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“We’re All In”
Ray Ozzie
“Betting our company”
Steve Ballmer
70 % of Microsoft
employees are doing
something cloud-based or
cloud-inspired.
90% in 1 year
“The cloud fuels Microsoft and Microsoft fuels the cloud.”
Jump Start: Azure

----> Jog around the Cloud
Brian Blanchard – Chief Architect/CIO, HyperVize
Before we get started
• Azure Environment
– Install Visual Studio 2008, 2010, or 2010 express
– Install the Azure SDK
– Install the Azure training kit
• Includes labs, demos, source code, & snippets

• Temporary version
– If you just want to try it out, copy the VM. All of
the above on Win7

• Thumb drives floating around the room. See
me after session if you miss it.
What is the Cloud?
•

Cloud Services are any information technology
services executed outside of your traditional network
infrastructure.

•

These services accumulatively are referred to as The
Cloud.

•

Characteristics:
– On-demand self-service
– Ubiquitous network access
– Location independent resource pooling
– Rapid elasticity
– Measured Service
Simple Definition?
It’s another place to run your code. Choose
between on-premises, hosting, or the cloud
based on your needs.
Why do we care?
• “We’re All In” Ray Ozzie, Chief Architect
• “Betting our company” Steve Ballmer, CEO
• 2010 World Partner Conference taught the world that “The
cloud fuels Microsoft and Microsoft fuels the cloud”
• 70% of all Microsoft employees are now working in or on the
cloud.
– Soon this will be 90%
• A few years from now, there will be no development without
the cloud.
What’s in the Cloud

Office
Voice
Management
What’s in the Cloud? Cont…
NEEDS
(2004)
2.4B emails/day

(1996)
400M+ active
users

(1997)
550M
users/mth

(1999)
2B queries/mth

(1998)
Single largest web
service - x100M
users

(2001)
20M+ active
users

(1999)
320M+ active
users

BOTTOM LINE: Microsoft has been subtly transforming into one of the largest and most
mature cloud services providers in the world. And it’s far from over!
Components of Azure
• DevFabric
• Roles
– Web & Worker

• Azure Storage
– Tables, Queues, & blobs

• SQL Azure
Components of Azure
The Fabric Controller automates load
balancing and computes resource scaling
Security and Control Features include
storage encryption, access
authentication, and over-the-wire
encryption using HTTPS. Industry
certification is part of the Windows
Azure roadmap.

Computation Executed in one of
two roles
Web Role – A web application
Worker Role – WCF, Web
Services, SOA, Etc…

Storage
Two Types:
Azure Storage: Tables, Queues, &
Blogs – Non-relational data
SQL Azure: SQL in the Cloud

Geographically distributed, state-ofthe-art data centers host your
applications and data, internetaccessible from everywhere you
choose to allow.
Cloud Storage
Blobs

Tables

Queues

The types of Azure Storage
• Blobs – A file system
• Tables – Hierarchical Data Tables
• Schema Free - Entity Storage

• Queues – Asynchronous Messaging
Compute in Windows Azure
GOAL:
SCALABILITY
Scale out by replicating instances as
needed.

Two instance types: Web Role & Worker Role
Windows Azure applications are built with
web role instances, worker role instances,
or a combination of both.

Allow applications to scale
user and compute processing
independently.

Each instance runs on its
own VM (virtual
machine), replicated as
needed.
DevFabric – The Local Cloud
The DevFabric is a local simulation of the real
fabric and fabric controller.
•
•
•
•

Based on 90% of the real fabric code
Uses a local SQL instance to simulate storage
Only way to debug your application
Use the DevFabric UI to watch your processes
What caused this change?
What’s so special about the cloud?

