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Cloud Economics

Rethinking CAPEX and OPEX in a cloud-centric world? Information technology is undergoing a seismic shift towards the cloud, a disruption we believe is as game-changing as the transition from mainframes to client/server. This shift will impact every player in the IT world, from service providers and system architects, to developers and end users. We are excited about this transformation and the vast improvements in efficiency, agility and innovation it will bring. Join us for this on-demand webcast and learn how to calculate Total Cost of Ownership by transitioning to Microsoft Azure for your company

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Cloud Economics

  1. 1. Nuri Cankaya Microsoft
  2. 2. Digital transformation
  3. 3. Going Digital
  4. 4. S M T W T F S Capacity Needed (Max + 20%) J F M A M J J A S O N D Capacity Needed (Max + 20%) t Compute Inactivity Period On and Off Growing Fast Unpredictable Bursting Predictable Bursting 24x7 Steady Save 20-30% Save 60-80% On and Off (30%) Growing Fast (15%) Unpredictable Bursting (25%) Predictable Bursting (20%) 24x7 Steady (10%)
  5. 5. Elastic scale delivers just-in- time capacity. Pay-per-use keeps costs low. Self-service fuels productivity.
  6. 6. • How quickly can you turn off resources no longer in use? • How small can you get your base footprint? • Are you leveraging caching as much as you can? Elastic scale: Scaling down is key. • Discrete component scaling drives efficiency. • Autoscaling cloud services often costs less. • Where traffic goes affects cost. What you scale matters. • Some cloud services have off-peak pricing concepts. • Some cloud services have better costs for certain services/uses. When and where you do things matters.
  8. 8. Openness and flexibility Data and intelligence Trust Application innovation
  9. 9. 42Azure regions Trusted Intelligent Hybrid Productive Learn more: Microsoft.com/datacenter
  10. 10. Trust Detect and mitigate threats The most trusted and compliant cloud Achieve global scale, in local regions
  11. 11. HIPAA / HITECH Act Moderate JAB P-ATO FIPS 140-2 FERPA DoD DISA SRG Level 2 ITAR CJIS GxP 21 CFR Part 11 IRS 1075Section 508 VPAT ISO 27001 SOC 1 Type 2 ISO 27018 CSA STAR Self-Assessment Singapore MTCS UK G-Cloud Australia IRAP/CCSL FISC Japan China DJCP New Zealand GCIO China GB 18030 EU Model Clauses ENISA IAF Argentina PDPA Japan CS Mark Gold SP 800-171 China TRUCS Spain ENS PCI DSS Level 1 CDSA Shared Assessments MPAA Japan My Number Act FACT UK High JAB P-ATO GLBA DoD DISA SRG Level 4 MARS-E FFIEC ISO 27017 SOC 2 Type 2 SOC 3 India MeitY Canada Privacy Laws Privacy Shield ISO 22301 Germany IT Grundschutz workbook Spain DPA CSA STAR Certification CSA STAR Attestation HITRUST IG Toolkit UK Trust The most trusted and compliant cloud GLOBALUSGOVINDUSTRYREGIONAL
  12. 12. Openness and flexibility Data and intelligence Trust Application innovation
  13. 13. Openness and flexibility Build and run open source solutions Deploy the cloud on-premises Extend on-premises with True Hybrid
  14. 14. Openness and flexibility
  15. 15. Common Identity Compatible Data Infrastructure Management & Security Openness and flexibility Uniform Development
  16. 16. Azure Site Recovery Azure StorSimple SQL Server Stretch DB Azure Active Directory App Service Web | Mobile Logic Apps | API Apps Azure Backup Operations Management Suite Openness and flexibility CloudUsers Data Management Apps Infrastructure
  17. 17. Openness and flexibility Data and intelligence Trust Application innovation
  18. 18. Build apps faster and easier Deliver native mobile apps seamlessly Manage applications proactively Application innovation
  19. 19. Lift and shift Improved DevOps Hyperscale (e.g. IOT) Third-party frameworks Application innovation
  20. 20. Web and mobile Event-driven microservices LOB integration and hybrid apps No-code apps Application innovation
  21. 21. Application innovation
  22. 22. Code Repository Backlog Build + Deploy Monitor and improve Automated Testing User Testing User Authentication Push Notifications Cloud and Offline Data Application innovation
  23. 23. Openness and flexibility Data and intelligence Trust Application innovation
  24. 24. Support business strategy with any data Learn and engage with artificial intelligence Predict and respond proactively Application innovation
  25. 25. Traditional data Web data Big data Data and intelligence
  26. 26. Demand forecasting Predictive maintenance Vehicle telemetry ClientsData ML STUDIO API Modeling & APIs Data and intelligence Traditional data Web data Big data
  27. 27. SPEECH Convert spoken audio to text Convert text to spoken audio Extract intent of user Give me directions to the closest ATM Speech-to-Text and Text-to-Speech Service VISION What is in the image? Computer Vision Category People; 1 face Adult / Racy? False / True Dominant colors Accent color KNOWLEDGE Top publications in AI? Knowledge Exploration Service SEARCH Search for ‘cute kittens’ Bing Search LANGUAGE Play today’s Daily Show Natural Language Processing Data and intelligence
  28. 28. PROBLEM Huge amount of data Costly maintenance scheduling CHALLENGE Remote sensor reporting Predictive analysis SOLUTION Azure IoT Suite Machine Learning Power BI IMPACT Reduced maintenance costs Improved fuel efficiency Data and intelligence
  29. 29. Openness and flexibility Data and intelligence Trust Application innovation
  30. 30. This is a sample calculations I made using the Azure TCO Calculator comparing running a few servers on Azure against On-Prem. We mainly provided the requirements of the servers and other additional info like bandwidth
  31. 31. We can see the difference clearly as we have 79% savings if we run these servers on Azure. we can see that a spike happens in year 3 where old hardware costs a lot to maintain or replace.
  32. 32. • As we can see that the TCO provide you with a breakdown on the following components: Compute, Data center, Networking, Storage and IT Labor. • It also provide you with two options if you want to go for EA or Web-Direct. • The TCO can be customized for prices and can dig down on a deep level to provide the most accurate estimates
  33. 33. 750 million 194 billion 188 billion 340 billion >90% of Fortune 500 use Microsoft Cloud