Optimizing IT costs with Cloud. Tarmo Tikerpäe Datacenter SSP Microsoft Corporation
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1 Optimizing IT costs with Cloud Tarmo Tikerpäe Datacenter SSP Microsoft Corporation
2 BENEFITS Speed Scale Economics Cloud Trend: 70% 2 weeks to deliver new services vs months with traditional solution Scale from 30,000 to 250,000 site visitors instantly $25,000 in the cloud would cost $100,000 on premises of CIOs will embrace a cloud-first strategy in 2016 (IDC CIO Agenda webinar) 430B+ Windows Azure AD authentications 280% year-over-year database growth in Windows Azure 50% of Fortune 500 use Windows Azure WINDOWS AZURE ADOPTION 2
3 economics usage based automated elastic managed always up. always on.
4 SMB: >25x public cloud benefit Enterprise: ~10x public cloud benefit Public cloud steady state pricing Source: Microsoft
5 ENTERPRISE CLOUD-SCALE N+1 FANS HOT-PLUGGABLE ENTERPRISE SAS HDDs Example: Example shown for analysis only CLOUD SERVER ENTERPRISE SERVER COST OPTIMIZED MOTHERBOARD COMMODITY HDD s NO HOT-PLUG 2xCPU $700 $700 64GB DRAM $800 $800 HDDs $400 (4xSATA 7.2K 3.5 ) $3350 (16x SAS 10K 2.5 ) RAID card $0 $800 PSU $100 (SHARED) $300 (DUAL) HALF-WIDTH SERVER CHASSIS: 2/U FANS/PSU SHARED ACROSS SERVER BLADES DUAL REDUNDANT POWER SUPPLIES MB+Chassis $600 $900 TOTAL COST $2600 $6850 Primary Cost drivers Data protection (RAID + enterprise grade HDDs) Dedicated infrastructure (fans, PSU, chassis) HARDWARE RAID CARD FULL-WIDTH DISCRETE SERVER CHASSIS: 1/U
6 Understanding Power Usage Effectiveness (PUE) metric: datacenter efficiency PUE = Total Facility Power / IT Equipment Power Building Load Demand from Grid Power (Switch Gear, UPS, Battery Backup, etc.) Cooling (Chillers, CRACs, etc.) IT Load Demand from Servers, Storage, Telecom Equipment, etc.
7 Datacenter Future Generation 1 Generation 2 Generation 3 Generation 4 Generation PUE PUE PUE PUE PUE Colocation Density Containment Modular Integrated Server Capacity 20 year Technology Rack Density & Deployment Minimized Resource Impact Containers, PODs Scalability & Sustainability Air & Water Economization Differentiated SLAs ITPACs & Colocations Reduced Carbon Right-Sized Faster Time-to-Market Outside Air Cooled Integrated System Resilient Software Common Infrastructure Operational Simplicity Flexible & Scalable
8 Energy In = Heat Out cool air & water
9 Compute Inactivity Period On and Off t Growing Fast Unpredictable Bursting Predictable Bursting 24x7 Steady Capacity Needed (Max + 20%) Save 20-30% Capacity Needed (Max + 20%) S M T W T F S Save 60-80% J F M A M J J A S O N D On and Off (30%) Growing Fast (15%) Unpredictable Bursting (25%) Predictable Bursting (20%) 24x7 Steady (10%)
10 An Example: Windows Azure Storage
11 Server Design Designs optimized for minimizing MTBF Fault Domain: Discrete Server SKU Depends on % power availability & Hardware-based redundancy Designs optimized for minimizing MTTR Fault Domain: Determined by Software Depends on 99.9% power availability & Software-based redundancy Standardization: Separate SKU per workload type Higher provisioning and support costs Limited purchase economies of scale Systems Management: Proprietary, nonscalable Standardization: Reduced SKUs Optimized at DC level Hardware supply chain leverage Simplified capacity planning Systems Management: Automated and Scalable
12 at cloud-scale At cloud scale, reliability is engineered into the application, not the infrastructure Re-examine design and operation Cluster optimized failure domains Balance preventive maintenance against fail small Rationalize full stack availability Map end-user SLA to availability model Reduce hardware redundancy $/{perf}/kw-mo against revenue, profit, risk
13 Infrastructure compliance capabilities (as of January 2014) ISO / IEC 27001:2005 Certification SSAE 16/ISAE 3402 SOC 1, AT101 SOC 2 and 3 Attestation HIPAA/HITECH PCI Data Security Standard Certification FISMA Certification & Accreditation FedRAMP P-ATO by the Joint Authorization Board Various State, Federal, and International Privacy Laws (95/46/EC aka EU Data Protection Directive; California SB1386; etc.)
14 Predictable revenue stream smoothes out highs and lows Single controlled operating environment saves on costs Ability to scale rapidly saves on costs Ability to broaden market reach increased revenues Faster time to market revenue generated sooner Shortened sales cycle revenue generated sooner Ongoing relationship with customer opportunity for increased revenues over customer lifetime
15 Pure Cloud HYBRID On-Premise Market Reality
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20 RPO RPO RPO
21 Cost calculation principles
22 Microsoft datacenter resources Microsoft Datacenters Web Site & Team Blogs microsoft.com/datacenters MS Azure Trust Center windowsazure.com/trustcenter MS Azure windowsazure.com
23 2014 Microsoft Corporation. All rights reserved. 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.
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