SHARING "PERISHABLE AND
INTANGIBLE" COMPUTING
PAY FOR ACCESS
– NOT OWNERSHIP –
OF IT RESOURCES

POWER AMONG MULTIPLE
TENANTS OPTIMIZES
COSTS FOR ALL

IMPROVE TIME-TO-MARKET FOR
NEW APPLICATIONS, SERVICES, AND
SOLUTIONS
BETTER ALIGNMENT WITH BUSINESS
NEEDS FOR EXISTING APPS

STAFF AND PLAN FOR TYPICAL USAGE. SCALE
TO THE CLOUD AT PEAK TIMES – PLANNED OR
UNPLANNED
End of quarter reporting, tax-time,
payroll, slashdot effect
Only 2 reasons to use the cloud

Improve
Strategery

Improve
Bottom
Line
The issue with traditional/on-premise IT

IT CAPACITY

“Under-supply“
of capacities

Barrier for
innovations

Allocated
IT-capacities

“Waste“ of
capacities

Load
Forecast

Fixed cost of
IT-capacities

Actual Load

TIME
However, in a Cloud View

Allocated IT
capacities

Load
Forecast

IT CAPACITY

No “under-supply“

Reduction of
“over-supply“

Possible
reduction of
IT-capacities
in case of
reduced load

Reduction
of initial
investments

Actual Load
Another Perspective: CIO/CFO Terms
• Strategic Growth
– Common View: If a task doesn’t deliver strategic value -> Outsource it!
– Company & IT can focus on delivering services, not servers
– Deliver strategic value through technology – Do it better, faster, and cheaper

• Shift IT expenses from CapEx to OpEx
– CapEx (Capital Expenditure)
• Black hole IT or IT as a cost center

– OpEx (Operational Expenditure)
• Transparent IT or IT as a strategic partner

• Financial growth through IT’s TCO
– Total cost of ownership
What’s it cost?
Windows Azure Per Use Pricing
COMPUTE
Virtual Machine instances
Load balancers, routers, etc.
Relational DB instances
Automated service management
- Fabric controller operations
Load balancer programming

PRICE
$0.12 / hour per size unit

STORAGE
Blob Storage
Table Storage
Multiple replicas

PRICE
$0.15 / GB stored / month
Storage transactions: $0.01 /
10k

BANDWIDTH
Ingress/Egress (to/from
internet only)

PRICE
Bandwidth: $0.10 IN; $0.15
OUT; / GB
What’s it cost?
Windows Azure Pre-Paid Pricing
Development
Accelerator Core
750 Hours (small compute)
10GB Storage
1,000,000 transactions
7 GB in / 14 GB out
1,000,000 AppFabric transactions

PRICE
$59.95 / Mo
6 Mo commitment term
54% off normal rate

Development
Accelerator Extended
Adds a 10GB SQL Azure DB

SQL Azure
Development
Accelerator Core
Single 10GB Sql Azure
Database

PRICE
$109.95
6 Mo commitment term
52% off

PRICE
$74.95 / Mo
6 Mo Commitment Term
25% off
Trial costs
• MSDN Subscription or BizSpark
– 16 Months of Azure
How do you get started in the
Cloud?
• Investigate your System Portfolio
• Find pain points & distractions
• Find low hanging fruit
• Lets try it together
Three paths to choose from…

Splot!

V.Next ==
V.cloud

Hybrid
Take a look at your system portfolio.

You have one right?
Look for
pain or
distractions
Find Low Hanging Fruit
Build vs. Buy

Buy

Big Pharmaceutical Example
“Packaged”
Application

Hosted
“Packaged”

“Packaged”
using cloud

“Software as a
Service”

ERP
CRM
Email

“Home Built”
Application

“Too costly to run this
myself, but I’ve made too many
customizations”
Hosted
“Home Built”

“Home Built”
using cloud

“Platform as a
Service”

Hoster

Cloud

Vendor

Build

HR System
Molecule Research
Clinical Trial

On Premise
Build vs. Buy

Buy

Big Pharmaceutical Example
“Packaged”
Application

Hosted
“Packaged”

“Packaged”
using cloud

“Software as a
Service”

ERP
CRM
Email

“Home Built”
Application

“CRM and Email are commodity
services – They have no
customizations, and it’s cheaper
for someone else to run these”
Hosted
“Home Built”
“Home Built”

using cloud

“Platform as a
Service”

