2010 Microsoft Corporation. All rights reserved. Microsoft. Page 1

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3 IT Evolution Mainframe Client Server Web Cloud

5 What Is Cloud Computing? Cloud Computing: App and Infrastructure over Internet Software as a Service: Applications over the Internet Utility Computing: Pay-as-You-Go Datacenter Hardware and Software Three New Aspects to Cloud Computing The Illusion of Infinite Computing Resources Available on Demand The Elimination of an Upfront Commitment by Cloud Users The Ability to Pay for Use of Computing Resources on a Short-Term Basis as Needed 2010 Microsoft Corporation. All rights reserved. Microsoft. Page 5

6 Economies of Scale and App Model Economies of Scale for Humongous Datacenters Electricity Network Operations Hardware Put Datacenters at Cheap Power Put Datacenters on Main Trunks Standardize and Automate Ops Containerized Low-Cost Servers 5 to 7 Times Reduction in the Cost of Computing App Model for Utility Computing Low-Level Close to Physical Hardware Windows Azure.NET, PHP, Python Support High-Level App Specific Traditional Web App Model Something New??? User Controls Most of Stack More Constraints on User Stack Constrained Stateless/Stateful Tiers??? Hard to Auto Scale and Failover Auto Provisioning of Stateless App Auto Scaling and Auto High-Availability??? Constraints on App Model Offer Tradeoffs Lots of Ongoing Innovation 2010 Microsoft Corporation. All rights reserved. Microsoft. Page 6

7 Elasticity, Risk, and User Incentives Services Will Prefer Utility Computing to a Private Cloud When: Demand Varies over Time Provisioning for Peak Leads to Underutilization at Other Times Pay by the Hour (Even if the Hourly Rate is Higher) Demand Unknown in Advance Web Startup May Experience a Huge Spike If It Becomes Popular Pay as You Go Does Not Require Commitment in Advance 2010 Microsoft Corporation. All rights reserved. Microsoft. Page 7

8 Elasticity of Resources in Cloud Computing Cloud Computing: Add or Remove Resources as Needed One Server at a Time Lead Time a Few Mins. Real World Server Utilization Is 5% to 20% Many Services Peak Exceeds Average by a Factor of 2 to 10 Most Provision for Peak Painful to Under-Provision (Lost Customers) Provisioning for Peak Without Elasticity, We Waste Resources (Shaded Areas) During Non-Peak Times 2010 Microsoft Corporation. All rights reserved. Microsoft. Page 8

9 Shifting Risk to the Cloud Provider Example #1: Animoto When Launched Surged from 50 Servers to 3500 in 3 Days Traffic Doubled Every Twelve Hours for Three Days After Peak, Traffic Fell to Well Below the Peak Example #2: Target.Com Large Retailer ECommerce Site Run by Amazon Black Friday (Nov 28 th, 2008) Many ECommerce Sites Failed Target and Amazon Slower by Only About 50% Cloud Computing Transfers Many Risks to the Cloud Provider Assuming These Risks Allows the Cloud Provider to Change More This Is OK! UserHours cloud (revenue Cost cloud ) Cost datacenter UserHours datacenter (revenue Utilization ) Over/Under Provisioning Affects the Datacenter Utilization Which Affects Cost Tradeoffs 2010 Microsoft Corporation. All rights reserved. Microsoft. Page 9

10 Cloud Is Mostly Driven by Economics Economics of Cloud Computing Are Very Attractive to Some Users Cloud Computing Will Track Cost Changes Better than In-House Predicting Application Growth Hard Investment Risks May Be Reduced In-House, You Must Provision for Peak 2010 Microsoft Corporation. All rights reserved. Microsoft. Page 10

11 Compute Compute Compute Compute Workload Patterns Optimal for Cloud Inactivity Average Period Usage Average Usage Time Time Average Usage Time Average Usage Time 2010 Microsoft Corporation. All rights reserved. Microsoft. Page 11

12 Defining Cloud Services A standardized IT capability, such as software, app platform, or infrastructure, delivered via Internet technologies in a pay-per-use and self-service way. How To Message "Cloud" Offerings And Not Get Lost In The Fog, Forrester Research, Inc., July Microsoft Corporation. All rights reserved. Microsoft. Page 12

14 Classifying Public Cloud Platform Infrastructure as a Service (IaaS) Developers create virtual machines (VMs) from a public cloud provider They pay rent for the VMs and have administrative control over them They are responsible for the software &licenses they install in the VMs Platform as a Service (PaaS) Developers provide an application which the Platform runs Platform provides tools and APIs to create/run the application Application is built using Platform modules: database, authentication, management etc 2010 Microsoft Corporation. All rights reserved. Microsoft. Page 14

15 A Spectrum of Application Less Constrained Closer to the Metal VMs Look Like Hardware No Limit on App Model User Must Implement Scalability and Failover Less Automation Models Constraints in the App Model Microsoft Azure Use existing skills/tools.net, Visual Studio, Eclipse, Python, PHP Choice of Language Some Auto Failover/ Scale (but needs declarative application properties) Automated Management Services More Constrained High-Level Traditional Web Apps Auto Scaling/Provisioning More Automation Which Model Will Dominate?? Analogy: Programming Languages and Frameworks Low-Level Languages (C/C++) Allow Fine-Grained Control Building a Web App in C++ Is a Lot of Cumbersome Work ASP.Net or Ruby-on-Rails Hides the Mechanics but Only If You Follow their abstractions High-Level Languages and Frameworks Can Be Built on Lower-Level More-Constrained Clouds May Be Built on Less-Constrained Ones 2010 Microsoft Corporation. All rights reserved. Microsoft. Page 15

