight, Microsoft Unveils Cloud Services Strategy and the Windows Azure Platform: Managing Customer Expectations and Competitive Pressures as Solution Evolves Is Key, Nov 2008, Doc #215034

“Cloud computing is ultimately going to be, do you trust this provider to have more to lose than I have to lose as a company if they mess me up? Microsoft has both the capacity to invest and the willingness to be in that kind of a business and to give that kind of trust assurance to developers and to enterprises,“

Ray Ozzie, Chief Software Architect, Microsoft Corporation

Ozzie on Azure: It all comes down to trust from CNET News.com

http://news.cnet.com/8301-13860_3-10076189-56.html

http://www.news.com/

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Microsoft is building to scale!

2B Live Search queries/month 10B MSN page views/month 30B Live ID authentications/month 240B Messenger messages/month

$500 million per data center 10,000 servers/month

We’re running scale services now

We’re building to run your services

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On-premise

Microsoft Windows Azure

Partner hosted

Microsoft provides the power of choiceIt is not an all or nothing proposition Choose which models are right for your business: on premise, hosted, cloud Deploy your solution anywhere with same tools, infrastructure, and data solution Re-use your existing intellectual property and know-how across all platforms

Deployment models

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Leverage what you already know

Strong Ecosystem of Developers, Applications, & Partners

.NET developers use existing skills

Use familiar tools such as Visual Studio

Built on standards and web protocols such as REST & SOAP

Low/no cost to get started

Best Developer On-ramp

Broad set of developer services

Mix & match services based on the needs of your application

Extensible portfolio of proven applications:

Windows Office Live SharePoint CRM Online

Comprehensive Cloud Platform

Integrate with existing assets such as AD & premises applications

Platform spans mobile, client, server & cloud

Technical depth from proven technologies

Value from Software+Service

s

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Is the Windows Azure Platform Secure?Data Security and Privacy: Myth vs. Reality

Myth

“Concerns about security are overblown. What we have found is that SaaS providers actually offer better data security and better application reliability than in-house operations, because the data centers are up to date with security management and have built-in redundancy."

Beth Enslow, Aberdeen, SaaS Apps Gaining Ground as Implementation, ROI Concerns Dwindle: CRM Buyer

Reality

My data is not protected unless it’s at my location

Location isn’t nearly as important as security measures.

As a rule, most security breaches now originate from within an organization.

Data is regularly stored offsite as a matter of practice.

“Your” security can’t be as good as ours.

We can’t lose control of our customer data.

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Storage servicewill be available/ reachable (connectivity)

Your storage requests willbe processed successfully

All runningroles will be continuously monitored

If role is unhealthy, we will detect and initiate corrective state

Your service is connected and reachable via web

Internet facing roles will have external connectivity

Database is connected to the internet gateway

Availability monitoring every 5-minute interval

.NET Service Bus endpoint willhave external connectivity

Message operation requests willbe processed successfully

Windows Azure Platform Service Guarantee

Role instance monitoring and

restart

Compute connectivity

Database availability

Storage availability

Serviceavailability

>99.95% >99.9%>99.9%Automated Systems

Management

>99.9%

The partner ecosystemWindows Azure Platform Partners

The most comprehensive ecosystem of partners to leverage success with SQL Azure!

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Start now!Comprehensive Resource to help you get started

Sign up for the Partner Quick start portal Sign up for the upcoming SQL Azure CTP (August 2009) here

Get more information about SQL Azure here including the latest news, feature developments and Whitepapers.

Read the SQL Azure FAQs here

Learn about SQL Azure from the community (forums, blogs ) here

Visit MSDN site

https://partner.microsoft.com/US/30000104

http://go.microsoft.com/fwlink/?LinkID=149681&clcid=0x09

http://www.azure.com/

http://www.microsoft.com/azure/faq.mspx#sql



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Technical Appendix

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On premise Hosted Azure

How are Windows Azure different?Windows Azure provide flexibility based on actual resources needed

Hardware

Software

Maintenance

Cost

Companies using traditional hosting must choose carefully when they decide how many servers to rent: too few and they could lose customers, too many and they could pay for resources they don't need. Cloud hosting allows flexibility based on the resources that they actually need.

Requires IT resources to set up and maintain hardware and software

Estimate what you need and pay a fixed “rental” fee.

Pay only for what you consume

Capital expenditure

Requires some IT resources to set up and maintain software

Requires no IT resources to maintain

You own licenseYou own some software and / or lease some software

You consume software as part of package.

On-premise servers, networks, storage + hardware for backup and scaling

All hardware and software is provided as a service.

Basic infrastructure is hosted. May require additional hardware for backup and scaling.

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Why SQL Azure?Same application, same database from on premise to cloud

On premise Hosted SQL Azure

Scalability

Availability

Tenancy

Provisioning

Payment model

Requires IT resources to set up and maintain hardware and software

Dedicated database that scales to the limits of the hosted resource config.

Unlimited, automatic scaling to handle bursts

Dedicated database that scales to the limits of on-premise resources

Requires additional resources above basic hosting configurations

Self managing, self healing with automatic failure detection, failover,

Single-tenant applications developed for on premise.

Single tenant applications are hosted off-premise

Multi tenant applications architected as a service or point solutions

Database needs to be architected, deployed, and maintained

Low friction provisioning – no setup required

Database needs to be provisioned in the hosted configuration

Invest in hardware and database software up front as capital expense

Pay as you consume – “make money before you spend money”

“Lease” the database storage and compute capacity you think you require

Database ChoicesR

esou

rces

Dedicated

Shared

Low High“Friction”/Control

SQL Azure V1 targets scenarios that live in the lower left quadrant

Value Props:100% of API surface areaRoll-your-own HA/DR/scale

Hosted Hosted SQL Server Resource

governance @ VM Security @ DB

Server/OS

On-premise SQL Server or other s/w

on-premise Resource governance @

machine Security @ DB Server/OS

Value Props:Full h/w control – size/scale100% of API surface areaRoll-your-own HA/DR/scale

SQL Azure

Value Props:Auto HA, Fault-ToleranceFriction-free scaleSelf-provisioningSubset of API surface area

Virtual DB server Resource governance @

DB Security @ DB/Virtual

Server