Transcript Copyright © 2015 Chappell & Associates ! Nearly every enterprise today can benefit from using public cloud platforms.

Copyright © 2015 Chappell & Associates
!
Nearly every enterprise today can benefit
from using public cloud platforms
From innovation to obligation
First firm in an industry
implements innovation
Competitive
Advantage
to Firm
Second firm in the industry
implements innovation
Third firm in the industry
implements innovation
TIME
Window of
differentiation
Competitive
Advantage
to Firm
Strategic IT
Utility IT
Why you care
Public cloud platforms
can help with both
What strategic applications need
What utility applications need
Ability to support new, modern
business ideas
Low cost
Elastic resources
Support for fast development
Reliability
A public cloud platform
Microsoft Azure provides computing resources in
data centers around the world
US
US
US
US
Brazil
Europe
Europe
Asia
Asia
Asia
Asia
Australia
Security
?
Can a public cloud platform
keep my data and applications
safe?
ANSWER
You must learn to trust your
public cloud provider
Compliance
?
Can I still meet my regulatory
requirements in the public
cloud?
ANSWER
You must understand the rules
that apply to you
COUNTRY
Laws and Regulations for Off-Premises Computing
FINANCIAL
SERVICES
NATIONAL
LOCAL
GOVERNMENT GOVERNMENT
HEALTHCARE
RETAILING
United States
?
?
?
?
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?
Canada
?
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United Kingdom
?
?
?
?
?
?
Germany
?
?
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?
Japan
?
?
?
?
?
?
Australia
?
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...
?
?
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?
?
?
...
Availability
?
Will public cloud datacenters
be up when they’re needed?
ANSWER
They’ll be at least as good as
your own datacenter, and there
are SLAs
The unspoken worry
?
Will public cloud platforms
make me lose my job?
ANSWER
Probably not, but you’ll need to
learn some new skills
Compute
Infrastructure as a
Service (IaaS)
Platform as a Service (PaaS)
Virtual Machines
Cloud Services
Web Sites
Application
VMs
Web
Roles
Application
Worker
Roles
Application
Application
VHDs
Gallery
VHDs
User-Supplied
Becoming part of Azure
App Services
Data management
Binary
storage
Blob Storage
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IaaS relational
storage
DBMS in a VM
SQL Server,
MySQL, …
VM
PaaS relational
storage
SQL Database
MICROSOFT AZURE
ENTERPRISE
Networking
Pricing examples (in US dollars)
Bandwidth
Inbound:
Free
User
Outbound:
$0.05 to $0.087/GB
US and Europe,
$0.12 to $0.138/GB
Asia/Pacific,
$0.16 to $0.181/GB
Brazil
Enterprise agreements, etc.
commonly discount these prices
Compute
Virtual Machines: $0.02 to $1.32/instance
per hour depending on instance size and
capabilities
Data
Blob Storage: $0.022 to $0.061/GB per month,
depending on size and capabilities
SQL Database: $4.99 to $3,720 per month,
depending on database size and throughput
Example scenarios
Data storage
Cloud identity
VMs on demand
Disaster recovery
Deploying packaged applications
Moving existing applications to the public cloud
Strategic IT
Utility IT
MICROSOFT AZURE
ENTERPRISE
Example: Using Azure Blobs
Microsoft
StorSimple
Windows Server,
SQL Server, …
SAN appliance for
hybrid storage
Store backup data
Store arbitrary binary
data, e.g., videos
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Blobs
Applications
Example: Extending on-premises storage with StorSimple
MICROSOFT AZURE
ENTERPRISE
Servers
App
App
App
App
Users
StorSimple
Data stored in
blobs is
compressed,
deduped, and
encrypted
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Blobs
Why do this?
$
Lower cost
EXAMPLE
One terabyte stored in
geo-redundant blobs
 Operations on the
data:
10,000,000/month
 Data transfer out: 500
gigabytes/month
COSTS
Storage:
$61/month
Operations:
$0.36/month
Data transfer: $43.01/month (US/Europe)
$68.31/month (Asia/Pacific)
$89.60/month (Brazil)
Total:
$104.37/month (US/Europe)
$129.67/month (Asia/Pacific)
$150.96/month (Brazil)
Windows Server
Active Directory
Login
On-Premises
Application
User
IT Admin
1
2
3
Access on-premises
and SaaS applications
Configure link
Azure
Active Directory
SaaS
Application
SaaS
Application
OTHER ENVIRONMENT
MICROSOFT AZURE
ENTERPRISE
Example: Single sign-on with Azure Active Directory Premium
Why do this?