16 Cloud Application Development The Power of Choice Extend existing On-Premise Application Deploy Complete Application in the Cloud Compose New Application from Cloud Services 2010 Microsoft Corporation. All rights reserved. Microsoft. Page 16

17 The Windows Azure Platform Windows Azure is an internet-scale cloud services platform hosted in Microsoft data centers around the world, proving a simple, reliable and powerful platform for the creation of web applications and services Microsoft Corporation. All rights reserved. Microsoft. Page 17

19 Committed to Platform Interoperability In the last year, Microsoft has continued to deliver on its commitment to interoperability with many releases including: ZENDFRAMEWORK

20 Azure Monthly Service Level Agreements Compute connectivity Storage availability Service bus and access control availability

22 Windows Azure Purchasing Options CONSUMPTION Pay as you go and grow SUBSCRIPTION Value for a commitment VOLUME LICENSING Coordinated purchasing Low barrier to entry and flexibility Optimized for cloud elasticity Discounts for commitment Plans for payment predictability Unified purchasing through EA Introduction to volume discounts 2010 Microsoft Corporation. All rights reserved. Microsoft. Page 22

23 Windows Azure Instance Sizes Variable instance sizes to handle complex workloads of any size Small Medium Large X Large $0.12 per service hour $0.24 per service hour $0.48 per service hour $0.96 per service hour Unit of Compute Defined Equivalent compute capacity of a 1.6Ghz processor (on 64bit platform) Small Medium Large X Large 1.6 GHz (moderate IO) 2 x 1.6 GHz (high IO) 4 x 1.6 GHz (high IO) 8 x 1.6 GHz (high IO) 1.75 GB Memory 250 GB Instance Storage 3.50 GB Memory 500 GB Instance Storage 7 GB Memory 1000 GB Instance Storage 14 GB Memory 2000 GB Instance Storage 2010 Microsoft Corporation. All rights reserved. Microsoft. Page 23

24 Utility Computing: It s Happening! Cloud Provider s View Cloud User s View Cloud Computing: High-Margin or Low-Margin Business? Implications of Cloud:

25 Cloud Computing: Apps Delivered as Services over the Internet and the Datacenter Hardware and Software Providing Them The Economics Are Changing towards Cloud Computing The Application Model for Cloud Computing Is Evolving There Are Many Obstacles to Ubiquitous Cloud Computing The Economic Forces Will Dominate the Obstacles

26 Above The Clouds A Berkeley View Of Cloud Computing Microsoft on Cloud Computing Peering into Future of Cloud Computing Guided Tour inside the Windows Azure Cloud with Patrick Yantz Cloud-with-Patrick-Yantz/ James Hamilton, Internet Scale Service Efficiency, Large-Scale Distributed Systems and Middleware (LADIS) Workshop Sept 08

28 SQL Azure Pricing Highly available, scalable, and self managed distributed relational database service Web Edition Per DB per Month Up to 1GB DB $ BW charges Business Edition Per DB per Month Up to 10GB DB $ BW charges Bandwidth Per GB transfer in or out of a datacenter Asia Pacific = $0.30 in / $0.45 out / GB Data Transfers Windows Azure and SQL Azure data transfers within a sub-region are not subject to BW charges 2010 Microsoft Corporation. All rights reserved. Microsoft. Page 28

30 Windows Azure Pricing Meters Elastic, scalable, secure, & highly available automated service platform Compute: Per Service Hour Starting at $0.12/service hour + Variable instance sizes Storage Per GB stored & transactions Blob & table $0.15 / GB Storage Access = $0.10 / 100K Transactions Bandwidth Per GB transfer in or out of a datacenter Asia Pacific = $0.30 in / $0.45 out / GB 2010 Microsoft Corporation. All rights reserved. Microsoft. Page 30

31 Evolution of Microsoft s Datacenters Generation 1 Generation 2 Generation 3 Generation 4 Collocation Density Containers Modular datacenter (future) Server Capacity Co-location Rack Density and sustainability Containers Scalability Quincy and San Antonio Chicago and Dublin IT PAC (Pre-Assembled Components) Scalable and greener datacenters Chicago and Dublin Refresh 2010 Microsoft Corporation. All rights reserved. Microsoft. Page 31

34 Gen 4: Goals & Objectives Reduce Cost dramatically Reduce capital cost/mw by Class Leverage industry to drive down initial & operating costs Time To Market - Move to lowest $ Cost DC investment Data Center Facility delivered with the servers >ROIC return on invested capital Sustainability/ Green Lowest yearly average PUE in the Industry 2008 < 1.5, 2010 < 1.25, 2012 < Calculate TCOE not just operational efficiency Initiative to reduce building, copper, water Drive to Chiller-less data centers and aggressive outside economization 2010 Microsoft Corporation. All rights reserved. Microsoft. Page 34