Hoster

Cloud

Vendor

Build

HR System
Molecule Research
Clinical Trial

On Premise
Build vs. Buy

Buy

Big Pharmaceutical Example
“Packaged”
Application

“Packaged”
using cloud

“Software as a
Service”

ERP
CRM
Email

“Home Built”
Application
HR System

Build

Hosted
“Packaged”

Molecule Research
Clinical Trial

On Premise

Hosted afford to maintain this
“Home Built”
“I can’t
“Home HR application using cloud
old Built”
written in VB
– it’s driving me mad!”

“Platform as a
Service”

“…but due to regulatory issues, I
cannot store my HR data offpremise”

Hoster

Cloud

Vendor
Build

Build vs. Buy

Buy

Big Pharmaceutical Example
“Packaged”
Application

Hosted
“Packaged”

“Packaged”
using cloud

“Software as a
Service”

ERP
CRM
Email

HR System

“Home Built”
Application

Molecule Research
Clinical Trial

On Premise

Hosted
“Home Built”

“Home Built”
using cloud

“Platform as a
Service”

“I wish I had access to cheaper
compute and storage when I
need it”

Hoster

Cloud

Vendor
Build

Build vs. Buy

Buy

Big Pharmaceutical Example
“Packaged”
Application

Hosted
“Packaged”

“Packaged”
using cloud

“Software as a
Service”

ERP
CRM
Email

HR System

“Home Built”
Application

Hosted
“Home Built”

“Home Built”
using cloud

“Platform as a
Service”

Molecule Research
Clinical Trial

On Premise

“THIS is where I want to spend
my IT resources – I’m going to
double down on this
application!”
Hoster

Cloud

Vendor
Next Steps – Getting Started
• Install Visual Studio 2008, 2010, or 2010
express
• Install the Azure SDK
• Install the Azure training kit
– Includes labs, demos, source code, & snippets

• If you just want to try it out, copy the VM
floating around the room.
Learn more at the STL DODN
• Day 1:
– 10:20 – Websites in the cloud – Blanchard
– 3PM - Azure & ASP.Net MVC2 – Dall

