Cloud Computing Cool Stuff or Business Value?

José Luis Garza de los RíosDirector Regional Zona NorteMicrosoft México

What is the cloud?From a technical perspective, the cloud is a collection of devices

(e.g., PCs, servers, mobile devices) using the network to pool resources and work together.

You see this pooling of resources in large data centers, where servers work together to absorb more traffic during spikes and to recover from hardware failures, without people having to

intervene.

Cloud Computing Structures:

Cloud ImpactREDUCED

MANAGEMENTNEW

ECONOMICSINCREASED

PRODUCTIVITY

Pay for what you useLower and predictable costsShift from capex and opexAccelerate speed to value

No patching, maintenanceFaster deploymentRobust multi-layered securityReliability and fault-tolerance

Latest software for usersInternet collaboration Anywhere accessInstant self-provisioning

Key topics at the World Economic Forum 2010

Generating the action areas

Cloud Computing in numbers

Cloud Computing in Mexico: Market Awareness

32.5percent of the companies interviewed had an excellent understanding of the cloud computing concept.

Enterprise segment in Mexico had a much higher level of awareness about this concept when compared to other IT markets in Latin America.

Cloud Computing in Mexico: Market Drivers 95.0 percent of the respondents

considered cost savings as the most important market driver. This is because cloud computing solutions include a cost-efficient pricing structure, which comprises pay-per-use characteristics.

 In addition, operational elasticity and business continuity were also mentioned as the important market drivers by 52.5 percent and 40.0 percent of the respondents, respectively. These two factors are essential to ensure the mobility of the workforce, “zero downtime”, and disaster recovery capabilities.

Cloud Computing in Mexico: Market Restraints The most significant

restraint in the cloud computing market in Mexico is security (95%)To improve the security and overcome this market restraint, IT service providers are leveraging more robust infrastructures such as the private and hybrid cloud computing models. While public clouds suit mainly the small-and medium-sized businesses’ needs, enterprises have been demanding more secure, transparent, and private environments.

Cloud Computing in MexicoEnterprise Adoption Levels

50% of the companies interviewed had cloud computing environmentApplications is the IT process level with the highest penetration of the cloud computing concept (85%)Database solutions had the highest level of penetration of 82.4 percent.

Cloud Computing in MexicoDecision-making Process

In the Mexican enterprise segment, security is the most important criterion considered during the process of selecting a cloud computing solution provider (77.8%)

Price is another key factor, as 65% of the Mexican companies interviewed consider this variable as a vital one.

What should I do?

Evolving business models

Sustained business agility

Globalization

Security

Regulation

Emergent competitors

Environmental/Energy considerations

Other

24%

20%

16%

15%

11%

8%

5%

2%

What are Your Company’s Top Business Challenges?

Changing NeedsAccelerating Business Complexity and Demands

CONSUMERIZATION OF IT

DYNAMIC WORKFORCEDIVERSE & DISTRIBUTED WORK

INFRASTRUCTURE COST & COMPLEXITY

Cloud Options

Types of cloud services

software as a service infrastructure as a serviceplatform as a service

consume it migrate to itbuild on it

“SaaS” “PaaS” “IaaS”

Scenarios for cloud computing

Average Usage

Com

pu

te

Time

“Growing Fast“

Usage

Com

pu

te

Time

Average

Inactivity

Period

“On and Off “

Com

pu

te

Time

“Unpredictable Bursting“

Average Usage

Com

pu

te

Time

Average Usage

“Predictable Bursting“

Commercial Cloud Services

BUSINESS APPSCOLLABORATION STORAGE PLATFORMMANAGEMENT

9,000 business customers40M paid Online seatsMore than 500 government entities

Over 50% of the Fortune 50070% switching from Notes12,000 partners

PRODUCTIVITY COMMUNICATIONS

Move at your pace

Communications

CRM

Meetings

Email

Desktop management

Collaboration

Using the cloud

Compute

Storage

Communications

Scale “more traffic”

“backup”

“more power”

“place to trade data”

Windows Azure Platform

GENERAL PURPOSE PROGRAMMING LANGUAGES

Compute Storage Management Relational data

MarketplaceApp FabricCDN

PLATFORM AS A SERVICE

Management

(15 years)370M active users

(13 years)550M users/month

(12 years)1PB/month

(11 years)28B queries/month

(7 years)5B conf. minutes/year

(7 years)20M subscriptions

(2 years)12M users

Microsoft Cloud Services History

Consumer Cloud Services

Over 600 million unique usersOver 6 million songs in the

catalog

23 million subscribers14 billion ads per month

10 billion messages processed daily

500 million active Windows Live IDs

Over 3 billion WW queries each month

370 million active accounts

2 billion unique calls per year

Petabytes of data every month to millions of PCs

Consistent Experience Across Devices

Infrastructure Investment

North Central USA

South Central USA

Northern Europe

Western Europe

Eastern Asia

Southeast Asia

North West USA

Momentum

PartnersCustomer “StorSimple and Windows Azure provide the best of both worlds—the economies of the cloud with on-premises levels of performance and security.”– Guru Pangal, Co-Founder and President, StorSimple

“We absolutely have to have a global, stable player in the cloud market that is behind our solution. With Windows Azure and Microsoft data centers, we have that—and it’s absolutely critical to our success." – Scott Houston, Chief Executive Officer, InterGrid

Worldwide Momentum

Momentum in Mexico

Food for thought…

What are my organization’s business challenges?

What type of cloud services could I leverage?

What are my major concerns for adopting cloud computing?

How should I build a business case?

When should I move forward?

Who is the right cloud computing partner for my organization?

© 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.

joselg@microsoft.com

www.microsoft.com/mexico/cloud