Single sign-on to diverse
SaaS applications
Multi-factor
authentication
Simpler identity
administration
Azure AD Premium supports:
- Office 365
- Dynamics CRM Online
- Google Apps
- Salesforce CRM
- ServiceNow
- Dropbox
- Many more
Azure AD Premium can
require a password plus
phone-delivered code for
logins
Azure AD Premium provides:
- Self-service password
resets for SaaS
applications
- Reports of who accessed
which applications, etc.
ENTERPRISE
Example: A dev/test environment
Azure
Management Portal
Developers
MICROSOFT AZURE
2
Use VMs
1
Create VMs
Azure
Virtual Machines
VMs
IT Admin or
Developer
Why do this?
Fast and simple way to
get inexpensive VMs
Useful in many situations
Can use Microsoft Azureprovided VHDs or your own,
Windows or Linux
Dev/test environment for
cloud or on-premises
apps
Users can potentially access
cloud VMs as if they were
local
Useful for custom and
packaged apps, e.g., SAP
Can shut down VMs when
they’re not needed
Such as nights or weekends
when developers aren’t active
Example: Database failover to Azure
MICROSOFT AZURE
ENTERPRISE
2
App
SQL
Server
Create SQL Server
AlwaysOn availability group
Azure
Management Portal
IT Admin
Users
3
1
Redirect here if an
on-premises failure
occurs
SQL
Server
VM
Create VM
Azure
Virtual Machines
MICROSOFT AZURE
ENTERPRISE
Example: Using Azure Site Recovery
1
cations
s
Workloads
Users
cations
s
Workloads
cations
s
Workloads
Hyper-V VMs
VMware VMs
Create backup logic
for workloads
Azure Site
Recovery
cations
s
Workloads
VMs
cations
s
Workloads
VMs
cations
s
Workloads
VMs
2
On failure, activate
backup workloads
on Azure
Why do this?
Can cover a range of
scenarios
From database DR to full
workload DR
Lower cost
No need to maintain a
dedicated facility just for
DR
Organizations can provide
DR for more applications,
because it’s cheaper
Provides diverse recovery
options
Microsoft Azure has
datacenters around the world
Azure Site Recovery supports
DR to Azure, to a hoster, and to
another enterprise datacenter
ENTERPRISE
Example: SharePoint on Microsoft Azure
Active
Directory
Azure
Management Portal
IT Admin
Users
MICROSOFT AZURE
1
SharePoint
VMs
SQL
VMs
Active
Directory
Create VMs
Azure
Virtual Machines
VM
2
Deploy and configure
SharePoint
Azure
Virtual Network
Why do this?
Faster deployment
IT resources become an
operating expense
No need to wait for
central IT
Rather than a capital
expense
Lower cost
Microsoft Azure is probably
cheaper today and certainly
cheaper tomorrow; prices keep
going down
ENTERPRISE
Example: Moving a custom application to Microsoft Azure
Active
Directory
Microsoft Azure
Management Portal
IT Admin
Users
MICROSOFT AZURE
1
Custom
Application
DBMS
VMs
VMs
Active
Directory
Create VMs
Microsoft Azure
Virtual Machines
Microsoft Azure
Virtual Network
VM
2
Deploy and configure application
Why do this?
$
Lower cost
EXAMPLE
Two medium VMs
($.18/hour each) running
continuously
COSTS
Compute:
Storage:
Bandwidth:
Stores 100 gigabytes
 Operations on the
data: 30,000,000/month
 Data transfer out: 50
gigabytes/month
Total:
$268.00/month
$7.18/month
$3.92/month (US and Europe)
$6.21/month (Asia/Pacific)
$8.15/month (Brazil)
$279.10/month (US/Europe)
$281.39/month (Asia/Pacific)
$283.33/month (Brazil)
Making good decisions here requires
apples-to-apples comparisons
Summarizing the scenarios
Data storage
Cloud identity
VMs on demand
Disaster recovery
Deploying packaged applications
Moving existing applications to the public cloud
Strategic IT
Utility IT
Example scenarios
New employee-facing applications
New customer-facing applications
New parallel applications
Strategic IT
Utility IT
To improve the execution of an existing business
model
Such as automating a current business process
To support a new business model
Such as offering customers self-service access to services
OFFERING
CUSTOMER
A tool for thinking about new strategic applications
Key Partners
Key Activities
Key Resources
Cost Structure
Source: Business Model Generation, Alexander Osterwalder, et al.
www.businessmodelgeneration.com
Value
Proposition
Customer
Relationships
Channels
Revenue Stream
INFRASTRUCTURE
FINANCE
Customer
Segments
Some examples
Key Partners
Your cloud platform
vendor becomes an
important partner
Key Activities
In-house IT resources
can be reallocated
Key Resources
Massive, cheap compute
and storage are now
available to anybody
Cost Structure
Elastic pricing makes very spiky apps
more economically feasible
Value
Proposition
?
