SVC54

Windows Azure Platform Business Model

“Transforming to a services business“

Dianne O’Brien Sr. Director Business Strategy Microsoft Corporation

The “New” RealityPost economic reset, alignment with business more important

than ever

Balance & shift cost

out of operations

ControlCosts

MoreInnovation

Capture & create new opportunity

Get more out of your people

Increase Productivity

Transforming to a “Services” business

Business Case

PurchasingModels

Service Management

Increase agility, faster ROI, & better TCO

Lower barrier & flexible payment models

Reduce complexity & cost of service management

Technical Business

Understanding both implications

Learning from our customers & partners

eduify | write faster

Workload Patterns Optimal For Cloud

Usage

Com

pu

te

Time

Average

Inactivity

Period

“On and Off “

On & off workloads (e.g. batch job)Over provisioned capacity is wasted Time to market can be cumbersome

Com

pu

te

Time

“Unpredictable Bursting“

Average Usage

Unexpected/unplanned peak in demand Sudden spike impacts performance Can’t over provision for extreme cases

Average Usage

Com

pu

te

Time

“Growing Fast“

Successful services needs to grow/scale Keeping up w/ growth is big IT challenge Complex lead time for deployment

Com

pu

te

Time

Average Usage

“Predictable Bursting“

Services with micro seasonality trends Peaks due to periodic increased demandIT complexity and wasted capacity

Real World TCO Analysis (TCO estimate over 3-year period)

Lower TCO from dynamic scaling & automated service

management

Persistent Systems

Public sector governance suite of applications & services

Needs secure, scalable, elastic, & comprehensive platform

On Premises Azure

$62K$74K

Alinean Inc.

Leading provider of B2B sales & marketing solutions to F100

Reduce IT complexity & shift resources to core businesses

Lower TCO from efficient utilization of resources & service

management

On Premises Azure

$277K$540K

49% 16%

TCO Analyzer Tool

http://www.microsoft.com/windowsazure/tco/

TCO tool available today

Quickly determine “quantitative” value of using Windows Azure Platform services

TCO of development and running Windows Azure Platform vs. traditional delivery channels

Estimation “of” and conversion “to” on-premise solution to Windows Azure Platform services

Profile Your Application

Review Preliminary Results

Refine Key Assumptions

Final TCO Comparison

Windows Azure Platform Purchasing Models

“Pay as you go and grow”

Low barrier to entry & flexibility

Optimized for cloud elasticity

Available Jan 2010

Consumption

“Value for a commitment“

Discounts for commitment

Plans for payment predictability

Subscription

Select offers available Jan 2010

“Coordinated purchasing”

Centralized purchasing experience

Introduction to volume discounts

Planned for post PDC

Additional Licensing

Promotional

Offers Partner Discount

Development Pricing

Integration withPrograms

Windows Azure Platform Consumption Prices

Elastic, scalable, secure, & highly available automated service platform

Pay as you go and grow for only what you use when you use it

Compute

$0.12/hour

+ Variable Instance Sizes

Per service hour

Highly available, scalable, and self managed distributed database

service

Web EditionPer database/month

$9.99/month(up to 1 GB DB/month)

Business Edition

$99.99/month(up to 10 GB DB/month)

Per database/month

Storage Per GB stored &

transactions$0.15 GB/month

$0.01/10K transactions

Prices shown in USD only

Windows Azure platform AppFabric Service Bus & Access ControlScalable, automated, highly available services for secure connectivity

Access Control

$0.015/10k Message Operations

Per Message Operation $0.015/10k Message

Operations

Per Message Operation

Service Bus

International prices are available

Windows Azure Instance Sizes

Unit of Compute Defined

Small

$0.12

Per service hour

Medium

$0.24

Per service hour

Large

$0.48

Per service hour

X Large

$0.96

Per service hour

Variable instance sizes to handle complex workloads of any size

 

Small

1 x 1.6Ghz (moderate IO)

Medium

2 x 1.6Ghz (high IO)

Large

4 x 1.6Ghz (high IO)

X-Large

8 x 1.6Ghz(high IO)

Equivalent compute capacity of a 1.6Ghz processor (on 64bit platform)