• Day 2:
– 12:40 – Secure Cloud Storage - Ayers
– 1:50 – DemoFest - Benkovich

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Azure JumpStart

  • 1. “We’re All In” Ray Ozzie “Betting our company” Steve Ballmer 70 % of Microsoft employees are doing something cloud-based or cloud-inspired. 90% in 1 year “The cloud fuels Microsoft and Microsoft fuels the cloud.”
  • 2. Jump Start: Azure ----> Jog around the Cloud Brian Blanchard – Chief Architect/CIO, HyperVize
  • 3. Before we get started • Azure Environment – Install Visual Studio 2008, 2010, or 2010 express – Install the Azure SDK – Install the Azure training kit • Includes labs, demos, source code, & snippets • Temporary version – If you just want to try it out, copy the VM. All of the above on Win7 • Thumb drives floating around the room. See me after session if you miss it.
  • 4. What is the Cloud? • Cloud Services are any information technology services executed outside of your traditional network infrastructure. • These services accumulatively are referred to as The Cloud. • Characteristics: – On-demand self-service – Ubiquitous network access – Location independent resource pooling – Rapid elasticity – Measured Service
  • 5. Simple Definition? It’s another place to run your code. Choose between on-premises, hosting, or the cloud based on your needs.
  • 6. Why do we care? • “We’re All In” Ray Ozzie, Chief Architect • “Betting our company” Steve Ballmer, CEO • 2010 World Partner Conference taught the world that “The cloud fuels Microsoft and Microsoft fuels the cloud” • 70% of all Microsoft employees are now working in or on the cloud. – Soon this will be 90% • A few years from now, there will be no development without the cloud.
  • 7. What’s in the Cloud Office Voice Management
  • 8. What’s in the Cloud? Cont… NEEDS (2004) 2.4B emails/day (1996) 400M+ active users (1997) 550M users/mth (1999) 2B queries/mth (1998) Single largest web service - x100M users (2001) 20M+ active users (1999) 320M+ active users BOTTOM LINE: Microsoft has been subtly transforming into one of the largest and most mature cloud services providers in the world. And it’s far from over!
  • 9. Components of Azure • DevFabric • Roles – Web & Worker • Azure Storage – Tables, Queues, & blobs • SQL Azure
  • 10. Components of Azure The Fabric Controller automates load balancing and computes resource scaling Security and Control Features include storage encryption, access authentication, and over-the-wire encryption using HTTPS. Industry certification is part of the Windows Azure roadmap. Computation Executed in one of two roles Web Role – A web application Worker Role – WCF, Web Services, SOA, Etc… Storage Two Types: Azure Storage: Tables, Queues, & Blogs – Non-relational data SQL Azure: SQL in the Cloud Geographically distributed, state-ofthe-art data centers host your applications and data, internetaccessible from everywhere you choose to allow.
  • 11. Cloud Storage Blobs Tables Queues The types of Azure Storage • Blobs – A file system • Tables – Hierarchical Data Tables • Schema Free - Entity Storage • Queues – Asynchronous Messaging
  • 12. Compute in Windows Azure GOAL: SCALABILITY Scale out by replicating instances as needed. Two instance types: Web Role & Worker Role Windows Azure applications are built with web role instances, worker role instances, or a combination of both. Allow applications to scale user and compute processing independently. Each instance runs on its own VM (virtual machine), replicated as needed.
  • 13. DevFabric – The Local Cloud The DevFabric is a local simulation of the real fabric and fabric controller. • • • • Based on 90% of the real fabric code Uses a local SQL instance to simulate storage Only way to debug your application Use the DevFabric UI to watch your processes
  • 14. What caused this change? What’s so special about the cloud? SHARING "PERISHABLE AND INTANGIBLE" COMPUTING PAY FOR ACCESS – NOT OWNERSHIP – OF IT RESOURCES POWER AMONG MULTIPLE TENANTS OPTIMIZES COSTS FOR ALL IMPROVE TIME-TO-MARKET FOR NEW APPLICATIONS, SERVICES, AND SOLUTIONS BETTER ALIGNMENT WITH BUSINESS NEEDS FOR EXISTING APPS STAFF AND PLAN FOR TYPICAL USAGE. SCALE TO THE CLOUD AT PEAK TIMES – PLANNED OR UNPLANNED End of quarter reporting, tax-time, payroll, slashdot effect
  • 15. Only 2 reasons to use the cloud Improve Strategery Improve Bottom Line
  • 16. The issue with traditional/on-premise IT IT CAPACITY “Under-supply“ of capacities Barrier for innovations Allocated IT-capacities “Waste“ of capacities Load Forecast Fixed cost of IT-capacities Actual Load TIME
