Microsoft s Cloud. Delivering operational excellence in the cloud Infrastructure. Erik Jan van Vuuren Azure Lead Microsoft Netherlands

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1 Microsoft s Cloud Delivering operational excellence in the cloud Infrastructure Erik Jan van Vuuren Azure Lead Microsoft Netherlands

2 4 Megatrends are driving a revolution 44% of users (350M people) access Facebook via mobile devices. Mobility 70% of U.S. smartphone owners regularly shop online via their devices. Gaming consoles are now used an average of 1.5 hrs/wk to connect to the Internet. 50% of millennials use mobile devices to research products. 60% of U.S. mobile data will be audio and video streaming by Mobility Cloud 33% of BI will be consumed via handheld devices by /3 of the world's mobile data traffic will be video by % of people recommend a brand they like or follow on a social network. 500M Tweets are hosted on Twitter each day. 1 in 4 Facebook users add their location to posts (2B/month). Brands get 100M Facebook likes per day. Social Data 8 zettabytes of digital data will be in use worldwide in 2015, up nearly 500% from % growth of unstructured data is predicted over the next five years.

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5 Business needs in the cloud Historic IT Transformation

6 Datacenters generation 2, 3, 4 Generation 2: traditional (SLA ) Generation 3: Containment Generation 4: Modular (SLA 99.9) Physical redundancy N+2, Tier 3/4 Datacenter as a commodity DC SKU, Scale Service geo-redundancy Active/active nodes geo-distributed Lower Capex/Opex Increased efficiency

7 Internet connectivity by country Microsoft global datacenter footprint Azure datacenter regions Microsoft s global datacenter footprint Microsoft s network is one of the two largest in the world Internet users 500,000, ,000, ,999,999 50,000,000 99,999,999 25,000,000 49,999,999 5,000,000 24,999, ,000 4,999,999 50, , ,999 *Operated by 21Vianet 1 million+ servers 100+ Datacenters in over 40 countries

8 Aiming for the highest Security Controls possible EU Approved Cloud Data processor transparency: Audited compliancy controls: ISO 27001/27002 ISO SOC 1/SSAE 16/ISAE 3402 en SOC 2 Cloud Security Alliance CCM FedRAMP FISMA FBI CJIS (Azure Government) PCI DSS Level 1 EU Model Clauses DNB

9 5.8+ billion worldwide queries each month 250+ million active users 400+ million active accounts 2.4+ million s per day 8.6+ trillion objects in Microsoft Azure storage 48+ million users in 41 markets 50+ million active users 1 in 4 enterprise customers 50+ billion minutes of connections handled each month 200+ Cloud Services 1+ billion customers 20+ million businesses 90+ markets worldwide

10 More than just server racks

11 A closer look Traditional datacenter infrastructure Generators IT Load Substation Transformer UPS Chiller CRAC Water Supply Cooling Towers Condenser

12 Datacenter operational energy use Traditional Modular Offline UPS technologies can drive Electrical losses substantially down Widening temperature range can remove chillers and drive cooling to zero Virtualization, active power management increase IT return on investment PUE=2.0 PUE=1.15 Source: EYP Mission Critical Facilities Inc., New York

13 Microsoft s datacenter evolution Generation 1 Generation 2 Generation 3 Generation 4 Generation PUE PUE PUE PUE PUE Colocation Density Containment Modular SW-Defined 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 Fully Integrated Resilient Software Common Infrastructure Operational Simplicity Flexible & Scalable

14 Application integration at hyper-scale Reliability is now 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

15 The IT Load - optimizing servers and storage Optimizing the configuration Remove unnecessary components Limit the platform expandability: # Slots, CPU Power Right-size the power supply Driving higher efficiency High-efficiency components Use low-power processors Design for high temperature operation Optimize power and cooling at rack / ITPAC level Strategic use of new technologies Flash memory System on a chip New generation of energy efficient CPU cores Power capping

16 Cloud-optimized high-density servers

17 Reducing power consumption Goes beyond the facility -67% power plant Most of the initial energy is lost in the power generation and transmission. e -10% transmission and distribution -33% cooling -4% lighting -15% UPS -10% fans The remainder is lost through inefficient datacenter, server and application architectures. -35% power supply -85% underutilization -40% inefficient applications >99% of initial energy lost in conversion 100kW to the power plant 30kW to the datacenter 16kW to the server 9.5kW to the application 0.9kW to the customer Source: Reinventing Fire (Lovins and RMI)

18 Microsoft is transforming our energy supply chain Equipment Cost from the power plant to the chip

19 Redesigning datacenters towards hyper-efficiency Data Plant: Integrating power generation and data production Simplifies the supply chain and delivers greater efficiency Reduces losses, infrastructure costs and emissions What, when and how? In-rack fuel cells deliver DC power directly to the server 2x the total system efficiency from power plant to chip Initial validation will be completed by the end of the year Fuel Cell Datacenter Substation Substation Server CPU Radically simplified supply chain delivers more data Datacenter with less resources Server CPU

20 Cloud Platform Global scale Enterprise grade Comprehensive Hybrid cloud People-centered experiences MICROSOFT AZURE CUSTOMER DATACENTER CONSISTENT PLATFORM SERVICE PROVIDER

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24 Microsoft cloud infrastructure resources Microsoft Datacenters Website microsoft.com/datacenters Cloud Infrastructure & Operations Blog blogs.technet.com/msdatacenters Microsoft Azure Trust Center azure.microsoft.com/support/trust-center Office 365 Trust Center trustoffice365.com 24

25 2015 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. 25