ECONOMICS OF THE CLOUD. Michel N Guettia Business Group Lead Slide 1

Transcription

1 ECONOMICS OF THE CLOUD Michel N Guettia Business Group Lead micheln@microsoft.com Slide 1

2 TRANSFORMATIE VAN IT Today Cloud 2000s Web 1990s Client / Server 1970s and 80s Mainframe

3 HOW MICROSOFT VIEWS THE CLOUD Nieuwe Principe's Schaalbaarheid Betalen naar gebruik Hoge beschikbaarheid Multi-tenancy Keuze Locatie Infrastructuur Business model Eigendom Management

4 TCO/Server SUPPLY SIDE ECONOMICS OF SCALE Larger datacenters have almost 50% lower TCO per server MAIN DATA CENTER COST BUCKETS ANNUAL TCO/SERVER DECLINES W/SCALE Server hardware costs (~45%) Facility & operations (~25%) Hardware labor costs (~15%) Power costs (~15%) $5,000 $4,000 $3,000 $2,000 $1,000 $0 1k Server DC 100k Server DC Server Hardware Facility Hardware Operations Power

5 DE MICROSOFT CLOUD Monolithic design and construction effort High Investments $$$ Long lead time Typical large datacenter = 11 football fields Typical construction costs = $10M to $15M per Megawatt 18 to 24 months from design to online

6 DE MICROSOFT CLOUD Microsoft has more than 10 and less than 100 DCs worldwide Chicago Quincy Dublin Amsterdam Japan Boydton Des Moines Hong Kong San Antonio Singapore Multiple global CDN locations Quincy, Washington 27MW 100% Hydro power San Antonio, Texas 27MW Recycled water for cooling Chicago, Illinois Up to 60MW Water side economization, Containers Dublin, Ireland Up to 50MW Outside air cooling, PODs "Datacenters have become as vital to the functioning of society as power stations." The Economist

7 SUSTAINABLE ECONOMICS Improved Efficiency Energy savings and Sustainable Environment Reduced TCO for supply of cloud services Relentless focus on PUE reduction Lower cost passed on to customers Competitive Advantage Less Idle Equipment Profit Less Raw Materials Planet Less Wasted Power People Less Carbon Less Empty Space Less e-waste Satisfied Customers PUE Ojective: 1.125

8 SHIFT TO ULTRA-MODULARITY Pre-manufacture the entire datacenter Low initial capital investment ITPAC Modular Server Building Block Airside Economization PAC with adiabatic cooling Extremely efficient PUE of to 2500 servers at a time

9 CPU Utilization DEMAND SIDE ECONOMIES OF SCALE Average server utilization rates are 5-10% 100% 75% 50% 25% 0% Time

10 UNCERTAIN GROWTH Uncertainty about future demand requires overprovisioning of resources. Pooling uncertainty dramatically reduces this inefficiency

11 MULTI-TENANCY BENEFITS Multi-tenant applications share resources between users and organizations SINGLE-TENANT APPLICATION Client Client Instance Instance Instance Admins Resources Admins Resources Admins Resources

12 MULTI-TENANCY BENEFITS Multi-tenant applications share resources between users and organizations MULTI-TENANT APPLICATION Instance Instance Instance Admins Resources Admins Resources Admins Resources

13 CLOUD OPERATING SYSTEM Multi-tenant Cloud OS

14 TCO/Server PUBLIC VS. PRIVATE CLOUDS $8,000 $6,000 CLOUD SCALE BENEFIT $4,000 $2,000 $ ,000 10, ,000 Cloud Size (# of Servers)

15 You manage You manage You manage SERVICE MODELS Service Categories (On-Premise) Infrastructure (as a Service) Platform (as a Service) Software (as a Service) Applications Applications Applications Applications Data Data Data Data Runtime Middleware O/S Virtualization Servers Storage Runtime Middleware O/S Virtualization Servers Storage Managed by vendor Runtime Middleware O/S Virtualization Servers Storage Managed by vendor Runtime Middleware O/S Virtualization Servers Storage Managed by vendor Networking Networking Networking Networking Higher Control & Higher Cost Lower Cost & Higher Agility

16 CLOUD SERVICES FOR BUSINESSES BUSINESS APPS BUSINESS USERS PLATFORM

17 THE VALUE OF CLOUD COMPUTING _Survey_results_2702?gp=1

18 THE HORSELESS CARRIAGE SYNDROME

19 THE HORSELESS CARRIAGE SYNDROME Customers "If I had asked my customers what they wanted, they would have said a faster horse." - Henry Ford Analysts The horse is here to stay but the automobile is only a novelty, a fad. - Bank analyst Engineers designed whip holders into the automobiles for the first 6-7 years, even though there was no horse Forecasters There will never be more than 1 million units because of the limited availability of good drivers - Daimler Company (there were 8 million by 1918, over 600 million today)

20 2010 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.