1.75 GB memory 3.5 GB memory 7.0 GB memory 14 GB memory

250 GB storage(instance storage)

500 GB storage(instance storage)

1000 GB storage(instance storage)

2000 GB (instance storage)

North America Region

S. Central - US Sub-region

N. Central – US Sub-region

Europe Region

W. Europe Sub-region

S.E. AsiaSub-region

Asia Pacific Region

E. AsiaSub-region

$0.10 GB Ingress

$0.15 GB Egress

$0.10 GB Ingress

$0.15 GB Egress

$0.30 GB Ingress

$0.45 GB Egress

N. Europe Sub-region

Windows Azure Platform Data Transfer Priced per GB transferred/month (prices shown in USD)

No Charge For Off Peak Ingress Promotion (ends 6/30/10)

On-board to Windows Azure platform at no charge Off peak times defined as: 10pm-6am Mon-Fri & from 10pm-Fri to 6am-

Mon for weekends in each designated regional time zones below

North America PST = UTC-8

Europe WET = UTC

Asia PacificSST = UTC+8

Introductory Special

Anyone can try the platform at no charge

(monthly service allocations)

Biz SparkOne

Investing in high potential start-ups; receive full platform

services at no charge

MSDN Premium

Subscribers receive monthly allocation of

platform services at no additional charge

Promotional Offers & Programs

Development Accelerator

1. Accelerate cloud development projects

2. Flexible consumption (flex # of instances)

3. Predictable payments (6 mo subscription)

4. Exceptional value (discounted price)

Core

Includes Windows Azure compute, storage, storage

transactions, data transfer, & message

operations

Extended

Includes Core plus SQL Azure Business Edition

Introductory Special

Windows AzureCompute 25 HrsStorage 0.5 GB

Storage X-actions 10K

SQL Azure1 Web Edition DB

(1GB DB for 90 day trial)

Message Operations Messages 100K

Data transfer0.5 GB In & 0.5GB Out

Biz Spark OneOffer MSDN

Premium

Windows AzureCompute 750 hrs

Storage 10 GBStorage X-actions 1M

SQL Azure 3 Web Edition DB

(1 GB)

Message Operations Messages 1 Million

Data transfer 7GB In & 14GB Out N.A/EU

2.5GB In / 5GB Out Asia Pacific

Promotional Offers & Programs

Available to all partners & customersLimit of one per customer Promotion ends 6/30/10

Overage charged at Consumption rates

Amount of Windows Azure Platform services will vary

by customer

MSDN Premium subscribersLimit of one per MSDN subscription

8 month term Limited time offer thru 7/31/10

Overage at partner Consumption rates

Available for selected startups

Program participation is by invitation only

Program available in 10 countries

Amount of Windows Azure platform services included per month at no charge

Additional 5% off for partners(except storage & data transfers)

Development Accelerator Offer

CORE

Windows Azure

Compute 750 hrs

Storage 10 GB

Storage X-actions 1M

EXTENDED

Includes CORE plus

SQL Azure Business Edition (10 GB)

6 month subscription offered at 42%-46% off consumption prices Offered as a monthly “unit” (you can order multiple “units”)

Overage charged at Consumption ratesPromotional offer, expires 6/30/2010 for new subscriptions

Monthly price

$59.95 (42% off consumption prices)

Monthly price

$109.95 (46% off consumption prices)

Data transfer 7GB In/14GB Out N.A & EU

2.5GB In/5GB Out Asia Pacific

Message Operations Messages 1 M

Additional 5% off for partners(except storage & data transfers)

The Value of Service Management

Price for Service Management is Zero $ Service lifecycle management is always included in the low base price!

Reduce infrastructure and operational costs Lower TCO

Reduce IT

Complexity Shift valuable resources to focus on high value

areas

Automated

Management

Automated service management means automatic

upgrades & no more patches

Platform as a service provided at global scale with a dependable service level agreement

Comprehensive

SLA

Monthly Service Level Agreement

Your service is connected & reachable via web

Internet facing roles will have external connectivity

All runningroles will be continuously monitored

If role is unhealthy we will detect & initiate corrective state

Database is connected to the internet gateway

All databases will be continuously monitored

>99.95%

>99.9%>99.9% >99.9%>99.9%

Storage service will be available/ reachable (connectivity)

Your storage requests willbe processed successfully

Service bus & access control endpoints will have external connectivity

Message operation requests processed successfully

Instance

monitoring & restart

Storage availability

Database availability

Service bus & Access control

availability

Computeconnectivity

Support For Customers & Partners

Online Self Help Assisted Support

Windows Azure Platform Portal(http://azure.com)

Customer Care (no charge 24/7 phone access)

Developer Support (paid developer support)

Service Dashboard(available to all users)