  • 17. However, in a Cloud View Allocated IT capacities Load Forecast IT CAPACITY No “under-supply“ Reduction of “over-supply“ Possible reduction of IT-capacities in case of reduced load Reduction of initial investments Actual Load
  • 18. Another Perspective: CIO/CFO Terms • Strategic Growth – Common View: If a task doesn’t deliver strategic value -> Outsource it! – Company & IT can focus on delivering services, not servers – Deliver strategic value through technology – Do it better, faster, and cheaper • Shift IT expenses from CapEx to OpEx – CapEx (Capital Expenditure) • Black hole IT or IT as a cost center – OpEx (Operational Expenditure) • Transparent IT or IT as a strategic partner • Financial growth through IT’s TCO – Total cost of ownership
  • 19. What’s it cost? Windows Azure Per Use Pricing COMPUTE Virtual Machine instances Load balancers, routers, etc. Relational DB instances Automated service management - Fabric controller operations Load balancer programming PRICE $0.12 / hour per size unit STORAGE Blob Storage Table Storage Multiple replicas PRICE $0.15 / GB stored / month Storage transactions: $0.01 / 10k BANDWIDTH Ingress/Egress (to/from internet only) PRICE Bandwidth: $0.10 IN; $0.15 OUT; / GB
  • 20. What’s it cost? Windows Azure Pre-Paid Pricing Development Accelerator Core 750 Hours (small compute) 10GB Storage 1,000,000 transactions 7 GB in / 14 GB out 1,000,000 AppFabric transactions PRICE $59.95 / Mo 6 Mo commitment term 54% off normal rate Development Accelerator Extended Adds a 10GB SQL Azure DB SQL Azure Development Accelerator Core Single 10GB Sql Azure Database PRICE $109.95 6 Mo commitment term 52% off PRICE $74.95 / Mo 6 Mo Commitment Term 25% off
  • 21. Trial costs • MSDN Subscription or BizSpark – 16 Months of Azure
  • 22. How do you get started in the Cloud? • Investigate your System Portfolio • Find pain points & distractions • Find low hanging fruit • Lets try it together
  • 23. Three paths to choose from… Splot! V.Next == V.cloud Hybrid
  • 24. Take a look at your system portfolio. You have one right?
  • 27. Build vs. Buy Buy Big Pharmaceutical Example “Packaged” Application Hosted “Packaged” “Packaged” using cloud “Software as a Service” ERP CRM Email “Home Built” Application “Too costly to run this myself, but I’ve made too many customizations” Hosted “Home Built” “Home Built” using cloud “Platform as a Service” Hoster Cloud Vendor Build HR System Molecule Research Clinical Trial On Premise
  • 28. Build vs. Buy Buy Big Pharmaceutical Example “Packaged” Application Hosted “Packaged” “Packaged” using cloud “Software as a Service” ERP CRM Email “Home Built” Application “CRM and Email are commodity services – They have no customizations, and it’s cheaper for someone else to run these” Hosted “Home Built” “Home Built” using cloud “Platform as a Service” Hoster Cloud Vendor Build HR System Molecule Research Clinical Trial On Premise
  • 29. Build vs. Buy Buy Big Pharmaceutical Example “Packaged” Application “Packaged” using cloud “Software as a Service” ERP CRM Email “Home Built” Application HR System Build Hosted “Packaged” Molecule Research Clinical Trial On Premise Hosted afford to maintain this “Home Built” “I can’t “Home HR application using cloud old Built” written in VB – it’s driving me mad!” “Platform as a Service” “…but due to regulatory issues, I cannot store my HR data offpremise” Hoster Cloud Vendor
  • 30. Build Build vs. Buy Buy Big Pharmaceutical Example “Packaged” Application Hosted “Packaged” “Packaged” using cloud “Software as a Service” ERP CRM Email HR System “Home Built” Application Molecule Research Clinical Trial On Premise Hosted “Home Built” “Home Built” using cloud “Platform as a Service” “I wish I had access to cheaper compute and storage when I need it” Hoster Cloud Vendor
  • 31. Build Build vs. Buy Buy Big Pharmaceutical Example “Packaged” Application Hosted “Packaged” “Packaged” using cloud “Software as a Service” ERP CRM Email HR System “Home Built” Application Hosted “Home Built” “Home Built” using cloud “Platform as a Service” Molecule Research Clinical Trial On Premise “THIS is where I want to spend my IT resources – I’m going to double down on this application!” Hoster Cloud Vendor
  • 32. Next Steps – Getting Started • Install Visual Studio 2008, 2010, or 2010 express • Install the Azure SDK • Install the Azure training kit – Includes labs, demos, source code, & snippets • If you just want to try it out, copy the VM floating around the room.
  • 33. Learn more at the STL DODN • Day 1: – 10:20 – Websites in the cloud – Blanchard – 3PM - Azure & ASP.Net MVC2 – Dall • Day 2: – 12:40 – Secure Cloud Storage - Ayers – 1:50 – DemoFest - Benkovich