Customer
Relationships
Cloud apps allow more
customer self-service
Channels
Customer
Segments
Cloud apps can reach
smaller customers and
partners more cheaply
Cloud apps allow selling
directly to customers
Revenue Stream
Pay-as-you-go computing resources allow
lower-risk experimentation with new business models
ENTERPRISE
Example: An IaaS application
Azure
Management Portal
Developer
Users
MICROSOFT AZURE
1
Create VMs
Azure
Virtual Machines
Application
DBMS
VM
VM
2 Deploy application and data
Why do this?
Ease and speed of
deployment
Capabilities you can’t
easily get otherwise
No need to wait for
central IT
Geographic distribution
Easy up-and-down
scaling
 Especially important
for spiky apps
Lower cost
Because of public cloud
platform scale and/or elasticity
MICROSOFT AZURE
ENTERPRISE
Example: A PaaS application
Azure
Management Portal
Developer
Users
1 Deploy application
Application
Cloud Services/
Web Sites
SQL
Database, …
Why use PaaS rather than IaaS?
Ease and speed of
deployment
Lower management cost
The PaaS platform already
exists--no need to create
it
The PaaS platform
maintains the
environment for you
Lower risk
Fewer things to configure
means fewer opportunities for
error
MICROSOFT AZURE
Azure Management
Portal
1
Application
Cloud Services/
Web Sites
SQL
Database, …
Developer
Deploy application
ENTERPRISE
CUSTOMERS
Example: A PaaS application
Why do this?
Capabilities you can’t
easily get otherwise, e.g.,
Massive scale
Easy up-and-down scaling
High reliability
Geographic distribution
Services for mobile clients
Lower cost
Because of public cloud
platform scale and
elasticity
Ease and speed of
deployment
Especially with PaaS
Where Microsoft Azure is a very good fit
Application Characteristic
Examples
Needs fast access to computing resources
with no commitment
Marketing web sites,
high-risk innovative apps
Requires massive or global scale
Consumer web applications
Has very spiky usage
Online ticket sales
Running the application on-premises
raises security issues
Customers don’t want in-house IT
Mobile applications
Start-ups, progressive businesses
ENTERPRISE
Example: An HPC application on Microsoft Azure
Windows Server
with HPC Pack
2012
Users
MICROSOFT AZURE
2
Logic
Logic
Logic
Logic
VMs
VMs
VMs
VMs
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Submit HPC job
1
Create cluster
Developer/
IT Admin
Example: A big data application using HDInsight
ENTERPRISE
2
User
3
MICROSOFT AZURE
Submit big data job
Get results
1
Logic
Logic
Logic
Logic
VMs
VMs
VMs
VMs
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Create
cluster
HDInsight
Developer/
IT Admin
Why do this?
Lower cost
Pay only for the VMs you
need when you need
them
On-demand access to an
HPC cluster
On-demand access to a
Hadoop cluster
Windows HPC Server
provides built-in support
for creating and managing
a compute cluster on Azure
HDInsight provides builtin support for creating
and managing a Hadoop
cluster on Azure
Summarizing the scenarios
New employee-facing applications
New customer-facing applications
New parallel applications
Strategic IT
Utility IT
Public cloud platforms can provide:
At least one scenario probably has value for every
enterprise right now
!
What are you waiting for?
David Chappell is Principal of Chappell & Associates
(www.davidchappell.com) in San Francisco, California. Through his
speaking, writing, and consulting, he helps people around the world
understand, use, and make better decisions about new technology.
David has been the keynote speaker for more than a hundred events
and conferences on five continents, and his seminars have been
attended by tens of thousands of IT leaders, architects, and developers
in fifty countries. His books have been published in a dozen languages
and used regularly in courses at MIT, ETH Zurich, and other universities.
In his consulting practice, he has helped clients such as Hewlett-Packard,
IBM, Microsoft, Stanford University, and Target Corporation adopt new
technologies, market new products, and educate their customers and
staff.
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http://aka.ms/azure-fundamentals-ebook
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