Microsoft Developer Network (MSDN) & Microsoft Partner Network (MPN) Benefits

Premier Windows Azure Platform (now fully integrated)

Managed forums w/ response SLA, incident support, advanced technical guidance, & training

Public Forums(available to all users)

12. Netherlands

13. New Zealand

14. Norway

15. Portugal

16. Singapore

17. Spain

18. Sweden

19. Switzerland

20. UK

21. United States

1. Austria

2. Belgium

3. Canada

4. Denmark

5. Finland

6. France

7. Germany

8. Ireland

9. India

10. Italy

11. Japan

22. Australia

23. Brazil

24. Chile

25. Colombia

26. Costa Rica

27. Cyprus

28. Czech Republic

29. Greece

30. Hong Kong

31. Hungary

32. Israel

33. Luxemburg

34. Malaysia

35. Mexico

36. Peru

37. Philippines

38. Poland

39. Puerto Rico

40. Romania

41. Trinidad & Tobago

Available in 21 countries Jan 2010

Available in 41 countries Q2 2010

Windows Azure Platform availability in worldwide geographies

International Roadmap

Available in 11 currencies Jan 2010

Available in 12 currencies Q2 2010

Windows Azure Platform purchasing availability in worldwide currencies

International Pricing

11. Australian Dollar (AUD) / FX Rate 1.25

1. US Dollar (USD)

2. Canadian Dollar (CAD) / FX Rate 1.11

3. British Pound (GBP) / FX Rate 0.6061

4. Danish Krone (DKK) / FX Rate 5.46

6. EURO (EUR) / FX Rate 0.7092

7. Norwegian Kroner (NOK) / FX Rate 6.15

8. Swedish Krona (SEK) / FX Rate 7.5

9. Swiss Franc (CHF) / FX Rate 1.1

10. Japanese Yen (JPY) / FX Rate 98

11. New Zealand Dollar (NZD) / FX Rate 1.563

Billing localized in 5 languages Jan 2010

(English, French, German, Japanese, & Spanish)

International prices determined by using USD prices and applying FX rates

Business roadmap, looking ahead....

Additional purchasing options coming in 2010 Centralized purchasing, procurement, & billing for all Microsoft products &

services

Durable storage volumes attachable directly to compute

instances

Windows Azure Drive

(available in Feb)

18 edge locations in 12 countries for low latency

& global presence

CDN

(available today)

Information service built on SQL &

Windows Azure (BI & analytics)

Codename “Dallas”

(available today)

Additional SQL Azure databases sizes >10GB

available in 2010

SQL Azure >10GB (available H1 2010)

Principles driven business model as we bring new services on

New Services Available (pricing coming soon…)

Flexible, simple, and value based pricing and licensing

Some Final Thoughts….

Consumption vs. Subscription and service predictability

Purchasing

Models

CPU

UtilizationCPU cost is allocated when the instance is deployed

Programs & Promotions

Take advantage of existing programs and promotions(e.g. MSDN, dev accelerator, introductory, data transfer

promo)

Leverage the TCO tool and additional resources to help build your business case

TCO Tool

YOUR FEEDBACK IS IMPORTANT TO US!

Please fill out session evaluation

forms online atMicrosoftPDC.com

Learn More On Channel 9

> Expand your PDC experience through Channel 9

> Explore videos, hands-on labs, sample code and demos through the new Channel 9 training courses

channel9.msdn.com/learnBuilt by Developers for Developers….

© 2009 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.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.

Premier Support for the Windows Azure Platform

Additional info - http://www.microsoft.com/premier

One end to end support package for all Microsoft Products & Services

Designated Support Account Manager: provides single point of contact for support & IT planning needs

Problem Resolution Support: shorter response times & priority escalation paths

Service Delivery Planning: ongoing planning & execution cycle continuously improving IT operations & maturity.

Access to specialized Azure Prevention & Resolution resources who deliver Developer Support, Support Assistance, Information Services, & Workshops

Developer Benefits:

Dynamic marketplace for

buyers and sellers of Microsoft-based

technologies

Connect with customers who

need their software applications and

professional services

Largest directory of qualified IT

providers and widest customer

audience

Links to your demo, trial & purchase

pages

Extending Microsoft’s

commerce platform to developers in

2010

www.MicrosoftPinpoint.com/GetListed

Microsoft PinpointThe easy way to deliver your applications and professional

services

Pinpoint lists available

applications built on all Microsoft

platforms

Showcase and Sell Your Software and Services

Attract and Engage More Customers

Get Lead Notifications and Customer Insights